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Author Archives: Kristina Tahnyak

Avatar photo About Kristina Tahnyak

Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.

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Can you believe that people still rob banks?

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bank robbery, bank problems, bank being robbed

lego bank
Last week my bank got robbed.  That’s right for the 3rd time in my 10 year career in the financial services industry my bank branch got robbed.  Can you believe that people still rob banks?  We were recently warned that there was a man robbing various bank branches in the area and to be prepared…just in case.

The three bank robberies that I have experienced did not directly involve me because I work in the offices and not on the front line as a teller.  Bank tellers are always told to comply with all of the robber’s demands and just get them out of the branch as quick as possible.  Bank tellers are not supposed to ask questions or give any signals to other staff that they are being robbed.

Bank Robbery #1

The first bank robbery that I experienced was in my early 20’s.  Each teller had a panic button under their wicket which set off a silent alarm in the branch manager’s office when it was pressed.  When she received the alarm the branch manager told everyone in the offices to shut their door and close their lights, to prevent the bank robber from implicating any more staff members than was necessary.

The robber came in quietly and went directly to the commercial wicket, which is where the most money is held, he obviously did his research.  The bank robber handed the teller a note with instructions, she handed him the money in a bag and he was on his way out of the branch.  To any other client the bank robber looked just like a normal commercial client coming to get change for their business.

After the robbery was over another teller came over to the commercial teller and asked if she was alright because she had just got robber.  The funny thing about that was the commercial teller had not told anyone yet that she was robbed.  It was an inside job and the bank robber was actually the teller’s boyfriend. Needless to say he got caught, and she got fired.

Bank Robbery #2

The second bank robbery that I experienced was almost 2 years ago.  The bank robber came into the branch and waited in line.  When he approached the teller he told her to give him all the money and that he had a gun.  He did pull something out of his pocket, but the teller thought that it was a toy gun.  The teller was taking her time hoping that he would get frustrated and leave (which she is not supposed to do), he told her to hurry up and then he called her a name that rhymes with witch.  The teller was so offended that she decided to give him $5 bills and rolls of quarters.  The bank robber left with less than $1000 in coins and small bills. He was caught less than a week later when he robbed another bank branch.

Bank Robbery #3

Last week was my 3rd bank robbery experience, but it was my first experience with the crime scene investigator.  She didn’t look anything like Catherine Willows or Sarah Stokes from the popular CBS Television Show.  She was wearing coveralls, a hairnet, flat shoes, and a doctor’s mask.  She was working alone but she was accompanied by two police officers, one of who ended up taking a mortgage with our bank by the time the day was over.

Facts about Bank Robberies

  • If your bank is “closed for maintenance” or had a “power outage” they probably got robbed.
  • Bank Robbers don’t really get that much money because tellers do not keep a lot of cash in their drawers, for this particular reason.  Most bank branches have one centralized machine that dispenses money or only one teller who controls all of the money on the floor.
  • Banks have pre prepared “robbery bags” that we give to bank robbers.  The bills may not be sequenced but they have been previously identified and will be flagged if the bank robber ever spends the money.
  • The “robbery bag” no longer contains ink to destroy the money because banks cannot take the chance that the bank robber will return in an angry rage and possibly become violent.  The “robbery bag” controls the amount of a potential loss.
  • The days of wearing ski masks and coming in with weapons are over; nowadays bank robbers wait in line and appear to be a “normal” client. They are definitely nothing like you see in movies such as Takers and The Town.

The next time you are in line waiting to be served by a teller at your bank, look around.  The person standing in front of you or behind you may be in line to rob your bank.

More great articles you may find interesting:

Photo by Pasukrau

Friday Roundup: It’s Time To Buy a House

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Happy Friday DINKS!  It’s May and that means that house hunting season has begun.  The spring is a popular time to buy a home because the cold winter weather is long behind us, and the hot sweaty summer has not yet begun.

Are you planning to buy your first house or another house this Spring? If so then you may want to check out the links below that discuss everything about the process of buying a home, from looking for a good Real Estate Agent to whether home ownership is really a good investment for you.

Like most personal finance decisions, real estate is a personal investment and a personal choice.  While buying a home may be the right decision for one investor, it may not be the right financial decision for another investor.  Some investors choose to buy several properties that provide them with regular revenue, while other investors prefer to buy only their primary family home.  For some investors a single family home may be the right purchase for them, and for other investors a condo may be the smarter financial decision.

Check out these posts that we found around the web that discuss everything about buying a home:

  • Money Crashers tells us How to Find a Great Real Estate Agent You Can Trust
  • Green Panda Tree House gives us 5 Steps to Buy a House Soon
  • DINKS discusses Working with a Real Estate Pro When Buying a Home with a post by our friend Laura Adams
  • The Financial Blogger offers an alternate opinion as he tells us Why Real Estate May Not Be The Greatest Investment
  • 50 Plus Finance gives us tips on How to Avoid The Dreaded 6% Real Estate Commission

Photo by Delta Mike

Savings Tips from FOX News

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saving tips, saving advice, money tips

Last Thursday night I was watching the 6:00 pm Fox News and I have to admit that they had some interesting savings tips that I wanted to share.

Savings Tip #1

Fox News said that if students want to save money after college it is definitely an acceptable practice to move back in with our parents after we graduate.  After my first year in university I took a year off and moved back in with my Dad in an effort to save money.  I worked two jobs for one and a half years, and I saved up enough money to move out on my own and not have to live pay check to pay check while attending university.

Fox News said that 85% of young adults move back in with their parents after college.  However, they also said that the option to move back home with our parents after college is not a standing order.  By 28 years old we should be on our own and out of our parent’s house permanently.  I moved out when I was 18 years old, I went back to my Dad’s house when I was 19, and I moved out again when I was 20 years old, I have been on my own ever since.

Savings Tip #2

Fox News suggests that we always save 10% of our pay check. Whether it is 10% of our gross pay check or net pay check is not important, what is important is the habit of always continuously saving. Saving at least 10% of our pay check is a habit that should be installed in our financial belief system at a very young age.  Parents should ensure that their children are always saving at least 10% of their pay check from their first job, their part time job, or their summer job.

This is a habit in which I usually disagree with because there is no point in saving if we aren’t paying our bills on time.  Very often is the case that people put money in their savings accounts and before they receive their next pay check the money is right back in their checking account. A good financial habit is to save a little more and spend a little less.

Fox News said that it is a good idea to save at least 10% of our pay check, regardless of our expenses, because we are always going to be paying off some form of debt.  Whether we are paying off our student loans, our mortgage, or making monthly payments on our credit cards, we are always paying off something.  Fox News said that we should always save 10% of our pay check because if we were waiting to have no expenses or monthly bills we would be waiting forever.

Fox News also stressed the importance of investing in our 401K. They also noted that we shouldn’t stress too much about the current expensive price of gas.  Fox News notes that gas prices should be lower by midsummer.  That is something I am sure we are all looking forward to!

Photo by Digital Primate

Do Your Parents Have a Mortgage?

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mortgage stories, parents with mortgage, mortgage advice

The days of couples retiring with a mortgage are a thing of the past.  Nowadays more and more of our parents are retiring with a mortgage on their home.  The days of getting a 30 year mortgage at the age of 25, and having it paid off by the time we retire at 55 is becoming less and less common.  The reason why our parents are so often retiring with a mortgage is because times change along with personal financial personalities, and individual financial habits.

The divorce rate is currently a lot higher now than it was years ago. Divorce is a more popular trend in this day and age, than it was when our parents were our age.  When people get divorced, one or both people in the couple need to move.  Sometimes they choose to rent, but sometimes they choose to buy another home.  This will create a new mortgage later on in their financial life.

My Dad and my (evil) step mother have a mortgage on their home; this is not because of my step mothers divorce, it is because of her bad financial habits.  In the last 9 years my step mother has changed financial institutions twice and paid a pre payment penalty on her mortgage, as well as refinanced three times to consolidate her debt, and pay off the debts of her 40 year old children.  This is an unfortunate financial habit because there is no equity left in their home.  Building equity is often the reason why people buy a home. When we buy a home we want to build equity and increase our profit upon the sale of our home.  No one wants to sell their home just to pay off their mortgage.

The only reason that I ever suggest for my clients to refinance their mortgage is to renovate or upgrade their home. Equity in our homes should only be used to finance improvements or repairs to our home.  It is also a good idea to refinance only when our mortgage is up for renewal, this avoids any additional pre payment penalties. The reason why the equity in our home should be used only to improve our home is because we will get our money back with the increase in the value of our home.

The equity in our home should not be used for the sole purpose of consolidating our consumer debts; even though the interest rates are lower on a mortgage than they are on our credit cards.  Paying off consumer debt does not increase the value of our home; it only creates a larger debt load.  A consolidation loan or a personal line of credit is a better option to help us pay off consumer debt.

It is ok to have a mortgage during retirement if our parent’s retirement income can support the mortgage payment.  Very often people plan for their retirement income to be 60% to 80% of their pre retirement income, depending on their retirement expenses.  Usually our retirement expenses are lower than our pre retirement expenses, but this is not always the case.

Photo by RKramer62

DINKS Reality: Flip This House

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flipping houses, pros of flipping houses, cons of flipping houses

damaged houseThe television channel A & E has a show called Flip This House which chronicles the experience of flipping houses for a profit.

There are four main families/couples on the television show Flip This House.  Armando is the cheap businessman from Texas, Brian and Peter are best friends from Atlanta, Than Merrill and Paul are best friends who flip houses with Paul’s older brother JD in Connecticut, and then there is Rudy in LA.

Rudy is my favourite personality on Flip This House.  He only flips high quality homes with several upgrades in various LA neighbourhoods.  The LA homes that Rudy flips are smaller than homes in other cities on Flip This House; this is why he focuses on upgrades and exterior living space.

The key to successfully flipping houses is to know your market. In Georgia Brian and Peter focus on the kitchen as a main selling point for Southern home cooking, and in Connecticut Than and Paul focus on having several bedrooms. Than and Paul focus on selling to new/young families; they like to have 1 bathroom for every 2 bedrooms in the houses that they flip.

Rudy in LA will go over schedule and over budget to make sure that his homes are worth the price and of the highest quality.  Most people who flip houses are in it for the money. They think about the bottom line, which is the total profit at the end of the flip.  Every day that flippers go over their schedule is another dollar that they go over budget.  However, how thin is the line between the bottom line and a good quality home?

In addition to the purchase price of the home and the cost of renovations, flippers must also factor in the additional holding costs such as utilities, interest on the loan, and the price of building permits.  Flipping houses is only one of Rudy’s jobs; he also owns some successful LA restaurants. Rudy focuses on the exterior living space for sunny California living.

Do any of our DINKS flip houses? If you do, would you sacrifice the quality of a home to make a larger profit?

In the last episode I watched Rudy buy a house for $270,000 and sold it for $417,500.  He was 4 months over schedule due to weather delays and home inspection permits.  But at the end of the day Rudy still made a profit; maybe not as big of a profit as he had planned, but nevertheless he still made a profit.

The selling tactic that sets Rudy apart from the other personalities on A&E’s Flip This House is the fact that he also acts as the Real Estate Agent.  Rudy sets up a potential buyer at the beginning of the flip and keeps them updated throughout the whole process.  This eliminates the possibility of not selling the house once it is finished and on the market.

Many long-term real estate agents get their real estate license online for more benefits. Having a license will allow you access to MLS without having to rely on other agents. Many investors realize that every time they sell a house through another agent, they are spending about 6% of the sale price in agent commissions. What they don’t realize is that when they buy property, their agent is also collecting up to 3% for facilitating the transaction. Being your own agent on deals could earn you lots of extra money. When you pursue your real estate education with stateCE, you will be able to work and learn at a time that is convenient for your schedule.

The Pros of Flipping Houses

  1. There is always a demand in the housing market, people are always moving and upgrading.
  2. There is a lot of money to be made in the business of flipping houses.
  3. No two days are ever the same.  No one who flips houses can say that they have a boring or repetitive job.

 

 

The Cons of Flipping Houses

  1. The house may not sell when finished which can lead to additional holding costs and interest payments.
  2. We have to rely on several different trade workers such as flooring experts, plumbers, as well as roofing specialists.  It can cause delays in our schedule depending on everyone’s availability.
  3. It may be difficult to get funding from banks on the properties.

If flipping houses was easy then everyone would do it; and if it wasn’t profitable then no one would do it.

Photo by Jramspott

Never Go To Bed Angry About Money!

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couples advice, couples tips, money and relationships

As DINKS we are all in a couple. It is said that the number one thing people argue about in their marriage is money.  I am here to say that ring or no ring, most couples whether they are married or not, argue about money. Most of the arguments that I have with my long time boyfriend Nick are about money or related to money.  We often argue about overspending as well as our different spending habits.  I enjoy travelling and Nick enjoys savings.  I enjoy going out and Nick enjoys staying home.  Nick enjoys attending live sporting events and I think it’s a waste of his money. However, he feels that spending $100 on LUSH cosmetics is a complete waste of my money.

We both love renting instead of buying a home or condo, but we disagree on our living location.  I enjoy paying expensive rent to live downtown and close to all amenities.  Nick feels that we could pay less rent and still live close to amenities in a neighbourhood outside of downtown.

If we moved away from downtown we would have to factor in the opportunity cost of added travel time to and from our offices, as well as the cost of a monthly public transportation pass.  Our lease is up in October and we have decided to renew for another year at our current apartment.  I say that we are renewing our apartment lease for another year instead of one more year because we have debated about leaving our expensive yet convenient apartment for the last 3 years.  However, we both hate moving.

What do you argue about in your DINKS couple?

MSN recently published an article titled The Top 10 Fights in Marriage.  Money was listed as number 10.  Keep reading to see if you argue about the same things as other couples.

The Fight about Replacing the Toilet Paper. I have to admit that there is nothing more frustrating than having to put the toilet seat down and replace the toilet paper every time I go to the bathroom.  I feel that my boyfriend doesn’t understand the expensive price of toilet paper, not to mention the hassle of carrying it home from the pharmacy.

The TV Time Fight. Nick and I actually have separate televisions, one in the living room and one in the bedroom.  We do have shows in common that we watch together, but having an extra television in the bedroom is definitely helpful.  I have a friend who would change the channel from NFL Football to Desperate Housewives every single Sunday night.  After two weeks of missing an hour of football every Sunday her husband bought her a brand new television. Remote control crisis converted.

The Vacation Planning Fight. I often travel with my family or friends because my boyfriend Nick does not share my passion for exploring new countries.

The Fight About Needing Some “Me Time”. I personally don’t think that couples should ever fight about needing some “me time”.  Just because we are married into a couple doesn’t mean that we stop being an individual.  Personal time is just as important as couples time.

The Fight Over Our Families. Deciding where to spend time during the holidays and other special occasions can be difficult when we are in a couple.  I believe that alternating is the best solution.

The Religion Fight. I believe that religious beliefs and traditional values are something that should be discussed prior to marriage, along with money values and views.

The “Work is Taking Over” Fight. A lot of couples also fight over time away from home and extra time spent at the office.  I know that a big part of my parents’ divorce was the fact that my Mother was putting in extra hours at the office while trying to advance her Upper Management Career and my Father disapproved.  The thing that couples have to remember is that our job is what brings in our money and pays our bills.

Photo by Alaskan Dude

Friday Roundup: The Open Road, Our Contest Winners, Osama Bin Laden, and Some Pasta.

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Happy Friday DINKS! Today for some light reading before we start our weekend we are going to discuss our many travels.  I absolutely love travelling to new places, learning about different cultures, and experiencing new things.

However, before we get started I would like to congratulate B. Myself and ib.  You are both winners of our Friday Giveaway Extravaganza. B. Myself you are the winner of $25 via PayPal and ib is the winner of a copy of the personal finance book The Wealthy Barber.  Please get in touch with us so we can send you the prizes.

As you may remember, I am a huge fan of Europe.  Every few years I plan to take a trip to Europe. In 2009 I went to Spain, and next summer I am planning to go to Italy.  Also on my list of European countries to visit are Portugal and Greece.

I usually choose by travel destinations based on personal preference. However, sometimes the currency conversion rate as well as the cost of living in particular countries influences my decision.  Travel time to the destination as well as safety and security for tourists are also both factors that I consider when choosing a travel destination.  The current conversion rate of US Dollars to Euros is 0.6787; this means that it will cost $1473.50 US Dollars to buy 1000 Euros.  This rate is a lot better than it was in September 2009 when I travelled to Spain.  However, who knows what the foreign exchange rate will be next summer when I go to Italy.

We haven’t decided yet where we are going stay in Italy.  This will depend on the cost of flights to different cities as well as hotels.  I am sure that whether we are in Rome, Venice, or Milan we will totally love Italy.  Does anyone have a favourite city or hotel in Italy?

Here are some other posts from around the web about personal experience while travelling:

  • Man vs. Debt talks about his RV adventure around American in his post 10 Truths I’ve Learned on the Open Road.
  • Blonde and Balanced discusses the details of her upcoming 3 week honeymoon in Mexico in her post Honeymoon is Booked! AKA Out of the Office for 3 Weeks!
  • Fabulously Broke travels a lot for work.  She discusses her favourite places to eat, shop, and stay while visiting various Canadian and American cities.  She also mentions some places to avoid. FB is planning a trip to Asia; I look forward to reading more about that.
  • Frugal Dad gives us ways to save money on our vacation in his post 7 Money Saving Vacation Websites (After You Purchase Your Tickets).
  • Green Panda Tree House offers tips to save money while on vacation in the post How to Budget for a Vacation.

Before we part our separate ways for the weekend, I want to take a quick minute to discuss the most recent world news that hit us last week.  It was reported that Osama Bin Laden was captured and killed by US Navy Seals. All I want to say is that if Osama Bin Laden was responsible for the attacks of September 11 then I believe that he got what he deserved.  However, the loss of one man’s life will not bring back the thousands of fathers, mothers, sons, and daughters, who lost their lives on the tragic day of September 11, 2001.

I found 2 interesting posts from other personal finance bloggers about the death of Osama Bin Laden. Please visit Financial Samurai and Man vs. Debt to read more.

Have a Great Weekend DINKS!

Photo by Beau Maes

Easy Meals and Recipes For Under $10

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easy meals, budget meals, frugal meals

One of our major monthly expenses may be Food. Whether we choose to eat out, order in, or cook at home, food and groceries can be a major monthly expense for many people.  I for one spend a lot of money on food eat month, mostly because I am a terrible cook and often eat out. I would love to learn to cook easy recipes and save money on my food budget. Today we are going to offer great tips and recipes to help cut down your food budget and save you money on your grocery bill.

I don’t mind paying for any meal under $10, but some DINKS feel that $10 is an outrageous price to pay for food.  I think it’s important for me to learn to cook to make sure I am eating healthy and getting all the right nutrients.  However, it is also important for me to learn to cook and save money in my monthly food budget.

Use Inexpensive Ingredients to Fill Up

Melissa d’Arabian is the winner of the reality show The Next Food Network Star; she currently hosts a show on The Food Network called Ten Dollar Dinners.  Melissa is a stay at home mother of 4 whose husband is from France.  This means that Melissa d’Arabian has to feed her family on a budget while respecting her husband’s French flair and love of great tasting food.  Melissa cooks meals that can feel a family of four on a $10 budget.  The key to cooking a big hearty meal on a little $10 budget is to use inexpensive filler foods such as zucchini.  Filler foods are not a main ingredient or flavour; they are used to make a meal heartier and heavier.

Ham is another inexpensive ingredient and it’s not just for sandwiches. Melissa d’Arabian uses Ham in pastas and salads.  She always keeps ham in her house because it’s versatile and inexpensive. Bread is another inexpensive ingredient that Melissa recommends for $10 cooking.  Bread can be used as an ingredient such as stuffing, a topping such as croutons, or an appetizer to accompany any meal such as garlic bread or bruschetta.

Melissa d’Arabian cooks everything from Chicken Dinners to Tossed Angel Hair Pasta and Fish Piccata for her $10 Dinners.  Visit The Food Network for great $10 dinner recipes from Melissa d’Arabian.

Eat Healthy and Cook for Several Days to Keep Costs Down

Rachael Ray is a household name for many people.  I absolutely adore Rachael Ray and I watch The Rachael Ray Show as often as I can.  Rachael Ray offers Budget Meals, Means for $10 and under, as well as a Week in a Day which allows us to cook food for the whole week while cooking for just one day.

Rachael Ray’s $10 and under meals can be found on her website. We can also sign up to have recipes delivered directly to our inbox.  Rachel Ray’s $10 and under meals will feed a family of 4.  As DINKS this means that we can eat for 2 days for only $10.

Rachael Ray’s $10 and under meals include Baby Spinach Salad with Mandarin Orange and Red Onions, Sicilian Eggplant Marinara Over Penne, as well as Root Vegetable Chowder.  $10 and under meals are both healthy and cost efficient.

Do you have a favorite inexpensive meal under $10?

Photo by Good n Crazy

 

May Love Drop: Let’s Show The Stalnaker Family Some Love

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Good Morning DINKS! It’s May and The Love Drop team is at it again! Last month Love Drop gave over $6,000 worth of cash and goods to the Kahlen family.  They have been going through financially hard times due to the economy; their daughter is also currently battling Tuberous Sclerosis. Love Drop focused on the Kahlen family’s love of spending time together, and brought them over 8 pairs of tickets to local events and attractions. It was definitely awesome! You can watch the Kahlen family Love Drop here.

This month Love Drop is supporting the Stalnakers.  They are a family who, along with thousands of others along the gulf coast, are still recovering from the effects and aftermath of the BP oil spill.  Love Drops goal this month is to get the Stalnaker family a reliable used car. Their car died a while ago and they have since been borrowing a car from a friend.  However, it’s getting harder and harder for the Stalnakers to manage their time while using a borrowed car. They’ve been giving back to their community for several years, and now it’s time for the Love Drop community to help them!

Here are three ways you can join Love Drop and help the Stalnaker Family:

  • Help them get a car! – Our #1 goal is to give them a reliable used car in decent working order. If you have any connections or discounts in the automobile industry please email Love Drop ASAP.
  • Give a Gift or Service – Gift cards for places like Target, Wal-mart, and family restaurants would definitely help them out. Services are great too. If you have a service to offer please let Love Drop know, everything from personal nutrition to personal finance is helpful.
  • Give $$$$ – This money will help get them back on their feet, and relieve some of their financial burden.  Every dollar counts!  Monthly contributions start at only $1.00.  Do you have $1 per month to spare?

Love Drop is trying to increase their giving capacity for each family every month and they need our help.  Love Drop is currently searching for local businesses that will make a regular contribution each month just as personal members do.

Most personal Love Drop members contribute $5-$20 per month, and they’re happy to pay that small amount to make a huge impact and see exactly where their money goes.

Love Drop wants to get in contact with small and medium sized businesses to see if they would be happy to contribute $50-$200 per month to be a continuous part of the Love Drop community. Businesses that join will get recognition on the Love Drop website.

Love Drop wants our help to get in touch with companies who have a strong involvement in community activities, or who just want to give back in general. If you own a business or if you know some business owners please talk to them about Love Drop.  Ask them to spend a dollar and change a life. Please send all information by email to Love Drop which includes the Company Name, Company Website, Contact Name and Title, along with the Contact Email Address.  Love Drop will contact them to discuss different contribution opportunities.

Thank you for your continuous help. Love Drop couldn’t give to families in need without help from the Love Drop community and its members.

 

DINKS Reality: Storage Wars on A&E

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storage center

“Price is Always the Issue.” Brandi Passante

About two weeks ago I came across a show on A & E called Storage Wars.  It is said that one man’s trash is another man’s treasure; or in the case of Storage Wars, one man’s repo is another man’s financial profit.  Storage Wars on A & E displays the business of buying and selling storage lockers after the owners have defaulted on payments, and the storage lockers have been repossessed.

There are four regular personalities on the show Storage Wars and they are all in the business of buying storage lockers for different reasons. However, they all bid against each other on the same abandoned storage lockers in hopes of finding some hidden profitable treasures.

The business of Storage Wars

Dave is the veteran of Storage Wars.  He owns a higher end Thrift Store in California that sells second hand jewellery, furs, and antiques. Dave’s business strategy on Storage Wars is to eliminate his competition by bidding on lockers that he doesn’t want just to increase the price for his competitors.

This makes other storage locker bidders spend their money quicker, which allows Dave to purchase his storage lockers at a lower price because his competitors have already spent all of their money.  Dave once bought a storage locker for $275, not because he wanted it, just because he didn’t want someone else to have it.  After rummaging through the contents of the storage locker he found a box full of precious rocks and sold them for $5000.

Darryl is also a veteran of Storage Wars; he is currently teaching the business of buying and selling storage lockers to his son. Storage Wars is about the win for Darryl; he is often in bidding wars with Dave, and as a result he often over pays for his storage lockers.

I don’t understand the financial side of continuous bidding.  If we only want to pay $500 for a storage locker, why would we continue bidding and overpay for something just to win the bidding war? If I was Darryl, I would let Dave continue bidding to raise the price of the storage locker. Then at one point I would stop bidding, this would leave Dave with an overpriced storage locker full of items that he didn’t want.  I would never overpay for something just to win a bidding war.  Every single dollar that the bidders on Storage Wars overpay for a storage locker is a dollar less of potential profit.

The important thing to remember about Storage Wars is that these men are blind bidding on abandoned storage lockers. They have 5 minutes to examine the contents of the storage locker from outside, and they aren’t able to touch anything. Sometimes they find hidden treasures, and sometimes they find boxes full of trash.  I saw an episode of Storage Wars when Dave paid $750 for a storage locker full of newspapers.  It turns out that the newspapers were from the week that Elvis Presley died and the ending up being worth $60,000 to $90,000 USD.

Jarrod Schultz and Brandi Passante are a young married couple who own a lower end thrift and second hand store. They look for storage lockers filled with everyday household items such as furniture, appliances, and home decorations. Jarrod and Brandi are the rookies of Storage Wars and it shows in their bidding style.

Brandi manages their business, and Jarrod is responsible for bidding on storage lockers and finding items to fill the shelves in their store.  They are in the storage locker business because that is what pays their bills.  Brandi accompanies Jarrod on the storage locker bidding wars because Jarrod tends to get carried away and spend their rent money on unprofitable storage lockers.  Brandi tags along and puts a bidding cap on each locker to make sure that Jarrod doesn’t overspend.  This is the number one rule of business, don’t expand too fast, and don’t spend money before we make money.

5 Valuable Financial Lessons Learned From Storage Wars

  1. Don’t Be Pressured into Buying Anything. Spending money we don’t want to or need to is a big financial mistake.
  2. It’s Ok to Make Mistakes as Long as We Learn from Them. Never make the same (financial) mistake twice.
  3. Always Go With Your Gut It, Can Be Rewarding. They told us this in school when we are writing tests, always go with your first instinct.  The same rule applies to our finances; if your gut tells you not to spend the money then don’t spend it.
  4. Know what you are Investing in before you Spend Money. These guys have to know about everything.  I watched 4 episodes and saw everything from patio furniture to Levis jeans and old antique telephones to flare guns.
  5. It’s Smart to be Competitive but not Aggressive. Being too aggressive can be costly.  It’s good for business to have a healthy competition but we have to be inancially smart. Remember, it’s always about the bottom line. At the end of the day, the profit has to be more than the cost.

Photo by Pink Moose

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