6 
3 | § ¶I wonder…
-- Would they do the same?
As a U.S. Citizen, if I moved into Mexico, Guatemala, Dominican Republic, The Republic of Congo, Russia, Vietnam or China, or any other country for that matter... Would they grant me permanent residency? Would they grant me a worker permit just because I request it?
In my opinion, this is similar to what millions of unauthorized residents and/or undocumented workers are requesting in the U.S.A.
Today I am not going to say that an amnesty would be right or wrong, but I am questioning if it is something that the rest of the world truly supports.
As an American Citizen, should I be allowed to live and work in any country I want to? I do not think that most of the other countries government’s would automatically grant me permanent residency and a permit to work. Would they?
14 6 | § ¶Run Your Life Like a Business
-- RYLLAB
At school we are taught to be an employee: get some skills, find a stable company, and work for whatever an employer wants to pay you. You are even taught that a 2% raise is bad, a 3-4% raise is normal and if you get something in the 5-7% you should be happy to be considered top talent within a company. You are supposed to do so for 30 years and if you have saved enough money on your retirement accounts you are expected to move to Florida, Arizona, or North Carolina into some “Active Adult” community. If you didn’t saved a dime for retirement you are expected to be on the housing site queue for a couple of years before society helps you make ends meet with your Social Security check.
This is one of the times in life where the phrase “Think Out of The Box” may come handy! Run your life is a business! The fact that you may or may not be employed at this particular point in time is just a small detail.
When you run a business you concentrate on increasing your earnings, more so than you also increase revenue.Read More
5 12 | § ¶Let Others Pay For Your Gas
-- (consumers)
Many people are concerned about Oil company profits. My advice: If someone is profiting from something, be that someone! Don’t play the victim!
See, Oil companies are very generous with their owners – it is the consumers the people they do not want to be generous with. Which company in their sane mind would be generous, unless being generous would allow them to extract even more money from consumers?
Every month I spend less than $100 in gas, even at almost $3 a gallon, or $1200 a year. I have an efficient car (28mpg), and I recognize that many people decided to buy a large 15 mph SUV when the gas prices where under $1 a gallon. If suddenly someone gave us $1200 a year for gas, I would be able to cover all of my consumption and other people would be able to cover their increased gas expenses as a result of the increase in gas prices.
Dividends can give you $1,200 a year! The same gas companies that take money away from you at the pump can give it back to you – if you are nice to them and own them! Look at the table below, although owning ExxonMobil (XOM) may require $60,000 to get $1,200 a year in dividends, owning the #2 gas company in the USA: Chevron (CVX) would give you the same $1,200 a year with an investment of only $40,000 – that is less than what some of the gas guzzling luxury SUV costs!
| Company | Symbol | Dividend Yield | Investment for $1200/year |
| Chevron | CVX | 3.00% | $40,000 |
| ExxonMobil | XOM | 2.00% | $60,000 |
| Sunoco | SUN | 1.20% | $100,000 |
I hope this new perspective gives you a few pointers about how to stop being a victim!
(Jointly published in Money and Investing and Stocks For Me).
5 1 | § ¶Torres Del Paine
-- Patagonia's Best
Some excerpts from my Travel Log of my Trip to Chilean Patagonia.
2 5 | § ¶Argentina, Chile and Uruguay
-- A collection of travel log entries
Last November 2005 we decided to go real south to the Patagonia region in Chile and Argentina. We also stopped by Uruguay for a couple of days. I have been posting some excerpts from my travel logue, which include the following postings:
- Buenos Aires - Not ready yet
- Buenos Aires - Coffee and Transportation
- Torres Del Paine - Not ready yet
- El Calafate and Perito Moreno Glacier
- Santiago - Not ready yet
- Valparaiso - Not ready yet
- Uruguay
9 8 | § ¶The Government Is Not Always Safe
-- At Least Not In Puerto Rico
Many people think that a government job is the safest job on earth. People think that after a few years it is almost impossible to loose a job or salary there. For the most part it is true, but there are greater risks to it.
The US economy has enjoyed growth and prosperity. Prosperity means ever increasing tax revenue at all government levels: federal, state, and local (city / town). Ever increasing tax revenue means that all types of governments can enjoy low interest rate loans and bond issues.
Puerto Rico (my home territory) is going through some difficult times right now. Some of the bonds issued by the government of Puerto Rico are in the “non-investment grade” or about to fall into it if the government defaults on its financial obligations.
Read More 4 9 | § ¶They Fall For It
-- So Easily
It is surprising how easy they fall for it: a new credit card, that is.
In Fight Club (the motion picture) the imaginary character says that the slightly low cabin pressure of commercial airliners affects passenger’s ability to think. Real or not, passengers don’t seem to think that much.
The flight attendant said over the Public Announcement system: “Bank of America and US Airways have teamed up to offer you the wonderful opportunity to earn 25,000 miles …”. After the Disney-happy sounding announcement, flight attendants distributed the Credit Card application forms to interested parties.
Initially I thought it was another bad taste method that the airline industry is using to save them from financial ruin. But after watching the people in 6a, 6b, 6c, as well as several others in the rows behind me, hurriedly and diligently fill out their credit applications as if they could not wait a minute longer I changed my mind. This is a brilliant idea by the Bank of America (BAC) and US Airways partnership! I am glad I own Bank of America (BAC) shares – today, they even climbed!
Read More 7 5 | § ¶24% Pay Increase
-- Finally
That is what my compensation package (Base + Commission Goal) increased on Monday. As a veteran in my company of 9 years I have to pay special attention to the salaries given to people with my skill set: otherwise I run the risk of falling behind on salaries.
You see, companies like to give the minimum salary increase necessary to avoid you leaving. Usually that means the dreaded 4% increase. I had suffered my share of those, but thanks to some smart self-marketing of the hard work I offer, I have been able to get a few increases over the year that bring me back in line with the market.
This year, however, there is a shortage for skilled technology workers of my experience. I took advantage of it to find out about fast growing companies where I could continue my career. I did have three offers from companies where I would have enjoyed working. However, my current employer decided to make a bold statement:
They decided to increase my compensation package by 24%.
This ought to keep me focused on doing a good work and the increased compensation will help me keep funding my early retirement accounts.
I am happy! I can now concentrate on working hard.
I discuss some of the job hunting and salary negotiation tips on a side blog: Find New Job.
12 7 | § ¶Blog for Debt
-- A Commitment
This is a Personal Finance website, and as such it should help people improve on their financial situation. One of the things that stop most American families from moving ahead in life is the burden of debt. By the same token, one of the things financial planners advice the most is that you should pay off your debt first (at least the consumer debt – credit card and personal loans). I want to present an idea that I think many of us should follow (many of us may be following it already).
I am in debt right now!
I owe $300 in consumer debt. It is what is left from a camera I bought last year on an interest free offer. I pay $100 every month – which takes a big dent in my $900 monthly “discretionary” spending budget: gas, clothing, travel, car and house repairs and maintenance, and eating out, for example. A more than 10% dent in my “living standard” is how I feel it.
Blog Revenue Goes Into Debt Payments
Every cent produced by the blog (above the hosting fees and domain registration) goes into debt payments. This month I have done two advertisement deals that have produced $180 for text links. I also have the Google Ad sense that has finally produced a bit more than the hosting fees. Every single cent produced goes into the Best Buy Credit Card until paid in full!! I want to be debt free again.
What To Do After Consumer Debt?
To keep the spirit of promoting debt freedom, once I finish with my small credit card debt I will use every single cent of blog earnings to pay down my mortgage: my only other debt. That is right folks, even when I do get a discount from Uncle Sam on my mortgage, I will use the Blog revenue to set the example of how found money can be used to eliminate debt. Every single cent counts!
Do The Same!
I encourage you to do the same. I will link here the people who do the same with their own debt, and I promise I will go to your site and take a look at its content and adds!.
8 5 | § ¶Offer and Demand Law Examples
-- It is a universal law
Yesterday I had the opportunity to find two examples of the law of Offer and Demand.
Census: Americans leave big cities - USA TODAY
During years 2000 to 2004 Boston lost 41,851 residents, New York lost 211,014.
Apparently the price of Real Estate and the lack of space in cities motivate people to move into equally provided residential areas. With equally provided I means that they have access to similar products and services – at least the ones of value for the average family.
Drivers curb use as gas goes up - USA TODAY
"Gas use last month was 0.6% less than a year ago, the American Petroleum Institute reported, because "high fuel prices have led to decreased demand for gasoline and other refined oil products."
Rise in gasoline prices has an effect to the economy: inflation. That is, unless the consumers decide to consume less and then the law of Offer and Demand works towards them instead of against them. Apparently there is less consumption today than a year ago. If we continue this trend we may cause an impact on oil and gas prices.
However, I am not very hopeful. Americans like our freedom to roam the big nation and the big world, and that usually requires Gas. Unless we learn new ways of enjoying our freedom without using too much gas, we will continue to see the prices going up – the price of the freedom to roam.
And In Other News
The Law of Offer and Demand is causing my salary to go up. Still don’t know how much up, but around 15%. See, there is a scarcity for people who can do technical work and customer facing work equally successfully. And salaries for those people are starting to climb like it is 1999.
5 7 | § ¶The Problem with Metals
-- They Cause Gold Rushes
Most precious metals can be used for jewelry, scientific, and electronic functions. However, unless you plan to do any of those, why do people buy gold or silver?
As with any investment, I can only imagine it is because people expect that the price and any potential revenue stream it can produce will be greater than other investments with similar risk.The “equation” has three variables:
- Price Appreciation (or Depreciation)
- Revenue Stream (Rent, Dividends, Interest, etc.)
- Risk
Price Appreciation is clearly the easiest one to understand, it has doubled up in the last few years. It can also depreciate, as it did during the .com market.
Metals don’t produce any Revenue Stream.
Read More 2 6 | § ¶Killed By e-Mail?
-- Don’t Load It
Just like a firearm, an e-mail can’t hurt anyone unless you hit the trigger (Send Button). However, we have all heard stories of people that accidentally trigger it and hurt someone. A half made e-mail can contain a poorly elaborated idea that may do more harm than good. It may also contain typographical errors, half baked ideas, and even potentially offensive language.
Writing a traditional letter requires of several steps:
- Write the leter (or draft).
- Proofread.
- Re-Write or edit (if needed).
- Address the envelope.
- Put the letter in the envelope.
- Mail.
6 5 | § ¶Here We Go Again
-- A New Net Boom?
It's time to say hello to the new Net boom.Is it? Many investors who concentrated all of their investments in wild .com companies suffered the effects of what many people called the .com bubble burst. Yet, there are powerful statements that indicate we may be in a New Net Boom:
--CnnFn
The Internet, as you well know, didn't vanish along with all the over-hyped dot-coms of the late 90s. Today the Net is fulfilling many of the visions its wild-eyed prophets were preaching about just a few years ago. All the impossibly cool applications that seemed so elusive in the late 1990s -- Internet phone calls, (legal) downloadable music and movies, high-speed Web access on cellphones, online bill paying -- are a taken-for-granted part of daily life.One thing we have to remember is that when the media catches up with the news of a boom, you are slightly late to play the “buy low, sell high” centuries old game. Your only option is to “buy high, and sell even higher”. However, as in any market there are always opportunities for growing companies that may be of interest to you.
--FORTUNE
I think small caps are still a good investment and that is why a month ago (3/8/06) I recommended my aunt to buy the Vanguard Small Cap Viper (VB), and it has made her 6.8% so far (impressive for one month). However, not all small caps are made equal, and very often, filtering the bad ones is extremely difficult – especially when they do not have any earnings.
Be Strategic
Read More 10 2 | § ¶Frugally Drinking
-- Because Frugal People Drink Too
(Puny Money is hosting this week's Festival of Frugality this that inspired this article)
I have been amazed at such discussion from other financial bloggers. To tell the truth, it is a valid concern, in my opinion. A perfectly balanced budget can go overboard with a single night out – big time! Yet, adult frugaleers may enjoy a night out in town.
”One thing that drives me nuts is that there never seem to be any prices listed for alcoholic beverages-- are we supposed to just order and not care how much we're paying? -- Money and ValuesYes, it is a Social Thing
Society expects people to drink. It is kind of a massive peer pressure. For a while I told people I never drank alcohol to avoid the drinking pressure. I still avoid alcohol in many situations, especially if I am driving or have to work afterwards. As a policy I do not order wine at high mark-up restaurants.
The fact that you want to drink at a bar or restaurant doesn’t mean you have to drink what or like everyone else. You can always choose a soda – I think we are all grown up and we will not tease each other for not drinking an alcoholic drink, and if people tease we are all mature to take it as a joke. Even if you feel inclined to relaxing a bit with some booze, it doesn’t have to be the same kind. I purposely ask for slow drinking beverages that will not go bad if they warm up a bit: wine, Oporto, or some mixed drinks. Avoid light beers or shots, the former can be drank almost like water and the later usually go in one or to gulps. You can enjoy a night out with friends without having to drink too much.
Read More 3 9 | § ¶No State Left Behind?
-- Qualified Teacher Coverage
Education is key for the economy to expand. Long gone are the days when unskilled workers could earn a good salary.
The latest ratings of the state responsibilities portion of the No Child Left behind program are detailed in a recent CNN article. There is some improvement, although there is more work to be done. States who don’t comply by the end of next year to 100% qualification for teachers of their core courses or show good faith efforts in improving the percentage risk loosing federal school funding – as a pressure to have them get their act together. The Good News:
… those [qualified] teachers have a bachelor's degree, a state license and proven ecompetency in every subject they teach.The Bad News
Nationwide, 91 percent of core classes were taught by highly qualified teachers in the 2004-05 school year, up from 86 percent the year before…
Thirty-three states claim 90 percent to 99
Most of the other states put their numbers a tier below -- 70 percent to 89 percent …The Facts:
One state, Alaska, is significantly behind all the rest. Only 34 percent…
States must prove they have:
- Set a fair definition of "highly qualified." Although the federal law sets the parameters, states have huge leeway when it comes to qualifying their veteran teachers.
- Provided parents with a clear picture of how many classes are taught by qualified teachers. This is supposed to happen in state, district and school report cards.
- Given complete and accurate data about their teacher corps to the Education Department, including the disparities between poor and wealthier schools.
- Ensured that poor and minority children do not have a higher percentage of inexperienced or unqualified teachers than any other youngsters.
11 5 | § ¶House: Asset or Liability?
--
(Canadian Capitalist is hosting this week’s Festival of Frugality. He inspired this article with one of his).
Many people, including Mr. Kiyosaki of Rich Dad, Poor Dad, are starting to see a house as a liability. I do not see a house as a liability; I see it as an asset – more on it below. What is really a liability is the mortgage loan you take on it.
True, you can’t realize any gains out of a house unless you sell it – and then, you must be able to downsize or move to a place where houses are less expensive to recoup the money. But in 30 years you are rent free!! Since you have to live somewhere, lets assume that the alternative to owning a home is renting one (since most people would not like to live at their folk’s place). When you get a fixed rate, and avoid taking second mortgages or home equity lines of credit, you will be rent free! Even if you aren’t, due to expected rent increases, you will end up paying less in mortgage than in rent over the course of your 30 years. Saved rent can be equaled to income – simply deposit the saved rent into your investment or savings account. Be your own landlord! And assets put money in your accounts, liabilities take money out of them.
Read More 5 6 | § ¶Closing an Account Is Difficult
-- They know it, now you know it.
Banks and financial companies know that once a client opens an account, many months may go by before the client decides to close it. Even more months may go by before the client actually executes on his/her intention of closing the account.
It is not that closing a bank account is a difficult task. Often a phone call will suffice. It is just that human nature makes us procrastinate doing things, for as long as it does not result in immediate major consequences.
Armed with that knowledge, banks use this expected behavior to their favor. They do entice you to open an account no matter how small it may be. Sometimes they incur in heavy customer acquisition costs. They hope you never close the account! They hope it will be more “convenient” – not necessarily more productive – to you to continue using their services rather than take your business elsewhere, or even nowhere.
The government also knows about this human intricacy. Sometimes it is for your own good: like an Individual Retirement Account: once you open it and fund it you are more likely to keep it, and even add to it. They even go into new customer acquisition costs by giving credits for saving (Savers Credit) to low income earners: giving money to people to save money; that is as crazy as those .com era bank offers where you could get $100 for opening an account with $10.
Subscriptions work in the same way. Once they are set up customers are unlikely to cancel them. Apparently, for some customers (me included), it is easier to keep sending the check (or allowing them the automatic charge) than to cancel it, even if the service is not even being used.
Read More 5 8 | § ¶Gasoline Prices, What is The Fuss? (irony)
-- Oooohhh I see
Every time I fill up my tiny 11 gallon gas tank I have to spend roughly $30. That means I spend less $90 a month. See, I drive less than 20 miles a day on my car, and that includes commute, errands, etc.
Sure, my wife and I do a long trip maybe once a weekend tops. With long I mean a 200 mile trip, evenly distributed among the two cars over several weekends. However, it still makes us spend less than $90 on gas each.
$90 to run a car is not too much, considering many people pay that amount on insurance and three or more times that amount on car payments. Considering the government recognizes that running a car costs 44.5 cents per mile, the 11 cents a mile I am paying (2.70 gal Price / 24 miles per gallon) is a mere fraction of the cost of driving. (Read about the true cost of car ownership).
Yet, people are making a big fuss about the gas prices!
It wasn’t until a friend of mine told me that they spend $50 every time they pump their 16mpg Ford Explorer SUV, and that they pump it four to six times a month ($200 to $300) that it clicked into my mind that people are driving fuel inefficient vehicles and driving them a lot more than I do!
Resources: Fuel Economy
10 3 | § ¶What The 4% Salary Increase Means
-- Less than You Think
(Jointly and simultaneously posted on Money and Investing and Find New Job blogs.)
During 2005 the Consumer Price Index (CPI), a publicly accepted inflation indicator, increased by 3.4%. When the performance review time comes, if your salary doesn’t increases by more than inflation it means that the perceived value of the experience acquired and skills learned during the past year did not increased.
This could be due to a variety of reasons, including:
- You didn’t acquired new skills, nor learned how to do your job better.
- You are (or where) overpaid. Or the company doesn’t have resources to pay a fair salary.
- Your skills depreciated – Every day that you don’t improve your skills, somebody else does. People are constantly improving the way they prepare themselves for the job market, and there may be way too many people with your same skills (offer and demand) or people with skills that surpass yours.
- Your management didn’t noticed any improvement in your skills or experience. You may have been too concentrated on doing your job to market your achievements.
- Your employer bets you will not leave your job. I think this is the most common one.
7 5 | § ¶Freedom for Books
-- Set Them Free
Books at a library can be expensive, especially at a foreign bookstore on a tourist area, and even more expensive if you look for books written in a language that is different from the one spoken on the country. We have been so spoiled in the U.S. with $5.99 paperbacks that we forget how much information can cost.
It is best to bring your own books on a vacation or business trip. However, avid readers may find this can weight us down considerably.
When I travel I carry books I do not mind leaving behind. As a matter of fact, I do expect to leave them behind. Few books need to be read twice. Some things I do with the books I carry:
Read More 1 6 | § ¶URUGUAY
-- Excerpts from November 2005 Trip
Excerpts from my November 2005 trip to South America. Photos located at the usual place (ask for it in an e-mail or comment if you don’t know where they are).
Read More 3 8 | § ¶The New Camera
-- The New Debt – The Only Debt
Just before my November vacation into Argentina, Chile, and the Patagonia region shared by the two countries, I made myself a proud owner of a Nikon D50 Digital SLR Camera
Picture quality is superb. I feel happy I took it on my trip. If you want to see the photos, just send me an e-mail and I will send you the link to the photo site. The camera is fast using flash or not, it helps me with exposure bracketing, and gives me the manual controls for special effects. 6 Mega pixels is not an amazing amount, but when used with the Nikkor lenses I had from the other camera (the made in Japan ones), the picture quality is unsurpassed.
The problem with interest free cards/plans
Read More 9 5 | § ¶Clutter Reduction
-- What to do with it?
(Five Cent Nickel is hosting the Carnival of Frugality this week. He also inspired this article with some clutter reduction on his own.) With clutter I mean things that will not get used but are still occupying space on your dwelling. Clutter causes a lot of headaches for you, and it costs time and money to keep your clutter!
- If you move, you have to haul the stuff with you – breaking your back for a longer amount of time or paying more to the movers.
- If you are going to sell your home, you should move it away into storage, to make the house look more spacious.
- They don’t give you space! You start to get the feeling that you need more space prompting you to spend on a larger dwelling or to rent storage space.
However, in our consumerist society, it is almost certain that you will accumulate clutter. Once you can be realistic about it, you can start taking care of it. I have placed bins in my library, closet, and basement. Books, clothes, and stuff that will not get used, into the bin it goes!
The question that comes up to our mind is what to do with the clutter? Throwing it away into the trash would not only be a waste of hard earned resources, but a way of contaminating the environment even more! Economically sustainable ways have to be used. These may include:
Read More 7 10 | § ¶Wal-Mart Health?
-- Save on every day ailments
I love Wal-Mart. When I need undershirts, blank CDs, motor oil, or liquid detergent I go there. I do not go there for a suit, a fast graphics card, tires and wheels, or a washing machine, however. I just know that for simple, run of the mill commodities they have the same products as everyone else, at the exact same quality that everyone else, for a much lower price.
They are doing the same thing for healthcare now. (Read the article in cnnFN.com.) They are tackling run of the mill ailments like “colds, flu, strep throat and pink eye” by using nurse practitioners licensed to prescribe drugs. The pharmacy is just conveniently located next door (within the big store door) and offers the same commodities that big pharmacies offer at the same low prices.
Would I go to one of those low cost clinics? Sure I would!
Read More