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.

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.

Brilliant Methology - Pay-off Smallest Debit 1st.

Brilliant methodology. Paying off the smaller debts 1st makes people FEEL successful. Must consider how people FEEL or it just wont happen.

Oh so true. Most people fear change so much they rarely get started. Having real short term reachable easy goal, can motivate the behavior of so many.

Concentrate your efforts on paying off your smallest debit 1st. Pay just the minimum on ALL your other higher balances. Otherwise you will dilute your efforts and accomplish nothing. Later, and once you've paid off your smallest debit, focus on the next smallest debit by redirecting the amount you were paying on the smallest debit to the next smallest debit adding to the minimum you were paying (called compounding).

"You need some quick wins in order to stay pumped up about getting out of debt! Paying off debt is not always about math. It’s about motivation. Personal finance is 20% head knowledge and 80% behavior. When you start knocking off the easier debts, you will see results and you will stay motivated to dump your debt," says Dave Ramsey.

The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted. First accumulate $1,000 cash as an emergency fund. Then begin intensely getting rid of all debt (except the house) using Dave Ramsey's debt snowball plan. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.

4 Reasons You Might Want Store Credit Card

4 reasons you should get a department store credit card
Often (and justly) maligned, retail store cards sometimes can help

For many years I warned friends and family against getting store credit cards, because I learned that they lower your credit scores. Now I read there are benefits that I was not aware, but can understand based on recent financial events in our lives. The banks, well, they've abused my trust in them, lowering my credit limit and then increasing my interest rate because I'm too close to the limit. Adversely affecting my credit score and then raising my rates again because of the score they caused. Twice in 6 months. Just burns me up.

Following is helpful information I found on Channel 19. Gentle but solid information.

Store-branded credit cards have never gotten much respect -- often for good reason. The sky-high interest rates and short grace periods that often accompany the cards don't do consumers any favors. And because they're often touted as a quick way to save 10 percent or 15 percent on a purchase, people rack them up quickly, to the detriment of their credit scores, says Scott Crawford, co-founder of DebtGoal.com.* "Because they're a hard inquiry on your credit file, which can cost you about 30 points on your score, taking out these cards can drive down your score pretty significantly," he says.

That said, there are times when a store card may be a boon. If you're a savvy, responsible shopper who pays bills on time and in full, you might be able to reap significant benefits from store cards. Here are four reasons you might want to give a store card a second look.

1. You need to build (or rebuild) your credit. If you're someone with a "thin credit file," or you're trying to start fresh after a bankruptcy, your options are few. A crummy economy likely means that major card issuers will be even more skittish about extending credit to risky borrowers. In some cases, a store card may be one of your only options. "If you're trying to build your credit, the typical route has been to get a store or gas card," says Liz Weston, author of "Easy Money" and "Your Credit Score." "Traditionally, those have been easier to get. Though that's not always the case, it may be worth looking into." Once you've built up a few months' history, though, she recommends branching out into a card from a major issuer.

2. You can save big on a one-time purchase. If your purchase is in the thousands of dollars -- think furniture and remodeling projects and supplies -- that 10 percent discount can make a big difference. "If you've got excellent credit, you're not going to be in the market for a new loan, and you've got a purchase where the savings from the card would be more than $100, go for it," says Crawford.

3. You buy from the store frequently (and will use the coupons and perks). A one-time savings of $10 or $20 usually isn't worth a credit inquiry and the hassle of filling out forms. That said, if the store is one that you go to regularly anyway, the deals and ongoing perks may be valuable enough for you to sign up, says Scott Bilker, founder of DebtSmart.com. "If the store has good prices, a lot of stuff you like, and discounts that you'll use, then having the store card is a good idea," he says. Some stores include deals such as free alterations and gift wrapping that may also be useful.

Before you take the leap, though, Bilker recommends doing some comparison shopping: You may be able to get the same perks just by signing up for a store newsletter or getting rewards from a regular credit card.

4. You can get interest-free financing. In addition to discounts, some stores may offer interest-free financing -- a perk that may be worth it if you're doing it for convenience, not necessity, says Crawford. "Interest rate concessions for six months or a year can be a great deal for big purchases -- as long as it doesn't get away from you," he adds. "The savings from interest-free financing for six months disappears pretty quickly if you pay 28 percent for a year after that."

By Erin Peterson Credit Cards.com

Some additional things to consider

It's too easy to spend money when you have more cards. Kimberly Penney of Kent, Wash., never gets the store card. She says, "I don't want to be tempted to use it later on, so I just don't open it."

Opening a new credit card can ding your credit score rating. If you're not expecting to refinance your house or borrow money in the near future, that may not be big deal. But if opening a new account causes a 10-point drop right before you apply for a loan, it can cost you plenty. Andy Jolls, CEO of Videocreditscore.com, a credit scoring educational site, gives the example of saving $45 on your current purchase -- only to pay about that much more every month on your new home loan because you didn't qualify for the lowest interest rate. In a worst-case scenario, you could pay $15,480 more over the life of your loan just to save $45 dollars at the checkout counter. It's hard to think of a worse deal than that!

It's one more card to keep track of and have open. An open card, especially one opened with another person, can come back to haunt you years later. You should never have more cards open than you can easily remember and keep track of.

"It's one more card to worry about identity theft on," says Jolls. If anyone ever steals or forges your driver's license, for instance, they can go to the store, present ID, and use your account.

You'll get a more junk mail -- possibly even junk e-mail -- once you're a "preferred" customer. That's just more temptation. I know from experience the more ads I look at, the more I'm likely to find something I want. If I don't see it, I don't buy it. By Sally Herigstad CPA

Pay Off Credit Card Balances Each Month For Free Money

Pay off the full balance of credit cards within the grace period and avoid finance interest charges completely. Now that's nearly free $$

Regular use of credit cards will improve your credit score over time. BUT, you should pay them off each month. Others would say, pay more than the minimum, and don't max them out. I say use them to your advantage and build credit scores.

There are credit cards that allow you to deposit money in them, say $500 or so, and that's all you can spend. These types of cards do report to credit bureaus, and you can improve your credit rating in this way.

See: Credit Cards
Build your credit score, there may be no credit checks.

Six Ways Retieries Can Beat Inflation - From Forbes September 2010

Let me list the ways so you can glean the info contained afterwords more quickly than I did through Forbes on-line, and between all of the pages and pages of ads.

1. Buy an annuity with an inflation rider
2. Get a fixed annual bump-up
3. Buy in stages (Like $150K @ 65 yrs old and another $150K @ 70 yrs olds)
4. Buy stocks instead
5. Buy a government annuity
6. Live with it (Use the money now @ younger age)

All Greek to the common man. BUT, you won't save a dime more unless you do something more than you are now. Take only one action step and you might enjoy some benefits. Don't believe what you read here, simply do your own research for a better comfort level. However, don't spend all your time researching and never taking any action.

In the next blog I will try and link definitions like

From FORBES September 15, 2010. By William Baldwin

"There's no perfect way to deal with the rising cost of living," says William Baldwin. But here are some options.

Let's say you have just retired and want to invest your savings to produce steady income. You could buy immediate annuities, which provide a nice payout since a lot of the money you get in the monthly checks is a return of principal. Absent special provisions, however, annuities die when you do. But while you are alive they pay well. Thus, they protect you from the risk of outliving your savings.

If you are a 70-year-old male, for example, you can get $630 a month for life from insurer New York Life by plunking down $100,000. That's a 7.6% annual payout, a lot more than you could get from other relatively safe investments, like bank CDs and U.S. Treasury bonds.

But annuities come with two hazards. One is that an insurer might go bust. You can protect yourself against the worst by buying only from insurers with high financial ratings and by spreading your capital around. Instead of buying one annuity for $300,000, you could buy three $100,000 annuities from different companies. It's unlikely that all three will go the way of AIG.

1. Buy an annuity with an inflation rider.

By accepting a lower initial payout, you can get a promise from the insurer to raise your check to keep up with the Consumer Price Index.

Advantage: You don't have to guess how high inflation will be.

Disadvantage: The rider may be hard to find--and is going to cost you a pretty penny. That's because the insurer doesn't know how high inflation will be, either, and has no cheap way to cover its bets. Note that the inflation-adjusted versions of U.S. Treasury bonds (called TIPs) carry a tiny 1% real yield.

2. Get a fixed annual bump-up.

With an automatic 2% annual increment (irrespective of what happens to the CPI), New York Life's payout for the 70-year-old male investing $100,000 drops from $630 to $533.

Advantage: Because the insurer knows in advance what its payouts will be, it can fund them by investing in conventional (not inflation-adjusted) bonds. Those bonds have much better yields than TIPs, so the insurer doesn't have to be so chintzy with its payouts.

Disadvantage: You might experience worse inflation than the 2% (or whatever you choose) that is built into your annuity policy.

3. Buy in stages.

Instead of putting $300,000 into annuities at age 65, you could do $150,000 now, then buy more at age 70, says Martha Kendler, who oversees annuity sales at Northwestern Mutual. If inflation has resurfaced by then, interest rates will be higher and you will get a better monthly return as a result. (Remember, the insurance company is covering its obligations by investing your cash in fixed-income assets like corporate bonds.) Even without any rise in interest rates, the monthly payout is going to be better for longevity reasons. That's because 70-year-olds, on average, don't have as many years left to collect as 65-year-olds do.

Advantages: You can invest the $150,000 for five years, and presumably will have more than that sum in 2015 to use on annuity purchases; you get a higher monthly payout per dollar invested, because you're older; and you get a peek at the Grim Reaper's plans for you. If your health is very poor at age 70 you just don't buy the second annuity.

Disadvantage: You've missed five years of monthly payouts.

4. Buy stocks instead.

The S&P 500 stock index yields about 2%. Stocks have a history of enjoying dividend hikes that, over a long period, more than keep up with inflation. Indeed, without being considered a spendthrift you could both cash the dividend checks and also sell off 1% or 2% of your portfolio every year to help pay the rent. It's likely that you could continue that spending behavior indefinitely without depleting your capital.

Advantage: If you can get by on just the dividends plus a 2% withdrawal of capital, you are likely to leave a nice pot for your heirs.

Disadvantages: There are two disadvantages. One is risk. Dividends get cut in a recession. And what if we get a 25-year bear market in stocks? What if you own a disproportionate amount of the next Enron or AIG? The other problem is that you cannot match the 6% to 8% payout that retirees can get on annuities. Take 7% a year out of a stock portfolio and there is a significant chance that, by time you turn 80, you will be sleeping on the sidewalk.

5. Buy a government annuity.

Here's the deal. You start collecting Social Security at age 62 (we're assuming you are out of the workforce). If you're still healthy at 70, you repay all your Social Security checks to that point and reapply. That entitles you to a much higher lifetime benefit, and this benefit is adjusted for inflation. "In effect you are buying an inflation-protected annuity from the government," explains Matthew McGrath, a managing partner at Evensky & Katz, Florida.

Advantage: The terms are very good. Each dollar spent at age 70 buys a much bigger increment in monthly benefits than you could get from a commercial insurer.

Disadvantage: The terms are too good. The SSA is moving to limit this option.

6. Live with it.

Plan on a fixed monthly income during retirement. Your purchasing power will gradually decline (assuming we don't get deflation). Maybe that's something you can stand. It would mean more traveling at age 65 than at age 75.

Advantage: You go to Europe when you are still young enough to enjoy it.

Disadvantage: Other costs, like medical costs, may go up a lot as you age.

Take action now and click here.

Teens Can Protect Their Credit Card

Protect your Credit Card

Teens misplace things like driver licenses, Social Security Cards, birth certificates, and yes, their credit cards. They are busy people and their minds are on things like the party, Face Book and friends. Seems like it's right of passage. Their

When using your credit card it is important to protect your card information. Here are some tips to keep in mind:

• If your card is lost or stolen, contact the issuing bank or financial institution immediately.
• Never provide your credit card information – the account number, expiration date or 3 digit security code on the back of your card – in response to an unsolicited e-mail, phone call or other type of communication that you didn’t initiate.
• Only give your credit card number to reputable merchants or organizations.
• When making online purchases with your credit card, make sure you’re dealing with a legitimate Web site and that your information is being encrypted (scrambled for security purposes) during transmission.
• For additional protection when shopping online, some retail merchants may require you to enter a secure code that only you know.
• Major credit card companies provide additional protection by offering ‘zero-liability’ programs that protect consumers from unauthorized use of their card.First Bank of Ohio

Teens and Credit Cards - Parents Too

Parents could learn allot from the following information written and meant for teens.

Credit Cards are convenient, easy to use, and provide the ability to buy now and pay later. But using a credit card means you have been loaned money to make your purchase and that money has to be repaid. If used appropriately, credit cards can help you establish good credit, which will provide you access to financial resources for major purchases in the future.

A few things to remember in order to build good credit:

• Manage your debt.
• Keep your debt levels manageable.
• Keep track of your purchases and avoid large impulse buys.
• Don’t use a cash advance to pay for normal, daily expenses or to make a payment on another card.
• Never borrow more than 20% of your annual net income.
• Never let your monthly card payments be more than 10% of your monthly net income.

• Choose your card carefully.
• Don’t choose a card just because there’s no annual fee or to get a free T-shirt.
• Shop around for a card that suits your borrowing habits.
• If you’re able to pay in full each month, choose a card that offers a rewards program.
• If you expect to carry a balance from month to month, which means you’ll be charged interest, look for a card with a generous ‘grace period’ (the amount of time before your payments are due) or a card with a low interest rate.
• Read the card agreement carefully and understand the grace period, annual percentage rate (APR), all fees and charges, repayment terms and credit limit (the maximum amount you can borrow).

• To avoid or minimize interest charges, always pay as much as you can.
• Pay your bill in full each month regardless of the ‘minimum amount due’ listed on your bill. This will avoid unnecessary finance charges and/or other fees, and improve your credit score.
• By paying the minimum payment due each month, it will take longer to repay the debt and cost you more in interest charges. The amount you pay in interest and fees could exceed your original purchase amount.

• Pay your bill on time.
• This will help you avoid a late fee of about $35 or more each month.
• One late payment may cause the interest rate on your card to default to a significantly higher rate.
• Continued late payments may be reported to the 3 major credit bureaus as a sign that you have problems managing your finances. It can also affect you when you apply for a job, housing or a future loan.
• If your credit rating gets downgraded, your card company could raise your interest rate, reduce your credit limit or even cancel your card.

From First Bank of Ohio

Teens and Online Banking - Security Tips

• Never share your User ID and Password with anyone.
• Protect your account information, account numbers, card numbers and PIN.
• Immediately contact your Bank if you believe your User ID and Password have been compromised.
• Don’t have your computer ‘remember’ your User ID and Password.
• Be careful when using a computer in a public area where someone could watch you enter your User ID and password.
• Do not respond to e-mails or pop-up windows asking you to provide, verify or update personal information such as password, PIN, Social Security Number, etc., even if they appear to be from a reputable source.
• Never go to a link you receive within an e-mail, even if it appears to be from a reputable source.
• Be cautious of emails that warn you that your account may be at risk, notify you that fraudulent activity or charges exist on your account, or convey a sense of urgency. These often include details of the suspicious activity requesting you respond to the email or ‘click here’ to visit their site to update your information. By First Ban of Ohio
  

Teens & Money

People are more likely to make smart decisions that affect their finances and future if they understand how to manage and save money. Saving money may not be as much fun as spending it, but it’s still important to do.

Since teens are becoming more responsible for handling money and making decisions from everything to everyday purchases to paying for college or buying a car, it’s important that they understand how to make good decisions about their money.

The following is intended to assist parents in educating their teens on the basics of responsible money management. These sections provide information on budgeting, college costs, buying a car and more!

Financial Planning:

Financial planning is the process of defining goals, developing an action plan to reach those goals, and then putting that plan in action. It includes all aspects of your money: spending, credit, savings, and investments. With good financial planning you can live a better, more secure, life than someone without good financial planning that has to live pay period to pay period.
Some things you can do to help with financial planning are to figure out a budget and save money.

Next Blog, "Figuring Out Budget"

TAXES - Save money now

Are legally taking advantage of all of the income tax reduction benefits available to you

"If you are self-employed and live in the United States or Canada, you can probably reduce your taxes with a small business run with an honest expectation of profit and where your expenses are ordinary, necessary, and reasonable for that business. It's that simple!"
By Sandy Botkin

Plan Your Work, Work Your Plan - Overcome Fear

Wealth Is Relative - One definition of wealth is when someone has enough income producing assets to maintain a standard of living they desire, without having to work.

Be What You Want To Be - Before setting any goal, let’s explore our dreams. Remember when we were young, and our parents said, “you can be what you want to be, and do what you want to do, if only you want to bad enough?”

Goal-Setting - “Plan your work and work your plan.”

Emotions play a big part in wealth creation. True learning about money and finances takes energy, love passion, a burning desire, and even anger. Anger is passion and love combined. Most people want to play it safe and feel secure, thus passion does not direct them, fear does. Fear is what has killed the dreams of many to be wealthy. Fear of losing a job, fear of not being able to pay bills, fear of losing it and having to start all over again, fear of failure. People rationalize this fear and do not recognize it for what it is - FEAR. We should take this fear, put it in a bag and throw the bag away, today. Replace that fear with passion.

Not everyone wants to be wealthy, because it’s easier. They work for money rather than working so that their money works for them. Some say money is evil, they just want to be comfortable, money isn’t everything, it’s too late to start now, etc., etc., etc. What they are really doing is not recognizing their own fears, or that it is fear that drives them to work for money, spend, then work for more money only to spend that money.

Question - If it is a fact that 95% of the of the working people on earth create wealth for the remaining 5%, why would someone follow the teachings of those who are not wealthy. Answer - FEAR, or they simply don’t know any better.

The wealthy work to create income producing assets (make their money work for them). The middle and other classes create expense producing liabilities (work for money) which is the foundation of a debt-ridden society, repeating history once again.

eople on earth create wealth for the remaining 5%, why would someone follow the teachings of those who are not wealthy. Answer - FEAR, or they simply don’t know any better.

How a Retiree Wounded Up With a 375% Loan

Last September, a pressing family matter led 63-year-old Preston White to walk into the Cash Store in Killeen, Texas. The retiree's daughter had just returned from serving in Iraq and had asked for some financial help relocating her family.

White couldn't say no, even though he didn't have the money. It had all gone to pay medical bills for the surgery and treatment of his wife's pancreatic cancer. He had spent all his retirement savings and even the money from selling his home in Virginia.

"We were able to overcome cancer, but it had a real impact on us economically and took away all that we worked for all our lives," says White. Today, his wife, a retired school teacher, is cancer-free and continues to visit her doctor for regular scans. But White wanted to help his daughter settle down. So, he went to the local First National Bank for a $5,000 loan. He was rejected.

That's when he took his 2003 Chevrolet Avalanche pickup (pictured, with White) to the Cash Store near his home and used it as collateral for a one-month "auto-title loan" of $5,000. However, he got only $4,000 in cash, but ended up owing more than $5,000, because of fees and charges that were tacked on. According to the loan document written by the Cash Store, White would owe the lender $5,268.50 at the end of the month. The costs included a fee of $1,200, a lien fee of $28, and finance charges of $40.50. According to disclosures in the document, the cost of White's credit at an annual percentage rate was 375.12%.

The Cash Store manager in Killeen, Veronica (who wouldn't provide her last name), declined to explain the details of White's loan. The chain of 280 stores in about eight states is operated by a private entity called Cottonwood Financial, based in Irving, Texas. A company spokesman, Jared Smith, also declined to answer questions about the loan.

A Rude Awakening

Despite the terms, White was happy to get the loan, and he wired the money to his daughter. Before the end of the one-month period, White decided to pay back part of the loan and went in with $1,300 in cash. That's when he got a rude awakening. The Cash Store told him he'd have to repay the entire amount. He could make a partial payment, but he would have to take out another one-month loan, which would come with the same fees and finance charges totaling over $1,250. White realized he could pay about $1,300 for months and still owe close to the original loan amount of $4,000.

White felt trapped. "In four months, I could have paid more than what I went to the store for in the first place, and still owe the original loan amount," he says.

White's case isn't unique. In fact, each year about 12 million people take out short-term loans with interest rates of 400% or more, according to research by consumer advocate group the Center for Responsible Lending.

No Ability to Repay

White's loan also bears an uncanny resemblance to sub-prime mortgage lending that was extremely popular just a few years ago and was one of the primary reasons for the financial system's near-collapse in 2008.

"Mortgage loans were given out based on the value of the homes, rather than on people's ability to repay, and that led to defaults and foreclosures. That's exactly the case with these short-term loans. They are written out on the value of a car or another asset, not on the basis of whether you will have enough money left over after your regular obligations to pay back," says Leslie Parrish, senior researcher at the Center for Responsible Lending. "That's how people get caught in these cycles of debt, where they spend months just paying out interest and fees on their loans."

Parrish was the lead author of a study released last year that found "59 million payday loans are opened, not due to a financial emergency, but primarily because the borrower could not repay a previous payday loan and afford their regular expenses without it." The report reviewed loan prices in each state and found "that the average $350 loan costs the borrower approximately $59.15 in fees. The result of these 59 million unnecessary loans is that borrowers pay about $3.5 billion in fees."

There's One on Every Corner

White's loan -- where borrowers sign over the title of their paid-off car to the lender -- is a fast growing business. EZ Corp. (EZPW), for instance, ramped up the number of stores where people can get auto-title loans to a total of 393 in the latest quarter, from 263 in the third quarter of 2009. "Auto-title installment loans introduced in the last two years represented three-fourths of the growth in this segment's total revenues," says Joe Rotunda, CEO of EZ Corp., in a conference call with investors. The company doubled its outstanding auto-title loans in just the last two quarters ending December to over $5 million.

Money stores, where people can cash checks and take out auto-title and payday loans, have also become increasingly accessible, mushrooming from just 500 stores in 1990 to 22,000 today.

These alternative lenders have become the only source of credit for millions of people who don't have bank accounts or have spotty credit records. A Federal Deposit Insurance Corp. survey released last year found that over a quarter (25.6%) of all households either have no checking or savings account, or have a bank account but still choose to rely regularly on alternative lenders such as payday loan stores and pawnshops.

These "unbanked" and "underbanked" households are disproportionately low-income and minority. Households with earning less than $30,000 account for at least 71% of unbanked households, while 21.7% of black households and 19.3% of Hispanics were unbanked, according to the FDIC survey.

Left Shaken

When people like White get spurned by their bank, they don't know where to turn for money up-front. The money stores on Main Street lure people with signs that say: "Get Cash Today! No Credit Check Required!"

But White became snared when he found out he couldn't just pay down the loan bit by bit. Before retiring, he worked as a defense contractor with the government for about two decades. He and his wife collect Social Security and pensions, which are enough for them to lead "a comfortable life." However, they don't have much left over for lump-sum amounts like what his daughter needed. The auto-title-loan experience has left White shaken.

"Never in my wildest imagination did I think that such a loan product could even exist," he says. "You assume the system will have usury laws and protect you from such things."

White finally was directed by friends at his church to the Covenant Savings Federal Credit Union, where he was able to borrow $4,000 at an interest rate of 16%. He used that money and some of his own to pay off the Cash Store loan, with fees and interest.

White says he has written a letter of complaint to the Texas attorney general and to state lawmakers, asking them to take action against 375% interest rates like his. Says White: "Everybody's got to make a profit, but there should be no place for usury in the 21st century."

The Daily Finance, By Pallavi Gogoi

Banks Scambling For New Customers

Saving Money at the Bank

Columbus, Ohio -- While banks are competing -- literally throwing money at customers to get their business -- can you pick up quick holiday cash by just moving your money?

Key Bank is giving $225 for opening a checking account. But, here's the fine print: you must make one debit card transaction and two direct deposits of $100 or more, and the checking account carries a high minimum balance.

The deadline for Key Bank's offer is November 20.

At Citizens Bank, get $100 for starting a checking account with no minimum balance. But, it requires enrolling in direct deposit, use online bill pay and use a debit card.

Chase Bank is offering $100 to anyone opening a checking account -- with a deposit of at least $500. You must use your debit card five times and there's a 20 percent return on your investment.

Capital One's online banking will give you $50. But, you must have $10,000 in the bank on November 25.

Financial experts say if you can keep track of your account and you're aware of the fine print, then there's nothing wrong with taking advantage of the incentives.

Banks Scaring Customers into allowing fees

Rip Off Alert: Chase and Bank of America are both trying to trick customers into "opting in" for rip-off fees, according to the NY Times.

Beginning this summer, banks will have to get your permission before they're allowed to show you a false balance at the ATM or approve debit transactions that will make you overdraw your account. Good news, right? Yes, but these two techniques generate tens of billions of dollars in fees and the banks are doing everything they can to get you to opt in.

To that end, Chase is sending letters to customers designed to scare them into allowing themselves to be ripped off.

"Your debit card may not work the same way anymore, even if you just made a deposit. Unless we hear from you,' the message, emblazoned in large red type, warns," according to the Times' report. "'If you don't contact us, your everyday debit card transactions that overdraw your account will not be authorized after August 15, 2010 -- even in an emergency,' with 'even in an emergency' underlined for emphasis."

When questioned by the Times about the letter, a Chase spokesman gave a laughable response.

"We have begun to reach out to customers and are encouraging them to sit down with a branch banker to make sure they understand overdraft services, which can be confusing. We want them to make an informed decision."

There's nothing confusing about it. You simply don't want to give your bank permission to rip you off!

Bank of America is trying similar ploys to hook people. Their employees are allegedly being re-educated so they know what spin line to pitch to customers who want to opt out.

Remember, these are two banks that only exist in the first place because of the generosity of taxpayers during the bailout! Unbelievable.

Organize Your Finances - Spend Wisely, by Dave Ramsey

On a budget? Still over-spending? Trying to figure out the best way to organize your finances and spend wisely?

Get on a Simple System

I found out that Grandma's way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today's card swiping culture. The envelope system is a key component of the Total Money Makeover plan because it works. Here are a few simple basics for starting a cash envelope system:

1. Budget each paycheck. Budget is a dirty word to most people, but you must budget down to the last dime if you're going to successfully implement the envelope system.
2. Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.
3. Fill 'er Up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
4. When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
5. Don't be tempted. While debit cards can't get you directly into debt, if used carelessly, they can cause you to over-spend. There's something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you'll be less likely to over-spend or buy on impulse.
6. Give it time. It will take a few months to perfect your envelope system. Don't give up after a month or two if it's not clicking. You'll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See ... simple!

Certainly, some bills may come in at different times of the month, so you'll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.

Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month's income and each individual paycheck on paper before it comes in.

By Dave Ramsey

Personal Finance

Personal Finance in America

People in America need cash flow to:

Pay for their lifestyles, and;

Invest to build cash flow producing assets which will provide income during their retirement years, and provide an inheritance to their heirs.

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TAXES - Save money now

The rules have changed when it comes to filing your 2009 taxes.

Tax experts told 10TV's Jeff Hogan that there are three things to consider as you begin filing your 2009 taxes.

New home-owner Michael Valo will have to consider his first time home buyers' credit. Valo used the $7,500 incentive to buy his home in 2008.

"As a first time home buyer there are a lot of new expenses that I'm just not used to in owning a home and taking care of a home and so this certainly helps," Valo said.

Homeowners who received the tax credit will have to pay it back over time, Hogan reported.

Another thing to remember when filing your taxes is mortgage debt cancellation. If you were in danger of foreclosure, banks can negotiate smaller payments. If those payments are not taxed, however, CPA Darci Congrove said you could have a problem.

"Historically the challenge has been that if you were able to negotiate your debt down, you then had a tax problem," Congrove said.

Now, the government will not treat the difference as income earned, so they won't tax it.

The third thing experts told 10TV to watch for was the new rules for Roth IRA's. The $100,000 income limit has been lifted. You can roll over your full balance of your traditional IRA into a Roth.