Financial Headline News for Friday 3/30

 Phil's Financial Tip of the Day:
Even singer Kenny Loggins displays good common sense financial discipline to this day that he learned when he was first starting out in the music industry living on a shoestring budget of $65 a month in Los Angeles.

Kenny Loggins: 'I'm alright' being frugal

By Larry Getlen • Bankrate.com

Kenny Loggins spent the 1980s as the go-to guy for memorable movie songs, fueled largely, he says, by luck. The producers of "Top Gun," which came out in a special 25th anniversary Blu-ray edition in late August, only asked Loggins to sing the film's signature song, "Danger Zone," when Bryan Adams and Toto fell through. And he only wrote and recorded "Footloose" as a favor to that film's screenwriter because, he says, "'Footloose' is not 'Gone with the Wind.'" Nowadays, Loggins tours solo and also plays with his new band, Blue Sky Riders, which will release their music without a record company because, he says, "(the record companies) just want all the money."

Read more: Q&A Kenny Loggins | Bankrate.com http://www.bankrate.com/finance/celebrity-money/qa-kenny-loggins-1.aspx#ixzz1qe5qtLoK

Quote of the Day from Dave Ramsey.com:
Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young. — Henry Ford

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Thursday 3/29

Phil's Financial Tip of the Day:

Better college loan options
An estimated two-thirds of graduating college students are burdened with student loans, $25,000 on average.

NEW YORK (WABC) -- Millions of students graduating from college this year will have a shadow hanging over their heads. An estimated two-thirds are burdened with student loans, $25,000 on average. And graduate school can push debt much higher.

Student loans are different from other types of loans. They can't be erased if you declare bankruptcy. And lenders can take money from your wages, tax refunds, and even Social Security if you don't pay up.

Consumer Reports advises taking out Federal loans such as Perkins or Stafford with fixed rates, rather than private loans from banks with variable rates. And with Federal loans, you get more flexible repayment options. Generally, with a Federal loan you don't have to start repaying until six months after you graduate or if you drop below half-time at school. At that time you may qualify for any number of payment plans.

To read the rest of the story and watch the video from Eyewitness News WABC-TV New York:
http://abclocal.go.com/wabc/story?section=news/consumer&id=8597659

Quote of the Day from Dave Ramsey.com:
The quest for excellence is a mark of maturity. The quest for power is childish. — Max Lucado

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Wednesday 3/28

Phil's Financial Tip of the Day:

How Much Do I Need For Emergencies?

Dave Ramsey always recommends 3-6 months to have in an emergency fund in the event of a loss of job, medical emergency, short-term disability, etc.while Suze Orman preaches to have 8 months stashed away for a rainy day.

Use this calculator from Fox Business to help determine how much you need to set aside monthly or as a lump sum to create an emergency fund:
http://www.foxbusiness.com/personal-finance/tools/how-much-do-i-need-for-emergencies.html

Quote of the Day from Dave Ramsey.com:
Indecision is often worse than the wrong action. — George Burnham

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Tuesday 3/27

Phil's Financial Tip of the Day:

A Dozen Ways to Save a Dollar
Tips from self-made millionaire Clark Howard's book Living Large in Lean Times.From Reader's Digest | August 2011

Clark Howard is a down-to-earth, self-made millionaire with a syndicated radio show and a popular website (clarkhoward.com). He’s the one you see on HLN in a simple studio, standing with a boom microphone as he takes calls from viewers and tells them how to save money and make money. Now, in Howard’s Living Large in Lean Times (Avery, $18), he puts his advice between two covers. Our favorite tips:

http://www.rd.com/money/a-dozen-ways-to-save-a-dollar/

Quote of the Day from Dave Ramsey.com:
Know where to find the information and how to use it. That's the secret of success. — Albert Einstein

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Monday 3/26

Phil's Financial Tip of the Day:

Borrowing from a 401(k) may cost you more than you think

Money Watch, a personal finance column that runs every Saturday, features a financial planner from the National Association of Personal Financial Advisorsanswering reader questions about saving, protecting and growing your money. To submit a question, e-mail USA TODAY personal finance reporter Christine Dugas at: cdugas@usatoday.com.

As Dave Ramsey always says, it is like taking a loan out at 40% when you borrow from your 401(k). The only time you should do this is to avoid bankruptcy.

To read the article from USA Today:
http://www.usatoday.com/money/perfi/columnist/moneywatch/story/2012-03-24/starting-small-business-401k-loan/53741186/1

Quote of the Day from Dave Ramsey.com:
Success is not final, failure is not fatal: it is the courage to continue that counts. — Winston Churchill

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Friday 3/23

Phil's Financial Tip of the Day:

As Card Firms Try Social Media, Critics Keep Watch
From The Wall Street Journal

Credit-card lenders are mining their customers' "likes" on Facebook and scouring tweets on Twitter as they look for new ways to entice existing customers to use their cards more frequently and raise their appeal among younger consumers, avid users of social media.

But some experts worry these platforms may give lenders another door around rules that took effect two years ago aimed at protecting young consumers.

Do you think guidelines should be set for how credit-card companies interact with customers on Facebook, Twitter and other social networks? If so, what should they say?

To read the rest of the article from The Wall Street Journal
http://online.wsj.com/article/SB10001424052702304724404577297860607013698.html?mod=e2fb


Quote of the Day from Dave Ramsey.com:
Never stop. One stops as soon as something is about to happen. — Peter Brock

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Thursday 3/22

Phil's Financial Tip of the Day:

Five Ways to Manage Data Use on Your New iPad
Users of the new iPad are learning that its new high-speed wireless connection can be blazing fast, but painfully expensive. Andrew Dowell joins digits with five ways to consumers can cut those costs

Users of the new iPad are learning that its new high-speed wireless connection can be blazing fast, but painfully expensive. That's the downside of making it easier to watch TV on the go.

Cutting through the tangle of their plans, AT&T Inc. T -0.41% and Verizon Wireless generally will bill you about $10 for every gigabyte of data you use.

Verizon estimates that's enough to watch about an hour and a half of standard-definition video on your new iPad— or about the cost of sitting down at a movie.

If you want to take advantage of your new iPad's super-sharp screen and stream high-definition video, your bill will get even steeper: Be prepared to consume two gigabytes an hour, Verizon says.

There are ways to use your iPad to watch movies without shelling out an arm and a leg. The rub is most involve limiting the use of the LTE wireless broadband connection that is one of the main selling points of the new device.

Here's what to do:
• Use Wi-Fi whenever possible-at home, at work, in hotels and in coffee shops. Wi-Fi, which runs through landline Internet networks rather than the mobile network, doesn't count against your Verizon or AT&T data cap.

To read the rest of the article from The Wall Street Journal:
http://online.wsj.com/article/SB10001424052702303812904577294022684911852.html?mod=ITP_marketplace_0

Quote of the Day from Dave Ramsey.com:
God feeds the bird, but he doesn't throw the worm in the nest. — Andy Andrews

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Wednesday 3/21

Phil's Financial Tip of the Day:

Resources for Veterans re-entering the workforce
What resources are available to help them prepare for, seek and secure employment?

Men and women who have served our country possess qualities and skills that are of great value to employers, including a strong work ethic, leadership and problem solving. Yet many veterans struggle with finding employment in the civilian world. According towhitehouse.gov, as of October 2011, more than 850,000 veterans were unemployed. In addition, the jobless rate for post-9/11 veterans was 12.1 percent — well above the national average.

There is some encouraging news: A recent CareerBuilder survey found that 20 percent of employers are actively recruiting U.S. veterans to work for their organizations, and 14 percent are actively recruiting members of the National Guard. Yet, with more than 1 million service members projected to leave the military between 2011 and 2016, where can soon-to-be and current military veterans turn?

Here are four such resources, all with the goal of helping our nation’s heroes succeed in the civilian workforce:

1. EmployVets.com: EmployVets.com matches employers with veterans looking to return to the workforce. The website, powered by CareerBuilder, provides a variety of resources for veterans, including a job-search engine, a tool for discovering how one’s military skills translate to the civilian world, and career advice.
2. Veteran Entrepreneurial Transfer Inc. (VeTransfer.org): According to the website, VeTransfer.org’s mission “is to teach veterans how to become entrepreneurs and to assist them in accelerating their veteran-owned innovations.” The organization, which receives backing from the Federal Department of Veterans Affairs, turns veterans into entrepreneurs by helping them start their own businesses. Veterans are connected with the financing needed to get their venture off the ground and business volunteers and mentors who provide advice, guidance and support.
3. American Freedom Foundation Inc.: The American Freedom Foundation provides grants to organizations that support military veterans, including those related to employment. The Foundation has a special focus on aiding wounded or disabled veterans and their families, as well as the children of those killed in action. One of the most prominent ways the American Freedom Foundation raises money is through itsAmerican Freedom Festivals.
4. America Wants You: The recently launched site, AWY, brings together the private sector and corporate America to find job opportunities for men and women who have served in the U.S. military. CareerBuilder powers the job-search engine, which is free for both veterans and companies. Thousands of jobs are available in a variety of fields, including sales, customer service and information technology management, at companies across the U.S.

To read the entire article from PrimeCB.com a division of CareerBuilder:
http://www.primecb.com/4-resources-for-veterans-entering-the-civilian-workforce/

Best of Luck Veterans! Thank you for your service to our country!

Quote of the Day from Dave Ramsey.com:
A man never discloses his own character so clearly as when he describes another. — Jen Paul Richter

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Tuesday 3/20

Phil's Financial Tip of the Day:

5 Everyday Things That Should Last a Lifetime
From a good-quality bag to a cast-iron pan, these durable buys are worth the splurge.

Here is one for the guys:

 

3. Hand tools

Good quality hand tools should last not just one lifetime, but for a couple of generations. Look for forged rather than cast metal, and plastic, fiberglass or metal handles rather than wood.

To read the rest of the article and see the other four from Save a Fortune (Reader's Digest Association):

http://www.rd.com/slideshows/5-everyday-things-that-should-last-a-lifetime/#slideshow=slide3

Quote of the Day from Dave Ramsey.com:
A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well. — Jeff Bezos

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Monday 3/19

Phil's Financial Tip of the Day:

Self made millionaires-and billionaires

Most millionaires are self-made millionaires, but becoming one is something that still seems out of reach for most people.

In many cases, we dismiss the idea of building a million-dollar business because, well, you need a lot of money for that, right? You've got to spend money to make money, don't you?

As it turns out, you don't really have to spend that much.

To read the rest of the article by James Clear US News:
http://money.usnews.com/money/blogs/my-money/2012/03/15/5-people-who-turned-1000-into-1-million

Another example of this is Sara Blakely. She appeared on the Dave Ramsey show last week to discuss how she turned a $5,000 investment into a billion dollar business:

Sara Blakely, inventor of Spanx shapewear, and the youngest female ever on the Forbes 400 list. She is also the world's youngest self-made female billionaire. She talks about how she got to where she is, from rejection to victory.
Hear the call!

Good Luck to all of you aspiring entrepreneurs out there. I hope these stories are an inspiration!

Quote of the Day from Dave Ramsey.com:
The world cares very little about what a man or woman knows; it is what a man or woman is able to do that counts. — Booker T. Washington

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Thursday 3/15

Phil's Financial Tip of the Day:

LinkedIn is a Hacker's Dream Tool
Facebook is not the only social media site that your identity could be hacked into. Please read the article below on how the professional network site LinkedIn could compromise your privacy.

If you use LinkedIn, you've probably told the site where you work, what you do and who you work with. That's a gold mine for hackers, who are increasingly savvy in using that kind of public -- but personal -- information for pinpoint attacks.

It's called "spear phishing," and it paid off last year in two especially high-profile security breaches: a Gmail attack that ensnared several top U.S. government officials and a separate attack on RSA, whose SecurID authentication tokens are used by millions.

In both cases, the attackers successfully tricked their targets into opening e-mail attachments that appeared to come from trusted sources or colleagues.

To read the rest of the article by Stacy Cowley | CNNMoney.com
http://finance.yahoo.com/news/linkedin-is-a-hacker-s-dream-tool.html

Quote of the Day from Dave Ramsey.com:
We are all faced with a series of great opportunities brilliantly disguised as impossible situations. – Charles R. Swindoll

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Wednesday 3/14

Phil's Financial Tip of the Day:

Six Tricks to Spend Less, Save More for Retirement
Robert Powell has been a journalist covering personal finance issues for more than 20 years, writing and editing for publications such as The Wall Street Journal, the Financial Times, and Mutual Fund Market News.

Question all your spending
Other tricks have to do with spending. “I think that there is a question of how we save smarter, but I think the real challenge is: ‘How do we spend less?’” said Ariely. “Saving is what we have after we finish spending, so if we can control spending we would be much better off.”

He recommends, for instance, looking at the sort of things we have set up for automatic payments.

“The things that we pay explicitly for, every time we pay $3 for a cup of coffee, we notice,” Ariely said. “The things that are harder for us to notice are things that are automatically deducted from our checking accounts or from our credit cards. So I would take extra care to looking at those things and asking ourselves whether they actually bring us the amount of happiness that justifies their cost, things like cable TV for example.”

Ariely also suggests that you commit to showing a friend once a month your credit card statement and “justify everything you spent money on.”

Phil: When you first start a budget keep a log of what you spend daily and write down the reason to justify the expense. This will give you an accountability of why you are spending. 

To read the other 5 tricks by By Robert Powell | MarketWatch:
http://finance.yahoo.com/news/six-tricks-spend-less-save-202032160.html

Quote of the Day from Dave Ramsey.com:
Here is the test to find whether your mission on earth is finished: If you're alive, it isn't. – Richard Bach

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Tuesday 3/13

Phil's Financial Tip of the Day:

High School students about to go into College student loan debt please listen to this

After listening to 5 callers in one hour with student loan debt of over $100,000 each on the Dave Ramsey show today, I was in stunned disbelief how these people did not do a cost analysis of the value of their degrees to the cost of the degree.

One lady paid over $100,000 in student loan debt to get a masters degree in Theology at Columbia to land a $45,000 job at a Presbyterian Church as a minister. Another accrued over $100,000 in student loan debt to get a degree in psychology and is now a stay at home mom.

In my opinion this will be the next bubble that will burst in this economy like real estate did a few years ago as student loan debt is not forgivable. You can't walk out from under the debt of student loans like you could walk away from an underwater house mortgage.

All of you 16, 17, and 18 year old high school students about to go to college please do a cost analysis of the value of your degree to the value of your student loan debt. Remember to also consider Community colleges to get the electives out of the way the first two years at a more affordable price of your total education.

All of you 16, 17, and 18 year old students please listen to the archive broadcast of the Dave Ramsey show from today Tuesday March 13th, 2012 to hear these calls for yourself to avoid their mistakes. You also want to hear Dave's classic rant on this total fiscal insanity!

http://www.daveramsey.com/radio/home/#archives-tab

Quote of the Day from Dave Ramsey.com:
Proverbs 10:8 — The wise in heart accept commands, but a chattering fool comes to ruin.

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Monday 3/12

Phil's Financial Tip of the Day:

Avoid These 6 Common Tax Return Mistakes

Jim Wang writes about personal finance at Bargaineering.com. When he's not tackling money issues, he's usually looking forward to his next vacation and writing about it at Wanderlust Journey.

Here is a list of six easily avoidable mistakes to keep in mind when you're filing your return.

1. Not claiming the correct status. Your filing status is based on your status as of December 31of that filing year. So for tax year 2011, your status is based on your status as of Dec.31, 2011, and not today. If you got married in January, both you and your spouse will file as single filers. If you got married in December, you can't opt to file as a single filer (you can pick married filing separately or married filing jointly.) If you had a baby in February, unfortunately your little one will not be a dependent on the taxes you file in April. Picking the correct filing status is crucial because so many credits and deductions, not to mention the tax brackets, change based on your status. This can have enormous implications on your return.

To read the rest of the article By Jim Wang | U.S.News & World Report LP
http://finance.yahoo.com/news/avoid-6-common-tax-return-163148216.html

Quote of the Day from Dave Ramsey.com:
If you're bored with life—you don't get up every morning with a burning desire to do things—you don't have enough goals. — Lou Holtz

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Friday 3/9

Phil's Financial Tip of the Day:

Save Money Every Day: 10 Painless Tricks
Here are ten simple ways from Allan Roth | CBS MoneyWatch to be materialistic while still improving your finances.

1. Say goodbye and hello to cable

I've had the Comcast triple play (cable, internet, and telephone) for many years. I bought it at the $100 teaser rate that lasted for a year. At the end of that year I began what has become an annual tradition, which is calling the cable company and saying I'm switching if they don't renew my teaser rate. Just as predictable as the seasons, they will tell me how much they value me as a customer and extend it. Occasionally, they will only value me enough to extend it for six months, so I'll need to make two calls.

The same strategy can work on other services - from cell phones to companies that fertilize your lawn. These service providers know it costs much more to get a new customer, so they are willing to lower rates to keep you.

Payoff: 20 minutes a year to save $360 annually.

Phil: I did the exact same thing with Verizon Fios and saved $15 a month on cable service, got a 200 hour DVR box to replace my 40 hour box, and also a $300 Visa gift card from Verizon. So I saved even more at about $600 annually.

2. Pick the right credit card

I hate credit cards. Though I have them, I use them as charge cards, never paying any interest. I search for the cards with the highest rewards. I once picked credit cards for the airline frequent flyer points, but turned a couple years ago to cash back cards. I knew I had made the right decision when my free flight to New York last month cost me over $100 in fees. Airline rewards aren't worth much anymore.

My main card is the Fidelity American Express card, which gives me 2 percent back for every purchase. You can find the card right for you with this Bankrate.com search engine.

A word of caution, however, is that just having a credit card makes you spend more. With one click on any web site, I can put in my credit card information and buy items I'm not sure I would buy if it weren't so easy. Thus, the easier it is to buy, the more you will spend.

Payoff: $720 annually of cash back with no effort.

Phil: I couldn't agree more. I have never payed an interest rate balance on my credit card since I had it going back to 1985. Also I never pay monthly bank fees-I either keep enough in my account or just go to a local bank and transfer my savings there rather than giving away my money.

To read the other 8 common sense savings tips from Mr. Roth:
http://finance.yahoo.com/news/save-money-every-day--10-painless-tricks.html

Quote of the Day from Dave Ramsey.com:
People become really quite remarkable when they start thinking that they can do things. When they believe in themselves they have the first secret of success. — Norman Vincent Peale

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Thursday 3/8

Phil's Financial Tip of the Day:

Long-term Care: Why Age 60?
It may be cheaper to buy LTC at age 50. But it is better?

On Dave Ramsey.com there is a great analysis of buying LTC at age 50 as opposed to age 60:

The average LTC premium for a healthy 50-year-old man is $1,340 per year. If the policy remains in effect until this person is 95, he will spend $60,300 in LTC premiums. For a healthy 60-year-old, the average premium is $2,170; it will cost him $75,950 to keep the policy until he is 95. So buying LTC at age 50 is $15,650 cheaper than buying it at age 60.

To read the rest of the article:
http://www.daveramsey.com/article/long-term-care-why-age-60/lifeandmoney_insurance/?ectid=bitlyified030620121101

Just like Term Life Insurance-the earlier you buy it the more you will save.

Quote of the Day from Dave Ramsey.com:
Emergencies have always been necessary to progress. It was darkness which produced the lamp. It was fog that produced the compass. It was hunger that drove us to exploration. And it took a depression to teach us the real value of a job. — Victor Hugo

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Wednesday 3/7

Phil's Financial Tip of the Day:

7 tips to savings bliss

We’re falling behind on savings and need to catch up; here’s how

Jennifer's Waters column in MarketWatch.com Consumer Confidential lists 7 tips to save money.

Here are some of the highlights:

• Don’t purchase expensive items on impulse. That certainly prevents buyer’s remorse but also, by imposing a 24-hour wait period, you save yourself from deeper financial woes.
• Consider this little trick for breaking yourself of reckless spending on indulgences: For every pricey cup of coffee, slice of cake, glass of wine or pack of cigarettes you buy, put an amount matching that cost into a cookie jar or under your mattress. If you can’t afford to save the matching amount, maybe you can’t afford that indulgence. 
• Save your loose change. Really, it’s a good idea. Fifty cents a day will net you $182.50 at the end of the year, and $1 a day gives you $365 you would not have otherwise.

To further stretch out that last point, in 10 years that $1 a day would be $3,650 and 20 years $7,300. That's not too shabby considering interest isn't even factored in!

To read the rest of the article:

http://www.marketwatch.com/story/7-tips-to-savings-bliss-2012-02-21?pagenumber=1

Quote of the Day from Dave Ramsey.com:
The best years of your life are the ones in which you decide your problems are your own. You don't blame them on your mother, the ecology, or the President. You realize that you control your own destiny. — Albert Ellis

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Tuesday 3/6

Phil's Financial Tip of the Day:

Save or Splurge: 7 Items That are Worth the Extra Money
On Dave Ramsey.com today the following article made me think that car maintenance should also be on this list.

From Dave Ramsey.com

One of the “must-have” aspects of Dave’s plan is health insurance. Why? You spend a little money now to avoid paying a lot of money later.

In general, that’s probably a good idea for your entire financial plan. When buying stuff that you really need, it’s okay to spend a little extra to avoid financial, or even physical, pain in the long run.

Here are some items we think are worth spending a little extra money on. Consider some of this when you make your next trip to the store:

Toilet Paper: Living like no one else shouldn’t involve a rash and/or a new walking style.

Trash Bags: Go with the paper-thin plastic bags if you really want to. But realize that as soon as the plastic snaps, you’re the one on your hands and knees picking up Junior’s used diapers, those mashed potatoes from two days ago and that half-eaten can of pinto beans.

Running Shoes: Your slowly deteriorating Achilles tendon doesn’t care about your get-out-of-debt plan, but it would appreciate it if you would stop running half marathons in a pair of 10-year-old Converse.

Food: There’s a difference between inexpensive food and cheap food. Cheap food (i.e. fast food) will save you a buck of two, but you’ll more than pay for it 20 years from now when a heart surgeon is scraping your arteries clean. Get tips for cutting the fat from your food budget.

Bed Sheets: Turns out, sleeping on sandpaper isn’t comfortable unless you are a two-by-four.

Office Chair: Yes, my lower back feels like someone drove a spike through it when I leave the office every day, but I saved $200 on this office chair! Super cool, right? No, that’s not super cool at all. You’d be better off standing up.

Silverware: If your knives and forks are the shape of a crescent moon, we think it’s okay to spend a few extra dollars on a nicer set.

Again, we’re not saying it’s time to become a spendaholic and buy a fancy office chair, the most expensive running shoes and gold-plated toilet paper.

All we are saying is that, sometimes, comfort matters. And if you have some wiggle room in your budget, it’s perfectly fine to spend a little extra cash on some nicer stuff. Just be reasonable and use common sense.

What are some items you think are worth a bit of extra money?

I believe that car maintenance should be on this list. I always get oil changes at 3,000 miles, get my tires rotated every 10,000 miles, and follow my maintenance book from the car manufacturer. By doing this, I am on only my third car since 1986. I should get at least another 5 years out of my present car so I will have owned only 3 cars in over 30 years by not skimping on car maintenance.

Quote of the Day from Dave Ramsey.com:
Dost thou love life? Then do not squander time, for that is the stuff life is made of. — Benjamin Franklin

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Monday 3/5

Phil's Financial Tip of the Day:

Testing the 4%-a-Year Retirement Rule
The adviser who coined this rule of thumb for withdrawals is watching how it holds up in tough markets

The next five years could determine whether a rule of thumb for retirees' withdrawals from their portfolios remains valid in these turbulent times, says Bill Bengen, a financial planner in Southern California.

Mr. Bengen is the creator of the 4% rule for retirement withdrawals.

In a study published in 1994, he said that if retirees withdrew 4% of their nest egg in the first year, and then increased the dollar amount by the inflation rate every year, their savings would easily last 30 years. He assumed that the portfolio was held in a tax-deferred account and was evenly split between large-company stocks and U.S. Treasury bonds.

To read the rest of the article from The Wall Street Journal
http://online.wsj.com/article/SB10001424052970203960804577241143142670660.html?mod=e2fb

As a footnote, Dave Ramsey recommends having 8% to live off of your next egg as a rule of thumb in determining when you can retire.

Quote of the Day from Dave Ramsey.com:
You cannot dream yourself into a character: you must hammer and forge yourself into one. — Henry D. Thoreau

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST on Dave Ramsey.com and at 8PM on WOR 710

Financial Headline News for Friday 3/2

Phil's Financial Tip of the Day:

A simple Budget for the broke $350,000 man

Andrew Schiff was sitting in a traffic jam in California this month after giving a speech at an investment conference about gold. He turned off the satellite radio, got out of the car and screamed a profanity.

"I'm not Zen at all, and when I'm freaking out about the situation, where I'm stuck like a rat in a trap on a highway with no way to get out, it's very hard," Schiff, director of marketing for broker-dealer Euro Pacific Capital Inc., said in an interview.

Schiff, 46, is facing another kind of jam this year: Paid a lower bonus, he said the $350,000 he earns, enough to put him in the country's top 1 percent by income, doesn't cover his family's private-school tuition, a Kent, Connecticut, summer rental and the upgrade they would like from their 1,200-square- foot Brooklyn duplex.

"I feel stuck," Schiff said. "The New York that I wanted to have is still just beyond my reach."

To read the rest of the article:
http://finance.yahoo.com/news/bonus-withdrawal-puts-bankers-malaise-050100338.html

This is what is called a budget Mr. Schiff. Based on making about $200,000 after taxes(even though he says he makes less than this after insurance, I netted that amount out in this budget), there seems to be plenty of money left over.

To not be stuck Mr. Schiff you simply need to contribute $20,000 to your wife's charity instead of over $100,000 and find a school for your kid at $12,000 a year tuition instead of $32,000. Also you might want to either live in your Connecticut home year round and give up your Brooklyn apartment or vice verse.

One thing I do know-if I was making $350,000 a year I could certainly live on this budget!


ANNUAL BUDGET

Net Income		$200,000				Recommended
Charitable		$ 20,000		10.00%		10-15%
Savings		$ 12,000		6.00%		5-10%
Mortgage/Rent		$ 60,000		30.00%		25-35%
Utilities		$ 16,000		8.00%		5-10%
Food		$ 24,000		12.00%		5-15%
Transportation		$ 24,000		12.00%		10-15%
Clothing		$   8,000		4.00%		2-7%
Medical		$   4,000		2.00%		5-10%
Personal/Insurance		$ 10,000		5.00%		5-10%
Recreation		$ 10,000		5.00%		5-10%
Tuition		$ 12,000		6.00%		5-10%
Expenses		$200,000		100.00%		-
Difference		$ -		0.00%
Total Budgeted Amount		$200,000		100.00%

MONTHLY BUDGET

Net Income		$16,667				Recommended
Charitable		$  1,667		10.00%		10-15%
Savings		$  1,000		6.00%		5-10%
Mortgage/Rent		$  5,000		30.00%		25-35%
Utilities		$  1,333		8.00%		5-10%
Food		$  2,000		12.00%		5-15%
Transportation		$  2,000		12.00%		10-15%
Clothing		$     667		4.00%		2-7%
Medical		$     333		2.00%		5-10%
Personal/Insurance		$     833		5.00%		5-10%
Recreation		$     833		5.00%		5-10%
Tuition		$  1,000		6.00%		5-10%
Expenses		$16,667		100.00%		-
Difference		$-		0.00%
Total Budgeted Amount		$16,667		100.00%