Life is essentially a series of decisions. Today my wife and I made a big decision, of which I will tell you at the end of this post. Before that I want to do a fun little game where I will answer a few questions that begin with “should you?”
Should you…
1) Play Poker?
I love poker and have been playing since high school. I am one of the fortunate few who can say they have made money playing. If you average out all the hours I’ve played it probably is a very small $/hour, since I never played very high stakes (I have never bought in more than $200 at a cash game or $100 at a tournament).
The reason I think people should play poker is because it can be a very complex game that involves math, psychology, discipline, and money management. Because of various changes to the poker world in the past few years I think very few would recommend someone attempt to play for income or professionally, but it can be a fun thing to do in your spare time.
2) Follow the stock market on a daily basis?
I can understand people who follow the stock market on a daily basis who want to be “in-the-know” about the various stocks and sectors, but it’s essentially become an entertainment industry for 99 out of 100 people. It’s something to talk about and debate with friends and colleagues, but is the information you are taking in helping you make better financial decisions?
I have been following a couple of sectors recently to see how they have changed over the course of time. It’s been interesting, but ultimately not extremely beneficial in any sort of way besides being knowledgeable about companies and recent news, and being able to share that with others in everyday conversation.
Ultimately I would say it’s better to avoid daily tracking of stocks and sticking to a long-term plan and macro-economic issues that will move entire markets (such as the housing bubble).
3) Coupon?
If you can justify the savings/hour. I think most people can. My wife and I save approximately $15/hour (just a rough estimate) couponing. If you can freelance for $200/hour as a database consultant, you could probably justify not couponing.
If you do decide to coupon, try using my coupon database to maximize your savings. It’s important to make efficient use of your time when couponing, because like I said it really comes down to how much you can save per hour of time invested.
4) Invest in rental property?
When I was in college I found it incredible the amount of money that landlords could charge for rental houses close to campus. As you get closer to college campuses, the value of homes go up drastically (and the quality seems to decrease). A house my sister rented at one point had six renters and they were each paying $500+. That’s a big income stream. Let’s just say colleges aren’t going anywhere, so a rental close to one seems like a good idea if you have the cash to back up the potential liabilities.
With that being said, rentals are hot overall because it’s saturated with people who have income but may not have the credit to purchase a home. I talked to a real estate investor last weekend who had rentals in suburbs that were not that close to the city that were renting for a relatively high amount. I also have a friend who owns a townhouse in another suburb who found a renter within days of posting that he had a room open.
I think it ultimately comes down to each individual’s financial situation and goals. So is it a good idea? I can’t answer that for anyone without knowing their situation (and even then there will be others who disagree with what I have to say), but it is a tool that can be used for additional income streams.
5) Read Personal Finance Blogs?
I’m biased so I will abstain :P
________________________________________________________
And now the moment you have all been waiting for…
The big decision we made? We put an offer on a house!
Probably not a smart idea to live-blog this part of the home buying process, so I will do that at a later time when it’s a done deal, but I just had to share it with you all ;)
What are your responses for 1-5? Should you or shouldn’t you?
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No, No, Yes unless generic is cheaper!, Yes but do your homework, and YES OF COURSE!
Congrats on putting in an offer! Good luck to you!
@seedebtrun Thanks!
Playing poker: Yes! It can increase your skills in many areas and keeps your brain constantly engaged so as long as you aren’t blowing your money I’d say yes.
Stock Market: Yes/No . If you can look at it without losing sight of the big picture then go for it but if you see one bad day and freak out I’d say stay away.
Coupon: Yes/No. For household items yes! It saves tons. For food no. I don’t eat the maturity of the food you can get with coupons because it is over processed and filled with unnecessary additives. I used to coupon but have drastically changed my eating habits so using coupon is no longer beneficial for me.
Rental Property: Yes. We will be doing this within the next 10 years. The plan is to turn our current home into a rental when we are ready to move somewhere else.
Read PF Blogs: Yes! I’ve learned so much from them and have been motivated to keep on track with them.
Good luck on the house process
@Em23 Yeah the food items are tough. Target has had some good ones (i.e. $1 off fresh produce, $1 off bakery item, etc.) but it is generally processed foods. If you eat healthy it can be difficult, tho I did see a vegan on extreme couponing!
That’s a great idea about the rental property and something we will consider in the future as well. If you can purchase another home and rent the one you currently have, that’s a big income stream each month.
Congrats on putting an offer…how exciting!!! Invest in rental property…good idea to diversify your assets and don’t get hooked on stock market daily updates…they are more damaging than anything else
@OrnellaGrosz Thanks! Yeah the stock market daily updates can be really bad if you act on them all the time.
1) only if you understand it is for fun and only play with money you can afford to lose
2) depending on your strategy. I personally keep up with it but dollar cost average every paycheck
3) I don’t get the newspaper but if it floats your boat go for it
4) If you have the funds and are willing to put in the work I think it is a good option
5) definitely not, such a waste of time (yes, I am being sarcastic)
6) CONGRATS… well that is what I’ll say after you close :)
1. Yes, play poker with me. I will take your money.
2. My personal preference is no’
3. I only coupon if someone gives me coupons or they are somewhere blatantly obvious and I don’t have to work for it too much
4. Yes, we have two rental properties. They have been a great investment, will pay for my kids college, and will help fund our retirement.
5. Yes!
@Holly at ClubThrifty I would love to play poker with you, let’s get a game going!
Very cool about the rental properties. It’s a personal goal of ours to have a couple down the road. It seems like a great source of income.