- Getting ready to go build a rain gauge at home depot with the kids. #
- RT @hughdeburgh: "Having children makes you no more a parent than having a piano makes you a pianist." ~ Michael Levine #
- RT @wisebread: Wow! Major food recall that touches so many pantry items. Check your cupboards NOW! http://bit.ly/c5wJh6 #
- Baby just said "coffin" for the first time. #feelingaddams #
- @TheLeanTimes I have an awesome recipe for pizza dough…at home. We make it once per week. I'll share later. in reply to TheLeanTimes #
- RT @bargainr: 9 minute, well-reasoned video on why we should repeal marijuana prohibition by Judge Jim Gray http://bit.ly/cKNYkQ plz watch #
- RT @jdroth: Brilliant post from Trent at The Simple Dollar: http://bit.ly/c6BWMs — All about dreams and why we don't pursue them. #
- Pizza dough: add garlic powder and Ital. Seasoning http://tweetphoto.com/13861829 #
- @TheLeanTimes: Pizza dough: add lots of garlic powder and Ital. Seasoning to this: http://tweetphoto.com/13861829 #
- RT @flexo: "Genesis. Exorcist. Leviathan. Deu… The Right Thing…" #
- @TheLeanTimes Once, for at least 3 hours. Knead it hard and use more garlic powder tha you think you need. 🙂 in reply to TheLeanTimes #
- Google is now hosting Popular Science archives. http://su.pr/1bMs77 #
- RT @wisebread 6 Slick Tools to Save Money on Car Repairs http://bit.ly/cUbjZG #
- @BudgetsAreSexy I filed federal last week, haven't bothered filing state, yet. Guess which one is paying me and which one wants more money. in reply to BudgetsAreSexy #
- RT @ChristianPF is giving away a Lifetime Membership to Dave Ramsey’s Financial Peace University! RT to enter to win… http://su.pr/2lEXIT #
- RT @MoneyCrashers: 4 Reasons To Choose Community College Out Of High School. http://ow.ly/16MoNX #
- RT @hughdeburgh:"When it comes to a happy marriage,sex is cornerstone content.Its what separates spouses from friends." SimpleMarriage.net #
- RT @tferriss: So true. "Nearly all men can stand adversity, but if you want to test a man's character, give him power." – Abraham Lincoln #
- RT @hughdeburgh: "The most important thing that parents can teach their children is how to get along without them." ~ Frank A. Clark #
Pros and Cons of Cashback Credit Cards
The news that the Bank of America is introducing a cashback credit card is of little surprise. The credit card industry is competitive and customers enjoy the thought of earning while they are spending!
There are both pros and cons of cashback credit cards however and they are not suitable for every circumstance. So, before committing to a card, consider the advantages and disadvantages.
Firstly, cashback cards can be financially profitable but this depends on whether you have the funds to make the repayments. If you are having difficulties with debt, these cards are probably not the most suitable.
The strategies for maximizing your benefits from cashback credit cards depend on making repayment deadlines. Prioritize cards that have a 0% APR introductory rate.
If you can make your repayments within this 0% interest rate, or on time each month, you will not incur any interest charges. It is important to be organized so that you always meet repayment dates.
Once the 0% APR has finished, cashback credit cards will often then revert to a high APR. If you cannot pay all your debt, these charges will mount up quickly.
If this is likely to happen to you, consider looking at alternative cards with a low but constant APR, so that you do not encounter such high charges while repaying your debt.
Cashback cards are not always the smartest move financially when it comes to outstanding debt. Although they may offer a 0% balance transfer, this is not always as simple as it sounds.
If you transfer an outstanding balance to a new card, even with a 0% APR introductory period, any repayments made will be charged against your newest purchases.
This means that it is more difficult to pay off the original balance transfer if you are also using the card to purchase new items and of course, it is very tempting to do so as you have the 0% APR available.
Be aware that if you do not pay the balance transfer amount by the end of the 0% period, you will then have to pay a much higher rate on this amount.
So you either need to be sure that you can pay off the balance transfer in full in addition to new purchases or consider using a separate card just for a balance transfer.
Although this may seem more work, it can potentially save you a great deal of money in interest charges. Remember any credit card is only worthwhile if it helps you manage your money.
Some cashback cards also have a minimum spend requirement and often this is paired with a specific time frame. Read all the criteria about the card before committing to it.
Otherwise, you could be charged for not reaching the minimum spend limit or not doing so within the required time frame. Consider these issues when choosing a card.
Cashback cards can be very useful and allow you to earn money while you are spending, but they need to be used with wisdom. Research your options to ensure you select the right card for you.
Post by MoneySupermarket.
Why I Hate Payday Loans
I hate payday loans and payday lenders.
The way a way a payday loan works is that you go into a payday lender and you sign a check for the amount you want to borrow, plus their fee. They give you money that you don’t have to pay back until payday. It’s generally a two-week loan.
Now, this two week loan comes with a fee, so if you want to borrow $100, they’ll charge you a $25 fee, plus a percent of the total loan, so for that $100 loan, you’ll have to pay back $128.28.
That’s only 28% of actual interest; that’s not terrible. However, if you prorate that to figure the APR, which is what everyone means when they say “I’ve got a 7% interest rate”, it comes out to 737%. That’s nuts.
They are a very bad financial plan.
Those loans may save you from an overdraft fee, but they’ll cost almost as much as an overdraft fee, and the way they are rigged–with high fees, due on payday–you’re more likely to need another one soon. They are structured to keep you from ever getting out from under the payday loan cycle.
For those reasons, I consider payday loan companies to be slimy. Look at any of their sites. Almost none are upfront about the total cost of the loan.
So I don’t take their ads. When an advertiser contacts me, my rate sheet says very clealy that I will not take payday loan ads. The reason for that is–in my mind–when I accept an advertiser, I am–in some form–endorsing that company, or at least, I am agreeing that they are a legitimate business and I am helping them conduct that business.
In all of the time I’ve been taking ads, I’ve made exactly one exception to that rule. On the front page of that advertiser’s website, they had the prorated APR in bright, bold red letters. It was still a really bad deal, but with that level of disclosure, I felt comfortable that nobody would click through and sign up without knowing what they were getting into. That was a payday lender with integrity, as oxymoronic as that sounds.
How devalued dollars can hit you in the pocket
The Bretton Woods Conference started the system now known as fixed rate exchange. After the 1944 conference, theUnited Statesattached dollars to gold with one ounce of
gold equal to $35.
The process changed in the 1970s, due to problems with inflation and currencies from other countries. The financial system of any country relates to the law of supply and demand.
As the demand for currency increases, the system undergoes appreciation. When the demand for currency drops, the system goes through depreciation. A country can devalue its currency based on lower demand.
For example, a country might equate 20 of its own currency for one American dollar. After the market fluctuates, the country devalues its money, making 40 of its currency equal to a single American dollar.
Devalued currency occurs in theUnited Statesduring periods of debt or recession. The government prints more money, which is worth less.
The country must have a way of covering its debts, such as with gold. If the country lacks adequate funds, the paper currency is essentially worthless.
A good example of this occurred during the American Civil War. The Confederates printed its own Confederate money. Once the war ended, the devalued money was worth nothing. Even today, the money only has a slight historical value.
American debt rises when the country goes through a recession or depression.Franceunderwent such a change when the country increased minimum wages and benefits for the working class.
The national debt continued rising and the country had no funds to pay back that debt. Fortunately, comparison sites like MoneySupermarket can help you find the best ways to save and make the most of your money when the value of American dollars drops.
Devalued dollars affect you because it reduces the amount of goods and services you can afford. Even simple things, such as buying car insurance or saving money takes more than it did before.
Devalued dollars increase inflation. As the country pumps out more money, stores and businesses increase prices.
You spend more money on the things you need every day, only to find yourself in debt once inflation ends. TheUnited Statesdevalued the dollar in the 1970s and again in 2001. During the 1970s, inflation hit gas stations particularly hard, leading to markups on gas prices and an overall gas shortage.
The 2001 inflation came with increased housing prices, car prices and food prices. Once the bottom fell out, millions of Americans found themselves further in debt. The devalued dollar affects you because it increases costs.
The value of gold, copper, silver and platinum rises, which in turns increases the prices of any items using those metals. Electronics, vehicles, construction and even jewelry prices increase.
Maximize your dollar amount now by saving money on travel expenses, home utilities and anything else you use on a daily basis. Reduce your overall costs before supply and demand causes a drop in the dollar value.
Anytime you use money, including paying student loan bills or insurance bills, you risk spending more than you should. As the dollar value drops, you will find yourself paying even more.
Brought to you by MoneySupermarket.
Huh?
Am I the only one who just noticed that it’s Wednesday? The holiday week with the free day is completely screwing me up.
Just to make this a relevant post:
Spend less!
Save more!
Invest!
Wee!
Debanking
I’m overbanked.
The National Bank, Oamaru, built 1871: a prostyle Palladian portico on a neoclassical facade (Photo credit: Wikipedia)I’ve mentioned that before.
I won’t give up my herd of CapitalOne 360 accounts. I use those to track my savings goals, all 17 of them. I can’t drop my business accounts, my kids’ savings accounts, or the personal accounts that I actually use to spend money.
I do, however, need to simplify a bit.
Last month, I went through the hassle of transferring my 401k from two jobs ago and my IRA from my last job. Now, I’m down to just two retirement accounts. One is for my current job, and the other is a self-managed IRA with Sharebuilder.
Two down.
A few months ago, I went to yet another bank to close an account. My last job offered crappy health insurance, but balanced it out with an HSA. It complicated things, but the actual costs came to almost the same as the previous plan that didn’t have a high deductible. When I left, my HSA just sat there.
Last year, my oldest got braces, so I cleaned out the HSA ahead of time so we could pay up front and save 5% without paying interest.
Another one down.
That’s three accounts down out of 34.
Thirty-four?
Crap. That’s retirement accounts, business accounts, and personal accounts for two adults and three kids.
Bank 1 has the checking account we use, plus two savings accounts, one of which is where we store the rent money until we take a payday.
Bank 2 has a checking account, 16 savings accounts, and stock-trading account, a CD, and two IRAs for my wife and I.
Bank 3 has a checking account, and savings account for each of two businesses I own, a spare set of personal accounts, a savings account for each of the kids, and a checking account for my teenager.
Bank 4 holds nothing but my current 401k.
The only thing I can simplify without sacrificing my organizational jungle is to combine the personal accounts from bank 1 and 3. The problem is that Bank 1 has all of my bill pay information and there is still an account open for my mother-in-law’s estate. We keep that open just in case we find any other checks we need to cash. Bank 3 has my business accounts tied to my personal account and is the bank that my business partner uses, so that’s convenient to move money around.
I may be stuck.