Personal Finance News Friday 8/31

Phil's Personal Finance Tip of the Day:

Your Guide to Saving Money

By Karen Cheney

Follow these six straightforward steps to achieve a lifetime of financial goals, from paying off credit cards to retiring to Florida (or the carefree paradise of your choice).

How to Get Started

Does this sound familiar? You, wide awake at 2 a.m.: I’ll never save enough to send the kids to college. At 3:45: Or to pay off the house. At 5:15: And, good grief, what about retirement?! I’ll have to eat cat food! Whether you’ve saved a lot or saved zip, money worries don’t have to keep you up at night—just follow this easy strategy, which tells you what to save for first and second (and why). If you’re a novice, start at the beginning. But if you’ve already put money aside, then you’ve probably knocked off a step or two here, so start reading at the point that applies to you.

To read the entire article from RealSimple.com:
http://www.realsimple.com/work-life/money/saving/save-money-00000000055115/index.html

Inspirational Quotes@Inspire_Us from Twitter:
Dream as if you'll live forever, live as if you'll die today. -James Dean

Personal Finance News Thursday 8/30

Phil's Personal Finance Tip of the Day:

Back-to-School Budgeting

Have you overlooked these important items?

from daveramsey.com on 17 Aug 2012

If you’re a parent, you probably know the feeling.

You’ve got everything together for little Johnny’s first day in first grade. Collared shirt? Check. New jeans? Check. Belt? Got it.

Little Johnny has dressed himself and looks great—just as you imagined. You’re a proud parent. But then you hear his voice from down the hall: “Mom! My shoes are too small!”

Oh no, you think. He’s outgrown his shoes! You just bought them in April. But, after a summer full of flip-flops and sandals, he hasn’t worn them since the last day of school. Johnny may be excited about going back to school, but it’s going to be a tough day for his feet.

Now you’re left scrambling to figure out a way to fit new shoes into the tiny amount of money you have left in the back-to-school budget.

Sound familiar? If so, you’re not alone. Every year, the back-to-school rush somehow manages to catch parents off-guard—even though they know it’s coming. These last-minute frantic spending sprees put dents in their bank accounts and holes in their budgets.

Some of Dave’s team members with kids help put together this list of things to keep in mind while you are preparing for your child to go back to school. If school has already started where you live, just remember that it's never too late to start tweaking your budget today!

To read the entire article from Dave Ramsey.com:
http://www.daveramsey.com/article/back-to-school-budgeting/lifeandmoney_budgeting?


Scripture of the Day from Dave Ramsey.com:
Psalm 118:8 — It is better to take refuge in the Lord than to trust in man.
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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. at Dave Ramsey.com.

Personal Finance News Wednesday 8/29

Phil's Personal Finance Tip of the Day:

Half of Americans die with almost no money
By Andrea Coombes/MarketWatch

SAN FRANCISCO (MarketWatch)—Almost half of U.S. retirees die with savings of $10,000 or less, but that grim finding doesn’t fully describe the variability and uncertainty that characterize retirement in America, according to a recent study.

While some retirees struggle profoundly, living at or below the poverty line, others enjoy wealth and health—in fact, the two are strongly linked—while still others have little in savings but enjoy a decent income, according to the report, based on a survey that tracked retirees from 1993 through 2008.

While 46% of retirees have just $10,000 in savings when they die, “That doesn’t mean their standard of living is very low—they might have a relatively generous pension plan, most of them will have Social Security,” said James Poterba, professor of economics at M.I.T., president of the National Bureau of Economic Research, and a co-author of the study.

But the findings “suggest something about the financial resiliency of these households,” Poterba added. “They may not have much capacity to absorb a shock, such as an out-of-pocket medical expenditure. They don’t have very much in the way of liquid assets they can access.” Read the study here.

When net worth is measured—including savings, home equity, the value of Social Security and pension benefits, and more—retirees’ financial picture around the time of death looks less bleak.

Single people had average assets of about $142,000, those whose spouse had died previously had average assets of $253,000, and couples where the surveyed retiree had died but the other spouse was still living had average assets of $692,000, according to the study.

To read the entire article from MarketWatch:
http://www.marketwatch.com/story/half-of-americans-die-with-almost-no-money-2012-08-29?Link=obinsite

Scripture of the Day from Dave Ramsey.com:
Proverbs 17:16 — Why should fools have money in hand to buy wisdom, when they are not able to understand it?

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. at Dave Ramsey.com.

Personal Finance News Tuesday 8/28

Phil's Personal Finance Tip of the Day:

Housing looks good, but check the calculator
By Jack Hough/MarketWatch

U.S. home prices rose in June from a year earlier for the first time in nearly two years, according to data released Tuesday. Is this the start of a bounce back for housing, or is it just a cheerful blip in the numbers before prices resume their fall?

Bet on neither. Instead, assume for planning purposes that U.S. house prices will rise by an average of 2.3% a year over the next decade. Here’s why: House prices tend to track the rate of inflation over long time periods. After all, inflation is the gradual rise in the cost of ordinary goods and services, and houses are boxes made from ordinary goods and services—lumber, copper, carpentry and so on.

If house prices either outpaced or lagged behind the inflation rate over long time periods, houses would become either infinitely unaffordable or cheap.

Of course, that doesn’t happen. Booms and busts tend to offset each other, leaving house prices in sync with other prices. That’s what has happened over the past dozen years or so.

Predicting the inflation rate is difficult, but the work is already done. That’s because of a special kind of bond called Treasury inflation-protected securities, or TIPS. These give investors both a stated interest rate and an ongoing principal adjustment based on the Consumer Price Index, the main measure of inflation. Regular Treasurys give investors only the stated yield.

To read the entire article from MarketWatch:
http://www.marketwatch.com/story/housing-looks-good-but-check-the-calculator-2012-08-28

Scripture of the Day from Dave Ramsey.com:
Proverbs 12:11 — He who works his land will have abundant food, but he who chases fantasies lacks judgment.

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. at Dave Ramsey.com.

Personal Finance News Monday 8/27

Phil's Personal Finance Tip of the Day:

Pay These Bills First

Yahoo! Finance – Mon, Aug 20, 2012 11:31 AM EDT

Can’t keep up with your bills? On average we receive eight to 10 statements per month. Paying them all in a timely manner can be challenging, but keep in mind -- not all bills are created equal.

Here’s how to best navigate your monthly expenses and give your budget some much-needed breathing room.

Prioritize Real Estate Taxes

To begin, paying for the roof over your head should come first and, beyond your rent or mortgage, your real estate taxes ought to be a top priority. Default on this tax and your municipality can issue a tax lien, putting your home on the line. In some cases, low-income seniors and veterans can build breathing room by entering a property tax deferral program through their local county or state.

Address Your Auto Loan

Don’t mess with your auto payments, either. Fall behind and you could face a repossession after just one missed payment, depending on the terms of your loan, and no car means possibly no transportation to work -- yet another problem. If you need help, ask your lender to extend the length of the loan to reduce your monthly statement or ask about refinancing. The average rate on a 4-year auto loan is roughly 3%, according to Bankrate.com.

To read the entire article from Financially Fit/Yahoo Finance
http://finance.yahoo.com/news/pay-these-bills-first.html


Scripture of the Day from Dave Ramsey.com:
Matthew 23:5 — Everything they do is done for people to see.

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. at Dave Ramsey.com.

Personal Finance News Saturday 8/25

Phil's Personal Finance Tip of the Day:

Accomplishing the (seemingly) impossible
By Harvey Mackay

A college student arrived a few minutes late for his final exam in mathematics. The room was quiet, with everyone working hard, and the professor silently handed him the test. It consisted of five math problems on the first page and two on the second. The student sat down and began to work. He solved the first five problems in half the time, but the two on the second page were tougher. Everyone else finished the exam and left, so the student was alone by the end of the time period. He finished the final problem at the last second.

The next day he got a phone call in his dorm room from the professor. “I don’t believe it! You solved the final two problems?”

“Uh, yeah,” the student said. “What’s the big deal?”

“Those were brain teasers,” the prof explained. “I announced before the exam that they wouldn’t count toward your final grade, but you missed that because you were late. But hardly anyone solves those problems in so short a time! You must be a genius!”

“Genius” is sometimes just not realizing that something is impossible.

Truly, some feats are impossible. I don’t expect to ever see a person fly without some mechanical help. I’m not betting on anyone outrunning a high-speed locomotive. But then, I probably wouldn’t have put money on Antonio Albertondo, who swam the English Channel in 1961.

The Channel waters are cold and unpredictable. Only a tiny percentage of those who have attempted to swim across have reached the other side. But Antonio, who was 42 years old at the time, swam from England to France, where his waiting friends congratulated him for accomplishing what they thought was impossible for a man his age.

Antonio stopped long enough for a hot drink, and told his friends they hadn’t seen the impossible yet. Then he dove back into the water, swam 22 more hours and made it back to England. Did he accomplish the impossible? I vote yes.

I do believe that there are limits to our physical abilities. But I absolutely accept that our minds have capabilities that we cannot begin to comprehend. Antonio’s physical accomplishment also had a major mental component. He put his mind to accomplishing the seemingly impossible.

“So many of our dreams at first seem impossible, then they seem improbable, and then, when we summon the will, they soon become inevitable,” said the late actor Christopher Reeve. Reeve’s dream of walking after a catastrophic horseback riding accident was never realized, but because of his activism and fund-raising activities, major research breakthroughs for spinal injuries have given hope to many.

To read the entire article from Harvey Mackay.com:
http://www.harveymackay.com/accomplishing-the-seemingly-impossible/

Mackay’s Moral: What could you accomplish if no one told you it was impossible?

Personal Finance News Friday 8/24

Phil's Personal Finance Tip of the Day:

Five money saving tips for new home buyers

Are you a new homeowner looking for ways to save some money? Here are some great places to start.

By Terence Loose | Yahoo! Homes – Thu, Aug 16, 2012 6:59 PM EDT

 

When buying a new home, you probably have a "To Do" checklist longer than a loan application. But there are a few things you should put above "Do Happy Dance in Front of Co-workers who Rent."

Like "Find Ways to Save Money."

The good news is there are several ways you might be able to save a little green. From major moves like refinancing your mortgage, to more humble acts like bundling your Internet and cable with one company, the savings potential for new or prospective homeowners is big.

So, before putting on your dancing shoes, check out these five tips that could help you save.

Tip #1 - If You Can, Get a Shorter-Term Mortgage

If you’re still shopping for mortgage loans, or if you’re already thinking of refinancing (replacing your existing loan with a newer one), choosing a 15-year loan term - rather than a 30-year term - could be a smart financial move.

This means you could pay off your house in 15 years instead of 30 years. And that has some advantages, as well as some challenges.

On the plus side, a 15-year loan typically means a lower interest rate, says Fred Arnold, a member of the National Association of Mortgage Professionals (NAMB) board of directors. He says most lenders offer a rate that’s at least a half percent lower than the rate for a 30-year loan. This means you could pay much less in interest over the life of the loan.

How much? Here's one example:

If you borrowed $250,000 for 30 years at 4.5 percent, you would pay $206,016.78 in interest over the life of the loan, in monthly payments of $1,266.71. However, if you borrowed $250,000 at 4.0 percent for just 15 years, your monthly payments would rise to $1,849.22, but the total amount of interest would only be $82,859.57. That’s a savings of more than $120,000...a good chunk of change, wouldn’t you say?
[Get a pre-qualified mortgage rate. Click to compare rates now.]

As for challenges, because you are paying off the loan in half the time, your monthly payment will be higher, as the example above shows. So be sure you can afford it. And if you’re comfortable with it, Arnold says you could be on a strong financial path.

"Your payments might be higher, but it requires you to be disciplined and in many cases that’s how people become very wealthy," says Arnold, who adds that if you can’t afford to go all the way down to a 15-year loan, there are also 20- and 25-year options from some lenders.

Tip #2 - Get Rid of Your Private Mortgage Insurance (PMI)

If your down payment was less than 20 percent of the value of your home, it’s very likely your lender required you to buy private mortgage insurance (PMI), a policy that protects any losses the lender might take if you don’t make your loan payments.

And unfortunately, the PMI isn’t cheap. According to a mortgage consumer guide published by the U.S. Federal Reserve System, which oversees national monetary policy and banks, PMI could cost anywhere from $50 to $100 per month.

Wouldn’t it be nice to get rid of that? Good news: you can. The first way, of course, is to put 20 percent down when you buy a house. But if you couldn’t or can’t, don’t worry, you still have a shot at losing the insurance.

According to the Federal Reserve, when you make enough payments to gain 20 percent equity in your home (based on the original purchase price), you can send a written request to your lender to cancel the PMI.

The Federal Reserve adds that federal law requires your PMI payments to automatically stop once you reach 22 percent equity in your home - again based on your original purchase price and with a clean payment record.

Finally, you should know that PMI is different than LPMI, which stands for lender's private mortgage insurance. Some lenders buy LPMI and charge you a higher interest rate to cover the expense.

According to the Federal Reserve, this type of insurance does not automatically cancel; instead, you must refinance your home to possibly get rid of it.

To read the entire article from Terence Loose | Yahoo! Homes:
http://homes.yahoo.com/news/tips-for-new-homeowners-to-save.html

 

Inspirational Quotes@Inspire_Us from Twitter:
For remember, fear doesn't exist anywhere except in the mind. -Dale Carnegie

 

 

Personal Finance News Thursday 8/23

Phil's Personal Finance Tip of the Day:

Inheriting an underwater home: Who pays the bill?

Real estate guru Bob Massi weighs in
Fox and Friends/Fox News Thursday August 23,2012


To view the Rebuilding Dreams segment from Fox and Friends Thursday August 23, 2012:
http://www.foxnews.com/on-air/fox-friends/index.html#/v/1800047465001/inheriting-an-underwater-home-who-pays-the-bill/?playlist_id=86912


Scripture of the Day from Dave Ramsey.com:
Proverbs 24:10 — If you falter in a time of trouble, how small is your strength.

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. at Dave Ramsey.com.

Personal Finance News Wednesday 8/22

Phil's Personal Finance Tip of the Day:

Pay These Bills First
Yahoo! Finance – Mon, Aug 20, 2012 11:31 AM EDT

Can’t keep up with your bills? On average we receive eight to 10 statements per month. Paying them all in a timely manner can be challenging, but keep in mind -- not all bills are created equal.

Here’s how to best navigate your monthly expenses and give your budget some much-needed breathing room.

Prioritize Real Estate Taxes

To begin, paying for the roof over your head should come first and, beyond your rent or mortgage, your real estate taxes ought to be a top priority. Default on this tax and your municipality can issue a tax lien, putting your home on the line. In some cases, low-income seniors and veterans can build breathing room by entering a property tax deferral program through their local county or state.

Address Your Auto Loan

Don’t mess with your auto payments, either. Fall behind and you could face a repossession after just one missed payment, depending on the terms of your loan, and no car means possibly no transportation to work -- yet another problem. If you need help, ask your lender to extend the length of the loan to reduce your monthly statement or ask about refinancing. The average rate on a 4-year auto loan is roughly 3%, according to Bankrate.com.

To read the entire article from Financially  Fit/Yahoo Finance:
http://finance.yahoo.com/news/pay-these-bills-first.html


Scripture of the Day from Dave Ramsey.com:
2 Corinthians 6:17 — Therefore, come out from among them and be separate, says the Lord. Touch no unclean thing and I will receive you.
 

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. at Dave Ramsey.com.

Personal Finance News Tuesday 8/21

Phil's Personal Finance Tip of the Day:

Rents Are Rising: What Should You Do?
Julie Mehta

Posted on August 10, 2012

The good news is the housing market is beginning to perk up. The bad news is some apartment rents are going through the roof.

Rents increased an average of 5.4% between June 2011 and June 2012, according to new findings by real estate website Trulia, and in cities such as San Francisco, Boston, Denver and Miami, rental prices have jumped more than 10% over the past year.

A Reuters article reports that recent data from real estate research firm Reis shows rents increasing at the highest rate since 2007. The average asking rent is now $1,091 per month nationwide. In the most expensive market, New York City, that average is $2,935.

Ouch.

Today, we’ll take a look at some of the factors driving rents upward, and suggestions for how to handle this trend:

Why Rents Are Rising

Right now, there’s plenty of demand for rentals, and not enough vacancies. Here are three big reasons why:

• The flood of foreclosures in recent years has forced a number of former homeowners into the rental market.
• An easing employment market has enabled people who may have been living with family or roommates to seek out places of their own.
• Renters who may be thinking of buying a home are biding their time because of the volatile state of the economy and the fact that lenders are pickier about who qualifies for a mortgage these days.

While there’s all this demand, the supply of apartments hasn’t kept up. According to Reis, only about 38,000 new apartment units were built in 2011, the smallest number in more than 30 years. And the current apartment vacancy rate is just 4.7%, the lowest it’s been since 2001.

To read the entire article from Learnvest.com:

http://www.learnvest.com/2012/08/rents-are-rising-what-should-you-do-2/


Scripture of the Day from Dave Ramsey.com:
Daniel 1:8 — But Daniel resolved not to defile himself with the royal food and wine, and he asked the chief official for permission not to defile himself this way.

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. at Dave Ramsey.com.

Personal Finance News Monday 8/20

Phil's Personal Finance Tip of the Day:

Personal Finance Advice for College Students
Here's what students heading off to school this fall need to know about managing money.
By Janet Bodnar, Editor, Kiplinger's Personal Finance

August 17, 2012

College students take a lot of heat for being poor money managers. But I’m convinced that all it takes to sharpen their skills is a little knowledge. I’ve reached that conclusion after years of working with summer interns here at Kiplinger. Each year, we get a new crop of bright young college students who know almost nothing about personal finance. And let’s face it, reporting and writing about things such as mutual funds and 401(k) plans doesn’t sound very glamorous. But when I ask them how they enjoyed their summer, I’m invariably impressed by how much they’ve learned -- and taken to heart.

Read more: http://www.kiplinger.com/columns/drt/archive/personal-finance-advice-for-college-students.html?si=1#ixzz24DXl98GG
Become a Fan of Kiplinger's on Facebook


Scripture of the Day from Dave Ramsey.com:
Ecclesiastes 3:1 — There is a time for everything, and a season for everything under the heavens.

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. at Dave Ramsey.com.

Personal Finance News Saturday 8/18

Phil's Personal Finance Tip of the Day:

Beat the rising cost of new TVs
By Clark Howard

People are spending more than they have in two years on flat-screen TVs, but it doesn’t have to be that way.

New data from market research firm IHS iSupply finds that the average price is now up over $1,200. Shoppers are buying fancy TVs, smart TVs, LEDs, you name it. They all have fantastic picture resolution.

But the other side of market is that current technology TVs – not state-of-the-art smart TVs -- are by far the cheapest ever. I’ve been watching the sales and have seen 32-inch HDTVs for $175; 42-inch for $299; 50-inch for $399; and 60-inch for $799.

That’s so much less than what people are paying right now on average.

Roku is a great way to take a dumb TV and make it into a smart TV for $100 or less. Samsung has a Blu-ray DVD player that often goes on sale for $89 with beautifully thought out apps to simulate a smart TV experience.

So instead of buying the latest, greatest TV, buy the deal and then get a separate device. Don’t have all your functionality built into one device. By dividing, you conquer the cost. Buy two devices and you’ll save hundreds and hundreds of dollars.

Please listen to the Clark Howard show Monday-Friday 1-3 EST:
http://www.wsbradio.com/

Inspirational Quotes@Inspire_Us from Twitter:
Winners don't wait for chances, they take them. -Unknown

Personal Finance News Friday 8/17

Phil's Personal Finance Tip of the Day:

Videogames? Nah. He Scrimped for a Stratocaster

By ELIZABETH BERNSTEIN The Wall Street Journal

When Luke Flottman was 8 years old, he got tired of not having any money to buy videogames. So he lobbied his parents for chores—yard work, dishes, making all the beds in the house—to earn some cash. "I knew they weren't just going to hand it to me," says the 13-year-old eighth-grader from Cold Spring, Ky.

He made a few dollars a job, sometimes scoring as much as $15 for counting money his dad, Peter, brought home from the soda machine at the printing company he owns. To eliminate inconsistency, Luke and his parents settled on a standard $4 a week.

It's not much. (In five years, he hasn't gotten a raise.) But it all goes to the same thing: his passion for rock 'n' roll. A big fan of Ozzy Osbourne's "Crazy Train" and anything by Metallica, Luke got his first acoustic guitar at age 5 and started weekly lessons at a local music store the same year. A few Christmases later, his guitar arsenal had grown to three.

To read the entire article by ELIZABETH BERNSTEIN from WSJ:
http://online.wsj.com/article/SB10000872396390444318104577589160748644758.html?mod=WSJ_FamilyFinance_MoreHeadlines

Scripture of the Day from Dave Ramsey.com:
Psalm 91:11 — He will command His angels concerning you to guard you in all your ways.

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. at Dave Ramsey.com.

Personal Finance News Thursday 8/16

Phil's Personal Finance Tip of the Day:

Beware of These Common Holes in Homeowners Insurance Coverage

By Kimberly Palmer | U.S.News & World Report LP – Wed, Aug 15, 2012 12:57 PM EDT

Earthquakes, unexpected deductibles, and flooding are just a few of the costs your homeowners policy might not cover. But if you're like most Americans, you probably don't realize it. According to the MetLife Auto & Home Insurance Literacy Survey, many homeowners are clueless about the ins and outs of their policies, which means they could easily end up paying a lot more than they expected after damage to their home.

[In Pictures: 10 Costs Homeowners Insurance Doesn't Always Cover.]

That's what happened to Aditi Haridat's parents, shortly after they bought the home of their dreams. A lamp overheated while they were out of the house, creating a fire. Not only did they lose their pet cockatiel, but the inside of their home was partially destroyed. That was only the beginning of their nightmare. After their insurance company arranged for a contractor to redo the inside of the house, that contractor ended up inadvertently causing a major flood in the basement, which led to a black mold infestation.

Haridat's parents, who live in New Jersey, were frustrated when the insurance company offered less than the estimated cost to repair the home. The stress took a toll: "My poor parents couldn't sleep.

They were completely distraught," says Haridat, a documentary filmmaker. Eventually, the family decided to hire a public adjustor to help them negotiate a higher settlement.

Almost half of all homeowners in the MetLife survey didn't know how much insurance coverage they had for the contents of their home, and 1 in 3 didn't know how much their home was insured for.

MetLife warns that this "knowledge gap" can lead to costly surprises and recommends that homeowners review their policies more closely.

Here's a quick way to test your knowledge on six common coverage gaps:
[See 20 Hot Money Moves for Summer.]

Do you think your insurance policy would reimburse you for earthquake damage?
The answer, according to MetLife, is almost always "no," unless you purchased a separate earthquake policy. Almost 30 percent of survey respondents thought the answer was "yes," and another 30 percent didn't know.

To read the entire article from Kimberly Palmer | U.S.News & World Report LP:
 http://finance.yahoo.com/news/beware-common-holes-homeowners-insurance-163008788.html;_ylt=Agfna3.EfMT7QxPw1EZL28aiuYdG;_ylu=X3oDMTQ0YmE3cWZpBG1pdANGUCBQZXJzb25hbCBGaW5hbmNlBHBrZwMzYTZmYjRiYi0xZmYwLTNhYmItYjYzNy0xMGExZDkzZGE0MDcEcG9zAzMEc2VjA01lZGlhU2VjdGlvbkxpc3QEdmVyAzU0YmFiNDQ5LWU2ZmEtMTFlMS1iYmY3LTVjM2Q3YTI5MTcxNg--;_ylg=X3oDMTFpN


Scripture of the Day from Dave Ramsey.com:
Proverbs 3:12 — The Lord disciplines those He loves, as a father the son he delights in.

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. at Dave Ramsey.com.

Personal Finance News Wednesday 8/15

Phil's Personal Finance Tip of the Day:

Cut your cable TV bill by cutting the cable
You might like commercial-free, on-demand better

By Jennifer Waters, MarketWatch

CHICAGO (MarketWatch.com)—If cash is tight, it might be time to cut the cord on cable and satellite services in favor of online options that are free or considerably cheaper.

But be prepared. It’s scary to switch and learn a new behavior.

“It is a big jump,” said Janko Roettgers, a San Francisco-based staff writer for GigaOM, an online technology information site. “It’s a completely new way of doing things and you have to figure those things out, sometimes as you go.”

Fortunately, there are resources out there to help you navigate the maze of devices and services you’ll need. Roettgers, for one, researched the alternatives for five years before writing his book, “Cut the cord: All you need to know to drop cable.”

“Cord cutting may seem daunting these days,” he said in the book. “But a few years from now, everyone is going to watch TV like a cord-cutter; without big, expensive cable bundles and with new devices that make your cable box look like a relic from days gone by.”

That might be jumping the gun a bit considering that cord-cutters represent a very small piece of the viewing population now. But cord-cutters are nibbling away at the nation’s largest cable and satellite providers, according to second-quarter results released earlier this month.

U.S. cable and satellite companies combined lost more than 670,000 customers in the quarter, according to Bernstein Research. That’s been the case for the past two years in the second quarter, the research firm said, noting that the quarter is typically one for turnovers—when students, for example, drop subscriptions ahead of a new school year.

But the continuing economic challenges also have played a key role as consumers—particularly younger and lower-income users—look for ways to cut expenses.

Industry analysts refer to the so-called “cord-cutting debate” as if it were a contentious dispute or deliberation on the pros and cons of pay-TV. It’s not.

Those for and against cord cutting carry basically the same argument: At $80-$150 each month, it’s a costly proposition to have access to hundreds of choices of programming and content—the vast majority of which you may never even see or know it’s there.

Why people do away with pay TV is a matter of debate as well. On blogs and Twitter, consumers say they cut the cord because the costs outweigh the benefits and there are easy alternatives out there. No one really watches or needs 700 channels, or even 100 channels.

To read the entire article from Jennifer Waters, MarketWatch
http://www.marketwatch.com/story/cut-your-cable-tv-bill-by-cutting-the-cable-2012-08-15

Scripture of the Day from Dave Ramsey.com:
1 Corinthians 9:24–25 — Do you not know that in a race all the runners run, but only one gets the prize? Run in such a way as to get the prize.

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. at Dave Ramsey.com.

Personal Finance News Tuesday 8/14

Phil's Personal Finance Tip of the Day:

Ways to save even when food costs are rising
By Clark Howard

We all know there have been higher grocery prices because of a pitiful corn harvest, which is the key ingredient in so much of the food that winds up in our supermarkets. But I want to tell you about ways to run counter to that trend.

Food producers have absorbed some of the price increase in raw material costs because the marketplace won't completely support higher prices. Whatever couldn't be absorbed was passed along to us; you're seeing that as smaller portions of processed foods are being sold for the same price.

I had said a few months ago it looked like the worst of this trend was over. It appeared as though we would have a decent harvest and the price pressure would ease. But the big harvest we were expecting didn't happen because of the weather.

So the price pressure will continue in the grocery store. That's why it's more important than ever for you to be smarter when you're shopping for food.

• Buy what's on sale and skip what's not. This is a strategy called product substitution.
• Use non-traditional channels like warehouse clubs for buying food.
• Become more adept at using coupons by checking CouponMom.com and similar sites that will help you save when you shop.
• Shopping at Aldi can reduce your food costs by 40% over traditional supermarket prices without you having to do any couponing. Sure, you give up selection, service, the ability to use a credit card and the hours are limited at Aldi, but you will save big money.

Please listen to the Clark Howard show Monday-Friday 1-3 EST:
http://www.wsbradio.com/

Scripture of the Day from Dave Ramsey.com:
Proverbs 13:10 — Pride only breeds quarrels, but wisdom is found in those who take advice.

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. at Dave Ramsey.com.

Personal Finance News Monday 8/13

Phil's Personal Finance Tip of the Day:

Why College May Not Be Worth It

By Albert Bozzo | CNBC – Mon, Aug 13, 2012 10:10 AM EDT

When Noor Siddiqui learned about a fellowship that would give her $100,000 to pursue her dream to create an alternative educational system for the world's poor, she saw her future.

"I had this moment-'This is the perfect thing for me,'" remembers Siddiqui, who at the time was attending high school in Fairfax County, Va., where she had already helped create a not-for-profit organization.

She didn't blink at the terms, though she knew her parents would - the Thiel Foundation fellowships open to applicants under 20 years old require postponing college or interrupting it during the two years they work on their project. They must also move to the San Francisco area.

Siddiqui applied, but didn't tell her Pakistani-immigrant parents. Once accepted, of course, she confronted the inevitable. "My parents thought it was a horrible idea," she remembers.

Their opposition was one-part immigrant aspiration, one-part conventional wisdom.

Noor, however, prevailed and passed on attending her choices of Brown University or the University of Chicago. She is now looking for companies to support her venture while working the foundation's mentor network to further develop her idea - community centers in developed countries that provide vocational training.

"I know education is really important to them, but they don't think the two years are going to be a free ride," says Siddiqui, now 18, summarizing the issues of her parent's conversion. "It will probably be one of the most important learning experiences of my life."

[More From CNBC: US States With the Most Student Debt]

Some of Noor's peers in the Thiel Foundation fellowship program had similar reactions to the opportunity and fought similar battles with their parents to chase their dreams, which are hardly the typical career aspirations of teenage Americans.

To read the entire article from CNBC:
http://finance.yahoo.com/news/why-college-may-not-worth-182930079.html

Scripture of the Day from Dave Ramsey.com:
Proverbs 13:6 — Righteousness guards the man of integrity.

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. at Dave Ramsey.com.

Personal Finance News Saturday 8/11

Phil's Personal Finance Tip of the Day:

You Control Your Emotions

August 2, 2012 By Harvey Mackay

You are driving to work when suddenly another driver cuts into your lane and nearly clips you. You immediately get mad and it sets you off for the morning.

One of your co-workers calls in “sick” – again – meaning you will be doing double duty for the third time this month. Your own work is piling up while you try to cover for her. You head to the manager, ready to explode.

You have tickets for a ball game you’ve been looking forward to attending with your family, but the dark clouds overhead open up and ruin your plans. Your kids are disappointed, and you curse the weather gods for spoiling your day.

Wouldn’t it be great if you could control your emotions and shake these things off, along with all the other things that might happen to you on any given day? It’s natural to be upset when things don’t go according to plan. But all too often, we overreact and start a domino effect that prevents us from seeing the positive side of anything.

George Foreman, former heavyweight boxing champ, makes a great point: “Being angry and resentful of someone is like letting them live rent-free in your head.”

Controlling emotions is a challenge for people of all ages. But it can be done! You are the only person directly responsible for your emotions. You are responsible for how you act and react. No one makes you respond in a certain way.

“The greatest discovery of my generation is that human beings, by changing the inner attitudes of their minds, can change the outer aspects of their lives,” said American philosopher William James – in the late 1800s, no less. Clearly, the problem has existed for ages.

Fortunately, there are some very effective strategies for getting a grip on your emotions. It takes practice, to be sure. But the payoff is unmistakable. And your blood pressure will thank you too.

• Practice good self-care. Take care of your own physical, emotional and mental needs. Someone who does this on an ongoing basis will better be able to handle negative emotions – and not become a threat to others.
• Identify what anger and frustration feel like – both in your head and in your body. If people are cut off from their feelings, there is a much higher chance that they will act rashly.
• Get out of the stressful situation and take a walk. Take the time you need to process your feelings and emotions. Perhaps it’s enough for you to take a deep breath and count to ten – slowly.
• Vent to someone who will listen without judging.
• Find a temporary distraction. Engage in an activity that will take your mind off the upsetting subject.
• Take action. Think about how the situation could be positively changed, and then encourage steps to help solve the problem.
• Communicate your desire for change to others who can help make the change a reality.
• Think about “what’s right,” rather than “what’s wrong.”

To read the entire article from Harvey Mackay.com
http://harveymackay.com/column/you-control-your-emotions/

Mackay’s Moral: Attitude is the mind’s paintbrush – it can color any situation.

Personal Finance News Friday 8/10

Phil's Personal Finance Tip of the Day:

Reset the Savings Goals

Friday, Aug 10 in Debt 

From Dave Ramsey.com

Question: Elizabeth in Texas and her husband have $68,000 in debt. Elizabeth makes about $105,000 a year, and their income will double when her husband graduates in January. She was in a car accident five years ago and received a $365,000 settlement. They also have investments in mutual funds. Should they cash out some mutual funds to pay off the debt?

Answer: You've been very protective of that money and have protected it from yourself, which was very wise. I don't know who helped set that in your psyche properly, but they did. Dad or Mom or somebody needs a hug. They did a great job of setting you up to go, "Don't freaking touch this!"

That's really drilled down inside of you to the point it kept you from spending it. You didn't go on a European vacation and buy two BMWs with it, which was brilliant to not do that. You didn't consume this money. But now that you're living on a game plan, you are telling your money what to do, you are as likely to put that money back in the mutual fund as you are to pay off the debt by August, and the two of you have this tremendous income—it just keeps growing by leaps and bounds as you continue to hit these milestones of graduation and entering your careers and those kinds of things.

Yes, I would write a check today and be debt-free. Let's be so excited that we ask what's the next goal? Pay cash for a house. Then we've got to say, "All right, we need $X. We have $180,000 minus $70,000. We now have $110,000, and we need $X and we have this income. Let's map that out and be excited about building that $310,000 or whatever-that-target-is nest egg to buy that house with for cash." Just be as excited about that as you are about becoming debt-free. In other words, you've got to have something you're aiming for as a reason to keep you reasonable on your consumption and reasonable on your giving. You want to be consuming reasonably, and you want to be giving a lot, but you want to do it in such a wise way that it allows you to completely change your family tree, which you are setting yourself up to do.

What I would do is say you need to be saving $4,000 a month or $5,000 a month or $8,000 a month—whatever it is depending on when he goes to work, that kind of thing—and we're trying to hit this certain goal. The fact that we don't have these payments anymore allows us to do it that much faster. I would today be debt-free. Then I would reset my savings goals to replace my get-out-of-debt goals. Just keep trucking. You're really, really doing well.
Hear the call!


Scripture of the Day from Dave Ramsey.com:
1 Timothy 6:6 — But godliness with contentment is great gain

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. at Dave Ramsey.com.

Personal Finance News Thursday 8/9

Phil's Personal Finance Tip of the Day:

How Wiping Out Debt Can Affect Your Taxes
From The Wall Street Journal

In this still-sluggish economy, debts can pile up beyond one's ability to repay. The only good news is that lenders are sometimes willing to forgive debts owed by especially beleaguered folks. While this can help you survive financially, it can also trigger negative tax consequences—but maybe not.

When a lender forgives part or all of a debt, it results in so-called cancellation of debt (COD) income.

The general rule is that COD income counts as taxable income. For the year when COD income occurs, the lender is supposed to report the forgiven amount to the borrower, and to the Internal Revenue Service, too, on Form 1099-C (Cancellation of Debt).

But there are several exceptions to the general rule:

Bankruptcy. If the borrower is in Title 11 bankruptcy proceedings when the COD income occurs, the income is completely exempt from federal income taxation. Title 11 encompasses bankruptcy filings under Chapter 7 (so-called liquidations), Chapter 11 (so-called reorganizations) and Chapter 13 (so-called wage earner filings).
 
Insolvency.When the borrower is insolvent (with debts in excess of the fair market value of his or her assets) immediately before debt cancellation occurs, the resulting COD income is exempt from federal income taxation to the extent of that insolvency. However, when the debt cancellation effectively makes the borrower solvent, the COD income is taxable to the extent the borrower is made solvent.

To read the entire article from The Wall Street Journal:
http://online.wsj.com/article/SB10000872396390444320704577562893581125870.html?mod=WSJ_FamilyFinance_MoreHeadlines

Scripture of the Day from Dave Ramsey.com:
John 8:12 — I am the light of the world; whoever follows me will never walk in darkness, but will have the light of life.

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. at Dave Ramsey.com.

Personal Finance News Wednesday 8/8

Phil's Personal Finance Tip of the Day:

11 Ways to Save Big on College Textbooks
By Brandon Ballenger | Money Talks News – Wed, Aug 8, 2012 1:29 PM EDT

Most college students will be returning to campus later this month, and they’ll spend an estimated average of $655 on textbooks for the school year.

That sounds low to me – more like what I’d spend in a semester as an English major a few years ago.

The National Association of College Stores says today’s prices are less than two years ago ($667) or four years ago ($702), but it’s still a lot. And $47 in savings isn’t all that comforting when you consider the average total cost of college has jumped 28.6 percent – almost $4,000 – over those same four years, according to the U.S. Department of Education.

Anything you can do to offset costs counts. So here are some strategies to save on your textbooks, starting with this video from Money Talks founder Stacy Johnson. Check it out, then meet me on the other side for more…


Click here to watch ’3 Places to Get Free Textbooks’ on MoneyTalksNews.com
Now let’s add more details and tips…

1. Contact your professors now

Class may not start for weeks, but chances are your textbooks are already decided – professors have to give college stores advance notice so they can order copies. So email your profs and ask for the syllabus or required textbook list so you can snag the cheapest copies before your classmates get the chance.

If you know students who have had that professor before, talk to them. They might still have a copy for cheap. And the professor might say you need a certain book, but your friend who had him might tell you they only used it in class once, and there was nothing from it on the tests. But either way, before you buy…

2. Visit the campus library

Why pay anything when you can borrow it free? If you’re quick enough, you may be able to get one of the library’s precious few copies. If it’s checked out, see if you can reserve a copy that’s due back soon.

And don’t forget digital libraries. As Stacy mentioned in the video, many out-of-copyright works are available on sites such as Project Gutenberg and Bartleby.

To read the entire article by Brandon Ballenger | Money Talks News:
http://finance.yahoo.com/news/11-ways-save-big-college-153713865.html


Scripture of the Day from Dave Ramsey.com:
Philippians 4:11 — I am not saying this because I am in need, for I have learned to be content whatever the circumstances.

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. at Dave Ramsey.com.

Personal Finance News Tuesday 8/7

Phil's Personal Finance Tip of the Day:

8 Ways to Save Big on Rent
By Angela Colley | Money Talks News – Mon, Aug 6, 2012 3:30 PM EDT

My landlord rents her properties at $850 a month. But I pay $750.
Why? Shrewd negotiation, patience, and a lot of research got me a $100-a-month discount. But that isn’t the only way to save money on rent.

1. Shop around
The Internet has turned me into a hardcore comparison shopper, and apartments are no different. There are dozens of apartment rental sites listing dozens of properties in my hometown. It pays to check out several of these sites when you’re looking for a new pad. I mentioned a few sites you should use (and a few you shouldn’t) in The Best (and Worst) Apartment Rental Sites.
But don’t stop your search with your computer. I found my last apartment through a “For Rent” sign in the window. The place was $150 cheaper than anything else I found, and I never saw an online ad for it.

2. Move a few miles away
Location is everything in real estate. If you live in the most popular area, you’re going to pay the highest rent. But if you move a couple of miles (or sometimes even a few blocks) away, you can get a serious discount. For example, renters in my city (New Orleans) pay about $1,250 a month to live in studio apartments on a trendy street. I live four blocks away and pay $750 a month for a one-bedroom. I don’t get bragging rights, but I’m still within walking distance – and I’m saving $500 a month.

3. Wait
I start looking for a new apartment a month or two before I need one. If I find a place I like, I keep an eye on it. More often than not, private landlords lower their asking price if they don’t find a tenant within a week or two.

To read the entire article from Money Talks:
http://finance.yahoo.com/news/8-ways-save-big-rent-193013056.html

Scripture of the Day from Dave Ramsey.com:
Hebrews 12:1 — Let us run with perseverance the race marked out for us.

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. at Dave Ramsey.com.

Personal Finance News Monday 8/6

Phil's Personal Finance Tip of the Day:

Is Dad's Life Insurance Through Work Enough?
by Jack Hungelmann

Money 101

Published August 06, 2012

Bankrate.com

Dear Insurance Adviser,

What should an almost 55-year-old man do about life insurance if he has none, other than through his employer? (In other words, if he is not employed there -- no insurance.) He has a wife, a teenage child and some concerns about this situation. (Or at least his wife does.) Is he "too old" to begin? And where would we begin to look into this? What kind of costs are we looking at? Let me add, we would primarily look for cost of death/funeral money and perhaps a bit more to supplement.
-Worried Wife

Read more: http://www.foxbusiness.com/personal-finance/2012/08/06/is-dad-life-insurance-through-work-enough/#ixzz22nyheBP1

Scripture of the Day from Dave Ramsey.com:
Hebrews 13:16 — And do not forget to do good and to share with others, for with such sacrifice God is pleased.

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. at Dave Ramsey.com.

Personal Finance News Saturday 8/4

Basics of the Gift-Tax Exclusion

ASK DOW JONES August 4, 2012, 10:32 p.m. ET

From The Wall Street Journal

By TOM HERMAN

Q: With the annual gift-tax exclusion, which party gets to exclude the gift from taxable income? Is it the recipient?

— M.J.R.,
University Place, Wash.

A: The recipient typically doesn't owe Uncle Sam any income tax on that gift—as long as it is truly a gift.

As the giver, don't try handing someone a check for $13,000 and calling it a gift when it's really compensation for work that person did for you.

Here's how the annual gift-tax exclusion works:

You can give away as much as $13,000 during the year to anyone you want—and to each of as many people as you choose—without any tax considerations. These gifts can be to family members, friends or even complete strangers.

There is no dollar limit on how much you can give away with this technique as long as you do it in $13,000 slices.

A friend of mine from Connecticut asked me whether he and his wife are allowed to combine their annual gift-tax exclusion. The answer is yes, according to the Internal Revenue Service website (www.irs.gov).

"You and your spouse are each entitled to the annual exclusion amount on the gift," the IRS says.
Together, you can give as much as $26,000 to each donee this year.

Suppose you want to give away even more than that. You can pay for someone else's tuition or medical expenses without having those payments count toward the limit. But you must make those payments directly to the educational or medical institution.

The annual gift-tax exclusion amount is indexed for inflation. We won't know the 2013 threshold until later this year.

You can't deduct any such gifts as charitable donations—unless, of course, they go to a qualified charity and you itemize your deductions.

Gift taxes can be a very complex area. For more details, go to the IRS website, and type "gift tax" in the search box. Look for "Frequently Asked Questions on Gift Taxes." Also see Publication 950.

Inspirational Quotes@Inspire_Us from Twitter:
You can't let praise or criticism get to you. It's a weakness to get caught up in either one. -John Wooden

Personal Finance News Friday 8/3

Phil's Personal Finance Tip of the Day:

25 Simple Ways to Save an Extra $1,000

By Angela Colley | Money Talks News – Fri, Aug 3, 2012 8:33 AM EDT

Every year, I make New Year’s resolutions. And every year, I stick to them – for a few months. By July, I’ve often given up.

I’m not alone. “A full 35 percent of New Year’s resolutions are broken before the end of January of the successive year,” one survey revealed. If your resolution was to give up drinking or stop smoking, Money Talks News really can’t help you. But if it was to save more money, we’ve got you covered.

In the video below, Money Talks News founder Stacy Johnson has six ways you can use collectively to save $1,000. Check it out and then read on for 19 more…

Let’s review Stacy’s six and add to the list…

1. Cut your cell phone plan
Have you looked at your cell phone history lately? If you’re using less than your allotted minutes, text, or data, switch to a lower plan. Six months ago, I dropped my $89.99 unlimited plan for a $59.99 plan with 1,000 minutes – a savings of $30 a month and $180 so far. And I don’t miss the minutes. (I wasn’t using them anyway.) Comb through your history and bills, then ditch anything you’re not using.

2. Ditch the landline
Speaking of ditching things, it may be time to cut the landline. If you primarily use your cell phone, why keep two services that do the same thing? As Stacy said in the video, cutting your landline service can save $25 to $30 a month – around $300 a year.

To read the entire article and view the video:
http://finance.yahoo.com/news/25-simple-ways-save-extra-055511855.html

Scripture of the Day from Dave Ramsey.com:
Psalm 121:1–2 — I lift up my eyes to the mountains- where does my help come from?

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. at Dave Ramsey.com.