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Starting a Business? Read This Guide!

January 27, 2012 By Shane Ede 1 Comment

One of the best ways to break out of the daily grind, and do something that you really enjoy, is to start a business.  You’ll likely work twice as hard, but because it’s something that you love, you’ll enjoy every minute of it.  When my wife quit her job, she could have used a lot of the advice that is contained in the guide I’m about to share with you.  There were lots of questions about the structure and methods that are necessary to starting a small business.  Luckily, if you’re starting a new business, you can read the guide and cut through some of the learning process.

The guide I’m talking about is one that has been put together by my friend, Eric, from Personal Profitability.  It’s free.  All you have to do is have an email and sign up for his newsletter.  He’s a stand-up guy, so your email is safe with him, and all you’ll get is some really great information about starting a business and personal finance.

So, go over and sign up for the newsletter and get your copy of the Starting a Small Business guide.

The guide is 16 pages long, and covers everything from developing your idea into a business to increasing revenue and income, to the proper ways to exit a company you’ve started if that’s what you want to do.  It’s not all-inclusive (that would take a couple hundred pages), but it is a great start on your way to starting a small business.

Filed Under: Business Finance, Guru Advice Tagged With: small business, small business guide, starting a business

Is Recycling Bullshit?

January 25, 2012 By Shane Ede 27 Comments

Show of hands.  How many of you actively participate in recycling endeavors in your community?  You schlep around your empty cans, jugs, and bottles.  You pile them up with your used papers, then sort them all into bins so some poor schmoe down at the recycling center doesn’t have to.  All so your city can save a few dimes on an already expensive endeavor. Ok, now show of hands, who thinks recycling is bullshit?

Let’s think about this honestly for a minute.  Because, I think we’ve got our terms confused.  What, exactly, is recycling?  It’s the taking of something that’s already been used, and putting it back through the manufacturing cycle so that the material can be used again.  That extra cycle is where the term recycling comes from!  But, what is the cost of that extra cycle.  Let’s break it down a bit.  We’ll ignore the first cycle, since it’s going to get used for the first cycle regardless.

Let’s consider a plastic bottle.  It’s been created, and used.  It’s empty, so has no further use in it’s first cycle.  You collect it with similar bottles, then submit it to the local recycling center.  We’ll discount the energy that you use in collecting the bottle, as it really isn’t that much more work than you would use in throwing the bottle away.  But, what about the energy that will be used in picking up or dropping off the bottle.  You’ve got to either have someone pick up the bottle, or you have to drop it off at the recycling center.  Once the bottle has been taken to the recycling center, it then has to be shipped to a factory where it can be broken down in a way that makes it recyclable.  More energy wasted in transportation.  Once it’s there, at the factory, it then has to be broken down.  Depending on the process, that could involve melting the plastic under heat.  It could mean squishing, cutting, and making the plastic into threads.  Even more energy wasted.  Once it’s been broken down, the resulting product must be taken to yet another factory that can then turn it into the “recycled” product.

By the time it’s recycled, it’s been through a manufacturing process three times.  Does the extra cost in energy, pollutants, and work make it worth our while?  I’m not sure that it does.  Want to take a deeper look at some of this?  Take a look at this video.  Now, arguably, the show is called “Bullshit”, and anyone who uses that as the name of their show (or as a title for an article) is out to be a bit sensationalist.  And, certainly, I don’t know that Penn and Teller count as experts.  But, I do think they make some interesting points.  There’s three parts to it, so it’s a bit long, but worth watching, I think. When you’re done, we’ll continue on below. P.S. as you can imagine, a show whose title is “Bullshit” has some NSFW language in it.



I admit, I like sensationalism. And, I’ll make another admission. I’m not entirely against recycling. But, I tend to think that the first two parts of the motto “Reduce, Reuse, Recycle” are far more useful and important than the recycling. By reducing the amount of energy and products that we use, less needs to be made. By reusing the things that we can, we reduce the amount of products that will need to be recycled or thrown into a landfill.  Instead of expecting someone else to ease my conscious, and take away my trash to be converted into something usable, I’d rather reduce the amount of trash I make.  Less paper plates.  Less non-reusable water bottles.  Less stuff.

The one thing that I collect to send off to recycling is soda cans.  Mostly, because I can drop them off at the local Humane Society where they take them to a scrap metal yard and sell them for cash.  It’s an extra way to give to one of my favorite charities.  Here’s some more sensationalism for you.  The Humane Society is, essentially, a pet recycling center.  People take their unwanted and used pets there, so that they can be washed, fed, given their shots, and sent back out to a new family.

I’ve gone on about recycling long enough.  Now, it’s your turn.  Is recycling bullshit? Scroll down a few inches on the screen and leave a comment.  Do you agree that recycling might be bullshit?  Do you recycle religiously?  What steps do you take to reduce, reuse, and recycle?  Heck, you can let me have it in the comments too, if you like.  One small caveat in doing so, is that any excessive NSFW language will likely get edited out.

 

Filed Under: Green, Home, Propaganda, ShareMe Tagged With: environment, Green, recycling

Are Personal Loans a Scam?

January 23, 2012 By Shane Ede 13 Comments

Consideration provided by Compare the Market

One of the reasons that I dislike payday loans so very much is because of the terribly high interest rates that the payday loan companies get away with charging.  Couple that with the high fees, and it doesn’t take a genius to see why most people who know anything about personal finance will agree with the “parasitic lending” tag that I throw at them.  By comparison, a personal loan isn’t much better.  Or is it?

Personal loans have some of the same high interest rates, after all.  Aren’t they just another way for the dastardly financial institutions to charge high rates, and rake in the high profits?  Well, yes and no.  Yes, they do charge high interest rates for personal loans, but there’s a very valid reason for that.  And, as a generality, the rates are not as high as those charged for the payday loans.  So, why do institutions charge higher rates for personal loans?  The answer is in the guarantee.

Guarantee?  What the heck am I talking about?  In a typical consumer loan, you’re buying something.  Instead of a personal loan, you get an auto loan, a mortgage, or a recreational vehicle loan.  In exchange for the loan money, the lender gets a claim on the title of the thing being bought.  If you default on the loan, the lender can repossess the car, house, or ATV that you bought with the money.  Because they have that collateral, the risk of losing money on the loan is decreased, and they can afford to give you a lower rate because of that decrease.

February 5, 2010 - PaperworkA personal loan, has no such collateral.  The only guarantee that you will pay the loan back is your signature.  Coincidentally, that’s why they will sometimes be called “signature loans”.  Because the lender cannot repossess your signature, the risk of default is raised.  And, because it is raised, they charge higher interest rates.

At this point, you’re probably asking yourself, “What’s the difference between a personal loan and a payday loan, then?”  Truthfully, there is very little different.  The one difference, and it’s one that makes a big difference, is that a personal loan is usually issued by a financial institution like a bank or credit union, whereas a payday loan is issued by that shady pawn shop across the street.  And, as a general rule, banks and credit unions are a bit more upstanding than the pawn shop.  In most cases, they have a good reason to treat you fairly.  They want your business.  Not just your next loan, but your savings too.  If they treat you poorly and charge outrageous rates, you’re likely to find somewhere else to put your money.  That pawn shop could care less.

Another difference, that bears mentioning, is that banks and credit unions will usually require that you have a good to excellent credit rating before giving you a personal loan.  For obvious reasons.  The risk is already higher without collateral, so they don’t want to risk their money lending it to people who have sub-average credit scores.  The pawn shop could care less.

Have you ever borrowed a personal loan from a bank or credit union?  From the pawn shop?

photo credit: nerdcoregirl

Filed Under: Financial Truths, loans, Personal Finance Education, ShareMe Tagged With: collateral, guarantee, lending, payday loans, personal loans, signature loans

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