Showing posts with label interest. Show all posts
Showing posts with label interest. Show all posts

Saturday, September 6, 2014

Compound interest

For reasons unknown, I seem to be a magnet for neighbors that are, shall we say, less than ideal. It wasn't always that way. When we first moved into our house, we had great neighbors - and great relationships with them - on both sides of us.

But time and circumstances change. Over the last sixteen years, the house to our left has sold twice, the house to our right five times.

I know what you're thinking - maybe it's us. Trust me, it's not.

I won't go into the all the gory details, but I'll go into a few of them. The neighbors to the left started their relationship by calling the police on us (when I politely asked one of their workers to take his equipment off my property), had their lawyer send us a letter telling us to stop harassing said workers, then served me to appear in small claims court because they didn't believe the property line was where I said it was, so they paid for a survey to find out.

SPOILER ALERT: It was exactly where I said it was. And they dropped the suit, which they were guaranteed to lose for any number of reasons.

Fast forward. The fence they built on their side of the line is great, and while no one's coming to either house for coffee, we now have a cordial smile-and-wave relationship with them.

The neighbors to the right bought the house, spent a year gutting it and redoing the yard and swimming pool. In the process, they cleared all the growth that had blocked our garage on that side, and built a cement deck and attached it to our garage wall. Which they also painted to match their house.

Needless to say, this didn't go over to well with us. We have since come to an agreement, which they've broken twice at last count. Let's just say nothing good comes of building on and painting someone else's property.

However everyone now agrees on the property line, and, with our tenuous agreement in place, we'll use the strategy of waiting them out.

All of this is to explain why I've become a huge fan of the compound way of living. You know, the Kennedy compound? The Bush compound? I'm all for it.

Sure, to some owning your own six-acre piece of oceanfront property with homes that house only friends and family may seem like a rich indulgence. But if you've lived with the neighbors we have, surrounding yourself with people you know and trust seems like, oh, what's the word, oh yes - heaven.

So I'll continue to invest heavily in stocks, bonds and lotto - mostly lotto - and hope that I hit it big one day. Big enough to either buy and build my own compound, or start snapping up the homes on my block as they go up for sale.

Like I pray every day the one on my right will soon.

Tuesday, May 20, 2014

Pay as you go

When it comes to credit cards, I like to know I'm at least getting a little reward for my completely undisciplined spending. That's why I have two airline affinity cards I use to help me rack up the miles.

Funny thing about credit card companies - they expect you to pay them. I know, right?

Sometimes, as any freelancer will tell you, the bills get there before the checks do. The cash flow isn't always as prompt as you'd like it to be. It's not that it's not there, it's just not there right now.

A few months ago, I managed to run up one of my cards to a healthy sum. It fact, at that point in time, it was a healthier sum than I had coming in.

Eventually I paid it off, but I'm not a guy who likes to have debt. I'm not comfortable with it, never have been. I used to pay my phone and electric bills a year in advance just so I wouldn't have to think about them (I also used to spend my rent money at the track, but I don't do that anymore either - long story).

Now before you say it, don't say it. I know I could've invested that money instead of letting the phone and power company earn interest on it. But to me, my peace of mind and retaining the ability to breathe knowing those bills were paid was a good investment.

Anyway, as a result of having run up that card - little suckers just sneak up on you don't they? - I now do something I've never done. I pay as I go.

At the end of every day, I go on the credit card site and see how much I've charged. Then I transfer money from my checking account to cover the daily balance. With a keystroke, I'm current on the card.

It also helps because knowing how much is in my checking keeps a tighter rein on my spending since I know I'll have to cover it the next night. At least that's the theory.

But with 467,000 frequent flyer miles, I'm not sure how well it's working.