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For What It’s Worth

March 12, 2005 by Neville

Res tantum valet quantum vendi potest

This is a Latin quotation which translates to: “A thing is worth only what someone else will pay for it”

I have this quote posted on my wall upon the advice of Burton Malkiel in A Random Walk Down Wall Street. I am attemting to sell condos this weekend, so I must keep this in mind.

Savings

March 11, 2005 by Neville

I am in an Asian Studies class, and we have recently been discussing savings habits in Asia. I’m not sure about the recent facts, but many Chinese families save anywhere from 30% to 50% of their income!

This article shows that most Japanese households save roughly 29% of all disposable income.

Could you for one second imagine if EVERYONE in America saved 30% of disposable income? After the economic bubble burst a few years ago, layoffs would not have hurt as much. Most people would be able to stop working for several months while they find new income streams. Many people would be able to live 6-12 months soley off of “rainy day” accounts without having to touch their longterm savings or children’s college funds.

Savings allows your money to pile up, and if you do not properly manage the urge to splurge, you will end up blowing it in all the wrong places.

I will only spend money on something if I can truly afford it. If something costs $1,000 I can obviously afford it (look to your right). BUT…Notice I do not have $1,000 in my designated spending account. Therefore, I will not buy the product even though I am capable of it.

Too many people THINK they can afford something just because they currently have the money to buy it. Wrong!

Top Ten Money Blogs

March 11, 2005 by Neville

According to Yahoo Finance, these are the Top Ten Money Blogs Everyone Should Read.

1. MyMoneyBlog
2. PFblog
3. Neville’s
Financial Blog
4. Savvy
Saver
5. The
Budgeting Babe
6. FinanceProfessor.com
7. Consumerism
Commentary
8. Maxed
Out Generation
9. It’s
Your Money
10. Frugal
For Life

Hmm..Yahoo Finance thinks everyone should read us. Looks like we’ve tipped an iceburg with the Personal Finance Blog!

Does Adsense Make Sense?

March 9, 2005 by Neville

Well, judging from the comments, it seems people like Google Adsense slightly more than I do. Apparently I could make around $50 to $70 a month based on my site traffic (some sources I got elsewhere seemed conflicting), but I still will not partake in the program.

This blog was made in order for me to track my financial goals and track my progress, making money off the site would taint that. I know I would constantly check how much money I’ve made, and start making more posts that appeal to a broader audience if site traffic dictated how much money I make.

I generally wouldn’t pass up an opportunity to make an easy $50 per month, but this time I’ll let it slide! For all you bloggers who do use Adsense, I’ll continue to give you a click on each visit :-)
Might as well help spread the wealth!

On another note, I go back to Houston on Friday where I will be selling some condos over Spring Break!

Google Adwords

March 9, 2005 by Neville

I’m a big fan of blogs which I can take some information away from, but one thing I’ve noticed is the very annoying presence of Google Adwords. They look disgusting, clutter the page and make it known the author wants some money for their blog.

That may be a harsh review, but I’d like to ask anyone who uses Adwords: How much money do you make off them per month? Also, how many clicks equate to what amount of money? Leave comments please, I am very curious.

Unless they generate hundreds of dollars per month, I refuse to put them on my site. I did a bit of research, and could find no reports of personal finance bloggers reporting their profits from Adwords.

I have a friend who runs a popular skiing website which makes a pretty comfortable living off Adwords, but his site gets a massive amount of traffic and draws people actively looking to make reservations, find new ski lodges etc.

Help me solve this question! Anyone with Adwords on their blog, let me know what you net!

Financial Update

March 8, 2005 by Neville

Since January 1st, 2005 I have made $2,213 out of my $11,000 goal for April 31st, 2005. Need to step this up! I’ve got less than 2 months and the goal is only 20% complete so far.

My investment account topped $1,000 after I distributed my work paycheck into different accounts. When it does this I usually put $500 into my stock portfolio, but I am holding off right now as other projects are in the works and may need some captial. The permanent savings account has reached the $6,000 mark and looks like it may need a new home. It is sitting there gaining some paultry interest rate.

I got my paycheck from work today, and I immediately stashed it away with the following percentages:

Investment Account – 35%
Permanent Savings – 35%
Spending Account – 20%
Bill Account – 10%
So out of a $271 paycheck I get to spend only 54 bucks on entertainment etc.

Current Financials:
General Account – $ 1,654
Spending Account – $ 85
Investment Account – $ 1,085
Bill Account – $ 327
Permanent Savings – $ 6,052
Stock Portfolio Value – $ 9,278
Total Liquid Assets – $ 18,481 (+240)

Bright and Sunny Monday

March 7, 2005 by Neville

Syntel (SYNT), a stock of which I own 180 shares is giving out a $1.50 per share dividend at the end of March. This equates to a nice $270 “gift” for me :-)
The dividend announcement and declaration of a strong financial future has sent the Syntel stock upwards the last few days, putting me back in the black on this holding.

I’ve been focusing lately on stashing away some stocks for the long long long term, 30 or 40+ years. I have a few stocks in mind, but one area I want to further explore is batteries. Regardless of its function, pretty much every mobile device is getting more advanced, and using more energy.

I would like to invest in several firms or a fund specializing in long-lasting energy supplies for mobile devices. Battery technology has perpetually lagged behind the devices that they supply, and within my lifetime I expect that to change. I love my tablet PC and the portability it offers, but I hate having to plug in every 4 and a half hours. The convenience of a device which does not have to be charged every day would be worth paying for.

A company with a patented battery that could power different devices (phones, laptops, radios, golf carts etc.) for long periods would be a sure money maker, and a great stock to own!

Money to Make Money?

March 7, 2005 by Neville

I don’t like the phrase “It takes money to make money”

If this were the case, no one would ever obtain wealth. Someone who cannot make money without money, probably can’t make money with money either.

When you have money, you simply have a larger variety of money-making avenues to choose from. I’d like to revise the quote to say: “It’s easier to make money with money”

When you are strapped for cash you simply have to be more creative to make your money!

Crazy Business Ideas – Part 3

March 4, 2005 by Neville

I’m sharing some more of the ideas I randomly write down in my tablet PC which could possibly be big money makers. Feel free to comment on these!

1.) Drycleaning ATM. Picking up dry cleaning during regular business hours is a pain, and very frustrating when you need certain clothes. Wouldn’t it be nice to have a dry cleaning ATM? Drycleaners would LOVE this since it would eliminate the need for a person to attend the store for long hours. You could pick-up and drop off clothes at this ATM which would hold your account information on a current credit card or something of the sort. You could even type special cleaning instructions. The drawbacks to this system are: it would initially be expensive to install, the building where the dry cleaner is located would have to be specially outfitted with this system. If you could find a way to make an affordable and easy to use system like this, it would change the face of dry cleaning!

2.) Wind Energy. Wind farms are popping up everywhere. The only problem with wind farms are the price. Wind generated turbines are absolutely massive. The blades get larger than the span of a Boeing 747. Once set up in a good location these things generate killowatts of energy every year that you sell to the power company. Most power companies will give you a contract that buys 100% of the electricity you produce. These also qualify to get certain tax breaks, great for any large investment. An interesting note: In Austin they have a program where you can opt to buy only “green” electricity from the city. In just two years the demand for this clean energy has risen over 5-fold, meaning this type of clean energy is in high demand. Be warned, the small investor will have a hard time breaking into this market….BUT…an enterprising person with a small budget but lots of motivation can get funding from other investors easier than with other large products. This is because you can easily get a contract from an electric company to buy 100% of your product (electricity) for 10+ years.

3.) Tablet PC’s. This is more of a trend than business idea. I have a Toshiba Portege Tablet PC, and I LOVE it. It is basically a regular laptop, but the mouse can be controlled with a pen. You can also flip the screen around and write directly on the screen, and it feels exactly like writing on paper. Have no doubt, the tablet trend will continue. I generally use it in regular laptop mode, but I use the pen instead of the mouse pad because the pen is FAR superior and faster. If you can identify a need for tablet PC’s you can make a ton of money by getting in this budding market early. A family friend who sells wholesale computer equipment said, “I sell A LOT of tablet PC’s, especially to large institutions and government agencies.” The only idea I have to improve my tablet experience is the pen. You use it a lot, and it might be cool to have “customized tablet pens”. These are more sophisticated than a regular stylus, as the screen is not touch sensitive (like a PDA), but the pen is what senses the touch. Most people don’t realize this important difference. I’m sure if you play around with a Tablet enough you can find some other device that can make the experience more enjoyable. The most money in the tablet-improvement field will probably be in the software area, not hardware.

Wall Street Journal Mention

March 3, 2005 by Neville

I was interviewed by Wall Street Journal Online reporter Terri Cullen on Monday afternoon, and the article is out today:

Blogs Expose Personal Finance: The Good, the Bad and the Ugly

The article features other blogs such as:
PFBlog.com
Mymoneyblog.com
Iwillteachyoutoberich.com
The Budgeting Babe
Neville’s Financial Blog
Savvy Saver blog
Insideblogging.com

Congrats to everyone who got a mention!

I really liked a particular quote Terri had:
“Another thing I liked about the blogs I visited was that most have yet to be consumed by the omnivorous beast that is GoogleAdSense.”

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