Personal Finance News Monday 4/30

Phil's Personal Finance Tip of the Day:

How to Live Debt-Free: Tips to Help Eliminate Debt
From TransUnion.com
Paying down debt may reduce the rates you could pay on future loans and save you a lot in interest payments.

 

Making a long-term effort to pay down debt can eventually allow you to live more debt-free. With just a simple debt management plan, you can live debt-free.

 

Collect all your account, loan and credit information. Order your credit reports from all three credit reporting companies and get credit scores to get a baseline for tracking your improvements. Next, write down your total monthly income and list your estimated monthly expenses that don’t appear in your credit reports (such as expenses you pay for with cash).

 

To read the entire article from Transunion.com:

https://www.transunion.com/personal-credit/debt-management/live-debt-free.page?channel=paid&cid=ppc%3Aob%3Apdebtmanagement%2Flivedebtfree

 

 

Quote of the Day from Dave Ramsey.com:
All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work. — Calvin Coolidge

 

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 Sunday 4/29

Phil's Personal Finance Tip of the Day:
Tools to help you navigate airline baggage fees
By Jennifer Waters | MarketWatch – Fri, Apr 27, 2012 11:39 AM EDT

It’s easy to reckon what it will cost you to buy airfare from Chicago to New York, but try tacking on baggage fees without a cheat sheet and you’ll be at a loss.

“There is no standard,” said Alicia Jao, vice president of travel media for NerdWallet.com, which tracks travel and financial products. “That is the problem with the industry. It’s really up to travelers to figure it all out on their own.”

And it isn’t easy, but there are online tools available to help you navigate.

Each airline has its own set of rules and they can impact what you end up paying by hundreds of dollars. And — this won’t surprise many fliers — the rules can be quite confusing.

Some airlines will charge you the same amount for the first and second bags, while others will up the ante for the second bag and really hit you for more than three bags.

Fees add up to more than airfare

Two airlines — Spirit Airlines (SAVE) and Allegiant Travel (ALGT) — charge for carry-ons and bags checked at the gate, ranging from $35 to $45 with maximum weight restrictions.

Almost all airlines will sock you if the bag is a tad too heavy than the general 50-pound limit or 60-inch size. The pain is sharper if you’re traveling outside the U.S. and Canada, so pack lightly for that Caribbean beach vacation.

Before you jump on Spirit Airlines, which offers airfares you can pay for with pocket change, do the math on what it will really cost you. The discount carrier throws down a complicated set of baggage-rate rules that vary by when you pay (online versus at the airport), what you’re carrying, and whether you’re a club member or an international flier.

“Obviously, the airlines want to make money on these fees, but they also want to discourage people from bringing heavy bags,” said George Hobica, chief executive of travel site Airfarewatchdog.com. Heavier bags add more weight to the plane, which adds to fuel costs.

Baggage fees have become the gift that keeps on giving for most airlines, which continue to tinker with charges as they reap revenue, both in total dollars and as a percentage of operating income.

The fees have become such a dependable and necessary source of revenues that even Southwest Airlines (LUV) , which has been touting “Bags Fly Free” in its ads for two years, is embracing fees already in place at AirTran Airways. (Southwest does not charge change fees, another growing revenue stream for airlines.)

Southwest, which bought AirTran Airways last May, said it will keep the baggage and change fees for AirTran — which rang up almost $167 million in the first nine months of 2011 — until 2014.

Those fees and others, including seat-assignment fees and on-board sales of food, drinks, entertainment and even pillows and blankets, add up to about 32% of AirTran’s total operating revenue.

Compare that to Spirit Airlines, which generates almost 90% of its operating revenues from such ancillary charges, and Delta Air Lines (DAL), which rang up 24% of its operating revenues from those extras in the first nine months of 2011, the most recent figures available from the U.S. Bureau of Transportation Statistics.

To read the entire article:
http://finance.yahoo.com/news/tools-help-navigate-airline-baggage-040155567.html

Inspirational Quotes@Inspire_Us from Twitter:
Sometimes it is not enough to do our best; we must do what is required. - Winston Churchill

Personal Finance News Saturday 4/28

Phil's Personal Finance Tip of the Day:

How to Launch Your Dream and Avoid a Nightmare
From Dave Ramsey.com
Ensure not only your independence but also success

Maybe it’s the idea of creating a legacy. Or the chance to follow your passion, help others, and become the next Donald Trump (minus the comb-over). Whatever is driving you to become an entrepreneur, how do you know when it’s time to turn that dream into a reality and launch your small business? Or more importantly, should you even do it at all?

As Dave writes in his newest best-selling book, EntreLeadership, there are several factors you should consider before taking that final leap into becoming a full-time business owner, including:

 

Asking Yourself Why

Question any super-successful business owner about the beginning of their company, and they will tell you countless war stories. It isn’t easy making green. Starting a company usually involves long hours, superhuman efforts and borderline disasters on a daily basis.

Before you make any move, take some time for some deep soul-searching, and ask yourself why you want to open a business. If it’s strictly for the dollars, then count yourself gone. To make it, you have to have a higher calling. You need a burning desire for what you are about to create. “Find something you love doing so much that on the tough days you have a reason to fight on,” Dave says.

To read the entire article on Dave Ramsey.com:
http://www.daveramsey.com/article/how-to-launch-your-dream/lifeandmoney_business/entre_content

Quote of the Day from Dave Ramsey.com:
The truth will set you free. But before it does, it might make you angry. — Jerry Joiner

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 Friday 4/27

Phil's Personal Finance Tip of the Day:

Can Money Mismanagement Kill Your Marriage?
By Katherine Lewis | Bankrate.com – Thu, Apr 26, 2012 10:34 AM EDT

Money: The root of good and evil

Money is infamous for becoming a sore point in a relationship -- and with good reason. Money means more to us than just dollars and cents. It can signify security, freedom, love, spontaneity. Investing that money -- for our retirement, children's future or other goals -- turns an already-fraught conversation into a high-stakes set of decisions.

"It's so emotionally loaded, representing power, security, control, self-esteem," says Olivia Mellan, author of "Money Harmony." "You're not just fighting about the money; you're fighting about what the money means."

How do you manage money as a couple without sacrificing your love or your portfolio? Whether you're newlyweds ready to buy a first home or long-married partners who have amassed enough assets to need an investment strategy, the path to a mutually agreeable money management and investment plan incorporates several important elements.

Begin with sharing goals, understanding each other's perspective, swearing off secrets, and preparing yourselves for the inevitable change in course when the markets or your jobs don't go your way, and you need to re-evaluate your strategy.

Get on the same page

To lay the groundwork for a common money management plan, sit down with your partner and look over all your financial statements together. Make sure you agree on the numbers when it comes to your family income, expenses and net worth.

Surprisingly, research suggests that men tend to overestimate their wealth, while women underestimate it, says Jay Zagorsky, an economist at Ohio State University. According to a study on this, "half of all couples provide family income values that differ by more than 10 percent and net worth values that differ by more than 30 percent."

"Before sitting down and doing these specific numbers, have each person sit down and write on a piece of paper his or her best guess," and then compare the paperwork, Zagorsky says. "If people actually talk about it ahead of time, they can head off many arguments."

Be sure to include real estate, significant personal property and financial assets in your discussion. And when you review your household budget, look at the figures for what you actually spend each month -- not what you wish you could spend. These numbers provide the context for your money management and investment decisions.

To read the entire article by Katherine Lewis | Bankrate.com:
http://finance.yahoo.com/news/money-mismanagement-kill-marriage-070046236.html

Inspirational Quotes@Inspire_Us from Twitter:
You never achieve success unless you like what you are doing. -Dale Carnegie

Personal Finance News Thursday 4/26

Phil's Personal Finance Tip of the Day:

Escalating bank overdraft fees

Tuesday, April 24, 2012 Eyewitness News-Channel 7 WABC TV New York

High bank fees, including charging for debit card use, had people taking to the streets last year. Some banks caved on that issue. But Consumer Reports says that hasn't slowed banks down. They're racking up billions of dollars in overdraft fees.

Sharon Drapeau signed up for overdraft protection on her checking account, thinking it would protect her from penalty fees if she overdrew. Instead, something else happened.

"I got hit with the bank charge for the transfer and the bank charge for the overdraft, and because I had written a check I got charged the returned check fee," Drapeau said Consumer Reports' Greg Daugherty says government rules that went into effect in 2010 were supposed to help curb abusive bank fees, but it hasn't worked out that way.

"Now your bank must get you to sign up for overdraft protection. Then it will cover you if you spend more money than you have in your account," Daugherty says. For instance, if your account is overdrawn, you're still able to use your debit card to buy a cup of coffee, a magazine, or a pack of gum. But for each transaction you can be charged as much as 35 dollars a pop.

Banks are raking in more than 31billion dollars a year in overdraft fees. Sharon says overdraft protection is a sham.

"Don't say that I'm protecting myself by signing up for the program when there's still going to be this Charge," said Drapeau.

Consumer Reports says there are ways to get some real protection.

First, decline your bank's offer to opt in for overdraft protection. If you're already signed up, opt out.

"You won't be able to use your debit card if you don't have enough money in your account. But be aware, you can still be charged overdraft fees for things like a bounced check and automatic withdrawals if there isn't the money to cover them," warns Daugherty.

"We filed alerts. We have alerts that e-mail us or they'll text us when our account is under a certain amount that we set," said Drapeau.

Now Sharon is not getting hit with charges she doesn't expect.

Consumer Reports says another move to minimize fees is to link your savings and checking accounts so you'll have that much more money to draw upon when your balance gets low. You might get charged a transfer fee, but those are generally much lower than overdraft fees.

To see the video an full report from Channel 7 Eyewitness News New York
http://abclocal.go.com/wabc/story?section=news/consumer&id=8634837

Quote of the Day from Dave Ramsey.com:
Man's mind, stretched to a new idea, never goes back to its original dimensions. — Oliver Wendell Holmes, Jr.

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 4/25

Phil's Personal Finance Tip of the Day:

Credit Freeze and Thaw Guide
From Clark Howard.com

Credit freezes are one of the most effective tools against economic ID theft available to consumers. They allow you to seal your credit reports and use a personal identification number (PIN) that only you know and can use to temporarily "thaw" your credit so that legitimate applications for credit and services can be processed. That added layer of security means that thieves can't establish new credit in your name even if they are able to obtain your ID.

Freezes have been available for free to victims of ID theft for some years, but recently all three of the major credit bureaus adopted new rules allowing non-victims to have access to credit freezes as well for a small fee. In addition, most states and Puerto Rico have adopted laws establishing credit freezes for residents of their state.

The cost ranges from $3-$10 per person per bureau to freeze a credit report; a couple of states have higher fees. See specific info for your state with the links below.

The cost to "thaw" your reports for one creditor -- or for a specific period of time -- range from being free to $10.

To read the entire article from Clark Howard.com:
http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/credit-freeze-and-thaw-guide/nFbL/

Quote of the Day from Dave Ramsey.com:
There is no passion to be found playing small—in settling for a life that is less than the one you are capable of living. — Nelson Mandela

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 4/24

Phil's Personal Finance Tip of the Day:

Zander Speaks: Term Life vs. Whole Life Insurance
Jeff Zander answers the most-asked questions about this necessity
From daveramsey.com on 19 Apr 2012

You've heard Dave say that term life insurance is the only way to go! But why is cash value insurance such a rip-off? Why do you even need life insurance? Jeff Zander answers these most popular questions from Dave Ramsey fans so that you can make the best decision for your family.

If there is at least one person in your life that financially depends on you (spouse, children, etc.), then you must have 8–10 times your annual income worth of term life insurance in place, regardless of which Baby Step you're on.

Contact Zander Insurance to get a term life insurance quote now.

To see the video from Dave Ramsey.com:
http://www.daveramsey.com/article/term-life-vs-whole-life-insurance/lifeandmoney_insurance/text2/

Quote of the Day from Dave Ramsey.com:
A hero is no braver than an ordinary man, but he is braver five minutes longer. — Ralph Waldo Emerson

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.