Updates Blog

The launch of 1Friend2Another attracted little attention, so I’m reprogramming it for a second launch soon, hopefully by Friday January 2. I need to reprogram the site to make it less about the site, and more about friends appreciating and helping each other. The site needs streamlining, it needs to start with one friend’s message to another in the opening screen, and it needs to be a simple statement of faith in humanity instead of a graphics-intensive site that looks like a mini-game.

I’ve decided to give away “The Book Of Time” to support charity. The success of the new site design will hinge on three simple questions:

1. If you could read a free book in 30 minutes and gain hundreds of hours of free time to live life, would you read it?
2. Are there others in your life that you care enough about to email them the good news about this book?
3. If you could support deserving charities by merely “passing the word” — would you?

It’s a race against time with the inauguration approaching on Jan. 20, but hopefully the race can still be won!

I decide to try the metro bus system to see whether it saves time and/or money. On the positive side:

-It only cost $1.50 for a round trip
-The bus was nearly empty, so there was plenty of room
-I enjoyed listening to music without having to drive
-You can call people on your cell phone
-From where I live, it’s only a 100-foot walk to the bus stop

On the other hand…

-I waited 5 minutes at the bus stops. Next time I think that can be shaved to 2-3 minutes.
-The bus zig-zagged through various stops, so it took twice as long to get there
-The ride was bumpy, especially through the melting ice
-Reading was iffy, writing very difficult with the bumpy ride

I can see giving up my car to use the bus. My mother and brother live less than 5 miles away, so if I need a ride (or even to borrow a car) I can probably swing it.

When you visit 1Friend2Another.org you can leave a comment for Barack Obama. We will include your comment with those of others in a giant bouquet of flowers, and deliver it to the White House on Inauguration Day. It will have:

• 50 flowers in the middle (the official flower of each state in America)
• 200+ flowers ringing it (one for each country on Earth)

Thousands Of Prizes!
You are not required to give us any of your contact information in order to participate in this contest. Here are the prizes that will be awarded:

1. A Prize For Everyone:  You will receive a prize package worth $25, including a sequel to The Book Of Time. That in itself should be worth $25 to most people, plus we’ll add at least a couple of other really nice downloadable prizes to be named later.
2. 250 Runner-Up “Mystery Prizes”:  We will mail this prize package, worth around $100, to 250 people who left comments that interested editors at the Consumer Freedom Alliance.  Hints:  You’ll receive something you’ll want to share with your family, something you’ll actually interact with, and it will help most people financially. It’s not a book, nor is it software that you install on your computer.
3. One Grand Prize:  Awarded to whoever made the best comment as judged by David O. Snow, author of The Book Of Time.  It’s actually a double prize!  First, you will be awarded $1,000 to be paid no later than March 1, 2009. Second, you will also get five runner-up prizes to give to whoever you like.

Full contest rules are posted at 1Friend2Another.org.

I’m happy to announce that our first press release was officially released on 12:01 AM (Pacific Standard Time) on Wednesday, December 24,2008. You can access it by visiting:

    http://www.prweb.com/releases/2008/12/prweb1787144.htm

I was pleased how PRWeb formatted it, with a very nice animated screenshot of our home page. I hope you will all share this with your friends so that everyone can be a part of this groundbreaking project. More importantly, we want everyone to have the opportunity to learn some incredibly valuable information. Think of it as our holiday gift to the world.

Regarding the new site at 1friend2another.org, I’m customizing the site for English speakers from other countries, for example in the Mount Rushmore scene I’ve added quotes from people in Australia and other parts of the British Commonwealth.

Meanwhile we’re buried in the strongest snowstorm in over ten years here in Seattle. But I love it, having been born and raised in Alaska.

I’m preparing a press release for the American press and will put it on this page tomorrow.

You may wonder what the chances are that 1friend2another.org will succeed in its ambitious aims. Well, there are basically three ways this site could go:

1. Some people forward it to their friends, but it doesn’t really catch on and it fizzles after a few hundred (or a few thousand) people have read it.

2. It grows exponentially as friends forward it: 1000 forwards become 2000 the next day, then 4000 the next, until in ten days one million people have seen it — and in the next week, tens of millions may even see it.

3. We send out emails to people and enthusiastically urge them to forward it for the sake of charity, and at first it grows exponentially because the email is being forwarded among caring and charitable people. But as it gets forwarded to more people who are a bit less charitable and less connected to the original enthusiastic email senders, the growth gradually slows down. It ends up reaching tens of thousands, maybe hundreds of thousands of people.

Six very worthy charities will soon benefit from our new site at 1Friend2Another.org. By launching this site, we hope to entertain and enlighten people worldwide, while generating many thousands of dollars for charities. Once it is officially launched on December 24, you can visit it and forward it to anyone else whose life you wish to brighten.

Everyone is encouraged to donate, but you can use the site for free either way. Charities will be collecting all donations directly from donors; visitors to our site are instructed not to send any money to our company.

What is our vision and mission? It is this:

a) To disseminate very high-quality consumer information in support of charities

b) With this information, teach people to live better. The more people live right, the less likely they will become a burden on charity. If you think about it, spreading good teachings is an excellent way of being charitable in and of itself!

c) Establish that the power of friendship, beauty and fun can inspire positive social change through friends communicating with one another.

d) As we establish contact between us and thousands of people, we believe this site will increase both your donor base and our customer base. While we expect to spend tens of thousands of dollars on this promotion, we expect that this expense will be made very worthwhile by establishing these contacts.

We look forward to seeing you soon after the official launch on December 24 at 1:00pm EDT.

How To Save Hundreds On Home Insurance
1. Home security upgrades.	Save up to 15-20%.  Get dead-bolt locks and a burglar alarm (preferably one that’s monitored 24/7).
2. Fire-fighting upgrades.	Save up to 10%.  Fire alarms and extinguishers are worthwhile. A sprinkler system is an excellent (but costly) upgrade.
3. Raise your deductible.	Save 15-25%.  Raising your deductible can save big money, especially if it’s currently lower than $200.
4. Drop unneeded coverage.	Save up to 20%.  Eliminate any “riders” or “floater” clauses that cover unlikely losses. Insurance should cover no more than the rebuilding cost — don’t include the value of the land.
5. Shop around.	Save up to 20%.  Home insurance prices from different companies can vary widely, so shop around for a lower rate at sites such as InsWeb.com, MostChoice.com and NetQuote.com.
6. Loyalty discounts.	Save up to 20%.  Most companies offer a longevity discount for people who stick with them. Often it’s a 5% discount for staying 3-5 years, and a 10% discount after six years.  Retirees often get an additional 10% discount.
7. Avoid risk.	Avoid anything that increases the risk perceived by your insurer (for example a lower credit score, or keeping a dangerous pit bull, or having an accident-prone swimming pool.)
8. Claims-free discount.	Save 10-15%.  If you avoid burglaries and don’t make an insurance claim for three to five years you may get this discount.
9. Block watches.	Save 5-10%.  If you organize a block watch, insurance rates and the crime rate will both go down in your neighborhood.
10. Live in a safe home.	Save up to 20%.  Newer homes have fewer problems.  In windstorm-prone areas, consider brick homes; in earthquake zones, wood frames stand up better. Avoid flood-prone areas.
Call your insurer and consult with them. Tell them about your home improvement plans, make sure you’re adequately covered, and be sure to ask what other discounts they offer.

If you’re a homeowner, fortunately there are some things you can do to reduce the high costs of homeowning:

• Deduct mortgage interest.  If you itemize deductions on Schedule A of your income tax return, you can deduct the interest portion of your mortgage payments.  Keep in mind that for the first few years the interest you’ll pay on your mortgage will probably be about 80% to 90% of your mortgage payments.  So if you pay $10,000 in mortgage payments yearly, you can deduct $8,000 to $9,000 of that amount.  Also deductible on Schedule A are state and local income taxes, property tax, charitable contributions, medical expenses above 7.5% of adjusted gross income (AGI), and miscellaneous expenses above 2% AGI.

  Your other choice is to take the “standard deduction” which in 2007 is $5,350 for single persons and $10,700 for married couples.  If you don’t have many itemizable deductions, you may not get much more benefit from a mortgage interest deduction compared to the standard deduction.

  You can use the Mortgage Interest Deduction Calculator at right to figure out how much money you’ll save deducting mortgage interest on Schedule A of your federal income tax return.

• Get a good refinancing deal.  That’s a bit complicated, so we’ll cover that in a future post.
• Reduce property insurance costs.  It’s often possible to cut the cost of your homeowner’s or renter’s insurance by 25% or more and save hundreds of dollars every year (scroll down to see a list of ways to save).

If you’re thinking of buying a home, here are some more money-saving ideas:

• Buy small.  Only buy what you can comfortably afford.  Some people think they’ll make a lot of money by buying a bigger home and selling it later, but this is speculative and could backfire on you.

• Buy a fixer-upper.  Some homes don’t cost much because they’re not well maintained.  If you’re handy and willing to work, that’s an opportunity to buy at less than market value.
• Get the best mortgage deal possible.  Again, that’s a discussion all it’s own so we’ll cover that in a future post.
  

Buying a home you can barely afford can be a big mistake:  nearly 1.3 million Americans had their homes foreclosed in 2006, at an average loss of $75,000.  On the other hand, if you rent long-term you’re missing the opportunity to build a nest egg out of “home equity” — which is defined as the worth of your home minus what you still owe on your home loan.  Here are the major homeowning costs:

• Mortgage payments include principal and interest.  In the early going, interest is often over 90% of your monthly mortgage payment.  When borrowers make a downpayment of less than 20% of the home’s value, they must also pay for private mortgage insurance (you can stop it when your home equity rises above 20%.)  Its yearly cost is usually around 0.5% of the property’s value.  Many Americans are unnecessarily paying for PMI (they may not even remember having ever got it!)  Here’s two explanatory pages: PMI Tips, How To Remove PMI.
• Mortgage closing costs, $1000 - $3000.  These include:
  1. Origination fee.  A lender may charge 1% of the loan principal as their fee for loaning you the money.
  2. Credit Report.  Usually $50-$100
  3. Home Value Appraisal.  Usually $200-400
  4. Recording, and Notary Fees.  Usually $50-$100
  5. Lender’s Title Insurance (ATA).  Usually $200-$400
  6. Escrow Fee.  Usually $200-$800
  7. Document Preparation Fee.  Usually $50-$100
  8. Tax Service.  Usually $50-$100
  9. Property Inspection Fee(s) (Termite, Roof, etc.).  Usually $150-$250
  10. Homeowners Assoc. Transfer Fees.  Usually $0-$100
  11. Attorney’s Fees.  Usually $0-$500
  12. Miscellaneous Fees (courier, underwriting, wire transfer, etc.).  Usually $75-$150

  “No closing cost loans” are often advertised, but this doesn’t mean that there are no charges.  It means the company are eating these costs and raising the interest rate they charge to pay for them.

  “Impounds” are charged at closing:  these are simply payments that you make in advance for homeowner’s insurance premiums and real estate taxes. These fees are relayed to the local tax authority and your insurer when you get your home.

• Homeowners insurance, 0.5% or more yearly.  Yearly homeowners insurance costs usually amount to about 0.5% of the value of the property.  But this cost can be much higher in disaster-prone areas.  Unlike auto insurance you are not required by law to get homeowners insurance, but while you have a mortgage your lender will probably require you to carry it.
• Property taxes, 0.25 to 0.4% yearly.  This can vary greatly from one city to another, even within the same state.  In some places you could pay $8,000 yearly on a $255,000 home, while in other places it’s only about $1,000 for the same home.  Here’s a list of property taxes by state, but remember that those are average tax rates and some locations within the same state could have double or half the average rate.  To find the real rate you would need to call a knowledgeable person in the area (e.g. a realtor.)
• Transfer tax, 1% - 5%.  Sometimes called the “excise tax “, this
  is charged by the city, county, and/or state in most areas.  It’s usually between 1% and 2%, but can be as high as 5% in some places.  It’s paid by the seller, but again it has to be paid again when the home is sold.

• A buyer’s agent.  They usually don’t charge you anything, but they’ll receive up to a 3% commision from the seller.  Sellers may be more likely to cut you a good deal if they don’t have to pay that fee.
• A seller’s agent, 3% - 7%.  As we mentioned, buyers aren’t directly
  charged a comission.  When you or your heirs sell your home, a real estate agent will charge anywhere from 3% to 7% unless you sell it yourself.  It is still a cost of homeowning.  Sellers must also pay attorney, closing agent and other professional fees costing several hundred dollars.

• A home inspection, $300.  You should always pay for a home inspection because they almost always find defects that can help you bargain for a lower price.  Usually it costs around $300.  Be aware that a faulty home inspection that does not find bad structural damage can cost you tens of thousands of dollars (some have even lost hundreds of thousands.)  A good way to make sure the home inspector is qualified is to ask for proof that they have liability insurance, and make sure any agreement you sign does not absolve the home inspector of liability for his mistakes.
• Moving-In Costs.  These expenses can apply to both buyers and renters.  Costs include the moving van, deposits on electric and other services, and perhaps a few purchases of furniture and appliances.
• Maintenance Costs, 1% - 3% annually.  On average homeowners spend between one and three percent of its value yearly on maintenance and repairs, increasing as the house ages.  Sometimes people think they can skimp on these costs, but it may lead to depreciation of the home’s value, and you never know when the government will “assess” your home for repairs.  Assessments can cost anywhere from a few thousand dollars to 20% of the value of your home.  Renters do not have to pay for most repairs and maintenance.
• Utilities, $50 - $200 per month.  These include electricity, water and heat.
• Homeowners Association dues.  Many if not most neighborhoods charge dues that can range from $20 a month to hundreds of dollars, depending on how much is provided (for example, trash pickup and lawn care will drive up the cost).  Dues are usually between $100 and $250 in middle-class neighborhoods and condominiums.
• Capital gains tax.  Most people can avoid this completely because when you sell your residence you can make up to $250,000 in profit if you’re a single owner (double that if you’re married) and escape paying this tax.  However, you can only get this exemption once every two years.  The regular capital gains tax for most taxpayers is 15 percent.

ChristmasFreebies.com has a
collection of holiday “gifts, samples, digital holiday cards, freebies for children, and free Christmas software. We also offer such goodies as free services that’ll make sure a child’s letter gets to Santa, as well as free Christmas clipart, games and contests.”