Being thrifty works with buying bonds or stocks but not in real life.
My family and I recently moved. We purchased an older home in December and immediately began to remodel the entire house. During the remodeling, we rented a townhouse.
The first thing we did was replace an old gas water heater. After talking to several contractors they advised us to replace a water heater once it hit it 10 to 12 year mark. We closed on the house mid December, promptly turned off the gas and began work.
The prior home owners left because they were getting a divorce and their younger son was experiencing severe breathing problems and headaches. After we turned back on the gas in the house we immediately smelled a sour egg odor. .. We had a gas leak!
Natural gas is odorless, but many gas companies add a smell to make you aware of a gas leak. The gas company came over, detected the leak and we had to hire a contractor to find the leak. It cost us about $1,100 to fix the leak, and it did not delay our move in date.
Gas leaks can cause headaches, dizziness, and trouble breathing. The company that fixed our gas leak said it was going on for years in the house. The family we bought the house from, are do it yourselfers who refused to pay anyone to fix needed repairs.
Signs of a gas leak
• Sense of Fatigue or Lethargy
Sometime we get stuck in our ways. One example is someone who is self-directed in their investments. You will hear them say, ‘I will never pay for something I can do myself.’ Or ‘I hear that manger’s never beat the market.’
One of the most straightforward signs that you need a money manager is if your portfolio is failing to meet up to expectations. The question really is what is stopping you from reaching your goals. If your goal is to retire comfortable, having a plan and a road map should help.
Another example of getting stuck in our ways is by doing it yourself. As a practicing attorney, often times I have to probate (which includes a large legal fee) an estate when a person only has a Last Will and Testament or an improperly executed Revocable Living Trust that was bought from either Suzie Orman or an Office Depot automated program. The legal advice you get from non attorney is usually worth what you paid for it.
A further example of being stuck in our ways is holding onto something all the way down to the bottom. How often have you held a stock that you are still waiting for it to come back to where you started? How emotionally connected are you to the companies you love? Warren Buffet says buy stocks you know, but at what point has the company or industry changes so much that the stock is now something you don’t know?
What other examples can you think of that are symptoms of being stuck in our ways?
As an aside we called the other family and their son is doing well now considering he had lived for years with gas leak symptoms. All to save $1,100.
Remember, plan today… protect tomorrow.
Until Next Time,
Peter Blatt is the president at Blatt Financial Group. He has more than 17 years’ experience in the financial industry. He received a bachelor’s degree in accounting from Boston University, a law degree and a post doctorate degree in tax from the University of Miami School of Law. He is an active member of the Florida Bar Association, the Palm Beach County Bar Association and the former secretary of the Tax Section of the Florida Bar. He has been published or quoted in numerous periodicals including The Wall Street Journal, Yahoo Finance, SUCCESS Magazine and on Fox Business News.