by The Smarter Wallet on March 3, 2010
| 5 comments
When I read this article on how our health care system was frittering away money, it annoyed me to no end. I’m one of those people who feels I’ve done a lot of things right when it comes to personal finance, but I have an Achilles’ heel — it’s the necessary spending that I’ve had to do to ensure the good health of my family. You see, when it comes to one’s health, there’s a lot of things here that can be out of our control — accidents happen, infections happen, and even incurable diseases can alight upon you one day when you least suspect it and change your life forever. No matter how much saving, investing and earning you’ve done in your life, you may end up having to spend your hard-earned money on ridiculous things such as $1,000 tooth brushes and $140 tylenol pills, if you aren’t careful. And this is through no fault of your own.
I may sometimes come across as someone with a morbid sense of humor (black humor is my defense mechanism and my way of coping with tough issues), but I’ve always believed that if you’re a resident of the United States, one of the best ways to preserve your net worth is to simply STAY HEALTHY. Time and time again, I’ve seen the sick in this country suffer all the more — not just from their health problems, but also due to the games that health insurance companies and the medical industry play. I’ve read that the #1 cause of bankruptcy for many households is ill health, especially when it’s experienced by the breadwinners of the family.
[click to continue…]
by Jacques Sprenger on March 2, 2010
| Comment
I wish somebody had given me some advice when I first settled in the U.S. I landed here in the early 60’s. Instead, I had to fend for myself during the mini-depression of those days jumping at any opportunity to work. Then, of course, Uncle Sam came visiting (the draft was on) and I spent a few years in uniform hurrying and waiting as is the norm in any army. Whether you are just graduating from high school or college, you are facing the same difficult employment situation and there are a few facts you should know, “ye impatient youngsters.”
5 Career Planning Tips For College Graduates
1. The most important value is not to feel entitled. Just because you came out of a good school doesn’t mean automatic job offers will be piling up in your mail box. The opposite is also true; if you graduated from a regular school that’s not on the excellence map, do not feel that you’ll only get crappy jobs.
2. Focus on one particular skill. When I first arrived in the United States, I had no special ability and my English was suspect at best. As expected, the jobs I encountered were at the lowest level of pay and position, though I was grateful to have one at all. If you jump into the job market with only a general diploma, the same thing will happen to you. Develop one particular skill (we all have one at least) and take additional classes or training, even if you are already working. Some of my high school graduates (I am a teacher) have a knack for all things mechanical, so I advise them to concentrate on one particular area such as aviation, where salaries are higher. Another option is to join the Armed Forces or the National Guard and get a free specialization.
[click to continue…]
Should you give up credit cards? Some thoughts on this.
I’ve long been a proponent of the responsible use of credit cards. I’ve written articles about using your credit card to stockpile rewards points, build good credit, and learn how to spend responsibly. I wouldn’t recommend anything that I’m not doing myself. I can report that I have used my credit cards for just those purposes.
The Total Money Makeover and The Cash Only Diet
I now have to admit that I’m no longer so sure that I’m right. I’ve been reading Dave Ramsey’s book, “The Total Money Makeover”. He makes some very compelling arguments against the use of credit cards and if we look outside of his book for some statistics, it’s hard to say that he’s wrong. According to the Federal Reserve, 78% of all households have credit cards and of those 78%, 60% are holding a balance. These statistics tell me two things: First, credit cards are a way of life. They are ingrained in our society just as fast food and baseball. Second, for every 10 people you and I see each day, 6 of those have credit card debt. 60% of our country is purchasing what they cannot afford. Something seems wrong with that.
People like me have advised using credit cards to build rewards points and have suggested using 0% balance transfer credit cards to lower one’s debt load. Seems okay if the balance is paid in full each month. Dave Ramsey cites a study that shows that we spend more money when we use credit cards instead of cash. Cash is more tangible and we’re less happy about parting with it. Most households need to spend less. Maybe using cash is not such a bad idea.
[click to continue…]
by The Smarter Wallet on February 26, 2010
| 8 comments
Welcome to the February 26, 2010 Edition #130 of the Carnival of Financial Planning.
The Carnival of Financial Planning takes a long-term view of personal financial planning for individuals and families. We focus on efficient and sustainable personal financial planning practices that can lead to lifetime financial security.
This edition is arranged by subject heading, so that you can browse efficiently.
Enjoy!
The Skilled Investor, Editor
Budgeting
Joe Plemon presents Budgeting Without Bean Counting…5 Great Tips posted at Personal Finance By The Book, saying, “Making a budget isn’t the problem; keeping it is. This post gives common sense hints on how to keep a budget for the long term.”
PT presents 4 Rules to Budget By posted at Prime Time Money.
Super Saver presents Living on a Cash Basis was a Good Experience posted at My Wealth Builder, saying, “Living on a cash basis quickly taught me financial responsibility.”
Lakita presents Automated Payments vs Online Bill Pay posted at Personal Finance Journey, saying, “Automatic Payments and Online Bill pay are both paperless, but the similarities end there. One shifts control of your money to the collector while removing the task of making payments…the other keeps you in control. Which do you prefer?”
[click to continue…]
by The Smarter Wallet on February 24, 2010
| 1 comment
Heard about the latest online happening in the personal finance blogosphere? Check out the Plutus Awards, an event that honors some of the top personal finance blogs and financial products and services that have a presence on the Internet. We’re proud to mention that our sister blog, The Digerati Life is up for Best Personal Finance Blog for Careers. We’d appreciate your support and hope that you vote!
Now to do the rounds of the personal finance blogosphere ourselves! Here are a few places that feature The Smarter Wallet time and again, as well as sites we like.
Personal Finance Articles
Are you built to run a business or are you an unintentional entrepreneur?
Whether entrepreneurs are born or made is one of those popular questions with a myriad of reasonable answers. A question such as this brings to mind the age-old inquiry about successful parenting and whether one’s destiny is due to nature or nurture.
On Becoming An Entrepreneur: Are They Born or Made?
This idea will be explored in a book that’s due to be released. The debate is sure to fire up when “Born Entrepreneurs, Born Leaders: How Your Genes Affects Your Work Life” hits the shelves. Scott Shane and his colleagues at Case Western Reserve University made the book possible.
Shane and fellow researchers studied the entrepreneurial activity of 870 pairs of identical twins and 857 pairs of fraternal twins. Identical twins share 100% of their genes, while fraternal twins share 50%. Interestingly, their studies revealed that 40% of entrepreneurs are born and 60% of entrepreneurs are made.
[click to continue…]
by Todd Smith on February 22, 2010
| 1 comment
Have you received a bonus this year? Or, are you one of the millions who are unemployed at this time? There has been so much hype about company bonuses in the last year that this country seems to have become an anti-bonus citizenry. Sure, I agree that companies being subsidized by the government to avoid bankruptcy (and an even greater economic fallout) should not be paying exorbitant bonuses. But really, is anyone else sick of hearing about how bad the economy is, and what is or isn’t fair?
Let’s face it; this country was built, among other things, on the premise of free ideas, enterprise, and capitalism. Anyone who disagrees with that should re-evaluate their definition of the “American dream” and what the modern market economy means. It seems that a lot of what we enjoy today, we owe to one of the strongest economies in the world, which is consequently built upon our ability to work hard, to allow free market capitalism to do its thing, and to innovate. When did we come to be a country of whiners looking for the next scapegoat on whom to blame our financial woes? Companies and employees of companies go to work to make a profit (don’t you?). That’s what keeps the economy going. And, like it or not, bonuses are part of that process.
[click to continue…]
by Millie Kay G. on February 19, 2010
| 1 comment
optionsXpress is an online stock broker that’s become more popular over the last few years. They’ve also been given a “Best Online Broker” designation by Barron’s for 4 years. Today, I’ll take a closer look at what optionsXpress can do for new customers.
Since many investors have more than one area of interest, optionsXpress seems convenient because you can manage options, stocks, futures, ETFs, bonds, and mutual funds under one account.
Tip: There’s an ongoing
broker promotion at optionsXpress right now. As a new investor, you can receive a $100 cash bonus if you open an account with them
through this link.
optionsXpress Review: Top Broker for Stock & Options Traders
To get you started, there are tools to help you find the right investments for you, a lot of which have interesting names. These tools include The Dragon, which searches the market for top stocks and options based on categories of your choosing. You can also seek out options through StrategyScan, which will pull up to three options based on your preferences. There’s also a calendar section so you can have an overview of your trading schedule, and a screener to narrow down your choices.
For analysis tools, you can track options or stocks with Watch Lists; learn more about particular options or stocks with Quote Detail; use the Options Pricer to determine an options’ potential risk; or use the Trade & Margin Calculator to help try to forecast potential losses or profits.
When you’re ready to trade, you can benefit from the Xspreads Spread Book, which can connect you with buyers and sellers, and free Streaming Quotes, so you can track your progress and view quotes and chains.
[click to continue…]
