I didn't catch this right away, but in looking back over the past year, I can see, a "kahootzing" unfolding. Clearly, the banks knew quantitative easing was coming to an end and interest rates would no longer be stagnate at ZERO. Was this conjecture based upon past trends? I don't think so, since this economic disaster, compared to the Great Depression and there is now a global economy. This is no conspiracy theory, and no history that is comparative. This is simply the way an economy of perpetual motion operates.
Since the interest rates plunged and remained at basically 0%, literally flat-lined for five years, banks have had to get creative to make money and keep folks interested in letting them "hold" their money. In this time of low interest rates and job insecurity, the average folks don't have so much money to hold. Once the Big Banks were bailed out, they could start making some interesting credit offers to get the perpetual motion rolling again. Credit offers are not always made based upon a good credit history, but increased expenses, times of struggle, or even poor money management can be part of the equation.
I knew when the last long term CD matured, I would not renew it. It wasn't a great rate, but it was by far better than 0.5% for 5 years. Interestingly at that same time, I heard Abba speak of enlarging the tent, so a sizeable expense was about to take place. As it turns out, two additions were added for about the same cost as the value of the CD. Abba is so economical. Now, here is how I got into the world of credit offers . . . The retailer of the building supplies offered a discount if one used their credit card. Rather than just pay cash, I would actually be saving money to use their card with a discount, provided I paid the balance in full when the bill arrived. The mature CD made that a simple task, but, it got my name in some sort of active credit card offer pool.
Suddenly, the bank that carries the one credit card I have had for over twenty years, offered balance transfers at 0% interest for a year, but there was a 4% transaction fee, up front. The bank, which could borrow money at 0% interest could pass that savings on to me, but actually make 4% interest by calling it a fee. The fine print was really great. If I'd taken them up on this wonderful offer but didn't get it all paid back in the 0% time frame, the interest rates would soar on the remaining balance and my old card would then have a brand new interest rate. The new credit card with sizeable charges had placed me in database with a presumed balance. When these opening discounts or special rates are offered, the lender is planning on a balance to be carried, which is backed with statistics.
When I started my business, which had very minimal start up costs, the credit offers came pouring in. All I had done was register my business name with the state. I had credit offers before I had a bank account, which made me wonder . . . The line of credit I was offered was enormous and clearly not commensurate with the possible, potential profit of a new business. I was immediately offended. I felt like they wanted to own my new business and me!
I could go on and on . . . but the point is, with every credit offer, came the reality of potential bondage. Paying my monthly balance on a single card didn't bring new credit offers from every direction. Signing up for a new line of credit and starting a business opened the door to an avalanche of offers, which for many, literally results in an economic avalanche. These banks and credit companies know that! They bank on it.
Sunday, December 28, 2014
Sunday, December 21, 2014
The Cost of Living
With the price of oil plummeting, I'm expecting to see other costs destabilize. At this point and time, I'm not even sure what that really means or could possibly entail, but without the gold or silver standard, and so many global currencies; oil is really the global standard. If the American dollar now has more buying power regarding a barrel of oil, I think that usually means deflation or inflation is coming. I think both are on the horizon. Economy experts have forecasted an improved 2015 for America's economy, but much of that is based upon oil and gas, while the price of oil has dropped dramatically.
I believe we're going to see another drop in the value of tangible assets, or at least the selling power of them and I think we're going to see an increase in the cost of living. The Great Repression of 2008 brought about a real change in the economic climate of this country, with a severe drop in the standard of living for the Middle Class. In going back to campaign rhetoric of our current leader, he frequently used the term "working class" in reference to what used to be the Middle Class.
In recent conversations, I've experienced not sticker shock, but what I would call "Cost of Living Shock." I truly had not realized how far out of the economic loop this homesteading lifestyle had taken me. My daughter started it, last year when we were talking about her sister's move. I had said something about them being here for a month and giving me $200.00. My daughter just looked at me over her wine glass and asked, "Two hundred dollars, what's that even begin to cover?" I then stopped and thought about how much my kids talk about their cost of living, especially the one who had given $200.00 . . . so I certainly quit feeling guilty for having taken almost enough money to cover the cost of my internet overage through their stay. I have now heard others speak of their income, their monthly expenses, and in many cases, their continued need for assistance.
Obviously, some of the cost of living has to do with money management. I choose to be frugal to a point, but really, I buy what I need and usually what I want. I just don't require a lot of high tech gadgetry and I still prefer investments to just purchases. I don't know that I'll be here in 40 years, but if America is still in business, some of the things I've implemented here in Goshen could still be operational and of course, much of the homesteading lifestyle is perpetual. As others describe their income, I'm shocked. I've been out of the mainstream workforce for so long, I had no idea people actually complained about the level of income I'm hearing about. I can't imagine how they find a way to be broke with that much income!
Our economy did not recover and it's shaky. We can't keep mismanaging our income and expect G-d, government, or charity to continue to provide. Wealth does not begin in the wallet, it begins in the way we think and manage.
I believe we're going to see another drop in the value of tangible assets, or at least the selling power of them and I think we're going to see an increase in the cost of living. The Great Repression of 2008 brought about a real change in the economic climate of this country, with a severe drop in the standard of living for the Middle Class. In going back to campaign rhetoric of our current leader, he frequently used the term "working class" in reference to what used to be the Middle Class.
In recent conversations, I've experienced not sticker shock, but what I would call "Cost of Living Shock." I truly had not realized how far out of the economic loop this homesteading lifestyle had taken me. My daughter started it, last year when we were talking about her sister's move. I had said something about them being here for a month and giving me $200.00. My daughter just looked at me over her wine glass and asked, "Two hundred dollars, what's that even begin to cover?" I then stopped and thought about how much my kids talk about their cost of living, especially the one who had given $200.00 . . . so I certainly quit feeling guilty for having taken almost enough money to cover the cost of my internet overage through their stay. I have now heard others speak of their income, their monthly expenses, and in many cases, their continued need for assistance.
Obviously, some of the cost of living has to do with money management. I choose to be frugal to a point, but really, I buy what I need and usually what I want. I just don't require a lot of high tech gadgetry and I still prefer investments to just purchases. I don't know that I'll be here in 40 years, but if America is still in business, some of the things I've implemented here in Goshen could still be operational and of course, much of the homesteading lifestyle is perpetual. As others describe their income, I'm shocked. I've been out of the mainstream workforce for so long, I had no idea people actually complained about the level of income I'm hearing about. I can't imagine how they find a way to be broke with that much income!
Our economy did not recover and it's shaky. We can't keep mismanaging our income and expect G-d, government, or charity to continue to provide. Wealth does not begin in the wallet, it begins in the way we think and manage.
Sunday, December 14, 2014
Tax Deductible
As we will soon be entering the tax preparation season, there are some things we might want to consider. Actually, it's two major things to consider that apply to a number of areas of our life. There is no free lunch and that includes tax deductions and credits. Tax deductions or credits basically fall into two categories. People and stuff. When we receive a deduction or credit regarding a person in our life, that individual is one of the millions who is now collateral for the national debt.
A couple cannot file a joint return without a marriage license. The marriage license is a contract between two people and the state. Parents cannot claim their children without providing social security numbers of the children. That has not always been the case. I am 56 years old. I did not need or acquire a social security card or number until I wanted a job and a driver's license. A birth certificate with a social security card application is really quite recent. I'd have to ask my ex-husband to be sure, but I don't think we had to list social security numbers for our kids on the tax returns, and I know there was no social security card application when filling out a birth certificate when I was having children.
When it comes to credits or deductions for people, that is literally assigning a monetary value to a human being. Oh, we don't use that term, and for the most part, none of us even considered it, but with the rising national debt, and the requirement of documentation, the correlation should be obvious. The statement: "For social security and tax purposes -Not for identification" actually used to be printed on social security cards. Now, for most any monetary transaction, we are asked at least the last four numbers of our "social." How many times have you heard, "What are the last four of your social?" That question literally makes me cringe, every time I hear it.
When it comes to deductions or credits involving possessions, the deduction is based upon a percentage of the payments. I was getting my house in order, thinking now that I have one entire room dedicated to my business and one entire room for ministry, I'd be figuring my taxes differently this year. Then it dawned upon me. Without a mortgage, I have no percentage to figure to deduct the room. Without a 501c3 the government doesn't even recognize this ministry. The only figures our tax system is interested in when it comes to this ministry and my business are the figures of income . . . PERIOD. And those are taxable!
As you prepare to figure your taxes in the coming, really consider the cost of the deductions and credits that are offered.
A couple cannot file a joint return without a marriage license. The marriage license is a contract between two people and the state. Parents cannot claim their children without providing social security numbers of the children. That has not always been the case. I am 56 years old. I did not need or acquire a social security card or number until I wanted a job and a driver's license. A birth certificate with a social security card application is really quite recent. I'd have to ask my ex-husband to be sure, but I don't think we had to list social security numbers for our kids on the tax returns, and I know there was no social security card application when filling out a birth certificate when I was having children.
When it comes to credits or deductions for people, that is literally assigning a monetary value to a human being. Oh, we don't use that term, and for the most part, none of us even considered it, but with the rising national debt, and the requirement of documentation, the correlation should be obvious. The statement: "For social security and tax purposes -Not for identification" actually used to be printed on social security cards. Now, for most any monetary transaction, we are asked at least the last four numbers of our "social." How many times have you heard, "What are the last four of your social?" That question literally makes me cringe, every time I hear it.
When it comes to deductions or credits involving possessions, the deduction is based upon a percentage of the payments. I was getting my house in order, thinking now that I have one entire room dedicated to my business and one entire room for ministry, I'd be figuring my taxes differently this year. Then it dawned upon me. Without a mortgage, I have no percentage to figure to deduct the room. Without a 501c3 the government doesn't even recognize this ministry. The only figures our tax system is interested in when it comes to this ministry and my business are the figures of income . . . PERIOD. And those are taxable!
As you prepare to figure your taxes in the coming, really consider the cost of the deductions and credits that are offered.
Sunday, December 7, 2014
Strange Business Experience
I was in town the other day and decided I would stop in the jewelry store. I'm not one to just shop and the jewelry dispersal amongst heirs is already written in my will, so I'm not really looking for any new pieces. I wanted two silver chains, matching but of different lengths to replace a short one and a broken one. There are two very different charms or pendants that I wanted to wear simultaneously, and to do so, required separate chains. In my mind I'd "pull" the two very different pieces together with matching chains. So, I stopped in the local, family owned jewelry store. I used to think the third generation collapsed family businesses by spending profits rather than investing back into the business, but I witnessed another way, the third generation puts the family business out of business.
When I walked in, a nicely dressed young woman asked if she could help me. I told her what I was looking for, and as we walked toward the display case, the owner acknowledge me, telling me he was eating lunch. I didn't think much of it at the time, as he looked at his notepad and ate some sort of carry out. As the young woman looked through the case for what I wanted, she asked her boss something. He quickly walked over to where we were. I made a light hearted comment about disturbing his lunch, to which he brusquely responded with an expletive and having thrown it away. I wasn't sure what to do with that odd response as I'm in business myself and I'm old school. When it comes to the customer, they come before break time. I was sure his father and grandfather before him, also held to that business practice.
He then took over the sale, while talking over me as I attempted to ask a question three times. He then got out his big catalogue showing me various sizes and strengths of chain while offering a completely ludicrous metaphor. Just as he finally finished and I attempted to ask my question, yet again, a young lady walked into the store. He turned around to ask his sales clerk what she wanted. She was looking for a job. He then proceeded to tell her the business next door was looking for help and he'd take her over there as soon as he "finished" with me. He turned back around and asked me what my question was. By that time, I'd forgotten, so that's what I told him. I then said, it would be better to bring in the charms and pendants to get a better idea of what I was interested in. He made some comment about increasing the cost of the sale and I simply thanked him for his time as I walked out.
The customer service I received, from the owner, was shocking. Although I have a style all my own, the jewelry I wear is quite nice. He should have taken note. As I left, I thought of my dear Uncle Bert who owned a jewelry store and my friend from Temple, who also owned a jewelry store. They would have never treated anyone that way, on the street, much less in their own store. I'd have expected that sort of customer service from a teenager working in a jewelry kiosk at the mall. That jeweler actually sabotaged his own sale . . . So, I shrugged my shoulders and went on about my day.
After receiving a great discount from my computer guy, for debugging my laptop, my faith in the independent business man was renewed. As the town checklist dwindled, I thought of the business that buys and sells precious metals and jewelry. It's a father/son partnership and they're always quite customer friendly, even if they don't have what I'm looking for. So, I stopped in. The son was there and although it was also his lunch hour, was more than happy to leave his desk and come to the counter with a smile. I asked him if he had any silver chains. He immediately responded with, "not too many" as he placed the velvet box on the display case. Are you ready? There were two matching chains of different lengths, exactly what I was actually looking for. Oh, and the price of estate silver versus new jewelry? I bought both chains for less than the price of the smaller chain at the jewelry store.
As I headed home, I thought of the way the day had gone. I expect to be treated impersonally, even as a pain, in large department stores and chains, but I make a point to take my business to the local independent business men. I still will, but with or without a discount, I will absolutely patronize those who give good service!
When I walked in, a nicely dressed young woman asked if she could help me. I told her what I was looking for, and as we walked toward the display case, the owner acknowledge me, telling me he was eating lunch. I didn't think much of it at the time, as he looked at his notepad and ate some sort of carry out. As the young woman looked through the case for what I wanted, she asked her boss something. He quickly walked over to where we were. I made a light hearted comment about disturbing his lunch, to which he brusquely responded with an expletive and having thrown it away. I wasn't sure what to do with that odd response as I'm in business myself and I'm old school. When it comes to the customer, they come before break time. I was sure his father and grandfather before him, also held to that business practice.
He then took over the sale, while talking over me as I attempted to ask a question three times. He then got out his big catalogue showing me various sizes and strengths of chain while offering a completely ludicrous metaphor. Just as he finally finished and I attempted to ask my question, yet again, a young lady walked into the store. He turned around to ask his sales clerk what she wanted. She was looking for a job. He then proceeded to tell her the business next door was looking for help and he'd take her over there as soon as he "finished" with me. He turned back around and asked me what my question was. By that time, I'd forgotten, so that's what I told him. I then said, it would be better to bring in the charms and pendants to get a better idea of what I was interested in. He made some comment about increasing the cost of the sale and I simply thanked him for his time as I walked out.
The customer service I received, from the owner, was shocking. Although I have a style all my own, the jewelry I wear is quite nice. He should have taken note. As I left, I thought of my dear Uncle Bert who owned a jewelry store and my friend from Temple, who also owned a jewelry store. They would have never treated anyone that way, on the street, much less in their own store. I'd have expected that sort of customer service from a teenager working in a jewelry kiosk at the mall. That jeweler actually sabotaged his own sale . . . So, I shrugged my shoulders and went on about my day.
After receiving a great discount from my computer guy, for debugging my laptop, my faith in the independent business man was renewed. As the town checklist dwindled, I thought of the business that buys and sells precious metals and jewelry. It's a father/son partnership and they're always quite customer friendly, even if they don't have what I'm looking for. So, I stopped in. The son was there and although it was also his lunch hour, was more than happy to leave his desk and come to the counter with a smile. I asked him if he had any silver chains. He immediately responded with, "not too many" as he placed the velvet box on the display case. Are you ready? There were two matching chains of different lengths, exactly what I was actually looking for. Oh, and the price of estate silver versus new jewelry? I bought both chains for less than the price of the smaller chain at the jewelry store.
As I headed home, I thought of the way the day had gone. I expect to be treated impersonally, even as a pain, in large department stores and chains, but I make a point to take my business to the local independent business men. I still will, but with or without a discount, I will absolutely patronize those who give good service!
Monday, December 1, 2014
Opportunity or Bondage?
I didn't feel comfortable just sharing this link, because this is not something I would recommend doing. Rather, I wanted to call attention to this new plan in which a mortgage truly lives up to it's origin. Mortgage and mortality have the same root word.
The age of the woman in the articled linked below is 48 years old. She just obtained two 30 year loans for a house, as well as borrowing against her 401K for the downpayment and closing costs. Providing all goes well and she is able to maintain her current income until she's 78 years old, she'll own her home. If you are thinking of buying a home, please consider the long term factors and the fact that everything changed, economically, practically overnight just a few years ago.
This just doesn't seem like an opportunity, it seems more like a lifelong bondage.
https://homes.yahoo.com/news/how-one-homeowner-bought-a-home-with-a--1-026-down-payment-011843269.html
The age of the woman in the articled linked below is 48 years old. She just obtained two 30 year loans for a house, as well as borrowing against her 401K for the downpayment and closing costs. Providing all goes well and she is able to maintain her current income until she's 78 years old, she'll own her home. If you are thinking of buying a home, please consider the long term factors and the fact that everything changed, economically, practically overnight just a few years ago.
This just doesn't seem like an opportunity, it seems more like a lifelong bondage.
https://homes.yahoo.com/news/how-one-homeowner-bought-a-home-with-a--1-026-down-payment-011843269.html
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