Sunday Link Love: March 27, 2011
Good riddance to the 35-year mortgage!
The 40-year mortgage was introduced. Then they got rid of it. Now they’re thankfully also getting rid of the 35-year mortgage. I know people who have taken out both 40-year and 35-year mortgages, and while it seems like it has worked out for them, I firmly believe for myself that if I cannot afford the payments on a 25-year mortgage (or at the very least, a 30-year mortgage with accelerated bi-weekly payments), then chances are I cannot afford the house I am looking at.
The same goes for a 20% down payment. I think that in order to take home ownership seriously, you should take saving for a down payment seriously. While my goal is to save 20% for a down payment, I understand that just isn’t realistic for everyone. But start thinking long term. If home ownership is something that you want for yourself in the future, it doesn’t hurt to start saving a little bit for it now. Even starting with $25/month is great (that’s what I started with). Anything saved is better than nothing, right?
Goodbye to a couple blogger friends
It seems that PF bloggers Girl with the Red Balloon and Blonde on a Budget have deleted their Twitter accounts and blogs – both within days of each other. It’s true that PF bloggers come and go, but it was tough to see these two go. Girl has been around for what seems like forever, and Blonde was a great blogger and a friend in real life. We will miss you both!
Around the blogosphere
- Tim Stobbs over at Canadian Dream has published his first book: Free at 45. I cannot wait to read and review it!
- Bank Nerd posted a list of the best personal finance articles of the week. Guess who he thinks “tweets like an addicted maniac”? :)
- J.D. Roth of Get Rich Slowly talks about his 42 goals in 42 months. I love learning more about bloggers.
- Cupcakes n’Cash reveals what her her debt is for the first time.
- Squawk Fox lets us know about 5 investment fees that devour your savings.
Not quite PF-related
Okay, this blog post is about a guy named Peter Coffin (who has since protected his Twitter page). Blogger Xiaxue got sick of Peter constantly insulting her on Twitter because he thinks she’s vain. So she did a little research into his background to see if she could get some dirt on him. Turns out she hit the jackpot. Apparently she found out that Peter had been faking an 8-month long relationship with a fake Japanese model named “Kimi Kobayashi.” He stole some photos of some girl off the internet, set up a Twitter account and a YouTube account of her, and proceeded to have an online relationship with himself as Kimi for 8 months. The entire thing is documented in humiliating detail on Xiaxue’s website. I love stories when bloggers triumph over trolls and haterz.
Blast from the past
A couple of days ago, I had an really interesting conversation about emergency funds with my editor.It reminded me of the time my Emergency Fund saved my butt. Back in 2007, I finished up a 1-year contract and applied for Employment Insurance in mid-November. Even though all of my paperwork was filed properly, I didn’t receive my first payment until mid-February – and by then I had already found a full-time job! That’s nearly 3 months without a single penny of money coming my way.
Without the $3,000 I had stashed away in my Emergency Fund, I would have had to go into debt and rely on my line of credit and credit cards to get me through. Because when you get laid off from your job, how else will you pay for rent, groceries, Christmas presents, cell phone, internet, and of course travel costs to get to job interviews? And to think that, if it had happened to me the year before, in 2006, I would have been heavily in debt, with only a few hundred dollars in the bank. That thought just scares me.
Author: Krystal Yee
I’m a personal finance blogger and marketing professional based in Vancouver. I’m a former Toronto Star (Moneyville) columnist, author of The Beginner’s Guide to Saving and Investing, and co-founder of the Canadian Personal Finance Conference. When I’m not working, you can usually find me running, climbing, playing field hockey, or plotting my next adventure.