May 24

Weekly Recap – May 24th, 2013

 

This is the view from the cabin on a cool fall morning.

This is the view from the cabin on a cool fall morning.

Wow, this week flew by for me.  We’re starting a forecast at work (real exciting, I know) so I was pretty busy.  Plus, I’ve been looking forward to heading up to the cabin, so I’m glad the week went fast.  Memorial Day weekend is normally our first weekend of the spring/summer that we head to my parent’s cabin.  They own a cabin on a chain of lakes in Western Wisconsin.  We try to get out there quite a few times during the summer, so that’s what my wife and I will be doing this weekend.

 

What are you up to?  Got any big plans for the extended weekend?

 

 

Enjoy the 3-day weekend and have a great next week!

 

-Jake-

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Photo by CommonCentsWealth

Permanent link to this article: http://www.commoncentswealth.com/2013/05/24/weekly-recap-may-24th-2013/

May 22

5 Fun and Frugal Summer Activities

57. fishing

With summer just around the corner everyone wants to have some fun, but not spend much money in the process.  It can be pretty difficult to stay within budget when there are always open patios and get togethers with friends.  That being said, with the nicer weather there are also a lot of activities that you should take advantage of (especially when we only get like 3 good months in MN).

 

1. Go Walking, Running, or Biking

With the nicer weather, why not go outside and get some exercise?  Not only does it not cost a thing, but it is great for your health.  I know a walk doesn’t sound very exciting, but it may help if you try to spruce it up by driving to a scenic location and then walking there.  We have a ton of lakes around here, so it’s nice to drive to one of them and take a walk around it.  Also, if you like taking pictures of nature like I do then I suggest carrying along a camera to document the walk.  It gives you something else to do while you get exercise and hang out outdoors.

 

2. Go Fishing

Fishing is one of my favorite hobbies.  I love it in either the winter or summer (yes we fish on top of ice up here in the frigid north), but nothing beats casting a spinner bait on a warm summer afternoon.  Some types of fishing are better with a boat, but you don’t need one.  Many lakes have public accesses with some sort of dock and you can fish right there (just make sure to have a license).

 

3. Plan a Picnic

This is pretty cheesy, I know, but doesn’t it sound like so much fun?  There is always some green grass at a local park that is just waiting for you to have a picnic there.  I have to admit, my wife and I haven’t had a picnic in a few years now, but they are always fun.  They are also kid friendly, which is nice.

 

4. Plant a Garden

My wife and I love having a garden.  It’s relatively cheap to start and it’s so much fun watching it grow all summer.  We like to grow tomatoes, green beans, sunflowers, cilantro and jalapeño peppers.  We don’t really like the tomatoes (those mostly go to my mom), but we’ll eat the rest of the stuff.  Plus, if you do it the right way a garden (and plants in general) can increase your resale value.

 

5. Have a Barbeque and Play Yard Games

I can’t believe this one wasn’t higher on my list, I love starting up the grill during the summer.  You don’t always need to meet friends at a local establishment, invite them over for a nice night of delicious food and games.  If you’re really tight on money tell everyone to bring their own meat and a dish to share.  That way everyone gets what they want and no one pays too much.  Our favorite yard game is cornhole (or bag toss, whatever you call it), so we normally break that out whenever we can.

 

 

Summer is a great time of year.  People finally get out of their houses and begin to enjoy the beautiful outdoors.  The great thing about it is that there are so many activities you can do relatively cheaply.  I know it may seem like fun to do many things that cost money, but it’s important that you stick to your budget.

 

What do you like to do during the summer?  Do you find it tougher to stick to your budget during the warmer months?

 

-Jake-

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Photo by Heath Alseike

Permanent link to this article: http://www.commoncentswealth.com/2013/05/22/5-fun-and-frugal-summer-activities/

May 20

How to Buy a Bike

56. biking

With the ever increasing price of gas, bikes are becoming a more popular method of transportation.  Even though a bike may save you money on gas, it’s important you buy the right bike for you or else you won’t ever want to ride it which will result in not saving any money.  There are quite the variety of bike types, prices and places you can buy one so following these few simple steps should get you going in the right direction.

 

What type of bike do you want?

There are a few basic types of bikes with each of them providing a unique purpose.  It is important that you determine which type you want so that your search is narrowed and you know what you’re looking for.

  • Road: These are great for cruising and getting from point A to point B the quickest.  They are also the go-to bike if you plan to race or do any sort of triathlons.56. road bike
  • Mountain:  These bikes are a bit heavier and have much wider tires with bigger treads.  As the name would suggest, they work really well on any mountain trail where you’re going through a variety of terrains.

56. mountain bike

  • Hybrid:  This is a mix between the road and mountain bikes.  These bikes are great for a person who mostly rides on streets or paved trails, but also would like to head off trail every once and a while.  This is the type of bike I decided to get last year.

56. hybrid bike

  • Cruiser:  These bikes are built for comfort.  They allow you to sit straight up and just cruise down the streets, but they aren’t meant to be used for speed.  My wife owns one of these.

56. cruiser bike

 

How much do you want to spend?

You can spend anywhere from $50 to thousands of dollars on a new bike.  It’s important that you do a bit of research on prices and then determine how much you can afford to spend.  Make sure it is in your budget because a bike is definitely a want.  I did my research and found that I could get a very good bike that did what I wanted it to do for around $400.  If you want a really good road bike be prepared to spend over $1,000.

 

Bikes are like a lot of other things in life where you get what you pay for.  If you’re just using it for pure enjoyment and will only ride a few times a summer then a $100 bike will probably suit you well, but if you’re planning on using it to get to work or for regular exercise then you’ll want to spend quite a bit more than that.

 

Quick tip: ask if they have any of last year’s model in stock.  Bikes are like cars where they have new models come out every year.  A new model may cost $800, but last year’s model (essentially the same bike) probably only sells for about $400.

 

Where will you buy your bike?

Bikes can be bought in a bunch of different places.  You can just head to your local Wal-Mart/Target to get a lower end bike (if you just want it for enjoyment) or you can go to an actual bike shop for the higher end bikes.  If you’re looking for a road or hybrid bike then you’ll most likely need to go to a bike store or a place that has a good selection because Target won’t have any.

 

I ended up buying my bike from Erik’s Bike Shop because they offer decent warranties and have great customer service.  One thing to realize is that many places will match the price of another local retailer.  I knew I wanted a specific bike and I wanted to buy it at Erik’s, but their price for the bike was around $200 higher.  I found the exact bike I wanted at a local place for less than $400 and then had Erik’s match that price so that I could get the warranties.

 

 

Biking can be such a fun and rewarding hobby, but buying a bike can be overwhelming.  It’s important to be patient and do your research so that you don’t end up getting something you won’t like long-term or pay more than you should’ve.

 

Do you enjoy biking?  Have you bought a bike recently and what steps do you use to find the bike you wanted?

 

-Jake-

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Photos by Mindfrieze, Alexik, Photologic1, Mr. T in DC, and Portland Afoot

Permanent link to this article: http://www.commoncentswealth.com/2013/05/20/how-to-buy-a-bike/

May 17

Weekly Recap – May 17th, 2013

54. horse betting

Summer has finally arrived here in Minnesota (or at least a really late spring)!  We had a 90 degree day along with a bunch of 70 and 80 degree days.  My wife and I were finally able to plant our garden for the year and now we’re just crossing our fingers that it all turns out.  We’re off to the the horse track (Canterbury Park) tonight for the very first races of the year!  Hopefully we come back big winners.

How was your week?  As is always the case, there were some killer articles this week.  Check them out and show them some love.

 

 

Enjoy the weekend and have a great next week!

 

-Jake-

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Photo by Tall Pomlin

Permanent link to this article: http://www.commoncentswealth.com/2013/05/17/weekly-recap-may-17th-2013/

May 15

How to Landscape for Highest Resale Value

53. landscaped yard

Have you ever driven by a house for sale and thought to yourself, “Who would ever want to live there?”.  You have come to this conclusion just based on the exterior of the house.  The inside may be incredible, but the outside keeps you away.  Landscaping may not sell your house, but it will definitely get more people in the door when you go to sell.  I previously discussed How to Raise the Value of Your Home and one of the items was landscaping.  Being that it’s spring which is a great time to clean up the yard and plant new plants, I thought it was time to write a more specific article.

 

Keep Your Grass Mowed

This probably seems obvious to most people, but there are always those houses where the grass grows wild and it’s a total turnoff to the entire neighborhood.  Mowing your grass is one of the easiest things to do, but can easily be forgotten (especially if you’ve already moved out).  If you’re no longer in the house be sure to pay someone else to keep mowing it while you try to sell.

 

Kill Those Pesky Weeds

Weeds are one of my biggest pet peeves with yards.  I absolutely hate them and try to take care of them as quickly as possible.  This can be extremely difficult when your neighbors don’t care one bit (as is the case with me), but it makes your yard standout in a good way.  It’s so easy to go buy a weed killer (make sure to not get the grass killer one too… I’ve made that mistake before) and spray the weeds before they spread too far.

 

Plant Flowers, Bushes and Trees

Flowers and other various plants can add a ton of value to the exterior of the home.  If you’re really into it you can grow different types of flowers that bloom at various times throughout the spring, summer and fall.  For example: tulips are normally one of the first flowers to bloom (at least in MN), so having a few of those around will color up your yard in the late spring before any of the other flowers.

 

Also, make sure that these flowers and bushes don’t require a ton of work.  People love the way landscaped yards look, but they don’t want to do the work to make them look like that.  Doing a bit of research beforehand on what plants are easiest to grow and maintain will help keep your yard looking nice for the longest period of time.

 

Planter boxes underneath your windows and pots with flowers in them on your doorstep can be a nice touch.  It makes your house seem really welcoming to potential buyers.

 

Rock and Mulch Can Be Your Best Friend

Anywhere you have bushes and flowers you can put rock or mulch.  If you are starting from nothing, laying some plastic and then putting the rock or mulch on top of it will help manage the aforementioned weed problem.  Personally, I like the look of mulch a bit more than rock, but other people prefer rock so it’s just a personal preference.  Putting mulch around bushes makes the entire area just seem a lot cleaner and nicer looking.

 

A Fence May Be a Good Idea

I say it may be a good idea because fences definitely aren’t made for every yard.  Remember when you were younger and you always wanted a house with a white picket fence around it?  Well, potential buyers still have that in the back of their mind.  The type and size of fence is extremely important.  While the chain link are efficient (money and time wise), they aren’t the greatest looking.  A full privacy fence can look fantastic (and add that needed privacy to a small yard), but they can be a bit pricey.  When deciding on a fence make sure to pick one that gives you a bit of privacy, but doesn’t make your yard feel too small.  There is a happy medium you are trying to get.

 

Gardens Can Be Good or Bad

My wife and I love gardens so a garden would be great for us, but you have to realize not everyone has a green thumb.  Gardens are kind of like pools when selling a house, but on a much smaller scale.  If you want a garden then I say you make one, but don’t do it because of resale value.  The next homeowner may come in and take it out if they don’t like it, so you won’t get any money you put into it back when you sell.  Now if you have a huge yard with plenty of room and the garden is really fancy then it may bring in some more money, but those are rare cases.

 

FYI, Here is the mower and weed killer that I use currently (Yes, I use an actual push mower).  I highly suggest both of these.

 

What other things have you done to your yard to help with resale?  If you have recently bought or sold a house, did landscaping stick out to you during the process?

 

-Jake-

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Photo by Dan Harrelson

Permanent link to this article: http://www.commoncentswealth.com/2013/05/15/how-to-landscape-for-highest-resale-value/

May 13

What My Mom Has Taught Me

Minneapolis-Wedding-Photographer-0541

Being that yesterday was Mother’s Day, I thought I’d write an article about how influential my mom has been in my life.  Now, if I were to name everything she’s taught me, we’d all be here awhile, so I’ll just touch on a few of the major personal finance and business tips that I’ve picked up from her.

 

Follow Your Dreams

This may seem like a dumb one, but my mom has proved to me that anyone can do anything (to a certain extent).  She was a stay-at-home mom for over 10 years until she decided to head back out into the workplace.  Without a college degree or much recent experience, she decided to create her own job by joining real estate (you can see her website here).  This ended up being a great decision because she has excelled in the business.  Her determination really showed me that you can be successful if you just put enough hard work into it.

 

Customer Service is Key

My mom has always been huge on customer service.  She’ll avoid businesses because of it and strives to provide the best customer service for her clients.  She spends countless hours providing service that many other realtors don’t, but she knows that the extra work will pay off in the long run.  I’ve learned that if you’re going to do something you might as well do it right while providing service that goes above and beyond the call of duty.

 

Be Frugal, but Enjoy Stuff While You Can

If someone were to just meet my mom, frugal would not be the first thing that came to mind.  That being said, she is very good at knowing when to spend money and when not to.  I’m more naturally frugal than she is, but she has taught me to enjoy the money while you can because you never know when something may happen (i.e. a death, illness, etc.).  I always want to save more and more, but she does a good job reminding me I need to enjoy it sometimes.

 

As Long as You Have Your Health, Family and Friends, Everything Else Will Fall Into Place

My personality is one where I tend to make a bigger deal than I should out of a lot things.  I’ve learned from my mom that I need to put everything into perspective.  Your health, family and friends are the most important items in life and without them the money doesn’t mean anything.  It’s easy to get caught up in the rat race of life and begin to focus on stuff that really shouldn’t be that important.  Just be thankful if you’re healthy and have your family and friends nearby.

 

Communication is Key

This applies to many areas of life including marriage, finances, business, etc.  I definitely got my communication skills from my mom and I’ve been able to learn (probably too well) how to be open and communicate with others.  In family finances, it’s key to keep those lines of communication open, as well as in business.  Normally, over communicating is better than under communicating (although my wife would probably disagree, ha).

 

 

I’m sure all of you have learned countless, valuable, life lessons from your mother as well.  Hopefully you are taking them and applying them to your own life in order to make yourself get better.  I know that I may forget a few of these every once and a while, but my mom is always there to help remind me.

 

What valuable life lessons have you learned from your mom and how have you applied them to your own life?  What did you do this past weekend for Mother’s Day?

 

-Jake-

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Photo by Jennifer Whalen

Permanent link to this article: http://www.commoncentswealth.com/2013/05/13/what-my-mom-has-taught-me/

May 10

Weekly Recap – May 10th, 2013

52. mother's day

Another week has gone by and the weather has finally gotten better around here.  We’re starting to see a lot more green grass and even some leaves starting to bud.  My wife and I are having my parents over for Mother’s Day tonight, hopefully you get the chance to wish your Mom a happy Mother’s Day!

Here are my favorite articles from the week.  Hopefully you enjoy them too!

 

 

Enjoy the weekend and have a great next week!

 

-Jake-

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Photo by Laura Thykeson

Permanent link to this article: http://www.commoncentswealth.com/2013/05/10/weekly-recap-may-10th-2013/

May 08

Dave Ramsey’s Baby Step 7: Build Wealth and Give

51. rainbow

Now that you’ve made it through the hardest parts of the program, step 7 is the most fun and easiest.  Let’s just do a little recap on what needed to be done to make it this far.  You started with a little emergency fund, then you paid off all debt besides the mortgage, then you built up a fully-funded emergency fund of 3-6 months of expenses, then you started putting 15% towards retirement and saving for your children’s college, then you finally made it through step 6 by paying off your mortgage.

 

This is no easy feat and not many people make it this far, so you should congratulate yourself.  Now, if you’re like myself, you are still working through the program and can’t wait for the day that you make it to this step.

 

Just think what your life would be like with no debt payments whatsoever and plenty saved up for the major expenses in your life (like college and retirement).  It’s tough to imagine sometimes just because it seems so unrealistic.  I know, personally, that my wife and I would be able to live on about $1,500 a month if we had no mortgage or debt payments.  That would give us so much freedom because we would only need $18,000 a year.

 

It is this exact reason (needing a lot less money to live) that Dave Ramsey says that in step 7 is where you really begin to stockpile wealth and you now have enough money to give away a decent chunk of money.  I do have to mention that Dave is a huge proponent of a “tithe” no matter what steps you’re in.  A tithe is defined as giving a tenth of your income to the church (if you are a Christian).  Step 7 allows you to start giving more than a tenth of your income.

 

Step 7 is all about enjoying the money and wealth you have built up while, simultaneously, building up more wealth in the process.  If you follow Dave Ramsey’s plan diligently then step 7 would be the first time you’d allow yourself to invest in anything outside of retirement.  Have you ever wanted to invest in single stocks (not Dave’s favorite) or mutual funds (Dave’s favorite)?  Now is the time to do it!

 

There are a couple of things that Dave often says that really stick out to me.

  1. Live like no one else so that later you can live like no one else
  2. Poor people can’t help poor people by giving money, only people with money can give it.

 

The first quote makes sense because he’s asking you to live frugally (like no one else) so that later you can enjoy the luxuries in life (like no one else).  I like the quote, but I do think you have to enjoy life along the way as well.

 

The second quote is very interesting to me.  I’ve always wanted to be able to give away a lot of money towards good causes, but in order to do that I need to have the money first.  There are so many people who dedicate their lives to giving, but never really build enough wealth to be able to give a lot monetarily.

 

Hopefully we all make it to this step at some points in our life because it sounds pretty dang awesome to me.  I know that Dave and I have our difference on how to pay off debt and whether or not to pay off the mortgage vs. invest, but I do agree that having no debt or payments whatsoever would be a fantastic feeling.

 

What would you do if you made it to this step?  To where would you start giving a lot of money?  Do you think it’s realistic you’ll ever make it to this step?

 

-Jake-

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Photo by Jagjan

Permanent link to this article: http://www.commoncentswealth.com/2013/05/08/dave-ramseys-baby-step-7-build-wealth-and-give/

May 06

What “Wants” do you Spend your Money on?

50. horses

I realize that the majority of people’s purchases are “needs”, but even the tightest of budgets leave a little room for the wants in our lives.  My wife and I are fortunate enough to be able to afford most of the wants we would want.  I know we could be saving more money if we were to cut these out of the budget, but they are well worth the money to us.

 

Here are a few of the items we spend money on that other people may not.

 

Satellite TV

I’ve thought long and hard about getting rid of this want over the past month or so, but I just enjoy it too much.  I’m a diehard sports fan (pretty much any sport), so it’s super nice to be able to get most of the major games.  My wife and I also like watching a lot of shows so that’s a reason why we keep it as well.  It’s probably not the best for me, but my idea of relaxing on a weeknight is to come home and sit down in front of the TV for a few hours.  I know I should be reading or doing something else that stimulates the brain, but I just enjoy the competition in sports too much.

 

Eating Out

My wife and I don’t eat out that much (we limit it to $100 a month), but it is still a luxury for us.  Being that my wife and I don’t really cook, we like getting out of the house and having someone else cook us a meal every once in a while.  Even though we eat out a few times a month, we try to be as frugal as possible when we go out.  We almost always use coupons and rarely ever buy a drink in order to save a few bucks.

 

Meat

Meat is a big portion of our diet when we make our own meals and I love that.  I don’t really like pasta or beans (besides baked beans) which are two main dishes for the majority of people.  I know that we could save money if we ate more rice and beans, but I’m not willing to make that sacrifice when we have the money to be able to afford meat.

 

Horse Racing

Horse betting is one of our main hobbies during the summer.  We love heading to our local track (Canterbury Park) and watching the horses race.  We try not to spend too much money on it, but we’ll spend anywhere from $10-$20 once a week (that’s if we lose it all and we rarely do).  It is totally worth the expense because we get a lot of entertainment out of it and it’s something my wife and I can do together.

 

 

I know that all of these may be considered a “waste” of money to some people, but they are totally worth it to us.  I feel like everyone “needs” to spend some money on their own “wants” or they will lose motivation and fall off of their financial rocker.

 

What items do you spend your money on that many other people may see as a waste?  Would you be able to quit buying those items if you had to?

 

P.s. I correctly picked Orb winning the Kentucky Derby this weekend.  Did any of you have a horse you were cheering for?

 

-Jake-

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Photo by Paolo Camera

Permanent link to this article: http://www.commoncentswealth.com/2013/05/06/what-wants-do-you-spend-your-money-on/

May 03

Why Pet Hospitals can be a Scam

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Just after I wrote about the costs of owning a dog and cat last week, our cat got sick for the first time in her life.  I know, we probably deserved it being that I didn’t allot much for a vet visit in our costs, but I didn’t expect it would happen the next day.  We learned a valuable lesson through the whole ordeal, so I figured I’d share it here.

 

Before I begin the story (and subsequent lesson learned) I have to preface it by reminding everyone that we have no kids, so our dog and cat are basically our kids which means they’re pretty spoiled.  Our cat, Lulu, has been the easiest pet I’ve ever had (yes, that even includes “Mr. Shark” and the rest of the fish I’ve owned) until last week.  My wife and I got home from working out around 6:30 to find a few spots of pee and throw up throughout the house.  Being that our dog had been kenneled we knew it had to be from Lulu.  She has never thrown up or gone to the bathroom outside of her litter box, so we knew something must be wrong.  We found her sitting on her favorite chair, but not looking normal.  She was very sluggish and meowed when we went to pick her up like she was in discomfort.

 

Lulu had been brought in for her yearly shots just 5 days earlier and the vet had mentioned to bring her in right away if we noticed anything different with her.  Being that the vet closed at 7pm, we rushed her in (still in our sweaty workout clothes).  After about 2 minutes (no joke, all we got was 2 minutes) of feeling her and looking at her the doctor left telling her assistant to let us know what our next options are.

 

The assistant proceeded to say every test known to man that they wanted to do on our poor little kitty just to find out what was wrong (and that didn’t even ensure they’d find anything).  This included everything from a pee test to an x-ray to keeping her there for “observation”.  All I’m thinking when hearing the long list is $$$$$$.  How much is this going to cost us?!

 

After 10 minutes of rattling off what they’d do (yes, 5 times longer than the doctor took to look at her), she told us that the amount would be $652.17!  My wife looked at each other and almost laughed.  We had expected $200 or maybe $300, but not $652.17.  Also, the treatment to fix what was wrong could be $0 or that may cost us well over $500 as well, so this illness could’ve ended up being very spendy.

 

There were basically 3 outcomes that we saw happening.

  1. She got better on her own (in which case we wouldn’t need any tests done)
  2. There was something wrong that could be treated (which the tests would hopefully show)
  3. There was something wrong that couldn’t be fixed (in which case the tests would’ve still been a waste)

 

We quickly discussed the situation and decided that waiting overnight to see if she got better on her own (which the vet said may happen) was the best option.  So, we left after paying our $45 office visit fee (yea, $45 for 2 minutes of the vet’s time, sounds like a good gig they got) hoping she’d get better.

 

Thankfully we started seeing improvement later that night and by the next morning she was back to the old Lulu we knew and loved.  We ended up making the right decision and saving ourselves a cool $650 in the process.

 

The lesson we learned in the process is to be patient and not always trust a vet who may just have the money in mind.  The vet tried to get us to run the tests by mentioning that the cat may not make it through the night if something was terribly wrong or that it could get worse (and who would want to make a cat suffer?!).  She may have been telling the truth, but I think she was exaggerating and knew very well that there was a 75% (total guess) chance that she’d get healthy again with no treatment.

 

I’m sure most of you are thinking we’re nuts for not waiting at least 24 hours in the first place, but now we know.

 

Have any of you had a similar experience?  Would you have made the same decision we did?

 

-Jake-

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Photo by Me

Permanent link to this article: http://www.commoncentswealth.com/2013/05/03/why-pet-hospitals-can-be-a-scam/

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