Categories
Opinion

South Park: Margaritaville

Sorry to our readers who got a VERY early edition of this post in their RSS feed.  Mr. Cheap accidentally hit “Publish” when he meant to hit “Save”.

margarittaville

Margaritaville” (originally airing March 25, 2009) was the 3rd episode of the 13th season of South Park and it provided an amusing perspective on the current financial crisis.   After various prophets each try to explain the reason for the current crisis (one blames low interest rates, another blames corporate greedy, while Cartman, of course, blames “the jews”), Randy (Stan’s dad) wins approval by explaining that the citizens of South Park have angered “the economy” by mocking it (and it has, in turn, cast its vengeance upon them all).  Channeling Mr. Cheap, he advises:

Yea, it is an angry and unforgiving Economy. To repent we must stop frivolous spending! Instead of paying for cable let us watch clouds! Instead of buying clothes, wear but sheets from thine beds! Cut spending to only the bare essentials! Water and bread and margaritas, yea.

Meanwhile Stan decides to try to return his father’s margarita maker, which stands as a proxy for mortgages-backed securities, and traces it through the retailer, lender, stock broker, and ultimately to the U.S. Treasury Department in Washington (where he discovers how political decisions are REALLY made).

You can watch the episode on-line (legally) at www.southparkstudios.com/clips/222639 (in the US) or watch.thecomedynetwork.ca/south-park/season-13/south-park-1303-margaritaville/ (in Canada).  Viewers outside the US and Canada may try to watch it here, and if you’d rather read it then watch it, check out the scriptWARNING: South Park’s humour can be fairly edgey (Mr. Hankey makes me feel a little nauseous whenever he’s on the screen), and it might not be to everyone’s taste.

Categories
Announcements

Easter Monday Notes And LinkStuff

I hope everyone had a happy Easter this past weekend.  I really don’t understand why the government and banks get today off but the rest of us (who actually work for a living) have to work.  What a rip!

I just finished filing my taxes – if you are a student or family making less than $20k per year then check out the QuickTax Student option – it’s free!

Best Canadian rewards card

A reminder that the best Canadian rewards credit card which I wrote about a while back  is still being offered.  I have to admit I haven’t gotten around to applying for it yet but mark my words – it shall be done.

Top link

Finance Freelance Life wrote a very touching post called “Why I’m glad I didn’t kill myself“.? She has suffered from depression in the past and considered ending her life a few years ago – luckily that didn’t happen and she is doing much better since then.? I’ve gotten to know Mrs. Micah fairly well over the past year or so and I can say that I’m really glad she is still around. I’m not going to admit that any blog post made me cry – but if there was any post out there that might come close to doing that – this one would be the one.

Some links

The Good Human talks about two new green initiatives he has accomplished – an outdoor catbox and a manual lawn mower.  I’m a huge fan of manual lawn mowers – you can see a picture of mine (and my son) here and the idea of an outdoor catbox is just fantastic.  We are currently temporary owners of 4 cats and the output and smell is incredible.  My kids have a green plastic frog sandbox in the backyard which might get converted for this purpose.  Yes, the sandbox is plastic (which is bad) but it’s also green (which is good).  🙂  Fewer cats is another good option which I’m pursuing.

Simple Trading System came up with an amusing explanation for the derivative markets (and the subprime housing markets).

Million Dollar Journey asked if organic food is worth the extra money.  Read the comments since there are a lot of different opinions in there (including mine).

Preet has a link to download the financial classic “The richest man in babylon“.  I plan to read this quite soon.

Financial Blogger talks about what you need to do before you die in terms of estate planning.

Cash Money Life is about to have a baby and wrote about shopping for baby items – the temptation to spend.   I’ve written a post or two on baby expenses and I agree that it’s hard not to buy!

My Two Dollars reports on Suze Orman’s new strategy of only paying the minimum on your credit cards.

ABCs of Investing hosted the “Spring has sprung” edition of the Carnival of Personal Finance.  Good timing considered it snowed the next day.

Blunt Money explains why she choose a 15 year mortgage (vs 30 year).

Canadian Capitalist suggests that going with a longer term mortgage might make more sense now.

Money Ning wrote about the secret power of positive attitude.

The Intelligent Speculator says to stop being so naive.

Good Financial Cents has 7 questions to ask your financial planner.  Jeff is a financial planner so he should know the right questions.

The Oblivious Investor talks about his new upcoming book on investing.

The Consumer Boomer asks do consumer boomers need an IRA?

Moolanomy explains how to transfer credit card balances safely.

My Dollar Plan does a review of Zecco online brokerage.

Investing School did a pretty comprehensive comparison of Etrade vs Tradeking vs Zecco.  Kind of like King Kong vs Godzilla vs The Moth.

Wise Bread hosted the 2nd ever Carnival of Pecuniary Delights (great name) and featured one of Mr. Cheap’s posts called ethics in business and life.

Categories
Frugal

Simple and Frugal Decorative Easter Eggs

With two little people around the house, Easter is a time of fun.  Here is one of the ways we enjoyed ourselves.  We made edible art out of eggs and some onion skins we had collected the last couple of weeks.

  1. Collect onion skins.onionskin12
  2. Wrap the eggs in onion skin.  For varied patterns, add smaller bits of onion skin close to the egg and wrap the whole egg in larger pieces.onionskin21
  3. Fasten the skins to the egg.  I used elastic bands, but have heard of people using string or wrapping the lot in cheesecloth.onionskin31
  4. Put the eggs in a pot with about 1 inch of water.onionskin41
  5. Hard-boil the eggs.onionskin51
  6. Unwrap and inspect them.onionskin61
  7. Enjoy your one of a kind artwork.onionskin71
Categories
Money

Free Last Minute Tax Filing Software For Students And Low Income Families – QuickTax

If you are a Canadian college or university student and want to file your last minute 2008 taxes (which include tuition expenses) then check out the QuickTax Student Online Edition.  The tax return filing software is easy to sign up for and you can’t find a better price than free!

If you thinking about buying tax preparation software then consider software programs such as TurboTax or QuickTax.

Some of the benefits of this software:

  • File electronically with the government – no forms to fill out or mailing.
  • Built for students.  Expert guidance to help post-secondary students with tuition slips T2202A or TL11 do their taxes with ease.
  • Do your taxes anywhere & file online: All you need is a computer & an Internet connection. Plus, easily file online using NETFILE2 to get your return in as few as 8 days.
  • Find deductions: Identifies money-saving opportunities, and helps you find which income tax deductions you qualify for
  • Watch your refund grow: Updates & displays your refund as you complete your return.
  • Carry-forward 2007 data: Use QuickTax last year? Carry forward your 2007 QuickTax return.
  • In-product Live Community: Get answers to your tax questions right when you need them – from other QuickTax users
  • Plus! Get the help you need – with technical support via email, chat or phone (fees may apply).

How do I qualify for free tax filing software

  1. You paid tuition in 2008 (and have a T2202A or its equivalent).
  2. Your household income (you & your spouse) is $20,000 or less.

Don’t worry about filling out your tax return and not qualifying as a student or low income family  – you can still use the return you filled out but will be charged $14.95.

NEW! Audit Defence

If you are concerned about being audited by the CRA then don’t – with Audit Defence on your side. In the event that the CRA audits you, Audit Defence connects you with an experienced tax professional who will:

* Deal directly with the CRA on your behalf
* Help to minimize CRA penalties, if they occur

This last feature might help you avoid an expensive tax attorney.


Categories
Business Ideas

Wacky Business Idea #19: (Non-Massive) Multiplayer Online Role-Playing Games

I’ve been reluctant to post many game or book ideas in the Wacky Business Idea series, just because every gamer or reader has TONS of ideas (which are usually pretty lame).  This is one of my best (although probably still lame) video game ideas.

In the distant past, computer role-playing games (RPGs) were quite popular.  Games like Bard’s Tale, Wizardry, Ultima or heck, even The Legend of Zelda would involve fighting your way through an adventure, where your character(s) would become more powerful as you went.  I wrote about paper role-playing games, and their connection with personal finance, extensively in a previous post.  One of the elements of computer RPGs was that at the end of the game there would be a massive reward for your characters.  They would become the saviours of the world, kings and queens, gods or some such thing.

When massive multiplayer role-playing games (MMORPGs), like World of Warcraft, became popular, they had the added dimension of being able to play in a world inhabited by thousands of other real people.  You could join with them on quests, fight with them or trade with them, all of which lead to a vibrant, dynamic world (which is why they’ve become very popular and there are fewer single player RPGs being made).

One thing that players complain about is that they aren’t important in MMORPGs.  They’ll complete a quest to save a princess from a dragon, and 10 minutes later she’ll be back in her tower captured by the dragon again (and waiting for the NEXT player to save her).  There *ISN’T* an end to the game, and players only have as much renown as their accomplishments warrant.  Given that everyone is running around doing the same thing, its pretty hard to be noticed at all, let alone be the most famous character in the world… of Warcraft.  Probably the most famous World of Warcraft character is Leeroy Jenkins, who is famous for being stupid.

This business idea is to try to tie single player and massively multi-player RPGs together and get the best of both.  Customers would purchase a RPG which would include both the game and a server (a computer program that lets other computers connect to your’s).  Like a MMORPG the game world would run all the time, and you could invite friends to come and play in it.  Like the single player RPG, there would be a central “world threatening” danger that the players would have to band together to fight.  At any time, one, some or all of you and your friends could be playing, and when you’re playing together you don’t have to stay in the same area (perhaps at points in the game you would be required to split up to deal with different issues).

The game could be sold in “modules” where the same characters continue playing in the same world, but the purchased content adds new areas, character types and new over-arching mission(s).  The world would change as the characters accomplished things, and these changes would remain when new content was added (so if a character was the head of the thieves guild in Skara Brae they would remain the head of the guild, and no one else could be the head of it).

Optional extensions could be things like offering to run the game on the company’s servers (so that you wouldn’t have to leave your computer on for your friends to play), or even helping people to run their own public servers (as smaller, more intimate alternatives to MMORPGs) – even for a small monthly fee if it was good enough for people to pay for.

Some games, such as Neverwinter Nights or Diablo do something SOMEWHAT similar to this.  The major differences between this would be the focus on adding content extensions, and the game being built to be played multi-player (rather than it being an “add on” to the single-player game).  MUDs (basically non-graphical, text-only, MMORPGs) were an old school idea along these lines but what I’m describing would be something a lot closer to a single-player RPG than a MUD is.

Categories
Personal Finance

Book Review: How to Write, Publish, & Sell Your Own How-To Book

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I was happy to get a copy from a friend of John T. Reed’s “How to Write, Publish, & Sell Your Own How-To Book” which I’ve been wanting to read for a while.  In articles, and in other books, Mr. Reed has discussed that he got started on writing “How-To” books when a friend suggested them to him, he was surprised at how profitable they were, and he’s been doing them ever since.

John Reed takes titles seriously, and typically they tell you EXACTLY what the book is about (writing, publishing and selling a how-to book in this case).  He goes through the process in depth, for example explaining what type of paper or cover design he recommends and why.

I’ve had a goal to write a book at some point, and was surprised at his approach to the actual writing.  He recommends writing about something you know, writing the way you speak, makes some suggestions about length and that’s about it.  He suggests that past English teachers, and their negative feedback, can safely be ignored (like Stephen King, he never got any encouragement from his teachers to write professionally), but that if you have writing talent, your friends will probably have noticed and complimented you on it.  Failing that, he suggests to just barrel through and, in the worst case, dictate what you want to say to a recording device then transcribe it.

To a degree this reassured me that there’s no “black art” to it, or “literary police” I need to get permission from before I start writing.  He basically suggests typesetting as you go (work on it in the form you’ll eventually publish it in) and just get going.

A large part of the book is a diatribe against the publishing industry (and why you should avoid them).  He’s used to being looked down on as a self-publisher, and strongly feels that being published by a typical publisher is such a bad deal that people only do it for the vanity of seeing themselves in a book store (and convincing their friends that they’re a “real” writer).   I’m not sure if I feel as strongly about it (and would love to be offered a publishing deal like Squawkfox – yes, I *AM* green with envy).  But, I also like to make more money, so I’d be tempted to get into self publishing if it was more lucrative.  He has done both and is a strong advocate for self-publishing (and distributing).

He recommends printing the book and binding it yourself at home to start, and once you’ve gotten enough orders to justify it, do a print run with a publisher for a year or two’s supply of books (and print more as needed) to sell through your own website.  I was surprised that he didn’t mention “on demand” Internet publishers (like Lulu.com), either to recommend or criticize them.  I’ve read on-line reviews of some of his “early edition bound-at-home” books, and customers seem pretty under-whelmed by them.  I think on-line, on-demand publishing might be the way to start, then switch to larger-scale when and if the volume supports it.

That’s probably the one big criticism that can be made of John T. Reed, he’s very forceful and direct about what he believes and why, and its great 99% of the time, but occasionally he has blind spots (and refuses to acknowledge them), or gets misinformed and can’t shake the incorrect information (I’ve read repeatedly some funny ideas he has about XML).

While how much money you make depends entirely on how popular the book is, Reed’s experience has been that his books do well over a long time (they keep selling year after year).  He suggests that they’ll be the type of coveted “passive income” vehicles that take a large amount of upfront labour, then pay out year-after-year into the far future.

I don’t like linking to books we review.  Since we never set up an affiliate system, it doesn’t make any money for “the Mike” (watch out Trump!), and some readers will think we’re getting a commission which will bias the review.  Since you can ONLY buy this book at John T. Reed’s website (he discusses the rationale for this in the book), I’ll include the link here (but we don’t make a dime if you click on it and / or purchase the book).

I finish course work this term, and am thinking about a few possible side-projects once I switch into full-time research mode.  Writing a book is definitely one of the contenders.  Ideas I might write about include:

  • A romance novel about a frugal man (and the women who love him)
  • A super-basic, introductory personal-finance book
  • An introduction (and how-to guide) for Canadian dividend reinvestment plans (DRiPs)
  • A travel-log about my cheap backpacking trip across Europe (there’d be a bit of romance in this one too, although sadly no where near as much as I’d hoped there would be when I started the trip).
  • A travel-log about my experiences living in Taiwan (and teaching English there)
  • A layman’s guide to the Ontario Residential Tenancies Act, written for landlords and tenants, translating the legalese into English (with examples). I’ve been meaning to fully digest the act at some point, and doing so to write a book might be a good way to combine two projects.
  • A guide to graduate school, suggestions how to: get in, decide where (and whether) to go, outline the differences from being an undergrad, how to get up to speed in your research area, basic research and teaching skills, how to relate to your supervisor and fellow grad students, etc, etc.
  • A introduction to computer programming, using building a simple game (think Tetris or Space Invaders) with a real programming language as the core “project” and explaining proper software development techniques (and their rationale) throughout.

Which of my books would you buy or do you think would be the most popular?  What would you write a book about?

Categories
Announcements

New Forums, New Stuff and Carnival of Personal Finance

First up – I’m hosting the Carnival of Personal Finance today over at ABCs of Investing.  The theme is “Spring has sprung” –  lots of pretty flower pics so head on over and check it out!

Here’s a very funny “extreme frugality” video.  It’s pretty short (2 minutes) video by Ramit from I will teach you to be rich.  It’s basically poking fun at some silly extreme frugality concepts – check it out.  This is the original post the video is on (hint, it was published on April 1).

The Canadian Capitalist and Million Dollar Journey have teamed up to create the Canadian Money Forum – this is a place where you can go and chit chat about money stuff – Canadian or otherwise.  You can view the forums without registering (which is very easy) but if you want to post anything you will have to be registered.

Carnivals

I entered in the first ever Carnival of Pecuniary Delights this week held at Pecuniarities.  Check it out – some pretty good posts.

Categories
Personal Finance

More Car Company Thoughts

Some big events this week when both Chrysler and GM were denied any long term bailout money unless they come up with better restructuring plans.  The US and Canadian governments have not given up on them however since both companies were given short term cash to continue operations.  I thought it was pretty interesting that the governments didn’t just rubberstamp the recent deals that GM and Chrysler came up with to improve their operations.

I agree with Obama that the threat of bankruptcy is necessary to get a proper restructuring deal.  The problem with the government just giving these companies more money is that when any tough negotiations have to take place, such as between the CAW and GM – the government ends up being the third party in the negotiations and the union and car company are more inclined to bargain just hard enough to get the bailout money.  This was evidenced by the recent sweetheart deal reached with GM and the CAW.

Bankruptcy will be a tough road but when an industry is so far over capacity and has different parties (companies, unions, pensions) then it might be the best way to get the fairest deal for everyone.  It’s kind of like locking 12 people in a room for a day and a half and demanding that they come up with an agreement on something.  That happened to me several years ago on jury duty and I can tell you that although nobody was happy with the final outcome – an agreement was reached.  Ok, it wasn’t really a day and a half – we were allowed out for dinner at a very expensive restaurant (courtesy of the taxpayer) and for sleeping overnight at a hotel.

Homer: Well, Marge, it was horrible. Everyone was against me in that
jury room. But I stood by the courage of my convictions and I
prevailed. And that’s why we had chinese food for lunch.

Should Wagoner have been fired?

I originally thought that the Wagoner – the head of GM was rightfully fired as CEO because the company had gone pretty far downhill under his lead.  However, after a brief discussion with Jim from Bargaineering.com on Twitter – I realized that maybe replacing him wouldn’t be that easy since he does know the company.  I also read that under his leadership the company went from 177,000 employees to 92,000 today which is an impressive feat.  Now, I think that he should have been kept on – it appears to me that he had the company on the right track but given the conditions of the last couple of years (high gas prices, recession) the goalposts kept moving on him which made it impossible to get the company to the right size quick enough to prevent it’s current situation.  Don’t forget that the pressures to downsize that exist today were not present in their current form before a couple of years ago.  Given that GM needs fixing asap – I’m not sure that he wasn’t the best person.

What’s up with Lewenza?

I wrote about Ken Lewenza – head of the CAW a while ago after he got a pretty sweet deal with GM.  This guy does a lot of negotiation through the media and I’m really starting to think that he sounds a bit like the Iraqi Information Minister who reached some fame during the Iraqi invasion.  It doesn’t seem to matter how bad things get for the car companies he still says things like

The message from the Saturday meetings was “almost unanimous that the pattern agreement struck at General Motors must be the objective of the union,” Mr. Lewenza said in a phone interview Saturday.

when talking about ongoing negotiations with Chrysler.

After the government said that GM must come up with a better deal with the union, Lewenza said the union will not reopen talks with GM.   Ok, Ken – good luck with that.