Upcycle: Build a Bag

Love up-cycling: Taking old clothes and remaking them into cool reusable bags you can gift to another is way fun!

1. From one gently used piece of clothing, cut 2 matching size pieces of cloth in the shape of the desired bag or one long rectangle piece that is 3 inches longer than twice the height of the desired bag 
2. Cut two 22 x 3 inch strips of material to be used as the bag’s handles
3. If two separate pieces of cloth, place right sides together and sew ¼ inch seam along the bottom
4. Pocket bottom seam between the front and back panels 1½  to 3 inches deep
5. Sew together the front to back panels along sides using a ¼ inch seam, catching the pocketed bottom so to create a nice bottom for your bag. 
6. Turn bag inside out
7. Roll top under by a double ¼ inch, pin and iron in place and set aside
8. Iron handles in half length-wise
9. Fold edge into center crease, pin in place
10. Pocket edges of handles inside by a ¼  inch and iron in place
11. Top-stitch both long sides of the handles
12. Pin one handle end, ¼ inch deep and 2-3-inches in from the left edge of the bag inside of back panel of the bag.
13. Pin the other end of the same handle ¼ inch deep and 3-inches from the right edge inside of the back panel
14. Repeat previous two steps to attach the 2^nd handle on the inside of the front panel of the bag 
15. Finish top of bag by sewing the top folded ¼ inch seam, catching the edge of the handles 
16. Top stitch the bag around the opening, which will help secure the bags handles 

Wala! You are now ready to go J

Is 2016 Your Year to Invest in Energy Efficiency?

A New Year and the end of blizzard-cold month: Two topics of no joy: 1) High Utility Bills and 2) Taxes. 

Want to take it on? Check out http://www.dsireusa.org/. At the site, you enter your zip code and see an extensive list of incentives, grant opportunities, tax credits and policies that support renewable energy and energy efficiency for your area. Some of the Federal Residential Tax Credits require you to make the purchases in 2016. It may be a good time to consider this the year to make that investment, reducing both your tax liability and your energy costs in the long run. 

The Perfect Salary

I often hear people tell me when they talk about personal finance that “I don’t need to be rich, I just want to make enough money where I can buy what I want without worrying.”  So….how much money it that?

To be honest, I don’t have a good answer.  A few years back the Wall Street Journal posted an article that it takes an annual salary of $75,000 before you have diminishing returns on the dollars you spend.  In other words, $75,000 salary is the minimum you can make to maximize your happiness.  But is that the answer for you.

I think that wealth people always worry about money and are constantly asking themselves is the value received for the dollars spent worth it.  They do not want to waste money on bad investments or buying things not of value to them.

I don’t define wealth as a dollar figure, or a net worth figure.  I define personal wealth as being happy with yourself, knowing your personal values, and living out those values….being happy where your feet are.  You are wealthy when you don’t have to worry about buying things, because you have saved for the items and they fit your personal values.

How do you get to this personal wealth?

1) Know what you value and where you spend your money.  If you want to see what you value, look at where you spend your time and money.  I encourage you to write down where you spend every penny for one month, evaluate it weekly, and reflect on if this spending is in accordance with what you value.

2) Look for little leaks where you spend money and receive little or no value.  Can you substitute spending money on this item for something else?  The little leak that is common for many is eating out, especially lunch.  You can easily spend $10 a day on lunch; $50 a week; $2,600.00 a year.  It is worth it or can you pack your lunch and save money.  

3) Set a budget.  Look at where you have spent money the past month, and categorize your spending, i.e., groceries, dining, fuel, electricity, Internet, TV, housing, etc.  Do you have enough money for all of your expenses?  If not, you either need to cut back or make more money.  Look for the little leaks in your spending where you can cut back without drastically changing your life style.  Ben Franklin said it best when he said “Little leaks can sink a mighty ship.”  You should stop as many leaks in your personal finances as possible.

4) Set goals. Setting goals keep you motivated.  Do you want to pay off your credit cards in the next 6 months?  Do you want to buy a new car?  Do you want to go on vacation?  Figure the cost and establish weekly or monthly steps to achieve your goals.  

5) Celebrate. When you achieve your goals, you now have enough money to do the things you want without worry because you have have the resources for them.  You are now wealthy.  You don’t have to make a lot of money to be wealthy.

Opportunity Wherever You Live

I'm often ask what it take to be an entrepreneur.  My answer is always the same:  looking for the opportunity and then having the persistence and follow-through to make it happen.  Know yourself and follow your passions.

When looking for the opportunity, you want to solve a "pain point." Can you create a solution to a problem that other people don't want to do or can't do ...can you eliminate their pain. What are some things that are causing you pain and that you would be willing to pay other to solve?  The more of a pain, the more valuable your solution. Can you be innovative and creatively solve the problem.  The answer may be just around the corner.

The find pain points, you need to become aware of others and what others are experiencing.  Observe, interact and interview others as to what things they don’t like and what they would like to be easier or simpler.  You don’t have to solve the pain point at this time; just make a list of your observations and interactions.

By writing these ideas down you are allowing your conscience and subconscious to percolate on these problems, looking for solutions.  You can later evaluate you list to see which are most viable for you to solve, given your strengths, passions and networks. Keep that notebook next to your bed so in the middle of the night, you can write down your solutions.

Keep up on social and technological trends.  Read newspapers, magazines, listen to public radio, podcast, and what the news looking for trends and inventions.  Imagine the future and how this new technology will be used in the future to solve problems.  Can you combine two or more existing technologies or product to help ease the pain of others?

Think outside the box and say yes to all possibilities.  Suspend your current reality and create a reality where anything is possible.  Do not limit yourself by self-imposed constraints. This will help you spur on your creativity to come up with solutions.  Write down your solutions so you can research the possibilities and evaluate the probable success at a later time

Entrepreneurship requires dedication, persistence, long hours and an uncertain future.  You have to know your strengths and weaknesses to be successful.  Hire or partner with people who complement your strength, not people with the same strengths.  Tom Rath’s StrengthsFinder 2.0 is a great source to help you uncover your strengths.

Know your passions and what drives you.  Your passions will help you overcome obstacles and keep you going when others say no and think you are crazy. You passions will keep you working 60+ hours a week. To discover your passions, what would you do if money was not an option? What do you currently do where time flies by? Pay attention to your daily life to find your passions and strengths.

Entrepreneurship is turning your passions into profits by solving other’s pain points and creating a product or service of value.  When you turn your passions into profit, you never have to work another day in your life.

Say Cheese

When taking on the topic of personal finance, I love hearing the stories where that voice speaks to you from the heart and leads you on the path of happy and home. 

We made a visit today to Belle Chèvre in Elkmont, Alabama and met the charismatic and delightful owner, Ms. Tasia Malakasis(Chief Cheese Officer).  I first learned about this impressive lady in perusing old publications of Organic Gardening. She left a very successful and financially rewarding career in Internet technologies to venture back to her roots and become a queen in the world of award-winning cheese making. Since that article, she has appeared in countless magazines, news shows, and newspapers and now author of two culinary books.

Her list of accomplishments are impressive but upon meeting with her in person, I found that gold nugget I love most that I see in those who pursue their passion -that positive and happy energy that radiates from inside them and just makes them glow. 

She discovered her culinary passions by taking non-credit courses at the Culinary Institute of America while on a sabbatical from her corporate career. This led her to her discovery of Belle Chèvre cheese. She eventually left New York City, a big pay check, and the stress of corporate life to volunteer at Bell Chèvre and learned the art of cheese making. After 6 months, she purchased Belle Chèvre, has grown the company considerably, increasing the product portfolio, sales and distribution to many national retail stores. 

If ever on I-65 through Alabama, take a 5 mile detour to Elkmont and visit Belle Chèvre. Pay to take the guided tour and perhaps you will have the good fortune to meet Tasia. 

Run Away Tax Fraud

Wherever we turn - national or local news, neighbor or co-worker - we hear about those who have been the target of state and federal tax fraud.  

The number of fraudulent tax returns is on the rise as criminals use stolen names and Social Security Numbers to forge W-2 information on electronically filed tax returns.  Most people do not realize that they have been a victim of identity theft until they try to file their tax return and discover that a criminal beat them to their refund.

The federal tax return fraud rate ranges between of 1% to 2%. States report an increase in fraudulent tax returns this year of 50% to 3,700%.

If you are a victim of tax fraud, follow the steps recommended by the Federal Trade Commission: 

1.      File a report with your local police and with the FTC.

2.      Report fraud to IRS, Identity Protection Specialized Unit: 1-800-908-4490

3.      File a theft claim with the FTC: Send a copy of your police report or an IRS ID Theft Affidavit Form, along with proof of your identity, to the IRS: 

4.      Put a fraud alert on your credit reports: 

5.      Order and monitor your credit report

Check out the FTC article on a comprehensive identity theft action document with step-by-step instructions on recovering from this crime. 

Sign Up for Health Care Coverage or Pay Penalty

The Affordable Care Act(ACA) – also known as Obamacare – is a law enacted to ensure that all Americans have access to affordable health insurance. It supports discounts (known as tax credits) on government-sponsored health insurance plans, and expanded the Medicaid assistance program to include more people. The law requires most Americans to have insurance by Feb 15 or pay a fine at tax time. The Obama administration extended the deadline to April 30, which is the end of the tax season, so to allow people who discover they would owe a fine, to still sign up for coverage. 

The Wall Street Journal reported that many uninsured are choosing the penalty over the opportunity to enroll in a healthcare insurance plan. Choosing to go without health insurance puts your assets at risk. If you consider yourself healthy, you can select a plan with low premiums. You will have higher out-of-pocket costs at the time of care than with more expensive plans, but you will still have protection against an acute episode of costly care, which if unprotected, can drive you to bankruptcy.

If you do not have health care insurance through your employer, and you are not covered by Medicare or Medicaid, then you can buy a healthcare plan on www.healthcare.gov if your state participates in the federal program or else from your state’s health care website. For access to an up-to-date information on each state’s health insurance marketplace profile, check out http://kff.org/state-health-marketplace-profiles/.

Personal Finance and Passion

Personal Finance and Passion – we love it when the two come together. We meet people in all walks of life who exemplify the philosophy:  If you are doing what you love, you never have to work a day in your life. As we approach Valentine’s weekend, we are reminded how joyful that endeavor can be-- for the entrepreneur following their passion as well as those benefiting from their labor of love.

Through our Walker Homestead CSA (Community Supported Agriculture), we have the great privilege of hosting a Farmer’s Table dinner this Valentines weekend. Chef Chris Grebner is an extremely talented culinary artist. His passion is to bring together the food producer with the food consumer, over a four to seven course meal on the property where the food is produced. These evenings are exquisite with an eclectic group of people coming together to enjoy meeting new people, fine foods and conversation, and having their own beverage of choice in the beauty of a country setting.

Pursuit of his passion benefits his livelihood, that of the food producer and those who have the privilege to participate in his highly sought-after dinning events.  

Bon appetite.

Six Years of Car Payments Sounds Like A Student Loan

I just saw a TV commercial where they were offering 0% financing on a new car for 72 months; that's right - six years. The rule of thumb is to never finance a car for more than three years or 36 months and keep the car for at least six years. If you do that and then continue the amount of the car payment into your savings account for three or four more years, you will be able to pay cash for your next car.

We all know that money is not free, so if there is cash back offer or 0%, pay cash and take the discount.

I don't know about you, but ten years to pay off my student loans seemed to take forever. I personally couldn't stand for paying for a car over a six year period.

The problem with debt is that you are pledging future earning to the banker. In simple terms, you are enslaved to your lender. Vehicles depreciate over time –a vehicle is not an investment. At least with your student loans, it's an investment that pays off.

When you are debt free, all the money you make is for you (and the government in taxes). Being free of debt liberates you to pursue your passions and work for less doing something you love.   When you can turn your passions into profit, you never have to "work" a day in your life.

Be careful of low monthly payments. Dave Ramsey says "poor people ask how much down and how much a month. Rich people just ask how much."  Here it to you becoming rich and debt free.

Student Loan Repayment – Know Your Options

For the May graduates, 6 months from graduation is time to start repaying your student loans.  The Federal government wants its money back and provides many options for repayment.

First question you need to ask yourself: “Should I consolidate my student loans?

·        PRO: Consolidated loans simplifies your loan repayment by centralizing your loans into one bill, providing one payment, and can lower your monthly payment by providing you up to 30 year to repay your student loans. 

·        CON: You may lose any benefits offered with the original loan.  Once you combine your loans into a Direct Consolidation Loan, it’s a done deal and they cannot be unconsolidated.

After you decide if you are going to consolidate your loans or not, you need to choose a repayment plan.

The Federal Student Aid provides all the information you need to know for Federal Student Aid, Work-Study jobs and grants. Listed below is an overview of Direct Loan and FFEL (Federal Family education Loan) Program Loans repayment plans, noting information regarding repayments, deferments and forbearance. 

There are many companies out there who want to take your money to enroll you in government plans that you could do yourself.  Take caution of offers that seem “too good to be true” --because they probably are.

Overview of Direct Loan and FFEL (Federal Family education Loan) Program Loans Repayment Plans

Repayment Plan	Eligible Loans	Monthly Payments and Time Frames	Quick Comparison
Standard Repayment Plan	Direct subsidized and unsubsidized loans   Subsidized and Unsubsidized Federal Stafford Loans   All PLUS loans	Payments are a fixed amount of at least $50 per month.   Up to 10 years	You will pay off your loan in a shorter amount of time and you will pay less interest, however your payments could be higher.   Consider this plan if you can afford higher payments
Graduated Repayment Plan	Direct subsidized and unsubsidized loans   Subsidized and Unsubsidized Federal Stafford Loans   All PLUS loans	Payments are lower at first and then increase, usually ever two years.   Up to 10 years	You will pay more for your loans over time than under the 10 year plan.   Consider this plan if you expect your income to start off low and then grow over time.
Extended Repayment Plan	Direct subsidized and unsubsidized loans   Subsidized and Unsubsidized Federal Stafford Loans   All PLUS loans	Payments may be fixed or graduated.   Up to 25 years	Your monthly payments would be lower than the 10-year standard plan   Must have at least $30,000 in outstanding Direct Loans OR $30,000 in FFEL Program loans.   Direct Loans and FFEL loans must remain separate.  You cannot combine Direct Loans and FFEL loans to reach the $30,000 threshold.   Must be a “new borrower” as of October 7, 1998   You will pay more interest over a longer period of time than the 10-year plan.   Consider if you have over $30,000 in qualified loans and cannot afford the 10-year or graduated repayment plans
Income-Based Repayment Plan (IRP)	Direct subsidized and unsubsidized loans   Subsidized and Unsubsidized Federal Stafford Loans   All PLUS loans made to students   Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents	Your maximum monthly payments will be 15 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply).   Your payments change as your income changes.   Up to 25 years	You must have a partial financial hardship   Your monthly payment  will be lower than payments under the 10-year standard plan   You will pay more for your loan over time than  under the 10-year standard plan   If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven   You may have to pay income tax on any amount that is forgiven.
Pay as your Earn Repayment Plan	Direct subsidized and unsubsidized loans   Subsidized and Unsubsidized Federal Stafford Loans   All PLUS loans made to students   Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents	Your maximum monthly payments will be 10 percent of discretionary income; the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply).   Your payments change as your income changes.   Up to 20 years	You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.   You must have a partial financial hardship.   Your monthly payment  will be lower than payments under the 10-year standard plan   You will pay more for your loan over time than  under the 10-year standard plan   If you have not repaid your loan in full after making the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven   You may have to pay income tax on any amount that is forgiven.
	Direct Subsidized and Unsubsidized Loans   Direct PLUS Loans made to students   Direct Consolidation Loans	Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans.   Your payments change as your income changes.   Up to 25 year	You'll pay more for your loan over time than under the 10-year standard plan.   If you do not repay your loan after making the equivalent of 25 years of qualifying monthly payments, the unpaid portion will be forgiven.   You may have to pay income tax on the amount that is forgiven.
Income Sensitive Repayment Plan	Direct Subsidized and Unsubsidized Federal Stafford  Loans   FFEL PLUS Loans   FFEL Consolidation Loans	Your monthly payment is based on annual income.   Your payments change as your income changes.   Up to 10 years	You'll pay more for your loan over time than you would under the 10-year standard plan.   Each lender's formula for determining the monthly payment amount under this plan can vary.

 

Summer Savings

The garden is in and we are beginning to harvest the fruit (and vegetables) of our labor.  With this in mind, I got thinking about the benefits of a home garden.  You can do this even if you live in an apartment, using container gardens, or a small raised bed.  We are fortunate that we have the space for a big garden and even a coop for free reign chickens who provide us with fresh eggs.

With a little bit of time you can save big at the grocery store by planting what you eat.  Tomatoes are easy to grow and one to three plants will feed a family all summer. Leaf Lettuce and Swiss Chard will grow continuously till frost. If you have more than you can keep up with,  you can freeze or can to save them for winter.

Lettuce, beets, spinach and Swiss chard are now being harvested and it makes for great salads. We will be able to put in a second planting so we have these vegetables fresh going into fall.

Besides the fresh vegetables, other benefits include:
Ø  You save money by less shopping at the grocery store
Ø  You eat better with higher quality fresh vegetables
Ø  You have time to enjoy working in the garden and harvesting what you planted
Ø  You may loose weight because you are exercising more and eating better
Ø  You have a stress release from your busy workday.

To see what we are up to, check out our other blog:  https://walkerhomesteadcsa.blogspot.com

Happy savings, gardening, eating well, stress reducing, being healthy and happy.

Commencement Address

As we just graduated our senior class and sent them off into the world, a few parting words of advice and personal finance tips:

1.  Stay true to your values.  Roy Disney, Walt's brother said "When values are clear, decisions are easy."  Keep refining and defining your values, for they should guide your decision in the future.

2.  Go forth in your life with passion.  Stay true to your values and whatever you do, do it with passion and energy.  We all will have parts of our jobs that we do not like, but need to get done.  Use your passion and energy even when you have to "shovel out the stables."  It will make it more fun and just maybe a little more enjoyable.

3.  Love what you do and do what you love.  It may take you 5, 10, 20 or 50 years to find your true calling in life, but enjoy the journey.  You will learn something in everything you do, but may not realize it until you look back on your life.  Your life's journey has a purpose and the journey is the way to learn and discover your purpose.

4.  ALWAYS pay yourself first. Make sure you put enough in your 401-k to get your employer’s entire match.  You are responsible for your own retirement, so start early and maximize your contributions.

5.  Don't buy things you cannot afford.  It is tempting to rent a nice apartment and fill it with nice furniture....all purchased on credit, but do not give into this temptation.  Save and pay cash for the things you want and need.  You are used to living on very little as a college student.  Keep that going for a few more years and save for the things you want and PAY CASH, not credit.

6.  Remember to give back and be thankful.  It took a village to get you through college: your family, friends, teachers, professors, co-works.  Keep them in mind as you do good with your education.  Perhaps you will influence others to go to college and graduate.  Always give back to others.

7.  Keep in balance with your saving, spending, investing and giving.  Only you can control what you do with your money.  Live life fully and enjoy the relationships you make, but keep everything in balance.  Don't sacrifice friendships for career or your career for friendships, and don't sacrifice your savings and investment plans for immediate gratification.  Life is short so enjoy it as you keep your balancing point.

Personal Finance and Passion

My passion is farming and people and writing and creating. This month, we ventured into a dream of mine; starting the Walker Homestead CSA (Community Supported Agriculture). Bob will remind me that this is a business and we need to be making money at it. And I remind him that this is a passion and we need to be having fun with it; creating, experimenting, and sharing the goods and trials with our new extended CSA family. That in itself has a lot of value, and I would argue much more than a pile of money for which to select an investment option.

 

Yes, I could make much more on an hourly basis, exercising some of my other learned skills, but I earn so to keep me and my family secure and happy and so that so I can do things I want to do. Starting up a CSA -planning the events, sharing ideas between members, creating the gardens and the orchards and working with hens, thinking about milk goats (and maybe a few piglets) is joyful. And at the same time, we are earning money and reducing some of our tax liabilities.

 

Which speaks to the principle: If you find an occupation that you love, you will never have to ‘work’ a day of your life. It is graduation time. Good luck to all seniors in pursuit of your passion.

http://walkerhomesteadcsa.blogspot.com/