LIVE BOLDLY!

Don’t DREAM it, BE it!

live

Almost a year ago, on Sep 10, 2017 at 9:58 AM I launched my blog.

My first article was The 52 Week Challenge, and the purpose of that first post was to serve as both an introduction, and as a source of encouragement. Every Labor Day Weekend I enjoy a fun-filled vacation at the shore in Ocean City MD. It’s my ‘happy place’. If you followed the advice of that first post, by saving away just $25 every week, then you too should have been able to afford a fantastic getaway vacation to a destination of your choice. This year I spent even more days at the shore going down every weekend in August. I jet skied and even parasailed for the first time. I had a blast being 800 feet in the air, strapped to a parachute, while being towed by a speedboat.  

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I was not always as wealthy as I am today, but I did not get to where I am by accident. I helped myself by reading self-help books and studying the habits of highly successful people. The knowledge I gained helped me grow as an individual and I’ve changed for the better as a result.

For years, I tried imparting the wealth building tips and tricks to friends and family, but sadly many of them ignored my well-meaning advice. I want everyone to be happy and successful. Now, through the magic of the world wide web, my blog posts have been read by people in 48 countries around the world. Hopefully each and every person who visited this past year found some useful and encouraging tidbit they could utilize in their own personal journey.

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Climb every mountain 
Ford every stream 
Follow every rainbow 
‘Till you find your dream…

“Climb Ev’ry Mountain” Song from the  1959 Rodgers and Hammerstein musical The Sound of Music.

We all have dreams of a better life and a prosperous future. These things don’t happen by accident and rarely are they handed to us. We need to work hard and plan if we want to be successful in our endeavors. Sometimes, this means long shifts at the day job. But if you’re working to have just enough to cover your bills, your dreams will disappear in a cloud of smoke. I’ve known people who toiled away at dead-end jobs, or who took meaningless ‘promotions’ that were paid little more than their underlings, but were filled with nightmare time demands and far more responsibilities.  I’ve had co-workers who died young from fatal heart attacks due to stress. My own father died at 57, never living to see retirement. Life is too short to be miserable.  If you’ve worked at the mall, or waited tables for years because ‘you like it’, or ‘it’s easy work’, then the only thing you’ve accomplished is to help someone else fulfill their dream.

It amazes me when I hear people advocating for a higher minimum wage because they can’t live on minimum wage. Minimum wage was never intended to be a ‘living wage’. I do understand that sometimes it’s hard to find a better paying job. When I was in college, I worked three different minimum wage jobs each week. I applied for my current job five times, and went to eleven interviews before I was hired, as a temp! The entire time I spent working multiple minimum wage jobs, I was doing little more than working or sleeping, but the point is that all the while I was also seeking the better paying job and actively pursuing it.  I never considered staying at any of my low paying jobs longer than necessary than to establish my credentials and prove that I was deserving of better jobs with higher salaries.  I also never gave up striving to improve myself.

You need to examine your life, as well as your financial situation. It’s the quality of the time you spend living your life vs. the quantity of time needed at work to reach your goals. A minimum wage job will not cut it.  The purpose of a minimum wage job is to provide training to a new employee, establish a work history, show responsibility, and prove dependability.  No employer will retain or promote a new employee who constantly displays irresponsible behavior, or a lack of dependability. If you have a history of quitting jobs, finding employment will also be challenging. No one is going to hire someone who is going to quit shortly after being hired. Your reputation is important.

Your attitude and charisma will open almost as many doors as who and what you know.

For several years now, I’ve been trying to establish a coffee shop. I’ve done a lot of research and leg work on the subject  as I’ve been building my resources. There have been several false starts. I’ve scouted more than a half dozen potential locations, and met with several potential allies. Three years ago, I received a phone call from the owner of a property I was actively and aggressively attempting to lease. I believed that this location in downtown Reading PA was a prime location as it was located near a movie theater, a community college, and a art gallery, as well as a block away from the bus terminal.
After several phone messages to the number on the leasing sign went unanswered, I crafted a courteous and well-worded business letter, which I mailed to the property owner, along with my business card and a very nice stainless steel coffee mug bearing my cafe logo.

Two days later, I received a personal phone call from billionaire department store tycoon Al Boscov. That ten-minute phone call was the most uplifting and empowering message I have ever received.

Mr. Boscov told me that he was impressed by all I had accomplished thus far, and that he was very proud of me. I can’t tell you what it meant to me to hear those words from such a successful businessman. Even thinking about it today brings tears to my eyes. It was like hearing the words of validation and praise I longed to hear from my father, had he lived long enough to see the man I grew up to become.   Words have power, and you can change the course of a person’s entire life when you give them encouragement and guidance at a crucial juncture.  Although I THOUGHT that the location was ideal, Mr. Boscov gave me several reasons why it was not as great a location as I believed it was. If a billionaire philanthropist tells you a location is not good, you listen. He saved me from a potential bad investment which I was too inexperienced to see. Before he ended the call, he told me that if he found a prime location in the city that he thought was suitable for a cafe, I would be the first person he called. I was on cloud nine for months after that phone call.  Sadly, last year Mr. Boscov passed away from cancer on Feb. 10th, 2017 at the age of 87.  Although I never met the man in person, I will never forget his kind grandfatherly voice, or the wonderful words he said.

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To dream the impossible dream,

To fight the unbeatable foe,

To bear with unbearable sorrow,

To run where the brave dare not go.

“The Impossible Dream (The Quest)” Song Andy Williams from the musical Man of La Mancha.

Don’t quit!

Life is not a destination, it’s a journey. As you travel down the road of life, you will meet many people who will try to discourage you, or dissuade you from pursuing your dreams. Just as it is important to examine your life, it is equally important to examine their lives. Always consider the source. Never take advice from people who are less successful than yourself. You’ll encounter many a wise guy or know-it-all who is filled with anecdotes, but has little results to show to back up their stories. That’s why I studied the habits of highly successful people and learned from their examples.  Knowledge is power, and the more you know, the easier it is to see through charlatans and phony pundits.

Always keep in mind that the hopes and dreams of these detractors and naysayers died long ago.

Because they were not successful, they don’t want you to be successful. Because they are poor, they don’t want you to be rich.  You’re smarter and better than them, and they are just jealous. Don’t let these emotional vampires suck the hope and dreams out of your life.

You will also encounter many false starts and set-backs as you pursue your dreams, but the important thing is to persevere! Don’t quit! Quitters never win, and winners never quit. Sometimes the end of one opportunity is the beginning of another. As I mentioned previously, I’ve scouted a half dozen possible cafe locations which all fell though, including one that was 99% a sure thing until someone threw a monkey wrench into the deal.  I’ve lost some money in the process, but it’s only money. You’ve got to spend money to make money and the knowledge I gained in the process provided me valuable insight.  My coffee shop dream is on hold at the moment while I regroup and rethink how next to proceed. I have not given up and continue to build up my cash reserves in preparation.   

As for the immediate future, I plan to edit, collate, and adapt the past 52 weeks of blog posts into an e-book. Not many people read blogs, but there are people who will download an e-book into their tablet to read,  especially if it’s inexpensive, so I might be able to reach a broader audience with my message.  If you’ve been reading http://www.InstantCoffeeWisdom.com from the start, then you’ll have read 100% of what the potential e-book will contain. Sales of the e-book will hopefully add a second revenue stream towards eventually opening That  Coffee Place.  I’m not sure what other financial topics to cover in the coming weeks, I’ve covered everything I’m familiar with, and I’m running out of ideas.  I’d love to hear any suggestions on money topics you’d like my opinion on.

“Do all the good you can,

By all the means you can,

In all the ways you can,

In all the places you can,

At all the times you can,

To all the people you can,

As long as ever you can.”

― John Wesley

We will not be young forever, nor will we live forever. Enjoy your youth and take advantage of as many exciting and fun opportunities as life presents. Collect memories, not things. Go places, try new things, meet new people and leave your mark on life. Be the best person you can be, and treat everyone with fairness and kindness, even the ones who don’t deserve it. You could be the bright light that leads that person from their dark place.     Make the world a better place when you leave it than it was when  you entered it. Experience in person all the great things that life has to offer, don’t live vicariously through others, or waste your life addicted to your electronics. Take pictures and record your adventures!  There’s so much more to see of life when you don’t waste your time staring down at your smart phone   constantly texting, tweeting, or playing game apps.

As always I wish you success and happiness!

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At Face Value!

Even a penny is a treasure!

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One of my earliest memories of my father involved him giving me a small metal treasure chest filled with old coins. In actuality, this was a just a metal coin bank, but unlike the usually piggy bank shape, this one was shaped like a stereotypical pirate chest one might see in an old movie, or in an illustration from a book on pirates. Although I was quite young at the time, I do remember three things about the incident.

The first thing was that my father originally told me a tall tale about finding the treasure chest buried in the yard by pirates. Not quite the right thing to say to a young impressionable boy with a vivid imagination. My first impulse was to grab a shovel and start trying to dig up the yard in search of more buried pirate booty. Upon realizing his mistake, retrieving the shovel and re-filling the holes in the back yard, my father confessed to making up the whimsical pirate story in jest to have a bit of fun at my expense. A kid will believe anything, they’re too young to know any better.

After a long explanation that pirates like Long John Silver and Blackbeard were not part of the modern world,  the second thing I remember was being delighted that the coins all looked different from contemporary money. I was old enough to know the difference between pennies, nickels, dimes, dimes, quarters, half-dollar, and dollar coins. A lot of the coins were from the 1800’s. This was my father’s coin collection, and he wanted me to have it to encourage an interest in both saving and collecting money. This is something which has stuck with me my whole life. A year or so later, my father died suddenly as a result of kidney failure.

The third thing I remember about the treasure chest of coins was that sometime after the death of first my father, and then my step father, my mother sold the coins to a dealer without my knowledge. It’s not like I looked at them every day, and we had to move quite a bit after she sold the house. Things ‘out of sight’ were always said to be ‘packed away in storage’ until I forgot about them. My mother only understood two things about money, she could spend it, and she never had as much as she’d like.

Bringing home the bacon.   

The origin of the piggy bank is disputed by different sources. Some say  that early coin jars in the middle ages were made of a type of clay called pygg. This word sounded like pig, and an English potter mistakenly created a pig-shaped bank when someone asked for a pygg money jar. There is little evidence to support this widely believed myth.  What is known is that sometime about 1900, the first modern Piggy Banks were sold in the USA, and they cost 25¢. Billed as a new novelty, these early clay banks didn’t have the removable stopper on the bottom of the bank. If you wanted to remove the coins, you had to smash the bank, or kill the pig, so to speak. Even to this day, whenever I empty my coin jar and take a bunch of wrapped coins to the bank, I say to the back teller that I killed the piggy bank.

I never quite understood the charm of a piggy bank, or of giving them to children to teach about saving. A coin jar works much better. It’s my humble opinion that parents who encouraged children to save money in piggy banks did so because young children have a nasty habit of putting everything they can grab into their mouth.  By making a game of putting the penny in the piggy bank, it helped keep the coins out of the mouths of babes. Of course, I may be mistaken, but that’s the nature of opinions.

The next time I became excited about coins and money was 1976, the USA bicentennial.  There was a lot of hoopla concerning our great nation reaching its second century. Tall ships sailed into NYC, there were extra fireworks around the 4th of July, a lot of patriotic symbols on all kinds of novelties could be had. And the money changed.  The  quarters, half-dollars, and dollar coins all had a special bicentennial obverse and a double date. Likewise, after a ten year absence, $2 bills were reintroduced with a bicentennial themed back depicting the signing of the Declaration of Independence. I had never seen a $2 bill. My mother was very excited. That was when I suddenly remembered about the long-unseen treasure chest of coins, which I then asked for, only to be told that that was ‘lost in the move’. As a consolation, I was given several specimens of all the new bicentennial money, including several $2 bills. I’ve had a love of $2 bills ever since.  I even have some Canadian $2 bills, both the obsolete paper money and the two loonie or toonie coin. Canada stopped printing $1 and $2 paper money back in 1986. Canadian dollar coins have a loon (a common Canadian waterfowl) on the obverse. They were nicknamed loonies. Some Canadians even started referring to piggy banks as loonie bins. In the late 1980’s Playtoy Industries of Toronto Canada manufactured a Giant Loonie Bank. Sadly, according to a recent news article, Canada says that currency which is no longer being printed will cease to be legal tender in the near future, and will become worthless paper.

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This takes us back to collecting coins and money in general. For the most part, money is the one collectible item that always retains its face value.  The USA considers all US currency to be legal tender. If you take a 1937 ‘Mercury Dime’ to your bank, you can deposit it into your account as 10¢. Once a bank gets a hold of old money, it takes it out of circulation never to be seen again. If you took it to a coin collector instead, you’d get more than face value. The silver content alone is worth more than a dime.  To collectors, the condition of the money and its rarity give added value beyond that of the face value. I save all kinds of old money. Some of it is for sentimental reasons, like my $2 bills. Others like my Indian Head pennies are rare. Some coins I have paid slightly above face value to get an entire set in ‘uncirculated’ condition. To collectors, uncirculated coins and collector proof sets command high value. The US Mint sells these collector proof sets for way above face value. The 2018 proof set has ten coins all bearing the ‘S’ mint mark from San Francisco with a frosted, sculptured foreground set against a mirror-like field. You get the five America the Beautiful Quarters, the Native American $1 coin, Kennedy Half-dollar, Roosevelt dime, Jefferson nickel, and Lincoln penny.  Face value, it adds up to $2.91. The US Mint sells it for $27.95 +S/h.   To me, it’s not worth the extra $25.04 for super-shiny, uncirculated coins. Some people buy these  proof sets every year for their children and grandchildren.  I’m not saying that they won’t increase in value among collectors, just that they only are worth face value if you spend them.  I can’t tell you the exact number of times some teenager came in to the convenience store I worked at back in the day with a horde of old coins. In my mind, I just knew that someone had raided grandpa’s coin collection, but the money was legal tender, and I was simply speculating on how it was obtained.  I would buy out the rare monies once they left, replacing the antiquities with contemporary counterparts from my wallet.   

I’m probably never going to cash in my coin and paper money collection, but it is a comfort to know that if something terrible were to happen, I could at least spend it for face value even if I couldn’t locate another interested collector willing to obtain the collection for a premium.     

“Loose Change” AKA “Penny Song”

Lyrics by Andrew Peterson

I’d give you all of me to know what you were thinking

And if I had one wish I’d wish I wasn’t sinking here

Drowning in this well, oh can’t you tell?

I can’t pick myself up off the ground,

Well I’ve been face down and pushed aside.

Well you know I’d rather just turn tail and run

than lie here in the sun and watch you pass me by

Cause I ain’t worth a dime.

(yeah yeah, oh yeah) Yeah, yeah (yeah yeah)

But If only I could stand up straight, I wouldn’t have to lie and wait,

I could up and roll away, never be ignored

I’ve got a feeling that I’m something more

than just a piece of copper ore, turning green and looking for

The reason I was born.

I’ve been around since 1964, in banks and bottom drawers

And on railroad ties. I’ve been passed around and cast aside

Skipped and flipped and flattened wide, Spun around

And thrown away and left alone to lie

But If only I could stand up straight, I wouldn’t have to lie and wait,

I could up and roll away, never be ignored

I’ve got a feeling that I’m something more

than just a piece of copper ore, turning green and looking for

The reason I was born.

(yeah yeah, oh yeah) Yeah, yeah (yeah yeah) na na na na na

But I heard about a penny found, lying underneath the couch

By a woman who was kneeling down, looking for some change.

Then the woman danced around and called her friends all over town

Told them what was lost is found, it’s another penny saved.

And so I find that all this time beneath the surface I could shine

Like all the gold a king and queen could measure

You see even a penny is a treasure

(yeah yeah, oh yeah) Yeah, yeah (yeah yeah) na na na na na

The 1987 movie Throw Mama From The Train stars Danny DeVito  and Billy Chrystal as Owen and Larry. Middle-aged Owen lives at home with his overbearing mother. He seems like he might be a little slow.  Larry is his writing teacher at the adult continuing education program he attends. There’s a scene that is genuinely emotionally touching  when Owen wants to show Larry his coin collection. Larry doesn’t want to see the coins, but Owen makes him feel bad when he says he’s never shown them to anyone before.  Owen slowly pulls out coins saying “This one is a nickel. And this is one is also a nickel. And here’s a quarter, and another quarter, and a penny.” Larry is annoyed at this, as the coins are all seemingly contemporary currency, and not worth anything more than face value. Owen then proceeds to explain how each coin is special to him because they were the change his Dad gave him during various father-son trips.  It’s a collection of coins from change his dad gave him, and that’s where their value lies.

Although the original coin collection my father gave to me is long gone, the special memory of the gift remains. Like any successful person who faces a setback, I started over, and in time I slowly began to amass a new collection of coins.  As my financial situation improved, I started adding things like old paper money, silver certificates, foreign coins, uncirculated coins, you name it. At face value, my collection is worth thousands. To a collector, it’s worth even more. As far as I’m concerned, it’s priceless, and not for sale. Someday, I too hope to pass my collection to my son, when I finally have a  son. Hopefully he will be able to keep it longer than I did my father’s. In either case, you can’t take it with you when you go, and a good man provides for his children, and his children’s children. Money is nice to have, but the memories we make with our loved ones are worth more than all the gold in Fort Knox. As always, I wish you success and happiness!   

It’s The LEASED You Can Do!

Why own when you can rent?

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It often amazes me when I see a privately owned RV sitting parked in storage on the owners driveway. Most of these so-called motor-homes cost between $100,000 and $300,000 and yet, day in and day out this Recreational Vehicle sits parked, unmoving.  Back in 2006, the late actor and comedian Robin Williams starred in a movie called RV. RV was a marginally funny, mostly forgettable comedy about a dad who tries to bond with his family by renting an RV for a cross country camping trip. Just about everything that you’d expect to go wrong does.  The film does illustrate a couple of points:

  •  Just about anything can be rented or leased.
  • If you’re going to do something infrequently, or only once, renting is better.
  • There are fewer problems with renting then owning. *

Everyone is different.

We all have different skill sets, different wants, and different needs. Our circumstances and situations may have great impact on our choices, but we still have a choice.

Growing up I wanted to get married, buy a house and have a family. None of these things happened. My reason for wanting a house was directly influenced by my desire to get married and have a family. I still can decide to buy a house if I really wanted to, but it doesn’t make sense to me in my current single lifestyle. Houses are liabilities. If you own a house, you are responsible for any and all maintenance or repairs that are needed to keep the house in good condition. So for quite some time now, I’ve been living in a rental apartment which I lease annually. The upkeep and maintenance are all included. When the water heater went out, the property manager replaced it. When the fridge died, I was given a new one. When the dryer stopped working, it was repaired. When the toilet was clogged last Saturday night, the super snaked it.  As long as I pay my rent and don’t intentionally violate the terms of my lease  living here is problem free.  Plus I don’t have to mow a lawn or shovel snow in the winter.

This past week, we’ve experienced heavy rains almost daily. This morning my co-worker told me he awoke to discover his basement was flooded. He’s got quite a mess to clean up and probable flood damage. I live on the third floor. I don’t have a basement to flood. 

In all the years that I’ve rented my apartment, had I been putting my money towards a mortgage on a house instead, I MIGHT have fully paid off the house by now, but every issue that happened to my apartment likewise, could have happened to my hypothetical house had I gone that route. I know people who have lost their houses because something serious happened and they couldn’t swing the upkeep, or they fell behind on their mortgage. Trust me, I made the right decision. My apartment is just the right size for all my stuff, and me.

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Two summer activities I enjoy are kayaking and jet skiing.

A kayak retails for between $179 and $900+ depending on make and model. I go kayaking less than a dozen times a year, mostly during July and August. I COULD easily buy one. Instead, I usually rent then when I want one. The usual rental cost is about $40 for a two hour rental, which is about as long as I enjoy doing it for. The great part is that I don’t have to store it, or lug it around. When I’m done, I just return it. No problem. Yes, buying a kayak could pay for itself in two or three summers, but supposed it got damaged or needed to be replaced? It’s much more important to me to avoid the hassle. Peace of mind is priceless!

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A new Sea Doo Wave Runner Jet Ski runs between $5,500 and $15,000 depending on the model and accessories. I can rent one for $100 per hour. I may go jet skiing only once or twice each summer. I live over a hundred miles away from the coast. It makes no sense to me to spend that kind of money based up my current living situation.

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Just about anything you can buy can usually be rented.

When I was best man at a friend’s wedding, I rented a tux for the day. Some women spend hundreds or even thousands of dollars for a wedding dress they will only ever wear ONCE. This never made sense to me. Just like a tux can be rented, some bridal boutiques do rent out wedding dresses.  I don’t care how pretty the dress is, the important part of the wedding is the marriage, not the dress. If the point of getting married is to start a new life together, wouldn’t it be better to put that money to better use then to waste it on a dress for one day? The main points of conflict in relationships are financially based. Why would  you sabotage a new life with a boatload of debt?  Trust me on this ladies, debt-free is the new dowry.  I avoid women with financial issues like I avoid the plague.  If you can’t handle money, you couldn’t handle me.

Just because you can, doesn’t mean you should.

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Just because anything under the sun can be rented doesn’t always mean you should rent it. I’ve never operated a back hoe, driven a bulldozer, operated a cherry-picker, or driven a truck larger than a two-ton delivery truck.  If you don’t know what you are doing, you can seriously hurt yourself or wreck the equipment.  Always make use that anything you rent either falls within your current skill set, or comes with instructions. I was nervous the first time I went kayaking.  Before I ever got near the water, I was given basic instructions,  helpful hints, and I asked a lot of questions. My first time jet skiing, I sat through a 30 minute class and took a boating safety test, followed by basic instructions and helpful hints. I also signed a liability sheet agreeing that should I fail to follow all the guidelines I would be accountable for any damage to the wave runner up to and including a full replacement of the vehicle.

You CAN lease a new car instead of buying one, but in my case, leasing doesn’t make sense. I drive too far and too often, and car leases have mileage restrictions.  I have to own my cars. Which brings us back to everyone being different. Only you can decide what is best for you. Sometimes a lease is better than buying, other times, not so much. Always read a lease agreement before you sign it because more often than not, breaking a lease has serious financial penalties.  As always I wish you success and happiness!   

A Penny For Your Thoughts?

Making sense of cents.

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If you’ve ever heard the saying “Penny for your thoughts”, and thought a penny was such a paltry sum, consider that when the saying was first coined in the 1500’s, a penny was a pretty fair amount.  

I do a lot of walking during my day job. About five to seven miles. Not a day goes by that I don’t find at least one penny discarded in the street. Although there are some who superstitiously believe that a penny face down is  bad luck, I disagree. A penny found is a penny earned and the only luck a person has is the luck they make for themselves. I also use these found pennies as a reminder to say a quick prayer thanking God for all I have. 

Way back in the 1970’s when I was a young boy, there was still a few years when you could go to the corner Spanish Grocery store and buy penny candies. I remember one of the last times I lived in that neighborhood when I walked into store with a dollar and asked for one hundred Big Bols, which Patricia dutifully counted out of the candy jar, and then handed over in a paper bag. I felt like I was the richest boy in Queens NY.  Big Bol was a cheap wrapped penny candy that was sort of a gum drop with a hard candy shell. Honestly I can’t even remember what they tasted like it was so long ago, but if pressed I’d say guava. Sadly, those days are long gone.

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A penny doesn’t buy much these days.  You can still stumble upon an online deal for a one cent item with free shipping, but most places simply dispense with the penny all together, or change shipping. Last week, I found a website that offered TOTALLY FREE (including shipping) 300 printed business cards. The back of the card advertises the company and reads FREE by 4OVER4.COM This is a loss leader and an advertisement at the same time, because they can write off the promotional item as a business expense and get free advertising, all while creating good customer relations with potential new clients . Quite ingenious.

Despite the fact that pennies don’t go as far as they used to and are often discarded, Americans still love our pennies and resist efforts to eliminate the coin. Our neighbors to the North abolished their penny in 2012. The Canadian penny coin was produced from 1858 until May 2012. Distribution by the Royal Canadian Mint ceased as of February 4th 2013. From 1982 until 1996, the shape of the penny was 12-sided rather than round. In 1997, the penny’s composition changed to 98.4 per cent zinc, with the rest copper plating. Since 2000, its composition has been 94 per cent steel.  Whenever I stumble upon a Canadian penny, it gets saved now in my ‘Canadian Penny Jar’.  I also save US Wheat cents and earlier, and I do have a few British large cents.

Production of the US penny coin has been continuous since 1793. Prior to 1856 pennies were produced in the large cent coin. There are not many of these in existence today because  many of these early coins were melted down as the copper was more valuable than the coin.  The US penny was made of mostly copper prior to 1982 when the mint switched production to the cheaper 97.5% zinc plated with copper coins still in use today. The US penny has been the same size since 1856 as it is today, but there have been some ‘cosmetic’ changes.

The two precursors of the modern Lincoln penny were the Flying Eagle (1856-1858) and the Indian Head (1859-1909) I once found an Indian Head Penny discarded in the ‘Need a Penny?’ tray at a Rutter’s convenience store in York PA when I stopped for gas. I couldn’t believe my good fortune at discovering the more-than-a-hundred-year-old coin sitting in the dish right on top, unnoticed by everyone except me!

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Abraham Lincoln (February 12, 1809 – April 15, 1865) was the 16th President of the United States. Considered the Last Casualty of the American Civil War, Lincoln was the first Republican president. He commanded the Union Army in its victory over the South in the bloodiest war the US ever fought in. The victory ended slavery in the USA, preserved the Union, and Lincoln is recognized as the greatest president of the nineteenth century.

In 1909 to commemorate the centennial of Abraham Lincoln’s birth, the US Mint replaced the  five decade old Indian Head cent with the Lincoln Wheat penny designed by Victor D. Brenner. A few early coins were produced with the designer’s initials VDB on the face of the coin. The front of the coin has the current profile of Lincoln, the obverse had two stalks of wheat, and read ONE CENT.   During WWII when copper was needed for the war effort, the 1943 steel cent was produced. Likewise I once found one of these wartime Steel cents discarded in the  ‘Need a Penny?’ Dish at a 7-11 convenience store in Reading PA.  The clueless clerk was rambling on about a person being dishonest and painting a penny silver in order to ‘pass it off as a dime’.  I nodded sympathetically while replaced the offending penny with a modern one, then left the shop with a huge smile on my face.

In 1959, on the sesquicentennial of Lincoln’s birth, the Wheat on the obverse was replaced with the Lincoln Memorial for the next fifty years.

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To commemorate the bicentennial of Lincoln’s birth in 2009, the mint issued pennies with four different designs on the obverse depicting scenes from the life of  Abraham Lincoln.

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Since 2010, the reverse side of the penny has sported the Union Shield.

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Yes, the US penny is a very common coin, but Abraham Lincoln was a very uncommon man. It’s quite fitting that even the poorest person in our great country can easily posses a coin bearing the likeness of this great man. As always, I wish you success and happiness!  

Do You Wanna LYFT?

Is using your new car as a taxi really a good idea?

lyft

I grew up in New York City which has an extensive public transportation system that covers a significant area. However there were times when waiting for a bus or train were not optimal and then we used taxis or private cabs. These drivers had CB radios in their vehicles, displayed their operator’s license, and had a meter ticking up your fare as you drove to your destination. Occasionally, some enterprising individual using his own personal vehicle would cruse the bus and taxi routes offering his car for hire. These ‘gypsy cabs’ were illegal and you always took a chance when getting into these stranger’s cars. It was like paying to be a hitchhiker. But if you didn’t have the money to pay for a real taxi, these mostly harmless entrepreneurs were there to fill the gap. Most of them were just trying to earn a living, albeit in a dodgy manner.   

As I stated in a prior blog, owning a car is expensive. If you have car payments and full coverage insurance, you still have to factor in vehicle maintenance and fuel costs.  One way or another if you want to keep your car on the road, you need to have some way of paying for it all. Enter Uber and Lyft.

 Uber (founded 2009) and Lyft (founded 2012 and pronounced lift, get it?) are companies that make ridesharing available through downloadable smartphone apps.  You simply download the app, request the car, and the Uber or Lyft drivers show up in their personal vehicles to drive you to your destination, much to the dismay of taxi and cab companies. Unlike the gypsy cabs of yore, these drivers are registered with their respective companies, and all payments are made via credit card to Lyft or Uber using your smartphone upon reaching your destination. You may opt to tip the driver in cash, or you can just include the tip (if any) in the credit card charge. This is all great for the passenger, but what if you’re the owner of the car?

Whether you choose to work for either Uber or Lyft or even both of them, you will need to meet some basic criteria.

You’ll need to display signage indicating that you are a driver for Lyft, Uber or both, and you’ll need to follow all the rules of the road. Tickets for speeding, not wearing seat belts, transporting children not in car seats, etc are the responsibility of the driver and will negate any income earned from ridesharing.

 Document Requirements

  • Driver’s license
  • Vehicle registration
  • Personal vehicle insurance
  • Driver photo

Vehicle Requirements

  • 2004 or newer
  • Fewer than 350,000 miles
  • 4 doors
  • 5-8 seats, including the driver’s
  • No limousines

Both of these companies do have liability insurance that covers the driver and rider during the trip with certain restrictions and conditions. Unless you have that rare rideshare-friendly policy, the only time you can count on your personal insurance is when you are driving for strictly personal reasons and getting into a accident while hiring out your car could end up costing you big time. All personal car insurance policies contain a clause that specifically excludes using your vehicle for commercial activities. Your personal insurance company may deny your claim as a result and refuse to pay. In a case like this, the Lyft company will cover you with their insurance, BUT they have a hefty $2500 deductible that you will be required to pay. Similarly Uber has a $1000 deductible. The ONLY way to be fully protected while using your car for rideshare services is to carry a commercial insurance policy which will run you $5000 and up.    

The Passenger from Hell

 As an independent contractor providing rides for your clients you may encounter many people of questionable character. Unlike a traditional taxi, there is no Plexiglas window dividing the front and back of the vehicle. You are alone in your vehicle with who-knows-what type of person and are opening yourself up to all sorts of potential verbal and physical abuse. There are numerous accounts of both Uber and Lyft drivers being attacked by the passenger from Hell. For this reason it is a good idea to have dashcam recording devices in your vehicle for your own personal protection. Obtain a GPS unit to track and record your comings and goings. If your passenger is involved in illegal activity, this may clear you with the police, and protect you from legal action. Some of these people may try to get you to break the law, like transporting their young children without a car seat.  Intoxicated passengers may vomit in your car. You name it, it can happen so make sure there is some record other than just your word vs. their word. Also inform any passengers the moment they enter your car that the trip is being recorded for safety reasons because failure to inform them that they are being recorded may get you into hot water. If they are resistant to that idea, they are free to hire another car, but if they have nothing to hide, they should be understanding. Also, keep conversations to a minimum and avoid personal information or hot topics. You are a driver, not their friend. Additionally, these people rate your performance and bad ratings could reduce the number of future fares.  

 Where am I?

 A passenger not used to driving may tell you to drive to a certain road and then make a turn which would be the wrong way up a one way street. You may be totally unfamiliar with the area and have no idea where you are going. Speed limit signs might not be obvious. Having a GPS unit in your car will help to avoid these situations when driving in unfamiliar areas.  

 The Tax Man

 Keep in mind that income is INCOME and is taxable! You will be required to track all of your income and expenses and will be expected to reconcile these come tax day. Many of the items you need for operating your car as a rideshare vehicle may qualify as legitimate business expenses so contact a certified public accountant to learn what may or may be covers, then keep records and receipts. Always remember that your money is YOUR money and you want to keep as much of it as possible

 I made HOW much?

 Although it seems like using your own personal vehicle as a rideshare sounds like a great idea on the surface, when you break down the costs, it’s not really worth the hassle in my opinion. According to the IRS, using a vehicle for commercial purposes averages about 54¢ per mile.

 This breaks down to:

  • Fuel 12¢
  • Depreciation 24¢
  • Repairs and Maintenance 9¢
  • Insurance and Paperwork 9¢

Considering this, at best case, you’ll be earning about minimum wage for all the trouble you’ll be going through. Wouldn’t flipping burgers at McDonald’s be easier? As always I wish you success and happiness.    

Do You Really NEED A New Car?

Can you rely on a used car?

newCar

There’s no smell on earth quite like that ‘new car’ smell. I really think that everyone should own a new car at least once in their lives. The only two draw backs of a new car are the price and the depreciation.  New cars are EXPENSIVE! In most cases if you buy a new car, you will have to finance it, and depending upon your credit rating and the term length of the car loan, you can expect to  pay hundreds if not thousands of dollars in interest. Additionally,   when you finance a brand new car you are required by most lending institutions to have the vehicle FULLY insured. If you own a car outright in the USA you can get away with really inexpensive liability insurance that covers the damages to another vehicle should you be at fault. You can further reduce the cost of insurance by opting for limited tort insurance which places a limit on how much you can sue another driver for should they cause you bodily injury and financial loses. Of course, how much you pay for car insurance also depends on how safe a driver you are.

With the possible exceptions of the first year of a new model,  there’s usually nothing more reliable than owning a new car especially if you depend on the vehicle for transportation to and from your day job.  But there’s more to think about besides just the monthly loan payments before you  decide to buy that brand new car. You should examine your needs, motives, and current situation.

Do you even need a car at all?

I’ve owned eight cars so far in my life, all but three were used. My first car was a ’71 Bug.

cars

Next I owned:

  • ’80 Chevette
  • ’89 VW Fox (New, but a remainder that sat on the lot until 1991)
  • ’80 Pinto (I miss that car)
  • ’97 Escort (New)
  • ’91 Tracer
  • ’96 Accent
  • 2002 Accent (New, now 16 years old with over 475,000.)

I grew up in New York City. Specifically the town of Woodhaven in the borough of Queens. In NYC there’s really little reason to own a car because the public transportation system will get you almost anywhere in the city, by train or bus, round the clock, seven days a week, even on holidays. And there’s also taxis, private cabs, and now Ubers and Lyfts to get you where you need to go.   So I didn’t learn to drive until I moved to Pennsylvania for college. I got my driver training at the Wilson Driving School. In Lancaster PA, a car is really a necessity, and those early years living in this state prior to 1993 were a nightmare when I was without a car. Buses to when I lived didn’t even run after 6 p.m. and there was only so far I could travel on foot or by bicycle, weather permitting.

Now having lived in both places, one where a car is an optional luxury for convenience verses one where a car is an absolute necessity, let me tell you  I’d much rather have a car I don’t need than need a car I don’t have. Public transportation is great for some people, but I love to travel and I want to go where I want to go, whenever I want to go. If you live in a big city with an extensive public transportation system that suits your needs, and you don’t suffer from wanderlust then you really don’t need a car at all and you can save your money.

If a NEW car is a must have…

You have to decide what kind of car you need, and if it must be new or not.

My first NEW car was a 1989 VW FOX. The 71 Bug lasted only four months, I brought it used for $500, it needed rust repair, and I sold it for the same amount. I brought a used Chevette for $1000 which I drove around for a year before trading it in towards the VW FOX.  I COULD barely afford the car, and the insurance, UNTIL I damaged it, and couldn’t afford the repairs to the front axle and didn’t have enough to cover the deductable. So the car sat undriven in a friend’s driveway,  I cancelled my insurance, and I took the bus to work. UNTIL I GOT FIRED. When I was unemployed, the first thing I did was to surrender the car back to the dealership that financed it as a voluntary surrender.   I explained the situation, I was not going to play the ‘car, what car?’ game until the repo man found it, I just said here it is, here’s the keys, sorry.  Trust me, THAT was my BEST option. I ended up unemployed for almost the entirety of 1992.

So the above tale of woe covers the next set of considerations.

if you have a car loan:

  • Will you be able to keep up the payments should you lose your job?
  • Will you be able to pay for repairs and maintenance?
  • Can you afford the insurance?
  • Do you have GAP insurance should the car be totaled to cover the difference, or will you be making payments on a large crumpled paperweight for several years?  

Never buy a car that is more that you can afford. Don’t but a Jaguar if a Jetta will do. Don’t buy an SUV, a truck, or a van if all you need is an economy car to get to and from work. A car is for the most part, an A to B machine. If you’re not going off road, you don’t need an off road vehicle like a Jeep. Plus consider the cost of gas. Do you really want something that gets 18 miles to the gallon for a daily driver? My Hyundai Accent gets 40 Miles to the gallon, and is adequate for MOST of my adventures. I do plan to buy a Jeep Wangler in the  near future, as a SECOND vehicle for adventures.

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If a USED car will suffice…

There’s a brand new shiny super stocked Dodge.

And ev’rybody’s sayin’ that there’s nobody meaner than

The Little Old Lady From Pasadena.

She drives real fast and she drives real hard,

She’s the terror of Colorado Boulevard. – The Beach Boys, The Little Old Lady From Pasadena

 

Bear in mind that whenever  you buy a used vehicle, you are buying every misdeed the previous owner subjected it to. Did they keep up the maintenance schedule? Was it involved in undocumented accidents? Did they punish the vehicle mercilessly or were they gentle? Highway miles, or city gridlock with potholes thrown in for good measure? Is there a warranty? Every used car dealer will swear that their cars were only driven by a little old lady, once a week to church. Of course that little old lady may have been from Pasadena…

Also, most lending institutions will ONLY finance a used vehicle up to so many years, and miles. Remember what I said earlier about making payments on a large paperweight.  If you finance a five year old car for five years, you’re bound to have something major occur. If you don’t have an emergency fund to cover the repair costs, including towing and renting a temporary replacement car, you could be in trouble and without a car for a long time.

Here are some possible repair costs:

repairs

Over the last sixteen years that I’ve owned my current 2002 Hyundai Accent, I’ve replaced EVERYTHING at least once, sometimes two or three times. I’ve probably been towed in for repairs at least a dozen times, and if you live in the USA as I do, I HIGHLY RECOMMEND signing up for AAA (American Automobile Association) or if you live in Canada they have CAA. Trust me, one tow cost will pay for the basic membership fee. I splurge for AAA Premier because of the long distances I drive, and even that is well worth the fee. An ounce of prevention always beats a pound of cure!    

In EVERY case, I still managed  to keep the repair costs for the year under what a year’s worth of car payments would be. It’s always been cheaper to keep my car than to replace it, and I look forward to hitting the 500,000 mile mark sometime within the next  twelve months. I haven’t had a car payment in fifteen years, and my insurance is less than $500 a year.  Hopefully you will be as fortunate with your next car as I’ve been, As always I wish you happiness and success!

Gone Phishing?

Beware of Cyber Scams.

gone phishing

Back when I was a young boy and living with my aunt and uncle in Woodhaven, I remember this one day when my late uncle John got very excited because of a letter he received in the mail. It was from Publishers Clearing House informing him that he was in the top 5 to be entered in a drawing for $500,000! He happily showed the letter to my Aunt Arleen, who promptly grabbed it and proceeded to quickly tear it into little pieces. My uncle was devastated.   

It amused me greatly. At 13 years old, even I knew that the letter was a scam designed to entice ignorant people into subscribing to magazines in the hopes of winning that big cash prize. The one that some ‘lucky winner’ was guaranteed to receive. I could never fathom how some people could be so gullible as to fall for such things. Unfortunately the elderly are the ones who  fall for such scams quite often.

Not born yesterday.

You may have heard the sad tale of Richard Overton, the oldest man in America and a World War II vet who at 112 years old had his entire bank account drained by thieves who managed to use his social security number to gain access to his bank account in June 2018.

Newsflash! Your bank is NOT going to call YOU on the phone and ask YOU to verify YOUR information.  Even in the event that YOU call your financial institute for some reason or other, they only usually ask  for the last four digits and your date of birth if they ask at all. Yet time and again, people fall for such scams.  The number of scams that exist today is so extensive that entire books have been written on the subjects of cyber crimes, phishing, and identity theft.

You’ve got a friend in Nigeria!

One of the most well known internet scams involves receiving an e-mail from the relative of a member of a royal family who was murdered during a civil war somewhere in Africa. This person will cut you in for a percentage of their vast wealth IF you can help them recover their inheritance by sending them a little now money to help them accomplish this task.  Over six billion people live on this planet, and this person you’ve never heard of in a country you’ve never been to has sent you an e-mail asking for help? Does this make any sense at all? It’s hard to believe that people can be that stupid, yet for years that scam circulated from one e-mail account to another and  dumb people fell for it over and over.

Anyone e-mailing you asking for money, pretending to be in trouble, or informing you that you’ve won some fantastic prize or lottery and need to send a ‘processing fee’ is trying to scam you.  

How do you spell that again?

Another popular scam involved either misspelled website addresses, or using the wrong domain extension at the end of a web address to confuse people into visiting a bogus website and thinking it was legit.  Back in the early days of the internet, the default extension for a website domain was ‘.com’ but there were others, such as ‘.net’, ‘.org’ and ‘.gov’ which some people were unfamiliar with when the home computer boom took off in the early 1990’s. Scammers used to buy up domain names to create fake sites that seemed legit. One early fake site started in 1997 was whitehouse.com,  the real site is whitehouse.gov  with the extension .gov used by government agencies in the USA in place of the popular .com. The fake site used to redirect clueless victims to a porn site. Today whitehouse.com is an anti-Trump site,  protesting everything that’s good about the USA including our president.

Today there are over 1000 top-level domains (TLDs) for internet addresses, covering everything from ‘.abb’ to ‘.zw’.       

A popular trap that many people fell into was visiting these seemingly legitimate sites that were in no away affiliated with the real site.  Take the American post office for example. There are people looking for jobs, or  maybe there are people that have moved and want to change their mailing address. There are scam sites that pretend to be the United States Postal Service that are totally bogus and will charge exorbitant  fees for both of these simple procedures. The REAL website is http://www.USPS.com and they charge $1.05 to change your address. Employment and the required exam are BOTH FREE.

 Your computer is infected!

There’s nothing more alarming than having a pop-up window open telling you your computer is infected with a million viruses and that the ONLY way to fix this is to BUY this antivirus NOW from this site.  Malware and ransomware  will destroy your computer if you fall for this scam, and you’ll probably need to cancel your credit card if you were foolish enough to type it in and purchase this ‘cure’. I know of at least one former friend whose know-it-all teenage son fell for this.

Your mystery date is waiting.

I’m sorry, but from what I’ve seen internet dating sites are bad ideas to be avoided altogether whether they are scams or legit. Even the REAL sites are polluted with fake profiles, so why bother.  

In summary, there’s many ways to fool yourself into believing pie in the sky claims, but in the end pipe dreams are just that.   There’s an old adage, “if it sounds too good to be true, then it probably is.” You shouldn’t have to be reminded of this fact over and over again. As always, I wish you happiness and success!