Everybody Loves Your Money

I’m home sick today.  Both my daughter and I are sick so we are just going to take it easy today.  She is getting to watch more TV than we normally let her watch, but she is such a good sport about not feeling well, that we think it’s okay.

On a slightly related note, it occurred to me that she isn’t getting a lot of exposure to commercials anymore.  We use Comcast “On Demand” for some of the shows she watches.  There are no commercials in these shows so that drastically cuts down on how many she sees.  It also give us the ability to really be selective on what she sees.  In addition, we have Tivo so we are able to fast forward through any other commercials.  She pretty much doesn’t watch any live TV anymore.  I love it.  The less commercials she sees, the less materialistic she might become.

All that mumbo jumbo being said, she definitely is tuned in to the Christmas season.  She knows that there are presents in her future.  She is 3 years old and over the past year, when she asks for something at the store, we’ve told her to put it on her Christmas list.  We’ve also tried to make sure she understands that just because it’s on the list, doesn’t mean she’ll get it, although at 3 years old, she may still be hoping that isn’t true.

Our plan is to buy her a couple Christmas gifts.  We plan to buy her a small radio that plays CD’s for her room.  It should be less than about $40-50.  We’ll also buy her a small toy.  Overall, we probably won’t spend more than about $75 on her, which is more than we’ll spend on each other.  The reality is that she will be getting so many different gifts from aunts, uncles and grandparents, that she’ll be more than content.  It’s amazing how excessive Christmas feels in this age of cheap toys.  More than a couple times, I’ve heard family members say, “I just had to get her both since they were so cheap”.

http://money.cnn.com/2006/12/06/real_estate/mortgage_apps

Mortgage applications rise as rates tumble.  I’m hoping for rates to continue their trend down.  My theory is that this might stabilize home prices for awhile.  I’ve read a lot of articles that point out the trickle down effect of lackluster home sales.  With fewer people buying homes, that also translates in to less consumer spending on all the items that a new homeowner needs.

http://www.philly.com/mld/inquirer/business/16164843.htm

Some great personal finance questions and answers.  I pity the guy that asked the first question, “If I sell my primary residence within one year of buying it, will I owe a capital gains tax?”  Poor guy.  He may be able to avoid some capital gains taxes if he’s moving for a new job at least 50 miles away, but that doesn’t help him with the amount of sales commissions and local taxes he might have to pay.  Chances are, in this market, he’ll lose his shirt.

The last question is also interesting.  The reader points out that she’s contributing 6% to her 401k and getting a 6% match from her employer.  Her son has been telling her to contribute to a ROTH instead.  The columnist points out that she’ll lose the match!  That just goes to show you have to be careful who you listen to when it comes to financial advice.  Just because there is a “know it all” in the room, doesn’t mean they know anything!

http://www.easier.com/view/Finance/Credit_Cards/Balance_Transfer

This is alarming.  This article states that over 4.2 million people in the UK still haven’t paid off their 2005 Christmas debt.  If you are still paying on your 2005 Christmas debt, you should really consider your priorities and think about starting a new tradition of a less materialistic Christmas.  Just my opinion.