Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.

I hope everybody had a wonderful week. And with that, let’s get right to this week’s commentary, shall we?

Financial crises are like fireworks: They illuminate the sky even as they go pop.

– James Buchan 

Credits and Debits

Credit: Did you see this? Let’s start with some good-news-bad-news this week. First the good news: Roughly 1 in 9 American adults have a net worth of at least $1 million. Now the bad: A $1 million net worth doesn’t go very far these days in retirement – especially if most of that million bucks is tied up in home equity.

Credit: Of course, the so-called “magic number” for retirement varies from individual to individual. But one study from last year found that Americans believe it takes a net worth of $2.3 million makes you officially “rich.” We agree that number should be more than enough for retirees in most parts of the US – although for most people that probably isn’t enough for a perfectly happy retirement in places like the Northeast or West Coast. Besides, depending on who you ask, everything is relative… especially when you consider that wealth can be fleeting…

Credit: Speaking of happiness, the amount of money it takes to keep us in high spirits varies, too. In fact, yet another study has determined that although happiness increases for most people as their income increases, it plateaus once they reach $100,000 per year. The take-away here is that being happy is an easier goal to obtain than being rich – especially for those whose age is somewhere in the vicinity of their shoe size.

Credit: With that in mind, saving for retirement is more important than ever. And it’s a generally-accepted fact that women display better savings habits than men. But while women tend to save more of their paycheck for retirement than men, a recent study of 5 million retirement accounts shows that they still trail them in 401(k) account values. The average 401(k) balance among men in 2025 was $194,597, compared with $146,476 for women. For what that’s worth. As for elsewhere in the battle of the sexes…

Debit: Then again, many Americans are having trouble living on their own, let alone saving for retirement. As of last year, more than 25 million adult Americans under 35 lived with a parent. For those of you not counting at home, that means roughly one in three people in that age group have yet to leave the nest. Yikes! And, no… it wasn’t specified how many of those adult children slept in their parents’ basement. Er… assuming they’re even allowed in the basement…

Credit: In other news, we see that Elon Musk recently became the world’s first trillionaire. Put another way: Elon is now a billionaire 1000 over, and a millionaire one million times over. Yeah… that’s undeniably wealthy by any measuring stick. Now here are a few more fast facts: Musk became a millionaire at age 27, a billionaire at 41, and a trillionaire at 54. Oh… and then there’s this:

Debit: On a related note, the Federal Reserve Bank of Atlanta’s GDPNow model currently estimates the US real gross domestic product (GDP) growth for the second quarter of this year at a 3.3% annualized rate. And while that may seem impressive, things don’t look quite so rosy when measuring America’s GDP in terms of gold instead of the US dollar (USD). See for yourself:

(h/t: @gloeschi)

Debit: By the way, with the National Debt is careening towards $40 trillion, the CBO is projecting that the US deficit will finish the current year – which ends on September 30th – at nearly $2.3 trillion. And yet nobody in Washington seems alarmed. Unlike these guys…

Debit: At today’s market price of roughly $4350, the US gold reserve is worth $1.2 trillion. Now for the punchline: The federal government spends $1.2 trillion every two months. That also means gold would need to be about $87,200 to fully back the M2 money supply. And it would take $150,000 to cover the National Debt. Unfortunately, after decades of gross mismanagement, the Fed has steered the economy and the financial system into a cul-de-sac. So the choice remains the same: Keep printing and accelerating inflation, or stop and watch the markets fall apart. Then again, that decision is among the worst-kept secrets ever …

Credit: Needless to say, at this point it’s important that we all get one thing perfectly clear: Silver and gold have always been a long-term storage of wealth – that is, wealth insurance as opposed to an investment, regardless of how they both perform over the shorter term.

By the Numbers

With the United States’ 250th birthday quickly approaching, Americans are gearing up to celebrate America’s semiquincentennial in patriotic style, with parties, picnics and professional performances. With that in mind, a recent study revealed the ten states that spent the most per capita last year on fireworks. Can you guess the two states that spent far more per person on pyrotechnics than all the others?

$2.89 Indiana

$2.92 North Dakota

$3.46 Montana

$3.91 Wyoming

$4.21 Ohio

$4.69 Nebraska

$5.34 Alabama

$5.49 Kansas

$11.60 Missouri

$12.29 South Dakota

Source: Facebook

Last Week’s Poll Results

More than 2100 Len Penzo dot Com readers responded to last week’s question and it turns out that nearly 60 of them claim to have been fortunate enough to win more a prize valued at more than $5000. Wow! Frankly, I find that a bit hard to believe – especially since there were slightly more respondents who claimed to have won a prize valued at more than $1000 than those who claimed to have never won anything at all. But, hey… what do I know? These polls are not scientific, after all. And maybe I’m just extremely unlucky when it comes to contests.

Last week’s question was submitted by reader Frank. If you have a question you’d like me to ask the readers here, send it to me at Len@LenPenzo.com and be sure to put “Question of the Week” in the subject line.

The Question of the Week

Useless News: True Story

When asked for his name by the coffee shop barista, my brother-in-law answered: “Marc; with a C.”

A few minutes later, he was handed his coffee with his name written on the side: Cark.

(h/t: Paul Neelon via rd.com)

Squirrel Cam

When the squirrels (and my dog) are away, the bunnies will play. This is a (very) up-close view of a desert cottontail…

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More Useless News

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Letters, I Get Letters

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach out to me at: Len@LenPenzo.com

This week’s note is an e-mail message from Sandy:

I’m going to try a test. Do you think this is good enough to get air time in Black Coffee?

Not a chance, Sandy.

If you enjoyed this edition of Black Coffee and found it to be informative, please forward it to your friends and family. Thank you!

I’m Len Penzo and I approved this message.

Photo Credit: public domain

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Shareholders get respect, employees don’t. Companies aim to impress shareholders and Wall Street. Employees not so much. Employers pay their workers as little as possible. And they lay off their employees to benefit the company’s bottom line. Employees deal with workplace stress such as toxic managers, discrimination, and unpaid overtime.

However, being a shareholder is like living in a whole different dimension. In terms of connection, it’s as detached as it gets. As far as I’m concerned, that’s a good thing. When you’re a shareholder, you don’t have to be in a good mood, be energetic, or be the life of the party. When you’re a shareholder, you don’t have to worry about being a man or a woman. You don’t have to worry about being too short or too tall.

Basically, being a shareholder is a generic state that takes subjectivity out of the equation. Judgment doesn’t exist. When the corporation pays a dividend, everyone gets paid, not just the boss’ pet. When the stock price grows, it grows for all shareholders and everyone gets rich. There is no getting passed over.

You might say, “Stocks go down,” or, “I don’t play the stock market.” Anything can happen, it’s true. But it’s a safe bet that AT&T is going nowhere. Proctor & Gamble and Johnson & Johnson are here to stay.

I paid off my second car with GE stock. When I saw that sucker drop to $6 in 2009, I bought 1000 shares the next day. That helped me pay off a big chunk of a car loan amidst the economic uncertainty. The market can go up or down, but the resources of these giant companies don’t disappear because of some temporary influence that jolts the stock market. (Hint: Those are occasions to buy more.)

Most of us are employees right now. One of my goals is to transition from an employee to a shareholder. Because I’m only one person, I can only take myself to work and earn one paycheck. But by converting my W-2 income to shares of stock, it’s my way of having others work for me. Those shares act like worker bees and I’m able to exponentially leverage others’ skills.

Becoming a shareholder allows me to tap into the profitability of industries for which I have zero expertise. I don’t know anything about the construction industry. Hell, I’m a 5-foot woman — it wouldn’t be good for my nails. But the brawny men who are made for that line of work enjoy getting up every morning to play with heavy equipment. By investing in a construction company, I stand to gain from the earnings and growth potential of that enterprise without getting my hands dirty.

I look around at all the nicely-designed stores and new buildings. I can get a piece of that rental income by investing in a REIT. REIT stands for Real Estate Investment Trust. One of my best investments was buying several hundred REIT shares in 2005. Not only has it grown multi-fold since then, but the dividends still buy me a few shares each month. That’s from doing nothing. I’m riding the gravy train on dividend reinvestment compounding. Even better: it’s in my IRA where I don’t pay current tax on the dividends.

I also think of stock ownership as owning my own business but without the stress of the day-to-day management. The enterprises’ managers and employees worry about the mundane operations. Plus, I’m not risking my life savings or personal assets, other than my investment.

I can’t know every industry, but if I spread my money into buying shares of each industry’s leading companies, I’m now promoting their success as well as my own. I’ve taken a very aggressive stance on the switch. Every payday, I commit a minimum of $500 into an investment. If you’re an employee that loves your job, that’s great, but I think that’s the exception. Based on my experiences, employees are truly short-changed and don’t get enough respect.

I feel it’s time to regain my integrity.

***

About the Author: Dora DeLellis is a CPA and CFP. Dora is the author of How Ally Found Her Financial Freedom and Jake’s Financial Transformation.

Photo Credit: Arch_Sam

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Water-Efficient Shower Head

People often think of water-saving shower heads as inconvenient since some of them don’t have good water pressure. Business Insider recommends a model from Niagara Earth that uses 75% less water than traditional models and is available for purchase on Amazon for a song. But regardless of which model you buy, investing in a “low-flow” shower head will reduce your utility bills.

Solar Powered/LED Outdoor Lights

While solar products require an initial investment, they’re unique in that they never need new bulbs or batteries. Some LEDs now have long enough lifespans to be almost as convenient. When the correct driver is installed and proper thermal control is maintained (which can be avoided by using a LED specific Dimming Driver or a heat sink), LED lamp life can easily achieve 80,000+ hours of usage while still maintaining 70% of the original light output.

“Once you start using solar power to make your home more energy-efficient, you’ll likely wonder why you haven’t been doing this for the outdoors (where the sun is most abundant) for as long as you possibly could have,” writes Mara Leighton of Business Insider.

Programmable Thermostat

Those who are truly interested in saving money on energy-efficiency projects should turn to their HVAC system and home’s air flow. In the average home, 38% of heat loss is through windows and doors. And since airflow problems alone can reduce your HVAC system’s efficiency by up to 15%, you’d be surprised at how much you can save over the long term by investing in new windows or doors.

If you’re in need of a quick fix, however, a programmable thermostat is the way to go. It allows users to set the temperature on a timer. As a result, their home doesn’t have to stay heated or cooled when they leave. Many models now offer smartphone capabilities. So you can even set your heat or air conditioning to turn on 15 minutes before you arrive home. This type of technology saves money on utility bills. It also prevents over-usage, and the reduced wear and tear on your furnace is worth every penny.

“Since your thermostat controls half your energy bill it’s a great place to focus your attention. Especially if you want to cut down on use and costs,” writes Leighton.

The Bottom Line

Ultimately, it’s important to do your research before investing in eco-friendly products and appliances. Make sure to look for Energy Star ratings, check reviews, and consult the owner’s manual to assure that you’re using the item properly and are getting all of its energy-efficient benefits. There’s also a convenient energy-efficiency calculator that can help you determine how much energy and money you’re really saving. But making the time and effort to invest in eco-friendly products is an investment into our Mother Earth.

Photo Credit: public domain

The post 3 Eco-Friendly Home Improvements That Will Actually Save You Money appeared first on Len Penzo dot Com.

Then I married my Prince Charming. He didn’t make much money, but we shared the same values, including those regarding personal finance; prior to meeting him I built up an 18-month emergency fund that exceeded $50,000.

Life was good — until that fateful day when the world was turned upside down: My prince ran off with the pot of gold.

One day I was happily married and on a solid financial footing. The next day, my spouse drained our bank accounts and I was alone and near broke — just 23 months into my marriage.

I was 48 years old.

At the time, I was making about $106,000 annually. He was making $23,000.

The damage was devastating; he left me nearly penniless.

Before skipping out he drained the entire emergency fund, plus the checking account — including my most recent paycheck — and all of the money that was going to be used to pay the mortgage. Unfortunately, only my name was on the loan — even though his name was on the title, due to a quirk in the refinance process.

Adding insult to injury, I had put money into his Roth IRA, covered his life and dental insurance, paid for his messed-up teeth, fixed his truck, paid off his back child support and retired his tax obligations. After all, he was my husband; I trusted him.

The first issue I had to deal with was how to cash-flow this disaster. I was fortunate that my house was full of food when he left. Thankfully, he also skipped out early in a month that I received three paychecks. Otherwise, I would have had a tough time covering the mortgage.

After my next paycheck arrived, I was able to pay the utility bills and my car insurance.

The third check paid the lawyers.

Thereafter, I lived close to the bone. My lawyer fees ultimately came to about $9000.

When something like this happens, there are two sides to the coin: emotional and financial. Any divorce attorney will tell you that everything becomes about the money — and that’s exactly what happened.

If you ever have the same misfortune, your losses will be determined by your state of residence.

Thankfully, there are things you can do to protect yourself before, during and after such a crisis.

Before the Crisis

Get and stay organized. Have your financial documents in a safe place. Some of my critical documents mysteriously disappeared — so make copies that only you know about. Be prepared to prove what you had before the marriage with respect to: savings, checking, and retirement accounts, and how much you owed on your house, if applicable. That info will save thousands in attorney fees.

Be alert. If your gut tells you something is wrong, then something is probably wrong.

Cultivate good friends. Establish a tight circle.

During the Crisis

Don’t try to figure out the emotional side. Sane people can’t figure out crazy and selfish people!

Assemble a “Ninja Squad.” For me that included:

• A bulldog lawyer who set expectations for a realistic outcome.
• An old friend who knew me well and wasn’t afraid to speak the truth.
• A physically strong friend to act as a second set of hands. And I mean a friend, not the kind with “benefits” — which could hurt my divorce case.
• Someone willing to listen to me rant without judgment.
• A caring doctor.
• A therapist! Remember that grieving is normal.

Take care of yourself. If you have trouble sleeping, see your doctor; stressful situations are worse without adequate sleep. And don’t forget to eat. Sometimes I went three days between meals.

Be prepared for the opposition. Don’t expect any cooperation to help reduce costs — he ran off with your life savings and will protect his theft at all costs. Don’t get angry. Stay logical. Don’t be surprised if his lawyer’s accusations are unfounded. Take solace in your lawyer’s competency and the unbridled fact that judges have seen this many times.

Change passwords. Immediately. For every account.

Avoid social media. Don’t put any ammunition in his guns — he’ll shoot you with it.

Stick to your budget. Keep everything paid to the best of your ability.

Prepare to lose some mutual friends. The ones you lose were never real friends anyway.

Don’t expect support from relatives. If you do, then you’re one lucky person!

Consider informing your boss. If your boss is the type you can tell, do it — but keep out the details. A brief high-level talk is all that’s necessary.

Don’t hope for reconciliation. He’s not coming back. He used you and thinks you’re a fool. The sooner you realize this the better.

After the Crisis

Count your blessings. Focus on the blessings — not your failures. Like all things, this will pass.

Try again. I find consolation in the phrase: “Better to have loved and lost than to have never loved at all.” Although my next partner will have a similar income and net worth to me — or better.

Epilogue

I’m fine now. I’ve remained debt free, except for the mortgage — and I’m still doing the same thing I did back when I built my original pot of gold: working hard, living close to the bone and running a tight budget.

Ten months after my nightmare unfolded, I was able to rebuild my emergency fund and pay the divorce lawyer, while keeping food on the table and paying all of the other bills on time. Sadly, I was unable to invest for my retirement during that period — but to tell you the truth, I was glad to be rid of my ex-husband!

One last note: Life smiled on me two months after we split with a new job and a $27,000 per year raise!

Life is good and getting better. Every day.

Photo Credit: Above Top Secret

The post True Story: My Spouse Skipped Town and Left Me Penniless! appeared first on Len Penzo dot Com.

Nix the Takeout

Life is busy; so, for many singles and couples, eating takeout is almost a given. And if you have children who take part in extracurricular activities, eating out often seems like a necessity.

One 30-something estimated she are her fiance were spending far too much on meals several times a week. On top of that, they were wasting even more cash every weekday on lunch. However, when she planned out her meals and prepped them for the week, she saved more than $100 – every week.

The takeaway: Establish a monthly restaurant budget and, once it’s gone, stop eating out.

Plan Your Meals

Once you decide to cut out all the takeout and late-night pizzas, it’s time to figure out your meals for the coming week. Planning ahead saves you time and money; it also helps limit your restaurant bills.

Think about your favorite foods and how they relate to one another. For example, consider having a chicken week where you make chicken in a variety of ways. You can then use those leftovers for salads. This will allow you to buy in bulk and save even more.

Stock Up During Sales

Grocery stores have sales cycles where they offer different items at a discount at different times. They also have loss leaders, which are amazingly cheap deals meant to get people in their store. For example, supermarkets usually offer turkeys at ridiculously cheap prices during the holidays, hoping that shoppers will buy enough regular-priced items to make up for it. Not you, though; you’re smarter than that.

With that in mind, if you know that chicken goes on sale every first Sunday at your local grocer, you can save a significant sum of cash by purchasing enough chicken to last the entire month. And by Using coupons and rebate apps for items you’d buy anyway, you’ll save even more.

Utilize a Food Prep Day

Set aside a day you use for food prep. Even if you simply start by taking your lunch to work, use a day to prepare those meals and separate them into grab-and-go containers. Food-prep containers are available at Groupon or Amazon that are perfect for this purpose.

Many people come to love cooking on one day and then reheating throughout the week — just keep in mind that some items will not keep all week long. For example, you shouldn’t eat chicken that’s been refrigerated longer than three days. So, if you cook chicken on Sunday and want to eat it through Friday, you’ll have to freeze some and thaw it midweek.

If you’ve planned your meals, then you probably already have similar meals grouped together, so you may only need to cook chicken, rice and some veggies on meal-prep day. Then, put together salads as a side dish, and heat and eat throughout the week.

Plan Ahead

Having simple foods on hand will allow you to eat at home even on the busiest of days; some even help you reduce the $1600 in wasted food a family of four averages each year. For example, when you cook a meal and have leftovers, you can freeze them for use later as lunch or individual meals, or you can cook double and freeze a complete meal.

Your slow cooker is your best friend for those days packed with activities. Simply put your meal in the crock pot and go to work or activities. When you return home, enjoy the delicious smell of your meal, which will be ready to eat at your leisure. Even better, slow cookers tend to make meats more tender — even the cheapest cuts! You can also use more than one slow cooker and have the side in one and the meat in another.

Try creating a variety of freezer meals that you can toss in the oven. Many people invite friends and family over to create batches of meals that they swap with one another.

You can easily save money on groceries. Just be sure to plan your meals around what’s on sale.  Then stock up when prices are at their lowest. Doing so will provide more options so you eat out less. In fact, meal planning is a smart budgeting move for everyone from singles to families.

Photo Credit: Jay Phagan

The post 5 Ways You Can Save Money on Groceries This Week appeared first on Len Penzo dot Com.

Of course, that got me thinking. If I were to write my own version of The Anarchist Cookbook that focused on dubious ideas designed to — if you’ll pardon the expression — blow-up my personal finances, what recipes for disaster would I include?

Well… here are a few financial Molotov cocktails for your consideration:

Co-signing a loan

Talk about a bad idea. When lenders ask for a co-signer, they are essentially saying they don’t believe the borrower will ever repay the loan. If you agree to co-sign a loan, you will be fully liable for the full amount of the loan should the borrower flake out — and the odds are, he will. Before you sign on the dotted line, ask yourself this: Is it really worth putting your financial future in the hands of someone who is a poor credit risk?

Delaying retirement savings contributions

Compound growth is an ally of the young. Here’s why: If you start saving $200 a month at age 24 and earn 5% annually — (I know, but just play along) — you’ll have $323,000 when you’re 65. However, if you delay your contributions until you reach age 50, then you’ll have to save $1210 every month for 15 years with the same returns to end up in the same position. Good luck with that.

Borrowing from your 401(k) retirement plan

Yes, you pay yourself back with interest. And, yes, the loan itself isn’t taxed. However, assuming you actually use the loan to pay for something else, you’ll repay the loan with money that is taxed. Then, when you finally make a 401(k) withdrawal in retirement, you will again have to pay taxes again. So, in essence, your loan eventually ends up being double taxed. Not very smart.

Using credit card cash advance checks 

Oh sure, it may seem like a great idea at the time. But savvy consumers know better. Those checks come with the same fees and exorbitant annual triple-digit interest rates as payday loans. Not only that, but unlike the float typically offered on credit card purchases, there is no grace period. So interest begins accruing from the day that cash advance is taken.

Overpaying for a college education

Nothing says “financial albatross” like having a massive college loan — with no prospect of ever finding a well-paying job. In fact, for most people, college is a really poor investment today. And if you insist on going to a university, please select a science, technical, engineering or math degree that are always in demand by employers.

Paying for your kids’ education with your retirement funds

Speaking of college, saving for retirement is arguably the most critical financial task we have as adults. So why do so many parents risk sacrificing their golden years by paying for their kids’ college education? Instead, parents should use that money to ensure their financial security in retirement. Remember, our kids will have four full decades to pay off those low interest loans after graduating. The same can’t be said for us parents.

Investing before doing your own research

There is an old saying that says the less you understand about a stock or financial instrument like a variable annuity or equity indexed annuity, the more it’s going to cost you. It’s true. Relying solely on a broker who gets paid a commission when you buy is asking for big trouble.

Marrying before determining financial compatibility

Sure, you can stick your head in the sand and naively assume marriage is a sacrosanct declaration of love and fidelity. However, marriage has real and serious financial impacts that could cost hundreds of thousands of dollars down the road for incompatible couples who end up filing for divorce. The truth is, financial compatibility is as important as emotional and physical compatibility. In fact, it is one of the greatest predictors of whether your relationship will survive long term.

Using your credit card when you’re broke

When used responsibly, credit cards are a consumer’s best friend. However, they should only be used if the balance can be fully paid off before the interest-free grace period expires. Otherwise, you’ll not only subject yourself to interest charges approaching 30% that make it exceedingly difficult to pay off your debt, but you also risk wreaking havoc on your credit rating if you start missing payments.

There. Next time you’re looking to throw a few wrenches into your personal finances, feel free to use the recipes from this cookbook. I promise you’ll discover why anarchy, by definition, doesn’t rule.

Photo Credit: Jonas B

The post Power to the Pinched! The Personal Finance Anarchist Cookbook appeared first on Len Penzo dot Com.

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.

I hope everybody had a wonderful week. And with that, let’s get right to this week’s commentary, shall we?

Money may not buy love, but fighting about it will bankrupt your relationship.

— Michelle Singletary

Credits and Debits

Debit: Did you see this? The US Bureau of Labor Statistics (BLS) says that just 66% of men age 20 and older are currently employed or actively seeking work. That figure has dropped sharply from 73% in 2006 and now sits near levels last seen during the fallout from the 2008 financial crisis. For those not crunching the numbers at home, that means 1 in 3 American men are no longer in the workforce. Yikes. Let’s just hope there’s a really good reason for this. Or not.

Debit: Meanwhile, Exxon Senior Vice President, Neil Chapman, offered more bad news last week when he warned that potential fuel shortages are on the horizon because “commercial inventories of crude oil, gasoline, diesel, and jet fuel have all been run down” at an alarming pace during the past 100 days. As a result, he says, “we’re approaching unheard of low inventory levels.” Now for the punchline: Mr. Chapman says there is an unknown trigger point where inventories will be so low that oil prices will immediately surge roughly 50% from their current levels. Well… if that’s so, it should preclude any fuel shortages. Er, as long as there are no market shenanigans to cap the price.

Credit: So far, Wall Street doesn’t seem to be worried about any kind of supply chain issues, as the major stock indecies continue to flirt with new all-time highs on an almost weekly basis. On the other hand, just 12 US companies have a market value of at least $1 trillion and combined a market cap of $29 trillion – seven short years ago the combined market cap was just $5 trillion. As a result, those 12 US companies make up almost 43% of the total market capitalization of all 500 stocks in the S&P500 index. Or, to put it another way: The other 488 stocks make up just 57% of the S&P’s total value. Nope; no sign of an unhealthy market there. Or here:

h/t: @CharlieBilello

Debit: Meanwhile, back in the world of cryptocurrencies, the price of bitcoin closed the week at $63,800, which is down a jaw-dropping 49% since reaching its all-time high of $126,000 late last year. Hey… we’re not sayin’! We’re just sayin’. And apparently, we’re not the only ones…

Debit: In other news, inflation concerns have revealed yet another surprising statistic: The average “all-in” spend for a date in America — including pre-date grooming, gas money, and the cost of the date itself — has climbed to $189, up 12.5% from last year. This so-called “date-flation” has far outpaced the 2.7% inflation rate over the same period. At $252, millennials reported the highest average cost per date, followed by Gen Z ($205), Gen X ($173) and the boomers ($126). Obviously, the latter generation was assisted by the Denny’s Senior Citizens’ menu and other discount offers for folks in their golden years. As for the younger dating crowd, well…

Gary Larson – The Far Side

Debit: Speaking of inflation, the US government’s highly-manipulated Consumer Price Index (CPI) increased to 3.8% year-over-year, which continues to track well with the price inflation waves of the 1970s that occurred after the US dollar’s (USD) anchor to gold was officially broken and the Fed was forced to run protracted loose money policy in order to support its newly-established fiat currency. In fact, even the intentionally-understated CPI has “officially” increased almost 30% since the pandemic – which means actual inflation has been running far hotter than that over the past six years.

Credit: As macro analyst David Jensen points out, “The Fed claims that price inflation is caused by shortages. But if that is the case, after shortages during the 2020 to 2022 period abated, why didn’t prices return to the pre-2020 level?” Of course, that’s a rhetorical question, folks. The Fed either: A) knows their explanation is a lie; B) is staffed by the world’s dumbest bunch of economists with PhDs; or C) both A & B. As for the answer, it’s probably a safe bet that this guy knows…

Debit: Of course, the real cause of price inflation is expansion of the currency supply – and, at nearly $40-trillion, the rapidly-growing US National Debt belies that fact. As does the corresponding loss of USD purchasing power that comes with it. And we all know what they means: We’re all going to need a bigger spending jar…

Credit: Needless to say, the world is well aware of America’s disintegrating financial condition too, which is why gold has overtaken US Treasury (UST) bonds, notes and bills as the top reserve asset following years of relentless buying by central banks. In fact, bullion now accounts for more than 27% of all central bank reserve assets – that’s up from 20% in 2024 – while USTs fell to 22% from 25% over the same period. Imagine that.

Credit: We’ll end this week’s round-up with a reminder from sagacious macro-analyst Franklin Sanders, who points out that, “unlike USDs, bank certificate of deposits, notes, bonds or a share of stock, gold and silver are money outside the financial system; valuable for what they are and are the only financial assets without counterparty risk.” For everything else, “some counterparty must make good when it’s time to pay – and if the counterparty defaults, your wealth vanishes.” Absolutely! That fact alone should keep anyone who doesn’t own any precious metals awake at night. It really should.

By the Numbers

With 20% of new businesses failing within the first year, it’s important for entrepreneurs to find a place where their startup can not only survive but thrive. A recent study determined the most business-friendly small markets in the US by comparing more than 1300 cities with fewer than 100,000 residents across 18 key metrics. The data set ranges from small business growth rates and the accessibility of financing to investor access and labor costs. With that in mind, here are the best small cities in America for entrepreneurs:

10 Dover, DE

9 Ocala, FL

8 Cheyenne, WY

7 Boca Raton, FL

6 Cedar City, UT

5 Greenville, SC

4 Bozeman, MT

3 Washington, UT

2 Fort Myers, FL

1 St. George, UT

Source: Wallet Hub

Last Week’s Poll Results

Has your net worth ever gone negative (after starting a career)?

• No   76%
• Yes   24%

More than 2300 Len Penzo dot Com readers responded to last week’s question and it turns out that nearly 1 in 4 of you have seen your net worth dip into red figures at some point during your lives. This happened to me back in the early ’90s during the height of the Southern California real estate bust, thanks to my perfect timing and buying at the very top of the housing market shortly after starting my career as an engineer. It took me several years to finally climb out of that hole.

Last week’s question was submitted by reader Frank. If you have a question you’d like me to ask the readers here, send it to me at Len@LenPenzo.com and be sure to put “Question of the Week” in the subject line.

The Question of the Week

Useless News: The Silent War

A man and his wife were having some domestic problems one particular Friday and found themselves giving each other the silent treatment. In fact, both spouses didn’t utter a single word to each other through the entire weekend.

On Sunday afternoon, the man — who was an incredibly deep sleeper — realized that he was going to need his wife to wake him at 5:00 AM on Monday for an early morning business flight.

So, not wanting to be the first to break the silence (and lose to his wife), the man wrote on a piece of paper, “Please wake me at 5:00 AM.”

He then left the note in a place where he was absolutely certain his wife would find it.

The next morning the man woke up — only to discover that it was 9:00 AM and he had missed his flight.

Furious, the husband was determined to find his wife and find out why she didn’t get him out of bed as he requested.

Then he noticed a piece of paper on the nightstand.

It said: “Wake up. It’s 5:00 AM.”

(h/t: Cowpoke)

Squirrel Cam

Hey… even squirrels occasionally enjoy a little lunch with their friends…

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Buy Me a Coffee? Thank You!

For the best reading experience, I present all of my fresh Black Coffee posts without ads. If you enjoyed this week’s column, buy me a coffee! (Dunkin’ Donuts; not Starbucks.) Thank you so much!

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More Useless News

Hey, while you’re here, please don’t forget to:

1. Subscribe to my weekly Len Penzo dot Com Newsletter!

2. Make sure you follow me on follow me on X. And last, but not least…

3. Please support this website by purchasing my book! Thank you!!!!

Letters, I Get Letters

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach out to me at: Len@LenPenzo.com

Here’s a question I got from Brandon:

Hi, Len! What’s it take to become a sulbmie [sic] expounder of prose like yourself?

Practice, Brandon. Lots and lots of practice.

If you enjoyed this edition of Black Coffee and found it to be informative, please forward it to your friends and family. Thank you!

I’m Len Penzo and I approved this message.

Photo Credit: public domain

The post Black Coffee: Swiping Left on the Economy appeared first on Len Penzo dot Com.

“It’s hard to make money in real estate. I can’t do it.”

Of course you can. Real estate, whether raw land or fully improved buildings, obviously has a function and will continue to. Real estate, in and of itself, is not subject to obsolescence. You know, like ambergris or Pets.com stock.

As long as people enjoy living, working and shopping on the earth’s surface, real estate in general will remain a handsome investment for somebody — regardless of whether the market is up or down. At least until we figure out levitation, which could be months away.

But public perception clouds everything. One staple of the local news in the past has been the sympathetic journalist interviewing the poor unfortunate who ended up in foreclosure, because he was mystified that adjustable-rate mortgages and fixed-rate mortgages are different things. So the population at large is now convinced that behind every real estate investment is an unscrupulous lender just waiting to take some nitroglycerin and a match to your life’s savings.

Two things:

1. Read the contract. There’s a reason why although millions of mortgage holders owe more money on their houses than they’re worth, no lender has yet been forced to offer restitution to a gullible homeowner: because mortgage contracts are airtight. Instead, to appease an angry and idiotic public the government has taken to making changes by fiat.
2. If that’s how you feel, why not be on the other side of the transaction?

Yeah, me. A real estate baron. Okay.

REIT Investing 101

That’s exactly what we’re talking about. Via a handy creation called a Real Estate Investment Trust (the acronym, REIT, is pronounced “reet”).

It operates on the same principle as a mutual fund a fund manager creates an investment out of disparate pieces of other, more basic investments. In the case of a mutual fund, that means companies’ stocks, accumulated in differing proportions and sold to you and me in easily digestible chunks costing as little as $250. In the case of a REIT, a fund manager puts together real estate investments and lets you buy in.

This is not some new development. REITs have been around for more than 50 years. If you have a 401(k), there’s a 4-to-1 chance that you’re investing in one right now and don’t even realize it. (Wait, you mean you’re one of the people who actually does research to determine what’s in his 401(k)? Congratulations. Gold star for you.)

So with a REIT, I’m buying little pieces of all my neighbors’ houses?

Doubtful. Not quite. Particular REITs specialize in different market segments. For instance, some focus on industrial sites only — factories, warehouses and their ilk. Others invest solely in what are euphemistically called “entry-level” homes — mobile homes and starter apartment complexes. Some REITs even concentrate in market segments as arcane as storage facilities or medical buildings. (I’d link to examples of each one, but that means I’d run the risk of one of you investing his entire net worth in a particular REIT, losing every penny, then suing Len and me for making the hyperlink so tempting and easy to click on. It’s much easier to paint that scenario than to write an appropriately worded disclaimer.)

More on REITs

REITs even trade publicly, just like the mutual fund that comprises your 401(k) probably does. But unlike stocks and mutual funds, of which there are myriads upon myriads, REITs are less plentiful. Only about 200 REITs trade on the NYSE and NASDAQ boards, making REITs fairly easy to keep track of. There they are, on the ticker, right next to the ordinary stock quotes and index figures. There are a few private REITs as well, but they’re only for the extremely wealthy and the connected. Let’s just say that the people who buy into them aren’t reading about them here.

You know what a dividend is, right? An annual, quarterly, or — in rare cases — monthly cash payment that a company makes to its stockholders, just for owning the stock. Managers do this to make the stock more attractive compared to other stocks you might be thinking about buying: you can think of the dividend as just a consistent discount on the price of the stock.

Well, not only do many REITs offer dividends, the ones that do offer dividend yields about quadruple those of stocks. When you buy a REIT, ideally you’re more interested in receiving regular income payments than in watching your stock appreciate so much that you can cash out and spend the rest of your life floating in a pool and scarfing down bonbons. REITs are about generating regular revenue while everyone around you worries about the market value of their home.

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Greg McFarlane is the author of Control Your Cash: Making Money Make Sense, a financial primer for people in their 20s and 30s who know nothing about money. You can buy the book here.

Photo Credit: BusinessToday.in

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What’s an error fare? Essentially, they’re glitches in the airlines’ systems that appear online for a significantly lower price than normal — but you have to act fast to get them! The trick is finding them before the airlines do.

How Do Error Fares Happen?

Two ways: the computer program the airline uses is on the fritz or a human has entered incorrect information.

“Airlines and online booking sites run on pretty complex systems,” says Calvin Iverson, spokesperson for TravelPirates.com. “With so many moving parts, glitches are bound to occur. All it takes is someone forgetting a zero, or typing a one instead of a nine, for deal hunters to find some treasure.”

How Do I Book An Error Fare?

According to TravelPirates.com, there are four very important steps to follow when booking an error fare:

• DON’T contact the airline or booking website
• Book as soon as possible
• Book with a credit card, not a debit card
• DON’T book any other travel arrangements

Why shouldn’t I contact the airline?

When you make a mistake at work, what happens? Your boss wants it corrected immediately. The same goes for airlines; if you alert them to an error in pricing, they’re going to fix it ASAP. You’re basically ratting yourself out, and you’ll have nothing to show for it but the bruise on your bum from kicking yourself.

Why should I book as soon as possible?

Once the airline flags the error, it will be removed or updated in a flash. If you get to it before they do, however, you’re usually home free.

“Pricing mistakes can last from minutes to days,” Iverson explains. “So book your tickets quickly. If you change your mind, booking from the United States should grant you 24-hour penalty-free cancellation in the original method of payment.”

Why should I book with a credit card?

Your payment will go through quicker with a credit card versus a debit card, which will help you lock that fare down before it’s gone. You’ll also have an easier time getting your money back if the fare is not honored by the airline.

Why should I avoid booking other travel arrangements?

Even though you’ve snagged a great deal with your error fare, don’t rush to book other accommodations, like hotel and car rental. Wait a few days to see how the situation pans out; about 72 hours according to TravelPirates.com. If the airline catches the glitch in time, they may not honor your booking — so you don’t want to be stuck with other reservations that may not be refundable.

Don’t waste your time fighting the airline if they cancel your error fare. You don’t have a right to that fare, and letting it stand is at the discretion of the airline. Bickering with customer service is unlikely to help.

Are Error Fares Limited to Airlines?

Error fares exist throughout the travel industry; you can also find them for hotel and resort stays. Error fares occur on all grades of airline seating, including economy, business and first class — but the latter two are rarer and are less likely to be honored by the airline because it’s a bigger financial loss for the carrier.

How Do I Check My Ticket Status?

To prevent the airline from catching wind of their error fare and canceling it, you have to be resourceful when checking your ticket status.

“There are many tools out there for finding out the status of your ticket, like Check My Trip,” Iverson says. “The site gives real-time access to your ticket information. Just make sure to never share the information from this site with anyone.”

How Awesome Are Error Fares?

Take a look at some of these amazing deals that have resulted from past error fares:

• Washington, D.C. to Santiago, Chile from $171 Round Trip
• Dominican Republic All-Inclusive Resort from $26 a night
• East & West Coast to Cities in India from $244 Round Trip
• New York to Cebu, Philippines from $171 Round Trip
• Bali 5-Star Hotel from $.01 a night

How Can I Get In On This Action?

The best advice for finding mistake fares is signing up for as many flight deal notifications as possible.

Traveling YouTube couple, Kara and Nate, have published their own “Mistake Fare Manual.” Nate details a couple tricks to booking amazing trips like the ones he’s taken from the US to South Africa for $300 and Thailand for $225, and a business class flight from Brazil to Hong Kong for $700.

“There are paid options like my own flight deal notification app which sends 20-30 flight deal notification every day,” he says.

Booking mistake fares is an art. Those who master it can ultimately fly around the world while paying a fraction of what other passengers pay for the exact same seat.

If you’ve ever booked an error fare, let us know about it. Happy travels!

Photo Credit: Nikos Koutoulas

The post How to Take Advantage of Error Fares for Booking Super Cheap Flights appeared first on Len Penzo dot Com.

Unfortunately, many people are so adverse to taking risks that they often end up paying a lot more money than they really need to. I’ve got names for people like that: currency cream puffs; financial featherweights; monetary milksops; numismatic namby-pambies; peso pantywaists. I could go on but, well… you get the picture.

You can’t hang any of those labels on me though, because while I may be a bit cautious with respect to my investments, when it comes to saving money, I’m more along the lines of what you might call… a personal finance daredevil.

Here are several examples of products and services that I generally never pay extra for. Yes, I realize I’m taking on additional risk. True, there is always the chance my decisions may not work — but I think the assumed risk is always well worth the reward.

Refundable airline tickets

The rules for “non-refundable” tickets vary so it is always important to read each carrier’s policy associated with your actual ticket. Yes, sometimes a ticket is truly non-refundable and you can end up losing all your money. But most of the time, “non-refundable” simply means you can get a full credit for future use on that carrier minus a fee. Whenever I find the price of a non-refundable ticket to be less than half the cost of refundable tickets I almost always take my chances with the non-refundable ticket. With that kind of discount, unless ticket prices are skyrocketing, the odds are fairly good that I can break even by simply buying another non-refundable ticket down the road at the same price if need be.

Event insurance

My on-going Ticketmaster love affair has no bounds. That’s because Ticketmaster continually keeps the flame alive with services like their “Event Ticket Insurance” that allows ticket buyers to be reimbursed for the full price of the tickets — plus their annoying fees — if they can’t attend the event for “any number of covered reasons, including illness, airline delays, traffic accidents, and more.” I was recently offered their event insurance for a recent show at roughly $10 per ticket. Because I bought eight tickets the insurance would have cost me an extra $80. Um, no.

Extended tire warranties

Extended tire warranty plans cover what pro-rated tire warranties usually don’t: the replacement or repair of damaged tires and rims from road hazards like nails, pot holes, sharp debris, and other hazards found in the road. The thing is, even though I’ve driven more than 500,000 miles in my lifetime — equivalent to 20 times around the earth — I’ve only run over debris that has punctured my tire on two occasions. Not only that, but I can’t see paying $50 for an extended tire warranty for a new tire that costs less than half that amount; the cost-risk ratio is simply too high.

Shipping upgrades

Impatience can be costly. Take shipping costs, for example. There have been many occasions where I’ve ordered items and still got my stuff just as quickly than if I had paid extra for the guaranteed two business-day delivery option. One exception: If you do like fast delivery — and order lots of stuff on line — an Amazon Prime membership is well worth the price.

Organic vegetables

A lot of folks prefer fruits and veggies grown with minimal or no pesticides — so they go organic. However, when it comes to tainted fruits and vegetables, not all conventionally farmed produce is created equally. It turns out that many non-organic fruits and vegetables such as onions, sweet corn, and avocados have significantly lower pesticide loads than others. That’s why, when I buy my produce, I always take my chances and avoid paying the organic price premiums for at least 15 low-pesticide fruits and vegetables. Of course, I always thoroughly wash all of my fruits and veggies too regardless of whether they’re organic or not, just to make sure they’re really really clean. Hey, I may be a daredevil of sorts… but I have my limits.

Photo Credit: stock photo

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