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Yesterday, Google opened its ebookstore business. The search giant Joins Apple and Amazon (and noble & Barnes) in a fast-growing field. E-books will never completely replace books of paper, but will make a significant portion - and perhaps even the majority - market before you think.
Naturally, ever more GRS readers are turning to e-books. In fact, I had a couple of people I ask about them recently. For example, Peggy wrote last week to share his experience:
What do you think of Kindle books? Do you have a Kindle?
Our family members are all avid readers. Live abroad and move every three to four years. Books are an important role for us, so we started to reduction during our last movement and retained only those books we enjoy re-reading or have sentimental value.
This year bought us several Kindles, and I must say, that really its portability and that we can travel on R & R and all our equipment of reading in a small container. But when we retire and established, might lose part of its attraction. I also wonder how hold over time…but, I suppose it is too early to speak of.
I am an incorruptible bibliophile. I love the look, feel and the smell of old book pocket. I used to have several thousand books, although I have sold many of them to repay debt. Even so, I have a modest library, and I love. I cannot imagine a world without books.
Having said that, from an Amazon Kindle. I bought one at the beginning of 2009 and used it to little more than a year. When I bought my iPad, I sold the Kindle to a friend. I switched to the Kindle application instead. (For those who don't know, you can download free Kindle for iPad, smartphone and the computer, which means you can read e-books from virtually any web-enabled device application).
Check my account of Kindle, I see that in the past two years, I have downloaded 54 books. Twelve of them were free, but other costs about $10 each. If I had to guess, I would say that half of my book dollars are spent now in the Kindle store.
The pros and cons of e-books
I agree with the assessment of Peggy: is great to have many books in a small "container". It is really impressive – as living in the future. In the extent that e-books help me reduce clutter, I love. But I'm sold are not entirely in e-books, however, a very simple reason: cost. The purchase of electronic books is usually not cost-effective. Not for me, anyway.
Firstly, can only read an eBook on an electronic device. This means that you have to possess the electronic device, which in turn costs money. It is true that most of the people own an iPod, a smartphone, or computer, which means that does not have to pay anything new for an e-book reader. But even so, uses a device costing hundreds of dollars to read a book. And that device is not usually as portable and convenient as a pocket book.
Secondly, e-books are not cheap. In fact, depending on what you read, actually can be relatively expensive. Perhaps to protect the paper book industry, publishers have established what appears to be trafficking in the prices of most e-books.
Here is my assessment after two years of purchase eBooks:
Finally, this is a professional and a with: with eBooks, you can download something you want to read now. The purchase of a book for the Kindle is an almost instantaneous process. The morning we leave for Europe, for example, we were sitting in the plane just before of take-off, when I decided that I wanted to read Eat, Pray, Love. In the two minutes before we are required to turn off electronic devices, I could download the book. It is really that easy. But as I say, it's a professional and one with. They can lead to some friends to buy many books on impulse.
Endnotes
What happens with my own experience reading? Some people prefer the regular books e-books. No. Tiendo became a synoptic reader: I have read several books on a topic at a time. And with non-fiction, I am often a nonlinear - jumping around from chapter to chapter reader. Furthermore, in all the books, I like dog-ear pages and take notes. E-books suck in all these things. Yes, you can add bookmarks and take notes, but is a tedious process.
To summarize:
Part of me who hates things loves the use of e-books.I Kindle application in my iPad often (located on the taskbar), especially for new versions. In fact, as soon as you finish this post, I will spend a couple of hours reading Jayber Crow in the iPad.But believe that e-books are expensive.My Council? Unless you are an avid reader of new books, would avoid the Kindle itself. Continue with the implementation of Kindle free on a device. And carefully choose what books to buy. Frugal stay!
You read eBooks? do you think? does find it convenient? what is you save money? Do cost more than the printed page? If so, is prepared to pay the price?
Photos by goXunuReviews.
This article is about books, alternative, odds and ends
A few weeks ago, I shared a monster list of ways to make more money. These weren’t cheesy chores or slimy scams, but legitimate ways a person could earn extra income if they needed. Most of the suggestions were drawn from GRS reader stories, from my friends’ lives, or from my own experience. They’re ways real people make real money when times are tough.
After I posted the list, though, I had a few people send e-mail or leave comments asking, “Why bother?” They wanted to know why I constantly harp on boosting your income.
It’s been nearly three years since I preached my complete “cash-flow” sermon. Today I’m going to preach it again. This will be review for long-time readers (or for folks who’ve read Your Money: The Missing Manual). For everyone else, one of the core tenets of the Get Rich Slowly philosophy is this simple truth: To build wealth, you’ve got to spend less than you earn. It all boils down to cash flow.
Cash flow basics
If cash flow sounds like an accounting term, that’s because it is. But don’t let that scare you — it’s easy to understand. For any given time period, cash flow is what you earn minus what you spend. I call this the fundamental equation of personal finance. When written as a math formula, it looks like this:
Simple, right? That’s second-grade math. But don’t let the simplicity fool you — this is a powerful concept. This formula tells us two things:
For example, if your income is $4000 per month and your expenses are $3500 per month, you have a positive cash flow of $500 per month. But if your income is $4000 and your expenses are $4500, you have a negative cash flow of $500.
The greater the gap between earning and spending, the faster you build (or lose) wealth. This may seem obvious, but smart personal finance really is this simple. Everything else — clipping coupons, saving for retirement, asking for a raise — is done in support of this basic idea.
The power of positive cash flow
Now, if you’re like most people, when you begin to realize the importance of smart personal finance, the first thing you do is focus on finding ways to cut your spending. This is great. Frugality is an important part of personal finance, even for those with high incomes.
Let’s say your monthly income is $4000 a month, as in the example above, and that your monthly expenses are $4500. You have a negative cash flow of $500, and it’s been that way for years. As a result, you have maybe $20,000 in debt, but that debt is growing by $500 every month.
By making some changes, you find that you’re able to drop your expenses to $4000 per month, which is exactly equal to your income. Your cash flow is zero now, which means you’re not taking on any more debt, but you’re not gaining any ground, either.
You go back to your budget and decide you can make some serious sacrifices. You give up cable television, plant a vegetable garden, and start taking the bus instead of driving to work. These sacrifices (and others like them) allow you to trim another $500 per month from your spending. You still have a monthly income of $4000, but your expenses have dropped to $3500, giving you a positive cash flow of $500. That’s $500 a month you can use to pay off your debt. At that rate, you’ll be debt-free in 40 months.
Note: Of course, if you had no debt, you could use this positive cash flow to save for retirement and other goals. Positive cash flow is a requirement to get out of debt and to build subsequent wealth.Why your income is so important
The above numbers are just a convenient example. In real life, things aren’t always so simple.
In fact, I’ve heard from many readers who say they’ve cut all of the fat from their budget, that there’s nothing more they can give up, and they still can’t make ends meet. I also hear from readers who have a positive cash flow, but it seems like a pittance compared to their debt or their savings goals. Sure, they generate an extra $100 over expenses each month, but they have $50,000 in debt. At that rate, it’ll take more than 40 years to become debt-free!
It’s in situations like this that boosting your income becomes vital. Remember, there are only two ways to boost your cash flow: increase income or slash spending. If you’ve already slashed spending, your only option is to increase your income.
Let’s illustrate with an extreme example. Pretend you’re magically able to survive without spending any money. Your bare essentials — food, clothing, shelter — are provided, so your base costs are nothing. If you want to save for the future or enjoy conveniences (hot water!) or luxuries (a pillow!), you’re not going to be able to afford them by cutting costs. (Your costs are already nothing!) The only thing you can do is earn more money.
Another advantage to boosting income is that — in theory — your earning potential is unlimited. You’ll never cut your costs to below zero, but you can continue to increase your income in lots of little ways. And even after you’ve paid off your debt, extra income can help you build the life of your dreams.
Income is the gateway to wealth
So why do I harp on boosting your income? It’s simple, really.
I know several people I’d classify as wealthy — including the real millionaire next door. Not one of these folks became rich by pinching pennies. Each readily admits that frugality helps them keep the money they earn, but to actually get the money? They had to boost their income somehow: starting a business, working long hours, or taking risks in the stock market.
Yesterday’s reader story illustrates this point perfectly. In the comments, Jacq explained how she managed to save enough to become financially independent at age 45:
I got pretty aggressive on the income side of things. It wasn’t so bad because I saw it as a finite period of time, not something I’d have to do for the rest of my life. This past post on GRS could have been written by me.
My story is similar. Just a few years ago, I was deep in debt and falling further behind. Today, I have a very comfortable life. Honestly, I feel wealthy. Yes, I had to develop thrifty habits in order to take control of my finances. But what really really helped me become debt-free was boosting my income. And since becoming debt-free, I’ve managed to meet many of my goals (traveling to Europe and Africa, for instance) by finding ways to make more money.
So, this is why I’m so adamant that your earning power is important. Your income and your expenses both play key roles in determining your financial fortunes. Increasing your income makes you rich; slashing your spending keeps you that way.
This article is about Basics, Entrepreneurship
If you were building their wardrobe from scratch, how would you do? Would prioritize quality? Would emphasize cost? Or there is little happy balance between the two? That is what you want to know GRS reader J.D. author. Writes:
I am a 40 - something guy who has lost 40 - something pounds over the past year. It's a good thing. But now my old clothes don't fit. As frugal fellow, this creates something of a dilemma. How to rebuild my wardrobe by keeping an eye on costs?
During most of my adult life, I dressed in what I would call to modern slob. Or perhaps casual Geek. My Cabinet composed of jeans, t-shirts and sweatshirts, most of which were bought at Costco and local savings shops.
I am thinner, I'm more interested in dressing well. In other words, I want to look nice, and not as I am not an issue. It is not necessary to buy a suit, but I would like to learn how to buy affordable fashion clothes classic. I don't know where to begin.
First, you can stop refer me same third-person. (It's like an episode of Seinfeld evil or something). Then you can discuss my concerns.
Actually I have something of a crisis of costume. Downstairs in the living room, I have a lot of clothes that no longer fit. I am gradually giving these to friends and family (and will donate the rest to charity), but in the meantime there is little left to wear. It is not necessary to rebuild my closet for size was before my project costume, but I would like to have some essential aspects. Right now, I do not dress shirts that fit. And not wear pants. And not turtlenecks. And no jeans.
I could go shopping at the local mall, I guess, but that is so not me (and many levels). I tried to buy some new clothes at Costco, but I don't like the adjustment and fashion now offer. Let me with stores of savings, but it is an imperfect solution. Leaves me perplexed really on how to build a wardrobe on a budget.
Affordable fashion?
Lately, curiosity, I've been reading magazines such as GQ, and Esquire. I did this in 20 years. (And once you pass this spell, likely to be another 20 years before they collect them new). While entertaining, there are a couple of problems with modern fashion Howard:
It is certainly a balance to be taken into account. There should be fine clothes available at reasonable prices, especially for people like me that does not give an iota of labels. I will just quality. (and though it pains my frugal nature, I'm willing to admit that perhaps paying slightly more for quality worth it.)
Cost quality trump?
For example, recently I bought a t-shirt for sale at $45 REI icebreaker merino wool. I felt guilty for this day (because it is three times what normally would for a t-shirt), but then took during our trip to Europe. I loved it. The t-shirt that he felt great, but best of all, never stank - even after they wore a straight week. (No joke). If this t-shirt says wear, it will be worth $45 in my book, and I already not feel guilty by buying it.
But I am not willing to spend $45 each in a drawer full of t-shirts. A crazy, right? In addition, I am not prepared to discard shopping savings. Can I buy great things there for cheap. Last week, for example, I went shopping with Kris and his sister store savings. I was giddy to find one of my favorite shirts: one I've purged because it is too large: in the midst of size. For five of the bucks. (Then found two more of the same company that I picked up, too.) And yesterday, I bought a couple of pleasant appearance of $6 in another store savings nombre-marca corduroy pants.
If shopping savings are so great, why not use it exclusively? Well, are a great way to complement the clothes that have already, but it is difficult to use them to build a wardrobe from scratch. Their is…random selection. And there is no coordination between styles.
Help me help myself
So, dear readers, I need your help. I say: how you find affordable clothing? if you were building a wardrobe from scratch, where starts? Is it possible to do using only stores savings? Is prepared to pay more for quality? How much more?
Finally, can recommend me any websites of dressing well? (I'm especially interesting to learn how to dress well on a budget). Or should perhaps forget nice-looking and only to become a modern slob again!
This article is about the budget, alternatives, clothing
This post is screenwriter Sierra negra. Sierra writes about frugality, sustainable living and get their children to eat kale in Childwild.com.
The cold season is upon us. If you live in North America, probably has at least a couple of cold nights so far. In my neck Woods of the - in the Boston area: we had our central heat that runs for a few weeks. This means that we are in full swing winterizing, to maintain heating bills low.
In recent years, we have gotten really very good on this. New England winter heat can consume a large part of the family budget. Our heating are used to run more than $500 a month; bills last year, we had them up to $250 or less. This year, I am willing to go even lower.
No, we do not live in the refrigerator. Our House is quite comfortable year-round. Here is how we have bills low.
Invest in isolation and efficiency
Small changes can have ripple effects, but major changes worth even more. Last year, we had our walls isolated with blown cellulose insulation. We also replaced our 40 years of age with a system of high efficiency natural gas oil burner.
These home improvements aren't cheap. Because they are good for the environment, as well as your budget, however, there are often government grants and loans available to help make them more affordable. We have no savings to do this, so we take a loan from 0% of the energy efficiency of our state program. Loan payments are much lower than the immediate savings on our heating bills. The update is already paying for itself and will continue long after that we paid for this loan.
Of course, I used to lower heating bills savings to accelerate pay my debt of greatest interest. Not normally suggest to take a loan as a step towards health financial, but in this case clearly we saved money. Also helped to reduce the environmental footprint of our whole home.
Apart from its system of heating and insulation of the House, you can think about their Windows Update.
To find out what investments auto pay, you can schedule a free through your utility company energy audit. You can send someone to your home that walking through the House and provide a full report on ways to save energy and money. When we had our done, the nice young also replaced all our bulbs with fluorescent compact, free of charge.
Package up
There is no need to keep your home warm enough for t-shirts throughout the year. Make sure that you and your family have good warm clothing, comfortable and do not fear fears to use it.
When he was 21, I had a roommate who turn the thermostat down way and walk around our House cold wearing a winter hat and grabbing a hot cup of tea. At, mocked him with my friends as we lounged around of its lounges, toasted. I have now become the roommate. I am always reject the thermostat and telling the children to put on a sweater.
I don't want anyone here feel cold: I hate to be cold I - but I've learned that wearing warm clothes is a cheap and easy to maintain friendly way. Best of all, you can create your own personal heating zone. Don't like it so hot? Take off a layer. There is no fighting with your spouse about how warm to keep your living room.
It is not that we maintain frÃgida. I set our thermostat in the middle of the 1960s during the day and get off at night when we are all tucked in hot beds of all modes.
If you do not have one, get a programmable thermostat. Make it easy to automatically adjust the heat the different hours of the day. Don't have to worry about remembering to do - only happens.
The camera package too
Not only package yourself. Add layers to your House will make you feel more warm, even if the thermostat is maintained at a moderate temperature. I have a nice collection of oriental carpets set at this time of year, what keeps hardwood floors warmer in little pies descalzos. This is essential because young children lose their socks at a staggering pace, but it's great just to give to the room throughout a warmer feeling also.
Also fitted window plastic and insulated curtains to reduce consumption of drafts for Windows. If you've already spend a few hours goes around your Windows and doors with some PuTTY project-sealing or caulk will make a big difference for your home comfortable how is in the winter.
Use heating zones
Most likely, you are not using every part of your home all day long. If you live in a modern House, probably already has several "heating zones" by what their thermostats for different temps in different areas can be scheduled.
If you live in an older House like mine, you probably have only a thermostat that controls the entire system. This means that if is 64 degrees in my living room, heat kicks in. If it's 65, heat is turned off because it is hot enough. No matter what is the temperature in the rest of the House. There is no way to ensure that the heating system knowing it.
To resolve this problem, I created a lot of "hot zones" in my house. To keep the bedroom doors closed above and hanging curtains down corridor doors, cut our drafty hallway and stairway in the heating system of completely. Only now have radiators in every room heating rooms, not those rooms plus several hundred square feet of space aisle largely unused.
I was shocked at the difference of this done how heated the House felt. Hanging curtains to keep the heat in the rooms and outside of the corridor is the novelty of this year: I only did a few weeks ago. I do not know for months even if worth in heating bills reduced or not. But the convenience factor was immediate and obvious.
Another change I made heating zone was my workspace. I am the only person House almost all day, and spend most of the day in my Office. Instead of keeping the entire House roasted, I downloaded the temp in the main thermostat and set up a my office space heater. In this way, I will be as warm as I like without losing much energy heating empty rooms.
What you do to keep your heating bills low in winter?
Photo by Net_Efekt.
This article is about frugality, House and home
This post is April Dykman staff writer.
When I was a freshman at University, I did two very bad things (ahem: two bad things related to personal finance).
The bad news # 1
First, I opened a VISA credit card. Had a guy in a booth in the campus, and being too naive and shy to tell buzz, stopped and listened to their Stadium. The next thing he knew that it was filling out an application. 
To 18 years of age, unemployed, constant income or credit history now had a line of credit of $1,000. I surpassed him out in less than three months and was surprised when it came Bill.
Fortunately, was about to start a part-time job, so I was comforting to know that could handle myself to this predicament. I have paid for balance, but then charged up new. This cycle lasted for years. I always pay more than the minimum, but never paid off the debt.
The bad news # 2
The second thing I did badly was opening a store credit card with a major retailer. I was about to pay for my purchase (with the VISA referred to above, of course), and the seller told me could save money and receive special offers and free items just for signing up for a card. Nodded, but she was persistent. "You can pay as soon as you get home and still get coupons and discounts," he said. "That's what I do."
Unfortunately, not working well for me. I forgot he had opened the card, somehow lost the first draft of law, and then was late with my payments. I was delinquent almost three months before the paid card, and I got a check in my report of credit, all for a small balance that could have easily covered by money in my bank account.
The cost of the store credit cards
Teller machines often have to ask customers to sign up for store credit, and some stores requires it to meet a quota for the new card sign-ups. But these days, politely tell the cashier, "I have not the store credit cards." If they persist, I repeat that I myself. "Do you not want save 10 per cent?" No thanks, I would rather not.
A recent study by the Office of the representative of New York Anthony Weiner provides even more reason to avoid the store card brand. Study found that 35 stores in New York had an average rate of 23.83% on store cards (the national average APR for a regular credit card is 14.78%).What stores offer the worst rates?
Radio Shack was highest with a APR.Best 28.99% buy and Staples charge 27.99% interest rates.Home that accused Depot 25.99%.Sears was a hefty 25.24%.Addition, the report found that you using cards store trafficking in a series of "teaser" to attract buyers to take the bait, such as offering 0% interest, but does not mention that settle the balance within a period of time or otherwise the interest rate is applied retroactively in the initial purchase price.
Are everything is bad?
The mark on my credit report has been left behind, but was a sobering lesson about the dangers of credit, especially for someone with little education personal finance (or income). When I graduated from high school, I could easily find the limit of a function as x approaches a constant, however, did not know about compound interest. My personal finance education began years later, when I started that lurk here in GRS.
I've not been credit card balance in years, and I consider myself a reformed and responsible consumer. I am also not completely for store credit. If you were to remodel a House, for example, perhaps consider card from Home Depot for the initial discount. Then it would cut the card and pay the balance immediately (as in the minute I have House) with cash that was saved in a savings account from the "clean house".
I fully account for the majority of the readers of GRS is experienced with your credit, but as stores ramp up their releases high-pressure holiday, it is important to be on our guard. Generally speaking, these cards not worth the risk or annoyance. The credit is seriously, not something to sign by the heat of the moment without reading the print fine
This article is about credit cards
A few weeks, is simply too much to write about. This is one of the weeks. [Note that I set the painful typo, no need to say anything new!] Not only is my brain percolating with my own ideas for articles, but internet is strongly with interesting stories about personal finance. Pity the blogger with a ton of footage!
Instead of time waste with a long introduction, I will jump in full. Here are some recent articles that Folks you sent me, or I've found from my own navigation through the web:
At the beginning of this week, I sang the praises of index funds. If you are interested in index funds, but don't know where to start, can be considered transferable funds or ETFs. Almost all ETFs are index funds, but are traded like stocks. Confused? Kiplinger has an informative article about how ETFs work for you. This is not only one piece wind light; contains solid information.
Elsewhere, lovable Curmudgeon Warren Buffett is the new. You have a talent for making Liberals and conservatives angry. In this case, that Buffett says that the rich should pay higher taxes. "Taxes for the lower and middle class, and perhaps even the upper middle class should even be probably cut," Buffett told ABC News. "But I think that people in the high-end: people like me - you must pay taxes on much more." "You have best of what we have."
Then reader GRS Brendan Quinn sent me a link to the presentation that recently gave to colleagues at Boston College. In his talk entitled your money: buy Anything You Want, guilt-free, Brendan covers what he calls three rules of personal finance:
Spending less than earn.Make has work for you.Prepare for the unexpected.I think it is great to see students to take the initiative to teach others about of financial literacy. Great work, Brendan!
Last week, The New York Times published a story about Nick Martin, who inherited from $ 14 million (10 million after-tax dollars) in 1998. "But as so often happens to those lucky to realize the American dream of sudden riches," writes Geraldine Fabrikant, "money slipped on the Martins fingers faster than they ever imagined." I used to make fun of people who squandered sudden riches like this (and there are countless similar Tales), but lately I'm more sympathetic. As flexo consumer comment wrote about this story, "is easy to be subjective." The Internet is a place where you feel comfortable armchair quarterbacks. Very few people know what would happen if the same situation: an unexpected extra - occurs to them. "
Finally, there are two recent articles USA Today. Cindy Perman has a long (and controversial) piece on Americans die with debt. Many boomers have little saving for retirement. But more than that, the article reports that "nearly 40% of retired Americans said that they have accumulated in his later years - credit card debt and aren't concerned about paying off in his life". In happier news, here is a short piece of a man homeless Arizona who returned a backpack containing $3300 effective and a laptop. It is now an impressive history.
There are lots of other great stories from my stack, but this is one of the largest "spare change" raids I never published. We will call this good by now.
This article is about the spare change
This is a post guest of Robert Brokamp of The Motley Fool. Robert is a Certified Financial Planner and Advisor retirement from his service in The Motley Fool rule. He contributes a new article to Get Rich Slowly every two weeks.
Everyone is looking for safe investments these days. Unfortunately, there is a price for security: low yields. A certificate of deposit of five years at a major bank as ally pays only 2.4% now today and five treasure just produces 1.5%.
But one investment offers superior performance and has the added advantage of keeping their costs of retirement under: payment of your mortgage.
What is the "return" of that investment? At the high-end, is the rate on your mortgage - that is if not detailed and therefore cannot deduct the mortgage interest when you file your tax declaration. Since the majority of taxpayers not listed and with the existing rates mortgages more landing from 4.5% to 7%, "return" pay out mortgage appearance quite well.
What is the return if you deduct the mortgage interest? Here is the simple rule of thumb: convert a decimal number tax bracket and subtract you 1 and then multiply that number by your mortgage rate. That may sound complicated, but is not. For example, a return someone in support of 25% with a rate of 6% mortgage tax win 4.5% after-tax. Still not bad.
But there is an extra benefit of paying off the mortgage of outside kiss the boss: you have lower expenses in retirement, so you need less income. The less income you need in retirement, investment less you have to sell and the less money you have to remove account of deferred taxes. This will keep your invoice from lower taxes. It could also means less of your social security benefit may be subject to tax. It is therefore reducing your expenses retirement in all kinds of ways.
Weighing the pros and cons
Therefore should you send extra payments to your lender in order to pay your mortgage before? First, consider the benefits:
On the other hand, some conditions guarantees to keep mortgage therefore time as possible:
Who should pay?
The first financial to most people's priorities should be paying credit cards and other consumer debt, retirement accounts created a Fund for emergency and max favored by the public prosecutor. But once you have taken the care, pay off the mortgage early is worthy of consideration.
Conservative investors and their relatives withdrawal might even pay off the mortgage to contribute to an IRA or 401 (k), provided they are not experiencing a pattern match.
If you are younger, mathematics is more in favour of keeping the mortgage, because it may invest in long-term investments that are more likely to exceed the rate of your home loan. Come and enter retirement, your portfolio must become more conservative, which means always winning 4.5 to 7.0% isn't something safe, at least not in the current interest rates.
We all want to be financially independent in retirement. Conceptually, the debt is just the opposite. It is not impossible in duty someone money and even retire. In fact, is the case for most retirees. But if you are looking for a secure way to improve their prospects for retirement, especially once you have exceeded the retirement accounts, pay your mortgage is a sound strategy.
This article is about choice, debt, the camera and the Home
