Financial Checklist

[RainDog]

okay, those of you who are saavy... help out those of us who aren't with some basics.

I think some things are basics, no matter what the economic future, but can you all list things which you see as wise for the person who wants to put his or her house in order?

I'll start with my basic info-

1. get out of debt, esp. any debt which is financed via adjustable rates. (because interest rates are gonna rise, if they haven't already.

2. if you can't get out of debt, consolidate via a fixed rate loan from something like a credit union (because they reinvest in your community.)

3. Diversify any savings/investments you have, making sure you have some cash on hand at your house for any short term emergencies (like a snow storm or a natural or manmade disaster.)

4. Considering number 3, have on hand some potable water, some canned goods, things like antibiotic ointment, aspirine or ibuprophen, etc., multi-vitamins.

5. Continuation of number 3, maybe? If you have money to invest, invest in something REAL. (I assume books count as real, btw..even though they are made of paper, for the most part

6. Look at ways to make your dwelling more energy efficient. Simple things like awnings over south windows, caulking, planting shade trees on the south or west sides, planting evergreens on the north side as a wind break.

more 6. put a rock in your toilet to use less water. use shower water to water plants. do not let water run while you brush your teeth. wash clothes only when you have enough to fill the machine. dry clothes outside when possible...you can fluff them in a dryer for a small amount of time, smaller than the time to dry them.

7. Learn how to garden and get some veggie seeds...preferably some heirloom seeds, not the "brand name" kind, to maintain genetic diversity and to ensure that your garden won't be knocked out by having all the same sort of thing if it gets attacked by a pest or you have usually bad weather, etc.

along with 7, recycle your veggie waste in your garden, recycle your newspaper (non-glossy pages) in your garden by shredding and using it as mulch. do not use pesticides on your yard, and use your grass clippings and leaves to build your garden soil, too.

along with 7, learn which plants have medicinal qualities and plant some of these as landscaping (willows are the basis for aspirin, coneflowers are eschechia (spelled that one wrong), flax seed is a good source of omega 3s, and on and on...

My checklist is pretty simple, I realize, not big money, just ways to live or learn to live which have a bit of sanity involved. but those are the things I can think of right now.

[Sir_Shrek]

1. Cool....

I love personal finance.

Basically, I look at this way: debts and retirement are primary, cash reserves a strong second, investments third. That list is going to change wildly, and there are a lot of buts, but here's my general philosophy:

1) Debts and retirement: Credit cards debt are absolutely the first to go. Things like student loans, mortgages, and car loans don't necessarily need to be paid off faster than term (and actually shouldn't some will tell you). But credit card debts should be the Ace of Spades in your financial deck (hehehe). You should also be saving for retirement, putting away as much as you can and maxing out as many accounts (IRAs, 401(k)s) as you can afford to.

2) Cash reserves: These should also be important. Standard cash reserve should be 4-6 months worth of money that you can get to easily (savings accounts, money market accounts, under your mattress, whatever). You should only touch this stuff in the event that you lose a job or whatever income you use monthly.

3)Investments: Once you have the biggies in order, you can start focusing on other investments like stocks, mutual funds, etc that may not necessarily be used for retirement or other things.

WILDCARDS: Obviously, paying for college (for children) is a biggie. For some, it will be solidly in the top three. Long term care is also another big deal...depending on your age and health.

As for your ideas about toliets and shade trees, I'm not sure that those can have a major immediate affect on your financial situation. I pay $14 a month flat for water, regardless of how much I use. I'm more in favor of cutting out superfluous things...cable TV, eating out, brand name items, and any other kind of luxury that you can live without. Some people pay $60 or $70 for cable a month.....yet watch the local channels as much or more than the cable channels. A Lexus is just a Toyota with different badging. Another thing you can do is not spend coins...let it accumulate and cash it in every month and stick it in your cash reserves, mutual funds, etc. I get about an extra $300 a year saved this way....that would've bought two months worth of groceries for me, and yet I don't even miss it.

[RainDog]

2. the later things on my list

are "dual-purpose" issues-- save water...and you can save some money (and I have two children, and believe me, they can use a lot of water...)

the same with veggie gardening. with agri-biz, there is less and less genetic diversity. if we as a nation were faced with a disaster, this lack of diversity could result in major problems since evolution seems to show that pests also end up with some mutations which can attack certain species, and the fewer species you have, the greater that risk of a problem...that's a "dual-purpose" issue too...save money by growing your own groceries, and save the earth by maintaining genetic diversity via heirloom seeds...and you can end up creating new varieties which work best for your environment by accident, too.

...and as my financial situation has been pretty crappy lately, I also think about ways I can simplify and live in a more sustainable way...and try to teach my kids to do the same.

but, yes, we all decide ways we want to spend vs save money.

I rent movies for free from my local library. Same thing with cds. But I buy books..

[Sir_Shrek]

3. A thing about investments....

Don't view simply buying something as an investment...it's not. An investment is something you purchase for the purpose of making a return. Buying a book from Barnes and Noble is not an investment...buying stock in Barnes and Noble is. I only bring this up because, though it's a minor point, it made a huge difference in how I viewed buying, saving, and investing.

[RainDog]

4. Yes, I know

I collect out-of-print and hard to find books, which I get at yard sales and library sales, etc...I pay anywhere from nothing to ten cents to a dollar or two for most of them.

I only buy from Barnes and Nobles when I find a first edition of something which is collectable and which is also on sale at at least 50% off, if not more, with no remainder marks, and if it's a publisher, not B&N imprint.

[RainDog]

6. ...and one more thing...

I collect these with the intent to sell them both in my own store and online.

The owner of the store where I was working has told me that she wants me to carry on her family store...which I would be happy to do, if it's affordable, and if the economy (and her terms) make it worth it.

I do not want to compete with the big bookstores. Rather, in a small store, you have to offer "boutique" services...the biggies do not carry books which have small print runs, for the most part, even when those books are important (think like City Lights when they were first publishing the Beats...now those books are collectors items...that sort of thing is the way you can be in biz against the corp. bookstores.

...along with used and out-of-print books, which they do not carry.

in addition, a local store can do community events that the corp. stores cannot do, or don't bother to do.

[Zo Zig]

12. How about a listing of your wares?

Looking for:
1966 copy of "The Hobbit", with the cover jacket, good condition, cheap if possible.

My tip, spend no money.

[RainDog]

13. Wish I had one of those...

because originals go for about 200 bucks...and listed up to 700.

but you can get a reprint of that version, with that cover, still in print...if you're only looking for a copy with that version of the text, rather than a book to collect.

I can get you one of those if you want me to, but you can probably get it cheaper if you buy online from a corp. bookstore.

I'm looking at a guy's collection of kid books soon-- waiting for him to get back to me-- but don't expect to find that one among them. His books are for younger kids, I think.

as far as my wares...I'm working on a database to put online. I'll pm you, if you want, when I get there.

I have a 1953 edition of The Long Goodbye in HB with a great dust jacket illustration...

or a pb copy of Agee on Film in good condition (actually, better than good...)

...or Buffy comix,

or an arc of The Confusion, the second book in Stephenson's Baroque Cycle...due to be published in April 04...

[CaptainClark23]

5. Investment definition

Your point re: book purchasing not qualifying as an investment is well taken. I would consider, however, the type of book that has been purchased. If one buys a book on backyard gardening, or installing alternative energy sources, or the like, I would consider that as an investment in knowledge base. That knowledge base could be counted towards establishing a more efficient infrastructure and operating methodology which would gain its own financial returns.

[RainDog]

7. There are also books which worth more than their list price

and books which, as mentioned above, you can buy at a steep discount and still sell below list price and make money.

those are two ends of the same market, and they are a market the corp. stores don't do.

I get books autographed when I can, to increase their value, as well.

[bemildred]

8. I like your list.

Some other ideas:

Hand tools and utensils, not electric, especially not
battery driven. If you are really into the collapse of
civilization, a good set of bolt cutters and a good supply
of cutting tools is in order. Chain saw too.

General back-yard mechanic and home-handyman skills
are useful and barterable.

Old cars you can maintain yourself, or no car at all.
General small engine repair skills are good.

Likker, tobacco, tea, coffee, other barterable "foods".
Useful, cheap, multi-purpose OTC drugs like aspirin, DiPhen,
antiseptics, antibiotics, cortisone cream, etc. The comment
about small arms and ammunition are correct, too.

Chickens, rabbits, and goats.

Several big, strong, dumb helpers that don't eat very much.

Get the Hell out of the city, if you are in the city.

Henley's Formulas is fun to read. So are old "Whole Earth
Catalogs".

[abelenkpe]

9. whats wrong with the city?

[RainDog]

16. cities are consumption oriented

and would be hard put to become self-sufficient, much less production oriented of anything that has "innate" value at this point in time.

think about most of the jobs/services which are generated by cities...

lots of "financial services" and biz management sorts of activities.

all the cities which used to be hubs for manufacturing seem to have been hard hit by the outsourcing of production to other nations. The blue collar middle class has taken steady hits over the last decade plus. Their jobs were concentrated in union-protected manufacturing.

I live in a college town surrounded by rural areas. By this you have the production of an educated population, plus the production of basic things like food.

If, for any reason, there were a disruption in the grid, in the transport of manufacture of basic goods, a place like this is more likely to survive with less disruption than a large city with food production areas much farther from people.

[bemildred]

11. Mainly, it's expensive.

Autonomy and independence require a low cash flow, unless
you happen to be filthy rich already, in which case you are
most likely not thinking about these issues much, or possibly
you are building your own off-the-grid bunker in Idaho.

Cheap and/or free land is good if you want to farm, garden,
or run critters, too.

Also, if things get ugly, in the cities, there will be a lot
of desperate people running around, many of them with guns.

[RainDog]

14. off the grid

my pov is not about the collapse of civilization...though, each day Bush remains in office...

but I am more interested in ways to "get off the grid" and be as self-sufficient as possible.

a guy I know wants to work with me, also, to become both energy self-sustaining, and also able to sell energy to neighbors...and be able to sell this to others in my area...the guy does construction, was a bio/eco major in college, and the combination of his interests and mine coincide in this way.

I've talked to other people in construction in the area, and they are also interested in the idea of "retro-fitting" existing bldgs to be energy independent while still maintaining historic facades, or the aesthetic of other bldgs.

...I think this idea is a great way to "beat" the Bushies and be a good citizen.

My local electric company has an agreement to energy average, so that when your meter runs backwards, you can average your consumption and pay according to real usage.

btw, my city just made the debut of a "soy powered" bus. so I'm lucky that I live in an area interested in these sorts of issues in practical terms.

[bemildred]

19. Collapse of civilization

Not my POV either. I'm not convinced I want to hang around
in that scenario in any case. Self-sufficiency and personal
autonomy is more of the idea. But I enjoy thinking about
things, and it seems obvious that change is coming, even if it
is far from clear what sort of change it will be.

You are right about small to medium college towns. I like towns
where the dogs sleep in the streets myself, but they are much
chancier as far as social environment and require a very high
level of self-sufficiency.

And I very much like low-tech, low-maintenance, low-cost, and
low-depletable energy approaches to living. It's amazing what
you can do with a bit of insulation and by paying attention of
what windows are open and closed etc. etc. People get so used to
running their lives scheduled out to the minute by clock time in
artifically stabilized environments that they don't realize there
are any other approaches, they forget how much of that crap can
be done without, and they forget what it's like to have a afternoon
with a million things to do, none of them mandatory.

[RainDog]

20. energy independence

Backwoods Home has a cover story about a 3000 sq ft home which is energy self-sufficient. Uses solar panels and fuel cells/batteries...

it's interesting.

I don't need or want a home that large, but it's wonderful that such a large dwelling can be built to be energy efficient and still look really good...and it makes me wonder why companies which build new subdivisions, for instance, don't include such a thing as part of a package to offer to people who are building.

It would be so simple to do this.

That's the sort of stupidity that irks me about Americans.. they act it's some sort of imposition to do things which can be so beneficial.

Makes no sense. If you're going to build, why not do it in such a way that you make the least impact on an environment, and help people save money for future housing costs..

[happyslug]

10. One point on Debt Consolidation

If you can do NOT convert dischargable debt to non-dischargable debt. In Bankruptcy most debt is dischargable EXCEPT FOR MORTGAGES or any liens on Property. Thus in Bankruptcy you can keep you home if you make the monthly mortgage payments (providing your equity is $15,000 or less in the house). I have had many a client who consolidate their debts into a Second mortgage on their home. Then they had another financial problem and could make the first mortgage but not the Second Mortgage payment (and lost their home).

The disgusting part of the above situation is that had the debt consolidation NOT occured, the non-consolidated debts were personal loans NOT liens on the home and thus dischargable in Bankruptcy i.e. had their declared Bankruptcy instead of Consolidating, the debts would have been discharged and all their would have had to keep payments up on would have been the first mortgage on their home.

Such "Home Equity" loans have been a blight on low-income home owners for about 15 years now. Instead of seeing a lawyer who would direct them through Bankruptcy (and keep their home) their take out a high interest debt consolidation loans. When they later can not make the payment on the loan, they lose their home.

Just warning, if you do consolidate make sure it is in your best iinterest NOT the best interest of your creditors.

The above may reflect my practice which is for low income people, but it is still good advice for anyone thinking of debt consolidation.

[RainDog]

15. interesting, important point

I was thinking about people who have debt on cards, but are not going to fold because of..

I'm lucky because I have no debt and plan to keep it that way. Of course, I also had to sell my house to a family member to be able to live where I do and survive for the moment, but that's another issue... but this enabled me to allow my kids to remain in their house, which has been important for them.

my family member happens to be someone who likes to invest and can afford to, and property values in my particular area have not seen the hit that other areas have b/c of job losses...at least not where I am, though manufacturing has been decimated where I live over the last few years thanks to outsourcing.

But there is also a building boom going on where I am, in both single family and multi-unit housing, so who knows what that will do to values in a few years.

On the other hand, rents are way overpriced here, relative to salaries, because of a captive market of renters with a "migrant" student population of 35, 000.

[mastein]

17. Don't forget insurance

One thing you left out is to insure what you have. Even if you live in a dinky little apartment, get a tenants policy. Insure vehicles as fully as is reasonable. I have carried full auto coverage even on cars worth less than 2K just for the convenience if you are in an accident. Also, if a true tragedy hits (theft, fire etc) your monetary loss is limited to your deductible, and you can worry about the more emotional issues associated with the losses you take, as opposed to taking the loss and having to deal with the monetary and emotional aspects of a loss.

[RainDog]

18. and insure at replacement value for certain things

I don't think that applies to something like an older auto, but definitely is part of what I'm involved in with older books..