No More Clunkers Being Taken

I hesitate to get political in the Internet format, but couldn't resist upon reading the news today.

If you live in the United States and you've watched TV for a 10 minute segment or even possibly read the news, I'm sure you've heard of the "Cash for Clunkers" program that our US government came out with to encourage the sales of new vehicles. This program has been suspended as of today because of the massive demand for the rebates that come with the program. The program offered rebate coupons of $3500 and $4500 for vehicles that met specific criteria (Mileage specifications, etc.).

The initiative only has a $1 billion limit per the congressional officials that put the delay on the rebates (link to a great article for details here: http://news.yahoo.com/s/ap/20090731/ap_on_go_ot/us_cash_for_clunkers;_ylt=AvzH44l9JyGCyQUCllYMIsOs0NUE;_ylu=X3oDMTM2ZzE2dW4zBGFzc2V0A2FwLzIwMDkwNzMxL3VzX2Nhc2hfZm9yX2NsdW5rZXJzBGNwb3MDMgRwb3MDOARwdANzZWN0aW9uc19jb2tlBHNlYwN5bl90b3Bfc3RvcnkEc2xrA2Fwc291cmNlc2dvdg--). There was also an expectation of 250,000 vehicles sales that were to be accounted for with the $1 billion of earmarked funds for the "Cash for Clunkers" program. It's thought that of the 2000 dealers that are involved with the program, they've possibly over sold the 250,000 limit that the government expected.

I have mixed feelings about this whole program and how much it's really going to help our economy and the auto industry in general. We're getting rid of vehicles on the road that could conceivably be fixed and or maintained for much more use and mileage. Instead, we are "recycling" these vehicles (read, crushing and disposing of properly, not efficiently) to be reused when and where convenient. An article that illustrates that complex deficiencies can be found here: http://news.yahoo.com/s/ap/20090731/ap_on_go_ot/us_cash_for_clunkers;_ylt=AvzH44l9JyGCyQUCllYMIsOs0NUE;_ylu=X3oDMTM2ZzE2dW4zBGFzc2V0A2FwLzIwMDkwNzMxL3VzX2Nhc2hfZm9yX2NsdW5rZXJzBGNwb3MDMgRwb3MDOARwdANzZWN0aW9uc19jb2tlBHNlYwN5bl90b3Bfc3RvcnkEc2xrA2Fwc291cmNlc2dvdg--. Apparently our government didn't account for the fact that many companies can strip cars of transmission and motor parts for use in parts sales, etc. This somehow got neglected, even in the midst of the "green" initiatives that drove this program.

Now, don't get me wrong. I think our government is headed in the right direction with "green" intentions, however, when we get politicians involved in the auto industry, and the many intricate facets of it, we're going to get convoluted results. I just hope that we continue to move in positive directions in the future, stressed out economy or not.

Give a Little Bit

What is it about giving that makes us so happy as humans? I find that every time I give something, I get so much in return emotionally. I'm sure everyone can relate to this sentiment. For example, lately we've had a surplus of produce from the garden and I'm finding great joy in taking things to work and surprising people with something that they enjoy. Cucumbers, a tomato or two, etc. It's fun and a cheap way to give gifts. Let me just preface this by saying that I live with someone that loves to gift give and surprise all of her friends/companion with gifts to enrich their lives. Evelyn is a very giving person and an inspiration in that department for me. She gets it honestly as her parents are the same way as my family is too for that matter.

I was also reading today about experiences and how spending your money on experiences seems to have a much longer effect on you than the money spent on material possessions. Do you find that your life is more enriched by experience as opposed to things? I happen to truly find joy and happiness in traveling, which falls in to the category of experience, which I feel leaves a lasting impression and ultimately changes us in who we are for the long haul. We react differently to people, come back with more tolerance, and maybe are a bit more outgoing than we were previous to a traveling experience. I feel that these life lessons are good little steps in simplifying my life and making a more meaningful existence. The article that inspired these thoughts can be found here and I encourage everyone to read it if you can find the time: http://www.getrichslowly.org/blog/2009/07/28/do-experiences-lead-to-greater-happiness-than-material-purchases/

On a side note, I'm finding that I enjoy my job a lot more when I work with first time home-buyers. They seem to really grasp the innate joy of homeownership and the freedom that comes with it. That almost childlike energy is contagious and I'm really growing to love these experiences.

I hope everyone has a great mid-week!

Having Hope for Anything

Without faith, nothing is possible. With it, nothing is impossible.
-Mary McLeod Bethune

I spent the weekend in Chicago and just returned this evening and have been reflecting on it. It was naturally a great time and we got to reconnect with friends that we haven't seen for a while. We also went to a Cubs game and enjoyed the game from a rooftop that is across the street from the stadium. A great venue (for a reasonable cost) with unlimited food and drink, no bathroom lines, and great company.

Picture from: http://chicago-cubs-tickets.com/images/clip_image001.jpg

Let me just say, I love Wrigley Field and the Cubs and my reason for writing about this is because of mine and my friends faith in the Cubs. Every year we hope it's going to be "that season" and we'll get another playoff opportunity, and maybe even a World Series win if we really do well. What is it that makes true, hard core fans keep believing and keep supporting teams that have losing streaks or have adverse outcomes in their seasons? For me, it's the atmosphere of Wrigleyville and especially the field with ivy growing on the walls, the spirit of the years of baseball there, the vibe of Chicago, the people, and of course, the Cubs players and announcers. Oh, then there's the epitome of cased meat; the great Chicago hot dog. It's fantastic and is not to be overlooked when in Chicago. If you're not familiar with Chicago "dogs," check this site out (http://www.hotdogchicagostyle.com/chicagodog.php) for the ingredients that go on it.

Driving out of Chicago this morning, I couldn't help but enjoy and envy the Chicago residents and their great Lake Michigan drive on "Lake Shore Drive." The running/biking paths that go along the beach, with the numerous volleyball courts, outdoor restaurants, sailboats, and other spectacles that make up the Lake Michigan shoreline in Chicago. I love to run and cycle and I couldn't help but wish I could have that ride/run every day.

Hope everyone had a great weekend! Have a great Monday.

Secrets About Paying Your House Off

Hello all!

So, if you know me, you know I'm a finance guy and with a career in real estate finance. I am constantly calculating ways to get my mortgages paid off (rental properties and owner occupied house all the same). I've found some easy ways that you can make this happen a lot sooner. Some may argue that having a mortgage is good for tax reasons because of the mortgage interest that you can write off, etc. but what's better than truly being free of debt?

So, here's the easiest and laziest way that you can pay off your mortgage sooner without changing too much about the way you're doing it now. My first piece of advice is to round off the check to the highest tenth of hundredth dollar. For example, if your payment is $893, make it $890 or even $900. This is an obvious way that you can apply extra to your payment every month to pay the loan down without strapping the budget. My second piece of advice is very, very easy as well. Set up bi-monthly automatic deductions for your payment. Your bank with automatically withdraw your normal payment at 2 intervals in the month, both of your choosing if you want to set the exact dates. What this effectively does is that it cuts the compounding interest that occurs throughout the month on your mortgage and you end up paying far less in interest over the life of the loan.

Here's a numbers-centric example of this in action. Take a mortgage amount of $132,000. Let's assume we have a 30 year mortgage at 6.5%. If we make these bi-monthly payments every month, we'll cut 5.67 years off our mortgage. It also saves approximately $36,953 in interest over the life of the mortgage. The normal payment is made, you just happen to cut it in half at two intervals in the month. So, if you normally get paid on the 15th and the 30th (for sake of argument), have the automatic withdrawals made on these dates and you'll find an easy and no hassle way to pay off your mortgage in 25 years (as opposed to 30) and save you over $36,000 over the life. That's a lot of savings!

If you wish to plug in your own scenario in to a calculator to see how much this will save you, see here: http://www.hsh.com/calc-amort.html. Just put your loan amount in, if you pay extra each month, add that as well, put the years left in on your loan, and wa la... you'll find out when you'll pay off the loan.

Nearly every loan company or bank has the option to do bi-monthly automatic payments. Just give them a call and they'll let you know what the procedure is. If you have questions about this, shoot me an email as well. It's what I do.

Have a fantastic Thursday!

Thrifty Friends

Hey All,
It was a beautiful Tuesday here today, full of sun and 80 degree temps. I was thinking today about how our groups of friends are really good at coordinating activities that are not expensive and are quite fun. For instance, over the weekend we participated in a group outdoor fun day which involved adult kickball, relay races, corn hole contests, among other activities. I felt like a kid again and it was good moving around and being active. I love that.

We also went to a birthday party for another friend and really we all like to find reasons to throw a party and get together. My favorite part of all the get togethers is the food that seems to show up from each person or couple. Man there are some wonderful dishes that I've been a part in destroying.

Both of these groups of activities don't have to cost a lot of money and can be great social events that bring friends together to create closer friendships. That's really the awesome part. I've made some life lasting friendships with people in the last few weeks and years that I wouldn't trade for anything.

This topic has given me great inspiration for growing older as well. It seems that as I approach the milestone of 30 years of age, I had worried about becoming less active. That's seems to not be the case at all, and quite the opposite actually. My weekends are booked up until September with fun stuff going on. I hope to keep at this pace for a long time. Cheers.

Have a great Wednesday everyone and keep on keepin' on!

Optimism on a Grand Scale

Even if I knew that tomorrow the world would go to pieces,
I would still plant my apple tree.
Martin Luther

I hope that everyone had a great weekend. I know I did. Had a great birthday party with friends and also had a great outdoor field day in which our friends competed in different outdoor events, including: kickball, soccer kicking courses, relay races, etc. The fun was really in hanging out with friends that are fun and make life happier and more uplifting.

On that note, I've found a great TV show that really inspires me. I don't like watching TV unless I can get something out of it, and this show is awesome. The Adventures of the Incurable Optimist (http://abc.go.com/specials/michaeljfox/index) is a wonderful show in which Michael J. Fox travels around the country and the world to exploit optimistic groups and individual people. Just hearing Michael J. Fox's outlook in inspiring to say the least given that he has Parkinson's Disease (more reading available here if you're not familiar with Parkinson's: http://www.ninds.nih.gov/disorders/parkinsons_disease/parkinsons_disease.htm). He talks about people that have a natural inclination toward being optimistic and different aspects of a society that create the optimism. I found it very inspiring and hope you will too. I found it on the cable station TLC (http://tlc.discovery.com/) and you can check the site for the channel schedule to watch it in your area if interested.

I always find inspiration in people that seem to overcome struggle by being unwaveringly positive. It's so easy to become jaded in this world by challenges and then some comes along that really puts you to shame in regard to the level of challenge that you face. Life isn't a competition and it really helps to have perspective when seeing others' challenges and how your diminish in size and scope.

Have a great week everyone! I hope you make it a great one.

Home Grown Produce

Oh wonderful, beautiful Saturday morning. I love the peace and quiet of my Saturday mornings. I find that my creative mind is in full gear on Saturday mornings when I am relaxed and unworried/unhurried. So, this particular morning I was strolling around the yard weeding around plants, checking for ripe vegetables, and checking progress on others. I harvested two large tomatoes, two cucumbers, some husky cherry tomatoes, and some basil. Nice day really for the home garden.

The greatest gift of the garden is the restoration of the five senses. ~Hanna Rion

When doing the math online for how much money that just saved us I came up with about a little over a $5 savings. The basil can drastically differ in price depending on where you go. Tomatoes are about $.80 per pound for the organic, yellow variety that we grow. The cucumbers are on sale for $1 a piece right now. Our cucumbers are the pickle variety and a massive variety that is bigger than anything I've ever seen. It's probably 2-3 pounds on its own. My point in all of this is that it's pretty easy to grow your own food and save money without a lot of effort. It's great food too. Nothing tastes better than a home grown vegetable that you grew with your own hands.

So, with all that in mind I've been looking up some good pico de gallo recipes because nothing on earth is better than pico de gallo and salsa in my mind, and we have a ton of tomatoes that need to get used. We also have some jalepenos that will be ripe soon, as well as onions and cilantro (although the cilantro is fading fast as it flowered when we were away for the weekend). In the spirit of pico de gallo, here's a recipe that I found online that I plan to use:

Ingredients
* 6 medium Tomatoes diced
* 1 medium Onion diced
* 1/4 cup fresh Cilantro chopped.
* 2 to 4 Fresh serrano or jalapeño seeded and minced
* garlic powder just a pinch * Salt to taste

Put all ingredients in a bowl add 1/2 cup of cold water, mix well. Let set a few minutes. You will find a lot of recipes in this site, where we can use the pico de gallo for cooking and a garnish.

I got this recipe from: http://www.mex-recipes.com/pico-de-gallo-recipes.htm

The simplicity of pico de gallo and Mexican food in general is what makes me to drawn to the cooking. I love that you can use tomatoes, onions, cilantro, and peppers in so many different ways. You just add tortillas and meat and you have tacos, or many other Mexican dishes in different variations of the same ingredients.

I hope you all can enjoy a garden or at least some tomatoes this summer that someone grew with their own hands. Have a great Saturday!