October 30th, 2014 | No Comments »

Welcome-to-Colorado-Marijuana-Green-Rush-750x471

A few months ago I wrote a post Is Marijuana A Viable Business? that outlined some of the challenges marijuana businesses are facing.

I saw an article last month about more challenges that marijuana businesses are facing. A marijuana distributor in Colorado filed for Chapter 7 bankruptcy protection. If approved, the debtor turns over assets to a trustee, who liquidates the assets and distributes proceeds to the creditors. In this case, the assets were 250 marijuana plants valued at $250 each. The case was dismissed by a US bankruptcy judge because although the distributors activities were legal under Colorado law, they violate the federal Controlled Substances Act.

In this case, the trustee would take possession of the assets (marijuana plants) and distribute the proceeds of their sale. Doing so would have the trustee take part in a federal criminal activity. Not acceptable!

The debtor also is unable to convert the bankruptcy to Chapter 13, which would allow him to pay off the debts over time. The funds to pay the debts would come from criminal activity and involve the trustee in distribution of funds from a criminal activity. Not acceptable!

This is not the first case of a marijuana business the has been denied bankruptcy. It seems that the challenges continue to add up for business owners. Until the state and federal governments get on the same page, it’s unlikely that these issues will be resolved.

The full article is available at the Denver Post.

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October 28th, 2014 | 4 Comments »

grow money

It’s  October, which means it’s time for another new worth update….

Assets

Our liquid savings increased 1%. We’ve focused more money on paying down my student loans so there is less going into our savings account.

My 401K had a 3.62% increase for the 3rd quarter. The increase is mostly due to contributions, there was a small gain on the investments. Mr. Tre’s accounts had an 8.5% increase. This was also due to contributions.

Our rental property increased in value by 3%. The market in the neighborhood is still going strong. We are considering selling next year and investing our gain in a property with a higher cash flow.

 Liabilities

Our debt decreased by 1%. My student loan balance decreased by 5%, but that was offset by credit card debt. We haven’t been carrying credit card debt, but as I mentioned last week, I did not file my expense reports and the balance was carried on my credit cards. I filed my reports this week and the credit card balance will be paid off by the end of the week.

Net Change

Our total net worth increased by 19% during Q3. I’m optimistic that if we continue saving and paying down debt at our current rate, we will be at our pre-recession net worth by the end of the year. Our investments are down, but I’ve taken advantage of that to move some cash in our retirement accounts into stocks.

Looking Forward

The plan for the next quarter is to continue saving and paying down debt. We will also do our tax planning for 2015 so that we are ready for open enrollment meetings.

How was your 3rd quarter? Have you looked into retirement and health savings accounts for 2015?

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October 27th, 2014 | 1 Comment »

This week on the House of Tre we talked about…

being back on my blog and messing up. It’s time to get back on track in my life and my blog!

…Leasing Commercial Space. As part of the Chasing Our American Dream series I’m looking at different business opportunities. If you want to open a store, it’s important to understand all the terms in the lease.

Blogs I Loved….

I’ve got a lot of catching up to do with my favorite bloggers. These are some of my favorite blogs this week….

…@debtdebs posted Spotlight on Adversity. I think once of the best parts of blogging is the constructive comments and encouragement from other bloggers.

…@RFIndependence posted When The Joneses Want To Belong.

…@yesiamcheap shared how she paid off over $50k in debt in less than two years. You have to read her debt payoff story!

Hope you have a great week!

Tre

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October 23rd, 2014 | No Comments »

As part of the Chasing Our American Dream series, I’m exploring different ways to build wealth. Last time we talked about opening a retail store. This week we are talking about finding a storefront.

Looking for commercial real estate can be overwhelming for a first-time business owner. You need a space that will bring in traffic, but will not bust your budget. Once you find your perfect storefront, you have to negotiate a lease.

Finding the Perfect Spot

Who is your customer? Is your item an impulse buy? Or are you a destination store? You cannot find your ideal retail space without knowing your customer and how they think.

Once you know who you are selling to, you can start looking for the perfect location. Commercial real estate brokers are an excellent resource. They have information on the demographics of the area and the foot traffic. They can also help with your lease negotiations.

Understanding The Lease

Leases are legal documents. As a small business, you will most likely sign the standard lease form of the property manager. This lease is written to benefit the property manager, not you. You should have a lawyer to review the lease and explain all the terms of the agreement. Here are some key lease terms:

Base Rent: This is the minimum rent payment. It covers the rent for your space. There will be additional rent outlined in the lease.

CAM: CAM stands for Common Area Maintenance. The lease may either require a CAM contribution or payment of pro-rata share of actual CAM expenses. The lease will also detail which expenses are included in CAM. If you are paying pro-rata share, you will receive an annual statement from the property manager of actual expenses.

Gross Rent: A single rent payment that includes base rent and CAM.

Marketing Fee:  Some shopping centers require tenants to pay a marketing fee. The fee is to cover marketing expenses for the center, but most leases do not require the  property manager to detail how they spend the fee.

Percentage Rent: Percentage rent is rent paid on a percentage of sales. Some leases require percentage rent in addition to base rent after your store passes a specific sales volume. Other leases have percentage rent instead of base rent. For a new operation, this type of lease can help while they grow their customer base because it makes rent a variable expense.

These are just a few issues to keep in mind while you start looking for your storefront. It’s important to have professional resources such as a commercial broker and lawyer  that you trust and can help you navigate the lease negotiations. Make sure that any promises made during lease negotiations are included in the lease document.

Do you have any other questions about leasing commercial space? Do you have any advice for a new business owner?

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October 21st, 2014 | 11 Comments »

Okay, it’s been a few weeks since I posted. What have I been doing? Work, work, work, work, work, work.

I got overloaded at work and buried my head. BIG MISTAKE. I realized that not only have I neglected my blog, but I’ve neglected myself. I’ve been eating crap. I haven’t worked out. I’ve ignored my finances.

Yesterday I decided to peak at my finances with one eye closed cause I knew it was going to be scary. What did I see? I totally messed up!

I have a lot of travel expenses for work. I haven’t filed an expense report since the end of August. Since I didn’t get my expense reimbursement, I didn’t pay my credit card in full. Which means I paid interest on my credit card. All because I didn’t take a few minutes to file my expense report and get it signed. Ugg!

Since I was already feeling down, I decided to hop on the scale and see how that was going. Uggg! I don’t even want to admit what I saw.

So I’m back. This blog keeps me accountable to myself and I promise not to drop off the earth again.

I’ve missed you all and I have a ton of catching up to do!

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September 25th, 2014 | 2 Comments »

As part of the Chasing Our American Dream series, I’m exploring different ways to build wealth. This week we are talking about opening a retail store.

Retail Store

A retail store is a physical location where you sell products. It could be in a mall or on a street. Wherever you choose to open, you will face competition from both the Big Box stores (Wal-Mart) and online (Amazon).

How will you distinguish yourself?

It’s difficult to distinguish yourself on price when competing against retail giants that sell everything. To be successful, your store needs to sell something people want and be somewhere people go. Maybe you sell something unique, or something that people would prefer to see before buying. Or you distinguish yourself based on the experience customers receive.

3 Questions To Ask Yourself:

1. What will you sell?

What products will you sell? How common is your product? Will people come to your store just to get that product or can they get it anywhere? Where will you source your products?

2. What sets you apart

Why will people come to your store? Once customers come in, will they come back? Or will they tell their friends about you? Do you sell something unique? Do you provide a unique customer experience? For example, a Nail Salon recently opened in our town that is decorated with chandeliers and very high end finishes. Customers are given a glass of wine while they receive their services. There are Nail Salons on every block in our town, but this is the only one that offers that experience. Customers are willing to pay a little more for the experience.

3. Where will you open?

Finding the right location is a key to your success. Who is going to buy your product? Where do they shop? Will you open in a mall or a downtown storefront? How easy is it for customers to park and get into your store

Once you know your product, where you will source it and who your customer is you can start looking for a location. Next week we’ll talk about finding a location and what to know about leasing retail space.

Have you ever opened a retail store? What was your greatest success? What did you wish you knew before opening?

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September 21st, 2014 | 6 Comments »

This week on the House of Tre we talked about…

…I was nominated for the Versatile Blogger Award by Brian @ Debt Discpline. Wahoo!!

How Not To Get New Customers, otherwise known as our adventures with Dish Network. I’m happy to say that after 8 days of calling them and still not getting the channel he wants, Mr. Tre has decided to cancel our service. Happy day!

…the Frugal FinCon Fiesta! Thanks DebtDebs for organizing the party! I found lots of new blogs and learned so much about other bloggers.

3 Surprising Facts About Successful Retirees as part of the #RetireeNextDoor event for FinCon. Download the free ebook  by September 30th.

Thank you Christa of Object Wealth for nominating me for a Liebster Award.

Whew, that was a busy week! Thanks to everyone who visited my blog or shared my blog with others.

This week is my travel week for work, so it will be a different kind of busy. I’m starting to think I should block off random times with fake meetings so they can’t overload my schedule :-) maybe next time.

 Blogs I Loved….

Thanks to the Frugal FinCon Fiesta, I found a bunch of new blogs this week. I’m not sure how I’m going to keep up with them all, but here are my favorite “new to me” finds of the week….

…@BustedBudget shared her Frugal Finds.

…@DownstairsDebt celebrated her Blogiversary!

…@ObjectWealth wrote out How To Make The Most Out of Failure.

Hope you have a great weekend!

Tre

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September 18th, 2014 | 1 Comment »

Saving for retirement is a common topic in the personal finance world and most of the advice seems to revolve around three key ideas:

1. Save 10% of your salary for retirement

2. Accumulate at least $1,000,000 in your retirement accounts

3. Pay off your mortgage

A recent survey of over 500 successful retirees conducted by MoneyTips.com provided some surprising information. What did we learn?

 36% Never Calculated How Much They Needed to Save for Retirement

There are several theories on how much to save for retirement. Some financial advisors suggest a minimum of $1,000,000. Other financial advisors suggest enough to replace 80% of your income. They all agree that you need to calculate how much to save and create a plan to reach your goal. That’s why it’s surprising that 36% of the retirees surveyed never calculated how much they needed to save.

68% Have a Net Worth Less Than $1,000,000

Pay off your debt. Have at least $1,000,000 in retirement savings. Those two pieces of advice make a $1,000,000 net worth the minimum to retire successfully. But according to this survey, only 31% of retirees have a net worth over $1,000,000. 25% of the retirees surveyed have a net worth between $500,000 and $1,000,000.

They Didn’t Save Early

51% of the retirees surveyed did not save in their 20s and 30s.

25% did not save in their 40s.

For those that did save, 6-10% was the most common savings rate for all age groups.

It’s not to late to start saving for retirement. Don’t worry if you don’t know how much, just start saving! Want to learn more from successful retirees? The Retiree Next Door Ebook is available free until September 30th.

 

 

Source: Moneytips.com.

The Retiree Next Door

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September 18th, 2014 | 24 Comments »

fiesta

Debs from Debt Debs had a great idea for those of us too poor frugal to attend FinCon this year. We’re having our own blog party! The Frugal FinCon Fiesta!

For the next 3 days I’ll answer questions you post on the blog. Ask me anything (except my secret identity) and I promise to answer. Please post your questions in the comments and I’ll update the post with my answers. If you are not a blogger, stop in and say hello. This blog party isn’t just for the geeks personal finance bloggers.

Update #1

Thanks everyone who has stopped by and asked me question!

Brian @DebtDiscipline asked: Do you ever think you make the trip to a FinCon?

I would love to make the trip to FinCon one day. It sounds like there is so much to learn. I’m hoping the next one will be close to home. I travel 25% of the time for work, so it’s hard to add another trip away from the family.

Tonya @ BudgetandtheBeach asked: What are your biggest pet peeves?

Ooohh, that’s a hard one. I think being late is my biggest pet peeve. I get really stressed out about being late and it irritates me when other people are late.

Brandy @Busted Budget asked: What was your FIRST job and what was your WORST job?

My first job was at Burger King when I was in high school. It was fun, but it made me realize how important school was. I couldn’t understand how the people with kids survived on the wages.

My worst job was at Revenue Canada. Everyone thinks I’m nuts when I say that because it was a union job, but I HATED every minute of it. I worked in the mail room processing incoming tax returns. We had to process a certain number of returns per hour and could only take a bathroom break during set times. If you finished what you were doing before leaving for break, you got yelled at by a supervisor.

Kirsten @ Indebtedmom.com asked: What are your three biggest accomplishments in life?

Number one would have to be my babies! Or would that be number one and two? They like to remind me they aren’t babies any more, but they still are to me :-)

Number two is travelling by myself in a country I didn’t speak the language. I spent a month in South Korea and traveled everywhere by train. It was one of the best trips I’ve ever had.

Number three is finishing grad school with a newborn and full-time job.

Brooke @ PFTwins asked: How did you get into student loan debt and what’s your approach to tackling it? How is your business plan/goals coming along? My husband wants to start his own business and is finding it so hard to get started / get momentum at the very beginning.

All of my student loan debt is from grad school. In retrospect we should have tightened the budget and tried to get through without loans, but we were living the dream and didn’t want to make sacrifices :-) At first I was making my minimum payments and pretending the loans didn’t exist. I did write about my pay off strategy in this post. I’ve increased my extra payment to $750 per month since then.

My business is stuck. Like I need to call the tow truck to drag me out of the mud stuck. I have a lot of great ideans, but I don’t have enough time to get everything done and tasks are taking longer than they should. I think I need to hire someone to help me with the website, but it’s hard to justify spending too much when you are starting up. Is that how your husband feels?

Jean @ Nearly Retired asked: What’s the best book you’ve read this year?

The best book I read this year was The Divorce Party by Laura Dave. It was a book I randomly picked up at the library and finished it the same day.

Update #2

May @Messy Money asked: what has been the biggest surprise about blogging for you?

That people are actually reading my blog! After that shock wore off, I was surprised by how supportive other bloggers are and that they are always willing to offer advice. It’s really a great community.

Kara @The Daily Wisk asked: In a world where all cars cost the exact same amount – which is your dream car?

Hmm…that’s a hard one. I’m not really a car person. I guess something convertible, but I don’t know what make.

Femme Frugality asked: Okay, so this is totally random, but I heard this story on the news about how NASA is contracting 2 companies for space shuttles, potentially for civilian travel into space. Would you go? And why or why not?

No! I don’t want to be the test subject. Maybe after they’ve done it for a few years and everyone survived and didn’t get eaten by aliens :-)

Update #3

Kip asked: You mention in your about page about being a financial professor, knowing what you know now, is there anything you think you should have done differently in your finances upto this point?

Yes, I do work in the financial field. There are so many things I would do differently. I could write a book about all the mistakes I made. I think the two biggest changes I would make would be avoid student loans and start investing younger.

 

Thank you everyone who stopped by my blog during the fiesta! It’s been great getting to know you all better.

 

 

Here are some more details on the Frugal FinCon Fiesta:


Posted in Uncategorized
September 16th, 2014 | 4 Comments »

A few weeks ago I mentioned that we had changed Internet/Phone/TV providers to save about $35 per month. Mr. Tre was also getting the channel he’s been missing since we moved. Wahoo!

Okay, hold your excitement. This is what really happened…

The Problem

We were using Charter as our Internet/Phone/TV provider. When we hit our one year anniversary they sent us a lovely letter saying that our monthly bill was increasing by $37 per month and we would have fewer channels. But the fewer channels would be in HD. Wasn’t that generous of them?

The Bait

There are only a few companies that service our area. Mr. Tre found a DirecTV/Verizon bundle that would get us more channels than we had with Charter and cost $35 less per month. What could possibly go wrong? After several hours on the phone we had everything set up and scheduled our installation. Since there were two companies, there would be two installs. I work from home so we decided to keep Charter connected until Verizon had the Internet/phone working.

Installation day arrived. I lost service for a few hours, but the Verizon portion went much smoother than I expected. The installer was even nice enough to run some new wires and clean up the connections in my office.

Then the DirecTV installer showed up. He walked around the house for about two minutes and announced that there were too many trees. We could not possibly have satellite service. Mr. Tre took him outside and pointed out that all our neighbors have the same mature trees and most of them have DirecTV service. After several minutes of heated discussion, the installer said it wasn’t possible and left.

The Switch

Mr. Tre REALLY wanted that channel. He called DirectTV back, explained what happened and asked them to send someone else. They promised to call us back with a new installation time. After several hours someone called claiming to be the installers supervisor. He apologized and asked if we wanted someone else to come out. Yes, didn’t we already ask for that? He said someone would call back within 15 minutes to schedule a time. No one called.

The next day, still no call from DirecTV. We called Charter to cancel the phone/Internet and learned that our TV would increase by $35 dollars. Verizon also let us know that if we did not activate with DirecTV our pricing would increase. Our $35 savings was now a $40 increase per month. Mr. Tre called DirecTV again. They assured him that someone was coming, but they couldn’t give us a time.

The Warning Signs

The second DirecTV installer showed up 5 days after the original installation date.  Our first warning should have been when he demanded payment before doing the install. The original deal was no installation costs. He had everything working in 30 minutes, but the channel Mr. Tre wanted didn’t work. He told us that it could take up to 24 hours for all the channels to load.

The next day the channel still didn’t work. Mr. Tre called DirecTV and was told we did not order that channel. The first installer deleted our order. The new installer gave us a package he chose. The deal we had originally received was no longer available. To get Mr. Tre’s channel would cost us $40 more than we were originally quoted and they weren’t sure we qualified for the bundle pricing with Verizon.

Just Bad Customer Service

I called DirecTV to cancel. This is how the conversation went….

Me: I’d like to cancel my service.

DirecTV: I see you just activated yesterday. Why are you cancelling?

Me: Um… because you lied to us. We don’t have the channels or pricing we were promised. Please cancel the service and refund the installation charges.

DirecTV: Let me transfer you to a supervisor.

Repeat….

After one hour of being passed from person to person, they still had not cancelled the service and I was getting a little hoarse from telling them what I thought of their company. Mr. Tre finally took the phone away from me. He decided to keep the service for a little while because they promised his channel free for 30 days. What they didn’t tell him was that they would take away 10 other channels.

The End

It hasn’t ended yet because we are still with DirecTV and have a bill that is $71 per month higher than we were quoted. I think they are counting on the fact that I don’t have hours to spend on the phone trying to get them to cancel the service.

Have you ever had an issue like this? What did you do?

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