December, 2008:

Dow Rises 360 Points

Dow 8,924.14 +359.61 +4.20%
Nasdaq 1,589.89 +81.55 +5.41%

S&P 500 913.18 +44.61 +5.14%

Fed cuts key interest rate to near zero

Carnival of Personal Finance #183

Sharon Harvey Rosenberg, the Frugal Duchess, is hosting the 183rd edition of the Carnival of Personal Finance with a holiday sales theme. Here are her Editor’s Picks for the week:


The Twelve Frugal Days of Christmas

10 Holiday Budget Busters
Be Careful Which Gift Cards You Buy!
26 (relatively painless) ways to save money this holiday season
Give gifts that deliver good value
Beware of Hidden Holiday Costs
The Diary of a Mad Black Fridayee
5 Gifts That Will Bring Your Family Together This Christmas

Weekend Links Roundup

How to Construct Your Financial Network Map
This is pretty interesting article from Blueprint for Financial Prosperity. The financial network map allows you to see how your financial accounts are inter-connected to one another. For example, a savings account may be linked to a checking account which may be linked to a credit card account. I probably should construct a financial network map. It’ll let me see how which accounts are impacted when I switch my checking or savings account.

Simple Steps for a Cash Only Christmas
Finance and Fat talks about how to avoid using credit cards to buy gifts for Christmas. It’s back to the financial basics – buy with CASH.

Bailouts hurt our standard of living
Mighty Bargain Hunter explains that a bailout for the auto industry “reduces everyone’s standard of living.” I certainly don’t want my standing of living reduced. It’s not even that high to start with.

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How to Figure Out Your Net Worth
Prime Time Money shows how to accurately calculate our net worth, by taking everything we own, and then subtracting all our debts and liabilities. By everything we own, he means that we should include the everything in financial institutions and items at home, like of jewelry, furniture, art pieces, etc. The problem is that it’s hard to accurately calculate the worth of jewelry or furniture and art pieces. Also, i would like to point out that furniture are depreciating assets and are very difficult to sell, almost negligible in my view. Art pieces, on the other hand, can really appreciate in price, however unless you are active in the art market, it would be difficult to know how much they are worth. Bottom line is, it would be great to figure out our true net worth, but it may be more difficult than it’s worth.

Watch TV, Go Into Debt
I had the other side of the argument in mind. Couch potatoes would save more money because they would stay at home and watch tv all the time, thus avoid spending money that he/she would otherwise do when hanging out.

Why Investing in Stocks This Year Was Not a Financial Mistake
Stock investors learn more when they lose money or in a bear market. Imagine you enter the market during a bull year, and your portfolio goes up 5% every day. You may be making a lot of money, but what would you have learned?

Five Dividend Stocks To Watch
Dividends4Life brings 5 dividend stocks to our attention. PGN looks interesting to me. With a current yield of 6.3% and a beta of 0.43, I may add this to my protfolio. I would also like to point out that Pfizer Inc. (PFE) is currently paying 7.6% dividends and is currently in my portfolio.

Gambling Is A Bad Investment
I think the lottery is arguably the best attraction out there for gambling yet it is also has the worst probability to win. The odds of you winning is 1:millions. Yet, everyone wants to buy the lotto. Why? Because the prize is huge and highly publicized. That’s the attractive part that everyone thinks about. And the cost is low. It typically only costs $1 per ticket, so most people don’t mind buying tickets, especially when they think they can win millions. Take the $1 per ticket and multiple that by millions of tickets. It’s part of the business model to make big bucks from lots of people buying a $1 ticket.

Thrive is right. The odds of winning a lottery are stacked against the gambler. I hate to say this, but usually poor people buy lottery tickets. If you work out the math, you would know that the chances of winning a lottery is super slim.

I buy lottery tickets as gifts for friends. I know they would not win, but I know the lottery tickets make them happy, because the lottery tickets give them a moment of excitement and a chance to dream big. And if they do win, hey, I’m happy too, it’s jackpot!!

My Trip to The Philadelphia Municipal Court And Results of The Hearing

I was scheduled for a court hearing on December 12 at 8:45 AM in Philadelphia, as part of the eviction process to get my tenants out of the house. I had initially asked my real estate agent to testify for me in court, however he called two days before the hearing and said that he could not make it to the hearing.

Given the importance of the hearing, my attorney advised me to attend the hearing in case I would need to testify against my tenants. Since the hearing was at 8:45 AM, I booked the earliest bus trip from New York to Philadelphia at 5:35 AM on Greyhound’s website.

On December 12, I woke up at 4:00 AM to prepare for my trip. I knew the day ahead of would be full of obstacles and I was challenged from the moment I stepped out of my home. The weather was horrible. It was pouring outside and my feet were soaked by the wet grounds by the time I reached the subway station.

I had just missed the subway train and had to wait 20 minutes for the next one. It was already 5:15 AM when the next train arrived and I was pressed on time.

I arrived at the Port Authority Bus Terminal at 5:25 AM. The bus terminal was closed and did not open until 5:30 AM. When they opened the bus terminal doors, I ran to the gate number printed on the ticket, which was Gate #1. The whole area was empty, and there was no sign of a bus. I became worried and rushed to the Information Desk. The Information Desk was vacant and the Greyhound department was closed. I ran around like a chicken without a head, looking for help. The Information Desk guy was standing in a corner, he saw me and pointed me to the right direction. He told me to go Gate #69, and the time was 5:35 AM. I ran to Gate #69, I was one step too late when I got to the bus stop. The bus had already left.

I had missed the 5:35 AM bus, which was the only bus that would take me to Philadelphia in time for the court hearing. I went to the Greyhound customer service desk and told them what happened. The man working there was drawing pictures on a piece of paper and he seemed too busy to listen.

I paced around the bus terminal and thought for a moment. I decided to take the next bus to Philadelphia at 7:00 AM, even though I would arrive late in Philadelphia, at 9:10 AM. I called my attorney and left her a voice mail that I had missed the 5:30 AM bus and would be taking the 7:00 AM bus. I would rather show up in court late than be absent.

On the way to Philadelphia, the bus hit some traffic. The bus arrived in Philadelphia at 9:15 AM. I rushed to the court house, but mistakenly went to the wrong building. I had gone to the attorney’s office. I went out and walked to the court house, which was the building next to it.

I arrived at the Municipal Court of Philadelphia at 9:30 AM. I looked for the attorney that represented me. He looked for my case file and then told me to sit in the court room until he calls my name.

It was about 10:00 AM. The judge came and names were called. He reviewed other people’s cases and I sat there and watched. By 11:00 AM I became worried. I did not know if they would get to my case on that day. Also, I had purchased tickets for the 12 PM bus to return to New York.
One by one, I listened to the judge go over all the cases and people were leaving the court room. I was one of the last two cases remaining. Finally the judge turned to my case at 11:25 AM. The attorney representing me told the judge about the tenants not paying rent. Also the tenant did not show up for the hearing. The judge ruled in my favor. I would get possession of my property and the tenant owed me $5,270. The attorney said that I could leave and called the attorney office later for more details.

It was 11:30AM. I walked to the bus station and stood in line for the 12:00 PM bus from Philadelphia to New York. It was a good thing I bought tickets for the 12:00 PM bus. I arrived back to New York at 2:10 PM and returned to work.

I was glad that the court hearing was over. From the start of my day at 4 AM to the time I arrived back to New York at 2 PM, the whole process from end to end took 10 hours. Through the bad weather, ticket mess-ups, wrong directions, and long hours of waiting, things worked out at the end. It was definitely an experience that I never expected and having experienced it once was enough.

Time Line
4:00 AM – Woke up and prepared for trip to Philadelphia
5:25 AM – Arrived at NY Port Authority Bus Terminal
5:37 AM – Missed the 5:35 AM bus
7:00 AM – Boarded the 7 AM bus to Philadelphia
9:15 AM – Arrived in Philadelphia
9:30 AM – Showed up in the court house
10:00 AM – Sat in the court room
11:25 AM – Judge reviewed my case and ruled in my favor
12:00 PM – Boarded the bus to New York City
2:10 PM – Arrived in New York City

Read more:
Philadelphia Tenants Saga – Part 1
Philadelphia Tenants Saga – Part 2
Philadelphia Tenants Saga – Part 3
Rental Property

Dow Sinks Almost 200 Points

Dow 8,565.09 -196.33 -2.24%

Nasdaq 1,507.88 -57.60 -3.68%

S&P 500 873.59 -25.65 -2.85%

The auto bailout is not looking good. Friday may be a rough day for the markets.

Dow Drops 243 Points

Dow 8,691.33 -242.85 -2.72%
Nasdaq 1,547.34 -24.40 -1.55%
S&P 500 888.67 -21.03 -2.31%

Dow drops 243 points after a two days of rally. The auto industry see good news with $15B bailout money.

Carnival of Personal Finance #182

The Carnival of Personal Finance – Don’t Go Broke Over the Holidays edition is now live. It includes my article, My Coinstar Experience.

Stock Market Ends Positive

Dow 8,934.18 +298.76 +3.46%
Nasdaq 1,571.74 +62.43 +4.14%
S&P 500 909.70 0.00 0.00%

World markets surge on Obama’s spending pledge

My Coinstar Experience

Coinstar is offering a $10 bonus for a coin deposit of $40 or more and the selected cash out option is eCert. I made a successful deposit that qualified for the bonus several days ago. Since I had more coins, I thought I would deposit more coins. I made two more deposits but they were not able to qualify for the $10 bonus.

On the second deposit, I brought a bag of 40 dollar coins, totaling $40, and tried to deposit them in a Coinstar Machine in Duane Reade. The machine stopped taking dollar coins after 34 coins. The total deposit was $34, only $6 short of $40 and therefore the total did not qualify me for the $10 bonus. The machine must have maxed out the slots for the dollar coins, because it returned all the dollar coins. I ended up with a $34 Amazon eCert. The lesson is that even though you may have $40 in dollar coins, the machine may not have space for all of the coins.

On the third deposit, I went to a different Coinstar location. I brought a bag of 40 dollar coins and a roll of quarters. Learning from the second deposit, I thought I would fill the machine with quarters when the dollar coin slots were maxed out. Unfortunately, only two dollar coins were accepted. The rest of the dollar coins were returned. I decided to abandon the deposit. The total balance of my deposit was $2, but because option for gift certificates required a $5 minimum deposit, the machine forced me to select cash payout, which comes with an 8.9% processing fee. I paid 18 cents in fees and ended up with a $1.82 in a cash payout. I took the cash receipt and bought items in the store. Had I known earlier, I could have use the quarters to bring the minimum to $5 balance before cashing out. The lesson is that you have to mind the Coinstar minimum requirement for the gift certificates.

Obviously, I did not anticipate that the Coinstar machines would max out on their coin slots. The shortcoming did not qualify my second and third Coinstar deposits for the bonus. Instead, I lost money on the third deposit. In any case, it was a fun experience. I’ll wait for the $10 bonus from my first deposit.

Carnival of Personal Finance #181

The latest edition of the Carnival of Personal Finance is posted.

Check it out on Mighty Bargain Hunter.