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When DIY Home Renos Don’t Pay

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While those with a professional background in contracting, construction, or related trades are welcome to look away, this post is for those American who have, are, or will be attempting to complete home renovation projects alone.

Investing in your home by staying on top of updates and necessary renovations is an important part of being a responsible home owner. However, some want to add value so badly, that they are willing to complete these renos alone, even if they have never even attempted anything similar in the past. In some cases, this positive, get-to-it attitude gives great returns, however there are certain projects which only the trained and skilled should attempt. Trying to bypass hiring a professional can not only have the potential of backfiring, it can end in a total and complete disaster.

Here are some projects you should never take on unless you have the licensing to do it legally:

  • Electrical Work

There are a few reasons while electricians are always in high demand. For one, even if you plan on trying to get the wiring done yourself after finding a video tutorial on YouTube, you still need to hire an electrician. Why? Because in order for you not to void your own home insurance, you need to have an electrician come and sign off on the work done. By doing so, they certify that everything is up to code and is deemed safe. If something is off, you’ll most likely end up paying him to fix it and then give his stamp of approval. Was it even worth you trying in that case? Most often the answer is no. Another reason why DIY is not the best option for electrical work is because the risks created by doing it wrong are huge. Electrical fires are a common cause for home destruction in America, and if the insurance company finds out that it was due to your “fiddling”, you’ll get no help at all.

  • Plumbing

Plumbing is heavy-duty work which requires a lot of specialized equipment and tools. However, sometimes eager DIY advocates have no problem renting the equipment and getting down to work. The problem is that there is a lot more to plumbing than putting in tubes. Like an electrician, it’s a specialized trade with a specific code which the plumber uses to make sure that you and your family are safe in your home. There are a lot of risks involved with pressure and such, so if you do end up trying to manage it yourself, be prepared to get messy and risk ruining other aspects of your house, like floors, ceilings, walls, and more. Having a good relationship with a qualified and honest plumbing service is never a bad thing. That way you have access to qualified technicians for all types of emergencies regarding your plumbing problems, no worrying or waiting for parts to get in.

  • Gas Work

Installing or modifying the natural gas in your home is probably a game that you should not play. Not only is having a gas leak a big possibility with even bigger repercussions, you also need a professional’s stamp of approval, very similarly as what you need from an electrician for electrical work. The safety of your family, and that of your home insurance policy, rests in this rule.

  • Structural Work

If you are looking to add value to your home with the smallest financial investment on your end, the last thing you would want to happen is to have your home sink or collapse. However, this is a real possibility for those who attempt to do structural work without a full understanding of what it entails. Putting up additions, moving walls, or opening a space should all be approved and overseen by a qualified professional. Of course, you can jump in and do the dry walling and the painting, however let the engineers calculate the bearing loads of walls and beams while you calculate the returns on your home renovation investment.

Adding value to your home through renovations can be a great way to boost your investment portfolio. However, it’s never worth it if it’s not done correctly. Always look for good quality and thoroughness when hiring a contractor to work on your home, and if you are going to do it yourself, get a second opinion on your work.

Unexpected Costs Associated with Moving

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The average American moved homes every 5 years, quite frequently if you ask me. Very often these moves are motivated by finances- either a promising, better-paying job has popped up in a town far away, the opportunity of cashing in the rise in equity in your current home, or loss of income prompting a move to a cheaper property.

No matter whether you think you are making money or saving it, remember that the move itself comes at a cost. So if you think that this move will improve your financial situation, also consider the real price of moving.

Here are some costs that some people forget to add to their spreadsheet of relocation expenses:

  • Real Estate Agent Cut

If you sold your home for $500,000, there’s no way that you are getting that full amount deposited into your bank account. Before you even get a chance to pop open that bottle of champagne, your real estate agent would have taken his or her cut, anywhere from 2% to 6% of the total selling price. If your selling agent worked with another agent to bring in a buyer, they split the commission between themselves, but unfortunately you won’t see any of it.

  • Land Transfer Tax

Land Transfer tax is the fee collected by the municipal government for transferring the name of the property deed to the new owners. This, unlike the real estate fee, is covered by the buyers, not the sellers of the property, and can range from 1% to 2.5% of the purchase price, depending on the geographical area.

  • Legal

There’s no way around it, the sale and purchase of a house comes with the need to hire a real estate lawyer to accomplish a few things among which will be the checking and transfer of title, and the closing. Though some decide to go without a real estate agent, the lawyer is an indispensable expense which you cannot get omit and can cost you anywhere between 1.5% to 4% of the sale price. There are benefits to more intimately involving your lawyer into the process of buying and selling your home. He or she can help avoid situations in which there is an issue with the brokerage commission, or unclear clauses in the offer or purchasing agreement.

  • A Moving Team

The price of the actual physical move is also something to take into consideration when doing your math and seeing whether it’s financially feasible for you to change your living situation. When you add up the cost of the boxes, hiring a moving team, renting a truck or van, gas, and more, don’t be shocked if it ends up being more than four thousand dollars if the move is interstate. Local moves tend to be cheaper, probably half the price, but still a considerable sum of money. This price can become even more substantial if you need to hire movers specializing in moving heavy objects and pianos, or you have large fragile pieces that need special attention.

Of course, every situation is a little different, with those upsizing needing to buy more furniture, while those downsizing considering the rental of additional storage lockers to keep their excess items and furniture which won’t fit in their new home. Some houses are sold without appliances, or the existing ones are old and need to be replaced. Case proven, it costs money to move, and that doesn’t even cover the direct cost of the house or condo you are purchasing. If you still are thinking that it’s time to shoot the coop, make sure that you understand the full financial implications related to changing your address.

Making America Great Again: What does that really mean?

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Though we are probably sick of this slogan already, there is some truth in the power of the American people to be world influencers, and truly a great nation in every sense. However, with the rise of globalization, it seems like America’s economic power seems to weaken, mostly due to the decrease in industry and production in this part of the world. Many companies have moved operations overseas in order to remain competitive with their pricing, often crippling American industry towns.

However, things seem to shifting recently with the political atmosphere, and though not everyone would agree on the social and environmental direction, many can get onboard with the economic agenda. This is especially true for those involved in industrial production and are hungry for more opportunity and work.

The good news is that American companies looking to either expand or start up in the industrial space have a few things going for them that wasn’t the case even 10 years ago.

  1. Cheap Space

Manufacturing takes up a lot of space. Arranging machinery, storing materials, and packaging products all requires a lot of room. It used to be very difficult for a company to afford a spacious building near a readily-available workforce. However, in places like Detroit, the administration of the city is so hungry for economic development, that they will lease you a large building for very little if any money at all. This makes it easier for the manufacturing industry startups to initiate their operations and maintain cash flow in the first few months. With so many empty warehouses and buildings, this capital investment will not be a burden on a newly expanded or created company like it would have been in the past.

  1. Used Machinery

Unfortunately, in the last few years, many North American manufacturing companies went out of business. However, they left behind a wealth of preowned industrial machinery, much of which is still in good condition and usable for many years to come. All a new start up needs to do is get in touch with a company selling a large range of used process equipment for industrial purpose. No need to order or buy new machines, some of which cost upwards of several hundreds of thousands of dollars. With such a wide supply of used machinery, there’s a good chance you’ll get what you need at a winning price.

  1. National Pride

In the last few years, Americans have developed a sense of pride around items made in the States. They are willing to pay a premium to support products and services created in America rather than oversees. This is mostly due to seeing and feeling, directly or indirectly, the impact of purchasing power. One thing that America never lost was a high level of quality and pride in its work. Thanks to this, manufacturing companies can in a way compete with offshore producers. Unfortunately, sometimes it takes something bad to happen to get us all united under the same goal.

  1. Taxes and Duties

Though it’s mostly been just talk until now, if President Trump gets his way, manufacturing in the States will become an even more attractive option for those who are currently on the fence. By taxing imported manufactured goods more heavily than domestic ones, items made in the States will cease to be at a price-point disadvantage. This means that people won’t just be choosing American over foreign because of patriotism, but also because it makes fiscal sense to them.

If you are considering either opening a manufacturing company or are deciding if training for manufacturing jobs is a good investment of time and resources, the answer is “do it”! Right now, Americans are getting a second chance at becoming a country of producers and manufacturers, and you could be part of this resurgence!

When Peace of Mind is Worth That Extra Dollar

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Most of us here on American Debt Project are looking for a way to become financially stable and liberated. However, often on this journey towards achieving this goal, we overwhelm ourselves with constantly calculating, comparing, researching, and maximizing our time and money. No matter what your financial situation is, it’s not worth driving yourself into a state of anxiousness and desperation in order to attempt to fix it.

Eliminating debt is all about balance and applying simple strategies to get real results. Though it’s definitely a lifestyle change, it’s not the sole purpose of your existence, and some of us have trouble facing this truth.

There are situations in which it is worth paying a premium to have peace of mind, even if that means losing out on some savings or even paying extra:

  1. Insurance

It seems that everyone has a love/hate relationship with insurance. Though we see the value in having it in case everything goes wrong- not all of us have had to use it. When you calculate your payments over the years on your home, car, business, appliances, or even computer, you’ll find that it’s not always “worth it”. But the thing about insurance is that there’s no way to predict whether or not you will ever need it. However, we choose to have it because we know that otherwise we would have a very hard time financially dealing with and recovering from a blow like a destroyed home or totaled car. On top of all of this, there is the case for giving you the peace of mind to sleep at night. No worrying whether your rental car will be scratched or if you fall sick on your honeymoon- insurance has got you covered!

  1. Postage Tracking

Though we know that “snail mail” has become a much quicker and more effective way of moving information and items than it used to be, there are still many things that can go wrong. Those of us on a budget are often tempted to go with the cheapest mailing option, even if it is the slowest, because we want to save money. However, depending on what the contents are, you might want to consider a better option which includes tracking and maybe insurance as well. Otherwise, you risk losing the entire value you are sending plus the cost of the postage, even if it was the cheapest one. This is especially important if you are shipping products out to clients who value having a tracking number and would be deeply unsatisfied if their purchase did not come on time. Having postage tracking also keeps you informed and not double guessing whether or not your recipient has successful received the item.

  1. Security

Security today is much more complicated than it used to be, as risk has gone past a physical one and now affects the virtual realm. If you want to decrease your stress levels and leave the worrying to the experts, carve out a sum in your budget that will cover things like alarm systems, virus protection services, and a lock for your gym locker. If you are going to waste time and sleep worrying about it, it’s a much better idea to let go of that anxiety and trust that your safeguards are sufficient to keep you, your family, and your personal and business information safe.

  1. Moving Team

Moving houses can be a stressful time. On top of all the expenses, all the paperwork, and the packing, there is also the elevated risk of your belongings either being damaged or going missing. Your entire life’s belongings are literally in the hands of the strangers who make up your moving team. Choose a company offering high quality moving services to have peace of mind during this busy time, and direct your energy into something more productive.

  1. Home Inspections

When purchasing a home, especially one that seems to be “the one”, it’s easy to just want to jump at the occasion. However, to quiet that niggling voice at the back of your mind, it’s best to put down a condition in your offer regarding purchase upon a successful home inspection. A house is a big investment, and you want to make sure that you are confident in the condition of this building. The money spent on a professional home inspection will give you that extra bounce in your step as you know that you are making a sound financial investment.

Sometimes paying for peace of mind is actually a better investment of your money overall, as we have seen in these examples. Remember to value yourself and your health when making financial decisions.

Ways to Reduce Debt by Investing in the World’s Financial Markets

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“It’s not how right or how wrong you are that matters but how much $ you make when right and how much you do not lose when wrong” – George Soros.

Most commentaries on the state of the global situation agree that we are living in tough geopolitical and socio-economic times. Very few countries remain unaffected by America’s internal and foreign policies; consequently, the world waits on tenterhooks to see what Donald Trump’s latest bombastic and obnoxious utterances are going to be. It must be noted, however, that he managed to garner the majority vote in the November 2016 USA presidential elections; ergo, most USA citizens must feel that his policies and pronouncements are indicative of the direction that they want the USA to take.

Take the rise of nationalism in the USA, for example, and the move to exclude migrants from entering The United States of America. Another diplomatic crisis is once again brewing as Donald Trump has pointed fingers at other countries for not managing their migrant populations, as well as blaming the presence of migrants for an increase in the crime rate of the involved countries. Thus must, and does, play a major role in creating volatility and instability in the financial markets.

In my experience, the stock markets usually stabilize as they get used to an idea. In other words, they should start reacting less and less to Trump’s pronunciations. In this case, however, I am honestly not sure that this will ever happen. His foreign and domestic policies are too radical and too harmful to many people, especially the disadvantaged global citizens.

Minimizing debt by increasing investments

It goes without saying that many people are saddled with large amounts of debt, and they are battling to settle this debt. Is it possible to invest on the global financial markets in order to pay off debt? I think it is possible and a good idea; however, restraint and self-control must be exercised. It is easy to end up losing your initial capital outlay, as well as ending up in a worse financial position that when you started.

How do you minimize risk while increasing gains?

There are a few simple tips which will help you reduce your exposure to risk and increase the size of your investment portfolio:

The careful consideration of your online trading partner

It is easy to sign up with the first investment broker you come across; however, the continued ease of access to the internet has allowed for the rise of unscrupulous agents whose aim is not to help you grow your investment. It is rather to fleece you of your initial investment and then to disappear. Therefore, take time to look for a bona fide broker with a solid reputation. You won’t be sorry.

Knowledge is power

It’s vital that you try and learn as much as there is to know about trading on the global capital markets. The more time you take to research an underlying asset’s price movement history, as well as the past, present and future market trends, the greater chance you will have of making the right decision. At the same time, it’s important not to vacillate after having made an investment decision. Once you have made a decision on what assets you want to trade on, stick to your decision. Trust yourself! Don’t change your mind halfway once you have opened your position and before your position closes. This is one of the quickest ways to lose money.

Implement a conservative trading strategy

One of the best ways to thrive in volatile, unstable market conditions is to implement a conservative trading strategy. I believe it is best to stick to day trading; ergo, you open and close your position within the same day. In this way, you will avoid going to sleep at night knowing that the market conditions are looking strong to waking up the next morning to discover that the bottom has fallen out of the market because of Trump’s latest enunciations (for example).

Final words
In conclusion, it must be stated that the purpose of this article is not to opine or deliver judgment on Donald Trump and American politics. The facts are what they are; notwithstanding, the bottom line is that the global financial markets are strongly impacted by what the USA, and other countries, say and do. Furthermore, the aim of this discourse is to consider the extent to which the current global events impact the world’s financial markets, to determine how to thrive in such a challenging environment, and to be able reduce your debt levels in spite of the current market conditions.