Yesterday, I was walking to the Portland State University library to do a little blogging and saw a big van with a sign “We’ll Pay You $1.00 to Watch This 4-Minute Video.” How could I say no to that? A volunteer led me to one of the 10 video monitors installed and I spent 4 minutes watching a segment of the Farm to Fridge video.

Vegan Outreach promotes cruelty-free eating and the video showed how animals are mistreated in modern day farming. It started off quite grisly with a clip of male chicks being ground up. Apparently male chickens on egg farms are not a viable product so they just get rid of them as soon as they hatch. The video continued with more disturbing videos of chickens, pigs, and cows. After 4 minutes, I was a bit queasy and quickly took the offered $1 and a “Guide to Cruelty-Free Eating” (how to eat vegan) pamphlet.

Anyway, I was wondering, what you would do for a buck? I think 5 minutes of unpleasantness for a buck is about the limit for me. I wouldn’t watch an hour of disturbing video for $12 though. We have been trying to eat more vegetarian meals already, and the video was still very disturbing.

Here is a short list of what I have done to make a buck or two

• Pick up coins from the fountain – Once in a blue moon, the city drains the fountains for cleaning, and I say coins are fair game then.
• Mystery shopping – A few years ago, I watched several movies for mystery shopping assignments, and that was about it. There weren’t a lot of assignments in our area. If I ever have more time, I probably would try mystery shopping again.
• Sell used stuff – It’s easy to sell used stuff on Craigslist. It’s a great way to make a few bucks instead of throwing things away or just locking them in storage.
• Tutoring – I did some tutoring when I was in college. I’m not sure I can do it now since none of these subjects are fresh in my mind anymore.
•  Focus group/surveys – Mrs. RB40 used to fill out surveys by mail, and received a few bucks in return.  Most of these questions were about infant formula, and did not take a lot of her time.

Here are a few things that I would like to try when I have more time

• Medical experiments – I haven’t done this yet, but when I have more time, I probably would sign up for some assignments. Here is a local study to predict glaucoma development. It pays $50 for one visit. This is a perfect assignment for me because my family has a history of eye problems. Maybe I’ll try to get on board after I turn 40 (the eligibility age.)
• Baby sitting – I wouldn’t mind baby sitting at all. I think having another kid around for a few hours wouldn’t be a big issue, and Baby RB40 would love it. Most parents probably trust a woman more, though. Isn’t that a little sexist?
• Yoga – At one point I considered getting a yoga teaching certificate. I love practicing yoga and this would be a great way to do it regularly and make a little money on the side.
• Focus group/food tester – How about tasting new food and getting paid for it? I just found the Food Innovation Center while researching side hustles.

The lack of time is a huge factor here. Even now that I’m not working a full time job anymore, I rarely have time to do anything extra. When Baby RB40 goes off to school, I’ll have more time to try to make few extra bucks.  Another factor is that I would be doing this more for fun rather than serious earnings, though if I do make any extra, it would feel like a bonus!

What about you? Have you done anything to make a few extra bucks lately? Please share some ideas. 

What would you do for a buck? is a post from: Copyright © 2010-2011 Retire By 40 All Rights Reserved

The following is a guest post from Cindy who writes at Midlife Finance.
After my post on ways to hedge your bets for expenses and investing, one commenter asked about investing in gold. Was it a good option for safeguarding your money?

Well, yes…maybe.

First, it’s necessary to decide how you want to deal with these precious metals. (I’m adding silver into the discussion, though other metals, like platinum and copper, are also significant.) People have been using them for coinage and ornamental purposes for thousands of years; early civilizations like the Sumerians and Egyptians seem to have focused primarily on gold for jewelry and ornamentation.

Weighing your choices

Gold is measured by troy ounces (12 troy ounces to a pound). It’s extremely heavy for its volume; ‘specific gravity’ gives it a weight more than 19 times heavier than water. (Gold-panning miners rely on this, looking for gold in river bottoms, where it would sink and become lodged in crevices.)

Silver is also weighed by the troy ounce. Sterling silver is 92.5%, or 0.925 pure. ‘Fine’ silver is typically 99.9% (0.999) pure, though some countries’ silver can vary — Mexican silver, for example, can be 95% (0.95) and British silver 95.8% (.958), instead. (Look for the markings to help you determine this on jewelry — a Google search on ‘silver markings’ will produce a number of lists and tips on how to do this.)

When gold is used in jewelry, it’s measured by the karat; a word related to the carob seed, which was used to balance scales in the Orient. (‘Carats’ are for measuring gemstones.) Pure gold is 24 karat; however, most jewelry in Europe is only 14 or 18 karat. In the Middle East, India and Asia, however, jewelry can measure 22, 23 or even “chuk kam,” nearly 24 karat.

How to invest

Gold is sold as bullion (bars) and coins. Popular choices for the latter are the American Gold Eagle, South African Kruggerand and the Canadian Gold Maple Leaf. Each of these modern coins weighs an ounce, and as of this writing, are selling for approx. $1400-1600 each. Silver is also sold as bullion and coins, though many of the coins seem to be more commemorative than legal tender.

There are other options. You can pay a company to ‘hold’ your gold. (They store it, you get a certificate saying you own it.) You can buy stock in mutual funds or ETFs based on gold, silver and other precious metals; short and long-term futures; or stock in companies who mine or process ore. (Look for an IPO if you want to get in on the ground level, though that’s not necessarily a guarantee of overall value.) Or, like Robert Kiyosaki of Rich Dad, Poor Dad (affiliate link) fame, you can buy your own mines. (He currently owns gold, silver and copper mines, as well as shares in other mining operations.) Interestingly, silver mines are less common than gold ones; in fact, silver supplies have decreased more significantly over the decades than gold, in spite of gold’s higher price.

And of course, there’s always jewelry. Some regions, like Taxco, Mexico, are famous for their beautifully heavy silver bracelets, necklaces and rings. (‘Pawn silver,’ a term for antique silver-and-turquoise squash blossom necklaces, bracelets and other jewelry from the American Southwest, is also highly valued.) The gauge, of course, is purity and weight. A typical gold ring, for example, generally weighs from 3-7 ounces, depending on how much gold is actually in the ring. (However, you would probably only get 25% or less of its ‘spot’ value, if selling to a ‘scrap gold’ firm.)

Some cautions

Precious metal prices fluctuate, depending on what’s happening in world and financial events. Gold’s ‘spot’ price, as of this writing, is $1385 USD per ounce, with coins slightly higher. (It dropped to $1377 the night I finished writing this article.) That price is an improvement — gold has taken a beating in recent months, 10-18% or so less than what it valued 5 months, or even a year ago. (At least 6% of that loss has come just in the last month alone.) Experts are explaining the drop by mentioning a stronger U.S. dollar, the lack of inflation, consumer price indexes dropping, etc. as well as a huge recent “sell-off:” investors who’ve cashed in short and long-term futures contracts. (So many occurred that these were being resolved in cash, without a bit of precious metal exchanging hands.)Who knows for sure.

Silver’s ‘spot’ price is much less than gold’s – ranging from $22.50- $25 an ounce in recent weeks. It also has dropped in recent months. Some experts suspect that its price is being kept artificially low. (By large banks, they dramatically charge). There have been people who attempted to corner the market on silver, most famously the Hunt brothers in 1980. (They failed, and nearly bankrupted themselves in the process.) At least one expert argues that it will change more quickly:

“Silver should be trading at 128 dollars an ounce, adjusted for inflation since 1980 and probably would be except for the manipulation of the silver price…At that time silver was hovering around the 18 dollars an ounce mark. Now it is…rising, and the possibility of reaching the 128 dollars an ounce level is becoming increasingly real…In addition silver production is not expected to grow in 2010- 2012 with the supply side of the coin expected to remain bullish.”

Silver is also extensively used as a component in manufacturing, including computers, making its pricing even more interesting.

Helpful tips

I’m not an investment professional — but these have consistently worked for us. Others are worth considering. (Disclosure: I do own stock in a Colorado gold mine – which has steadily gone down. Husband regularly invests in junk silver – which has been doing great.)

*Gold and silver are traditionally considered a financial hedge. In the past, when the stock market was down, precious metals’ prices were apt to go up. (This hasn’t always happened in recent months, but in the past 30 years, gold and silver has generally held or increased in value.) At the very least, investing in either one will help round out your investment portfolio.

*Some countries are stockpiling. India’s been buying and holding record amounts of gold – and now China is following suit. This can partly be explained by both countries’ appetite for gold jewelry; in India, it’s an integral part of the marriage process. (“No gold, no wedding,” or so the saying goes.) Is something else going on here? It bears watching.

*Purchase modestly. Like stocks, you’re generally better off buying a measured amount over time, rather than one big purchase. Prices tend to fluctuate, and this gives you a better chance of catching the low prices, along with the higher ones. (I like Warren Buffett’s rule of thumb: “Be greedy when others are scared.”)

*Invest in currency you could spend, if you had to. Junk silver coins are still moderately priced, and not too difficult to find. (More about this here. ‘Junk,’ by the way, refers to the coins’ melt, or bullion value, not face value.) Look for half dollars, quarters and dimes minted in or before 1964, when coins were still 90% silver. These include Kennedy half dollars, Washington quarters, Mercury and Roosevelt dimes. (Kennedy half-dollars from 1965-70 have 40% silver content.) Ebay and other sites are full of dealers offering bags or rolls of junk silver; just make sure you know what the melt price is before you buy. (Coinflation.com is a good place to check.)

*Antique coins are an interesting possibility. One Ebay seller currently has a 1913 US ’10 dollar’ gold piece priced at a little under $850; Morgan silver dollars from the same dealer ranges from $65 (worn) to $260 (‘extra fine’). (A decade or so ago, I bought a handful of Morgan silver dollars for $8 each from a dealer — wish I’d gotten a bagful!) Excellent condition (‘grading’), date and rarity can push prices up even more. 

*Coins from shipwrecks (the famous ‘pieces of eight’ and such) are a romantic way to invest. Their provenance does increase the price, compared to the metal ‘spot’ value — but they’re also collectible. Case in point: the sidewheel steamer S.S. Central America, which sank in 1857, along with a full passenger list and 3+ tons of gold –an estimated third of California’s Gold Rush output for that year. (Its loss triggered a huge financial ‘panic’ that affected the entire country.) When the shipwreck was discovered and salvaging began in 1987, it yielded an estimated $100-150 million in gold, ranging from coins and bars to gold ore. A number of the coins were rare or unique examples from California mints, preserved in remarkable condition. (The company is currently marketing new reproductions of some of these old coins in 2.5 ounce versions, by melting down some of the Gold Rush bullion.)

*Keep your eyes open. Reading websites from a variety of sources, U.S. and non-U.S., are a good way to compare opinions, statistics and research. (The London Market Bullion Association is a good place to start, especially their prediction pages.) Read any articles you can on investing in precious metals – especially from sites and publications that are not actively marketing it.

*Don’t just stash away your investment – enjoy it. Gold earrings and  a graceful chain complement a pretty ear or neck. (A coin is an unusual and oft-appreciated gift too, especially when its value is emphasized.) Why not use or wear some items on special occasions? Brides in India do it — and so can you. 

Disclosure: Affiliate link to Amazon included in this article. We make a little commission if you buy something from Amazon after following the link.

Investing In Gold And Silver is a post from: Copyright © 2010-2011 Retire By 40 All Rights Reserved

On Wednesday, I was sitting at the library trying to come up with an idea to blog about. Actually, I had a “to blog” list, but none of them struck a chord with me, so I started reading some magazines instead. Luckily, I found an article in Money Magazine that I can comment on – “My very cheap day” by Kristen Bellstrom. (Thanks to Brian for finding the link for us.)

It’s not easy for frugal folks to cut expense

Her mission was to spend one day trying to cut every expense she encountered. Aha! I already found something to disagree with.

“While this would be (heavily discounted) cake for more frugal folks, when I am asked to choose between convenience and savings, I confess to have an unfortunate tendency to go with the former.”

Let me tell you, it is not a piece of cake for frugal folks. We are already frugal so there isn’t much more to cut! She chronicled her discretionary spending throughout the day and showed us how she saved $87.93.

Anyway, it seems like Kristen choose a good day to be a cheapskate because she had to run to the drugstore, grocery store, coffee shop, dry cleaner, and eat lunch and dinner out. She was able to save $87.93 and that’s pretty good, but I’m surprised at her burn rate. I guess being a single New Yorker can be quite expensive. It seems that on a normal day she spends about $110? That’s a lot of money and we’re not even counting housing, car, and other fixed expenses.

Her story inspires me to share my Wednesday.

RB40′s very cheap day

8:00am Breakfast home ($1)

Split with Baby RB40: 1 Thomas’ everything bagel, Neufchatel cheese, and fresh chives from the community garden. I had coffee from our French press and Baby RB40 drank whole milk.

10:00am Runabout at the park ($0)

We went for a quick walk around the neighborhood. We usually go to the playground, library, or walk to the river, but it was raining today so we just took a short walk.

Noon Lunch at home ($4)

I stir fried some Yakisoba noodles with broccoli, carrots, onion, and a little beef. Grandma RB40 made gyoza from last night’s leftover wonton soup filling. Everything probably cost less than $4 to feed 2 adults + toddler.

2:00pm Blogging at the library ($0.50)

I took the streetcar to the library to catch up on blogging. Baby RB40 stayed home with Grandma and took a nap. I paid $100 for the streetcar annual pass and it works very well for me. It probably cost about 25 cents per ride considering how many times I ride it. At the library, I caught up on my emails, did some blog maintenance, and wrote most of this post. I also got 2 books and 7 DVDs.

5:00pm Happy Hour ($0)

This is a bit unusual. One of my old coworkers found Retire By 40 on the internet and wanted to chat. Usually, I’d be home getting dinner ready at 5pm. I had an IPA and a snack, but my old pal generously paid the bill. Thanks man!

6:30pm Dinner at home ($5)

I went home after happy hour and everyone already finished dinner. They had beef broccoli stir fry, some fried eggs, and rice. I ate a bit too.

Baby RB40 practicing his choke hold.

7:30pm Really small snack ($1.25)

Mmm… This will sound very extreme cheapskate…. We had half a piece of chocolate left. It was the last piece of some really nice truffles Mrs. RB40 got for herself for Mother’s Day. I was going to split the last piece with her the previous evening, but she was conked out so I saved her half. Anyway, she said we could have it, since she had eaten another one earlier, so I split the half with Baby RB40. So we each had a quarter piece of the tarragon grapefruit truffle and it was quite yummy. Baby RB40 also munched on some dried apricots.

We took Mrs. RB40 out to Tasty n Alder for a nice brunch on Mother’s day so I’m not that cheap. It was also National Train Day on Saturday so she got to see some trains as a bonus. What a lucky mom! Sorry to get sidetracked. Let’s get back to Wednesday.

8:00pm More snack because the ¼ truffle wasn’t enough ($2)

Baby RB40 wanted more food so I found some cheese and crackers for him. He scarfed down 6-7 Ritz crackers and some nice soft goat cheese spread from the farmer market. I had a bit too.

Total estimated expense: $13.75

80/20 Rule

Our expense is a whole magnitude smaller than Kristen’s, but I do have some serious advantages. I’m not working in an office anymore and don’t have commuting or dry cleaning expenses. We also eat out only about once per week or so.

This whole exercise reinforced how the 80/20 rule works. You can get 80% of the result by applying 20% of the effort. Cheapskates like me already cut our expenses and it’s much harder to trim any more fat. I guess we can eat less expensively, but why do that when we don’t have to?

On the other hand, Kristen was able to cut 80% of her expenses quite easily. She sounded frazzled by the end of the day, though and I wonder if she can keep this up. Hopefully, she can come to a happy median and spend less money while staying content.

For me, I think we have achieved our 80% effectiveness already. I’d say on the cheapskate scale of 1 to 10, we are at 7 or 8. Kristen was probably at 2 before her cheapskate day. How about you? Can you trim any fat from your expenses? Would you want to?

Related article – No one ever get rich by being frugal.

My Very Cheap Day is a post from: Copyright © 2010-2011 Retire By 40 All Rights Reserved

Recently I read an article asking what advice you would give your 23 year old self. (Sorry, I forgot where I read this.) This is a very interesting question because it is a very personal question. It is not a generalized topic like the series I wrote about retirement advice for young folks. Everyone has a different life experience and this kind of question makes you think about what you could have done differently.

If you’re gonna build a time machine into a car, why not do it with some style?

Let’s see where I was when at 23… I got a Master degree in Electrical and Computer engineering and was already working at Intel. Future Mrs. RB40 was struggling in the Peace Corps back then so I only had to worry about myself.  Financially, I was doing well and did not have any debt. On the other hand, the only asset I had was a beat up ancient Toyota Cressida.  I was saving more than 15% of my salary and was just starting to invest in the stock market. I think I did pretty well overall, but if I had a time machine, here is some advice for young RB40.

Go It Alone

When I first started working at Intel, it was challenging and a lot of fun. I learned so many new things and met a bunch of really smart people. It was great to be making money as well. However, now that I know more, I would tell my younger self to consider going to a smaller company or becoming self employed instead.

The big corporate environment doesn’t agree with my philosophy so it would have been better to get out of there earlier. The longer I waited, the more difficult it was to leave the mother ship. My potential was limited in a big corporation and I think I would have done better in a small start-up  I had always worked better in a small team or by myself anyway. Even when I was in school, I never liked going to pep rallies or big sporting events. I’m more of a loner type than a team player. I should have put in 60 hours/week working for myself rather than for a big corporation.

Networking

Networking is one of my biggest weaknesses. It’s hard for me to build relationships and form lasting friendships. I would tell my younger self to put more effort into networking and learning from mentors. I was always much more comfortable talking to my peer group rather than older more experienced folks. I think the lack of mentors and role models really hindered my personal growth in the long run.

Get into emerging media

The last 15 years was a very dynamic time in technology. I should have paid more attention to things like blogs, Twitter, apps, and YouTube. I started Retire By 40 in 2010 and I feel like it would have been much better if I kicked it off a couple of years earlier. There are so many opportunities to make money with new technologies and if you get in early, you would have a huge head start. It was tough because I was working 60+ hours per week quite often in my 20s and just wanted to have fun when I got out of work. It’s also hard now because Baby RB40 doesn’t give me much spare time. Maybe once Baby RB40 starts school, I can seriously get into new technologies.

Housing

I lived in an apartment when I was 23 and bought a newly built house a few years later. Now, I think it would have been better to buy a duplex in a good location instead. I could rent out one unit and learn how to be a landlord. Living at an older duplex would given me a lot of opportunities to learn more about home repairs and maintenance.

Get rid of video games

Man, I spent a ton of time playing video games in my 20s. It just sucked up so much time that could have been spent more productively. My excuse was that I used it to decompress from the stress, but Mrs. RB40 said I was always getting mad at the games. I could have used those wasted hours to learn about the stock market or the emerging technologies mentioned above. Oh well, live and learn. These days I don’t play video games much. Maybe once the new XBOX comes out…

These words of wisdom are very specific to young RB40. I guess everything worked out alright because I’m a happy stay at home dad these days and I am not stressed out all the time anymore. Working at Intel gave us a big leg up financially, but I got burned out completely before 40. Who knows what would have happened if I took the other direction instead? I probably would still be working and there wouldn’t be a Retire By 40 blog. Life is kind of funny, isn’t it?

What would you tell your 23 year old self? Don’t forget to tell us how many years it has been since you were 23. I will be 40 later this year for your reference. 

What advice I would give my 23 year old self is a post from: Copyright © 2010-2011 Retire By 40 All Rights Reserved

The American Academy of Pediatrics suggests that children under 2 should avoid television completely and older kids limit screen time to one or two hours per day. Studies have shown that excessive screen time can lead to attention problems later on. What about the iPad? This is a much more interactive device than a television. Should we let kids play with it? Many parents are exposing their kids to the iPad from a very young age.  Is that a good idea?

We don’t have an iPad and I hadn’t considered getting one for Baby RB40.  That is, until we played with one at the library. We had a lot of fun playing with apps like Toca Robot Lab and reading interactive books. Baby RB40 learned how to turn the pages and enjoyed making the animals move in Barnyard Dance.

The first few times, Baby RB40 was fascinated with the iPad and he didn’t want to leave even after playing with it for over an hour. He likes it because there are many apps to explore and he can interact with the iPad via the touch screen. Previously, the only interaction he had with a computer had been watching videos on YouTube. An iPad is much more fun and I thought, maybe I should get one…

Let’s go over the pros and cons of getting an iPad for Baby RB40

Pros

• It will keep him quiet and occupied for a while. From what I read, an iPad is like a magic wand that will calm kids down and let you have a little quiet time. This would be very useful if you’re flying across the country or if you want to have a peaceful dinner in a restaurant. Actually, Baby RB40 is very good at restaurants. He’ll eat anything and usually doesn’t cause too much problems. He actually gets a lot of compliments.  Once he’s done eating though, he’ll want to get out of there ASAP.
• We can use the iPad as a learning tool. There are a ton of educational apps to help a kid learn mathematics and how to spell. They can learn about planets, states, animals, dinosaurs, money and much more.
• Apps are cheap at only a few dollars each. You can’t even buy a toy Triceratops for that much.
• Baby RB40 can get a technological head start with an iPad. The future will be full of cool technological devices and the earlier you start, the better off you’ll be.

Cons

• The iPad is too new and there are has not been any long term research done on it yet. I don’t really want Baby RB40 to be a guinea pig in this experiment. It’s probably fine, but…what happens if the iPad eventually turns your brain to pea soup?
• Babies and toddlers need to learn about the world through touching and seeing physical things. Sure, he touched a piece of dog poop once, but he learned and hasn’t done it since. I’d rather have him play with physical toys and learn how things work in real life than tapping away at a touch screen.
• A new iPad cost $499. That’s quite an expensive toy for a kid. Baby RB40 is pretty hard on his toys and I don’t know if an iPad will endure his abuses. The apps might be pretty cheap at a few dollars each, but I’m sure they add up quickly.
• This is just my personal bias, but I think kids can use their imagination more effectively with physical toys. With an app, you need to follow certain path to accomplish a goal and forward progress is limited by the programmer’s imagination. When kids play with physical toys, you never know what they are going to come up with.
• If we get one, we would have to come up with a whole set of rules on how and when to use it. Should we limit it to 1 hour per day or just let him go wild on it? It’s easier to just not buy it.

The iPad is a great piece to technology, but I think we can wait a few years before getting one for Baby RB40. It’s cool to learn how to use technology at such a young age, but tapping a touch screen isn’t exactly rocket science. He can learn how to use a touch screen later.

For now, I think he can play with the library’s iPad once in a while and that should be enough. At his age, I’m sure it’s better to interact with real people and real objects. Learning to read the old fashioned way is just fine with me. We spend a lot of time reading books and we both enjoy it.

What about you? Do you let your kid play with an iPad? If you do, what are your guidelines if any?  

Baby RB40 recommends H is for Halloween. It’s a great book that taught him to say F is for Frankenstein.

Disclosure: Baby RB40 will get a very small commission toward his college saving if you buy anything from Amazon via the links on this page.

Why I’m not getting an iPad for our toddler is a post from: Copyright © 2010-2011 Retire By 40 All Rights Reserved