Washington's Debt Crisis Is Over With Social Security and Medicare Spared - For Now

Image via WikipediaThe Congress and the President have come together and deflected the debt crisis. They have worked out a solution that both parties can hold their noses and live with. These last two months have been nerve racking for the folks dependent on Social Security. Not only for them, but the rest of the country is finally seeing how close we are to the precipice of default.

Unconscionable spending over the last 30 years by both parties has led to an environment of thoughtless borrowing. President Obama is the unfortunate president who will take the brunt of the anger of the American people over this insane borrowing and deficit. Luckily for him, the deal that was worked out will spare him another debt crisis before the next election. But before the end of 2012, we will be back where we started.

One point of the debt deal that was made is, Social Security and Medicare are off the table on budget cuts. This is not forever and when the next round of deficit discussions come around Social Security and Medicare could be on the chopping block. The gloves are off for Social Security activists and recipients. They will have to fight long and hard to keep their benefits in the years ahead. It' almost funny that our so called guaranteed benefits will have to be fought for.

What happened to the sacred promise made to the American people by our government about the Social Security Trust Fund. It seems with the stroke of the pen all that could be over. Washington says they might have to reduce benefits to keep the fund viable.

All Americans have paid faithfully to the Social Security Fund only to have it mishandled and raided for it's funds over the years. Now the raiders want to balance the budget on the backs of retiree's. We all know that Social Security and Medicare have not caused this economic crisis and we do not support cutting these programs to pay down the debt. Then why are important programs on the table as bargaining chips as a way to balance the budget?

For over three decades, millions of older Americans have counted on annual Social Security benefit increases to help them afford their basic needs. Unfortunately, the benefits they've earned will again be frozen next year, leaving millions who are struggling in this economy without money they depend on to make ends meet.

I suggest you contact your representatives in Washington DC and let your voices be heard on this matter.

Click Here for a list of your Representatives Email and Phone numbers.

Before Buying A House Try A Financial Dress Rehearsal

Image via WikipediaYou have heard it all before, don't waste your money on renting, buy a house and pay yourself. Owning a house is one of the greatest pleasures you can have. Your place, with your name on the deed, there is no better feeling. I have owned two homes in my life and would highly recommend it. 

But what I wouldn't recommend is all the money it costs to own a house. You can never fully plan for all that will go wrong in your home. Whether it's the water heater leaking, the roof leaking, or the constant upkeep; sometimes you may wish you were back in that no maintenance apartment.

When buying a home there are many things to be considered. You need good credit. You need a down payment. You have to know the housing market so you don't over pay. That's just for starters, the real challenges begin when you move in.

I am the type of person who can sit down and write up a monthly budget with no problem. The numbers come easily after doing it for so long. I know my expenses and my income. It's easy to do because I know what I need to budget for. When you buy a home you are faced with the unknown of what to get ready for. Things will eventually break or need maintenance. It's not, if it will break, but when will it break.

Many people buy that first home and really don't know what they are getting into financially. So why not do a dress rehearsal to see how it could all fold out.

Make a list of all the new expenses you will have when owning your home. Find a perspective home you would probably purchase and use a mortgage calculator to figure out the payment. Add to it what the insurance, taxes, and expenses of owning that home. Take that number and subtract your current monthly rent. Are you able to save that amount every month for two years. If you can't save that amount every month, then you are not ready to buy a house.

Most people believe they can afford the monthly payment and all the extra expenses. It's true some people will be able to afford it, today. But in five years from now, what will be the expenses? They will surely be more. With a home being larger than your apartment, you will have the expense of more furniture and electric. Your yard will be bigger and your responsibility to maintain. What about a nice pool for the kids to swim in during the hot summer days. Don't forget the chlorine and other maintenance items.

You finally have that nice house all fixed up and decorated, but it's empty, it needs the sound of little feet running through it. Now the children start to arrive. Now your costs are rising and seem to never end.

A house is a big expensive financial burden that can sneak up on you with unforeseen expenses. Before you take the big leap into purchasing one, sit down and make a list of what it will REALLY cost you every month and year. Actually put the money aside with a phantom house budget and see if it will really work for you.

Citi's Simplicity No-Penalty, No-Fee Credit Card: HUH!

Citigroup has launched a credit card that combines the three most requested benefits, card holders have been requesting. They are not late fees, no penalty interest rate, and a single interest rate for purchases, balance transfers, and cash advances.

The new Simplicity card will be sold as a way for busy people with busy schedules who want a credit card with simple terms, said Jud Linville, CEO of Citi Cards. “It lets them not have to worry that they’re going to be late on a payment. It provides some flexibility,’’ he said.

It sound like a good deal at first, but this new card comes with an interest rate 16.99 percent interest. The national average interest rate is 14.40% according to Bankrate.com. If you carry a balance, the extra conveniences may not out way the higher interest rate. But if you're prone to have late payments, you won't be penalized a late fee, which could range from $35 to $45 dollars. At least with the higher interest you know every month what you will be paying. Also if you are already paying a high monthly interest already, another percent or two makes very little difference.

No Late Fees?

The no late fee feature is an uncommon occurrence in the world of credit cards. Cardhub.com states that only 5% of credit cards do not charge a late fee and only 8% of cards charge a single interest rate for purchases, balance transfers and cash advances.

The Simplicity card also doesn’t offer any rewards, which can be a deal breaker for some. Or it may turn out you won’t qualify for the card. Citi declined to specify what type of credit background is required. But CardHub.com, which lets consumers search and compare card offers, lists the Simplicity card for those with “excellent’’ scores of 720 or higher.

Citi has revamped this card to coincide with the new regulations coming out of the Consumer Financial Protection Bureau. Many credit cards will be moving to these types features. They will be losing quite a bit money in cutting these fees so with the interest rate increase they will be making it up in some way.

The upside to this card is the elimination of theses pesky fees. If you carry a balance you will have to deal with the higher interest rates. If you pay off your credit card bill every month you will never have to pay a fee, even if you are late on a payment. It's a good deal if you don't carry a balance.

Kidflation Affects The Children With Higher Prices At The Candy Store

Image via WikipediaMom and Dad think they have it bad, with paying $4.00 for gas to go to the supermarket to shop for ever rising food prices. Kids have it rough too in this economic downturn. While adults are feeling retail prices increasing 8.5%, kids are feeling it worse in the pocket book with a rise of 14.3% for the things they need to buy.

Typical costs for kid purchases of sweets and candy have risen 24% on average. Soft drinks are up 16% and kids clothing is also up 17%. To make matters worse for the kids, Mom and Dad are handing out less and less pocket money. Some parents have reduced or eliminated giving the kids their pocket money. Though many parents are making the kids earn their extra money by taking on additional chores around the house.

This terrible affect of the recession on kids has helped them learn the cold hard facts of life. They are learning money is finite and you have to work for the money you receive. Today's kids have many more hands out for their money. Also income from jobs and chores have not kept up with the prices. If they have jobs they are probably receiving the minimum wage. With expensive gas, movie tickets, clothes and cell phones the kids are having a hard time making ends meet.

The high cost of video games is affecting junior's pocket book. The average new, must have video game sells for $50. Being in the baby boomer generation, thinking of spending $50 on toys when I was young, Mom and Dad would of thought I was crazy to spend that much.

Teach good lessons

All this spending can be used to teach good economic behavior to your children. Teaching wants verse needs is a lesson that can be taught at a young age. This kind of lesson probably will have to be taught again and again depending on the maturity level of the child.

Teach how money is earned

Handing the kids an allowance is not a good idea because it teaches money is free with no action taken by the child to receive it. Rather teach the child to work for their allowance by doing chores around the house. Linking their regular chores with the money teaches WORK = MONEY. If you get that lesson into that head of mush it will be the best thing you can do for your child.

Teach how money is used

When they finally receive their money they must be taught how to make financial decisions in life. This is the parents time to guide the youth in making good spending decisions. Eventually they will be on their own and you won't have this influence anymore. The kids should learn to spend and save for future spending. Eventually, you should not be paying for everything. So start by keeping things simple. Kids (via their allowance) pay for the wants (toys, snacks, gifts for friends). Parents pay for needs (school supplies, Grandpa’s birthday present) and the expenses that are random or unpredictable (class trips). Of course, it’s still your money. But transferring the responsibility for those expenses to the child gives them the chance to learn to budget and save and make wise choices.

Learn to let go.

You have taught them how to spend now step back and let them try it out. If they do well with their spending you have accomplished a lot. If they fail miserably you have an opportunity to use the failure to teach a lesson. Remember this is a process. As their maturity level rises, or doesn't rise, you will have to at time step in and reinforce the lessons not quite learned yet.

Learnvest.com Is A Mint.com For Women, Only Better

Image by Courtbean via FlickrLearnvest.com is a personal finance site for women. It's been around since 2009 but a recent cash infusion of $19 million dollars has allowed it to really become a real player in the financial aggregator field. It's trying to be a Mint.com for women. 


It was founded by entrepreneur Alexa Von Tobel, who wanted to design a website attuned to the financial needs of women. Learnvest.com, which has one million users, is launching My Money Center, which like Mint.com, allows women to aggregate all of their financial accounts, such as bills, credit cards, checking accounts, savings, 401K and more, to give users a comprehensive view into the health of their finances. Members can link all of their accounts into a Financial Inbox, which allows them to track their spending.


What sets it apart from similar websites is it's offering personalized financial advice via the LearnVest Advice Center, in which members can submit questions focused on their own financial situations and will receive a tailored response within a matter of hours. This is included in LearnVest’s premium membership, which costs $4.99 per day, $39.99 for three months and $129.99 for a year. The Advice Center also offers access to LearnVest Courses, which help women create a financial plan.

The word learn is in Learnvest because the founder of the website feels education is an integral part of being successful with your money. To help in this goal Learnvest has "BootCamps" where over a period of time you are educated in basic financial subjects. The three online programs, include a Financial Basics Bootcamp, Cut Your Costs Bootcamp, and Investing Bootcamp. Instead of creating a book-like online experience, LearnVest is making email newsletters the foundation of the educational sessions.

The integration between the bootcamp educational sessions and the user’s LearnVest profile is key to the success of the initiative.

Von Tobel explains, women need more tailored financial products in the same way that women join female-focused gyms. It’s about building sound financial habits, she explains, and a more personalized, tailored approach helps this.

There is a promo code, courtesy of Techcrunch.com, for a free one day pass for the premium service. Just enter the code ‘tc2011′ in the next week when signing up. Also there is another free day pass code "daypass2011", good till August 2.

Supplementing Your Income with a Part Time Real Estate Business

This is a guest post by Jeffry Evans, licensed real estate agent.

If you are approaching or are in retirement, or simply want to have a little extra money come in here or there, then pursuing real estate as a side career part time might be just the thing to do. Out of all the things I can think of, it's hard to think of one job where you can make a few thousand dollars, with just a few hours of work and all from your home (or office, if you prefer).

                                

The typical real estate contract pays some 5-6%, and the paperwork to complete it is just several pages long, and often promulgated by a state body, such as a real estate commission or association of Realtors. This makes the technical part of being a real estate agent easy. So it really just comes down to getting your license, and working with buyers and sellers.

Getting Your Real Estate License

To become legally able to act as a real estate agent, you'll have to get licensed. Each state varies slightly on the steps to becoming an agent, but they all following the same basic steps. First, you'll have to have some education. There are many companies, both online and offline, that can deliver a custom package of real estate education to you.

Once you have completed the courses, you'll have to pass a state exam. Once that's passed, you need to deliver the paperwork, and any background checks the state requires. Then you'll need to partner with a local broker, until you become a broker yourself (and you don't have to, you can stay under another broker indefinitely). Once the state acknowledges you partnership, you are ready to begin helping buyers and sellers.

Becoming Successful and Making Some Money

Now that you have your license, your focus needs to shift to finding and helping interested parties. Starting a website is the best approach, because over 80 percent of home buyers begin their search online. Be sure to get a website that you can list properties on, and then begin promoting your site out through social networks like Twitter, Facebook, and LinkedIn.

Start searching online for other websites that have something to do with real estate and/or finance. Partner with them to deliver helpful content that their visitors can use. In return, you'll get creditability and visitors to your site. This is the vital part of the process called real estate internet marketing.

If you consistently publish quality work that is helpful to online home searchers, you'll soon find that you have prospects that want you to help them find their next home. When they do, all you have to do is use the MLS and any other means you have of finding properties to locate and show your new prospect homes that fit their desires.

Be as helpful as you can, and you'll end up with more business than your competitors, and a nice supplemental income, that doesn't cost you all of your time.