- Guide to finding cheap airfare: http://su.pr/2pyOIq #
- As part of my effort to improve every part of my life, I have decided to get back in shape. Twelve years ago, I wor… http://su.pr/6HO81g #
- While jogging with my wife a few days ago, we had a conversation that we haven’t had in years. We discussed ou… http://su.pr/2n9hjj #
- In April, my wife and I decided that debt was done. We have hopefully closed that chapter in our lives. I borrowed… http://su.pr/19j98f #
- Arrrgh! Double-posts irritate me. Especially separated by 6 hours. #
- My problem lies in reconciling my gross habits with my net income. ~Errol Flynn #
- RT: @ScottATaylor: 11 Ways to Protect Yourself from Identity Theft | Business Pundit http://j.mp/5F7UNq #
- They who are of the opinion that Money will do everything, may very well be suspected to do everything for Money. ~George Savile #
- It is an unfortunate human failing that a full pocketbook often groans more loudly than an empty stomach. ~Franklin Delano Roosevelt #
- The real measure of your wealth is how much you'd be worth if you lost all your money. ~Author Unknown #
- The only reason [many] American families don't own an elephant is that they have never been offered an elephant for [a dollar down]~Mad Mag. #
- I'd like to live as a poor man with lots of money. ~Pablo Picasso #
- Waste your money and you're only out of money, but waste your time and you've lost a part of your life. ~Michael Leboeuf #
- We can tell our values by looking at our checkbook stubs. ~Gloria Steinem #
- There are people who have money and people who are rich. ~Coco Chanel #
- It's good to have [things that money can buy], but…[make] sure that you haven't lost the things that money can't buy. ~George Lorimer #
- The only thing that can console one for being poor is extravagance. ~Oscar Wilde #
- Money will buy you a pretty good dog, but it won't buy the wag of his tail. ~Henry Wheeler Shaw #
- I wish I'd said it first, and I don't even know who did: The only problems that money can solve are money problems. ~Mignon McLaughlin #
- Mnemonic tricks. #
- The Wilbur and Orville Wright Papers http://su.pr/4GAc52 #
- Champagne primer: http://su.pr/1elMS9 #
- Bank of Mom and Dad starts in 15 minutes. The only thing worth watching on SoapNet. http://su.pr/29OX7y #
- @prosperousfool That's normal this time of year, all around the country. Tis the season for violence. Sad. in reply to prosperousfool #
- In the old days a man who saved money was a miser; nowadays he's a wonder. ~Author Unknown #
- Empty pockets never held anyone back. Only empty heads and empty hearts can do that. ~Norman Vincent Peale #
- RT @MattJabs: RT @fcn: What do the FTC disclosure rules mean for bloggers? And what constitutes an endorsement? – http://bit.ly/70DLkE #
- Ordinary riches can be stolen; real riches cannot. In your soul are infinitely precious things that cannot be taken from you. ~Oscar Wilde #
- Today's quotes courtesy of the Quote Garden http://su.pr/7LK8aW #
- RT: @ChristianPF: 5 Ways to Show Love to Your Kids Without Spending a Dollar http://bit.ly/6sNaPF #
- FTC tips for buying, giving, and using gift cards. http://su.pr/1Yqu0S #
- .gov insulation primer. Insulation is one of the easiest ways to save money in a house. http://su.pr/9ow4yX #
- @krystalatwork It's primarily just chat and collaborative writing. I'm waiting for someone more innovative than I to make some stellar. in reply to krystalatwork #
- What a worthless tweet that was. How to tie the perfect tie: http://su.pr/1GcTcB #
- @WellHeeledBlog is giving away 5 copies of Get Financially Naked here http://bit.ly/5kRu44 #
- RT: @BSimple: RT @arohan The 3 Most Neglected Aspects of Preparing for Retirement http://su.pr/2qj4dK #
- RT: @bargainr: Unemployment FELL… 10.2% -> 10% http://bit.ly/5iGUdf #
- RT: @moolanomy: How to Break Bad Money Habits http://bit.ly/7sNYvo (via @InvestorGuide) #
- @ChristianPF is giving away a Lifetime Membership to Dave Ramsey’s Financial Peace University! RT to enter to win… http://su.pr/2lEXIT #
- @The_Weakonomist At $1173, it's only lost 2 weeks. I'd call it popped when it drops back under $1k. in reply to The_Weakonomist #
- @mymoneyshrugged It's worse than it looks. Less than 10% of Obama's Cabinet has ever been in the private sector. http://su.pr/93hspJ in reply to mymoneyshrugged #
- RT: @ScottATaylor: 43 Things Actually Said in Job Interviews http://ff.im/-crKxp #
- @ScottATaylor I'm following you and not being followed back. 🙁 in reply to ScottATaylor #
3 Habits Every Soon-to-be-Successful Debtor Needs to Cultivate
Getting out of debt is primarily a matter of changing your habits. We’ve all heard people swear by skipping your morning cup of coffee to get rich, but that’s just a small habit. Much more important are the big habits, the lifestyle habits. Here are 5 habits to cultivate for financial success.
Frugality
“Beware of little expenses; a small leak will sink a great ship”– Benjamin Franklin
As Chris Farrel wrote in “The New Frugality“, being frugal is not about being cheap, but finding the best value for your money. When my wife and I had our second baby, we couldn’t justify spending $170 on a breast pump, so we bought the $30 model. It was quite a bit slower than the expensive model, and was only a “single action”, but for $140 of savings, it seemed worth the trade. Six weeks later, it burned out so we bought a new one, still afraid to justify $170 on quality. This thing took at least 45 minutes to do its job. When it burned out 6 weeks later, we decided to go with the high-end model. This beauty had dual pumps, “baby-mouth simulation” and it was fast. The time was cut from a minimum of 45 minutes to a maximum of 15. That’s 3 hours of life reclaimed each day fro $140. Six months of breastfeeding for each of two kids means my wife regained 45 days of her life in exchange for that small amount of money. At the rate of 6 weeks per burnout, we would have gone through 8 cheap pumps, costing $240. The high-end unit was still going strong when we weaned baby #3. Buying quality saved us both time and money. I wish we would have gone with the good one from the start. Sometimes, the expensive option is also the cheap option.
Maturity
- Image via Wikipedia
- Image via Wikipedia
“Maturity is achieved when a person postpones immediate pleasures for long-term values.” -Joshua Loth Liebman
Being a mature, rational adult is hard. It means accepting delayed gratification over the more enjoyable instant variety. We save for retirement instead of charging a vacation. It takes a lot of restraint to put off buying the latest toys, clothes, gadgets, cars or whatever else is currently turning your crank until you actually have the money to actually afford it. It means planning your future instead of looking like a surprised bunny caught in a spotlight every time your property taxes come due. (Who knew that the year changed every year? Do they really expect annual payments annually? Geez! There’s so much to learn!) It means thinking about your purchases and buying what you actually need, actually want, and will actually use instead of resorting to retail therapy whenever you feel like a sad panda. The only benefit to mature, rational management of your finances is that, given time, you will have the security of knowing that, no matter what happens, you will be okay. That’s a huge benefit.
Pleasure
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“Do not bite at the bait of pleasure, till you know there is no hook beneath it.” – Thomas Jefferson
If it hurts, you won’t do it. You have to learn to take pleasure from from things that won’t make you broke and you have to learn not to hate putting off the things you can’t afford. Take pleasure in the little things. Enjoy the time with your family. Presence means so much more than presents. So many people never learn how to enjoy themselves. Take the time to experience life and enjoy doing it.
Update: This post has been included in the Carnival of Debt Reduction.
5 Ds of Identity Theft
Identity theft is, at its most basic level, the act of using someone else’s identity or credit without permission. From a stolen credit card to a forged phone bill in Moscow, it all involves your good money paying for the bad habits of another. Thankfully, there are ways to reduce the odds of having your identity stolen. LTC David Grossman reviews the “5 Ds of Survival” in his seminars and books. Today, I bring you the 5 Ds of Identity Theft.
In the words of the master, “Denial has no survival value.” Denying the possibility of identity theft will not keep it from happening. You have to take steps to keep yourself safe. “It could never happen to me” is not a valid defense mechanism in any situation, financial or otherwise.
Deterrence means keeping the information away from identity thieves. The harder it is for the criminals to get your information, the more likely it is that they will move on to an easier target. And yes, a kid stealing Grandma’s credit card is a criminal and needs to be treated as such.
- Some people use a shredder, but not me. I have a fire pit that catches all of my personal documents. I’d like to see an thief get my social security number from the ashes in the bottom of the pit.
- Don’t carry your social security card. If you lose your wallet, your driver’s license and social security card contain all of the information needed to steal your identity. Keep it locked up at home and don’t give the number out unless absolutely necessary.
- Don’t use stupid passwords. Anything listed on yourFacebook profile or otherwise available on Google in association with your name is a stupid password. Don’t make life easy for the people looking to screw you. Your birthdate, maiden name, and “password” all qualify as stupid passwords. Use KeePass to securely generate and store your passwords.
- Lock up your personal information. I throw two large parties every year. Purses and wallets get stored in a locked bedroom, so nobody can grab them. That was a lesson learned the hard way. If there’s someone in your home you don’t trust absolutely, lock up anything that can be used against you.
- Don’t release personal information to anyone, for any reason, unless you have initiated the contact. Don’t give a credit card number to a telemarketer. Don’t give a spammer your personal information. It’s your privacy, use it.
- Don’t click anything in an email. If it’s a company you have a relationship with, type the address in your browser by hand.
Detection is up to you. Some credit card companies will alert you to suspicious purchases, but you can’t rely on it. I was once called because I went to the gas station and Best Buy, which is apparently a common pattern for a stolen credit card.
- Examine your credit card statements. If there’s a purchase you don’t recognize, find out what it is.
- Watch for bills to arrive as expected. You do know when you pay the gas bill every month, right?
- Watch for unexpected bills to arrive. If you get a statement for a credit card you don’t have, it’s a problem.
- Check your credit report three times per year. AnnualCreditReport.com will let you see each of the three major credit reports each year. Space them out so you see your report every 4 months.
Defending your identity happens after you’ve detected a theft. This involves getting your credit and sometimes, your money, back.
- File a fraud report with the credit bureaus. This will force potential creditor to follow certain procedures before opening new credit accounts for your identity, including calling your cell phone, if you choose. Stop the identity theft in its tracks.
- Close the fraudulent accounts. Don’t leave them open for abuse.
- File a police report and report the fraud to the FTC at ftc.gov/idtheft . This may or may not help catch the criminal, but without it, there will never be a punishment. Make stealing your identity an expensive proposition. Hopefully, 1o years of his life will be wasted in jail in return for the theft.
Destroy. Unfortunately, fraud and identity theft are not yet capital crimes. Maybe someday.
Deter, detect, defend. These are the secrets to avoiding, and recovering from, identity theft.
Balance Your Borked Budget
You’ve got a budget worked out to the penny. You know every dollar that comes in and every dime that you spend. All of your bills are getting paid on time. Then, one day, it all comes crashing down. Your budget is no longer even a reasonable approximation of your cash flow. You’ve got no idea what’s coming in or going out. Bills are piling up and fees are digging you deeper in debt.
What happened? More importantly, how do you get back on track?
The first thing you need to do is identify the problem. What, exactly, went wrong? Did you lose your job or need a surprise botox injection? Your car died or your kid developed a hockey habit? Sports car or shoe sale? Whatever the cause, if you can’t identify it, you can’t deal with it. Some of the possible problems may be things that can get clubbed and buried in the backyard, while other things may be expenses that won’t be going away. If it’s a one-time expense, you can simply refocus your debt repayment to take it into account. If it’s an ongoing expense, you will need to adjust your other expenses, possibly in a drastic manner, to make ends meet. You can’t know which way to go without knowing what caused the problem.
Next, commit to to making it right. Don’t leave it at a mere commitment. Actually commit and actually do it right. Future-you is counting on you to fix the problem before he gets screwed. This is important. Without firm–and real–commitment, nothing else will matter. At best, you will be treading water. At worst, you will drown yourself in unanticipated bills.
Cut everything extra. Every expense–whether it’s your mortgage or your maid–is a rock in your pocket, one hundred miles from shore. How much can you carry and stay afloat? This isn’t the time to keep paying something because you enjoy it. If it isn’t absolutely necessary, it’s got to go. Cut your internet, cancel Netflix, learn to shut off the lights when you aren’t using them. Is the early termination fee less than 6 months of your cable bill, your satellite bill? Cancel it. You can always sign up again later. This is the time to be ruthless.
Is there a way to bring in some extra cash? Can you pick up a second job, or land a freelancing gig? If you’ve suddenly found yourself unemployed, can you spend some time on being a Mechanical Turk? Sell all of the things you don’t use anymore, or, more likely, never should have bought in the first place? Do you have a spare kidney?
Remember, this is a drastic situation calling for drastic measures. Your future is depending on you. Don’t make him come back and kick your butt.
Update: This post has been included in the Carnival of Personal Finance.
Twitter Weekly Updates for 2010-01-09
- Up at 5 two days in a row. Sleepy. #
- May your…year be filled w/ magic and dreams and good madness. I hope you…kiss someone who thinks you’re wonderful. @neilhimself #
- Woo! First all-cash grocery trip ever. Felt neat. #
- I accidentally took a 3 hour nap yesterday, so I had a hard time sleeping. 5am is difficult. #
- Wee! Got included in the Carnival of Personal Finance, again. http://su.pr/2AKnDB #
- Son’s wrestling season starts in two days. My next 3 months just got hectic. #
- RT @Moneymonk: A real emergency is something that threatens your survival, not just your desire to be comfortable -David Bach # [Read more…] about Twitter Weekly Updates for 2010-01-09
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.
