Ok, so the convenient part may be a bit of a stretch. In general I like to do things for myself when the opportunity arises. This way, Im am not depending on someone who may or may not be dependable, and likely couldn’t care less on what the outcome could mean for me. Let me give two examples that come to mind to make this clear. I will add that neither of these examples happened to me, but to people I know.
The first has to do with property tax. Im sure for 80-90% of you out there, your bank “pays” your annual property tax for you. This is done by adding a few dollars (and by few I mean a few hundred) on to your mortgage payment, and the bank then remits this to the city, or whoever at tax time. Then everything is just dandy. Usually. What happens when the bank messes up? Then we have a bit of a mess. Either you have to ante up the amount the bank was short, maybe a few hundred, maybe a thousand; or you can have the difference added to your monthly mortgage payment for the next year. Great, just what everyone wanted! Or since this is so close to tax time, you can take your tax return money and fork that over to the bank. Another great option! This is why I like to simply take care of this myself. I set aside around $290 each month, so when my tax bill comes in the mail, I see the exact amount I owe, go online and make the payment, rarely is there any surprises. Even if there is some huge hike in the tax rate, or my house assessment, I would be on it, because I pay attention to this stuff (paying attention is required when making major financial transactions, you should know that by now, especially if you own a home). So this person I know, their bank ran a bit short on their tax amount, and they have to come up with about $600, or tack on about $50 a month to their payments for the next year. Oops! I will add that part of the issue here is that no one at the bank gets paid, reaches a bonus, or has a target to get your property tax amount right. So no one pays much attention to this amount for you. You may need to fight with your bank to take control of this yourself. The reason is that while the bank is taking care of your taxes, the bank knows “you” are paying your taxes, and therefore, they city/province cannot take over your property for not paying the taxes. Those banks certainly like to watch their backs.
My second example of the value in doing something your self involves booking a trip. This person I know booked a trip through a travel agency, because she was too lazy to do the research herself (this was told to me). A few days after booking the trip, something came up and the dates of the trip needed to be changed. No problem, I will call my agent and see what can be done, she thought. A call was made, and days passed. Another call was made, a few more days passed, no reply. An email was sent. No response (no away from office either). Finally after about 2 annoying weeks, she finally reached the agent and was told the date could change, but there was a fee of a couple hundred dollars, and oh yes, this new flight was also another $500 dollars more. After a brief on line search, my friend found a more convenient and cheaper flight. Needless to say, she cancelled with the agent, for a small fee, and booked the flight herself. Lesson learned I hope.
One last point I will make, is that if you are in the situation where doing something is out of your control, and someone must do this for you, then YOU should be following up with them, confirming amounts, and asking questions if you are not sure about something.
There is also often learning opportunities associated with doing things yourself. Anything anyone would like to share of what they like to do for themselves?
Reblogged this on Becoming The Capitalist and commented:
While I do agree about things such as travel agents (definitely a waste of dinero) I feel that in some cases hiring someone makes sense.
Ex. A car mechanic, sure I can fix my headlight. Actually that’s a lie my headlight involves taking out the light holder itself as the car’s windshield wiper fluid tank is in the way of the bulb socket. I can’t actually do that without taking apart the front quarter of my car. 😦
But in cases such as a plumber, or a car mechanic it’s often better to leave things up to the pros. Sure maybe I pay them 20-40 an hour but if it would take me over 2x the time I figure I’m better off.
Mow the law, I can do that. The question I think is can you do that, and do it nearly as efficiently as someone else.
I can use expedia, or orbits just as efficiently as a travel agent can look up flights. I can program a computer just as well as the next guy *ahem* girl, but some things cost more.
My proof: The economic efficiencies of trade. We are best off doing the things we are efficient at.
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Hey Capitalist In Progress, thanks for stopping buy. Great point about efficiencies of trade. Maybe next time your headlight goes out you could make a point to replace it yourself. Just have someone handy with cars come over, or on standby and go to work. Funny you should mention headlight, my dealership warned me to always go there for headlight replacement because it is “difficult”. They were right, for the first 20 mins, then once I figured my headlights out, piece of cake. I would like to do more on my car, but I can’t really risk it because, we only have the one car, and I wouldn’t want something to go very wrong with the wife and baby in the car.
I’ll be sure to head over and have a look at your blog. Thanks again for commenting.
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Here’s my simple take on calling a pro VS not. It all depends on the scope of the project and whether you are financially independent.
Say you are working like a madman at your professional career, enjoy your job and saving/investing your way to FI. At this time it may be best to hire a pro to keep your time free.
On the flip side you are already financially independent. You have free time, job optional. This would be a great time picking up new skills by renovating your bathroom or fixing your car. Time is the magic word, you have a good supply of it to invest in the learning process.
Of course it’s all personal preference. Some like tinkering, some don’t. Though, more likely than not, the people working to pay off that extended-cab 4×4 pickup and 4-Wheeler will have less patience to do repairs themselves when compared to those who have their finances in order and are free to do what they really want.
Now, in my case I left the farm for a while and became a licensed plumber. Obviously I’m not calling calling a plumber when I have the skills and tools to do the job myself. 😉
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