The Minimum Payment Trap

On the outside, minimum payments are made to look harmless and as though they exist for your advantage. However, this couldn’t be further from the truth. Minimum payments are designed to keep people in spiraling debt.

The lower the minimum payment (relative to the size of the loan), the more interest you will pay.

When you take out any sort of loan loan, there is often a structured loan repayment plant for the duration of the loan. Lower minimum payments are attractive to consumers because they see it as an opportunity to make big, expensive purchases without the need to save up for them. The problem with this model is that on top of paying for the items or commodities in question, you also pay interest on a loan. While this is widely known, what is not widely known is that Minimum payments maximize your out of pocket expenses significantly. 

My friend recently bought a home for a relatively affordable price in Bellevue, Washington. A year or so after buying the home, he found out the house had severe electrical and plumbing issues. He had to take out a second mortgage to gut, fix, and repair the whole house. At first, he was very happy because the minimum amount due per month on the 2nd mortgage was very affordable and would let him fix his abode.

Still, due to the cost of the repairs and materials, he did most of the work himself. I would come over to help him with heavy things or to hang drywall occasionally. One day I came over and he was noticeably upset. I ask him what was wrong, and he told me this:

(paraphrasing) ” I just found out that if I make the minimum payment on my second mortgage, I will pay twice as much across twenty years. I can’t afford to make much more than the minimum payment between other bills, my first mortgage, and student debt. I’m f**king screwed for twenty years. I looked into my other debts and it’s the same thing. I make $100,000 a year, but I can’t save anything because of all of my bills. How can I raise a family without sinking further into the hole?”

He had been lured into the minimum payment trap for the past decade of his adult life. He’s an opportunist. He saw every loan with a minimum payment as an opportunity to buy things he didn’t necessarily need… like the boat he purchased a few years ago. He doesn’t get to spend much time on it. It costs him a few hundred a month and it will continue to do so for years to come.

How do I beat Minimum payments?

The best way to get a head of minimum payments is to not take out loans in the first place. Save your money, then make a purchase. Not the other way around.

What if I already have Minimum payments to make?

Don’t make the minimum payment, even if you can only pay 5% more it will save you in the long run. If you can afford to pay more upfront on the loan, do so. If you can afford to make higher monthly payments, absolutely do so.

What if I have no other options, I need to take out a loan?

Same advice as above, try to put as much down up front as you can. Always pay more than the minimum payment due. Make sure to review the loan terms with scrutiny, some loans have terms that change after five years.

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How I passed a Hair Follicle Drug Test for a Fortune 10 Company for less than $20 Bucks

Hey Folks, be sure to check out my other great post on simple and easy ways you can Save Money at home right now, Meditation, and More!

There are millions of people who consume Marijuana and lead active, highly successful lifestyles. I believe that Marijuana has a wide range of benefits- be it recreational or medicinal -without the the harmful side effects of things like Alcohol or Opioids (morphene, codeine, Oxycontin, Percocet). It’s also much more affordable. Unlike pharmaceuticals it’s unprocessed and 100% natural.

I also believe that like any other substance, Marijuana must be consumed responsibly and in moderation. 

Back to the story of how I passed the hair follicle drug test… I got an offer to work in an IT department as an intern for a large corporation in the American Automotive Industry. This offer wasn’t appealing because I wanted to do engineering work and not IT work. The pay also wan’t very appealing, after expenses I was going to net about $2000 dollars for the summer. About two months before the start date, they mailed me paperwork to provide a hair sample for drug test analysis. I had only 72 hours to do the test, and I had smoked frequently in the past few months. Stunned and surprised (and perhaps a little stoned at the time) I began my research for how to beat the test. I figured the risk was worth it because the hair follicle test can detect usage within the last three months, which meant I would definitely fail. Luckily I knew a chemical engineer in college, so I brought in his sage advice from what I learned. We figured out a way to beat the test for less than $20! I am so confident in this method that I had to share my success story! I hope it benefits you as much as it did me!

How the Hair Follicle Test works:

In laymans terms, they essentially take a sample of hair from your body to use to test for drugs. It’s called the hair follicle test because the hair follicle acts like a filter for the blood. Trace amounts of various chemicals will enter the follicle  and become infused into the Keratin (the structural protein that makes up your hair) as your hair grows.

They don’t actually need your hair follicle, so they just take a cut length of your hair very close to the scalp. Usually, at least an inch. If your bald, they will use armpit hair, leg hair, chest hair, and if all else has failed public hair. They then mail it off to the lab where it is tested.

The chemists who perform the test more or less put your hair sample in a solution that washes out all of the chemicals in your hair. Then they test that solution for various concentrations of substances like THC, Amphetamines, Alcohol, and more!

How to pass the test- The Macujo Method + some extra steps:

The Macujo method is essentially the home version of washing the chemicals out of your hair like they do in the lab, except you wont be testing the solution afterwards. I recommend you also shave all other body hair in case they insist on not taking it from your scalp. This method is not a good idea if you have a very sensitive scalp, as it will be irritating!

The main idea behind this method is to both wash the hair and cleanse the cuticles of all waste products, most primarily THC.

I did this process three times because I had both the time and supplies.

You will need (<$20):

  1. Shower Cap  ~$3
  2. White House White Distilled Vinegar 64oz -~$4
  3. Clean and Clear Astringent (Step 2) ~$4
  4. aloe rid nexxus old formula  I used Baking Soda instead. It does the same thing, and is WAY cheaper ~$1
  5. Tide Liqud Laundry Detergent ~$5 – Grab a small one, as that’s all you will need

Application Process:

Be careful not to get any of these substances in your eyes/ears/mouth as they WILL hurt you. Call a medical professional immediately if you do for help. On your skin and scalp, you will be fine unless you are already very sensitive.

  1. Shave all hair on your legs/chest/pits/groin.  This precautionary so you will only need to apply the method to your scalp. Odds are in your favor if you skip this step with a full head of hair.
  2. Wet your hair with warm water over the kitchen or bathroom sink.
  3. Apply and massage Vinegar into your scalp for a few minutes (1-2 cups)
  4. Apply and massage Clean and Clear with the Vinegar for a few more minutes. (1-2 oz)
  5. Using the shower cap, let this mixture stand in your hair for a about an hour.
  6. Take a shower and use Baking Soda  (you can mix it with a small amount of shampoo) in your hair. Mix it well, and let it stand for a few minutes before rinsing.
  7. In the shower, apply Tide Liquid Laundry Detergent to your hair, massage it well and rinse it out.
  8. Do the baking soda one more time, it helps your head heal and keeps your hair soft in addition to being an excellent natural cleanser.

Again, I repeated this process every morning before the test. I did see some people online mention they only did the process once and it worked for them, but I had plenty of product and time to work with so I did it multiple times to be safe.

Link it to your friends if they need to learn how to beat the hair follicle drug test. Feel free to ask any questions and let me know if this works for you in comments. Good luck!

Goal Achieved: $3 per day passive income

 

In an effort to discover what works and what doesn’t with passive income, I recently decided to give affiliate marketing a try.

I think affiliate marketing is great, but only if you truly believe in the product. I don’t think it’s fair to back a product if you’ve never used it before. That said…

I decided to made a new WordPress Site. This site was focused on primarily survival/outdoors gear. I was inspired to make the site to increase awareness for basic emergencies supplies, how to use them, and where to get them. I monetized the site by using affiliate links instead of ads. Such that if a user purchased the product through clicking the link on my site, I would receive a small cut of the sale.

 

clicks
The First Week. Amazon pay’s fees on shipment, not on click.

Everything went great with the site for the first week! The first few days saw several hundred views, and many users engaged with my links. Following the first day, I began to see revenue. All in all, about $30 bucks for the week and I didn’t lift a finger. I also hadn’t yet done SEO or anything of the sort. I was enthralled!! I was officially making passive income.

Why do I say was? Because over the weekend my site was shut down. It was hosted with a free wordpress.com domain, and for some reason the site was blocked. If you look at the image above, there were two days with no traffic, and thus no affiliate revenue.

After reviewing the terms word for word It was not clear to me what I did that was against the terms. So, I contacted customer service. However, I did not and have still not heard back. Defeated, I choose to research my options- as it was clear I could no longer host this site on wordpress (for whatever reason).

After much deliberation, I went with hostgator. I compared bluehost and godaddy as well as a few others, but hostgator provided the best value for the product. So far everything has been great with them. Plus, I can make as many sites as I want. The site is back up over the weekend and is again bringing a few dollars a day. I had to rebuild most of it. XP

Hopefully, it will keep making a few bucks a day. If so, then I may have to expand on my endeavors. It also may stop generating revenue, in which case I would re-evaluate my model.

Either way, I’ve never made passive income before. $3 seems insignificant, but it adds up. Assuming the totally unlikely probability of $3/day everyday for 40 years, that’s nearly $44,000. Assuming every site I make makes $3 a day, I would need to make 50 sites to live comfortably.

Either way, it’s more than just making money! It’s also being savvy with your money!

Next goal: $10 per day!

EDIT: GOAL $20 per day ACHIEVED!

 

Baby steps for success

Baby steps. Patience. Vision. Progress.

These four statements above are some rules I follow every day that drive my success. It sounds to simple to be true- but it is.

That’s because most people lack the confidence or willpower to see things through to the end. Many people burn out because they try way to hard way to fast… they don’t take time to appreciate the journey that is life & personal progress and development. That or they don’t consider the breadth or depth of what they want to accomplish, and their lack of foresight prevents them from making progress. (That’s what great mentors are for!)

To prevent burn out and maximize your potential for success in any endeavor- weather it’s personal or another long term project- always consider taking small “baby” steps towards your goal rather than charging a head at it.

Making small progress this way may feel slow, but it’s the best way to maximize your gains without burning out.

Consider the example of learning a new language. First you may try to take a class to grasp the fundamentals, buy a book, and try to map as much of the new language to your own as you can. This is stressful and depends on a lot of short term memorization and continuous practice to maintain- time not afforded in everyone’s schedule.

Rather, you could focus on learning a few new words every day- words for objects you see at work or on the way to work. After a few months as you build your vocabulary day to day you will feel like you have a more natural grasp on it because you’ve take time learn it and not force the information. Begin to work on larger sentences and compound phrases.

I feel like my current experience making money online is a great example…. I saw very little to start and now I am I starting make back my investments and then some. I got burned out in the beginning and I had to stop to focus on other things. Now I manage myself better and I’m making more for doing it!

To visualize the power of baby steps, I love this graph from http://jamesclear.com as it clearly illustrates the power 1% change compounded every day.

gggggg.png

Progress requires patience and vision. You have to know where you want to go and you have to understand nothing happens overnight. Rome wasn’t built in a day either. Once you’ve completed your goals however, then you have success you can claim your own and nothing is better than that! Especially if you are seeking to improve yourself or your position.

Please like, share, comment, or subscribe to let me know what you think of this content!

PS!

I also love this comic (featured), it illustrates it the concept well too. Check out more of Sarah Andersen’s comics! Check out her Book Herding Cats!

sarahandersen

The Minimum Payment Trap

On the outside, minimum payments are made to look harmless and as though they exist for your advantage. However, this couldn’t be further from the truth. Minimum payments are designed to keep people in spiraling debt.

The lower the minimum payment (relative to the size of the loan), the more interest you will pay.

When you take out any sort of loan loan, there is often a structured loan repayment plant for the duration of the loan. Lower minimum payments are attractive to consumers because they see it as an opportunity to make big, expensive purchases without the need to save up for them. The problem with this model is that on top of paying for the items or commodities in question, you also pay interest on a loan. While this is widely known, what is not widely known is that Minimum payments maximize your out of pocket expenses significantly. 

My friend recently bought a home for a relatively affordable price in Bellevue, Washington. A year or so after buying the home, he found out the house had severe electrical and plumbing issues. He had to take out a second mortgage to gut, fix, and repair the whole house. At first, he was very happy because the minimum amount due per month on the 2nd mortgage was very affordable and would let him fix his abode.

Still, due to the cost of the repairs and materials, he did most of the work himself. I would come over to help him with heavy things or to hang drywall occasionally. One day I came over and he was noticeably upset. I ask him what was wrong, and he told me this:

(paraphrasing) ” I just found out that if I make the minimum payment on my second mortgage, I will pay twice as much across twenty years. I can’t afford to make much more than the minimum payment between other bills, my first mortgage, and student debt. I’m f**king screwed for twenty years. I looked into my other debts and it’s the same thing. I make $100,000 a year, but I can’t save anything because of all of my bills. How can I raise a family without sinking further into the hole?”

He had been lured into the minimum payment trap for the past decade of his adult life. He’s an opportunist. He saw every loan with a minimum payment as an opportunity to buy things he didn’t necessarily need… like the boat he purchased a few years ago. He doesn’t get to spend much time on it. It costs him a few hundred a month and it will continue to do so for years to come.

How do I beat Minimum payments?

The best way to get a head of minimum payments is to not take out loans in the first place. Save your money, then make a purchase. Not the other way around.

What if I already have Minimum payments to make?

Don’t make the minimum payment, even if you can only pay 5% more it will save you in the long run. If you can afford to pay more upfront on the loan, do so. If you can afford to make higher monthly payments, absolutely do so.

What if I have no other options, I need to take out a loan?

Same advice as above, try to put as much down up front as you can. Always pay more than the minimum payment due. Make sure to review the loan terms with scrutiny, some loans have terms that change after five years.

Featured Image Source

Read my latest book!

How to Meditate when you don’t have the time to

About a decade ago I started to learn about Meditation and Mindfulness. In that time, I have learned so much about myself and the world around me through the benefits of meditation. I’m almost done with a brief ‘How to’ guide that will teach you various Buddhist and Hindu Meditation and Mindfulness techniques. I don’t have a title yet, but I will soon. I am so excited to share my domain knowledge on Meditation with others, that I have to post this excerpt from my book here.

This excerpts from this part of the book are dedicated to all of the hard working people who don’t have time to perform more traditional meditation. Using these techniques, you can still get some of the benefits associated with traditional Mindfulness and Meditation such as increased focus and less stress. With busy 40-60 hour work weeks, these techniques will fit into your schedule easily.

Walking meditation – by far my favourite

The best exercise for all age groups is to walk out in the open. Walking helps the blood to circulate throughout the body and revitalizes you. Early morning or evenings are ideal times to go for a walk. While walking instead of thinking unwanted thoughts, be mindful of your steps and how your legs move one after the other. Think about the rhythm you’ve set to walk. This will help you to be focused.

Start walking meditation by staying still in one place. Be aware of your body weight being transferred to your legs. Think about the soles of your feet and how they’re carrying your weight. Start to walk. Focus on your feet and feel all the sensations as your feet move. Be conscious of how your toes are touching each other and how your socks are keeping them all together. Move up to focus on your ankles and then your calf muscles, knees, thighs and hips. There is no need for you to soak in any feelings. Simply observe them dispassionately.

Breathing exercises

Breath is life; yet we don’t give importance to it. All of us do shallow breathing and land up with several ailments. Deep breathing can help you to resolve half the illnesses. Relax your shoulders and place one hand on your chest and the other on your belly. Inhale deeply and count from 1 to 5. Hold your breath for a second and then exhale. Repeat this for five to ten minutes. This will help to calm the mind and keep you relaxed. It’ll wipe out all negative thoughts and your mind will be fresh to think positive. You can perform this while travelling to work, at office during lunch time and at home. There is no specific time or place to perform deep breathing exercises.

Tea meditation

Getting up early in the morning before sunrise and looking out of your window is a wonderful practice. The first thing that comes to mind on waking up is to drink a hot cup of tea. This humble beverage rejuvenates and keeps you cheerful throughout the day. In case you don’t have time to exercise, meditate or perform yoga take to tea meditation. 

Add a spoon of tea leaves to boiling water and see the color turn golden brown. This increases your thirst to savor it. Add a couple of holy basil leaves (optional) and cardamom to it and feel the aroma wafting all around your kitchen. You can also add a small piece of crushed ginger (optional) to the tea. Strain the liquid once it is boiled.

PS – Following my blog gives you a chance to be put into a lottery to receive a free copy of my book!

-> Checkout my post on how to make an extra $30 a day, so you can make more time to meditate!

Baby steps for success

Baby steps. Patience. Vision. Progress.

These four statements above are some rules I follow every day that drive my success. It sounds to simple to be true- but it is.

That’s because most people lack the confidence or willpower to see things through to the end. Many people burn out because they try way to hard way to fast… they don’t take time to appreciate the journey that is life & personal progress and development. That or they don’t consider the breadth or depth of what they want to accomplish, and their lack of foresight prevents them from making progress. (That’s what great mentors are for!)

To prevent burn out and maximize your potential for success in any endeavor- weather it’s personal or another long term project- always consider taking small “baby” steps towards your goal rather than charging a head at it.

Making small progress this way may feel slow, but it’s the best way to maximize your gains without burning out.

Consider the example of learning a new language. First you may try to take a class to grasp the fundamentals, buy a book, and try to map as much of the new language to your own as you can. This is stressful and depends on a lot of short term memorization and continuous practice to maintain- time not afforded in everyone’s schedule.

Rather, you could focus on learning a few new words every day- words for objects you see at work or on the way to work. After a few months as you build your vocabulary day to day you will feel like you have a more natural grasp on it because you’ve take time learn it and not force the information. Begin to work on larger sentences and compound phrases.

I feel like my current experience making money online is a great example…. I saw very little to start and now I am I starting make back my investments and then some. I got burned out in the beginning and I had to stop to focus on other things. Now I manage myself better and I’m making more for doing it!

To visualize the power of baby steps, I love this graph from http://jamesclear.com as it clearly illustrates the power 1% change compounded every day.

gggggg.png

Progress requires patience and vision. You have to know where you want to go and you have to understand nothing happens overnight. Rome wasn’t built in a day either. Once you’ve completed your goals however, then you have success you can claim your own and nothing is better than that! Especially if you are seeking to improve yourself or your position.

Please like, share, comment, or subscribe to let me know what you think of this content!

PS!

I also love this comic (featured), it illustrates it the concept well too. Check out more of Sarah Andersen’s comics! Check out her Book Herding Cats!

sarahandersen