Reader Stories

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Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.

Mark Ferguson has been a Realtor since 2001 after graduating from the University of Colorado with a business finance degree. He runs a real estate team of 10 that sells over 200 homes a year, fix and flips 10 to 15 homes a year and owns 11 rental properties. Mark also runs www.investfourmore.com, a blog that discusses Mark’s fix and flips, rental properties, becoming a real estate agent and everything real estate related.

Many television shows portray fix and flipping as a very profitable business that can easily be done in your spare time. Sure there are usually a few contractor problems, but in the end the house sells for a lot of money and the owners make a killing. In reality, you can make money fix and flipping homes, but it takes a lot of hard work and a lot of flipping to make a lot of money. It is also very easy to lose a lot of money if you do not account for all the costs or overestimate the value of your flip.

I have been a Realtor since 2001, and I have fix and flipped close to 100 homes over the last 10 years. I have 10 fix and flips going right now, and I can tell you it is not easy managing one fix and flip let alone 10! It takes a lot of money to fund fix and flips, more time than you think to sell a flip, a lot of experience to deal with repairs and contractors, and expenses are almost always more than you figure.

If you buy houses cheap enough with enough of a margin for error, you can make good money fix and flipping homes — but don’t expect to be a millionaire after a year or two in the business.

Are the Television Shows Accurate in Their Portrayal of the Flipping Business?

Most fix and flip television shows love to show the before and after pictures of a flip with the initial purchase price and the selling price at the end. There are a couple of shows that portray the expenses accurately, but most leave out many of the costs that flippers encounter. In the fix and flip business, many investors use the 70 percent rule to determine if they can make a good profit when they flip a home.

The 70 percent rule states the purchase price should be 70 percent of the after-repaired-value (ARV) minus the cost of any repairs. For example, if a house will be worth $150,000 after it is repaired and it needs $30,000 in repairs, the 70 percent rule states an investor should pay $75,000 for that house. Buying a house that will be worth $150,000 for $75,000 seems like a home run, but it is really just an average deal because there are so many costs associated with flipping.

What Costs are Involved in Fix and Flipping Homes?

The obvious costs involved in flipping are the purchase price of a home and the repair costs. In our example, there appears to be $45,000 in profit once you include the selling price and the repairs but there are many more expenses that many beginners do not consider.

  • Financing costs: Most people do not have $75,000 plus the costs of repairs and carrying costs to buy a flip. It is more expensive to finance a flip because banks make their money off interest paid on loans. The shorter time you hold a loan, the less money a bank will make. Most large banks will not finance flips, but some local lenders will. Hard-money lenders will fund flips, but they are very expensive, charging 12 to 16 percent interest rates plus 2 to 4 percent of the loan amount for origination fees. A hard-money lender is a not a bank but a company that takes money from investors at a given interest rate. The hard-money lender then lends that money to fix and flippers at a much higher interest rate.
  • Carrying costs: When you own a house, you have to pay for the lawn care, heating, insurance, taxes, HOA and more while you own the home.
  • Purchasing costs: Besides the loan origination costs, there are some other costs to consider when buying a flip. A home inspection will run $300 to $800. Some lenders will require an appraisal, which is $400 to $600. There will be a closing fee, recording fees, tax certificates and much more.
  • Selling costs: When you sell your house, you will most likely have to pay a real estate agent to sell the flip and possibly cover closing costs for a buyer. The real estate commission and closing costs can add up to be 10 percent of the sale price.
  • Miscellaneous costs: Depending on where and how you buy your property, it may have a tenant or the previous owner may still be living in it. You could have eviction costs or costs to pay the occupants to leave.

Here is an example of what the total costs would look like on a typical fix and flip I buy and sell. I have a great lender who charges me 5.25 percent interest rate and 1.5 percent origination, but they only lend on 75 percent of the purchase price. My loan costs are much lower than most flippers’.

Purchase price: $75,000

Loan amount: $56,250

Costs:

Loan costs: $2,500

Carrying costs: $1,600

  1. a. Insurance: $400
  2. b. Lawn maintenance: $300
  3. c. Taxes : $400
  4. d. Utilities: $500

Buying costs: $1,000 (I usually do not do an inspection or have an appraisal)

Repairs: $30,000

Selling costs: $7,000 (Since I am a Realtor, I only pay the buyer’s agent commission. I list the house myself and do not have to pay a listing agent.)

Miscellaneous: $5,000

Total costs: $47,100

If I sold the house for $150,000, my profit would be $27,900. That is a decent profit, but I want to make at least $25,000 on each flip because of the risk involved and the money I put into them. On this flip, I would need at least $50,000 of my own cash for the down payment, carrying costs and repairs. Beginning flippers could easily spend three times as much for financing costs and another $4,500 to pay a listing agent. That cuts the profit to under $20,000 for a house that sells for twice as much as it was purchased for. The next time you watch a fix and flip show, see how many of these costs they actually tell you about!

Will You Make More Money Fix and Flipping More Expensive Homes?

It is true that the profit potential goes up when you flip more expensive homes. However, there are many more risks involved when flipping expensive houses.

  • The repairs will be much more expensive because buyers will demand higher quality.
  • It takes longer to sell more expensive houses and your carrying costs will be higher.
  • The carrying costs will be higher due to HOAs, more maintenance needed, higher taxes, etc.
  • You will need more cash because down payments, carrying costs and repairs will be higher.
  • All your money is in one house instead of multiple homes, increasing the risk if something goes wrong.

The biggest problem with flipping more expensive homes is that the difference between the buy price and sell price is massive. Using the 70 percent rule, a house with a $500,000 ARV would have to be bought for $300,000, if it needed $50,000 in work ($500,000*.7-$50,000=$300,000). It is very hard to find a deal that has such a large difference between the ARV and the purchase price because an owner-occupant buyer would be willing to pay much more for the house. The owner-occupant can pay $400,000, put $50,000 into the house and still have a great deal. In the more expensive market, it is much more likely owner-occupants will have the cash to put into homes.

How Long Does it Take to Fix and Flip a House?

From start to finish, my goal is to have a flip for four months from the time I buy it to the time I sell it. I almost never hit that number because there are so many unknowns. The biggest delay I have is finding good contractors, especially when I have 10 properties at once. It takes me a couple of weeks to get a contractor started on the work, about a month for the work to be done, about three weeks for the home to be on the market before a contract is accepted and yet another month for the escrow/closing process — if everything goes perfectly.

Unfortunately, it often takes longer for the contractor to make repairs. We inevitably see a few things the contractor missed and they have to go back to the home to take care of those items. Then we have to line up cleaners and get the home listed. Sometimes it takes three weeks to get a good offer; sometimes it’s just one week, but it could just as easily be two months. In addition, the escrow process can vary from one month to sometimes two months. Now that I have so many houses and not enough contractors, I am looking at almost nine-month turn times on some of my properties.

Is All the Hassle Worth it When Fix and Flipping Homes?

After looking at all the costs and everything that has to be accounted for, it may seem a bit intimidating to flip a home. Especially when you consider we have not even talked about how to find a fix and flip that can be bought cheap enough to make money. Just like anything in life, it takes time to learn what you are doing and feel comfortable. I still am learning new techniques to find properties and finding better ways to fix and flip homes.

After you learn the business, it can be a lot of fun. I still get excited whenever I get a new deal under contract, almost as excited as when I sell one for a nice profit. Over the last two years, I have averaged about a $35,000 profit on each of my fix and flips. I completed 10 flips last year and should complete (buy, fix, sell) over 10 this year. On most flips, I make around $30,000 in profit; but once in a while, I will make more, like this property that I made over $50,000. In the last 13 years of fix and flipping homes, I have made over $100,000 twice on a single flip. My success has not come from making a huge profit on one or two flips a year, but on consistently making modest profits on multiple homes. There is much less risk flipping many lower priced homes than flipping one expensive home.

The best part about this business is that I do not flip full time. I run a real estate team of 10 and my primary job is running that team and selling houses. Once you set yourself up correctly with the right contractors, the right financing, enough of your own money and experience, the business does most of the work itself. It is not easy to get to that point and it takes a lot of time and reinvesting money back into the business.

How Do You Find a Great Deal to Fix and Flip?

Finding a great deal is the key to making money in the fix and flip business. I used to buy 90 percent of my fix and flips at the public trustee foreclosure sale. These houses were sold in as-is condition for cash, and many times the inside of the house could not be viewed or homes were occupied. When I bought a home at the trustee sale, I had no inspection period and no way to back out once the property was purchased. In the last two years, the competition at the trustee sale has increased and I have not purchased any homes from that sale in over a year. In fact, I do not even go to the sale anymore because people are paying close to the amount you could buy a house for on the MLS. When I buy on the MLS, I get to have an inspection done, I can use a loan to buy the property, and I don’t have to deal with any occupants.

Almost all of my deals are bought on the MLS now. There are a few tricks to getting a great deal, but it is not easy with rising prices and competition.

  • Act fast: I make offers within hours of homes being listed.
  • Become an agent: One of the reasons I can act so fast is that I write the offer, set up a showing and I do not have to wait on an agent.
  • Look for properties that need work: The more problems a property has, the more potential profit there is. Make sure you know how to fix the problems and how much it will cost!
  • Look for properties that have been on the market over 90 days. The sellers are more likely to accept low offers on these homes. If they are grossly overpriced, I do not even bother.
  • Make offers on homes that come back on the market quickly. I can set up MLS alerts to tell me when a house in a certain price point comes on the market or comes back on the market after a contract falls apart. Many times the great deals that need work have contracts that fall apart because buyers don’t realize how much work is needed until their inspection.

There are other ways to get great deals such as direct marketing to sellers who do not have their properties for sale or finding wholesalers who sell cheap properties to investors.

What Should You Avoid if You Decide to Start Flipping Homes?

If you have decided you want to give flipping a try, here are some tips to keep you from losing too much money on your first try.

  • Only do the repairs yourself if you know what you are doing and have time to complete them. Many flippers try to save money by doing the work themselves. They don’t realize how long it takes to make repairs, especially in their spare time. It ends up taking months to fix the property and the extra time will eats up the money you thought you saved by doing the work yourself. To make the situation even worse, the work won’t be as good as if a professional did it.
  • Do not overestimate the value of a home or rely on values to increase to make money. Many markets have increasing prices, but that doesn’t mean they will keep increasing. A lot of flippers went bankrupt during the housing crisis because they assumed the market would keep going up. When prices stopped increasing and then decreased, they lost everything. I kept flipping right on through the housing crisis because I based values on the current market and left myself room for adjustment.
  • Do not overprice a home when you list it. To make money flipping, you have to sell quickly and keep your money moving from property to property. If you have a house sitting on the market that won’t sell, it is most likely overpriced. I have found that the sweet spot for a house to be on the market is three weeks and then I usually get an offer. If I don’t get an acceptable offer after 30 days, I lower the price 5 to 10 percent, depending on the activity.
  • Don’t try to sell a house yourself unless you are an agent. If you sell a house for sale by owner, you lose market exposure by not being in MLS. Ninety percent of buyers use a real estate agent to represent them and those agents look on MLS to find properties for their buyers. If you use a limited service company that puts the home on MLS, you still have to pay for the buyer’s agent. You are saving very little money and the buyer has representation while you do not. Who will get the better deal?
  • Always assume your repairs will be more expensive than you think and the flip will take longer than you think. Even if you get a bid for all the work before hand, things always pop up that you didn’t see or you couldn’t have known about.

My Worst Flipping Experience

There is a lot of information in this article and I didn’t even come close to covering every topic involving flipping houses. I hope it gives you an overview of what it is like and what it takes to flip houses. It is not about hitting a homerun on every flip, but hitting a lot of singles over and over again. I have lost money on flips before, sometimes because of things I have no control over. Since I had many flips going at once, losing money on one flip did not destroy my business — but this was the worst experience.

A couple of years ago, I bought a flip at the trustee sale. I saw the interior of the home through the windows but never got inside the house before I bought it. It was a good deal on a newer house, with little work needed and I thought I would make some easy money. After I bought the house and got the locks changed, we found a brand new BMW in the garage. I knew something very odd was going on, so we tracked down the previous owners in California (I am in Northern Colorado). They claimed the bank had foreclosed wrongly and they were going to get the house for free. They ended up filing a lawsuit against the bank a week later and we had a house we could not sell because it was involved in litigation.

The previous owners had been convinced they would get the house for free by a legal aid. We offered them $5,000 to drop the case and they would not even think of it, because they knew they would get the house for free. Long story short, the lawsuit was frivolous and thrown out by a judge as soon as he saw the case. The problem was that it took the court almost a year to look at the case even after we had hired lawyers and paid them almost $10,000 to speed up the process. After carrying costs and lawyers fees, I lost about $15,000 on that house. There was no way to know that would happen, but sometimes that’s how it works when buying houses at the foreclosure sale. That is why I prefer to have multiple low-value houses at the same time, instead of one expensive house. I was still making money and turning other properties while that house was tied up. If all my money was tied up in one house that I could not sell for a year, I could have been in serious trouble.

Conclusion

I have been in the fix and flipping business for a long time and it has been very good to me. It is not easy to get started, to find great deals, find great contractors or to get all the money needed to flip. It is not impossible either, but it does take a lot of planning and education to get started. If you want to ask any questions in the comments, I’ll try to respond as quickly as possible.

Source: getrichslowly.org

Apache is functioning normally

This guest post from Sydney is part of the “reader stories” feature at Get Rich Slowly. Sydney blogs about personal finance, entrepreneurship, self improvement, travel and lots of other fun stuff on Untemplater.com. Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.

It’s hard to believe it’s been about 20 years since my parents first separated, and it’s actually a blessing it happened when it did. No parent ever wants to put his or her child through the nastiness, heartache and sadness that comes with divorce, but having lived through my parents’ split, I can tell you that it actually can be the best option.

When I was a kid, I didn’t understand why my parents couldn’t get along. Neither one of them was mean or evil; they didn’t cheat on each other. They had jobs, loved me, supported my interests and activities, and they didn’t seem that different from my friends’ parents. Well, except for the arguing. It got really nasty toward the end of their marriage. There is absolutely nothing positive or healthy for a child of any age who has to live in a house with two yelling parents.

Money and debt drove my parents apart

I tried to avoid them when they were angry at each other, but it was hard not to listen to them even from down the hall with my door closed. What was the No. 1 thing they would always fight about? Money. Their finances were terrible. It wasn’t until I became an adult that I learned just how bad they were with money. Even though both my parents worked full time, they had low-paying jobs and a staggering amount of debt.

I’m convinced that my parents’ radically different views on money were main reasons they were incompatible as a couple. My mom loved to spend money that she didn’t have. She probably had about 20 different credit cards. My dad was pretty much the complete opposite. He was extremely frugal and did everything he could to save money by fixing things around the house on his own. He always found ways to reuse things, hated shopping, and could stretch a dollar in so many different ways. Every time he tried to talk to her about bills and budgeting, she’d try to brush off the ugly stuff and then they’d both end up blowing up.

Here are 10 things I want to share with you that my parents inadvertently taught me about love, work and money.

1. Don’t rush into marriage. Don’t tell them I told you, but my parents had a shotgun wedding and they started things out rushed and frazzled. They were lucky to be in love at the time, but they had no savings, and didn’t really know what they were getting themselves into. I didn’t want the same thing to happen to me, so I took my time finding and getting to know my soul mate. We openly talked about our relationship, goals and desires before deciding to settle down, and things have been incredible!

2. Talk about money while you’re dating. Being on the same page with your partner about money and financial goals is so important. I’m not saying you need to talk budgeting and financial goals in the first few months of dating someone, but if you want to take things to the next level, you owe it to yourselves to talk about money way before tying the knot. If you have drastically different thoughts on budgeting and saving, be forewarned this will bring a lot of stress and tension over time, and things could get very, very ugly.

3. Go to college and don’t expect your parents to pay 100 percent. My parents didn’t graduate from college, and this put a limit on their career paths and eligibility for promotions and raises. They were incredibly supportive of me going to college, and I was lucky to have paid for half of my tuition through financial aid and grants. Having to foot the other half of the bill myself taught me to be disciplined and work hard for good grades and internships. Paying for some or all of your schooling yourself is incredibly motivating and makes you really appreciate your education and the opportunities it presents.

4. Become financially independent. The fact that my parents didn’t have a lot of money was a big reason why I studied and worked so hard. I’m saving as much as I can and fighting hard to get paid what I’m worth. Being financially independent is an incredible feeling and gives you so many freedoms. I love the quote from Mary Schmich’s essay “Wear Sunscreen”: “Don’t expect anyone else to support you. Maybe you have a trust fund. Maybe you’ll have a wealthy spouse. But you never know when either one might run out.”

5. Avoid credit card debt. Credit card debt is bad. Just don’t do it. If you can’t afford something, just leave it in the store. I wish my mom learned this when she was young. Credit card debt has put both of my parents through hell. I shudder to think about how much money they threw away over the years in interest, fees and penalties.

6. Update your budget at least twice a year. My parents never made a budget when they were married. I, on the other hand, am crazy about budgets. I love tracking my savings and looking at my short- and long-term financial goals. The markets are always changing, so I also recommend diversifying your income streams and monitoring all of your investments regularly.

7. Don’t waste money on junk. I couldn’t even count how many car loads of clothes, books, household goods and junk I’ve donated to Goodwill over the years. A lot of it was from things my mom bought for me over the years, as well as stuff I accumulated in my 20s that I really didn’t need. I’ve adopted a moderate minimalist lifestyle now, and I’m happy not shopping. Instead, I take care of my things so they last. I have absolutely no interest in designer jeans, handbags or shoes. The money I do spend is on traveling, activities, helping my family and saving for an early retirement.

8. Have difficult conversations. My parents had a lot of problems communicating with each other and it brought so much stress and unhappiness into their marriage. I’ve learned that relationships build on trust and deep conversations. Relationships can also grow stronger through having difficult conversations and facing the awkward, scary, uncomfortable and unpleasant things head on.

9. Don’t quit your job without a plan. There were several times that my dad quit his job on the spot without anything else lined up; that really put our family between a rock and a hard place. I learned never to quit a job without a plan in place and another job waiting. It’s easy to take our jobs and benefits for granted until we lose them, and then we desperately need income and coverage. My advice is to calculate your cost of living and make sure you have at least 12 months’ worth in savings before making any radical career or life changes.

10. Think positively and help others. Keep a positive attitude whenever you can. You’ll be surprised how much better your life will become! We don’t need a lot to be happy. Look around you and be thankful for what you do have. I’m very grateful that my parents taught me to look on the bright side of things and help others. They weren’t always happy or trouble-free themselves, but they always took care of me and reminded me that even when things are bad, there are always other people out there who need help much more than we do.

Sometimes I wonder what life would have been like if my parents didn’t have all those money problems and stayed happily together. I know one thing, the holidays and visits would have been so much easier without having to shuttle back and forth! But I think their struggles led me to become the motivated, patient and independent person I am today. It’s what we learn from our experiences that make us better!

Source: getrichslowly.org

Apache is functioning normally

This reader story come from SB, a regular reader and commenter on GRS. SB writes about personal finance and personal development topics at One Cent at a Time.

Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income. 

This is my second guest post at this blog. I am grateful to J.D. and his team’s humble gesture in allowing me to do it. I hope to provide the same value regular writers of this blog provide to you.

My grandmother was nearly illiterate, born and reared in rural India during the British occupation of the country. At the age of 14, she was abducted by the British army (later released), which ultimately caused her to marry early at the age of 16. She couldn’t complete school beyond basic education. Still, she became a very wise woman and mastered many skills.

My aunt happened to write down some of my grandmother’s home-remedy techniques from her narration. Recently, my cousin forwarded me a soft copy of that compilation. I’ll mention a few common symptoms and their natural cures, all at a fraction of the cost of medicine. But before that, let me tell you why I find home-based cures so beneficial.

The Benefits of Home Remedies

  • Drugs contain unnatural substances and chemicals, which are foreign elements to our body.  Natural remedies, on the other hand, are not synthetic molecules like drugs; they are made of living organisms which we eat anyway.
  • Some drugs act as a manipulator and force the brain to think differently — an example is an anti-depressant. The problem with this is, the moment you stop taking the drug, the symptoms often recur.
  • Natural remedies have fewer side effects compared to prescription drugs, as drugs tend to alter the chemical and hormonal balance of our body.
  • Natural remedies are available at a fraction of the cost of prescription drugs. Your grocery bill will cover them.

The Benefits of Prescription Drugs

It is important to remember that most drugs are developed by studying the natural cures and identifying ingredients which actually affect the symptoms. Still, prescription drugs are more useful under most circumstances. They work faster. We can’t afford to be bedridden for days and hope for natural cures to work someday. Life is tough and we must get well sooner.

We don’t have time to be sick. Prescription drugs provide the quickest recovery. They start fighting the bacteria and antibodies as soon as we take them. You may argue that we take chemically altered substances every day, be it the milk or the apple, or even the chicken. They have pesticides, growth hormones and God knows what.

An Introduction to Home Remedies

My grandmother was raised in a 100 percent organic environment. With near zero pollution, she ate healthy, farm-harvested food. Since childhood, I took medicines almost for any illness; rarely was I given a natural cure, except honey and basil leaves for a cold. Our bodies are used to chemicals anyway; therefore, natural remedies may not work the way they worked for our grandparents. Still, there is no harm in detoxifying our bodies to the extent we can, over time. My grandmother’s advice may help to  accomplish that goal.

Here are some excerpts from the treasure I was handed recently.

Acidity: Acidity is caused by excess acid secretion from the gastric gland, the acid which is used for digestion.

  • Chew a piece of clove, and take some time to swallow. It provides instant relief.
  • Another immediate relief is to eat a small cup of yogurt.
  • For more sustainable relief, drink warm water every day early in the morning.
  • Drink coconut water regularly.
  • Mix a few drops of honey in water to drink.
  • If you know what a jaggery is, suck a small cube of it after lunch/dinner.
  • A glass of water with a teaspoon of soda can also provide immediate cure.
  • A couple of pieces of dates can also give you instant relief.

Backache: If you happen to work in a chair, you may have this symptom already. As a software professional, I have had backaches for the last few years. The natural cure is garlic. Eat a couple of cloves of garlic every day.

  • Prepare an ointment by frying a few cloves of garlic in olive oil, strain and let it cool. Apply to your back every day.
  • Indian masala tea can be a cure too — the one with cloves or ginger. Take it daily. (Two cups of masala tea can boost your energy as well, which is a low-cost replacement of Red Bull or 5-Hour Energy drinks.)
  • Eating oranges, lemons and berries can reduce the pain over time.
  • Drinking water with a tablespoon of honey can make your day pain-free as well.

Cough and cold: When allergens or viral infections cause an inflammation in the upper respiratory tract, we get cough and cold. Here is a less-costly alternative to Tylenol or Excedrin. (This is a remedy I learned in childhood: My mother used to give me a teaspoon of honey and a few basil leaves  –Indian Tulsi — to chew. To get instant relief from congestion of nasal passages, she used to heat water with some cloves, cardamoms and cinnamon sticks and peppercorns.)

  • A soup with a lot of garlic in it can also bring relief.
  • Cut okra into small pieces and boil it, inhale the steam to get relief as well.
  • Take a hot-water bath when you catch a cold.

Migraine: This is caused by a contraction of blood vessels in the head. It can be caused by stress, lack of sleep, anxiety, nicotine and alcohol consumption.

  • Concentrated grape juice can bring relief.
  • For a more sustainable remedy, put tomatoes and cabbage into your daily salad.
  • A daily dose of garlic can treat this symptom as well.
  • Grind cabbage leaves and apply to the affected area for relief.
  • When migraines occur, excuse yourself from work. Find a dark room and lie down. Exposure to sunlight may cause the migraine to intensify.
  • Per my grandmother, even if the migraine is in the back of your head, applying sandalwood powder on the forehead can cause blood vessels to function properly. You may have seen Indian religious workers applying a patch of sandalwood powder on the forehead throughout the day. It’s an age-old practice.

Snoring: I am afflicted with this disease for sure. My wife says I am the worst offender and she can’t sleep because of my snoring, so I have started following these tactics already.

  • Stop smoking. Smoking causes more mucus formation around the throat.
  • Go to the gym. Weight loss can even end snoring.
  • Alcohol increases snoring. (When you drink, you’d better sleep in a separate room!)
  • Sleep side-wise rather than on your back.
  • Avoid heavy meals before going to bed.
  • Stop eating oily/spicy foods at dinner.
  • Maintain a regular sleep schedule, and don’t sleep during the day.
  • Wash the bed sheets and pillow covers frequently, and even change your pillow after a few months. The dust and allergens can accumulate on them, causing nasal passage blocks.

Stress: It’s amazing that stress was a concern even 60 years ago in a rural village. Here is her wisdom, which may reduce stress because you’re saving money. But more than the money saved, the main point here is reducing the dependence on synthetic drugs.

  • Chewing Indian basil (Tulsi) leaves every day is the best natural cure.
  • Yoga and Dhyana (meditation) can also cure this.
  • Milk and almonds in the morning keep you fresh and energetic.
  • Bad eating, oily foods, eating meals quickly, and drinking alcohol may cause depression over time. One of her tips to cure stress is to “love everybody and everything”!
  • Applying betel leaves on your forehead can ease your tension.

A few ingredients which are repeated here (and in the rest of the natural cures my grandmother used but which I don’t mention here) are mint, honey, water and garlic. Have sufficient supply of these items at your home, if you plan to follow the tips.

Also, another synergy I can see here is the morning drinking and eating habits. If you start your day the right way, the rest of your day should follow that lead and keep you upbeat.

Readers, even if you rely on these natural remedies, when the situation warrants it, there’s no alternative to a doctor and the prescription medicine. You need to know when to rely on home remedies and when to go to a doctor. Don’t ignore your doctor for a bit.

Source: getrichslowly.org

Apache is functioning normally

This guest post from Mike is part of the “reader stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes.

Traveling to exotic new places is a passion of mine. My wife reminisces fondly over a dinner conversation we had about nine years ago while we were still dating. I emphatically told her, “I am going to show you the world.” Sure, she probably took it as a pick-up line, but little did we know that those words would become prophetic for us.

At the time, I was a federal employee living in San Diego, California, working within the Department of Defense as a civil servant (non-military) employee. Over the next four years, we wed and my wife gave birth to our first child. Prior to marriage, we made the decision that having my wife stay at home with the kids was important to us. Anyone who has spent some time and money in San Diego knows that the city’s cost of living makes choosing to be a single-income family difficult. As our family grew and our costs increased, we decided to consider looking for a more affordable place to live.

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Apache is functioning normally

This guest post from Bon is part of the “reader stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes.

I’ve always been a bit of a capitalist so to speak, so when I decided to join the Peace Corps several years ago, not only was it a shock to my family and friends, it was a little bit of a shock to me. At the time I loved my job but knew that I would regret staying too close to the corporate path I had been following.

Calculating Opportunity Cost
One of Bonnie's young friends

When considering a major lifestyle change, ask yourself if you’re really losing your entire salary when you take a break from work. When I was weighing the financial impact Peace Corps would have, I knew the program would cover my travel, living expenses, and health care, so I wouldn’t really be giving up my entire salary for two years. I’d only be giving up what I might potentially have saved at the end of each year. Instead of my opportunity cost being something like $100,000 for two years, it was actually closer to $14,000 total. This seemed like a reasonable price to pay for the experience.</

Apache is functioning normally

A few weeks ago, I shared a monster list of ways to make more money. These weren’t cheesy chores or slimy scams, but legitimate ways a person could earn extra income if they needed. Most of the suggestions were drawn from GRS reader stories, from my friends’ lives, or from my own experience. They’re ways real people make real money when times are tough.

After I posted the list, though, I had a few people send e-mail or leave comments asking, “Why bother?” They wanted to know why I constantly harp on boosting your income.

It’s been nearly three years since I preached my complete “cash-flow” sermon. Today I’m going to preach it again. This will be review for long-time readers (or for folks who’ve read Your Money: The Missing Manual). For everyone else, one of the core tenets of the Get Rich Slowly philosophy is this simple truth: To build wealth, you’ve got to spend less than you earn. It all boils down to cash flow.

Living in a car to pay off debt

Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.

I don’t spend lavishly on clothes, hair appointments, or travel. I drive a 12-year-old Honda Civic. I got into debt by trying different business investments, including real estate and selling refurbished tablets. I also took out a student loan that I really didn’t need but couldn’t turn down the money I automatically qualified for. Those are the main sources of my debt.

My debt payments began to total more than $1,100 a month. I moved in with an aunt and uncle to make ends meet. When they wanted to raise the rent, it was the straw that broke the camel’s back. I was fed up with my situation. I couldn’t even afford to rent a room anymore.