The Black Card - This is NOT an Advertisement

The Black Card – This is NOT an advertisement
Enrage or Motivated

So. I paid off the balance on 2 cars, all my credit cards and all those of my wife’s. Yippee. And recently we were pre approved for two new motor vehicles with interest rates of 3.25%. Wow!! Woe is me, the high interest we were paying for years because of our average credit rating. But that’s not the nature of my story.

After paying off all those credit cards, our credit rating shot straight to top score. We have been flooded with credit card applications. I open about 1 in 5 of those mailers, only to become enraged at the terms of every single mailer. It only confirms my resolve that banks are extremely greedy, self serving institutions, with a mentality of take and raping all they can.

Anyway, one of those mailers was an “Invitation.” The envelope was a flat back color. The return address read only the words, “BLACK CARD_TM”. So yes, I opened it and scanned it for the interest rates and other terms. The paper inside was in large print, on heavy expensive paper. There was a large off white return envelope and half fold large credit card with the application printed in even larger print inside. Kind of looked like a wedding invitation. The front off white card said in the first line, “By invitation, you have been pre-qualified to receive the exclusive Visa Black Card. Limited to only 1% of US residents.” Now, everyone knows that the 1% they imply, are the 1% richest people in the country. Trust me when I say, that is not me.

I continued to analyze the, “Invitation_TM”. It lists other terms & features. The interest rate was only a common, 14.99%, half as much as Discover card’s 29.99%. But hay, Discover card give you cash back. The Black Cards annual fee was $495, plus $195 for each authorized user. Ouch!

You might think that I would be more enraged by the annual fee, which, by its high number, is membership excluding. But I wasn’t. I’m use to excluding memberships like those of many golf courses. It was the implication, that unless my wealth fell into that of the richest Americans, “the 1%”, I would be excluded from membership to the card.

I was enraged enough to write this article. Maybe I should feel motivated?

11-3-11

The High Cost of Procrastination

The High Cost of Procrastination

Habitually putting things off might actually cost you money.

Habitually putting things off might actually cost you money? Consider the potential impact delays can have on your future. Wait to start saving for retirement and you could face a hefty price tag.

The 40 year old who wants to save $1 million by age 65 has to start putting away more than $1,000 a month. But a 20-year-old needs to save only $190 a month.*

Likewise, if you put off doing your taxes until April 14, you'll delay receiving any refund owed to you, money you could put to work promptly in an IRA. Many mistakenly consider the tax return as anticipated income, and use it for a vacation.

So how does one start to make a change? Take some baby steps. Each day or two, do something that increases your understanding about a change you might make. You can use free tools from many websites to help you with some of these things.

Identify shortfalls in retirement savings

Try out scenarios that show how increasing your contributions can affect your retirement

* This example is for illustrative purposes only. Assumes an 8% return on hypothetical investment.

Are Americans As Dumb As We Appear??

Did you see the Diane Sawyer special report? They

removed ALL items from a typical, middle class family's

home that were not made in the USA .

There was hardly anything left besides the kitchen sink.

Literally. During the special they are going to show

truckloads of items - USA made - being brought in to replace

everything and will be talking about how to find these items

and the difference in price etc..

It was interesting that Diane said that IF every

American spent just $64 more than normal on USA- made items

this year, it would create something like 200,000 new jobs!

I WAS BUYING FOOD THE OTHER DAY AT WALMART and ON THE LABEL

OF SOME PRODUCTS IT SAID 'FROM CHINA'.  FOR

EXAMPLE THE "OUR FAMILY" BRAND OF MANDARIN ORANGES

SAYS RIGHT ON THE CAN 'FROM CHINA.'   I WAS

SHOCKED SO FOR A FEW MORE CENTS I BOUGHT THE LIBERTY GOLD

BRAND OR THE DOLE SINCE IT'S FROM CALIF.

Are we Americans as dumb as we appear --- or --- is that we

just do not think while the Chinese, knowingly and

intentionally, export inferior and even toxic products and

dangerous toys and goods to be sold in American markets?

70% of American believe that the trading privileges

afforded to the Chinese should be suspended.  Why do

you need the government to suspend trading privileges?

DO IT YOURSELF, AMERICA!!

Simply look on the bottom of every product you buy, and if it says 'Made

in China ' or 'PRC' (and that now includes Hong

Kong), simply choose another product, or none at all. You

will be amazed at how dependent you are on Chinese products,

and you will be equally amazed at what you can do without.

THINK ABOUT THIS: If 200 million Americans refuse to buy

just $20 each of Chinese goods, that's a four billion

dollar trade imbalance resolved in our favor...fast!!

Most of the people who have been reading about this matter

are planning on implementing this on May 1st and continue it

until June1st. That is only one month of trading losses, but

it will hit the Chinese for 1/12th of the total, or 8%, of

their American exports. Then they might have to ask

themselves if the benefits of their arrogance and lawlessness were worth it.

Siberian Mission - Show of Commitment

LEHI, UT – A few short months ago, a parentless 19 year-old in a remote Siberian city suffered from lack of funds for schooling and a facial deformity called cleft lip that affects eating, breathing and social interactions. Despite these humble beginnings near the geographic center of Asia in Tuva, Russia, the young man, named Salan Solun-ool, was determined to make a better life. Upon a chance meeting with several distributors for XANGO, LLC, a global health and wellness leader in the direct sales industry, Solun-ool became a distributor himself to earn income for college. Little did he know, the introduction to XANGO would not only provide a unique business model for achieving his financial goals but also lead to free, life-changing surgery in nearby Ulan Ude, Russia, during XANGO’s award-winning 2010 Season of Smiles with Operation Smile, for whom the company is a long-time sponsor as part of its core commitment to changing lives.

“Salan Solun-ool’s story in Russia is a microcosm of what we’ve seen throughout the Season of Smiles – the strength of XANGO’s global network and the power that exists when many caring people lend their talent and resources to provide life-changing opportunities for others,” says XANGO Founder Joe Morton. “As a global company, XANGO encourages our employees, distributors and executives each to become personally involved in the ways that most resonate with them, from local volunteering to larger initiatives that reach every corner of the world.”

XANGO’s Russian distributors assisted medical volunteers in performing 55 surgeries for children and youth who suffer from cleft lip and cleft palate facial deformities, including Solun-ool. The mission in Ulan Ude followed similar trips to Tlaxcala and Guadalajara, Mexico, and Chonburi, Thailand, reaching a total of 450 children and youth in 2010. The initiative to provide free, life-changing medical care is emblematic of XANGO’s sense of mission to improve lives. With his surgery complete and a second year of college studies underway, Solun-ool is several steps closer to his dream of becoming a painter, quite a transformation from his days at the Siberian orphanage in which he grew up.

Solun-ool isn’t the only one to take notice of XANGO’s commitment to the greater good: XANGO’s partnership with Operation Smile also led to official recognition via a 2010 Communitas Award from the Association of Marketing and Communication Professionals in the category of Leadership in Community Service. The Communitas Awards recognize exceptional businesses, organizations and individuals who unselfishly give of themselves and their resources, and those who change how they do business to benefit their communities.

Morton notes, “XANGO is honored to be among the 2010 Communitas Awards recipients and will continue our work with Operation Smile to further our joint mission of changing lives, one smile at a time.” In Ulan Ude, Russia, Salan Solun-ool is smiling brightly as he contemplates his expanded world of possibilities.

College Grads and Credit Card Survey Results

An online survey of college graduates ages 22 to 40 was conducted to gather data on what kind of credit offers they accepted while in college and to assess the kind of financial standing they had at the time of graduation.

The survey was conducted of 3,631 College grads or those who have attended some college, aged 22-40 from 7/30/08 to 8/4/08.

40% said they signed up for a credit card to receive the free stuff for signing up. Yet 52% had debit when they graduated. Over 69% of those had between $1000 and $10,000 of debit. 10% had more than $10,000 in debit.

Those results follow:

Have you ever signed up for a credit card to receive a free gift or special offer?

Yes: 40%
No : 58%
Not sure: 1%

Did you have credit card debt upon graduating or leaving college?

Yes: 52%
No: 47%
Not sure: 1%

About how much credit card debt did you have by the time you graduated or left college?

$0-$500: 12%
$501-$1,000: 15%
$1,000-$2,500: 23%
$2,500-$5,000: 22%
$5,000-$10,000: 14%
More than $10,000: 10%
Not sure: 3%

Of those who say they had credit card debt upon leaving or graduating from college, a plurality (23%) says they had $1,000 to $2,500 in such debt. Twenty-two percent say they had $2,500 to $5,000 in credit card debt when they left school, while one in seven (14%) say they had $5,000 to $10,000 in such debt. One in ten (10%) say they had more than $10,000 in credit card debt by the time they graduated or left college.

Source, True Credit

Save Money Now and In Future

Recent tweets on how you can save bunches on money now and in the future:

Cancel expensive premium cable package and opted for the cheap, basic service, and start saving average of $80 a month, more than $950 a year.

Infuse more cash into your budget. Knock $17 off monthly bill by hinting that you want to switch to a less expensive cable TV package.

Save on utilities. EPA estimates average homeowner can save $180 per year with a programmable thermostat.

Save on utilities. EPA won't grant the Energy Star label unless its figures show you'll recoup that extra outlay within five years or less.

Save on utilities. Cumulative effect of all the small leaks in your home, it has the effect of leaving a window open all year long, the EPA.

State and local governments, utility companies offer financial incentives for homeowners to upgrade their appliances to newer, efficient.

Use a reusable furnace A/C filter than you can simply hose off when it gets clogged up with dust and other particles. Saves $$ in long term.

Set your water heater at 120 degrees, and save up to $461 annually says EPA. Also, Turn gas water heater down when on vacation.

Do sweep through house to make sure all your electric devices are turned off before bed time. Coast annually $21 for bulb and $35 for fan.

Use light or white color shingles on your roof and save up to $120 per year in heating cooling cost.

Install a sub-meeter on water used for lawn, car washing etc. Will pay for installation within 3 years and save hundreds every year after.

Infuse more cash into your budget. Use tax withholding calculator, change your tax withholding, file a new W-4 with employer. Keep $242/mo. more on paycheck. Based on average refund.

Eat out 2 less times/mo. and save up to $100/mo. BIG savings, easy benefits.

Increasing auto insurance deductibles from $500 to $1,000 can reduce your premiums by up to 18 per, and save you $648 per year, on average. Based on family with 2 teen drivers according to the database at InsWeb.

Do Something Different

October Edition - Financial Freedom

"A day will never be more than you make of it." Josh Hinds

If your day consists of doing the same things you did yesterday, last month, and last year financially, and you are no farther ahead than you were, then, do something different.

Congratulations to one of our readers. She made a bold move recently and started her own business. She did something different.

Do something different and prepare your own Net Worth Statement. Yes, according CNN/Money, "It's hard to figure out how to get somewhere if you don't know where you are." Regardless of whether your financial net worth is negative or in the positive, it is where you need to start building from that point on. Net worth means that you have calculate all of your expenses (liabilities), and subtract those dollar amounts from your assets (things of value including savings, retirement, houses and car values, etc). The sum is your net worth or owner's equity. Although, unless you need to for insurance purposes, you may not want to include jewels and furs. Forms are easily available if you need them.

The average net worth by age is about $900 for 25 year olds and under; $15,000 for 25 to 34 year olds; $95,250 for 35 to 44 year olds; and $163,334 for 45 to 54 year olds. (source: CNN/Money - pre economic downturn)

The average net worth by income is: Under $25K (x 1000) is $12,500; $25K-$50K is $75,000; and $50K-$75K is $168,450.

Do something different and prepare your own budget. Calculate all of your income from all of your sources, and all of your expenses from food, clothing and shelter, to mortgages, insurances, and car notes, etc. Use available free software to do this. The software will encourage zealous attention to detail. The results will give you suggestions on what percentage of your income you should be devoting to certain categories like insurance, savings and investments, and general living expenses. I ran the free software from Money Magazine's web-site and discovered that I was spending 10% more on insurance than I should, and like most people I was investing about 17% less on savings than they suggest.

Budget calculator link: http://cgi.money.cnn.com/tools/budget101/budget_101.jsp

Creating Extra Money Tip of the Month - Use debt elimination software to calculate how much you should pay on each credit card (bill) each month and systematically eliminate everything from the high interest "bad debt" to the lower interest rate debt in a very short period of time while using the same amount of money you now spend each month on those same bills. What's left? Lots and lots of cash.