Welcome to Wise Bread's Best Money Tips roundup. Today, we give you tips for surviving a horrible job, the 12 things every Italian kitchen should have, and how to make a knotted scarf from a t-shirt!
5 Tips for Those Working in a Job They Hate – Does your day job stink? Rejoice in the fact you're not alone – then check out this insightful article. Bargaineering
Smart Strategies for Saving Time and Money when Flying – There are some simple ways to avoid stress and overspending when taking a plane to your next destination. Can you believe that signing up for free samples is one of them? Mom Advice
The Italian Pantry: 12 Ingredients to Keep in Your Kitchen at All Times – Wanting to cook like a real Italian? You'll fail miserably without the dozen essentials. (While you're at it, here's how to make your own sundried tomatoes!) Scordo
7 Surprising Facts about Millionaires – Think that all rich people inherited their windfall? Think again. Bust seven myths about the wealthy in this quick read! Watson Inc.
DIY: Make a Knotted Scarf from a Men's T-shirt – Just like the ones in the catalog, only much more affordable! Because She Started Knitting
Crispy Baked Taco Bowls – Just flip a muffin tin on its top to make these delicious bowls! Annie Eats
Why You Shouldn't Rely on Clothing for Actual Waist Measurements – Can you believe that some brands of men's pants are a whole 5 inches off in their measurements of the same size? No wonder shopping is so difficult! Esquire via Lifehacker
What to Do with the "Other" Pile – Sorting things leave you with a giant "don't know what to do" pile. Tackle it the right way with these easy steps. Unclutterer
How to Keep Your Financial Information Safe – With all the places you share your personal info with, it's no wonder that many shoppers don't feel safe! These tips can help you nail down your security practices in a jiffy. US News My Money
Yes, You Will Get Social Security – Are you one of the Americans that believes SS won't be around for you when you retire? Read this article (along with some of the dissenting comments), and let us know what you think! Get Rich Slowly
I recently took a long drive to spend a short time with my 93 year-old-grandpa. Grandpa has always had an infectious smile where he happily shows off his pearly dentures. Grandpa loved his wife until death did them part. Mum told me how he used to help so much around the house when she was a baby. This was during a generation when dads didn't typically do the whole baby thing. My grandpa was active in his local church and always participated in community activities. When I hear about everything he has accomplished in his 93 years, it reminds me that my grandpa is a hero.
A hero isn't someone who wears a crimson cape. A hero is not someone who possesses super human strength. A hero is someone who consistently does amazing things over a lifetime.
My wife recently watched our three young kids for 10 days while I was traveling. Each day she wakes up ready to give up more of herself to give our kids an amazing childhood. She cleans, she scrubs, she changes, she washes. She does heroic activities on a daily basis.
I wish more "ordinary" people would be recognized for their extraordinary contribution to our lives. I wish that grandma and grandpa could get as much press time as our favorite TV celebrity. I wish we'd learn to idolize those who really make a difference instead of drooling over people with already inflated egos.
I sometimes wonder if I've ever seen a real romance movie. I've seen a lot of movies where two people meet each other, have strong feelings towards each other, overcome a difficulty, and then get married as the movie ends.
What does any of that have to do with love?
Love is not a strong feeling that we chase after and eventually capture.
Where is the Hollywood movie about the husband, wife, and kids? Where is the family that struggles to make ends meet as they touch base for just a moment to coordinate schedules? In their worn-down and fatigued resolve, they serve each other and honor each other.
That, dear friends, is where we find true love. That is where we witness a truly heroic marriage relationship.
Want to be extraordinary? Want to make a real contribution to this world?
Do you have any heroes you want to honor? What are other ways to be a superhero without any supernatural abilities?
With food prices rising all the time, it costs more and more to feed a family these days. While some people become rabid coupon-cutting ninjas and others begin to make more meals out of basics like beans and rice, still others take a different route. They find a bargain grocery store in their area and do the bulk of their shopping there.
There are several different types of bargain stores. Some are outlet stores where food that is refused by regular grocery stores is sold at lower prices. Many times, the food is only refused because of a minor packaging error, so you can get the same quality at lower prices.
Other bargain grocery stores specialize in a certain brand. When items get close to their expiration date, they are moved to these stores and sold at lower prices. While you have to eat foods bought at these stores quickly, it will cost you much less.
Finally, there are "regular" grocery stores that simply sell things at lower prices than their competitors. Their business plan involves moving more items at a lower profit margin so they can stay in business and continue to sell items for less.
Bargain grocery stores exist in the same sorts of spots as regular grocery stores. If the stores in your area tend to be part of a strip mall, look there. If they tend to be free standing a little bit out of town, look there.
Most companies that run bargain grocery stores are smaller than those that run large stores, or the bargain stores may exist as a subsidiary of a company that also runs a national chain. Therefore, the names of the stores available in your area may be different from those available in another area. Since these brands aren't as recognizable, you may have to do some searching to find them.
There are lots of ways to save at a bargain grocery store. Many times, you'll save on almost anything you purchase there. If you combine that deal with a coupon or a sale, you'll save even more. Many of these stores also offer store brands of popular items, and these will cost you less than the regular version.
This isn't an exclusive list of bargain grocery stores, but you can start here to see if any of these are in your area.
Save-A-Lot
Relatively new to the bargain grocery scene, Save-A-Lot promises a 40% discount from regular grocery stores with more if you use their printable coupons. Their site will help you locate a store in your area, and also has lots of yummy recipes featuring their food.
As a side note, when they found out I was interested in doing an article on bargain grocers, Save-A-Lot sent me some samples of their store-brand items. They are good — as in, you won't be able to tell the difference between them and the usual brands.
Aldi
Aldi claims to help you shop smarter, and many reviews online confirm this. Their website features special buys, where you can save even more than usual. In addition, their meal planner will help you utilize the bargains you can get at the store to their utmost.
Grocery Outlet
Though their website won't let you see all their products, you can browse their sales to get a feel for what they carry. Grocery Outlet features a blog and a Twitter feed, both of which can help you get access to additional savings and can help you get ideas for making meals out of sale items.
Food 4 Less
A subsidiary of Kroger, Food 4 Less offer print-at-home coupons, the opportunity to purchase gift cards for many different stores, and programs to help local schools earn money, just like the bigger grocery stores. In addition, you get the usual savings you can expect from a bargain grocery store.
If none of these stores are in your area, simply search online or ask around. Most urban areas have bargain grocers, and they can help trim your food budget more than you thought possible.
If you've ever hesitated before redeeming your airline miles and wondered if you're getting a good deal, you're in good company. Redeeming reward flights is akin to transacting in a foreign currency where you have no idea what the exchange rate is, which is never an advantageous position. To give you a leg up, NerdWallet has put together a comprehensive airline rewards infographic for valuing your miles so that you can comfortably decide whether to redeem them or simply use a cash rewards card instead.
Extracting every last drop of value out of your airline miles can be hard work because so many variables are at play. As you're planning your trip, factors such as when you travel, how close you are to your travel date, your flexibility around dates of travel, whether you have elite status with your airline, and plain old random chance can all affect the value you're getting. After analyzing hundreds of flights, we found that mile values can vary anywhere from one-tenth of a cent (or less) to 2 cents per mile. In other words, if you had 100,000 miles lying around in your account, those miles could be worth anywhere from $100 to $2,000 towards your airfare, depending on when you use them.
We also believe the future for miles is looking decidedly bleak. According to IdeaWorks, reward seat availabilities currently range from 11% to 99%. However, even Southwest Airlines, the industry leader in reward seat availability, may not be able to keep its performance up as the overall number of seats decline. "There are about 17% fewer seats now available than there were a year and a half ago," says BudgetTravel.com senior editor, Sean O'Neill.
To top it all off, airlines are charging fees for everything from bags to blankets. These fees can make a substantial difference in the cost of your flight and are often overlooked by consumers when choosing airlines. Southwest and JetBlue are the last two major airlines that allow passengers at least one free bag. While most airlines will make you pay handsomely for that third, fourth, or tenth bag (to the tune of $100 or more per bag), Virgin America has an unusual but potentially valuable offering with its $25 per bag for up to ten bags policy. If you are planning a cross-country move or simply have trouble traveling light, Virgin America might offer the best value for you.
So should you write-off all those miles you've carefully earned over the years? We don't think so. While we believe travel rewards go-getters are better off spending future dollars towards earning points in a hotel rewards program such as Starwood's Preferred Guest program, savvy consumers can follow a few simple steps to get the most value out of miles already banked.
First, identify the lowest price of the itinerary you're looking for, before taxes and fees, using a site like Kayak. Then check the site of your own rewards program to find out how many miles it costs to fly a similar itinerary on your airline, as well as on any partners in your airline's alliance. Lastly, compare the dollar cost on the other airline to the rewards cost on your airline to calculate the cost per mile, and see how that ratio stacks up against the numbers in our infographic. If you're getting a better-than-average deal on your own airline, cash in those rewards and book it. Otherwise, use your cash rewards card to book the cheaper flight.
We at NerdWallet also scoured redemption rates at eleven of the world's largest hotel networks and found that, on average, hotel points offer better value for money than airlines rewards, which we demonstrate in our hotel rewards infographic. And unlike the sickly airline industry, we don't see an industry-wide decline in the near future for the number of hotel rooms available. On a cents-per-point basis, we found the most value in Starwood's Preferred Guest program, covering such household names as Sheraton, Westin, and the W. At 2.3 cents per point and no blackout dates or extra point charges on standard rooms, SPG tops our list among all hotel rewards programs.
In addition to offering higher average point values compared to airline mileage programs, hotel rewards programs are also better at showing their appreciation for your loyalty. NerdWallet estimates that consumers can earn a free night with as few as ten nights at chains such as Carlson and Marriott. And Starwood often has "Stay 2 Nights, Get 1 Free" promotions. Plus, let's face it: When was the last time you associated "service" with the airline industry?
As a caveat, bear in mind that while certain hotel networks may offer higher value per point, they may not necessarily suit your travel profile best. Also, hotel rewards programs tend to be very similar in features, so we believe the best practice is to pick one or two hotel networks that suit your travel habits best and stick with them. In other words, don't spread your wallet thin with too many hotel programs. Use our infographic to identify the program that suits you best, and let it reward you for your loyalty.
This is a guest post by Tim Chen of NerdWallet. Tim was formerly a hedge fund analyst specializing in credit card networks and technology companies, before becoming a victim of the financial meltdown. NerdWallet is the Kayak for credit card search, and seeks to become the number one source for unbiased online credit card information. Here are more resources from NerdWallet:
Life on an island is really great except in one respect: you run out of stuff. Because of the isolated nature of being in the middle of the Pacific Ocean, 2,300 miles from the mainland, retailers run out of stuff, too. When they do have the things you need, they are often overpriced. When my family moved years ago, we naively failed to anticipate how much we would use online ordering.
The following websites have something special: great customer service. Without exceptional customer service, we would be pretty frustrated. Another prerequisite for us that would not be necessary for people in the contiguous 48 states is a company's willingness to ship to even Hawaii or Alaska — something a surprising number of sites (and eBay vendors) refuse to do. Here are some of our favorite mail-order websites and why we think they're better than average.
My recent search for mustard powder to complete my "Should You Make Your Own Condiments?" series led me back to Penzeys Spices. I had splurged on a jar of mustard powder locally, tried a recipe (horrible, but on about that later), and then I was out of mustard powder again. It was too expensive to buy another jar at the grocery store. Did Penzeys have mustard powder? Yes, absolutely, as well as a multitude of other spices and seasonings.
Their website itself is pretty basic. Their catalogs are quite a bit flashier and include homespun stories and customer recipes, many of which are quite good. Penzeys has become one of my favorite Christmas and birthday shopping favorites. I like the way they pack my order, adding a personalized "thank you." The last time I ordered, they included a free jar of lemon pepper in my box. Their items arrive on time, in perfect condition, and are great quality. The gift boxes have been well-received. We just tried their new "Arizona Dreaming" spice mix and it is delicious on meat, french fries, and vegetables.
I do not watch the QVC show now, but must confess that I did about 21 years ago, when I was up in the wee hours with an infant. I also ordered a lot of merchandise in those early hours. QVC's customer service is excellent, both on the website and on the phone. They quickly identify me, verify my information, and fill my order. Items arrive on time and the quality is good. I like the way the website is laid out, particularly the "food" section (which has been the source of many popular gifts). Shipping is also very reasonable — a really important factor. My favorite QVC gift to send: Junior's Cheesecakes, which are both showy and delicious.
We have a Macy's store, and I do go there to shop. The reason Macy's.com made this list is that I really love their bridal registry. They have this process down perfectly. The site is easy to navigate, and even if I only know one of the parties, I can find their registry easily. The site is also nicely categorized so that you can spend just what you want. Deliveries are prompt and the item can be gift-wrapped. I am delighted to see when brides register for the Le Creuset enameled cast iron pots; I have one and know they are going to last.
Not only does Amazon have everything but the kitchen sink (oh, wait — I just checked and they DO have kitchen sinks), but items are of good quality, and things arrive practically telepathically. I like their "recommendations" feature, especially when they alert me to a book or CD I might like. Returns to Amazon are so easy: print out the label, slap it on the box, and drop off at UPS. Shipping is fair or sometimes even free with their "Super-saver shipping" option. They let me know the status of my order via email. I also like their customer product reviews, which are very frank. This has proven to be a valuable decision-making tool on many occasions. For my post about yogurt-making, I purchased the Donvier eight-cup yogurt maker from Amazon and remain very happy with that product.
With two dogs and two cats, we really go through Revolution, a flea/tick/ear mite/heartworm prevention product. PetsGard, based in Australia, offers very competitive prices on pet care items. A couple of months ago, two of the medicine packets from a six-pack they sent to us were broken. My husband contacted them; they replaced it them with not just two packets, but six! There is some great customer service. Unfortunately, our declining dollar does not buy as much in Australia as it used to, but it is still cheaper than buying at the vet's. If you use Revolution or a similar product, we think PetsGard is worth a look.
After a dry spell, suffering from withdrawals of Norfolk Manor Lemon Biscuits, I found them (along with Boland's Lemon Puffs) at the English Tea Store. Yum! They also have a huge variety of tea. When I watch too much BBC America, I like to peruse this website. What I really love, though, is that they consistently get things to gift recipients on time, in good condition, and alert me of the status along the way. Prices are reasonable. They are one of my new favorites for gift-giving. The lemon biscuits come in a fun cylindrical container. They are also one of the few places where I can find Lapsang Souchong black tea.
Another favorite gift site for us is our very own, local, Big Island Candies, which specializes in chocolates and shortbread cookies with an island flair. Their products draw rave reviews from our gift recipients, their customer service is excellent, and their website is beautiful. Warning: IF you want to save money, don't browse it on an empty stomach! It is really hard to pick a favorite item from this store, but we love their Peanut Butter Brownies (covered in chocolate) and their Kona Coffee Shortbread (pictured above).
Indulge me in one more Hawaiian favorite: the Kona Natural Soap Company. Their use of all-natural, exotic ingredients available in Hawaii makes for gentle, unique, wonderfully scented, beautifully packaged gifts. Their customer service exudes the aloha spirit. If you cannot come here for a vacation, try some Kope Kokoleka (coffee/cacao soap) or Nani Lemi (lime/litsea soap).
Our college-age daughter has been taking dance since she was nine years old. Merely wearing out dance shoes and clothing is expensive enough; but each move from one geographical location to another, and each graduation from one dance troupe to another, usually results in new requirements for dance togs. Most instructors and studio programs have strict rules for the colors of leotards and tights.
All of this made it necessary for us to find a reasonably-priced alternative to more expensive and often minimally-stocked local shops. I found that alternative long ago, at Discount Dance Supply. Like all of the best mail-order places, their customer service is excellent, their prices are reasonable, and they make returns a snap. The products take a lot of abuse but are very good quality, so they last.
Though my husband has only ordered from PlumbingSupply.com once, he nominated it for consideration. He ordered a valve to isolate our on-demand water heater for periodic flushing. When the valve arrived in a timely fashion, also inside the box were a thank-you note and a baggie full of hard candies. He thought that was a nice touch, indicating that his order truly was appreciated.
Readers, I know that everyone's needs for mail-order websites are different, so please chime in with your favorites! I can't wait to learn about them.
In a recent weekly Tweetchat that Wise Bread participated in, we asked some readers what financial advice was getting old. The responses were varied, but the themes were the same: "Quit telling me to cut out my daily latte! I don't even drink latte!" Basically, people are feeling the strain of the economy, but are still getting one-size-fits-all answers to help them stay within budget.
Do you feel the same way? Or do you find this to be good advice for you, personally? Maybe there is some other bit of advice that you've heard here or on other blogs that you're just sick and tired of hearing. Share with us the personal finance tip that you are tired of hearing for a chance to win a $20 Amazon GC!
We're doing three giveaways — one for random comments, one for random Facebook "Likes", and another one for random tweets.
If you're inspired to write a whole blog post OR you have a photo on flickr to share, please link to it in the comments or tweet it.
Good Luck!
It's hard to believe, but placing your dough in a cold oven and using the preheat time to allow the dough to rise makes for delicious, gluten-free, French bread in under an hour, from start to finish.
My husband and I have been on a mission to find the perfect French bread recipe ever since we discovered he was gluten-intolerant. I've been tweaking this one for awhile, but I've got it where the crust is crusty and the inside is nice and soft. I can tell when something's a hit in my house by how quickly it's gone; this recipe only lasts a couple hours.
Make a few loaves ahead of time and freeze the rest for mid-week sandwiches.
Makes two loaves.
Enjoy! I dare you to not eat it all in one sitting.
Which is the better investment? Both Exchange Traded Funds (ETFs) and mutual funds offer diversification and low-cost options. Knowing how they work can help you decide which is best for your needs. Let's have them face off, and see how each performs.
ETFs are formed of large batches of stocks or bonds, called Creation Units, and held by institutions. Individual investors can buy shares of these units.
You'll need to keep reinvesting your capital gains and dividends by buying new batches, as they don't automatically do so. And, watch out for small or new ETFs, which may be "thinly traded" and hard to sell. ETFs can only be sold when there is a willing buyer on the other side of the trade.
ETFs and Index mutual funds share the following traits. Both are tied to a benchmark, or index, so don't expect them to outperform that index. You'll need to buy several types to get proper diversification. There is no human at the helm, so if the index is headed downhill fast, no one will switch into a defensive position.
A mutual fund is a collection of stocks, bonds, and/or cash investments that are packaged together, like a suitcase of clothes. They can be "closed-end" or "open-end."
Closed-end funds are like a suitcase that gets packed once, locked, and stays in the closet.
Most mutual funds are open-end. Their contents get unpacked and changed over time. It's like a frequent traveler who likes to buy new clothes and sell old ones along the trip.
Open-end mutual funds can be actively managed, or passive, index funds.
Actively managed mutual funds are run by managers who pick what they want to put in their suitcase, or portfolio. These have higher fees because management has to work at figuring out what and when to buy and sell. Some people prefer to keep part of their investments under professional care.
Unfortunately, professional management doesn't guarantee better results, with only about 20% beating the averages. Choose carefully, looking for good 5-10 year performance, and goals that match your needs.
Passive, index mutual funds match a pre-determined benchmark, such as the Standard and Poor 500 or Russell 2000. Index mutual fund holdings may get adjusted over time, as these benchmarks change.
If you need a broker or adviser to help choose your fund investment "wardrobe," be prepared to pay more. You'll be charged a 1%-5% "load."
No-load mutual funds don't charge a sales commission, and there are thousands of them available. They're great for do-it-yourself investors who know a little about what they want.
Speaking of fees, all funds (load, no-load, and ETFs) have annual management fees, or "expense ratios." Expense ratios usually cost 0.2% to 1.5% per year.
ETFs and Index funds generally have the lowest fees, as they are managed mostly by computer. Compare fund costs with the free fund analyzer tool from the Financial Industry Regulatory Authority (FINRA).
There is no "one size fits all" investment, so put away the dueling pistols. The main thing is, pick investments geared to your needs, and get started.
What do you like best about ETFs or mutual funds?
This is a guest post by Robin Applegarth. Robin started The Silver Purse in September 2009. An investor with over 20 years’ experience, she hopes to inspire women to get "money literate" and build the resources to reach their goals. Read more by Robin:
There is a big trend right now in Hollywood: wedding vow renewal ceremonies.
From superstars like Mariah Carey, Salma Hayek, and Heidi Klum, to reality TV stars like Tori Spelling and the "Real Housewives," couples are getting hitched again, and again, and again. Who would have thought that renewing vows would be so très chic?
While it is always fun to get a glimpse inside Hollywood life and these hot couple's happy times, you are more likely an average Joe and Jill. It may be nice to talk about renewing wedding vows, but finances can cause cold feet at the altar. However, renewing wedding vows can be a satisfying and joyful occasion without added budgetary strains. Here are some tips for renewing your vows on a budget.
First and foremost, decide on a budget so you can then make rational decisions on where to spend your money. Determine what's most important to you and your spouse, and try to include the most important items first. Decide whether or not you will be hosting the ceremony and/or reception. The size of your guest list may decide for you.
Once you've reached a decision on the budget, work on the ceremony. A crucial detail and budget cruncher is always location. The cheapest option is keeping it local. Some couples choose to renew their vows at their local church. Personally, I prefer something a little less formal and more exotic or meaningful. I don't necessarily mean somewhere in the Caribbean or South Pacific (although that would be very nice). It can be as simple as a state park, garden, the restaurant where you had your first date, or your own house.
Renewing your vows is not an official ceremony, so ask a close friend, relative, or a clergy-person to perform the ceremony. This will not only cut costs, but make the ceremony more personal and special for you and your spouse.
If you are interested in a wedding that's more honeymoonesque , look for places that offer packages on travel, such as a bed and breakfast, a cruise, an all-inclusive resort, or an air-plus-hotel packaged deal. Even better, look for a packaged wedding deal to help take the stress and cost out of arranging the renewal ceremony and reception yourself. Many wedding sites and resorts offer packages for both the budget-minded and the non-budget minded. Prices usually start at $80 to $90 and include an official, vows, and a certificate.
Do your research ahead of time and find out when the off-season is for your destination. Not only are standard rates lower, but there are also more promotions. If you want to take a cruise, look for deals in the spring and fall when there is less demand for bookings. For example, Travelocity is offering a three-night cruise (in late November) to the Bahamas for $189 plus 15% off all shore excursions.
Save even more by watching the travel discounters for additional coupons or promo codes. It's like getting a double discount. If travel in the off-season is not an option, then look for coupons for early booking discounts. The best place to find early booking discounts is to go right to the source: the resort's website.
Now that you've decided on travel, think about your invitations. If you are really on a budget, you could just do an evite online or through Facebook. If you want something a little more formal, try designing them yourself either online or with Microsoft Word. Export it into a standard format and then upload it to an online printer such as Vistaprint or Overnight Prints. Take advantage of the discounted pricing and double up the savings with a 20% off coupon. You'll have professional invitations without the extra cost.
Don't forget the photographer or videographer! This is probably one of the most important things. It doesn't mean you have to hire a professional. Ask a friend to document the special occasion for you. If you do choose to have a professional, try to find one that will give you all of the pictures digitally for one set price.
Last, but not least, you need to decide on what to wear during the ceremony. If you are not wearing your original wedding dress or tuxedo, then look for discount or closeout dresses. Sites like eDressMe offer closeout prices on designer dresses. For even more of a discount, look for coupons to apply to your order.
Beyond these decisions, the rest is just icing on the cake! Just remember to make it meaningful and have fun.
This is a guest post by Sok Verdery. Sok is the CEO of CouponShack.com, a leading coupon website that helps consumers save money and get the best deals at their favorite stores.
Welcome to Wise Bread's Best Money Tips roundup. Today, we share the 20 ways you know you need some money help, 10 little-known personal development blogs, and how to turn an old tie into something more fashionable!
20 Signs You Need a Financial Makeover – If you charge a group’s dinner on your credit card, then spend the cash that your buddies hand over to settle up, you may need a financial makeover. Read all twenty of these red flags for a chance at a better life! Budgets are Sexy via Enemy of Debt
Hand Painted Bottle Stoppers - These are a classy and affordable way to dress up a bottle of wine. They make a great gift, too! Skip to My Lou
31 Days to a Better Bank Balance – While we can only imagine that the rest of the 30-day series will be spectacular, this post on setting priorities is a great way to kick off day three! Money Crush
The 10 Personal Development Blogs You Wish You Knew About Earlier – It’s great to venture out beyond the most popular personal development blogs. These little-known treasures are just waiting to be explored! Viralogy
Re-tailor Old Ties into Skinny Ties – If you like the look, why not create it with this DIY design tip? Design Mom via Lifehacker
Taking Out a Loan? Questions to Ask First – These are basic questions, but they often go unanswered! Quiz yourself before you sign on that dotted line. The Digerati Life
Super Size Your Savings at Fast Food Restaurants – If you were to order the same combo meal 3 times a week at popular restaurants, you could really blow your budget (especially if you’re getting the large combo.) Get the stats on nutritional info and the true cost of getting the larger meal. Green Sherpa
Dying in Debt: Can You Take it With You? Think your debts are wiped out when you die? Think again. Check out these tips for keeping your survivors from inheriting your debts. Money Talks News
DIY Backyard Beekeeping – If you can garden, you can be a beekeeper! Learn more about starting up this amazing and much-needed hobby! The Daily Green
The Truth about Hotel Key Cards – This urban legend needs to be debunked. Hotels don’t really store your credit card information on your hotel key card – even if it is used for hotel purchases. Southern Colorado BBB Blog
Ah, the work/life balance. For many women, this should be called the "work/mommy" balance, because after working all day and being a mommy all night, there is little else to balance. Moreover, most women find the work/mommy "balance" to be more like being drawn and quartered — painfully being pulled in opposing directions by the overwhelming demands of each role — always feeling they are failing at one or the other, if not both. Now, I don't want to paint too bleak of a picture. Parenthood is a beautiful, magical thing — but it is truly challenging for the working mom.
For some women, these challenges begin when they announce to their employer that they are pregnant. Although everyone is congratulatory and offers hugs all around, male and female managers alike will often wonder whether you securing the leading role as "mommy" will affect your performance as understudy "worker bee" on their main stage. This is a legitimate concern considering that you don't even know how this new role in an evening drama will affect you personally or professionally.
The good news is that the best of employers will make every accommodation to ensure that you are able to have a stress-free birth and recovery. Notice that I did not include "pregnancy" because, until you have your baby, most employers will not alter their expectations regarding your work. Many women work up until the day, if not the hour, of their pregnancy and barely have time to punch the time clock on their way to the hospital.
What if you have an employer that is not committed to accommodating your choice to bear children? What about an employer who assumes that you will be shortly exiting stage left and would rather give you the Sheppard's Hook long before you offer your tearful but voluntary final bow?
The good news is you have rights should you encounter a less than sympathetic employer regarding your pregnancy. The bad news is that you live in the United States. Yes, that's right: The U.S. disappoints when it comes to parental leave. The U.S., along with Lesotho, Liberia, Swaziland, and Papua New Guinea (I'm not making this up) are the only countries that don't guarantee paid parental leave.
Being one to focus on the good news rather than the bad, let's have a look at the rights you do have under both federal and state law in the U.S.:
As its name implies, the Pregnancy Discrimination Act (whose regretful acronym is "PDA") is a federal law that prohibits your employer from discriminating against you from the moment you announce you are "with child." These rights extend through childbirth and any disability resulting there from. These rights prohibit the following:
Keep in mind that the PDA is not bullet-proof. It only applies to companies with 15 or more employees. Also, many of the rights around benefits and security only apply if your employer offers the same benefits and security to other employees. In other words, the PDA only requires that your employer treat the pregnant you equally, not specially, vis-Ã -vis your co-workers.
The Family and Medical Leave Act, or FLMA, is another, newer federal law that allows a new mother — whether through childbirth or adoption — or her partner to take up to 12 weeks of unpaid leave in the 12 months following the birth date of their child. You can take this leave all at once or, easier on paper than in practice, in installments following the birth of your baby. Similar to the PDA, the FLMA requires your employer to reinstate you at the same or equivalent job when you return.
Unfortunately, there are even more bullet holes in the FMLA than the PDA. It only applies to companies with 50 or more employees and, typically, you need to have worked for a full year or 1250 hours before your company's FMLA obligations kick in. So, don't plan on getting hired at IBM, having a baby the next month and leading a life of 12-week luxury, albeit unpaid, while Big Blue patiently waits.
The good news is that many employers who have less than 50 employees will have employment policies that mirror or even expand the benefits mandated for larger companies under the FMLA. And once those policies are in place, you are entitled to them under the PDA and potentially other state laws.
The state that you live in may have its own laws offering you additional rights regarding your pregnancy and parental leave. The most common and valuable of these additional rights is Short-Term Disability coverage (another regretful acronym of "STD"). STD is designed to cover your wages (or at least a portion of them) due to some form of disability including disability resulting from pregnancy and/or childbirth.
Most states cap the amount of STD benefits, with six weeks typically being the amount of time you are covered for pregnancy. Some states go as high as 12 weeks or extend the time due to complications with your pregnancy (e.g., bed rest) or birth (e.g., a C-section). Your state will usually cover 50% to 66% of your income and you will probably be required to pay an amount from each paycheck to cover your salary (or a portion of it) during the time that you are disabled.
Your company's human resources department can educate you on your state's STD coverage and any other rights available in your state. He or she can also help you maximize your leave using a combination of parental, personal, vacation and/or disability leave.
In a nutshell, these are your various rights once you are pregnant. The key is to do your research early in your pregnancy regarding the particular facts of your employment situation. With your legal house in order, you will feel that much more comfortable when the house lights go down. You will be that much more prepared to hit the "mommy" stage with grace and aplomb.
This is a guest post by Mark Britton, Founder and CEO of Avvo. Avvo rates and profiles 90% of the lawyers in the United States and has the industry's largest Q&A forum where you can ask these lawyers legal questions regarding your employment situation — anonymously and free. For more resources from Avvo:
These days, people keep all kinds of data on their computers, from family photos to financial records. With no backups, you could lose all of the information for good if your computer crashes. All your cherished memories and important records could be gone forever. Although backing up to an external hard drive or another storage device is an option, theft, fire, or another natural disaster could wipe out your backups as well as what's on your computer.
The logical and most convenient answer to this problem is online backup. Backing up your data onto an off-site server protects you by duplicating everything on your computer and storing it in a separate location. This way, if a fire destroys your computer, or if someone steals all of your electronics, you won't lose your backups at the same time.
An online backup service installs software on your computer to control the whole thing and make it as user-friendly as possible. Most backup services allow you to schedule a time of day or night for the backup to run automatically, usually when you are not using the computer so that you can back up your data quickly without slowing down your computer while you are working on it. The software checks to see what files have been added or updated since the last backup, and only backs up those files. The software also encrypts your backups for your security and makes sure that the files can only be accessed from your computer or with your account.
There are a number of online backup services to choose from. Some are easier to use than others, some give you more space than others, and some cost more than others. It is important to carefully review the features of each service before making a choice. Here are a few of the most popular online backup services and how they rate when compared against one another.
Mozy is possibly the most popular and well-known of online backup services. The service offers two different plans: MozyHome Free and MozyHome. Both programs are user friendly. After downloading the software on your computer, you can control almost every aspect of your online backups, including how often your computer backs up, when your backups start, and what folders or files are to be backed up. You can even control how fast the backups go! The faster the software handles the backups, the slower the rest of your computer runs, so this is an especially useful feature.
Mozy is also very affordable. If you don't have much to backup, you can get 2GB of backup space completely free. MozyHome, on the other hand, offers you a truly unlimited amount of backup space, and costs only $4.95 a month.
IDrive is very similar to Mozy in that it has both a free 2GB plan (IDrive Basic), and a $4.95 per month plan (IDrive Pro). Instead of the paid plan offering unlimited storage space, however, you get 150GB — which may seem like a lot, but you may use it up faster than you might think.
IDrive is a better service than Mozy in some ways, though, as many people find the software easier to use. Also, IDrive performs backups much faster than Mozy, so if speed is more important to you than the amount of space you get, you may want to check out IDrive.
Another popular online backup service is Carbonite. Although this one doesn't have a free plan, it does offer unlimited data storage for just $49.95 a year, which works out to be a little less per month than either Mozy or IDrive.
If security is your top concern, Carbonite is probably the best online backup service to use, as it does the best job of encrypting your data to keep it safe. However, users report that the service is slower and the software more difficult to use, preventing Carbonite from being a top choice for many people.
There are many factors that go into choosing an online backup service. Security, speed, ease of use, storage space, and cost are all things you need to think about. Be sure to research several services before making your choice, checking reviews and comparisons, as well as each service's website, and considering what features are most important to you!
This is a guest post by Jason Kay. Jason has used online backup services to safeguard his home business data for over three years.
The apex of back-to-school anxiety, Labor Day, signals the unofficial end of summer.
But it's the start of a fleeting, beautiful season for students of saving: summer clearance.
End-of-summer sales are nearing full swing as the calendar turns to September. Retailers slash prices in a mad dash to clear shelf space in advance of the looming holidays. The final days of summer are a great time for consumers to grab a range of products at steep discounts.
Granted, some of these purchases put a premium on patience. Items like patio furniture, garden equipment and barbecue grills won't spend a ton of time outside the box before cold weather approaches. In that respect, the end-of-summer sale is an exercise in forethought, not to mention supply and demand. It's a heck of a lot cheaper to buy a gas grill in September than in the first few grilling days of June.
Still, implements of fire and flame aren't the only great bargains to be had as autumn nears. Here are a five other hot-ticket items at those summer clearance sales.
OK, this isn't markedly different from grills, but it's definitely worth mentioning. Patio tables, chairs, swings and the like tend to take a nose dive in price at summer's end. Fire pits are a bit iffy, mostly because they still get good use on those cool fall evenings. We'll stick garden equipment in here, too. Start making amends now for this year's poor tomato crop.
September sales are a great time to nab bathing suits, pool equipment, and other aquatic gear. Pick up a couple sets in preparation for next year's family vacation. Give your children some room to grow and purchase swim suits in larger sizes.
You might hear it called a "white sale." Bedding, towels and other household linens are often on sale around the Labor Day holiday, thanks in part to the hordes of college students who require careful outfitting. It's also a great time to get beach towels.
Back-to-school sales start earlier than ever these days. There's so much competition in this tight space that consumers ultimately benefit big time when it comes to price points on technology essentials like laptops and computer accessories. It's also a great time for parents and other non-students to upgrade or to snatch up an early holiday gift.
Stores like REI tend to feature deep discounts on camping and hiking items toward the end of summer. Keep next year's tentative vacation plans in mind when shopping. Depending on your location and climate, you might also find great deals on other outdoorsy products, from bicycles and sunglasses to fishing poles and kayaks.
Are you a good listener? Listeners can be great leaders because they have volumes of field intelligence that no one else has bothered to notice. I know from firsthand experience.
Sometimes, good listeners aren't recognized as excellent or potentially excellent leaders because we're not standing in front of large groups of people making speeches. Instead, we're having one-on-one conversations: learning more about our friends, coworkers, and acquaintances, tapping their domain knowledge, and getting a handle on their passions, frustrations, and dreams. It's this information that we use to identify opportunities, plant seeds, spread ideas, and make things happen.
If you happen to be one of those people who might be listening so much that you don't have a chance to promote yourself, and perhaps you're a bit on the quiet side, you can still be an incredible leader. Consider these ideas.
Tackle the project that no one else wants. The project might seem troublesome, controversial, or inconsequential. A factor in being a great leader is choosing projects carefully. But just because no one else is interested doesn't mean the project (or program or problem) isn't worthy of our attention. If you're trying to establish yourself as a leader and can't get the right opportunities, then taking on a challenge can be a great way to earn recognition.
Solve a problem. For whatever reason, the powers-to-be (no matter how wise and well-informed) have a persistent or particularly annoying problem. They're concerned, reasonably or irrationally, about seeming insensitive, setting too-rigid guidelines, not preserving the peace. The truth is that I get mired in similar problems because I've listened to others' concerns and complaints, which may make it easier to sort through these dilemmas, recommend solutions, and stand firm.
Learn to recognize "amazingness." Some of my best leadership successes have involved learning from incredibly talented people and adapting their fresh, relevant concepts to the needs of my group and community. Listening to lots of people can mean noticing trends and recognizing novel ideas as well as knowing when a group is ready to hear about new approaches.
Assess and leverage strengths. Learn about other people's strengths and preferences by asking questions, listening to responses, and showing genuine interest in varied topics, common and obscure. Rather than assigning people to random tasks, leaders who listen can easily locate and call on the right people for expertise, support, and collaboration. Remember to make an open call to find folks with unadvertised talents and those who are lousy at self-promotion but still want to contribute.
Challenge and encourage, but don't push. Be upfront about commitments you'll need as well as the support you're willing to give. Listen for a negative response and accept "no" as readily as you embrace "yes." Understand that too many "no's" may mean that the timing for a project, program, activity, etc. just isn't right. Knowing when to walk away is a valuable asset.
Listen to people with diverse viewpoints. Meet with stakeholders who can influence the success of your mission and uncover their concerns. Use these insights to modify project details, avoid violating values held by team members, and ensure integrity in communications. Take this time to explain your intentions and how your actions will benefit their long-term goals.
Accept that your leadership style will be different. Feigning ultra-confidence probably isn't going to work well for those who are intent listeners, especially those on the introverted side. You've probably detected inconsistencies in others' calls to action and execution of action plans. You don't want to mislead in any way so you might not act totally fearless. Some will reject your style but others will be attracted.
Admit mistakes. No one wants to repeat the same mistakes. Actually, many people don't want to make mistakes at all, especially ones that might become public. But if you're taking on the projects that no one else wants, then you are likely to encounter new territory and make missteps. Staying upbeat is extremely valuable in rallying support. But acknowledging imperfection makes you more approachable by those with great ideas and shows that you're not obsessed with your plan but rather with fulfilling a mission.
Leadership opportunities exist at the convergence of troublesome projects, hand-wringing problems, people who have the knowledge and desire to help, and amazingness. If you are truly listening, you'll see these opportunities and seize them.
This year was particularly trying for my family and I'm sure a good many families of Wise Bread readers. This summer was particularly relentless for this homeowner. I don't even think we should use that term. I own a mortgage and it really owns me, more or less. But when the pipes cracked and the septic tank simmered at the brim under a rotted lid threatening the peace and tranquility of homeownership this summer, I started reassessing just how lack of employment, the high cost of student loans, living, offspring, the car that decided it needed a thousand dollars dumped into it, and homeowning were going to factor into my attempts at frugality.
I felt like a fraud writing for Wise Bread. Yeah. Who am I to dispense any advice when I can't even use my own toilet? So I took a little break in an effort to not feel like a fraud and reassess if there was some turn I could have made in the last year to better the situation. The process of sitting in the comfy chair in the living room staring into the abyss of the cool sage green wall with a legal pad and pen actually did help.
There were a few things I could have planned for better and a few things I could have anticipated, but in the end I don't think my choices yielded more than a couple of hundred dollars extra with better planning. But I didn't get poor me, whiny about it. My mortgage is still getting paid. My kids still have food to eat, and we are doing a hell of a lot better than many neighbors. I am grateful.
A big difference in this summer is there was no vacation. OK — technically we went away for a three-day weekend, but that was it. This gave me time to really see my community for what it is. These are predictions and solutions for surviving the national recession and individual malaise that comes with it.
Nationalism is not productive and there's nothing joyful about watching Rome burn when you're a Roman. By this I mean we'll fare much better if we put more energy into the health and well-being of our local communities — with an eye and heart to how the global community is doing — than if we were continue perpetuating the mantra that America must be No. 1. I think we get bogged down in thinking we should all be millionaires by now. We get that look in our eye best expressed by Prince's song "Pop Life": "they put your million dollar check in someone else's box..."
Is a fifth of our nation underwater? Was our capital destroyed by an earthquake? My kids and I just viewed the 1992 film Baraka the other day and as the segment of dire poverty begins midway through the film, it was good to remember what real poverty looks like. We are not living on the streets and we aren't picking through a landfill for food scraps. I'm not working as a prostitute and they aren't begging in the streets. We have health insurance from my husband/their father's job.
If we can keep in mind that the whole reason we live nuclear is that suburban developers sold us on the idea to sell houses, we'd be better off. Cultures around the globe know that you need to be tied to your family and society. I need my neighbors and community, and my neighbors and community need me. The smartest thing I've done in the last decade was moving three miles from my mothers.
Kids need access to grandparents — biological , adopted, or faux. So many struggling families I know are too far away from their extended families. Women spend nearly as much money on daycare as what they make. Moving back to an extended family and community model of living could change that. Co-op day care and family watching children both have great merits, and it's not a one-way street. My mothers watch the kids every Saturday and then I'm available to them for errands they cannot do.
And it' s more than childcare. We can share vehicles. (Between the two households, there's a car with great mileage, a car for snowy days, and a truck for hauling.) We share groceries. We share baking and cooking. (My mom and I tend to bake or cook trays of things and we always give the other a tray of something we've made.)
I consider my friends in this family equation too. The only way we had any vacation this summer is when one friend got a hold of free passes to the aquarium, and another let us stay in her house while she was gone, and still another bought us breakfast and shuttled us to and from the aquarium so we didn't have to pay for parking. We have let people stay with us for short bits and done as much reciprocity as we can think of.
I am over the myth. I need my mommy and my friends. They need me, too.
It means more than just growing organic crops so you don't kill the soil. It means research. Everything I do now makes me think of this word. How many extra-curricular activities can my kids reasonably sustain? How much square footage of a house can be heated economically so I don't run out of cash? How sustainable are my habits and hobbies? Where I live in the mountains, it's common for neighbors to announce they are going 'off the mountain' and take orders for things that anyone needed from the civilization of boxed stores 90 minutes away. It's always gratifying not to be able to think of anything.
What if we all got off our collective butts and did what we said we wanted to do instead of what we think we must? What if we didn't care about that look our parents give us that says "Why didn't you become an accountant or a corporate lawyer?" That would look amazing. I bet it would feel amazing, too. What if we stopped blaming others for our predicaments? What if we stopped waiting for someone else to fix it?
Welcome to Wise Bread's Best Money Tips roundup. Today, we give you a way to get more coupons, ten tips for shopping safely online, and how to fix a mean beans and cornbread!
How and Why to Buy Coupons on Ebay — Don’t buy 12 newspapers just to get the coupons! Stick with these tips for purchasing them online, and save a fortune. Mummy Deals
10 Essential Tips for Online Shopping Safety — Are you up on encryption and approval certificates? If not, you could be exposing yourself to cyber criminals! Sweating the Big Stuff
Beyond Beans and Cornbread — A yummy, filling, and affordable dish, this method of cooking beans and the accompanying cornbread recipe is delish! Wholesome Mommy
How Would Panhandlers Use Free Credit Cards — This article is fascinating! If given a prepaid credit card, what kinds of purchases would they make — and would they return the card if asked? Toronto Star via Get Rich Slowly
Fabulous Freebies 2010 — Who say’s there’s not such thing as a free lunch (or tech support, cash, and ice cream)? Get a list of amazing freebies here! Kiplinger
6 Signs that Investment is in Bubble Mode — If you’re wondering where we are at in regards to the economy and the attitude of people in general, this piece has some great insight. Moolanomy
When You Can Negotiate an Apartment Lease and When to Walk Away — Know what the current market price is for your lease, and you’ll be in a better position to haggle. This and other tips readily available for your reading pleasure! Money Ning
How To Get Girls if You Live at Home with Mom and Dad — This article is all about perspective. Free laundry and home cooked meals can be seen as a glass-half-full scenario. Financial Samurai
10 Ways to Get Fit for Little or No Money — There are a few new ideas on this list of tips for working out sans gym membership. Len Penzo
Preparing for a Baby: What Do You Really Need? From deluxe swings to baby bottle brushes, there are some things that are necessary — and others, not so much. Find out one blogger’s opinion in this must read list. Cool to Be Frugal
The summer is coming to an end and it's back-to-school time. If you have ever been a student, you'll know that student life is not easy or cheap. With rising tuition costs, high unemployment, and busy schedules, finding ways to manage your time and budget seems impossible. No need to panic! Last week, we showcased back-to-school savings tips. This week, we have 10 iPhone applications that can help you manage your student life.
Ever had a lecture where the monotonous professor puts you to sleep? Rate My Professor was one of my favorite sites while at university. Now it's an iPhone application. The app allows you to view other students' comment and rating of professors and write your own review about them. The great thing with the app is that you can tweet it or post it on your Facebook — just be careful what you say!
Taking notes in class is not always easy, but Evernote can help. This app takes text and voice notes, which can be synchronized to an online account so that it's accessible everywhere. Although typing on your iPhone all day long may not be the most convenient way to take notes, the voice recording can be very versatile.
Classes, assignments, exams, papers to write... Students have enough to remember. Worrying about when bills are due and managing accounts does not have to be hard. With Pageonce Personal Finance, you can manage all your online accounts anywhere, anytime.
Keeping track of assignments can get complicated; myHomework can help you keep your head above water. You can keep track of assignments in different classes and when they are due. You can see all your homework laid out in a calendar view and send homework reminders to friends. It's a free application and with very practical uses for the busy student.
Blackboard seems to be a very poplar platform used by many schools to communicate with their students. Assignments and grades are often posted on Blackboard, and professors point students to Blackboard for lecture notes and assignments. If your school utilizes Blackboard, then you can have instant access to all the information posted by your school, professors, and classmates.
iStudiez Pro is not a free application ($2.99), but it can be very useful. It helps you keep track of your classes and assignments. It can color-code each assignment with the corresponding class and notify you of their due dates. It may just be the best $2.99 you spend in college.
By the time I graduated I probably went through four dictionaries. (They kept disappearing, somehow.) The New Oxford American Dictionary has over 250,000 entries stored on your phone, which means no internet connection needed. It also includes over 60,000 audio pronunciations.
Textbooks are expensive — really expensive. Finding used textbooks is not always easy and even then it may be an outdated edition. Chegg is a textbook rental company with millions of books you can choose from. No need to stand in line for hours at the campus bookstore: All you need is the free Chegg app, the book's title, author or ISBN, or you can simply scan the bar code. The app also has a reminder to return the book so you won't incur any late fees.
Formulus Free can come in handy whether you love or hate math. The free app helps you find formulas, so no more searching pages of your textbook to find the right one —: they're all at your fingertips.
Free Books costs $1.99, but all the books are free. Although you may not find the newest books in the application, it contains over 23,000 books, including most classic books you'll probably study in school. You are probably thinking, "Who can read the whole book on their iPhone?" Well, fear not. This application lets you email the book to yourself. You can download and read it on your computer or notebook.
Going back to school can be an exciting and stressful time; hopefully, some of these applications can help you get through another year of school. If you are looking for more great phone applications, check out this list of 75 phone applications that will save you money
Do you have any favorite applications you'd like to share?
Do you ever come to the end of the money before you run out of month? It's easy to conclude that the problem is that you don't earn enough money (or that you spend too much). In fact, the real problem is almost always that your finances are out of control.
I don't want this post to turn into a comedy routine with a list of items like, "Your finances might be out of control if you ever use a credit card to pay off another credit card." Frankly, if your finances are out of control, you already know it (although you may be in denial). Still, here's a short check list:
Taking control of your finances is straightforward. I've written articles about most of the steps, but it occurred to me that I've never really put the whole thing together. So, for those of you who have problems that look like a lack of money (or excess spending), here's how take charge of your finances.
I've carefully buried a certain word in this sentence, because I'm afraid that the word budget will turn off a lot of readers, and I'd like to ease them past it. There are two reasons that people hesitate to make or follow a budget.
The first is that they come to budgets with a sense of guilt. That's crazy. If you'd rather spend money in some other way than what your budget says, don't feel guilty about it: Just change your budget. Your budget is not a constraint, it's a tool for helping you get what you most want.
With that in mind, here are four posts on budgeting:
If Budgeting Isn't Fun, You're Doing It Wrong is all about creating a budget that lets you buy what you want. It's about figuring out what you really want and making sure you're budgeting for those items. Like I said: If you want other stuff more than the stuff that's in your budget, change your budget.
Refactor Your Budget Categories is a short piece on how to organize the categories in your budget. If you have a budget that's working for you, you can skip it. But if you're creating a budget from scratch (or if you're not satisfied with the budget you've been using), it has some useful ideas.
A Better Way to Create a Budget advises against the usual budgeting advice of filling in each budget item with what you spent last month (or last year). Instead, I suggest, start each line item at zero, then figure out what you really need to spend to satisfy your wants and needs in that category.
Your Budget: Envelopes or a Plan? looks at the two main styles of budgeting. I used to follow the envelope model, where I set aside money from each paycheck to cover each expense category, but some years back I quit thinking of my budget as a set of envelopes and started thinking of it as a plan.
The second common reason that people resist budgeting is that they feel like they're "not the sort of person" who needs to pays attention to every penny. That's not quite as crazy as feeling guilty when they don't follow a budget. It is possible to manage your finances intuitively, and lots of people do. But it's not a sign of moral superiority.
The way to get your finances under control is to create a budget and then track your spending so that you know whether you're following it or not. Neither step has nothing to do with what kind of person you are.
I wrote one post on tracking your spending:
Track Your Spending. Or not. It's on whether the time and effort of tracking is worth the payoff. (And, more important, what the payoff is.)
As I say, it is possible to manage your finances without a budget and without tracking to see if you're keeping to your budget. In fact, most people do just that. If your wants and needs are modest relative to your income, that can work fine. But the less daylight there is between what you earn and what you spend, the more you need to be in control of your finances.
Who's in charge of your finances? You? Or no one in particular?
My boss has asked me in my last two performance appraisals what I enjoy about my job and each time, I say that having this job will make me 10 times wealthier in my personal life. I don't mean that I'm making a ridiculous salary. (Maybe someday...) I mean that looking at borrowers all day lets you see all kinds of slices of life — and hopefully learn from them.
In the short time I've been at my job, I've seen all kinds of borrower financial statements: conservative borrowers and leveraged borrowers; those who got rich by investing in real estate and those who inherited money. Those who work for their parents' company and parents who work for their children. Here are some of the best lessons I've learned from working at a bank.
Don't roll your eyes at me; I know everyone is saying that in this economy. But I've seen people who have stuck their necks out even in this economy, thinking they could afford that jumbo home because their income would certainly increase in the future. Or their kids need a place in the country to enjoy while they're still young. Or they can sell when the market picks back up, make a profit, and get another nice place. It's never a good idea!
Those who are surviving and thriving in the long term are those who stick to the old rule of a mortgage that is 2.5 times their income or less, and 15-20% down. And that second home in Arizona you bought because it was a short sale? If you can afford to hold onto it, then fine. If not, well, as we say in my department: Hope is not a strategy.
No, I don't mean toys. Although they're fun, and awesome, and make you look cool, I can tell you when someone lists $450K of furniture and autos on their financial statement, I see a big fat Zero. That is, depreciating assets don't mean anything when it comes to your net worth.
Do me a favor: If you win the next $64 million lotto jackpot, at least keep a measly 1% or so of after-tax money in CDs or treasuries. I once saw a guy who made nearly a hundred million dollars in one year, who had about $24K in cash. True, he could have been lying on his statement, but really? How nice would it have been if he saved 10%, especially because he lost nearly that same amount the next year?
This one is a little heartbreaking, but I see it all the time. Tom has had a small, successful restaurant for 25 years. He makes, say, $100K per year. Not a bad deal. But Tom sees others making oodles of money in real estate investing, so he puts two and two together and decides to build an enormous, gourmet restaurant in the next town over. Then he can double his business and own his own piece of investment real estate! He proceeds to build his $5 million restaurant, using all of the $300K he's saved for retirement, pledging his house as collateral on a bank loan and borrowing $1 million from friends and family.
You can guess what happens next. Unless Tom's restaurant does phenomenally well (which restaurants never do), he's DOA. He has lost everything, including his retirement, his house and probably his friends and family. (Side moral: Don't invest in deals like this, people!)
Calculated risks are OK. Investing your retirement money in a well thought-out venture when you're 30 is OK. Pledging your house as collateral on a loan is OK. All of these things separately is OK, but not all at once. You have nowhere to turn, and I see it all the time. I've even seen parents pledge their homes as collateral on an adult child's loan. It goes bad, and grandma and grandpa are homeless in retirement.
So there you have it: the top things I've learned from working at a bank thus far. Although I'm amazed every day at the poor financial choices some people make, let me be clear: I see at least as many (and probably many more) who make great decisions and grow their net worth year after year. With a host of examples, now I know how to avoid the pitfalls, too.
Seen anything similar in your own experience? Share your story!
Money Magazine had an interesting article in the September 2010 issue titled "Do You Have What It Takes To Be Wealthy?" The article comprised of 15 questions aimed to tell you if, indeed, you have a good chance to be rich. I aced it (if you consider having a solid chance of being rich a good thing, that is), but what is the definition of being wealthy anyway? Is it just a number we call net worth? Or is it something else all together?
I was given a tour the other day of a $6 million dollar home. Apparently, the owner bought the piece of land for $4 million and spent $10 million building the custom house on the site. The property was gorgeous (duh!), but the owner couldn't have lived in it for more than three years and he lost $10 million in the process after considering not getting his asking price, agent fees, etc. when it's all said and done.
When you have that kind of money to lose, are you considered rich? (By the way, for those concerned, the owner moved to an even more expensive neighborhood, so this is not one of those overextended home borrower stories.) Miranda started an interesting discussion asking whether you are rich. She claims that your location and personal situation matters a great deal when it comes to the financial portion of the definition of being rich, but I believe it's more than that. I'd argue that being wealthy is much more than having, or earning a specific dollar amount.
This is much more than having a ton of money. Not worrying about money is more about the ratio of your spending and expectations versus your assets. Some people don't have enough with $12 million, but others can retire comfortably with much, much less. However much money you have, you cannot be wealthy when the worry of money is always on the forefront of your mind.
You might have money, but you aren't rich if you don't have anyone to spend it with. Being rich is also having someone to share your joy and sorrows, and it's having someone to have spend time with too. When you need a shoulder to cry on, can you actually buy one?
You can have all the money in the world, but it's very difficult to enjoy life if you don't have a sense of purpose. We talk about finding a passion all the time, but to be quite honest with you, most people never listen. Some are simply too afraid to change their depressing jobs, they are too lazy to repair broken relationships, and they are too proud to admit their mistakes so they can start over. First of all, I don't think these people will be able to maximize their earnings power this way. Even if they could, how does having a bunch of money with a miserable life make them wealthy?
Being rich requires money. There is no doubt about it. But it's much more than that — so much more.
Wise Bread
