That being said, it’s always best to try and keep your debts to a minimum. So with that in mind, here are, in no particular order, the top 100 quotes about debt compiled by my crack research team, and presented for your enjoyment.

If you’re in the mood, I’d love it if you share your favorite quote from this list — and please … don’t forget to tell everyone why it’s number one in your book!

1. “Before borrowing money from a friend, decide which you need most.”
— American Proverb

2. “What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience?”
— Adam Smith

3. “Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.”
— Ogden Nash

4. “Rather go to bed supperless, than rise in debt.”
— Benjamin Franklin

5. “One can pay back the loan of gold, but one lies forever in debt to those who are kind.”
— Malcolm Forbes

6. “Interest works night and day; in fair weather and in foul. It gnaws at a man’s substance with invisible teeth.”
— Henry Ward Beecher

7. “If you think nobody cares if you’re alive, try missing a couple of car payments.”
— Earl Wilson

8. “If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.”
— J.P. Getty

9. “Debts are like children — begot with pleasure, but brought forth in pain.”
— Moliere

10. “It is the debtor that is ruined by hard times.”
— Rutherford B. Hayes

11. “The impulse dances inside the debt.”
— Jareb Teague

12. “Never spend your money before you have it.”
— Thomas Jefferson

13. “Rich people plan for four generations. Poor people plan for Saturday night.”
— Gloria Steinem

14. “The man who never has money enough to pay his debts has too much of something else.”
— James Lendall Basford

15. “A promise made is a debt unpaid.”
— Robert W. Service

16. “It is poor judgment to countersign anothers note, to become responsible for his debts.”
— The Bible

17. “Here is an equation worth remembering: Five dollars earned minus seven dollars spent equals an unhappy life.”
― Jon Morrison

18. “Debts are like children: the smaller they are the more noise they make.”
— Spanish Proverb

19. “Debt is the secret foe of thrift, as vice and idleness are its open enemies.”
— James H. Aughey

20. “The only man who sticks closer to you in adversity than a friend is a creditor.”
— Unknown

21. “A small debt produces a debtor; a large one, an enemy.”
— Publilius Syrus

22. “Neither a borrower nor a lender be; for loan doth oft lose both itself and friend.”
— William Shakespeare

23. “Empty pockets never held anyone back. Only empty heads and empty hearts can do that.”
— Norman Vincent Peale

24. “Promises make debt, and debt makes promises.”
— Dutch Proverb

25. “Debt is a mistake between lender and borrower, and both should suffer.”
— Nassim Nicholas Taleb

26. “A hundred wagon loads of thoughts will not pay a single ounce of debt.”
— Italian Proverb

27. “When you get in debt you become a slave.”
— Andrew Jackson

28. “Tis against some men’s principle to pay interest, and seems against others interest to pay the principle.”
— Benjamin Franklin

29. “This would be a much better world if more married couples were as deeply in love as they are in debt.”
— Earl Wilson

30. “When a man is in love or in debt, someone else has the advantage.”
— Bill Balance

31. “Debt, n. An ingenious substitute for the chain and whip of the slavedriver.”
— Ambrose Bierce

32. “No man’s credit is as good as his money.”
— E.W. Howe

33. “There are three kinds of people: the haves, the have-nots, and the have-not-paid-for-what-they-haves.”
— Earl Wilson

34. “Forgetfulness is a gift of God bestowed upon debtors in compensation for their destitution of conscience.”
— Ambrose Bierce

35. “Some people use one-half their ingenuity to get into debt, and the other half to avoid paying it.”
— George Prentice

36. “A man who pays his bills on time is soon forgotten.”
— Oscar Wilde

37. “Remember this: debt is a form of bondage. It is a financial termite.”
— Joseph P. Wirthlin

38. “A man in debt is so far a slave.”
— Ralph Waldo Emerson

39. “Interest on debts grow without rain.”
— Yiddish Proverb

40. “He that dies pays all debts.”
— William Shakespeare

41. “If someone takes your time, it is the only debt that can’t be repaid.”
— Unknown

42. “It’s better to be anonymously rich than deceptively poor.”
— Len Penzo

43. “Wouldst thou shut up the avenues of ill, Pay every debt as if God wrote the bill.”
— Ralph Waldo Emerson

44. “If one wants to get out and stay out of debt, then he should act his wage.”
— Unknown

45. “The borrower is servant to the lender.”
— The Bible

46. “Debt is like any other trap, easy enough to get into, but hard enough to get out of.”
— Henry Wheeler Shaw

47. “Lying rides upon debts back.”
— Benjamin Franklin

48. “Debts and lies are generally mixed together.”
— Francois Rabelais

49. “Worrying is like paying on a debt that may never come due.”
–– Will Rogers

50. “Who goes a borrowing, goes a sorrowing.”
— Thomas Tusser

51. “I say to you never involve yourself in debt, and become no man’s surety.”
— Andrew Jackson

52. “Debt is the worst poverty.”
— Thomas Fuller

53. “Speak not of my debts unless you mean to pay them.”
— George Herbert

54. “One of the greatest disservices you can do a man is to lend him money that he can’t pay back.”
— Jesse Jones

55. “Youth is in danger until it learns to look upon debts as furies.”
— Edward G. Bulwer-Lytton

56. “Small debts are like small shot; they are rattling on every side, and can scarcely be escaped without a wound.”
— Samuel Johnson

57. “He looks the whole world in the face for he owes not any man.”
— Henry Wadsworth Longfellow

58. “Creditors have better memories than debtors.”
— Benjamin Franklin

59. “Do not accustom yourself to consider debt only as an inconvenience; you will find it a calamity.”
— Samuel Johnson

60. “Blessed are the young, for they shall inherit the national debt.”
— Herbert Hoover

61. “Annual income, twenty pounds; annual expenditure, nineteen pounds; result, happiness. Annual income, twenty pounds; annual expenditure, twenty-one pounds; result, misery.”
— Charles Dickens

62. “A liberal is someone who feels a great debt to his fellow man; a debt he proposes to pay off with your money.”
— Gordon Liddy

63. “Running into debt isn’t so bad. It’s running into creditors that hurts.”
— Unknown

64. “I go on the principle that a public debt is a public curse.”
— James Madison

65. “A billion here, a billion there, sooner or later it adds up to real money.”
— Everett Dirksen

66. “You can’t spend your way out of recession or borrow your way out of debt.”
— Daniel Hannan

67. “Debt is a prolific mother of folly and of crime.”
— Benjamin Disraeli

68. “The United States can pay any debt it has because we can always print money to do that.”
— Alan Greenspan

69. “Debt is dumb. Cash is king.”
— Dave Ramsey

70. “Debt can turn a free, happy person into a bitter human being.”
— Michael Mihalik

71. “Chains of habit are too light to be felt until they are too heavy to be broken.”
— Warren Buffett

72. “If you’re thinking of debt, that’s what you’re going to attract.”
— Bob Proctor

73. “Many delight more in giving of presents than in paying their debts.”
— Sir Philip Sidney

74. “Poets, like friends to whom you are in debt, you hate.”
— William Wycherley

75. “There are no shortcuts when it comes to getting out of debt.”
— Dave Ramsey

76. “A grudge is just another debt owed.”
— Alex London

77. “If you have debt I’m willing to bet that general clutter is a problem for you too.”
— Suze Orman

78. “Debt is the slavery of the free.”
— Publilius Syrus

79. “There are four things every person has more of than they know: sins, debt, years, and foes.”
— Persian Proverb

80. “Many a man thinks he is buying pleasure, when he’s really selling himself to it.”
— Benjamin Franklin

81. “Why will some people who have $20 buy something for $40 if it’s marked down from $100?”
— Clifford Cohen

82. “It shows nobility to be willing to increase your debt to a man to whom you already owe much.”
— Cicero

83. “Debt on anything that depreciates is disastrous.”
— Orrin Woodward

84. “Live within your means, never be in debt, and by husbanding your money you can always lay it out well.”
— Andrew Jackson

85. “It is thrifty to prepare today for the wants of tomorrow.”
— Aesop

86. “It takes as much imagination to create debt as to create income.”
— Leonard Orr

87. “A habit of debt is very injurious to the memory.”
— Austin O’Malley

88. “In the long run we shall have to pay our debts at a time that may be very inconvenient for our survival.”
— Norbert Wiener

89. “A mortgage casts a shadow on the sunniest field.”
— Robert Green Ingersoll

90. “Those have a short Lent, who owe money to be paid at Easter.”
— Benjamin Franklin

91. “Wars in old times were made to get slaves. The modern implement of imposing slavery is debt.”
— Ezra Pound

92. “The government who robs Peter to pay Paul can always depend on the support of Paul.”
— George Bernard Shaw

93. “Credit buying is much like being drunk. The buzz happens immediately, and it gives you a lift. The hangover comes the day after.”
— Joyce Brothers

94. “Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt.”
— Henrik Ibsen

95. “The second vice is lying. The first is running in debt.”
— Benjamin Franklin

96. “I like my players to be married and in debt. That’s the way you motivate them.”
— Ernie Banks

97. “There are but two ways of paying debt: Increase of industry in raising income, increase of thrift in laying out.”
— Thomas Carlyle

98. “A creditor is worse than a slave-owner; for the master owns only your person, but a creditor owns your dignity, and can command it.”
— Victor Hugo

99. “Buying on the installment plan makes the months shorter and the years longer.”
— Unknown

100. “We all think we’re going to get out of debt.”
— Louie Anderson

Photo Credit: Zak Greant

The post 100 Famous Quotes About Debt appeared first on Len Penzo dot Com.

Personal Loans

When it comes to personal loans, you have several options. These options are available at banks, credit unions, and online lenders. Your first option should be a unsecured loan. An unsecured personal loan often requires a good credit score in order for you to qualify. Interest rates are often over 10%. If your credit score drops while you are in repayment, or you miss payments, you risk your interest rate increasing.

Another personal loan option is a secured personal loan. This type of loan requires some form of collateral, and encompasses home equity loans as well as home equity lines of credit. Interest rates are lower — although they still depend upon your credit score — but the risk is higher. If you default on your loan, you could end up losing what you put up for collateral, whether it’s your car, your house, or some other valuable asset.

If the loan amount is smaller, then you can try an online lender. They often promote smaller loan amounts of $5000 or less. Some websites help borrowers get bad credit loans by working with lenders that can help those with poor credit. But be wary: these loans have high interest rates!

Cash Advance

If you have a credit card, you most likely have access to a cash advance. These advances can be taken out through an ATM withdrawal, withdrawal from a bank, or by check. They’re fairly similar to a short-term loan. There is usually a transaction fee associated with a cash advance, and the interest rates are higher on these loans than the regular APR on your credit card. The interest rate varies by credit card company, but it is a viable option if you need money to cover a purchase that you can’t charge.

Peer to Peer Loans

Peer to peer loans — also knows as marketplace loans — are financed by people who are interested in investment lending. Much like any other type of loan, the interest rate for peer to peer loans vary based upon your credit score. With a good score, your interest rate could be as low as 5%. However, a poor credit score could mean an interest rate above 30%. There are also fees associated with these loans that depend upon your score. You may need to provide proof of employment; such as pay stubs in order to qualify. Sticking to the payment schedule, much like any other loan, is a must. Otherwise, you could be faced with late fees and damage to your credit score.

Borrow from Family

It may be awkward, but you can try borrowing money from a family member or friend. These loans are the least risky financially. However, borrowing from family or friends can strain a relationship, especially if you don’t pay the loan back in a timely manner. It usually helps to draw up a payment agreement, including interest, that the both of you can agree on.

If you find yourself in need of extra money, don’t dip into your retirement savings and risk losing a good portion of what you worked so hard to put in. With a little bit of research, you can find a better alternative that is more manageable and stay on a successful financial path.

Photo Credit: Infrogmation

The post Early 401k Withdrawals: Here Are 4 Alternatives That May Be Better appeared first on Len Penzo dot Com.

You can do that by setting up, and following, a realistic budget.

Not So Scary

It might be best to offer a trigger warning before even mentioning a budget. Some people think of them as nothing but a series of restrictions that hamper their enjoyment of life.

That’s not how you should view a budget. A budget is actually a liberating mechanism that will enable you to enjoy yourself while also maintaining sound financial responsibility. Think of it as an effort at putting your finances on a diet. It may require some self-discipline, but in the end you’re a better person for it.

Here’s how you can retire on a budget and enjoy life at the same time.

Take a Financial Snapshot

The first thing you want to do is get an understanding of your finances. Before you can determine how much you can spend, you must first know how much you’ll have.

Compile your 401(k) and IRA financial statements as well as your non-retirement related financial documents. Add it all up and get a sum total of what you’ve got.

Keep in mind: You’ll still be receiving additional income in your sunset years. That will come from returns on your financial accounts as well as your Social Security income.

To get a picture of how much you’ll be able to spend, you’ll also have to calculate your anticipated life span. This can be a grim effort, but it’s part of the number-crunching process. If you outlive your money, then you’re going to be somebody’s dependent.

Fortunately, there are plenty of online tools to help you out with this process.

Track Your Spending

Once you begin your employment-free adventure, you’re not only going to have to start following the guidelines put forth in your budget, but you’re more than likely going to need to make some adjustments.

Why? Because situations never turn out in real life as they appear on paper.

It’s likely that you’ll have a higher expense item than you anticipated (note: you’ll almost never have a lower expense than you anticipated you can thank Murphy’s Law for that). When that happens, you’ll need to reassess and redraw your budget.

This is perfectly normal. It’s also likely that you’ll need to revisit your budget on more than one occasion. That’s not unusual, either.

Get the Support of Friends and Family

Obviously, if you have a significant other, you’re going to want to make sure that your spouse is on board with your financial plans. To try to do this as a solo act is a recipe for tension in the relationship.

Bounce ideas off of close friends, associates, and family members. Get their feedback about how you should budget your money. It’s an especially good idea to talk to people who are already retired. After all, they’ve been down this road before.

Consider Making Changes to Suit Your New Life

Perhaps you’re an empty nester. Your children are grown and have left the house. Even worse, they live a couple of thousand miles away and hardly have time to visit.

There is a growing trend towards remodeling projects with old age in mind, and this is all part of practical planning. Incorporating easy-to-use appliances and devices might cost a significant amount later down the line, so you need to analyze both your situation now as well as keeping in mind that your needs will change in 20 years.

Ask yourself: Do you really need those two extra bedrooms in your house? Can you get by if you downsize and keep the money that you earn from the sale of your home (minus taxes and the amount required for the smaller house, of course)?

What other assets can you sell? Do you have a vintage car that will bring in some cash? Do you have a boat that you won’t use any more?

This is the time to liquefy your not-so-liquid assets that you don’t use any more. That way, you’ll have some extra cash on hand.

Be a Savvy Shopper

You’ll have some extra time in your retirement years. Why not use part of it clipping coupons? You could also browse the Sunday circulars in search of the best deals.

Your retirement years are a great time to hone your skills as a consumer. If you’re a smart shopper, you’ll find it’s easier to stay in budget.

Your golden years are just in front of you. Make sure that you spend them the right way by spending your money the right way.

Photo Credit: Tax Credits

The post A Guide to Retirement Budgeting on a Fixed Income appeared first on Len Penzo dot Com.

After all, more money means more choices — for everything from the food we eat and the clothes we wear, to the cars we drive and the homes we live in.

Of course, there’s the flip side too: Less money provides fewer choices. My fantastic free-spending teenage son, Matthew, discovered that for himself last week; and it all started with an innocent question …

“Hey, Dad! Can I go to Disneyland with Brandon and his parents tonight?”

“Tickets to Disneyland are very expensive, son. Do you have enough money?”

“No. I was wondering if you could buy my ticket and I’ll do a few projects around the house to pay you back later.”

“You’re asking for a lot of cash, Matthew. Did you know Disneyland tickets are more than $100 now? And that doesn’t include food or anything else.”

“Wow.”

“‘Wow’ is right. So now you know why we’re always nagging you to set aside at least some of your money for a rainy day. How much do you have saved up right now?”

“Zero.”

“Nothing? Didn’t you get almost $100 for your birthday a few weeks ago?”

“Yeah, but I spent it already.”

“Well, I’m sorry to hear that. But I’m not going to just give you $100 today.”

“Really?”

“Yes, really. I’m sorry, son.”

“But what if I put that fence screen up for you? How much money would I earn for that?”

“$20.”

“Okay. What if I wash your car too?”

“Ten bucks. Unfortunately, son, there’s just not enough time left today to earn the money you’ll need for tonight. The trick is to have the cash before you need it.”

“But I didn’t know that Brandon was going to ask me to go to Disneyland until today!”

“Exactly. Thanks for making my point on the importance of saving.”

“But that’s not fair at all, Dad!”

“Boo hoo. Look … If you had $30 or $40 in savings, coupled with money earned for the fence screen and car wash, then I could have helped you out with a small loan from the Bank of Dad — but you don’t.”

That was no comfort to my son. “Whatever, Dad.”

“Look at the bright side,” I said.

“What’s that?”

“Since you’re not going to Disneyland, that means you get to join the family when we go out to dinner tonight.”

“How is that better than going to Disneyland?”

“Because,” I said with a smile, “It’s my treat!”

My son didn’t find that quip to be very amusing. But hopefully, he’s learning that, just as accruing excessive debt makes us indentured servants to our lenders by severely limiting our future financial flexibility, failing to save money — or being dependent on friends and family for income — severely limits our choices in life too.

***

(Note: This is an encore version of an article that was originally published on May 26th, 2014.)

Photo Credit: pasotraspaso

The post Money, Freedom, and a Lesson on the Importance of Saving appeared first on Len Penzo dot Com.

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.

Well… another busy week is behind us. So with that in mind, let’s get this party started!

With bombs and fires, you only get one mistake.

– Red Adair

Credits and Debits

Credit: Did you see this? Multi-millionaire investor Kevin O’Leary shared the advice he gives his children to keep them on track toward a healthy retirement nest egg. The rule: Take 15% of every dollar you receive, whether it’s from your paychecks, side hustles, or birthday money from grandma, and put it directly into the market. He says, “If you make the average salary of $68,000 a year, and you do this your entire life, you’ll end up a millionaire in retirement at 65.” He’s right, you know. For example, an annual contribution of 15% ($10,200) that generates an average return of 7%, would leave $2.2 million in your portfolio by the time you retire. It all sounds so easy, doesn’t it? Especially if your household has two earners… or not.

Credit: As Yahoo!Finance points out, the 15% rule may not work for everyone – especially for people earning $68,000 or less per year. Applying the 15% rule on annual income of $68,000 requires investing roughly $850 per month. The fact is, for many people, expecting them to have $850 available after paying their living expenses, debt payments, a little mad money, and any other financial obligations is an unrealistic expectation. That being said, if you think they have problems, well…

Scott Adams – Dilbert

Debit: In other news, after Nike’s stock traded this summer around levels investors had not seen in more than a decade, the company is now about to suffer another symbolic blow: Nike is going to be removed from the S&P 100 due to years of chronic underperformance. In fact, the company has lost $200 billion in market value since 2015. As for the cause of Nike’s woes, well… there are more than a few, including numerous marketing blunders; the first of which happened just prior to Nike’s current 11-year business decline. We’ll leave the specifics of that one, along with Nike’s many other self-inflicted advertising bungles over the years, as an exercise for the student.

Debit: Last month there was another milestone that hadn’t been breached in more than a decade; this one, relating to the housing market. It turns out that, the supply of existing homes for sale in the US is at its highest point in 10 years. Despite this fact, the median sales price rose 1.6% from a year ago to $429,100, extending a streak of annual price increases that began more than three years ago. The big question is: What does the market seem to know that others don’t? Remember… markets aren’t infallible. But that’s okay; because these guys aren’t either…

Debit: Speaking of rising prices, my grocery bill has more than doubled since 2020. The good news is that, according to federal government bureaucrats, inflation is running at 3.4% year-over-year. So there’s that. As for the shopping situation over in Europe, well… it seems to have better perks.

Debit: Then there’s this: For the first time in history, the US national average diesel price has surpassed $6.00 per gallon – and in some parts of California it has reached $9.99. You know what that means: It’s almost time to change the pump prices to quarter-gallons. And here’s something else that needs changing…

Credit: Since the US dollar’s (USD) anchor to gold was broken in 1971, Fed policy has slowly driven homebuyers from the housing market by escalating real estate speculation with loose monetary policy. The proof is in the pudding, such that the median home price to median personal income ratio is currently 9.5 – compared to 5.1 in 1970. As macro analyst David Jensen notes, since 1971, incomes have failed to “keep up with escalating cost of living prices – especially given the continually redefined lower CPI (Consumer Price Index) measures issued by” the government. Ya think?

h/t: rd.com

Debit: The incessant expansion of the US currency supply has resulted in a staggering 95% loss of the dollar’s purchasing power since 1913, with nearly half of its purchasing power wiped out in the last 25 years. And if you think that is alarming, even more mind-boggling is the fact that the USD has lost 22% of its purchasing power in just the last six years alone. No, really. If this were 1926, he said, we would be having this conversation about the pound sterling as the world’s reserve currency, the obvious place of safety. Britain was bankrupt fifty years later. In other words: We’re dealing with a ticking time bomb. Let’s hope somebody out there knows how to defuse it …

Debit: The fact is, whether its the Spanish silver dollar (piece of eight), the Dutch guilder, the French franc, or the British pound sterling, history shows that global reserve currency status has never been permanent, and that any unwinding is painful for everybody – not just the country with that exorbitant privilege – because when any reserve currency runs into trouble, everyone around the world who is holding it inherits the problem.

(h/t: @thebubblebubble)

Gary Larson – The Far Side

Credit: Thankfully, there is still some good news for those of us whose retirement savings are denominated in USD: Our wealth can be insured from the collapsing purchasing power of the USD by holding physical precious metals. Got gold?

By the Numbers

With nine million Americans having at least one credit account that is either delinquent or in forbearance, the personal-finance company WalletHub today released its latest report on the states with the most – and least – people in financial distress.

50 Kansas (least distressed)

49 Louisiana

48 Florida

47 Texas

46 South Carolina

5 Michigan

4 Vermont

3 Hawaii

2 Rhode Island

1 Maine

Source: Wallet Hub

Last Week’s Poll Results

Which of these celebrations do you enjoy the most?

• Christmas    61%
• Thanksgiving    35 %
• Halloween      4%

More than 2700 Len Penzo dot Com readers responded to last week’s question and it turns out that 1 in 25 of you prefer Halloween to both Thanksgiving and Christmas. I actually thought that figure would be a bit higher, but what do I know? As for me, there’s something about Thanksgiving that makes it the top holiday for me. Maybe it’s because of the cherry pie.

If you have a question you’d like me to ask the readers here, send it to me at Len@LenPenzo.com and be sure to put “Question of the Week” in the subject line.

The Question of the Week

Useless News: Good Collateral

An old Native American man had a need to borrow $500, so he went to his local bank and asked to speak with the loan officer.

The banker welcomed the old man and then told him that a loan application form would need to be completed first. The banker then took a form from his desk drawer and began questioning the old man.

“You said you need $500. What exactly are you going to do with the money?”

“Buy silver, make jewelry, then sell it,” the Native American responded.

“Okay. And what have you got for collateral?” asked the banker.

“Don’t know collateral,” replied the old man.

“Well… collateral is something of value that you provide us with to cover the cost of the loan if you fail to repay,” said the banker. “For instance, have you got any vehicles?”

“Yes; a ’79 Chevy pickup,” replied the old man.

The banker shook his head, “I’m very sorry but, unfortunately, that simply won’t do. How about livestock?”

“I have a horse back on the reservation,” replied the old man.

“How old is it?” the banker enquired.

“Don’t know; has no teeth,” replied the old man.

The conversation went on like this for a while, but eventually the banker decided to grant the $500 loan to the old man.

Several weeks later the old man returned to the bank.

He pulled out a very large roll of $100 bills from his pocket. “Here to pay,” he said.

He then handed the banker five $100 bills to repay his loan.

“Business has been good I can see!” said the banker. “So … what are you going to do with the rest of that money?”

“Keep it close to me,” the old man responded.

“But that’s a lot of cash. Why don’t you just deposit it in my bank?” the banker enquired.

“Don’t know deposit,” replied the old man.

“Well,” the banker responded, “you just put the money in our bank and we will take good care of it for you. Whenever you want to use some of it, you can withdraw it.”

The old man then leaned across the desk, looked the banker in the eye, and asked, “What you got for collateral?”

(h/t: Cowpoke)

Squirrel Cam

That’s definitely not a squirrel… .

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Buy Me a Coffee? Thank You!

For the best reading experience, I present all of my fresh Black Coffee posts without ads. If you enjoyed this week’s column, buy me a coffee! (Dunkin’ Donuts; not Starbucks.) Thank you so much!

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More Useless News

Hey, while you’re here, please don’t forget to:

1. Subscribe to my weekly Len Penzo dot Com Newsletter!

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3. Please support this website by purchasing my book! Thank you!!!!

Letters, I Get Letters

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach out to me at: Len@LenPenzo.com

This week Jill dropped me a nice note that started off with this comment:

Hi, Len! I want you to know that I found your wonderful blog by mistake.

Welcome to Misfit Island. That’s how most of us got here — including me!

If you enjoyed this edition of Black Coffee and found it to be informative, please forward it to your friends and family. Thank you!

I’m Len Penzo and I approved this message.

Photo Credit: public domain

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When a loved one passes away, families are often faced with major decisions and financial responsibilities while they are still processing their grief. Understanding what to expect ahead of time, from burial preferences and memorial costs to available financial assistance, can make an overwhelming experience a little easier to manage.

Shifting Preferences: Cremation Now Leads

Funeral traditions in America have changed significantly over the past few decades. In fact, recent data confirms just how much those preferences have shifted. According to the National Funeral Directors Association, the 2024 cremation rate is 62%, while the burial rate is 33%. Cremation now outpaces traditional burial by nearly two to one.

This shift is influenced by several factors, including cost, environmental considerations, and changing religious and cultural attitudes. It also includes increased mobility that can make traditional family burial plots less practical. For families considering their options, knowing that cremation has become a common choice may make the decision feel more familiar.

At the same time, burial remains a meaningful and common choice for roughly a third of families. For many, the decision is connected to religious traditions, personal preferences, or the desire for a permanent physical resting place. Neither option is inherently “right.” The best choice depends on the values, beliefs, and budget of each family.

The Cost of Remembrance: Headstones and Markers

For many families, a headstone or cremation marker can be a significant expense. According to Empathy, the average family pays between $1000 and $3000 for a headstone, including installation costs.

The final price can vary depending on the material, size, design, and cemetery requirements. Granite is often chosen for its durability and affordability, while bronze and more customized designs may cost more.

Because headstones are often purchased weeks or months after a funeral, families may not think about this expense when first planning for funeral and memorial costs. Considering the cost ahead of time can help families avoid an unexpected financial burden later.

Financial Support for Families With Children

Along with funeral and memorial expenses, families may also face changes to their household finances after losing a loved one. This can be especially challenging for parents who suddenly find themselves raising children on one income.

According to the Social Security Administration, certain surviving spouses may qualify for survivor benefits if they are caring for the deceased person’s child who is under age 16 or has a disability.

For families with young children, this type of support can provide important financial stability during a difficult transition. A surviving parent may suddenly have to manage household expenses, childcare, and other responsibilities while also helping their children cope with the loss.

Many families may not realize that these benefits are available. After a loss, parents and other caregivers are often focused on supporting their children and handling immediate arrangements. Taking time to learn about available resources can help families understand what financial assistance they may qualify for.

Helping Families Prepare

Choosing between burial and cremation, planning for memorial expenses, and understanding financial assistance are all important parts of preparing for the loss of a loved one. These decisions can feel overwhelming, but families do not have to figure everything out at once.

Having conversations about end-of-life wishes before they become urgent can give family members a better understanding of what their loved one wants. It can also allow parents and other caregivers to organize important financial and personal information.

Whether you’re planning ahead or helping children and other family members through a recent loss, understanding these practical details can make a difficult experience a little more manageable. Grief is already challenging for families. And being prepared can help reduce some of the additional stress that comes with unexpected decisions and expenses.

A little planning and open communication can give families greater peace of mind and allow them to focus on supporting one another when they need it most.

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To find true happiness, we must look within instead of coveting that of others. Here’s how:

Work hard

I constantly hear excuses from people for why they can’t get ahead, but in many cases the real reason is because they’re not working hard or smart enough — or spending beyond their means.

Today, there’s more opportunity than ever to earn income without a “real” job by freelancing your skills, or even property you already own. For instance, I’m a freelance writer, but I also rent out my homes to vacationers, drive people around as an on-demand taxi driver, and watch people’s pet when they go out of town.

Of course, I understand that financial stability doesn’t come overnight, but your personal plight is nobody’s problem but your own; so if you want to change then you’ll have to face it head-on. It’s an uphill battle, but you’ll get there with positive attitude and a lot of patience.

Accept what you can’t control

You can’t control everything — especially others’ lifestyle. The sooner you recognize this, the better.

“Make a list of what you can and can’t control in any situation causing you envy,” says Kimberly Hershenson, a licensed clinical social worker. “For example, if your co-worker got a raise, you have no control over that fact. Instead, focus on what you can control to make change: working harder, getting feedback from your supervisor, and asking for a raise yourself.”

Analyze others’ success

While envying someone’s success is detrimental to your own, analyzing it can actually be helpful when you use it as an outline for your own life.

“The correct approach to observing and wanting others’ success and material wealth is to analyze how they achieved their success,” says entrepreneur Beverly Solomon, who owns her eponymous design firm. “While a small percentage of people luck into wealth by inheriting it, the vast majority achieve success through hard work, education, tenacity and patience.”

Counseling professor Dr. Tiffany Stewart agrees. “Peeping into someone else’s yard takes the focus off of you and keeps you from improving yourself,” she adds. “Live your life and make it what you want by working on you first.”

Appreciate what you have

Too many people worry about the things they don’t have without taking time to appreciate what they do have. According to mind and body wellbeing coach Wendy Cheah, one way to fix this bad habit is to practice gratitude. “Practice by thinking or writing a list of things that make you feel good, no matter how big or small it is,” she says. “For example, ‘I have my own apartment, I have a fridge full of food, my boss approved my project.’ By practicing gratitude we fill up our mind and soul from inside out, and it also makes us realize how lucky we are and focus on how much we have in our life.”

Stop waiting for something good to happen

The odds of a life-changing event happening to you are equivalent to winning the lottery: one in millions. If you want something good to happen to you, make strides toward that end.

Turn off “reality” TV

Reality television plays a huge role in our fascination with the lifestyles of the rich and famous. The consequence of buying into the “reality” narrative is that it’s capable of making you feel like you’re being left behind in life while increasing feelings of insignificance. “Too many people get caught up thinking that reality TV is reality,” says Dr. Stewart. “That’s simply not true. These are scripted shows, and there are retakes if it doesn’t look right the first time. In reality, there are few, if any, retakes in life.”

Stop blaming your setbacks on others

One of the most annoying words in the national lexicon right now is “privilege.” I constantly hear how some people are privileged because of their race, their perceived beauty, their weight, their sexual orientation and many other things, but when people use that word in condemnation of others’ success, it usually means “I deserve the things you have more than you do.” And that’s unfair.

While there are exceptions, the vast majority of successful people have earned their good fortune. If you want your opportunity, chase it. Seize it. Claim it as your own. You’re 100% capable.

Spend time with the less-fortunate

For perspective, spend a night on the streets with the homeless, visit a hospital, or travel to a third-world country. Putting yourself in the shoes of those less fortunate provides much-needed clarity. None of us are promised anything, and none of us should expect to be given anything. We only deserve what we earn.

Photo Credit: thechallahblog

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It’s true, folks; 80% of Americans knew there were two all-beef patties in a Big Mac — but just six in ten could identify “Thou shalt not kill” as one of the Ten Commandments. No, really.

Unfortunately, my anecdotal research verifies the Kelton study.

I know a Big Mac has two all-beef patties, special sauce, lettuce, cheese, pickles and onions — all on a sesame seed bun, no less — but I can only name eight of the Ten Commandments. (Don’t tell my third grade catechism teacher, Sister Nora.)

I wonder if Sister Nora would feel better if I told her I can name my Ten Personal Finance Commandments.

That’s right; in order to keep my life running as smoothly as possible, I faithfully follow these ten little nuggets of financial wisdom every day:

1. Spend less than you earn.

It’s the first personal finance commandment for a reason: Those that follow it are destined for financial freedom. It helps to be a frugality disciple. Remember, the word disciple is derived from its root word “discipline.” There is a lesson there for those who are willing to take it.

2. Behold the power of compounding growth.

The greatest lesson you can ever bestow upon your children is the power of compound growth. True, the power is somewhat diminished in today’s upside-down financial environment of near-zero interest rates and lower investment returns, but working teenagers with the financial discipline to let their accrued savings grow over time still have a golden opportunity to set themselves up for life by making relatively smaller up-front contributions.

3. Always pay thyself first.

Your creditors are not more important than you. The truth is, it’s a lot harder trying to save money from what’s left over after you’ve paid all the bills — which is why you should contribute to your retirement nest egg and emergency savings fund before you sit down to pay your first creditor every month.

4. Faithfully track thy household income and expenses.

Trying to take control of your personal finances without knowing how much money you’re earning — and where it’s all going — is tantamount to trying to drive with a blindfold around your eyes. Eventually, both practices end in disaster.

5. Knoweth the difference between wants and needs.

Being able to distinguish between wants and needs is directly tied to your ability to accept personal responsibility. At the most basic level, all of us have but a handful of primary needs: food, water, clothing, shelter, healthcare, and — for most of us — transportation. Everything else, folks, is a want.

6. Keep thy budget holy.

Budgets aren’t for everybody — but they are essential for those who lack financial discipline. A budget is an important tool that helps control spending. It’s easy to make a budget — but they only work for those who agree to follow them.

7. Thou shalt avoid paying interest.

If you can’t afford to fully pay for something you want, then you must save for it — that includes a car. My only exceptions to this rule apply if you need a loan to buy a new home, start a new business or, in some cases, pay for higher education.

8. Keepeth thy spouse involved in the financial decision process.

It’s absolutely critical that married couples keep their communication lines open — especially when it comes to the household finances. Regularly assess and update your goals and progress, and be willing to compromise. Better yet, split up the financial duties; the Honeybee and I do. In fact, we work as a team and run our household like a business.

9. Blessed are those who knoweth a high income doesn’t beget financial freedom.

Financial freedom is a state of mind, as much as it is a state of being; so it can be achieved regardless of household income. Those who understand that have a much easier time keeping their personal finances under control than those who don’t.

10. Undertake thy chosen vocation for love, not money.

We achieve satisfaction at our vocation, whatever it may be, through a job well done; but for most people to be able to do this on a consistent basis, they have to love what they do. So do what you love and, if you’re patient, the money will eventually follow.

Photo Credit: @jbtaylor

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These days, it’s nowhere near as straightforward. Pension funds are in crisis, savings accounts offer negligible returns, and even the property market is no longer the surefire haven for your hard earned money that it once was. As for shares — the perilous state of the economy makes it easier than ever to get your fingers burnt.

Of course, there are also a growing number of alternative investments to consider. These include everything from vintage wine and classic cars to fine art and gold.

Being proactive

One of the obvious consequences of the changes in the investment sphere is that sitting back and watching is no longer an option. To make your money work as hard as possible, it’s essential to become involved, and be proactive in managing your investment portfolio.

Which of the varying types of investments out there are right for you depend on both your personal circumstances and the market conditions. Each of these can change over time, which is why it is essential to know when to get in, and when to get out.

The dynamic nature of today’s investment sphere provides great opportunities for those who understand the markets, and there is a growing list of success stories surrounding angel investors who have made a successful career out of spotting the right opportunity at the right time.

Then again, if it were easy, everybody would be making great investments and driving Ferraris — we might all be familiar with the cautionary advice that the value of investments can go down as well as up, but the full implications of making a bad investment decision only come home to roost after the worst has happened.

Getting the best advice

For this reason, it makes sense to sit down with a financial adviser and go through your options. That involves far more than just looking at a list of possible investments and picking your favorite. A financial adviser will assess your overall financial position and help you prepare a set of forecasts. The idea is to draw up a coherent plan for the years to come, and the investments that will be most effective in getting you there.

Your plan will be unique to you and your circumstances. Your age, income, cash in the bank, family needs and aspirations will all be factors in making the right choice. For example, if you’re in your 30s, are looking for a long-term investment and do not mind tying your capital up, then property might be a perfect choice.

If you’re closer to retirement age and have money tied up in a poorly performing pension fund, then the advice might be quite different.

Keeping track

With the range of options available, it’s quite possible that you’ll end up with a broad investment portfolio, and keeping track of what you have and how it is performing can be as challenging as making the right choices in the first place.

Some choose to maintain a simple spreadsheet, using either Microsoft Excel or one of the many free alternatives that are growing increasingly popular. Spreadsheets can adequately track costs, tax liabilities, aggregate yields and, to a certain extent, trends.

But if you are serious about your investment activities, you should consider one of the online investment tracking solutions that have become available over recent years.

If you work alongside a financial adviser, you might find that they offer a client portal; these are handy mechanisms by which to keep track, using the same tools that the professionals use.

Making your money work harder

The media is full of disturbing stories about the difficult economic times in which we live, with debt rising to record levels and seniors working later into life due to poorly performing pension funds. But it’s not all bad news. Today’s investors have more choice and flexibility than ever before, and by combining a proactive approach with the right tools, there are great yields to be realized.

It has never been more important to constantly keep on top of your investments to make your money work as hard as possible for a prosperous future.

Photo Credit: Dazzy D

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We all know that fall heralds a time of change and regal beauty as tree leaves turn yellow and red. There are hay rides, apple picking, hiking and crafting activities to enjoy. So put your warm clothes on, and get ready to have some fall fun without breaking the bank. Here are five ideas:

Attend a Fall Festival

Many cities and small towns host an annual fall festival to celebrate the coming season of change. There may be a parade, pumpkin carving, face painting, music, corn mazes and hay rides.

Many small farmers and other crafters show up as vendors to share local produce and handmade items. Support your community, enjoy free entertainment and take home locally grown food.

Apple Picking

In the fall, apples are in season and ripe for the picking. You’ll find many different varieties depending on whether you go in early- or late-fall. Call ahead to double check hours of operation for apple picking, and ask for advice on how many pounds you should pick and which varieties you should choose. Pick your apples by grabbing them from the bottom and twisting the stem. Then, store them in a cool and dry place until you’re ready to enjoy them.

Families also go to apple orchards to picnic or just walk the grounds. Other activities and entertainment may also be available, such as a live band or puppet show, depending on the orchard and time you choose to go. Farms that offer these activities should have a calendar of events online.

Enjoy Nature Parks

The pool and water parks are closed for the summer, but it’s prime time to visit the nature parks in your area. For instance, at your local park, you and your family could:

• Watch the leaves change and have a picnic. Enjoy that homemade apple pie for dessert.
• Ride your bikes along the greenway.
• Go kayaking. Don’t forget life jackets!
• Hike natural trails and have a guide teach your family more about the local flora and fauna.

See the beautiful sights from the top of a mountain.

Park playgrounds are also still enjoyable in the fall on less windy days. No matter what park activity you choose, remember to bring snacks, stay hydrated and use sunscreen as your kids take in the sun’s vitamin D. Sunburns and sun exhaustion can occur even in the fall.

Decorate for the Fall

Decorating isn’t only for the winter holidays. For example, fall wreaths and dried flower arrangements are perfect examples of home crafts that make fall decorating fun for the whole family.

• Fall wreaths: A fall wreath may be $25 to $50 at the store, but you can make your own for much less. Go to your local dollar store to find the base wreath, needle nose pliers, wire and other supplies. Then, go on a walk with the family to collect pine cones, leaves and other natural materials to decorate the wreath.
• Dried flower arrangements: Save those summer stems and let them dry to expose interesting-looking seeds and curled leaves. Take a walk to collect wild daisies and Queen Anne’s lace. Hang flowers upside down to dry and then carefully arrange them in a vase or Mason jar.

Build a Scarecrow

Why not make a small scarecrow for your garden to add that harvest touch to your yard? It’s easy to make a scarecrow with items you have around the house. You can blow up a balloon to use for the scarecrow’s head. Hot glue, rope and rubber bands can secure the scarecrow, while old clothes may be used to dress it. You can then explain to your kids how farmers use scarecrows to keep their crops safe, since animals think they’re humans standing guard.

Remember, the arrival of fall doesn’t mean that the fun is over. With fall festivals, apple picking, outdoor activities and more to enjoy, the whole family can spend many fun autumn days together as they watch the leaves turn beautiful colors.

Photo Credit: Rusty Clark

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