How To Make $720 An Hour

September 11, 2009

 I have been having some professionals come in and do some work on my house. More specifically I have been working to add a bathroom in my basement. My house only has one, and I have ample space to add one in the basement. So I figured it would be a decent investment and a whole lot more convenient to have 2 full bathrooms.

 

So I had the plumber come in to do the waste plumbing, I was very happy with their work, and I felt the price was fair. I then had them come back a second time to do the supply plumbing, again I was happy with the quality of work, but price did not seam as fair this time.

 pipes

My question was about the cost of the labor, which was approaching $500 for less then 3 hours of work. Backing up a little I had the plumbers come out on two consecutive days, the first day the came and simply told me that I needed to do a little more framing and then left to do service calls. The returned the second day spent 2.5 hours working and got the job done.

 

So I called.

 

Turns out they were charging me $120 for the 10 minutes that the guys were there, and did not do any work. I asked if she could remove the charge and she happily did. So I paid her on the spot for the services.

 

So I saved $120 on a 10 minute phone call. Which equal out to $120/10/60 = $720 an hour. Man am I glad I just did not cut them a check right then and there!

 

Moral of the story, don’t be afraid to call and ask! They worst they can say is no.

 

Maybe I should take my own advice when it comes to my Disagreement With Chase

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Posted by fubar1383

Tunneling Out Of Shawshank

August 14, 2009

          This is a great movie based on the novel by Steven King if you have ever seen the movie you know what I mean, if you haven’t; well this is how it goes.

 

          Andy, a wrongly convicted man goes to jail in the 1940’s and gets to experience all the wonderful things about prison. He eventually ends up running a scam for the warden, and then escaping thought the use of his rock hammer. His rock ‘hammer’ probably would fit in the palm of your hand, and it takes him 20 years to tunnel thru his wall to freedom. The way he did it was slowly and meticulously. There are very few things that I have be doing for 20 years other then eating and sleeping. I can not imagine being focused on something that intensely for that long.

 

          Tunneling out of Shawshank is of course my metaphor for paying off my newly acquired mortgage. I owe somewhere in-between 100-200k on my house. This in itself is not remarkable at all, actually it’s probably very low compared to a lot of people. Why this is a big deal to me is the way that I am paying it off.

 

          I got an excellent mortgage rate (less then 5.5%) and a relatively affordable house. So guess how much I pay down on that mortgage per month?

 shawshank

 

Around $150.

 

          No I did not forget a zero, or move a decimal. I pay the same for my house per month that I do for my cable TV! The reason for this has to do with the way mortgages work. If you don’t know I highly suggest you look it up. But the short version goes like this:

 

          Early in the life of the loan the payments are 80% interest 20% principal. As you pay down the principal the interested earned by the bank per month becomes lower so after a year maybe your 79/21, after two year your 77/23, after three years 74/26. You notice how the amount paid to interests is lower every year 80, 79, 77. 74? That is the “power of compounding” you can see this power demonstrated dramatically in putting extra towards your payment. If you had a 30 year 150k mortgage at 7% simply paying $100 extra per payment pay your house of seven YEARS earlier.

 

The math on that is

 

23 years of paying $100 extra: $27000

 

Saves you 7 years of mortgage payments: $75000

 

After my first year I am going to pay more on my mortgage, and try to tunnel out of Shawshank just a little faster…

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Posted by fubar1383

Pay Day Lending: Brought to you by Fifth Third

July 13, 2009

 

            I clicked on this link thinking that it might be something worthwhile its called “Early Access” I thought it might be cool, maybe it will update my banking info faster!

 

 I was wrong…..

 

Fifth Third Early Access allows you to request an advance on your next direct deposit.
     
Fifth Third Early Access Key Features:    
     
  • Real-time transaction where you can transfer cash into your associated checking account.
  • Automatic payoff of each outstanding Advance balance and associated finance charge. Payments will be automatically deducted from your associated checking account on your next qualifying direct deposit of $100 or more. If there is an outstanding balance on the 35th day after each Advance, we will automatically pay off the outstanding Advance balance from the associated checking account.
  • Associated finance charge with advance is 10% ($1 for every $10 borrowed) each time you make an advance, which equates to an 120% Annual Percentage Rate (APR).
  • Advances can be made in dollar increments up to your maximum credit limit. If your associated checking account is negative, an advance must bring your checking account to a positive status before you can access your full credit limit.
    
     
Wow those are lousy terms! 10% on every transition?!  This add claims that its only 120% APR. which might be true if you only got paid once a month. But most of us would need it in-between our weekly or twice monthly paychecks. So lets say you need this service 1 week before you get paid. So borrow some money from 5/3 and then 4 days later pay it back with your direct deposited paycheck. Lets do some math here. 10% interest *365/4 = 912.5% APR!! I wonder what the SEC will have to say about this. I think there is another financial tool you can use when your low on cash, oh yeah they are called credit cards!! Hey I can’t blame them for trying….. …

 

*Ohio recently passed a law limited Pay Day lenders to a MAX of 28%

    

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Posted by fubar1383

Chase is Bush League

July 9, 2009

So I am pissed off at Chase, we are having a bit of a disagreement.  

  Here is my message to Chase:  

 

I was setting up direct deposit to make my credit card payment and I omitted a digit. I corrected the situation right away and sent you the money again with the correct banking information. Please remove the fee due to a simple typo.

 Thank you

 -JonBon

 

Chase Response:

 Dear Jon,

 

My name is Diana, we understand your concerns regarding the return check fee on your account.

 A returned check fee is charged whenever your bank does not honor the check that you gave us to pay on your account. This can occur for a number of reasons. Please contact your bank for details regarding your check.

 This fee was assessed to your account because your payment was returned to us unpaid by your financial institution. It is a valid fee and will remain on your account.

 Thank you,

Diana

 

JonBon’s Rebuttal:

 Diana

Like I said before I made a typo and entered the wrong number for my account number or routing number. Of course the payment was not honored by the bank, it was not my account. I was attempting to make payments electronically which I am sure for Chase is less expensive then processing a paper check every month. I realize that it is a valid charge, but I think it is unreasonable to charge $39 for a typeo. Please remove the charge.

-JonBon

 

Chase Response:

 Dear Jon,

 Thank you for providing me with the opportunity to assist you today, regarding the returned payment fee.

 We previously reviewed your account and explained why we could not make the adjustment you requested. Even though you have informed us that this was a typo, the typo was not a bank error. We regret that we are unable to take further action regarding the returned payment fee reflected on your current activity.

 At this point I realize they are not going to be nice, and that I am going to have to be a little more forceful.

 

So I contacted the BBB, BRING IT ON CHASE!

 

Mrs. Newton

 I am sorry to hear that you are unwilling to fulfill my request to refund the unreasonable charges. You have left me no choice but to file a complaint with the Better Business Bureau. The complaint number is 83**** and has been filed to the BBB of Metropolitan New York.

 Thank you for your time.

 Respectfully

 

-JonBon

 

More to come kids!!

4 Comments | Credit, Liabilities | Permalink
Posted by fubar1383

Five Pointless Cars

June 26, 2009

          Here are the five cars that I find most useless and overpriced. Now I am sure they have their fans, and in some situations are pretty handy to have around, but in my everyday experiences I think for most people to own one is a waste of money.

 

5. Hummer

MPG:13/16 Price: $50,000 Passengers: A bakers dozen

 

            Too big! I like the idea, and the styling but it is just not utilized by 99% of people out there. Like most of the cars on this list it’s a “statement” vehicle. You want people to look at you and know you’re big, bad, and powerful. Plus it goes with your extensive collection of UFC graphic T’s.

 

4. Smart!

MPG: 33/41 Price: $15,000 Passengers: 1.5?

 smart

            Too Small! How is this car practical for anything? I would rather buy a scooter for 1/4 the price with probably better acceleration. Not to mention that I have heard horrible things about its actual fuel economy, transmission, and ability to merge into the interstate. The smart boast the slowest 0-60 MPH time of any car in production today.

 

 

3. Tesla Roadsters

MPG: Unlimited Price: $100,000 Passengers:2

 tesla

            This car is pretty slick; it is essentially a super car in the electric version. The problem is that it has no trunk and no range. Sure it’s fast, but other then taking it out on Saturday nights it has no functionality. I mean they get points for trying something new, but the only people that want to buy it seam to be the activist Hollywood types. This car gets bonus points on this list because the founders have made a habit of lobbing lawsuits at each other.

 

 

2. Cadillac Escalade Hybrid

 MPG 20/21 Price $70,000 Passengers: 8

 

            It’s like putting lipstick on a pig…. I don’t even know why they made the hybrid version of this. The original Escalade is pretty expensive, but very nice and a lot of people like that even if it is just a “smaller” nicer hummer. Spending another 10k for  a measly 5 MPG improvement is pretty pointless.

 

 

1. Jeep Wrangler

 MPG 15/19 Price $22.000 Passengers: 3

 jeep

            “It’s a jeep thing, you wouldn’t understand” Understand what? Your horrible gas mileage in your tiny car that is good for rolling over and does not have a real roof!? I guess then maybe I don’t. Yes jeeps are great for off-roading. As we have learned from the 100 million SUV’s on the road with four wheel drive no one goes off-roading! So basically your buying a car whose primary purpose is to drive on unpaved roads, and yet you will spend 99% of your time on paved roads where your car is out of its element. But oh yeah you drive a Jeep, so you get to wave at other jeeps as the drive by, lucky you….

1 Comment | Cars | Permalink
Posted by fubar1383

The Poor House

June 16, 2009

 

the poor house

 

Population: JonBon

 

 

            I used to be rich, I used to be the guy with money. I used to be the person who took vacations and maxed out their Roth IRA.  I used to live in a vault like Scrouge McDuck and swim around in all my money.

 

But I moved.

 

I moved into the poor house, with most of my fellow Americans. Now you have to understand my definition of poor, and an economists definition of poor are very different. My net worth is still probably very high for my age, and technically I am doing great. I am just way less liquid then I used to be.

 

            I have accumulated a crazy about of debt in the past 3 months or so. Now most of this is good debt, but its still debt, and I hate debt!!

 

            House:

better shack

 I purchased a home with 10% down. So I have six figures of mortgage debt that I now have to pay back for 30 years at 5.45 percent.  It is a huge adjustment to have tens of thousands sitting in the bank, to tens of thousands sitting in a house. It makes the dollars a little harder to get too. I will get the $8,000 first time home buyers credit, and I will get a place to live, but it’s still hard to go from owing money to no one, to owing the bank well over $100,000! The reason that this debt is good, is becuase it went to purchase an asset that in theory can be sold for more then I paid.

 

            Appliances:

fridge

I spent around two grand on some pretty solid stainless steel appliances. I am happy with what I have; they look nice, and work well. These I financed over a year with 0% interest. I did this before with my enormous TV. It’s a way to keep your cash, and pay for them over time. Just a warning, do not miss a single payment, and never be late. The banks that make these uncollateralized loans (GE Money) are not very nice people. The 0% you get it just a teaser, most people do not pay them off in time, and get hit with huge penalties and interest.

 

            Jewelry:

quartz

I recently got engaged and financed an expensive diamond, as well as purchased a ring to put it in. I probably spent a lot more then I needed too, and got a diamond that is of much higher quality then most. She would have been happier with less, but its what I wanted her to have. I financed the ring with a zero percent interest for 12 months Chase credit card. Again a warning to you, this is a really stupid way to buy things unless you know that you can make the payments.

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Posted by fubar1383

GOOOOOOOOOAL!!!!!

May 13, 2009

 

 

180px-Soccer_goalkeeper

 

No, not that kind.

 

            Today is in fact my birthday, I am turning 26. I thought I would take some time to reflect on my financial and professional ambitions. These are a few goals that I wrote up right after college at the start of my career.  

 

 

 

Goals

September 2006

 

Short Term Goals

  • Get my 510 accountant certification  01/2008
  • Apply to Grad School 12/2008
  • Get a governmental professional certification
  • Purchase a Home 4/2009

OR

  • Have 10,000 invested  1/2008
  • Get a 550 on the GMAT  12/2008
  • Set up a Roth IRA     10/2007

 

 

 

Long Term Goals

  • Earn my MBA     ETC 06/2011?
  • Pay off my Home 15 years after I purchase it.     04/2024??
  • Earn $100,000 in 1 year
  • Start my own business
  • Run a marathon
  • Be able to speak in Spanish

 

 

Eye On the Prize

  • Get a truck
  • Get a boat
  • Buy a pool table.

 

 

            So I think I am doing pretty well, I guess I need to set some new short term goals and keep working towards my long term ones. As for the “Eye on the Prize” goals those things would be great, but clearly are just toys, and not assets. They might make me a little happier, but would not help me achieve my long term goals.

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Posted by fubar1383

It’s Not The Money!

May 12, 2009

It’s the Principal!

 

 

 

            Lately I have been running into a few situations where I feel like I have been misled, ripped off, or stole from. None of these situations were enough money for me to get very excited about but it still jerks my chain.

 234px-GiantEagleStowOhio

Giant Eagle: If you don’t know it’s a grocery chain, it usually has stores in great locations, with not so great prices. Because of the convenience I do tend to go there when I need odds and ends. GE is HORRIBLE about labeling the price of their products. Recently I went in to buy some steaks for dinner. They were on a BOGO (buy one get one free) so I picked up two and headed out. The steaks were right next two each other, looked the same, packaged the same, and weighed the same. But of course they were different. So instead of buying one for 8 bucks and getting one for free, I paid $16 for two steaks. This has happened on several occasions with different items rang up at different prices. The problem with me is that I am usually in hurry and it is not worth it for me to make a big deal about it.

 

Work Café: I have been buying my lunch more because I have been buying less food to eat at home because it tends to go bad before I can eat it. The other day I paid with a credit card. The cashier rang up my mountain dew and pizza (healthy!!) and swiped my card twice. Sometimes credit cards don’t get read by the machine the first time it happens, but I kept my receipt just the same and I never keep receipts.  Sure enough on my bank statement there were a charge for 0.67 and a charge for 5.67. So I would chalk this one up to human error, but it is still annoying!

 

Huntington bank: I had a back up back up emergency fund with them. Essentially I was keeping that money segregated from the rest of my funds to use a part of a down payment. Well I bought a house and needed the cash for the down payment. I went to a branch to try and close my account. The teller could not do it, so I had to go to one of their “banking specialist” The tellers were all doing nothing, but the banking specialist had multiple people waiting on him. I was on my lunch, so rather then wait around and be late back to work, I just withdrew almost all the funds.

            A week later I get a call from someone at a branch telling me the funds are low, and to avoid fees I need to convert to a checking account. I don’t want a checking account; I want to close the account. She of course could not help me so rather then paying fees I told her to convert to checking with the intention of closing the account in the near future. About a week later I get a huge packet of docs in the mail, and checks. I did not want checks, but I figure who cares.

            A week after that I go to yet another branch to attempt to close my account. Yet another teller informs me I have to speak to a banking specialist. When I go to close the account low and behold they have charged my account for checks. I told her that was unacceptable and to refund the money for the checks that I did not order. As it turns out she “might” be able to get my $15 back, but I could then not close the account that day. Well I just took my money and left, I don’t like the way that Huntington operates, and I think I will have to write their customer service a letter letting them know that.

 

Should I be making a bigger deal out of these relatively minor disputes?

1 Comment | Banking, Ramblings | Permalink
Posted by fubar1383

The American Car Company…..

May 1, 2009

 

ugly-car2

 

Coming soon, the American Eagle: Produced in the United States of America, by the United States of America.

 

Features:

Eco friendly wooden steering wheel

Top Speed of 42 MPH

Achieves 9 Miles per gallon on the highway*

Explodes on impact with other cars

 

Cost: $1,700,000.00

 

 

*You can increase your MPG by sticking your foot through the “easy collapse” floor and pushing along Fred Flintstone style.

 

            Ok so this might not actually happen, but I feel like we are getting close. The U.S. Government for all intensive purposes has take over Chrysler who has been forced to file for bankruptcy. The Federal Government is backing Chrysler’s lifetime warranties in addition to the billions in loans it has already made.

            Governments are notoriously bad at producing or managing just about anything. So my hope is that with Chrysler (and probably GM) we just let “nature take its course” the company’s will survive, die, or come back minus their unprofitable parts.

            These days we like to assign blame for just about everything, so I will do my best to uphold the Status Quo.  

            Who to blame for Chrysler’s Bankruptcy:

            1. Chrysler’s Management, can they even build a competitive (small) car?

            2. Unions, artificially high wages push costs unacceptable levels.

            3. The Economy, but lets face it recessions happen, Chrysler should have position  themselves to weather the storm.

Comments Off | Cars, Ramblings | Permalink
Posted by fubar1383

Samantha Turns 100,000

April 10, 2009

 

 

250px-2001-2002_mercury_cougar

 

 

      Well I officially drive a “six figure car”. No that does not mean my car costs over $100k, it means that I have over one hundred thousand miles on my 2000 Mercury Cougar, and yes her name is Samantha. I still name my car, deal with it!

            Now it is not the nicest looking car out there, and yeah it has a few problems that show up with age.  But my car only costs me about $40 a month in gas, and $35 a month in insurance. Sure I have to put some money into it every now and then, but it is still loads cheaper then a $350 car payment with pricey insurance.

            I told myself that when my car hits 120k I would allow myself to buy a new one. Well with the purchase of the house, looks like that number is going to be pushed into the 150k range. So until then I will just keep on shifting and hoping that my clutch will make it another two years.

2 Comments | Cars, Expenses, Liabilities | Permalink
Posted by fubar1383

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