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.

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.

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.

I'm Back

I've been off line for time trying to regain my health.

Will resume posting blogs.

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.

8 Ways To Ensure Financial Security

8 ways to ensure ..............

Eight ways you can ensure financial security.

Kiplinger wrote, that many of us reexamined what really matters in our lives. Things that seemed so important before the tragedy of 911 now pale in comparison. It says, “financial security may not have seemed a high priority at that time, but it is the cornerstone of a well led life that makes so many other good things possible for your family. Kiplinger gives eight for your family.

Let's blog on 2 of them:

1. Invest In Yourself – Your earning power is the most valuable asset you’ll ever own. Keep your earning power growing through continuous education, training and personal growth.

2. Protect Yourself and Your Loved Ones – Before you attempt to acquire ANY financial assets, make sure you have enough insurance against life’s big risks: serious illness, disability, and even death. My personal experience with this is that it’s so confusing. Trusting someone to give you sound advice on life and other insurance seems impossible.

Mike Silberstien, Northwestern Mutual told me once, “You can only buy insurance when you don’t need it. And the best time to buy it is when you least need it – when you are youngest and healthiest.”

A younger healthy person can get more than five times the coverage than a slightly older smoker with fair to poor health, and pay the same monthly premium. Save yourself a bundle and get protected at an early age.

Kiplinger’s Personal Finance and The Kiplinger Letter.

Credit Unions May Have Lower Interest Rates

The Credit Card Disclosure Act which goes into effect on Feb 22, 2010, prohibits raising the interest rates during the first year a credit card account is opened, ban interest rate hikes on existing balances and require promotional rates to last at least six months.

Congress gave the industry nine months to prepare for the changeover. Many banks, as expected, used this time to put the squeeze on their current customers and boost income from new cardholders.

My bank that I have been with for nearly 20 years, notified me by mail on Christmas eve. Angry, I thought I would check into credit untion rates and move all of my accounts as soon as possible. I'll post a blog on my findings soon.

You’d be smart to check a few credit unions. The Safe Credit Cards Project at the Pew Charitable Trusts compared credit cards issued by the largest credit unions to those from the biggest banks. Credit unions had both lower interest rates and lower penalty fees.

“The advertised interest rates were 20 percent below what they were at the banks and penalty fees were half as much,” says project director Nick Bourke.

You can compare rates at sites such as lowcards.com, bankrate.com, credit.com, cardratings.com and creditcards.com.

Top things to Do In January to Start Your Year Off Right

Be specific with each goal.

1.) Contact your human resources department and make sure they have your home mailing address correct. They'll need to send you your W-2 for the tax year.

2.) Exercise at least 30 minutes each day.

3.) Update your beneficiaries for life insurance policies.

4.) Set your health goals for 2010.

5.) Set your financial goals for 2010.

6.) Schedule six month dental check-up.

7.) Schedule your 2010 preventive medical exams.

7 Steps To Overcome FEAR

7 Steps to Overcome Fear

Many times what keeps us from succeeding, or even starting something that will change our lives is FEAR. Eliminating debt, creating wealth, loosing weight, quitting smoking, exercising, etc., are avoided because of FEAR. We make excuses, but really it is FEAR.

Dani Johnson writes "7 Steps to Overcome Fear."

1. Doubt – don’t open the door or make an agreement with it. Make a decision whether you are going to agree with faith or agree with doubt.
2. Be 100% committed. Commitment destroys fear and doubt. Stay with your plan and fight through adversity.
3. Surround yourself with like-minded individuals, people with vision and dreams who are awake and stirred to do great things.
4. Keep yourself moving forward in action mode. Lack of action creates idleness which opens the door to fear.
5. Stay involved by plugging into tools that increase your skills and feed your belief system. Listen to conference calls and CD’s, attend seminars. Protect and feed the growth that you are experiencing.
6. Practice your core skill sets daily. Focus on your highest and best use of time, the activity that gets you the greatest results. If you’re in any kind of sales profession, that means spending most of your time attracting (advertising and interviewing) and talking (presenting) to new prospects.
7. Make the decision to never quit. Once quitting is not an option, there is no room for fear.

You can’t afford to live in fear. The future of our families and our nation are relying on you stepping up to your potential, taking action and building a future. Get the skill you need to get more and do more and you will fear nothing.

What Good is Wealth Without Health

What good is wealth if you aint got your health? If you are loaded with doe and can't walk through a Nordstroms or Gucci store to spend it, what good is your money? If you are loaded with doe and can't help others, what good is your money?

Health Tip - Make a few changes to your diet over time and make a big difference. Reduce your consumption of bleached white floor and bleached white sugar. Instead switch to organic.

Wealth Tip - Many poeple tend to save money in traditional very low interest generating instruments. A better option would be to eliminate debit with any extra money. It may not be wise to invest money at 2% to 4%, while paying on debit at 10% to 29.99%.

Successful People Don't Quit

Successful people don't quit.

"Success seems to be connected with action. Successful people keep moving.
They make mistakes, but they don't quit."

Conrad Hilton, Founder, Hilton Hotels

3 More Ways to Reduce Your Debit

Tips 5, 6 & 7 to reduce your debit. (According to author and columnist, Gail Vaz-Oxlade)

Previously it was suggested that you may want to ..... redirect those payments (payments made to college loans for your children) towards eliminating your own debit sooner. Put together a 20 month plan, cut all spending that is NOT critical. Don't forget to set small reachable goals and reward yourself in some way. Let's face it, we all need to have some fun.

Tip #5 Chip Away At Your Debit - To reduce debt, make a list of every single debt that you have and rank them in order of the highest interest rate, not the highest balance. Pay off the highest interest rate card first. Every time you have extra money, throw it at the debt you've targeted until it's gone and then stop using that card! Pay only the minimums on the other debit. Making a checklist and crossing out the debt, you'll feel better as you start to see it disappear. When your debt is paid off, take the money you were allocating for debt repayment and put it towards savings.

Tip #6 Keep Things In Perspective - Getting out of debt isn't easy, but you have to remember that you cannot let debt consume you and hurt your relationship. You and your partner need to work through the debt together, making sacrifices but focusing on what's important as well - your family and your relationship. Make time to do something special with your spouse so you can remember why you fell in love, set time aside to do group activities as a family to involve the kids as well. Don't let your debt get the best of you.

Tip #7. Getting Out of Debit Does NOT Mean You May Never Spend Again - When working your way out of debt you can still spend on things that are important to you, you just need to plan and save for them. For example, if you really love to travel, don't cancel your trip for the year, figure out a way to do it on a tighter budget and save a little each month for it so you don't have to put it on credit cards.

Get Out of Debit Quickly - A Step By Step Process

Get Out of Debit Faster With a Step By Step Plan - Do you think following any of the steps below will make you uncomfortable? GOOD. It should. Get over it. Get through it and begin to enjoy life for the first time in a very long time. Consider the alternative. You get paid on Friday and by Wednesday its all gone and there's a heap of bills to pay, and you still need to feed the kids and pay for transportation to work. You do this week after week, year after year, decade after decade. It makes you feel extremely uncomfortable, and causes extreme stress on your family and relationships.

1.) Cut your credit card and establish budget:
a.) Cut them, burn them, melt them, lock them up in a safe deposit box.
b.) Live on a cash bases.
c.) Keep a daily log of everything you spend money on.
1.) Categorize expense benchmarks to the following percentages:
a.) 10% Savings
b.) 15% Transportation
c.) 15% Debit
e.) 25% Life
f.) 35% Housing

2.) Reduce your interest rates:
a.) Call each of your credit card companies.
b.) Negotiate lower interest rates.
c.) If the first employee says "no," ask to speak with the supervisor, or a persons with the authority to change your rate.

3.) Bring more cash into the house:
a.) Feed and walk a neighbors dog
b.) Baby-sit
c.) Offer to paint someone's the inside of someone's garage or seal cinder block basement walls, shovel snow, tooter, take surveys, etc. Please comment with more ideas to make extra money.

4.) Prioritize your life. Ask your self some tough questions. Are you spending much of your money on college student loans for the children? How long do they have to pay that loan off? How long do you have to live? Have they searched high and low for every available scholarship? Have they applied for as many as possible? Are you trying to pay off their loans, while your credit drops lower and lower, and your debit gets larger and larger? "Tough Luv" may dictate that you discontinue (possibly for 1 to 2 years) paying on their loans, and redirect those payments towards eliminating your own debit sooner. Put together a 20 month plan, cut all spending that is NOT critical. Don't forget to set small reachable goals and reward yourself in some way. Let's face it, we all need to have some fun.

Live Simply Today, Prosper Tomorrow

Last three Ways to Secure a Good Financial Future:

Diversify – Successful investors minimize their risks by diversifying their portfolios with a mixture of stocks, bonds, real estate, and cash.

Live Simply Today, Prosper Tomorrow - While it’s not fun, it may be the only way to fund your long-term goals – collage, vacation home, early retirement.

Create a Better World – Your own financial security depends on the physical and spiritual well being of others. Give generously of your time, talent and money.