The Top Eight Reasons to Get a Seasonal Job

Image via WikipediaThe holiday season will be arriving soon and with money in short supply it's just what the doctor ordered. You may of been out of work for a while, this is a good time to get your foot in the door and maybe turn it into a permanent job. Sure it's only September but companies are now hiring for the up coming season. Don't be shut out, start looking today. 

You may already have a job, but having a seasonal job has many benefits. 

Here are eight reasons why a seasonal job might be a good idea.

1. Make money for the holidays. Whether you already have a full-time job and you want to work part-time to supplement your income, or you just need extra money for gifts, you’ll definitely have more green in your wallet after your first paycheck of the season.
2. Flexible scheduling. Are you a student on winter break? A parent who has to watch your kids now that school is out? Holiday jobs offer a variety of scheduling options, and because stores and restaurants are open later, there’s bound to be a shift that fits your needs.
3. Get a great discount. Don’t want to wait until Christmas Day to wear that sweater you've had your eye on all season? Many companies offer their workers employee discounts on merchandise, even if they’re only on the staff for the holidays. So you can get gifts for everyone on your list—including yourself—at cheaper prices.
4. Learn a lot in a few weeks. Though holiday jobs can start anytime in October, November or December, most are over sometime in January, making seasonal employment a great way to test the skills you already have, as well as pick up some new ones to use in your next job search.
5. Find your next job. A seasonal job is a great opportunity to get your foot in the door and make a good impression, which can turn into part-time or full-time work after the holidays. Some employers ask superstar seasonal workers to remain on the staff once the holidays are over, so if you do your best, you could have a spring and summer job as well.
6. Test drive a new job. A part-time job during the holidays allows you to try out a job you're interested in to decide whether or not it's really right for you. Whether you end up loving or hating it, your pockets will be fuller either way.
7. Make new friends. Most businesses are fully staffed during the busy winter months, so you'll have plenty of opportunities to meet new people and bond with coworkers. Suggest a company Secret Santa drawing and you could even get yourself an extra gift.
8. Get a reference for your next job search. When the hustle and bustle of the holidays is over, ask your boss if he or she would be a reference for you when it comes time to search for summer jobs.

Why Does Warren Buffet Want To Pay More In Taxes?

Image via WikipediaWarren Buffet, the "Oracle of Omaha, thinks the rich are not paying their fair share of taxes. He announced that he pays less taxes than the people that work for him, like his secretary.

 "Last year my federal tax bill -- the income tax I paid, as well as payroll taxes paid by me and on my behalf -- was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income -- and that's actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent." says Warren Buffet.

 Some claim that his calculations are off. The money he receives in dividends has already been taxed once at the corporate level. So his personal taxes are the IRS’s second taxing of the income. And that's why he takes his income in dividends only.

 Warren Buffet and the wealthy like himself are the exception and not the rule. He has control of a vast amount of wealth and capital. He isn't rich, he is super-rich. His company and many other prosperous companies are sitting on billions of dollars in domestic banks. Add to that the billions kept in overseas banks of American companies profits that will not come back to this country because of high taxation.

 Mr. Buffet is in the position to pay higher taxes. But the so called rich, those making $200,000 - $500,000 range are not being paid in dividends like Mr. Buffet. They are most likely being paid a salary with some bonuses. Are they the rich he is talking about. They are the ones that already pay high taxes and don't want the ideas of Warren Buffet to come into fruition.

 I compare Warren Buffet to the Henry Ford's, J.P. Morgan's, and John D. Rockefeller's of the last century. They were wealthy enough to bailout failing companies and do the right things to help this country before their were bailouts. It was done right at that time when fiscally healthy companies stepped in and bailed out failing companies.

 In 1907, during a vicious stock panic that threatened to engulf the U.S. financial system, J.P. Morgan single-handedly stepped in. "This is the place to stop the trouble, then," he said, while putting his own funds at risk to orchestrate a bank bailout. Amid the panic, John D. Rockefeller loudly deposited money in a troubled bank and pledged to buy stocks. In 1914, at a time of rising labor unrest, Henry Ford shocked his competitors (and the establishment) by announcing he would pay assembly line workers the above-market wage of $5 per day. These moves may not have seemed economically rational at the time. People who commit big sums to equities in the middle of crashes generally lose money, and businesses that intentionally pay unskilled labor above-market wages tend to go out of business. But they were actually very shrewd investments in the system. If U.S. markets ceased to function, J.P. Morgan's firm would have been among the biggest losers. Ford reasoned that his company would prosper if he could turn the automobile from a luxury product into a utility for the working- and middle class. He wanted to pay his workers enough so they could afford to buy his products. It worked out pretty well for Ford and his heirs.

My View:

 Mr. Buffet should forget about his tax ideas and concentrate on what he knows best, building companies and making money. We should of put him in charge of the so called bailouts. He could of done the whole thing in less time and at half the cost. It should of been left to the private sector to heal itself. The government is pathetic at anything financial or business.

 Warren Buffet should use his goodwill and knowledge to lobby the administration to think like a business man.

Save Money By Not Making Dumb Financial Mistakes

One of Dave Ramsey's great quotes is "A budget is people telling their money where to go instead of wondering where it went." Being on top of your money is the only way your ever going to have any. In life our money seems to want to sneak away. We let this happen by not paying attention to where it's going.

There are common mistakes we all have made when handling money. I see them repeated over and over again. I have listed just a few, there are many more.

Spending More Than They Make.

This is the most obvious mistake yet it's the most ignored. If I could give just piece of advice to people looking for the one thing they could do to improve their finances, it would be live on less than you make. So if you find yourself struggling to make ends meet, take a hard look at your budget and begin living on less than you make today.

Keeping Up With the Joneses.

A lot of times it doesn’t matter how much money we make, we still want to keep pace with our neighbors or friends.This is a sure way to get into trouble. What’s ironic is that many times those same people we’re trying keep pace with and impress are buying things they can’t afford with money they don’t have either. Think of how much better off we’d be if we’d just learn to be content.

Missing payments on Credit Cards and other Bills.

In the past I’ve been late on credit card payments. In today’s world of online banking, scheduled payments and online calendars, there is no excuse for this. Missing a payment and/or being late can really cost you. Many cards are now charging $30+ dollar late fees, and if you have a low interest rate and miss just one payment, your rate can increase significantly.

Don’t make this mistake. Use online banking and schedule your payments monthly.I would suggest scheduling the minimum payment at the beginning of the month to insure it gets paid. If you can pay more on it later in the month, than either bump up the minimum or just schedule another payment. Many online banking sites now have payment reminders as well that will send you an email x number of days before the bill is due.

Not Having an Emergency Fund.

An emergency fund, next to spending less than you make, is probably one of the most significant things you can do to change your financial life. It allows you to stay on budget, avoid using credit cards, and reduces your stress level when it comes to money. Just knowing that if something goes wrong or that something unexpected comes up and you can financially cover it gives you a tremendous peace of mind.

Not Saving for known upcoming expenses.

Upcoming expenses are expenses you know you will have to pay. For me, these are things like: property tax, Christmas, home owners insurance, and yearly home owners association dues. You may have others. These are expenses for which you know the amount and you know when you will need to pay them.
In the past, we always intended to set money aside and just never did, thinking we would have the money when we needed it. We seldom did, so we ended up using a credit card to pay for it. Dumb, dumb, dumb.

The concept is simple, take the expected payment, divide by the number of months between now and when it’s due, and begin setting this money aside. I set-up an automatic transfer from our checking account to our emergency fund.

Purchasing new vehicles.

New vehicles lose a large portion of their value as soon as you drive them off the lot. I highly advise that you let someone else take the initial hit on a new vehicle, it can save you a tremendous amount of money. I recommend buying something 2-3 years old. Generally they are still under warranty, in very good condition and just as reliable as a new car.

My View.

If people are asked about their future, they can usually paint a fairly happy picture. They will be retired, their bills will be paid off, and they will roam the world while living off their perfectly adequate nest egg. The reality is that many individuals have no plan for the future. They may have desires, but their current habits will never get them to their desired state of living in the future.

Does a financial plan guarantee success? Of course not. However, the mistake that many people make is not having any sort of long-term financial strategy and hoping that things will simply work out somehow. Thinking that way may reflect the positive outlook of the individual, but it may also mean that they will someday experience disappointment at their lack of serious financial planning.

Myths and Legends of Property Investment for New Investors to Avoid

The property investment market can be a great place to invest. The core elements of successful property investment are excellent capital risk management and a good eye for good properties. The myths and legends of the market, however, aren’t based on business principles, and that’s what makes them dangerous. If you’re a new investor, it’s a good idea to learn how to tell the truth from the hype.

A certain level of sales pitch in any property deal is understandable. Inflated statements of market potential, misleading information about local markets, and “dubious” predictions of capital and rental returns without mentioning costs are just hot air, and usually a lot of it.

These are some of the typical myths:

• The property market always goes up: It goes up relative to economic conditions like demand and prices. If credit is tight, sales are usually slow, unless you’ve got a line of credit which can cover high prices. A 10% variation in the average house price in Australia can cost $40-50,000. That’s enough to put an investment behind the eight ball for years in a slow market. 

• New estate properties are always good value for investors: New estates can be very good value. The issues for these new estates aren't obvious. A new estate out in the back of beyond is by definition a new home buyers’ market. Prices can be slow movers, and location issues may or may not be good selling points to commuters. Lack of infrastructure like schools and amenities may also be a negative factor for buyers. 

• Rental properties just keep going up: Rents go up, but so do maintenance costs and upkeep. Rates also tend to go up. The rental market is also fickle. Tenants may simply look for cheaper rates, meaning a rental property can go untenanted for quite a while. If you’re relying on rent to pay a mortgage, that can be trouble. 

• Property investment is money for jam: No, it isn't. The most successful property investors are experts. They’re also very good financial managers and know how to cope with market movements, slow sales and rental property management. To get the best out of an investment property involves good business sense and having a very good knowledge of markets and returns on investment strategies. 

• Commercial properties always bring good returns: Don’t bet on it. The commercial property market has its share of duds. The many “retail ghost towns” around the world are a silent and expensive testimony to the realities of many commercial property investments. Commercial properties need to be proven viable to provide credibility to their potential returns. 

For new property investors, the bottom line is this: Property investment can be an extremely good method of wealth creation, particularly over time. It is not a Get Rich Quick type of investment. Investments can go sour. Intelligent, informed investment in good property markets, preferably including getting professional advice regarding purchases, is the best working method for making money.

Grandparent Scam Strikes Again

Put yourself in the shoes of a caring Grandmother. Let’s say one day you receive a call from your grandson telling you they’ve been in an accident and are being held in jail in the Dominican Republic. They want you to keep their little debacle a secret but they need you to wire money to them ASAP to get them out of jail.


What would you do?


Claudia Beach of Jacksonville, Florida recently faced this exact scenario recently and in a worried, emotional state, sent the money straight away to her needy “grandson”. Her “grandson” first called asking for $3,400 for bail out of the Dominican Republic jail he was stuck in.


“My emotions went wild. I couldn’t think. All I could think was he was in jail in a foreign country”.


She rushed to her nearest Publix and wired the money immediately via Western Union.
Keeping her “grandson”s secret she apparently didn’t discus this matter with the boy’s parents. The very next day she received another call from him. This time he said they were making him pay his medical expenses of $2,400.


To Western Union!


Later that very afternoon the phone rang again. This time sonny-boy was asking for $1,800 to pay for the medical expenses of the lady he hit.
She says that the employees at Western Union questioned her each time if she was sure if this was her grandson. When he called the first time he told her that he didn’t sound like himself since he had been in the accident and had stitches in his lips. In a concerned state, she bought this story.


The money was wired each time to a lawyer by the name of Angel Rosario. Money that Claudia Beach will never see again. A total of $8,300. She has since filed a complaint with the Federal Trade Commission and the local police. Beach has come forward with this story to bring awareness to others that might be at risk for this scam.


To protect yourself:

• Do not disclose any information before you have confirmed it really is your grandchild.
  
• If you’re not sure ask the caller for their middle name or the elementary school he or she attended.
  
• Do not respond with a name but instead let the caller explain who he or she is.
  

What breaks my heart about this scam is that it preys on love. If you are a caring Grandparent be wary if you receive a call like this that tugs on your heart strings. If you receive a distress call from a family member in another country I would recommend first, verifying that they are in fact in another country. Using the bullet pointed suggestions above or maybe calling their cell phone? Or their parents to ask how they are doing and what they are up to? I understand there will be different cases for different family dynamics but before you pay up you need to verify an identity!

Video about Grandparent Scam Strikes Again by @GetOutOfDebtGuy from GetOutOfDebt.org

This guest post was submitted by Steve Rhode who is a consumer debt expert and helps people for free to learn how to get out of debt and avoid scams.

Using the internet to cut your travel costs

Image via Wikipedia

In the last couple of decades, the internet has grown exponentially into a tool that can be used for just about anything, a tool that practically dominates our everyday lives. Today, it is often our first point of call to check the news, buy a new camera or book a cheap holiday. 

Holidays are famously affordable when they’re booked on the internet, with everything from the flights, hotels to the cheap holiday insurance sporting slashed prices on various websites. Before you go ahead and book the first deal you see, milk the internet for all it is worth to save yourself a small fortune.

As an example, if you want to secure yourself cheap travel insurance compare deals on price comparison sites like moneysupermarket.com. That way, you can assess a vast list of the best deals on the internet on one website and choose the one that’s best for you.

When it comes to flights, there is, as you will know, a multitude of budget airlines that will potentially save you hundreds in this area. Most of the best deals are advertised, inevitably, on the home page of their websites, but it doesn’t hurt to do a little digging around for something that not everybody is going to see. Sites like Expedia.com offer flight and hotel packages to save you even more, but many of these kinds of deals are only available on the internet.

The same applies to hostel websites. Telephone bookings often incur an extortionate booking fee, but if you turn to the web, you might be pleasantly surprised. We’re not saying that there are absolutely no booking fees on the internet, because there are, but you may well come across a money-saving gem if you do your research.

Another way you save money on your travels is by booking the airport transfers (if applicable, of course) before you actually travel. If it’s not already booked, people often take advantage of the fact that you have no other choice than to get a transfer from the airport by hiking up the costs of their services.

Advanced booking is also the way forward if you plan on doing anything special on your travels. Things that require specialist equipment, like rock climbing, or group bookings, like ocean excursions, not only have reduced costs but also guarantee that you actually get a place.

Not everybody plans this far in advance, but it just goes to show that it can save you a significant amount of money if you do.

KISS: Keep it Simple Starbucks

Image via Wikipedia

This is a guest post by Vanessa Burke

It used to be that if I wanted a cup of coffee there were only two options; out of the tin in the kitchen and at the diner. The other day I walked into Starbucks and asked for a regular black cup of coffee and the kid behind the counter scoffed at me and immediately pronounced that “We don't have regular coffee.” I said to him “Fine, I won't give you any regular money,” as I walked out the door and made my way to the gas station to get my caffeine fix.

Everywhere we turn, businesses try to take advantage of innocent consumers by putting is in high pressure sales situations. They keep low-level employees on their toes all of the time by intimidating them to make sales or get fired if they don't reach their quota. When we are faced with these situations, it's hard to get what we actually want or need. It's also an easy way to become manipulated into buying frivolous upgrades and accessories that we might not be able to afford.

If businesses kept their employee rhetoric simpler I would be more inclined to buy what I need instead of spending all of my cash on suggested stuff. Here are some ways to avoid awkward situations and save yourself money when entering the retail and hospitality arena:

Retail

The other day I walked into Best Buy to check out some prepaid cell phones. As soon as I entered the door I was ambushed by about 4 different employees asking if I needed help finding anything. I politely told them no and went about my business. When I finished up in the mobile section, I headed over to the video game department to pick up something for my son. I was instantly bombarded by three more employees who wanted to “help” me.

An easy way to save money in the retail sector is to turn to Amazon or eBay. All of the product descriptions are already posted and you can get honest opinions from real consumers.

Coffee

As illustrated earlier, coffee has gotten way too complicated. I think that places like Starbucks and other coffee chains are losing a good deal of business because people are too frightened to order a regular cup of joe in fear of a verbal lashing from a “coffee expert.” In order to save money in the morning, try making your coffee at home instead of purchasing something with a name you can't pronounce.

Fine Spirits and Brews

This might be the most embarrassing part of the modern consumer culture. People who work in liquor superstores and behind bars always have a high-strung attitude when talking about their product. What if I walk into one of these stores and just want a case of Bud Light for Sunday football? Instead of going to a large liquor store specializing in exotic spirits, try going to your local supermarket for more savings.

Restaurants

In my opinion, suggestive selling has completely ruined the restaurant industry. What was once a nice way to get out of the house and not have to cook or clean up for yourself, is now a thirty minute sales pitch from a pompous server with a liberal arts degree. If you want have a restaurant experience without the sales pressure, try ordering take out and eat your food at the park. Not only will you save money on drinks and appetizers; you will also save on the tip.

The next time you go out to a store or restaurant, just politely dismiss the obtrusive help. Don't blame them for the annoying over-service, blame upper-management and the increasing corporatism of America.

Saving Money and Energy The Old Fashion Way

Image by bsabarnowl via FlickrEverybody is looking for ways to save money and energy. There are energy saving appliances, bulbs, and automobiles all ready to help in our goal. We are told to lower our carbon footprint and use less energy. Today we want to use less and waste less. We look to the future to find gadgets and machines that can do this for us. I say don't look forward to find solutions, look back!

Depending how old you are, if you want to be money and energy savers, go talk to your parents or grandparents. These people grew up in a day when they used less water, less fuel, created less waste and imported fewer goods than we do today. They took these actions out of necessity as opposed to our modern-day desire to help the planet, but the ecological impact is just as powerful. Here are seven lessons we can borrow from our elders that are easy on the wallet, and have significant environmental impact. Perhaps more importantly, they are easy to implement and relevant to our modern lifestyles.

Bottled water.
Believe it or not I grew up in a day when you didn't buy bottled water. Not because there wasn't any but because you would be thought of as foolish to buy something you basically could get for free from your faucet.

I remember keeping a pitcher of cold water in the refrigerator whenever we wanted a cold drink.

Clothes dryer.
Many homes never had a clothes dryer. Hanging your clothes outside in the fresh air was the only way to dry them. The clothes washer was a common device in a home as far back as the the early 1900's. The first electric one was invented in 1910.

Before the clothes dryer became a standard appliance in every American household, your grandmother simply took advantage of a sunny day, some rope or cord, clothespins. No cost, no maintenance, no carbon footprint. Clothes dryers have come a long way in energy efficiency over recent years, but the average home clothes dryer has a carbon footprint of about 4.4 lbs. of carbon dioxide per load of laundry. According to a recent Wall Street Journal article, “the biggest way to cut the environmental impact of cleaning clothes is to stop using a clothes dryer.”

Vegetable garden.
The home garden was common place many years ago. It was easy to do and a money saver even when fruits and vegetables were fairly inexpensive. When you bought a home, you would look for one that had a nice yard for growing vegtables and perferably many fruit trees. It was normal to go outside your home and be able to see an orange or apple tree in your back yard.

When the Obama Family decided to plant a garden it was seen as odd by the younger generation but made perfect sense to the over 50 crowd. My grandfather always grew vegetables out in the back yard, it would of been odd for him not to.

Saving rain water.
Rainwater is free, why not collect it? You can use it to water your garden or lawn. You can wash a car or the dog with it. You can pick up a few plastic drums free someplace and save money and water. Just channel your rain gutter system into it and have gallons of free water.

Pack your lunch for work.
Back when, most people brown bagged their lunch. Taking a box lunch when you would be out all day, for work, or the kids school lunch was normal. Eating out used to be an occasional event for older generations, often reserved for birthdays or anniversaries. Nowadays, the average American eats out about four times a week and spends nearly $3,000 yearly in take-out food.

The waste created by take-out packaging alone is enough to make you think twice. The money you can save by eating at home or by bringing your own lunch to work or school — in a reusable container, of course would make grandma very proud.

Home entertainment.
When our grandparents were younger, playing card games or board games was a popular form of entertainment. As a little boy, I remember spending hours playing gin rummy in my grandmother's kitchen, with my handful of cards.

Compared to today, we have electronic gaming systems like Wii, Nintendo or Xbox; cards and board games provided hours of entertainment with little impact on the environment or the wallet.

Spend less.
Anytime you buy something, you (and the environment) are paying way more for it than just the sticker price. There is the cost of resources used to make it, advertise it, transport it, maintain it, and inevitably, to dispose of it. The amount of stuff our grandparents bought on a regular basis pales in comparison to the overindulgent spending habits of our generation.

These ways to save money aren't just a common sense way to save money and energy, they demonstrate a mindset, a way of thinking that was ingrained in the over 50 crowd. Today we have a barrage of advertisers showing us ways to make life easier. All we have to do is hand our money over for so called better life. 

Consumers Have A New Way To Vent Their Customer Service Problems Using Social Media

Image via CrunchBase
Many of us are all-too-familiar with these and other phrases that accompany the soothing muzak used by many companies to manage our limited patience when we're on hold with their customer service departments. Unfortunately, even after a human is eventually reached, consumers often find that by the time they hang up the phone, the issue they called about remains unresolved. What can a frustrated consumer do?

Try Twitter.com

One alternative that consumers are increasingly turning to is Twitter. By now, many of us are using Twitter, a social networking and microblogging Web site that allows its users to post short messages (known as "tweets") that can be read by our "followers." Use of Twitter has exploded in the past few years. At last count, Twitter users were tweeting nearly 50 millions tweets per day.

Since Twitter is a public service, consumers’ tweets are visible to everyone on the Internet (unless the user blocks access to his or her account). Twitter has become a powerful megaphone for consumers. In the past, if a customer had a problem with a company, their negative experience was communicated mostly to friends and associates by word-of-mouth. In recent years, consumers have started voicing business reviews on the Internet, via blogs or review sites. With Twitter, there is even greater potential for thousands of users to hear - many, instantly - about bad experiences. For companies that are eager to protect their reputations, this is an issue they would be wise to manage.

Companies Are Watching

Numerous companies are doing just that -- assigning staff to monitor Twitter for customers who are dissatisfied and respond directly (via Twitter) to that customer. Many Fortune 500 companies have set up their own Twitter accounts, allowing customers to direct their tweets to a designated Twitter agent for a particular company (via Twitter's "@" reference system). Companies as varied as Comcast, JetBlue, Wachovia, Bank of America, UPS, and Blue Cross Blue Shield have set up Twitter accounts to complement their traditional customer service lines.

So how can frustrated consumers make use of Twitter to improve their customer service experience?

Here are some tips and tricks that might help:

1. Try the conventional method first. Most companies have dedicated customer service lines that can address common problems, though time spent on hold should be expected.
2. While you're on hold, use a search engine to search for "[company name] Twitter." This will usually bring up a list of Twitter accounts associated with a particular company.
3. If the traditional customer service route doesn't solve the problem, tweet away! Be succinct in your tweet (Twitter has a 140 character limit on tweets) and reference one or more of the Twitter accounts for the company in question, using the "@" reference. Example: "The widget I ordered from @acmewidgets showed up broken today. Customer service was no help."
4. Keep your expectations reasonable. Some companies have set up their Twitter accounts primarily to tweet about company news, not respond to customer complaints. Review the last few tweets of a particular company's Twitter account to make sure your tweet goes to the right account.
5. If you are contacted by a representative of the company, take your conversation to email or phone. This is a better way to describe the exact problem and get it fixed quickly.
6. Look for Verified Accounts. Twitter's openness has led to numerous accounts impersonating real companies or celebrities. Look for accounts that have been verified as legit by Twitter. Note that Verified Accounts for businesses are still in the beta, or testing, stage, so don't rely on this exclusively.
7. If your tweet led to the problem being solved, tweet about that, too! Companies will be more likely to help you and others in the future if they know that going the extra mile on Twitter led to positive feedback for all the world to see.

Twitter is a valuable tool in the consumer's toolbox for resolving customer service issues. If going the usual route of calling the customer service line doesn't solve your problem, don't be afraid to try Twitter to express your displeasure. The old saying that the squeaky wheel gets the grease has never been truer.

10 Ways To Turn Money Leaks Into Big Savings

Image by Images by John 'K' via FlickrThey say, in life, it's the little things that matter. This rule also applies when it comes to your money. Many people have little money leaks that they may not even realize. Over the years these tiny amounts of money add up to hundreds of dollars. Being conscious of where your money is going is the difference between winning and losing in the money game.

I have listed 10 ways to save money and plug up those money leaks:

Savings Tips

1. Consider your needs vs. your wants. Think about items you purchase on a regular basis. These add up. Where can you save?

• Do you eat out at restaurants a lot? 
• Can you cut back on daily expenses, such as coffee, candy, soda, or cigarettes? 
• Do you have services you do not really need, such as cable television or a cell phone? 

2. Set up a direct deposit and an automatic transfer to your savings account.

• When you get paid, put a portion in savings through direct deposit or automatic transfer. 
• If you have a checking account, you can sign up to have money moved into your savings account every month. What you don’t see, you don’t miss! 

3. Pay your bills on time. This saves the added expense of:

• Late fees, extra finance charges 
• Disconnection fees for phone, electricity, or other services 
• Fees to reestablish connection if your service is disconnected 
• The cost of eviction, repossession and bill collectors 

4. If you use check-cashing stores regularly, you might be paying $3 - $5 for each check you cash. Consider opening a checking account at a bank or credit union.

5. If you get a raise or bonus from your employer, save that extra money.

6. If you have paid off a loan, keep making the monthly payments to yourself. You can save or invest the money for your future goals.

7. Avoid debt that does not help build long-term financial security. For example, avoid borrowing money for things that do not provide financial benefits or that do not last as long as the loan. Examples include: a vacation, clothing, and dinners out in restaurants.

8. Save your change at the end of the day. Take that change and deposit it into the bank (every week or month).

9. When you get a tax refund, save as much of it as possible.

10. If your work offers a retirement plan, such as 401(k) or 403(b) plan that deducts money from your paycheck, join it! Most employers will match up to $.50 on each dollar you contribute. The matched amount is free money!

Happy 35th Birthday Index Funds

Image via WikipediaIt was 35 years ago that John Bogle and the Vanguard Group launched the First Index Investment Trust that tracked the popular S&P 500 index. The fund name was changed to the Vanguard 500 in the 1980s. Bogle and his company has forever changed the investing landscape.

At the time John Bogle never thought how his idea would affect the way millions of people would invest. As a manager of mutual funds he wanted to find a way to make investing easy for the common man. At the time and even today mutual fund investing still means paying high management fees. He felt there could be a better way. His idea of a mutual fund that tracked an index and would always do as good as the market was a novel idea. It was simple and easy, without a lot of hassle. To make a good idea better he pioneered low management fees so the investor would benefit and not the broker salesman.

Bogle thought it was a travesty for the industry to make a fortune in management fees and wanted those fees to stay in the pockets of investors. He knew that even a small amount of reduced management fees kept in the investors account meant for higher returns.

We need to thank John Bogle and company for giving us the index mutual fund and the beginning of passive investing. Over the years the the inexpensive management fees has kept billions in the accounts of investors where it belongs. Thank you John Bogle!

More reading about John Bogle and Index Funds:

Wall Street Journal article titled How the Index Fund Was Born

The First Index Mutual Fund: A History of Vanguard Index Trust and the Vanguard Index Strategy.

The Power of Passive Investing

Does Prepaid Car Maintenance Save Money?

Image via WikipediaNew car buyers are often asked whether or not they want to purchase a “prepaid maintenance plan.” These are not extended warranties but plans that cover routine kinds of service to your car. But are they worth the money?

A plan could cost as much as $1,500 and can be added to the cost of a lease or purchase. Reading the fine print to see what items are covered can keep you from making a big mistake. But when a neighbor of mine got a new car and a new plan for $800, she didn’t realize it only covered oil changes and no other maintenance.

They may be pretty good moneymakers for dealers but the Better Business Bureau warns consumers to crunch all the numbers and read all the fine print.

“These kinds of plans are relatively new, so we’ve received about 100 over the past couple of years, we’ve certainly seen an uptick in the numbers,” said Rodney Davis of the Better Business Bureau.

Some unhappy customers complain maintenance plans were added to their closing paperwork without their approval or they dropped their cars off for maintenance and the work was never done. Some angry customers say the required repair shops went out of business and they couldn’t get a refund. That’s why some consumer advocates say “buyer beware.”

“These prepaid maintenance plans are a source of profit for the dealership so they’re really going to try to steer you toward that,” according to Edmunds.com Ron Montoya.

Since the plans vary, experts have a few recommendations:

• Read the details carefully to see how long it lasts and what it covers, and calculate the expenses to make sure you see savings.
• Once you buy a plan, remember, you’re stuck going to that dealer or repair shop.
• If you finance the plan with your car loan that means you’re paying interest on it, costing you more.

If you’re tempted to buy a prepaid maintenance plan, here’s an inside secret to getting the best deal.

We’ve been told dealers mark them up, up to 50-percent, so you know to try out offering half the price and then they may counter the offer and you can meet somewhere in between.

Always remember to check out the plan closely and don’t be rushed into signing anything. Edmunds.com offers a maintenance cost calculator that will estimate the scheduled maintenance costs for cars.

Some high-end car makers now offer free maintenance plans in the purchase price. If you plan on moving or selling your car before the plan is up, make sure it’s transferrable.

Startup CakeHealth.com Wants To Be Your Mint.com For Managing Your Healthcare Expenses

Cake Health is an online system that helps users understand and manage their health care. They have recently opened it to the public. Cake Health provides a central place to track all your healthcare plans online. It updates your plan status so you know what’s covered, automatically categorizes your claims, tracks your out-of-pocket expenses and alerts you to possible overcharges.

“Eight out of every 10 medical bills have mistakes,” said Rebecca Woodcock, co-founder and CEO of Cake Health. “We don’t think managing your healthcare dollar should be difficult. We developed Cake Health to help subscribers regain control of their health by helping them get the most out of their healthcare spending.”

Once a consumer signs up with Cake Health, getting started is easy. The new subscriber adds their insurance login information into their account and Cake Health does the rest. The service will monitor and analyze claims, dynamically update the policy information to reflect claims, insurance payments and deductible payments and search for potential billing mistakes like mismatched medications, double entries and other common errors.

Three key features to Cake Health include:

Cake Health Money Manager: A service that pulls together insurance benefit information as well as billing information from medical providers. Subscribers will see, in an easy-to-understand method, what coverage they have, where their healthcare dollar is spent and, in many cases, identifying benefits they didn’t realize they had.

Cake Health Plan Matcher: A unique recommendation engine that identifies healthcare plans based on a subscriber’s actual healthcare spending, individual requirements and history.

Cake Health Mobile: A bill capture feature for the iPhone and available through iTunes. With Cake Health Mobile, subscribers simply take a picture of their medical bills, and Cake Health Mobile reads the image and automatically populates their account. In addition, subscribers can scan documents and forward them to Cake Health via email at docs@cakehealth.com.

The healthcare system today is run like amateurs today. Having a reliable dashboard online to monitor your claims and benefits is desperately needed. You can use you insurers website but there is a lot of things there and often are hard to navigate. CakeHealth.com takes down the wall between insurers and consumers. Here you will find cost, coverage, and procedures plainly spelled out.

Start Them Young If You Want To Raise Savers And Not Spenders

Image via WikipediaThe most common way to save for college is 529 college savings plans. Mom and Dad dutifully scrimp and save for 18 years till junior is ready for college and hopefully there is enough in the account to cover college costs. For many families money is tight and the amount saved is not as much as hoped for. We are going to be living in this reduced economy for some time to come so things have to change.

A family financial crisis or success is always a good chance to teach personal finance to your children. Why not use the saving for college as one of these lessons. Some parents feel bad if they can't provide for their kids as they wish they could but again this is a lesson, the kids of the family should learn, for their own benefit.

I have been watching locally and nationally the problems pension and retirement funds are having. Municipalities, the Post Office, and unions are having an increasingly harder time fulfilling pension payments because of reduced revenue. The only way to make these plans work is for employees to make a larger contribution out of their own pocket. This relates to the troubles families have funding college costs and saving for retirement. The recipients of the college funds, your kids, are going to have to make a larger contribution to its success.

The value to saving is a lesson lost in many families. Some families are bringing their children up in an environment of material consumption. Those days are over if you want to have a funded college savings account. Getting the kids involved is key. That means when they receive money as gifts or from working, some of that money has to go toward their college education costs. That means it has to be saved and not spent on the latest electronic gadget. A hard thing to do in todays society.

The 529 college savings plan is a good option, but there are other ways to teach the kids to save:

Roth IRAs:

You can open a custodial Roth IRA for your child no matter how old they are and only if they show some earned income, even if it's from washing cars. Even if they don't make enough to file an income tax you must still keep records. You don't get a deduction from your Roth but you do get to withdraw tax free at retirement. This year, the contribution is limited to the lesser of the individual's income from work or $5,000. it's never to early to put some money away for retirement.

Coverdells:

These accounts are similar to 529s in that they enable investors to accumulate money tax-free to pay for qualifying education expenses. Investors typically can pick from a much wider range of investments than with a 529 plan, though the annual contribution is limited to $2,000 per child. Coverdells, unlike 529s, also may be used to pay for qualifying expenses from kindergarten through high school. Some families use Coverdells to complement a 529.

UGMA/UTMA accounts:

Accounts set up under the Uniform Gifts to Minors Act and the Uniform Transfers to Minors Act involve an irrevocable gift of cash or securities made to a minor and managed by a custodian. Account earnings are taxable, and income over certain minimums may be taxed at the parents' rate rather than the child's.

Saving for the future is not something kids look at with pleasure. They have to be taught it is a part of a life long way of life. Even for me saving is a sacrifice, but it will be one that pays off in the future.

A Better Way To Save Money On Phone Service For Yourself and Business

This is a Sponsored post written by me on behalf of Net10. All opinions are 100% mine.

Trying to save money in this economy is no easy task. One of my major expenses in my business is cell phone charges. I have to supply 3 employees with cell phones and this can get very expensive. I needed to find a way to reduce costs. I have always used AT&T for my cell phone carrier. When I initially started using them, for my companies phone service, I had to sign up for a 2 year plan for each phone. Being locked into a long term plan was impractical. If an employee left, what would I do with their phone? I would have to continue to pay the phone bill on the unused phone. This actually happened when one of my employees quit for another job opportunity. I had no choice but to continue paying or be hit with termination fees.

 

I found a solution to my problem by changing my phone service to NET 10. I like Net 10 because they have no contracts. For a low monthly fee of $50  I get unlimited talk, text, and data. I don't have to worry about having a good phone because they carry all the best phones from manufacturers like LG, Motorola, Kyocera, Nokia, and Samsung. Now every month I know what my phone expense is going to be. The flexibility is also just what I need because I can add a phone if I hire another employee or stop using a phone if I have less employees. All without contracts, cancelation fees, activation fees, overage charges, or hassle.

 

 

 

 

 

Paying your bill or adding minutes is easy to do, just go to www.NET10.com, over the phone at 1-877-ten-cent, or at 70,000 retail locations. If you want to spend less than their $50 NET10 Unlimited deal, their Easy Minutes Plus Plan is $15 for 200 minutes and is  more than enough for some. 

 

Cute NET10 commercial

 

Real NET10 customer

 

Go to their NET10's website at www.NET10.com or follow them on twitter at @Net10_Wireless and Facebook at NET10Wireless

3 Ways To Teach Your Children How To Use A Credit Card

Image via WikipediaAs parents it's our job to teach our children all they need to know about life. When they are young we teach them take care of their belongings and their home. As they enter school we teach them the importance of studying. We teach them morals and respect for others. We spend years going over and over again teaching and preaching so they will become responsible well rounded adults. Overall we do a pretty good job but one thing we don't do to well is teaching them to handle money and debt.

We usually begin teaching our children about money and use cash as a tool to teach about working and being paid for it. As they get older, we have them open a checking and savings account to keep their money they receive as gifts. Later they get jobs and need to write checks. If your like me it stops there. I tell my kids a checking and savings account is all they need while they are in college. They want to get credit cards too but I say, that can wait till later. Being on a cash basis is enough for the time being.

I like them being on a cash basis because it's hard to get into to much trouble that way. But I know eventually the credit card will enter their life eventually. I would like to teach and prepare them for that inevitable day. Because it will probably happen when they are on their own and I can't be their to guide them.

Teaching them the proper way to use a credit card is the best gift you can give them. With credit cards the the ways to get into trouble are numerable. If you want to give them some hands on training with credit cards, lets try one with the training wheels on first.

Use a Parents Credit Card.

All you have to do is call your credit card company and have your student be an authorized user on your card, with all the same privileges you have. Before handing it over to them make sure you lay down all the ground rules. Designate when the card should be used and if permission is required before each use. Discuss what kinds of items or services the card is to be used for.

This will actually demonstrate to the student the mechanics of how to use the card and for what reasons are appropriate. They will learn from this experience that the card is only for a specific purpose and can not be used for just any reason. It's the safest way to get a card into their hands but not cut the apron strings just yet.

The downside is they do not see the other side to credit cards, paying them off every month when the bill comes in.

Sign up for a student credit card.

The sign up rules for student cards are a little easier when they apply because credit card companies know student have little or no income. If they can be approved for the card on their own credit rating is always better. Never co-sign for their first card or any other credit application. You would be totally responsible if the student refused to pay the bill.

Almost half of all college students have a card of their own. Only 36% of students carry a balance from month to month, says Student Monitor, a market-research firm, but the average balance this year rose 35%, to $695, from 2010. Also many cards offer a reward system which could encourage more spending. Remember interest rates for student cards are usually higher.

With the student credit card, both sides of the process are able to be experienced, the credit card use and the receiving of the monthly statement. If they are responsible, they will grow an appreciation of the interest charges and how much of their money goes to pay it. The downside is they could run the card to it's limit and pay heavy fees for not paying on time or going over the limit.

Use a prepaid card.

A prepaid card is the best of both worlds. Here the student can not over spend and get into serious debt. Only money deposited on the card can be used to charge purchases. It's the reverse of the average credit card where you charge first and then pay the bill. A prepaid card makes you pay first when you load the card and then later use the card till the money is gone. Here a secondary lesson of budgeting your money has to occur or the student will have used up all their money before it can be refilled again.

In a prepaid card you have the smart way to teach the credit card lessons, it's almost like the real credit card. It's a safe way to get the job done. It will work overall but when a unforeseen incident happens and a larger expense needs to be paid, the prepaid card will not be able to cover it immediately.

You must decide the proper use of the credit card with your child. Will it be for everyday expenses or is it for that unexpected emergency. Remember good communication throughout the process is key. Use this experience to teach the benefits and problems associated with credit cards. Most importantly teach them it's OK to not have a credit card and that they can function just fine only using cash.

The New Retirement versus The Old Fashioned Retirement - How Is It Changing?

It looks like the old fashioned retirement is just a pipe dream for many. Dreams of retiring to a care free life after many years of working are going up in smoke. The bad economy and decreases in your retirement investment balances are just some of the reasons. The rising costs of daily life with the additional rising costs of health care are causing many to postpone or even cancel retirement.

My father's generation looked at retirement as working as long as you physically could and then sitting on the porch waiting for the inevitable. Well, things have changed. Today's retirement will be different for many reasons, and as the leading edge of the baby boomers trade in their work shoes for golf shoes, let's take a look at why their retirement plans will be different.

Even 30 years ago, the norm was to work until 65, retire and die less than 10 years later. Retirement was a short period that was relatively easier to fund and was often with the assistance of a company pension plan. New retirees are now living longer, are more active and will be busier. The goal will be to experience all of those things they did not have the time or money to do while working.

Advances in medical science are allowing us to live longer and in better general health. But, all this can add up to a more expensive retirement. Many people find themselves busier in retirement than they were before at work. "Retirement" could now last 20 to 30 years and it is entirely possible that you could spend more time in retirement than you did in the workforce, and we need to finance that extra time.

For those struggling to make ends meet with their current retirement income, part-time work may be essential. It is amazing how earning even a modest income in retirement will stretch your nest egg by reducing draws from your savings.

My grandparent's generation did not plan very many Caribbean vacations or Disney cruises with the kids while they were working. People are re-evaluating their work-life balance and opting to enjoy life to the fullest while their health is good and they are physically able to do what they want. Phased retirement may not only be good for retirees, but good for the economy. The sheer numbers of baby boomers moving into retirement will create strains on the workforce as fewer workers will be available to replace those moving on. Employers will need to find creative ways to keep older workers engaged and around to pass on valuable skills. I expect to see a rise in part-time employment, flexible work times and job sharing to accommodate these workers in transition.

The idea a working retirement is starting to become the norm because many have failed to plan and many plans have failed to bare fruit. Finding ways to save on living expenses and implementing new part time sources of income are the only way to save retirement for many.

Living longer and healthier has become a blessing and a curse. Mom and Dad didn't worry as much about money as we do now. Because today all the things like cell phones, computers, and other things we spend money on, they didn't have.

Retirement means different things to different people and a healthier much more balanced lifestyle is the goal for many. You will need to determine what is important to you, decide what "your retirement" will look like and plan to make it happen.

Will Hurricane Irene Have Any Effect On Insurance Rates

Image via WikipediaWhile many people in the North East are cleaning up the mess that hurricane Irene left, many of them are wondering what this will do to the rates they pay on the homeowners insurance. In Florida we managed to avoid serious damage from the recent storm. By law, insurers can not hike rates because of financial issues caused by losses in other states.

Florida isn't the only state having trouble with hurricane insurance. Also North Carolina, New Jersey, and Connecticut are having troubles with their insurers leaving the state. Many of these states have formed state sponsored homeowners insurance companies to fill in the gaps of insurance companies failing to provide coverage to the states homeowners.

Many states with long coastlines like New Jersey and Connecticut are in the same shape as Florida. Connecticut has in common with Florida a large percentage of its population living in coastal areas. Florida has 79 percent of its population living on the coast while Connecticut has 65 percent of its people living on the coast.

Don Brown, former Florida State Representative and Senior Fellow at The Heartland Institute and former state legislator who was chairman of the House Insurance Committee and is a noted national insurance expert, said since Irene missed Florida and aimed its fury to the north, any impact on higher rates would be because of reinsurance.

“You might see some upward pressure on reinsurance,” Brown said. “It’s unlikely there would be any immediate impact. It would down the road.” 

Reinsurance: is insurance that is purchased by one insurance company from another for risk management, transferring risk from the insurer to the reinsurer. 

So National insurance companies will have to pay more to other insurance companies who help in sharing the risk. If there wasn't reinsurance, we would all have to pay a much larger insurance premium.

The bottom line is insurers are not going to eat the costs of higher reinsurance costs. Sooner or later they will pass the costs down to the consumer. The days of cheap homeowners insurance died the day hurricane Andrew hit Homestead and wiped it out.


Having proper homeowners coverage means you need check your policy to see if your under or over insured. Check your policy for coverage due to storm wind damage. Also check to see if you need flood insurance.

How To File A Flood Insurance Claim

Irene's path up the Eastern coast of the U.S. has done major damage and left many people with flooded homes. Even in communities that never experienced flooding this bad before, have damage. The New England states have reported flooding in places where there has never been any. If your home is flooded, what should you do next? According to the National Flood Insurance Program's website Floodsmart.gov you can file your flood insurance claim by following these three steps:

STEP ONE:

After experiencing a flood, contact your agent or insurance company to file a claim. An adjuster should contact you within a few days of filing your claim. If you do not hear from an adjuster, you can contact your insurance agent or company again. Make sure you have the following information handy:

• The name of your insurance company
• Your policy number
• A telephone and/or email address where you can be reached at all times

STEP TWO:

Separate damaged from undamaged property. Your adjuster will need evidence of the damage to your home and possessions to prepare your repair estimate.

• Take photographs of all of the damaged property, including discarded objects, structural damage, and standing floodwater levels.
• Make a list of damaged or lost items and include their date of purchase, value, and receipts, if possible.
• Officials may require disposal of damaged items so, if possible, place flooded items outside of the home.

STEP THREE:

Your adjuster will provide you a Proof of Loss form for your official claim for damages. You'll need to file this claim with your insurance company within 60 days of the flood. This document substantiates the insurance claim and is required before the National Flood Insurance Program (NFIP) or insurance company can make payment.

You'll receive your claim payment after you and the insurer agree on the amount of damages and the insurer has your complete, accurate, and signed Proof of Loss form. If major catastrophic flooding occurs, it may take longer to process claims and make payments because of the sheer number of claims submitted.


Flood insurance has become as important as standard homeowners insurance. As the residents of New Orleans found out the hard way.