Author Archives: Daniel Packer

Should You Live with Your Parents to Save Money?

Moving out of your parents’ home used to be an established right of passage – a way to escape parental authority and start making your own way in life. The current societal trend is, however, that young adults are making the decision to delay leaving the nest.

A study in 2012 by Pew Social Trends, found that nearly 24% of adults in the 25-34 age group lived with their parents. And the reasons cited, surprisingly enough, are not only financial – the so-called Millennials tend to have good relationships with their parents allowing for collaborative efforts when it comes to day to day living. Further reasons cited include delaying marriage and studying for longer.

Let’s explore whether or not it is a good idea to stay at home in order to save money.

The Advantages of Staying with Your Parents

  • Savings in Rent – While your parents may still require that you pay some form of rent, this is not likely to be as much as you would have to pay on the rental market. There would also be no need to put down a security deposit, which allows you to sock any income away for when you do finally leave the house.
  • Chores are Shared – You’ll probably need to still help out around the house but you won’t be expected to do everything like you would if you lived on your own. The key to making this work is to do your bit – maybe your mom can iron for you and you can cook dinner and take out the trash. It’s important that neither party begins to feel resentful.
  • Company – If you have a good relationship with your parents, you will have company when you get home from school/ work.

The Disadvantages of Staying with Your Parents

  • You are their child – Parents will try hard to treat you as a young adult but there is bound to be some times when both parties fall back into the traditional parent/ child roles.
  • You are not truly independent – You may not have a curfew anymore but you are not entirely independent either – your parents are going to be aware of all your comings and goings and are bound to want to be informed of what your plans are.
  • There is a chance of resentment developing – No matter how well you get on with one another, there is always a chance that one or both parties may begin to feel resentful. You might feel that they are interfering in your life too much and they may feel that you are not respecting them. It can be a fine line to tread.

In the end though, there is no set answer to whether or not you should move in with your parents in order to save money. A lot is going to depend on what your relationship with your parents is like and what expectations you have of each other.

Before making the final decision, it is a good idea to talk to your parents about what expectations they have in terms of how much you’ll help out, what rules will apply and also to let them know what your expectations are in turn.

I did not live at home after graduating college, but I did live at my future in-laws house for nearly 9 months while engaged to their daughter. We were able to save and contribute more to the wedding as a result, and it was a good bonding experience, too. I never would have expected to enjoy it or think it was worth it, but it really turned out to be not only bearable, but enjoyable, too.

At the end of the day, if you are able to set proper boundaries up from the word go, this can be a mutually beneficial arrangement for both you and your parents.

Born to Sell Review

Whether you are an experienced call trader or simply starting out, covered call investing can be a safe and lucrative way to make money off your shares. If you are serious about making money this way though, you will need some help in the form of portfolio management – not only can it be time consuming without assistance, but you might also miss out on more lucrative deals.

Think of it this way – if you have one house, managing it is not such a problem. Now imagine you are managing an apartment complex with 30 or 40 apartments. You would need some form of assistance, wouldn’t you?

In the same way, only having one block of shares to manage is relatively simple. It becomes more complicated when you start to write and sell call options. To get a truly diverse portfolio, you need to have more blocks of shares. With every block of shares that you add, and all the possible call options that could be issued against these, portfolio management tools become a necessity.

That is where Born to Sell comes in. For a simple monthly subscription, you are given access to a powerful suite of tools to help save you time and money.

You will receive full support in the form of written and video training to help you make the best of tools and so that you fully understand what call trading entails.

The site itself is intuitive to use and, with the free training offered, even a newbie could start to turn a profit when it comes to call option writing.

Here is a breakdown of a few of the top tools:

Search Tools

If you are not sure how to proceed, the Top 10 tool with show you the most popular calls over the entire network, in an anonymous aggregated format. You get to see what options are most popular in terms of stocks and expiration dates and can formulate your own strategy accordingly.

Born to Sell Search

Alternatively, you can use the Income Goal tool to get the system to filter through the results for one that will match your specific needs in terms of income goals.

There are several other search options available as well – the idea being to ensure that you can maximize the amount of time to spend on making money, rather than wasting too much time with research – it is like having your own research assistant on call.

Portfolio Management Tools

Once you have a portfolio set up, you need to manage it and this is where the powerful portfolio management tools come into play. Born to Sell is unmatched anywhere in the industry for the range of quality tools available.

You can get an overview of all your positions on the Summary screen. For a more in-depth look, go through to your Dashboard.

The personal calendar highlights the dates that your shares are paying out release or dividend earnings.

Of particular interest to the serious investor is the Cover Me tool – this will allow you to play out different scenarios as regarding the options you want to sell so that you can select the scenario that will be most profitable in terms of your goals.

The Roll Me tool is unlike anything else available on the market. It allows you to see what would happen if you were to repurchase any option sold and resell it with a different expiration date. This tool allows an in-depth look at 15 different options and how a change in date would affect return, profitability, etc.

The Diversify Me tool allows you to see whether or not you have too much invested in one particular industry and what the S&P 500 norms are. This report is broken down by industry.

Born to Sell Diversify

You also have access to your complete history at the click of a button.

Further Support

As mentioned before there are extensive tutorials on the site explaining call option trading. The support does not stop there though. You can opt in for email notifications as well – options such as Dividend Alert or Watchlist Alert help you keep a finger on the pulse of your investments and also positions that may interest you. You can also subscribe to the company newsletter in order to receive the latest industry tips and tricks.

Why Renting Could be the Best Thing for You

There is a saying out there, “Why rent and pay off someone else’s mortgage when you could be paying of you own?” Seems like pretty sound advice, doesn’t it? Except that things aren’t always the way they seem. What a lot of people fail to consider is that there are vast differences between renting a property and actually buying it.

A Cautionary Tale

An acquaintance of mine, let’s call him Ted (identity disguised to protect the dummy), used that very saying about owning a property and paying off your own mortgage on me. I advised Ted not to do it as the mortgage installment was bound to be higher. He had been living in a place and paying rent of about $1000 per month.

He ignored me and bought the house. The mortgage was $2000 per month and he was now responsible for repairs on the house and taxes, etc. Within 6 months, he admitted that he’d made a big mistake – he simply could not afford the place and he sold it a short while later.

Fortunately for him, he did not lose much as he got a bit lucky with the market timing. It certainly cost him a lot of stress, but when it was all said and done, it could have turned out a lot worse if the market had moved the other way during those 6 months.

This may seem like an extreme example but it does happen to a lot of people – especially first time buyers. You simply don’t know how much extra expense being the owner of a house can bring.

When Renting is the Better Option

Even if you can easily afford the mortgage and extra costs, here are some other reasons why you might want to rent instead of buy:

Your Life Could Change

Have you settled down in the town you are living in and are happy there or do you yearn for a bit more excitement in your life? Have you found the career path that suits you to a tee? If not, you probably should not buy a house – what happens if you have to leave?

This happened to another acquaintance – let’s call him Tim. He bought a house and got married 6 months later. His company then moved Tim to Australia and they bought a new house. They figured that the old house would sell fairly quickly.

That was a few years ago and they are now battling to pay both mortgages. They are stuck – both houses are mortgaged to the maximum and their new home needs some repairs.

I know that this is an extreme example but it just goes to show what can really happen. As a tenant, you have a lot more flexibility when it comes to moving.

You Can Just Barely Afford it

Here I also blame the estate agents – they always seem to show you dream properties that are a little higher priced than what you can truly afford. If the installment of the house that you are considering buying is at the very top end of what you can afford, carry on renting.

Will you be able to enjoy your new home when the payment is a stretch? What if some urgent repairs are needed? How will you handle the property taxes?

In this case, you are better off continuing to rent.

You Can Rent in a Better Area

There are areas that are very desirable to live in and, as a result, homes there sell at a premium. You could still possibly afford to rent a home there and enjoy the benefits of the good area without the headache of having to come up with a huge mortgage payment.

You Need to Know What you Are Doing

Buying a house is no small matter and requires some research into the area that you are considering. While houses usually appreciate in value, if you choose the wrong house in the wrong area, you could actually lose money when it comes to selling, or might end up, like Tim, with a house that will not sell at all.

There are advantages and disadvantages to both renting and owning a home. It can’t be reduced to a simple little saying and all the pros and cons should be given due consideration.