Amazon drops California associates to avoid sales tax: a Passive Income Source eliminated

When faced with online sales tax in California, Amazon plans to drop the Amazon Associates Program for the State of California. 

This doesn't mean too much for me since I do not make any money from them anyway despite my participation in their affiliate program.

However, this is bad news for the thousands of people who do get passive income stream from amazon.com product affiliations and purchases. This is precisely why it is wise to have diversity in everything you do, including the diversity in the types of income streams.

Here is the link from where I had obtained the information;
http://money.cnn.com/2011/06/29/technology/california_amazon_associates/

May 2011 Net Worth Update

Net Worth Update: May 2011

It was looking pretty good for a while there with market gains, then there've been a few days of straight losses, so the update is not a great as it looked at the beginning of the month. Although my property value is in the dumps (~ 49% drop), I have finally been able to reach into the positive territory in terms of Net Worth.

Notes:

The $2,000.00 in the Bank of America Cash Maximizer Savings Account is not accurate since the actual amount is couple hundred dollar and some change more than that the stated amount but I wanted to keep an even figure. This account is my mom's account and she's keeping that money safe for me in the mean time until I have need of it.

Although there is a tiny bit of credit card debt, this is paid off before the monthly due date to avoid finance charges. I maintain some direct bills on the credit card in order to make sure I have some cash available before the next paycheck comes around as well as to earn some cash back credits on the credit card.  I'm still credit card debt free!

Current Considerations:

I'm currently considering opening a brokerage account with Trade King htttp://www.tradeking.com for fun. I am currently interested in buying a few shares of either Sodastream (SODA) or PANL (a manufacturer of OLEDs). This will not be used to retirement but just as an experiment.

Here is the Net Worth as of May 24, 2011:

$285,131.14    Total Assets
$9,381.80        Total Cash
$6,183.62        ING DIRECT Emergency Savings Account #1
$775.13           ING DIRECT Emergency Savings Account #2
$2,000.00        Bank of America Cash Maximizer Savings Account
$294.48           Bank of America Keep The Change Savings Account
$109.30           Bank of America Checking Account
$15.30             Chase Bank Checking Account
$3.93               Chase Bank Savings Account
$114,249.34    Total Investments
$74,276.60      Nationwide Retirement 401K Plan
$6,392.71        American Funds Roth IRA (Old)
$800.30           Vanguard Group Traditional IRA (Old)
$32,779.73      CAL PERS Retirement Account
----------------------------------------------------------------------

-$267,425.96    Total Debts
–$76.36           Total Credit Card Debt
–$64.36           Citibank Thank You Preferred Credit Card
–$12.00           Bank of America Platinum Plus Credit Card
$0.00               Chase Slate Card
$0.00               Citibank Diamond Credit Card
–$105,849.60  Property Value
$161,500.00    Primary Residence (Zillow.com estimate)
–$267,349.60  Home Loan
___________________________________________________________$285,131.14 Total Assets
-$267,425.96 Total Debts

+$17,705.44 Net Worth

DEBT FREE!!

Debt Eliminated!

As of today (April 20, 2011), I have paid off approximately $7,000.00+ in credit card debt that have accumulated since the beginning of 2010. Finally! 

I still have about $8,000 of savings left in a 1% ING Orange Savings account and a Bank of America Maximizer Account (0.15% apr). I will close out the Bank of America's Maximizer account and put the $2,000 and change from that account to be combined with the ING account. This will be my emergency fund.

Not too bad considering the 15% paycut that has been in place since the beginning of 2010 at my job. This paycut will continue until the end of 2012, but the management has been negotiating on extending it to 2014!

My main method of Debt Elimination:

It's simple. Most people cut back on the area that they spend the most on. For me, this is the "Dining Out" area. It's just me and my partner so we waste alot of money by going out to eat all the time. I knew letting go of the "dining out" concept would be hard so I, instead, focused on cutting down entertainment budget and utilities.

1) We did not go to clubs or concerts during 2010. We went to the movies mainly.

2) We hardly turned on the heater/air-conditioner during 2010.

Savings from these cutbacks combined with any leftover money, initially purposed for saving, went into paying off the credit cards.

This is pretty much following Dave Ramsey's debt snowball concept; throwing every extra penny into the smallest debt, then working your way up to the biggest debt.

What's next?

Reduce The Biggest Expense:

I realize that I should eliminate the biggest leak and stop eating out. I have come to a solution that's unique to my situation. I will detail this solution in another post forthcoming. I do not want to post about this until I can be sure that this solution indeed works.

Start Saving More:

I plan to save $700.00 per month to add to the emergency fund. I should max out my 401K but currently, my main objectve is to have the emergency fund around $25,000 by April, 2012.

I view Dave Ramsey, the personal finance guru, as more of a motivational speaker than a precise financial expert. Either way, he can be heard on AM 980 radio station from 11:00 am to 2:00 pm if you live in the southern california area and his books can be found from any book retailers or amazon.com.

Here is one of his books that can help motivate you like it did for me:

Hopefully, 2011 will prove to be the year of saving for me.

July 2010 Net Worth - Negative!

My July 2010 net worth is depressing but this is where I will start over again. Mainly, it is due to the loss in the house value that is putting me in the negative territory.

The Chase credit card balance (nearly $6,000) is currently at a 0% interest rate for new charges and balance transfers. I am currently paying the minimum monthly payments in the $100+ range.

However, the $600+ balance carried by my long time Credit Card company of choice, Citicards, is now at a 20% interest rate.  I had never been late on any payments since I've held the card. Once I payoff the remaining amount of this Citicard, I will not use this anymore. If I do use it for emergencies (car, medical, etc.), I aim to pay it off before the billing cycle is completed.

With the extra paycheck I'll be receiving this month, I am to pay off the remaining Citicard balance and save the rest of the paycheck. August 2010 will have a little boost and edge it closer to the black territory.

Getting Back On Track

I Messed Up

I created this blog back in 2005 because I wanted a way to keep my honest in my spending behavior as well as to act as a focus for my financial life. A goal tracker. I was very diligent in my saving as well as in my spending leading up to the purchase of my condo.

After that goal was reached, I did what I hope many people do not do after reaching their goal; For the past 5 years, I have derailed myself from the original goals of saving and living frugally. I went on a mindnumbing phase of spending frivolously in an extreme sense. Not only did I not save $1,000 per month as planned during these five years, I used up all of my emergency fund.

Yes, all $15,000 of it. Including missed opportunities as well as the extra income from freelancing jobs, I ate up and spent more than $85,000 during these past five years.

Now, I don’t even want to try to calculate and include all the interest income I could have had, had I kept it in the savings account, because the sheer amount of it will just distract me from what I need to do from this point on.


Where did it all go?

The honest truth:

1) I ate it.

2) I bought a lot high-end makeup. I have enough to act as a makeup counter.

3) I bought unnecessary clothing. Some pieces are the type that I would never wear anymore.

4) I bought a lot of "wants", including electronics, furniture, and accessories.

5) The final reason is a big thing for me to confess...an addiction that I never thought I would be caught dead doing in this lifetime.  But I must be honest with myself.

I got addicted to gambling; Blackjack, in particular.

Every extra paycheck went into my visits to the Casinos.  At one point, I was rotating three or four different casinos in order for the dealers to stop recognizing me.

Now, I'm not saying that I'm all better and this alter-ego gambling me has been miraculously kicked to the curb.

I am taking one urge at a time.

The last trip was two weeks ago when I spent two thousand dollars... the same two thousand dollars I needed to save in order to reduce the debt that I have accumulated.

Debt

This brings me around to talking about the debt amount that I have accumulated since the "fall". I have approximately $ 6,300 in a brand new Chase Visa card and approximately $900 in a Citibank Credit Card.

Savings Goal (May 2010 - March 2011)

$20,000 by March 2011
This amount does not include the $7,200 debt that I must also pay off by then.
Thus, the total to be saved = $27,200

Current Status
 
$ 4,000 in an INGdirect online savings account
$ 4,000 in a Bank of America savings account
$ 1,000 in a chase checking account
 
Total: $ 9,000 cash savings
 
All these accounts are not under my name or within my access for a good reason.
 
During the last few years, I met my current live-in boyfriend and since he realized that I have a serious gambling problem that he couldn't control no matter how much he tried, he has been putting away his money that he was supposed to pay me in terms of rent into these accounts.
 
Immediate Plan of Attack
 
The $ 6,300 debt in Chase Credit Card is the newly transferred debt from the original Citibank Credit Card due to their 0% balance transfer offer for six months. 
 
I plan to pay off the remaining balance on the Citibank card ($ 900) ASAP and then, pay the minimum payment on the new Chase credit card until the six months run out.
 
A New Promise
 
I promise to myself that I will be saving every dime until I build up enough money ready to pay off the $6,300 as well as the remaining $11,000 saving gap by the end of March, 2011.
 
That's it. For now.

Can I Live without Television To Save Money?

The other night, as I was watching my boyfriend watch television, I was reminded again of how television can induce a mind-numb state. He was supposed to be reading up on financial matters or anything to prepare for his up and coming interview at a financial/investments company.

Then, I had an idea that by cutting out television, I would save about 60 dollars each month AND save valuable time for both me and him, forcing us to perform more beneficial tasks, such as reading, working out, etc.

We would still have the DVD player and could get Netflix subscription again (the one DVD turnaround), so we would still have easy entertainment when we choose to.

I turned towards him and proposed my plan...and he looked at me as if I had pulled the rug out from under him. So, the television subscription will continue but I will try again in a couple months, hehe.

Earn Money While You Get Healthy!!!

Healthy Lifestyle Rewards Program - Blue Shield Vs. Kaiser Permanente


There are a couple of incentive programs occurring currently with Kaiser Permanente (HMO) and Blue Shield of California (HMO and PPO) medical insurance companies.

Blue Shield

Has an online, interactive program that has "tools" to help one get fit, lower stress, and/or quit that pesky smoking habit (me..yes, guilty still.)

Basically, the program requires you to sign on to their website (www.blueshieldca.com/hlr) and fill out a "Wellness Assessment". By filling out the assessment, you get $50!!! Sign onto the program and keep checking in and using their resources/tools on the website every week to update your profile with the fitness progress that you're making, you can earn up to $200 in one year. It's still a great incentive for a few minutes of your time and what disadvantages could there be?? You're working towards a healthier you, and we all know that keeping track of your efforts can definitely keep you on the right and LONG-lasting path to a healthier you.

I wish I had Blueshield medical insurance, darn.

Kaiser Permanente

They're cheaper. In terms of their rewards (potential rewards, in this case) and in terms of their service costs and quality of service. I've always been a Kaiser member ever since I got medical insurance because they're cheaper but lately, I've been wondering if I should move to Blue Shield PPO due to me getting older as well as the growing medical problems I seem to be blessed with lately.

Their "incentive" program is that they give you CHANCES to win rewards if you fill out an online "Total Health Assessment". Go to their website and sign up for a kaiser online account with your medical account number (www.my.kp.org/ca/calpers). Click on "Be rewarded for living well". Fill out the form and open the health guide designed to whatever you filled out in the assessment, which will enter you into the drawings.

There are five seperate drawings, so you have five seperate chances to winning multiple rewards.

The rewards are as follows:

* $500 spafinder.com certificate
* $500 (REI, Sportsmart, or Big 5) sports store certificate (This is the only thing i want to win, since I really really want a mountain bike)
* An 80GB color screen iPod

I definitely prefer the Blue Shield's rewards program, because it fits the definition of an incentive program more than Kaiser's, which is just a lottery-type drawing. You're pretty much garanteed to earn $50 by completing the assessment. In addition, Blue Shield's program encourages long-term behavior by giving you continued incentives to keep track of your health progress through out the year and rewarding you monetarily throughout the program's length.