Wise Bread (Xin Lu)

Book Review: On a Dollar a Day

Xin Lu — Fri, 12 Mar 2010 14:00:02 +0000

Could you survive on one dollar's worth of food per day? Vegan high school teachers Kerri Leonard and Christopher Greenslate endured a one month experiment where each of them consumed one dollar of food per day. In On a Dollar a Day: One Couple's Unlikely Adventures in Eating in America (affiliate link), they described their experience and an array of social issues relating to the cost of food.

The book is divided into three sections detailing the three food spending plans the couple chose. The first section detailed their month of eating on a dollar a day, the second describes their experiment in eating on the average food stamp recipient's allotment, and the third is where they had no spending restrictions but tried to eat more healthily. Each section has alternate chapters written by Leonard and Greenslate.

The first experiment of eating on a dollar a day was actually quite difficult to read because this couple was obviously torturing themselves. Although they say that they were able to eat an adequate portion, there were many passages where they described their hunger and stress while on this plan. One rule they set was that they would not eat any food they can get for free unless everyone else has access to it. Due to this rule they did not eat the free foods they had access to at work and other venues, and I thought that was silly because any of those leftover free foods were probably wasted.

The second section of the book describes how the vegan couple tried to follow the Thrifty Food Plan recommended by the USDA and live on a little over $4 per day for a month. They fared a lot better on this, but found that it was still difficult to eat in a very healthy manner because nutritious and fresh foods cost more than processed foods with plenty of calories. This reminded me of Philip Brewer's excellent post The new face of poverty is fat where he writes about why poor people are obese.

The final section of the book focuses on eating for health, and it also seems like the couple have become more savvy shoppers after their months of challenges. The conclusion is that they found that it was possible to plan healthy and delicious meals that do not cost very much.

What I found most entertaining about this book was how these food plans affected the relationship between the authors. It was Greenslate's idea to start the original project, and Leonard played the part of a supportive girlfriend. However, later on it was clear that Leonard was doing most of the work in planning and preparing these meals, and it took a toll on her. Greenslate briefly wrote about how the preparation of food from the grocery store to the table is traditionally the work of women, but I think it would have been more interesting if Leonard wrote her thoughts on the subject.

Finally, there is a short chapter in the book about how to save on food, but those who want to live on a dollar of food a day will not find this book to be a very good guide. Although I felt that the one dollar a day food challenge was a bit forced, I do like the message in the book that you can eat healthily on a small budget. If you want to read more about the project, the authors have a blog at One Dollar Diet Project where they write about food related issues

Disclosure: I received a free review copy of this book and this post contains an affiliate link.

How much do you spend on food each day?

Permalink | 10 comments | Xin Lu's blog | Channel: Food and Drink

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Book Review: Where the Jobs Are Now

Xin Lu — Thu, 25 Feb 2010 14:00:05 +0000

By Xin Lu

Currently the unemployment rate is hovering around 10% nationwide, and millions of people have been out of work for months or even years. Where the Jobs Are Now by Joe Watson is a timely book that shows job seekers where they should look for their next position.

One thing Watson makes clear in the introduction of the book is that many of the jobs lost in the recent recession are not coming back and job seekers need to adapt to the needs of the new economy. The first seven chapters of the book profile industries that are rapidly expanding. These industries are healthcare, biotechnology, education, green energy, government, security, and information technology. In each chapter the author gives a detailed breakdown of what types of personnel are needed in each industry, and an analysis on why these industries are still growing despite of the recession. Chapter eight talks about entrepreneurship, and chapter nine profiles a number of professions that are considered recession proof.

My favorite part of the book is that at the end of each chapter there is a personal story from someone who transitioned into the hot field discussed in the chapter. Although the stories are quite different, the job seekers profiled all seem to embrace change. Some of them went back to school, and some relocated to another state to find the jobs in the growth industries. That ability to adapt is exactly what job seekers need in the current environment.

Another theme that repeats in the book is that many skills can be carried across different industries so job seekers should not discount a job listing just because he or she is unfamiliar with the products of a certain organization. The seven growth sectors profiled in the book hire a wide range of employees, and not all of the positions require retraining. One particular story tells of a man who worked in finance for the paper industry for most of his professional career. He applied for a finance job in a biotechnology firm even though he did not know what biotech companies did. He found that his skills were transferable, and this is probably true for many others who are looking for a change to a more stable career.

The key lesson in this book is that job seekers need to find jobs in organizations that are growing no matter what their skills are. The book ends with a long compilation of websites and resources for those who want to transition into a growing industry. I think this book is great for those who need a little bit of direction and inspiration in their job search. It is also a book that gives readers hope that the employment situation will get better.

Have you made a transition to a new career in this recession? How did you do it?

Disclosure: I received a free review copy of this book and this post contains an affiliate link.

Permalink | 1 comment | Xin Lu's blog | Channel: Career Building

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Financial Timing: How Scheduling Important Events Benefits You Financially

Xin Lu — Thu, 18 Feb 2010 15:00:02 +0000

By Xin Lu

Are you thinking of making a big change in your life such as quitting your job or getting married? Just as timing is crucial in purchasing investments, the moment you choose to make such a life change could have different financial outcomes. Here are some tips for the best times to act on some important decisions in your life.

Terminate a Job

If you are quitting a job where you have health insurance, then the best time to do this is on the first of a month. The reason is that you would usually get the health insurance until the end of the month even though you no longer work for your employer. If you plan to take some vacation time between jobs, you would not have to worry about paying for health insurance for a whole month.

Get Married

The best time to get married is at the beginning of the year. The reason is twofold. One is that your wedding would be in the winter, and that is considered the off season for weddings and many locations offer discounts. Another reason is to give you more time to prepare for next year's taxes, by adjusting your tax withholdings and getting used to managing finances as a couple.

Have a Baby

Financially it makes the most sense to have a baby near the end of the year. One big reason is that the IRS considers a baby to be a dependent for the full year even if he or she were born on December 31st. This means that some parents who have babies at the end of the year will get more money back in taxes than they spent on the baby. Also, there are a number of holidays near the end of the year, so you can get extra vacation days to use for the baby.

Close Escrow

Most people try to close escrow as close to the last day of the month as possible. The reason for this is that you have to pay interest on the loan for the days you have borrowed it in the month you are closing. For example, if you are closing on February 14th, 2010 then you would need to bring 15 days of interest to closing to cover the interest from February 14th to February 28th. However, if you close on February 28th then you would only need to pay for one day of interest because you would have borrowed the money for only one day in February. In both cases the next mortgage payment would be April 1st, 2010, but those who close at the end of the month have to bring less upfront cash to closing because they are taking the loan out later.

There are countless instances in life where timing can make a difference in the cost and outcome, and a little research and planning can go a long way. Have you timed a decision that made a huge financial impact in your life?

Permalink | 8 comments | Xin Lu's blog | Channel: Personal Finance, General Tips

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Money Related Traditions for Celebrating Chinese New Year

Xin Lu — Thu, 11 Feb 2010 16:00:02 +0000

By Xin Lu

The Chinese Lunar New Year, or Spring Festival, is celebrated annually by billions of people around the world. In 2010, New Year's Day falls on February 14th. Here are some of the customs related to money and financial prosperity you may see and hear during the Chinese New Year.

Wealth

One custom enjoyed by all Chinese children is the giving of ya sui qian, which literally means "money to push down your age." This custom stemmed from a Chinese folklore that states each year there are evil spirits named sui that sickened children, and each family must bribe the spirits with some money to keep them away. These days kids do not worry about the evil spirits, but get the money. Elders generally would give money in little red packets to children as families visit each other in succession. In fact, it's not just children who receive these "red envelopes" but unmarried young adults as well. Once you are married, the tables are turned and you start handing out red envelopes.

Prosperity

A common greeting for Chinese New Year is gong xi fa cai in Mandarin or gung hay fat choy in Cantonese. It literally means "congratulations and get wealthy." Another greeting that is often seen on cards is nian nian you yu, which means "every year there will be extra." Since the word for "extra" is a homophone of the word for "fish," New Year feasts usually include fish.

Health

Traditional New Year's food is symbolic of the hope for prosperity in the new year. A popular food item to eat during new year is the dumpling. Although they are eaten all year round, they are a must during the new year because dumplings are usually shaped like gold and silver ingots used in ancient China as currency. Another food eaten for prosperity is a sticky sweet rice cake called nian gao, which is a homophone for the words "year" and "high." If you are invested in the stock market you definitely would want it to be higher in the new year.

Ultimately, Chinese New Year is a celebration of family and friends. It is a time when we get together to wish each other the best for the future, and appreciate the fact that we have survived another year, together. Happy new year everyone!

Permalink | 4 comments | Xin Lu's blog | Channel: Art and Leisure

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Used Toyotas Are Being Discounted. Would You Buy One?

Xin Lu — Fri, 05 Feb 2010 14:00:10 +0000

By Xin Lu

Recently Toyota Motor Corp. has been plagued with bad news as it recalled millions of cars and stopped selling several of its products affected with braking issues. These problems have prompted Kelley Blue Book, the pricing guide for used car transactions, to lower suggested rates on the affected Toyota vehicles by 1 to 3 percent, and a company spokesperson said "there may be further devaluation ahead." Would you buy one of these vehicles despite of these issues?

The National Highway Traffic Safety Administration's February 1st advisory lists the recalled Toyota vehicles as the following:

Pedal Entrapment recall:

2007-2010 Camry
2005-2010 Avalon
2004-2009 Prius
2005-2010 Tacoma
2007-2010 Tundra
2007-2010 ES 350
2006-2010 IS 250 and IS350
2008-2010 Highlander
2009-2010 Corolla
2009-2010 Venza
2009-2010 Matrix
2009-2010 Pontiac Vibe

Sticky Pedal Recall:

2007-2008 Tundra
2008-2010 Sequoia
2005-2010 Avalon
2007-2010 Camry
2009-2010 Corolla
2009-2010 Matrix
2009-2010 RAV4
2010 Highlander
2009-2010 Vibe

Additionally, the 2010 Prius is currently under investigation for a software bug in its anti-lock brake system that causes a less than one second lag when the system is engaged.

If you are in the market for a used Toyota, Lexus, or Pontiac you have a lot of possibly discounted models to choose from. Right now I think that Toyota's reputation as the maker of a safe and reliable car is severely tarnished even as it is trying to make repairs on millions of cars. It is possible that many Toyota owners will be looking to get rid of the affected vehicles and further devalue these models on the used cars market.

If you trust that Toyota repaired the issue, there may be a good deal out there for a used Toyota that is less than 10 years old. I guess the old cliche "they don't make them like they used to" is really true in this case.

Permalink | 27 comments | Xin Lu's blog | Channel: Cars and Transportation, Consumer Affairs

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What Would It Take For You to Relocate for a Job?

Xin Lu — Thu, 04 Feb 2010 15:00:11 +0000

By Xin Lu

Last year was a challenging year for American job seekers as corporations cut millions of jobs amidst the recession. This is why I was surprised to read that according to Challenger, Gray & Christmas, only 7.3 percent of job seekers chose to relocate to a new town for a job in the last quarter of 2009. This is the lowest number of relocations since the firm started tracking the statistic in 1986. So what kind of incentives do people need to go where the jobs are?

One big deterrant to relocate is the support network that we have when we live in a place for an extended period of time. It is hard to pick up and leave a place when you have friends and family that help you out when you need it most. This support network is also extremely valuable when you are searching for a new job.

Another problem is that it is difficult to start over in an unfamiliar place. It takes time to learn the streets of a town and where all the conveniences are. When you have children it is also disruptive to their schooling. It is a challenge that many people do not want to take again.

Additionally, there is often a substantial financial cost to relocating. Moving expenses can be in the thousands, and if an underwater house is involved then the costs could be even higher. Some of these costs may be deductible on your tax return, but many unemployed folks these days just do not have the money upfront to facilitate a relocation.

With all of these issues, it is no wonder that many people relocate as a last resort, but I think companies that offer relocation packages make it a lot less painful. When my husband moved up to Northern California after graduating college, his former employer paid for all his moving expenses with the stipulation that he would stay for at least two years, and he did stay for two years. If more companies offered generous relocation packages then there may be more relocations, but the current reality is that most companies have too many resumes to sort through and probably have plenty of qualified local candidates.

Although competition for jobs is fierce all around the country, there are areas with fairly low unemployment rates right now. If you do not mind packing up and starting over in a new city, it may be a little easier to find a job in a place that is hiring instead of firing. The hardest part is making the decision to leave where you are now. What do you think? Have you considered looking for a job in another state or even another country? What would prompt you to relocate?

Permalink | 15 comments | Xin Lu's blog | Channel: Career and Income

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How Will the Obama Middle Class Tax Credits Benefit You?

Xin Lu — Wed, 27 Jan 2010 14:00:02 +0000

By Xin Lu

President Obama is announcing several tax credits for the middle class in his State of the Union speech. Here are some of the details on what the proposals are, and how those who qualify can get the most out of the credits.

The Child and Dependent Care Tax Credit will increase from 20% to 35% of qualifying expenses for families making under $85,000 a year. The credit decreases to 20% for families making up to $115,000. Families could claim up to $3,000 in expenses per child for up to two children. This means that a qualified family that claims the max amount of $6,000 in expenses will see a tax deduction of $2,100 instead of $1,200. It also means that for some families it would become more financially prudent to claim the Dependent Care Tax Credit instead of funding a dependent care flexible spending account with the maximum of $5,000. This tax credit is not refundable so those who do not pay taxes will not receive it.

The Saver's Credit will become refundable and expanded. Currently the credit ranges from 10 to 50 percent on the first $2,000 of contributions people make to a 401(k), IRA, or other qualified retirement plan. The maximum credit is $1,000 for an individual and $2,000 for a married couple. The current income limit for receiving this credit is $55,500 for a married couple. The new proposal would allow couples making up to $65,000 a year get a 50% credit on the first $1000 they each contribute for a maximum of $500 of credit per person. Couples making up to $85,000 would get a partial credit. If this credit were made refundable then those who do not make enough to pay taxes will benefit the most when they save at least $1,000 a year since they will be guaranteed a 50% match from the government.

Obama's middle class task force also proposed several other initiatives relating to student loans and automatic IRAs. The final tweaks to the tax code will still need to be approved by Congress and signed into law, but I personally think that these changes are too specific and will not affect a great amount of people significantly. Nevertheless, those who qualify for the tax credits could stand to gain a maximum of a couple of thousand dollars a year.

What do you think? Will you benefit from these tax changes? Will these tax credits save middle class America?

Permalink | 14 comments | Xin Lu's blog | Channel: Taxes

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Book Review: Complicit - How Greed and Collusion Made the Credit Crisis Unstoppable

Xin Lu — Sun, 17 Jan 2010 16:00:02 +0000

By Xin Lu

This week a government committee is investigating the cause of the financial crisis by interrogating bank titans what exactly went wrong. Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable by Mark Gilbert is exactly what these government officials need to read to learn what went on in the last few years to cause the debacle. Here are some of what I learned from the book.

The book described the myriad of derivative investments that bankers essentially created out of thin air. As long as these derivatives were selling, the bankers were pocketing huge bonuses and their bosses did not care how they made the profit. It was also a strange period where all investments including stocks, commodities, and real estate were going up. As long as everything went up and money rolled in no one seemed to inquire how it was possible.

While this was happening regulators did not really do much to stop anything. In fact, the Glass-Steagall laws established during the Great Depression which separated investment banking and commercial banking was dismantled during the Clinton era. This allowed commercial banks that takes deposits to take much larger risks than they could previously. Bankers took on too much risk with too little capital, and this was described by the author as an "inverted pyramid". Basically the real assets backing all the derivative products was much too small, and just a small portion of the real investments going bad caused many more multiples of that money to evaporate.

This book basically reads like many news reports from the last few years put into chapters and categories. If you want to understand why a small fraction of bad mortgages could have caused so much damage, then you should read this book. The last chapter of the book offers some advice and prescriptions on how to avoid this in the future. I think my favorite part from that chapter is where the author suggested that more women should be hired as banking executives to perhaps soften the risk hungry "macho culture" in finance.

In conclusion, I think this book is a great objective view of what went on in the financial industry and government that caused the crisis to be so devastating. If you are a news junkie or a history buff then you would love this book.

Disclosure: I received a free advanced reading copy of this book and this post contains an affiliate link to the book.

Permalink | 6 comments | Xin Lu's blog | Channel: Consumer Affairs

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How Cleaning Your Wallet Benefits You Financially

Xin Lu — Fri, 15 Jan 2010 15:00:04 +0000

By Xin Lu

It is not quite time for spring cleaning, but if you are a slightly disorganized person like me you may benefit financially by cleaning your wallet or purse.

Use Unspent Gift Cards

My husband was the first to clean his wallet since his wallet was getting extremely thick from the myriad of cards and receipts he keeps. After laying everything out he found that he had several gift cards with a positive balance on them. The gift cards totaled to almost $70 and he used them immediately to treat himself. I always encourage him to use gift cards as soon as possible so that the card values do not get deflated.

Lighten the Weight of Coins

When I cleaned my purse I found a bunch of receipts, and also a fairly large pile of coins. I routinely throw coins into my purse and it simply gets heavier and heavier. I am not sure how much money it came out to be, but it certainly lightened my purse quite a bit and it is now easier to carry.

Dispose of Expired and Unused Credit Cards

Both my husband and I cleaned out expired credit cards and ATM cards. This definitely reduces the confusion when we are searching for our credit and ATM cards and saves some time.

Organize for Taxes

If you have receipts in your wallet that need to be kept for filing your taxes, then it is a good idea to sort them out before they are lost. Receipts are also useful for flexible spending accounts.

The bottom line is that it is definitely a good idea to keep your physical wallet or purse organized so that you do not have to clean out a bunch of junk. If your purse gets cluttered as quickly as mine, it is probably best to clean it on a routine schedule. That way you will avoid carrying around trash and use your money more efficiently.

What was the best thing you found while cleaning your wallet?

Permalink | 6 comments | Xin Lu's blog | Channel: Personal Finance

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Beware of Phony Census Workers

Xin Lu — Mon, 11 Jan 2010 15:00:05 +0000

By Xin Lu

This year the United States Census Bureau will be conducting its regularly scheduled census. Every address in the United States will receive a census form and census workers will be sent to those who do not respond. Unfortunately, con artists may be taking the opportunity to run scams. Here are some tips for avoiding a census related scam.

Ask for identification.

If someone comes to your door claiming to be a census worker, ask for their badge from the Census Bureau. They should also have a handheld computer and a Census Bureau bag. There should also be a confidentiality agreement because it is illegal for census workers to reveal information specifically about you. Before you answer any questions you should make sure that the person is legitimately working for the Census Bureau.

Look out for suspicious questions.

Census workers should not ask you for your Social Security number, credit card numbers, or any kind of banking information. They may ask questions such as race, gender, household income, and education, but any questions that may lead to identity or financial theft would be a warning sign that you are dealing with a scammer.

Keep strangers out.

If someone comes to your door claiming to be a census worker, you do not have to let them in. You should make sure that you are comfortable and safe first. If the person at your door is a real census employee then they should not mind taking your answers down outside. Scammers and other criminals may be more pushy to get into your house.

Avoid forged emails.

The Census Bureau is conducting their business by telephone, mail, or in person. If you receive an email claiming to be from the U.S. Census Bureau, then chances are it is fake. Do not open any attachments in these emails or click links and give out your passwords via these emails.

Do not give out money.

Apparently there are scammers that are using the name of the Census Bureau to solicit donations. Filling out the census form should not cost you any money. It is not an application of any sort and census employees would help you fill out the forms for free.

The best way to make sure that a census worker will not knock on your door is to mail back the simplified census form. As always, you should be vigilant to protect yourself and your family.

Permalink | 10 comments | Xin Lu's blog | Channel: Consumer Affairs

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