By Len Penzo on August 2, 2010
Who doesn’t love a free lunch? I know I’ve never turned one down.
If you believe everything you read on the Internet (as well you should), then there are a lot of products and services out there you should never pay for.
I know because I read about it here. And here. Oh, and here too.
The problem is “never” is such a strong word, isn’t it?
Compounding the matter, “free” is also a bit of a dicey term. And while I’ve never turned down a free lunch I also realize that, in reality, there’s no such thing as a free, er, lunch.
So with that in mind, here is my take on some of the recommended products and services that we’ve been told we should never ever pay a single penny for:
1. Pets
The Conventional Wisdom: Why pay a pet store or a breeder big bucks when you can go to a shelter and adopt
Continue reading 18 Things You (Supposedly) Should Never Pay For. Ever.…
By Len Penzo on July 28, 2010
I saw a report from the New York Daily News that said Chelsea Clinton and fiancee Marc Mezinsky spent roughly $3.3 million on their marriage celebration in New York.
Talk about a big fat expensive wedding.
Truth be told, excluding the Honeybee’s engagement ring and wedding band, I spent a little over $6000 on ours 14 years ago.
For the record, here is a quick-and-dirty approximate cost comparison between the Clinton/Mezinsky and Honeybee/Penzo wedding celebrations:
I know what a lot of you ladies out there are thinking right now: what a pathetic cheapskate.
But before you start feeling all sad and sorry for the Honeybee, let me just say that we had a great time. At least that’s what we’ve been told – and the photos seem to back that up.
You also need to keep in mind that the massive and incredibly pernicious effects of inflation over the last 14 years skew those numbers somewhat. So much
Continue reading Your Big Fat Expensive Wedding: Stupid Is As Stupid Does…
By Len Penzo on July 21, 2010
We held out for as long as we could. We really did.
Despite an intense and relentless lobbying effort from my son, the Honeybee and I stayed strong and denied his repeated requests for a cell phone.
And, boy, were there a lot of requests.
I can’t remember the exact day he first requested his own cell phone, but I am quite certain the first letters he learned in school weren’t A-B-C. They were A-T-(T).
When Matthew turned 12 last year, we decided it was finally time to grant his wish. The only condition was that he had to pay us $25 per month to maintain his account. Knowing that he could easily earn $40 per month by simply mowing the lawn and doing chores around the house, Matthew readily agreed – and so we got him his phone.
Three months and two missed payments later, Matthew’s coveted phone was “repossessed” by the First
Continue reading My Teenage Son, His Cell Phone, and the Bill for $1,055.20…
By Len Penzo on July 19, 2010
It is a truism that most big spenders are showoffs; they feed off attention.
Ironically, while your typical big spender works 24/7 trying to impress others, most of the time they rarely do so.
There is a small segment of the population, however, that naturally gravitates to these self-absorbed cocks-of-the-walk. Younger women, especially, seem to be lured by the glitter and glam of these show-offs, hoping to get just a small taste of the rock-star life.
Unfortunately, thanks to easy credit afforded by credit cards, too many big spenders like to put on a show even though they don’t have the dough in their bank accounts to back it up.
In other words, while all big spenders love to talk the talk, very few can actually walk the walk. Especially over the long run.
So if that’s true, what motivates such financially reckless behavior for the majority of these big
Continue reading The Ugly Truth: Why Big Spenders Are Terrible In Bed…
By Len Penzo on July 12, 2010
I love tomatoes. I don’t think many people will argue with me when I say there is nothing better than a fresh-picked home-grown ‘mater.
I love them so much I usually grow them in my backyard every summer but, for some stupid reason, this year I just never got around to it.
Anyway, the other day I was picking up a bunch of fruits and vegetables at my local grocery store and, of course, tomatoes were on my list.
Grocery store tomatoes can be such a tease. I find the grocery store ‘maters to always be visually appealing, perfectly round with a nice red color, but every time I bite into one I am terribly disappointed by the lack of flavor. In fact, they are practically tasteless – especially when compared to the home-grown ones.
For that reason – and with no home-grown tomatoes waiting for me at home - I
Continue reading 15 Organic Fruits & Veggies That Aren’t Worth Paying More For…
By Len Penzo on May 27, 2010
That’s right. Although having a million bucks isn’t as impressive as it once was, it’s still nothing to sneeze at.
In fact, Reuters reports that in 2009 there were 7.8 million millionaires in the United States.
That’s a lot of people, people. And the odds are one or two of them are living near you.
Heck, one of them might even be your neighbor. In fact, the odds are very good that it is your neighbor.
But, Len, you don’t know my neighbor. That guy doesn’t look anything like a millionaire.
Well, guess what? Your suburban millionaire neighbor called (oh yeah, we go way back) and the two of us had a nice little chat.
Here’s a few things he shared with me – but apparently doesn’t want to tell you. (No offense, I’m sure.)
1. He always spends less than he earns. In fact his mantra is, over the long run, you’re better off if you
Continue reading 19 Things Your Suburban Millionaire Neighbor Won’t Tell You…
By Len Penzo on May 19, 2010
A few days ago Jennifer from Live Richly commented on a post I had written entitled 8 Big Reasons Why You’re Getting an F in Personal Finance 101. She was lamenting the sense of entitlement she saw in many people. Here is an excerpt:
“I know a woman who is a single mother and hit up her friends for money to replace the engine in her SUV. I declined to participate because even though I have a lot more money than her, I have a 9-year-old car that’s worth maybe $2000, and hers is worth about $30K. Her engine costs more than my whole car… I will admit that peer pressure is real though. I’ve had many people mock my car, and if I cared, I would run out and get a fancier one.”
Ah, Jennifer. Let them mock you all they want because those people clearly have a misguided view of
Continue reading Why Your Expensive Luxury Car Doesn’t Impress Smart People. (Or Me.)…
By Len Penzo on May 12, 2010
From time to time I enjoy reading some of the interesting and often inspiring stories in Dmitry Davydov’s blog Uncommon Business.
Uncommon Business features people who make money online selling unusual, strange and sometimes bizarre things or provide curious services.
For example, in the past few weeks Dmitry has featured stories on businesses that cater to neo-survivalists looking to outlast the end of the civilized world as we know it, as well as a relatively new company out of Norwell, Massachusetts, that is in the business of financing only weddings.
Sometimes, these odd businesses and business ideas end up earning their owners millions of dollars over a relatively short amount of time.
In fact, at a companion site of his called MadConomist, Dmitry has highlighted ten particularly nutty – but very profitable – business ideas that resulted in million dollar paydays for the proprietors. Here are five of my favorites from that
Continue reading 5 Crazy Ideas That Resulted in Million Dollar Paydays…
By Len Penzo on May 10, 2010
We tend to take for granted that the terrible misfortunes we see on the nightly news befalling people every day will never ever happen to us. Perhaps that is so for the majority of folks. But it is not certain by any means.
By the time I was thirty I had already experienced more than my share of personal misfortune.
When I was sixteen I was in a terrible car accident, the result of an inattentive driver running a red light one particularly foggy morning. The car I was a passenger in got t-boned (on my side). The last thing I remember before the impact was looking to my right as we entered the intersection and seeing a pair of headlights bearing down on us through the fog like a laser beam. The resulting crash put me in the hospital for more than two weeks and required two surgeries and six months
Continue reading How I Survived Two Armed Robberies (And How You Can Too)…
By Len Penzo on May 4, 2010
Do I think it’s wise for you to pay off your mortgage early?
You may as well ask me if I think it is a good idea if you paint your living room sage green.
I used to think paying off your mortgage was an absolute no-brainer.
Then I did a complete 180, changing direction like one of those day-glo orange heliport windsocks. Oh yes, I did.
After resurveying the macroeconomic condition of the United States and trying to interpret the future direction of its fiscal policies I was ready to declare that maybe, just maybe, prepaying the mortgage isn’t such a good idea after all.
Suddenly it just didn’t seem like it made much sense to pay down a 30-year $120,000 mortgage at 4.5% interest if I truly believed that high-inflation was inevitable down the road as a result of Fed’s relentlessly lax monetary policy and the current administration’s plans to greatly expand the
Continue reading 12 Good Reasons Why You Should (and Should Not) Pay Off Your Mortgage Early…
By Len Penzo on April 19, 2010
I’ve sold one house in my life and I did that on my own without a realtor. Yep. For sale by owner (or FSBO).
Oh, I started out with a realtor because I was young and rather naive at the time; I thought it would be crazy to not go with a professional.
The first realtor I took on signed me up to a 90-day contract and then sat on it, doing little marketing and zero open houses.
When I asked him what he was doing marketing-wise to push my home, he showed me some fliers he had printed up at the local copy store. Other than that, all he could say was he was very busy and that he had my house entered in the Multiple Listing Service (MLS). Obviously he was juggling a lot of clients, and my low-priced starter home was probably not worth enough to justify more of his
Continue reading Real Estate Agents: Why You Rarely Get What You Pay For…
By Len Penzo on April 6, 2010
Reverend Len from the First United Church of Our Lady of Blessed Household Finances is back in his pulpit and I know you all know what that means…
Yep. It’s time for another homily for my small but faithful congregation!
I’ve already showed you how faithfully following my ten commandments of personal finance will guarantee you financial freedom.
Can I get an Amen, people!?
I’ve also explained the evils of the seven deadly sins of personal finance and how they can quickly lead you astray.
Now let me hear a Hallelujah, brothers and sisters!
This week I’d like to talk to you about the righteousness of sticking to your budget and the biggest obstacles to that pious goal.
Many of you in my congregation that still find yourselves living from paycheck to paycheck may be surprised to learn that the source of your money strife might be directly traced to the Four Horsemen of Personal Finance.
These riders
Continue reading Beware The Four Horsemen of Personal Finance…
By Len Penzo on March 29, 2010
When it comes to breakfast, kids can be real cereal killers. Unfortunately, for those of us trying to keep our grocery costs reasonable, name-brand cereals can be a very expensive proposition.
When I was growing up, I remember my sister pounding down multiple bowls of Froot Loops and Lucky Charms every morning.
I enjoyed kid cereal too – Apple Jacks and Frosted Flakes are still favorites of mine – but I never could put it away like Sis.
Cereal is Big Business – Here’s Why
Here are a few facts about cereal I found while surfing the Internet:
On average, Americans consume 160 bowls of the stuff each year – that’s 10 pounds per person. Ireland, England, and Australia eat even more than that on a per capita basis.
Cereal continues to be one of the most popular products in terms of dollars spent at the grocery stores – in 2009 it ranked eighth.
When it comes
Continue reading Taste-Test Experiment: An All-Kid Panel Evaluates Name-Brand vs. Store-Brand Cereals…
By Len Penzo on March 22, 2010
In this tough economy, businesses of all types are trying to nickel and dime us to death with add-on charges.
Those charging the fees want you to believe that the fees are necessary to cover the additional costs of doing business.
In reality, all these fees do more often than not is mislead the consumer by adding a hidden mark-up to the advertised price. Sometimes the fees are small, but other times they can be quite severe.
The mortgage loan industry has been doing this forever, but now the practice of tacking on fees has spread like the plague to many other services.
Certainly I can’t be the only person who is outraged by this continuing practice. Or am I?
Here are eight classic fees that really gnaw at me. Some of them I do a pretty good job of avoiding. Others, not so much…
1. Unlisted Phone Number Fees
This is arguably the granddaddy
Continue reading 8 Stupid Fees Consumers Hate to Pay (But Often Do Anyway)…
By Guest on March 10, 2010
Should you walk away from your mortgage just because your home depreciated?
So you refinanced. Or bought too much house. You divided the mortgage payments by your income, and decided you could swing something a few percentage points higher than the recommended 25–33 because the market was rising and your house would make you rich just by existing.
You relied on speculation as an investment strategy (not even your own speculation, but other peoples’.) But your house got cheaper, maybe cheaper than what you bought it for. That’s called “losing money on an investment”, which happens all the time, but people think it oughtn’t when your bedroom and kitchen are inside the investment.
The market might bounce back. If you’re 7 years in, lots can happen in the remaining 23 on a 30-year mortgage.
When you lose money on a stock, your (invisible) bank account gets wiped out. Owe more than your vehicle is
Continue reading The (Dead)Beat Generation…
By Len Penzo on March 8, 2010
The other night the Honeybee and I sat down and watched the 82nd Annual Academy Awards, and I have to say it was the most entertaining show I’ve seen since Billy Crystal was hosting.
Naturally, we recorded the event to avoid all the commercials.
Here’s my minute-by-minute take…
7:30 PM: The Honeybee and I send the kids upstairs and snuggle up to the fire before hitting the play button. I’ve also got with me my trusty bag of Hostess mini-donuts (chocolate) and a glass of milk. The Honeybee goes the other route: A big bag of peanut M&Ms which she has decided to wash down with a Jack and Diet Coke. I know.
7:33 PM: WTF is this? Is that Doogie Howser doing a song-and-dance number? Yep. But you know what? As I watch Neil Patrick Harris start belting out his number it is obvious that he is a capable singer. Who knew? I’m
Continue reading Dear Diary: A Night at the Oscars with Me and the Honeybee…
By Len Penzo on February 2, 2010
In a completely unscientific survey conducted by AOL, over seventy-thousand people responded to a poll asking if they collected US state quarters that were produced under the US Mint’s extremely successful 50 State Quarters program.
Seventy-eight percent answered yes.
According to the US Mint the program was launched in 1999, as part of a 10-year initiative that honored each of the nation’s states in the order that they ratified the Constitution or were admitted into the Union.
Each quarter was minted for a 10-week period and they will never be produced again.
My US State quarter collection will never be valuable because I only bothered to collect one quarter for all 50 states. If I was truly serious I probably should have collected three quarters for each state: one from the Denver mint, one from the Philadelphia mint, and the proof coins from the San Francisco mint.
Oh well. Nobody will ever confuse me with
Continue reading The 5 Worst US State Quarter Designs…
By Len Penzo on January 31, 2010
This past week, the technologically ground-breaking 3-D movie Avatar was hailed across the globe as the new king of the box office world, “topping” Titanic’s box office take by grossing over $1.859 billion worldwide.
According to the media, this week Avatar will also surpass the $600 million mark in the United States and overtake Titanic as the domestic box office record holder as well.
I understand why, when reporting box office totals, the press loves to cite gross dollars. The problem with that, of course, is that those gross figures ignore the corrosive effects of inflation on the value of money.
After all, nobody would care if they printed the real story that said, in terms of the domestic box office, Avatar is only the 21st biggest movie of all time – which it was as of the end of January.
When Gone with the Wind came out in 1939 a dollar had the
Continue reading Inflation 101: Why Avatar Isn’t the Biggest Movie of All Time (And What Movie Is)…
By Len Penzo on January 17, 2010
Some time ago, upon walking through the door after a hard day at the office, the Honeybee greeted me with a big kiss. She was also putting the final touches on a chicken dinner that smelled absolutely delicious.
Now, normally, the only warm-blooded creature in the house that ever bothers to get up and acknowledge me when I come through the front door is my dog, Major.
Couple that with the fact that I’m the family cook – usually, the only time the Honeybee whips up dinner is when I’m on a business trip – and I immediately knew something was wrong.
“Okay. What happened, Honeybee?” I asked as soon as our lip lock was completed.
“I got a parking ticket,” was her matter of fact reply. After almost 14 years of marriage, we both know the futility in extending charades after they’ve been called out.
“How much?”
“Thirty-five bucks. But I’m innocent.”
“Of course you are
Continue reading When Pigs Fly: How I Fought My Parking Ticket and Beat City Hall…
By Len Penzo on January 14, 2010
This is a review of the 2009 movie The Taking of Pelham 1 2 3 starring Denzel Washington and John Travolta
Plot Summary: Armed men hijack a New York City subway train, holding the passengers hostage in return for a ransom, and turning an ordinary day’s work for dispatcher Walter Garber into a face-off with the mastermind behind the crime.
Me: This movie was a remake of the 1974 classic of the same name starring Walter Matthau, Robert Shaw and Jerry Stiller.
The Honeybee: Not the same Jerry Stiller from Seinfeld and The King of Queens?
Me: The very same one, Honeybee.
The Honeybee: I never pegged him to be a serious actor, but I guess if guys like Adam Sandler and Bill Murray can take on a serious role or two, so can Stiller.
Me: I have to confess I never saw the original version, but if it is as good as the remake then
Continue reading Drive-By Movie Review: The Taking of Pelham 1 2 3…
By Len Penzo on December 17, 2009
At my house we draw names each year for the annual Christmas gift exchange.
The drawing is usually done each Christmas, long after all the presents from the current holiday have been opened and everybody has stuffed themselves on the traditional “chickadel” dinner – actually a homemade doughy Italian pasta, better known as cavatelli.
Everybody’s names are put into a Santa hat and then we all take turns to see who we’re going to buy presents for on the following Christmas.
This Christmas I drew Uncle Paul’s name – which really put me in a bit of a spot.
I get intimidated when I draw somebody’s name like Uncle Paul out of the hat.
What do you get an octogenarian who has all the money he’ll ever need, and already has everything he’d ever want? Let’s face it, when the guy wants something he’s going to buy it.
I asked for help from his wife, but
Continue reading 9 Great Gift Ideas for People Who Have Everything…
By Len Penzo on November 15, 2009
Recently the Honeybee alerted me to the fact that our hot water heater was making popping and cracking sounds that she had never heard before.
This got me a bit worried because the heater was 12-years-old and I knew it was on its last legs. When a water heater dies it’s not a pretty sight.
Trust me when I say it is always better to put an old heater out to pasture before it kicks the bucket – not after.
Two of my neighbors waited until it was too late and were duly rewarded with floods of biblical proportion – 50 gallons of water which was dutifully soaked up by area rugs, the walls, cheap wood storage cabinets and/or boxes containing irreplaceable photos, Christmas decorations, and important family documents.
I was determined that wasn’t going to happen to me.
So I quickly got a few estimates for replacing the water heater. They all hovered in
Continue reading Dear Diary: How I Fixed My Water Heater Without a Plumber and Saved $400…
By Len Penzo on November 10, 2009
There has been a lot negative publicity about credit card usage in the personal finance blogosphere recently. Baker over at Man vs Debt basically told the credit card companies what they could do with their cards.
That’s cool.
My friend and proprietor of Debt Free Adventure, Matt Jabs, is also not a fan of plastic and he is currently waging his own war against credit cards and the companies that distribute them.
That’s cool too.
A couple of weeks ago Matt specifically asked those of us who take advantage of credit card rewards programs to rethink our returns and join him in cutting up our plastic in a post he entitled Credit Card Rewards – Rethink Your Returns.
In case you missed that well-researched and very thoughtful article, Matt noted that the credit card debate is essentially between two very entrenched camps, which he called “Camp Rewards” and “Camp Avoid.”
As Matt said so well, and
Continue reading No, I’m Not Cutting Up My Credit Cards! (Maybe You Shouldn’t Either.)…
By Len Penzo on October 22, 2009
This is a review of the 2008 movie Vicky Cristina Barcelona starring Scarlett Johansson, Javier Bardem and Penelope Cruz
Plot Summary: Two girlfriends on a summer holiday in Spain become enamored with the same painter, unaware that his ex-wife, with whom he has a tempestuous relationship, is about to re-enter the picture.
Me: Well, Honeybee, we’ve been off for two weeks from the business of reviewing movies. Did you enjoy your vacation?
The Honeybee: The “business of reviewing movies?” I think you need to get a grip – I didn’t realize we were getting paid for this.
Me: Oh brother, here we go again…
The Honeybee: But since you asked, I will say I did miss watching you pretending to be an A-list movie reviewer over the past two weeks.
Me: Thank you. I think.
The Honeybee: What about you, did you enjoy your time off, Roger Ebert?
Me: Well, I am definitely refreshed and ready to roll
Continue reading Drive-By Movie Review: Vicky Cristina Barcelona…
By Len Penzo on October 20, 2009
One of the great never-ending debates in the world of personal finance is whether or not name-brand groceries are really worth the extra cost when alternative cheaper store-brand groceries are available. Furthermore, when it comes to edible products, does the quality and taste of name-brand products always justify the price premium, which can often times be as much as 50%?
Because inquiring minds like mine want to know, I decided to find out for myself by conducting a blind taste test using my very-opinionated family members to settle the question once and for all.
So last week, I headed out to our local Albertsons grocery store with my son, Matthew, and we picked out half a dozen everyday grocery products for the experiment. To ensure a one-to-one comparison, we only chose name-brand items that had identical store-brand counterparts; package size and item type had to be identical, or virtually identical.
The next step
Continue reading My Store-Brand vs. Name-Brand Blind Taste-Test Experiment…
By Len Penzo on October 15, 2009
Readers: This week’s Drive-By Movie Review has been preempted because I wanted to participate in the 2009 Blog Action Day. Blog Action Day, which is officially today, is a day where thousands of bloggers are asked to write on a common topic. This year’s theme is “climate change”, which just happens to be the new moniker for global warming – changed by the global warming movement after numerous studies conclusively showed that the Earth has been cooling since 1998. Obviously, the organizers of Blog Action Day have bought into the hysteria. I decided to stir the pot just a bit and provide a dissenting opinion. I hope you enjoy it, regardless of what side of the fence you sit on. Best, Len.
DEAR EDITOR:
I am 61 years old.
Many people continue to say there is no such thing as global warming.
My wife Tipper says, ‘If you see it in Len Penzo dot
Continue reading Yes, Al Gore, There Is Such A Thing as Global Warming…
By Len Penzo on October 6, 2009
Back when I was a kid, I remember going to Catechism and learning about the seven deadly sins.
Maybe that’s why this national sin survey, conducted by a Kansas State University team of geographers, caught my attention last week. The provocative survey, actually an academic study, measured and created a “sin index” for 3000 US counties with respect to pride, envy, lust, gluttony, wrath, greed, and sloth.
Fascinating stuff.
Did you know your personal finances are subject to the very same seven deadly sins that many believe afflict the human soul? It’s true.
That’s why today, my fellow finance sinners, Reverend Len from the First United Church of Our Lady of Blessed Household Finances is holding confession for our small – but mighty and quickly growing – congregation.
Now let me hear a Hallelujah, brothers and sisters!
It’s time to step into the confession booth and reflect upon whether you have committed any
Continue reading The 7 Deadly Sins of Personal Finance…
By Len Penzo on September 15, 2009
I was standing in line at a local electronics store the other day when I struck up a conversation with the guy ahead of me who had a basket full of battery chargers and AA rechargeable batteries. It turns out he had decided to replace all of the batteries in his house with the rechargeable kind. Between the batteries and the chargers this guy plunked down over a hundred bucks!
He was so proud, telling me about all the money he was going to save.
I didn’t have the heart to ask him if he had the same typical electronic devices found in most homes, because if he did then he probably ended up spending a lot more money than he should have.
Rechargeable Batteries Aren’t Always Cost Effective!
I realize many people want to convert to rechargeable batteries for environmental reasons, which is fair enough. But the truth of the matter is this:
Continue reading Why Rechargeable Batteries Are Rarely Cost Effective…
By Len Penzo on September 8, 2009
Oh, am I going to make some enemies today.
Last week I did a very well-received article on the 10 most underpaid jobs. Today I tackle the other, more controversial, side of the coin – the 10 most overpaid jobs.
First I want to apologize in advance. I am quite certain this list will offend more than a few of you. I’m sure many of you believe this list is nothing more than a bunch of sour grapes (or worse). Call it what you will. Just remember, in the end, it’s just one man’s opinion.
So, after reading this list, if you think I’ve overlooked a particular job (like mine or your neighbor’s) or if I have managed to list your job, feel free to leave a comment and let me have it with both barrels.
Just keep the profanity and ad hominems to a minimum.
10. Television Weatherman
Oh Yeah? Give Me One Good
Continue reading The 10 Most Overpaid Jobs…
By Len Penzo on September 1, 2009
Most everybody thinks they’re underpaid for what they do. But in reality, there are a handful of select jobs where this claim is especially true. Here’s my take on the 10 most underpaid jobs. Unless otherwise noted, annual income figures are based on data from the U.S. Bureau of Labor Statistics.
After reading this list, if you think I’ve overlooked a particular job (like yours), please leave a comment and let me have it with both barrels. Just keep the profanity and ad hominems to a minimum.
10. Janitor
Average Annual Income: $23,500
Annual Income If It Were Up to Me: $45,000
Appreciation Meter: Office outcasts rarely invited to workplace birthday celebrations and promotion parties.
Why They’re Underpaid: In office buildings and schools all over the world, janitors quietly go about their job of picking up everybody’s mess. Their work is usually done behind the scenes, so it’s easy to overlook the fact that they often
Continue reading The 10 Most Underpaid Jobs…
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