Phil's Personal Finance Tip of the Day:
Could You Live Without a Credit Card?
By Daniel Bortz | U.S.News & World Report LP
Giulia Rozzi's unhealthy relationship with credit cards started in college. Surrounded by friends with frivolous spending habits, Rozzi says she adopted the mindset of "spend now and deal with the consequences later." That approach continued after graduation, when she moved to Los Angeles to pursue comedy and acting. Her cash flow was unsteady, but that didn't stop her from using a credit card to bankroll a wealth of discretionary expenditures. A well-deserved pedicure? A fancy dress? A last-minute trip to Las Vegas with friends? All it took was one swipe of the credit card.
She hit a low point in 2004, having racked up $5,000 in credit card debt. Her parents agreed to pay it off - on the condition it wouldn't happen again. "The agreement with them was I would never get another credit card, and of course, I did," Rozzi says. Years later, when she found herself drowning in $20,000 in credit card debt, she decided it was time to give up plastic for good.
Rozzi is among a number of consumers who choose to live without credit cards. Some 29 percent of 1,004 respondents ages 18 years old or older to a 2010 poll by CreditCards.com said they did not own a credit card - around a 10 percent jump from the number of respondents who reported having no credit cards in 2009. For many people, saying goodbye to credit cards helps them stay out of debt and take more control of their finances.
Without thousands of dollars of credit at her disposal, Rozzi no longer makes purchases with money she doesn't have. Today she pays for most items with cash and spends less. She says cash transactions make her think twice before making a purchase - significantly reducing her propensity for impulse purchases. A 2008 study led by Priya Raghubir, a professor of marketing at New York University, reinforced evidence from earlier studies that consumers tend to spend more money when paying with credit cards than they do when paying with cash.
To read the entire article from Daniel Bortz | U.S.News & World Report LP:
http://finance.yahoo.com/news/could-live-without-credit-card-133440415.html
Wednesday, June 12, 2013
Tuesday, June 11, 2013
Personal Finance News Tuesday 6/11
Phil's Personal Finance Tip of the Day:
We're paying off our mortgage in less than 5 years
By Adam Hatter | Yahoo! Contributor Network
Why we're paying off our mortgage
Once we decided to remain in the house, we knew the sooner it was paid for the sooner we would be free from the shackles of debt; the sooner we would have the ability to use our money for more than just monthly bills.
We devised a plan to pay off the mortgage and "suffer" for a few years while our children were young. We figured while they were babies and toddlers we wouldn't want to have many adventures away from home (Disney with a 1- and 3-year old, no thanks) and they wouldn't require many high-dollar necessities (play dough and crayons provide nearly endless entertainment early on).
How we did it
To read the entire article from Adam Hatter | Yahoo! Contributor Network : http://homes.yahoo.com/news/paid-off-mortgage-less-5-years-230600500.html
I'm a great believer in luck and I find the harder I work, the more I have of it. -Thomas Jefferson
We're paying off our mortgage in less than 5 years
By Adam Hatter | Yahoo! Contributor Network
I am not a financial genius by any means. At times in my life, I've maxed out all available credit and found myself in debt up to my eyes. But as of June 7, 2013, my wife and I are mortgage-free. That's four years and 10 months from the day we made our first payment.
Why we're paying off our mortgage
Shortly after being married in 2006, my wife and I had a new home built less than 10 minutes away from our jobs. We moved into our home in July 2008 and had our first payment due the following month. Our original mortgage was in the amount of $156,780 on a 30-year fixed-rate loan at 5.875 percent, which gave us a monthly payment of $927 (before insurance and taxes). This meant at the completion of our 30 years of dedicated payments we would have paid $333,868 (give or take) -- and $177,078 of that would go to the lender, just for having let us borrow money.
Initially we had no intentions of living in our home for more than a few years, so we only made the minimum monthly payments during the first year. The goal was to finish our attic and basement, build a deck, and then sell the home and downsize. But after the birth of our first child and deciding to have a second, we realized the house did meet our needs and we wanted to raise our children there.
Once we decided to remain in the house, we knew the sooner it was paid for the sooner we would be free from the shackles of debt; the sooner we would have the ability to use our money for more than just monthly bills.
We devised a plan to pay off the mortgage and "suffer" for a few years while our children were young. We figured while they were babies and toddlers we wouldn't want to have many adventures away from home (Disney with a 1- and 3-year old, no thanks) and they wouldn't require many high-dollar necessities (play dough and crayons provide nearly endless entertainment early on).
How we did it
We pooled resources. This meant taking every penny made and concentrating that beam of liquidity in the direction of our mortgage debt. Our household income is quite average, but when we closely examined our finances, we found that we had much more than we were putting forth to pay toward our mortgage. I'm an analyst for a day job and of course I deal with numbers a great deal, so I created my own budget sheets and amortization charts. In the end, there were several contributing factors that helped us pay off our mortgage in less than five years:
To read the entire article from Adam Hatter | Yahoo! Contributor Network : http://homes.yahoo.com/news/paid-off-mortgage-less-5-years-230600500.html
I'm a great believer in luck and I find the harder I work, the more I have of it. -Thomas Jefferson
Monday, June 10, 2013
Personal Finance News Monday 6/10
Phil's Personal Finance Tip of the Day:
26 Secrets to Save on Travel
With airfares to Europe and Asia sky-high and high-seas breakdowns roiling the cruise industry, leisure travelers have plenty of reasons to put vacation plans on hold. But no need to restrain your wanderlust. We asked industry insiders and travel Web site editors to weigh in with their top tips and smartest
strategies for getting good deals — without the nightmare scenarios — on airfares, cruises, hotels and vacation packages. Whether you're on the prowl for a luxury resort that courts you with freebies or just want to qualify for priority boarding, you can use this advice to claim all the perks and conveniences typically reserved for the savviest travelers. Bonus: We also asked the experts for their favorite value destinations. Airfares
Air travelers have hit some turbulence this year. Air traffic controller furloughs led to thousands of flight delays in April. The attacks at the Boston Marathon likely contributed to the postponement of new rules that would have allowed previously banned items, such as hockey sticks and small knives, onboard planes. Skyrocketing airfares to Europe, due to high fuel prices and high demand, have made travel to the Continent even pricier. Plus, fees continue to rise: United Airlines increased its domestic change fee to $200, and American, Delta and US Airways followed suit. But you can still find good deals and avoid the crowds, especially if your plans are flexible.Read more at http://www.kiplinger.com/article/spending/T059-C000-S001-21-secrets-to-save-on-travel.html#WOhyLFkko9lqYM3u.99
I have no special talents. I am only passionately curious. - Albert Einstein.
Saturday, June 8, 2013
Personal Finance News Saturday 6/8
Phil's Personal Finance Tip of the Day:
10 High-Paying Blue-Collar Jobs
By Jacquelyn Smith | Forbes
We tend to associate hefty paychecks with briefcases, neckties and lab coats – but it turns out there’s plenty of money to be earned by those who sport hard hats and coveralls.
This may be surprising considering the gradual decline of union memberships over the years and the fragile state of America’s workforce, but plenty of talented and skilled blue-collar workers earn six figures doing electrical work, repair jobs, and other labor-intensive trades.
[More from Forbes: 8 Great Jobs That Don't Require A Four-Year Degree]
Forbes combed through data gathered annually by the Bureau of Labor Statistics, a division of the Labor Department, to find some of the highest-paying blue-collar jobs. The BLS culls its information from surveys it mails to businesses, and it releases its Occupational Employment and Wage Estimates data each spring. The figures are for 2012.
What defines a blue-collar job? The American Heritage Dictionary says, “Of or relating to wage earners, especially as a class, whose jobs are performed in work clothes and often involve manual labor.” We took that definition and excluded work that is largely managerial or supervisory to compile our list of 10 high-paying blue-collar jobs.
Some of the professions on our list require only a high school education, but many call for extensive training and apprenticeships that can last as long as four years. To become an elevator installer or repairer, for example, you must complete a four-year apprenticeship, says John Dalton, a field operations manager for the Stanley Elevator Company. “It can take up to four and a half years, including final exams, but once you get your license, you’re really qualified to do it all.”
Dalton says elevator installers and repairers are well-rounded trade workers who never stop learning.
“There is always a new set of obstacles, a new set of opportunities, and the equipment is always changing. I’ve been in the business for 16 years, and I’m still learning.”
To read the entire article from Jacquelyn Smith | Forbes :
http://finance.yahoo.com/news/10-high-paying-blue-collar-121049018.html
You can easily judge the character of a man by how he treats those who can do nothing for him. -James D. Miles
10 High-Paying Blue-Collar Jobs
By Jacquelyn Smith | Forbes
We tend to associate hefty paychecks with briefcases, neckties and lab coats – but it turns out there’s plenty of money to be earned by those who sport hard hats and coveralls.
This may be surprising considering the gradual decline of union memberships over the years and the fragile state of America’s workforce, but plenty of talented and skilled blue-collar workers earn six figures doing electrical work, repair jobs, and other labor-intensive trades.
[More from Forbes: 8 Great Jobs That Don't Require A Four-Year Degree]
Forbes combed through data gathered annually by the Bureau of Labor Statistics, a division of the Labor Department, to find some of the highest-paying blue-collar jobs. The BLS culls its information from surveys it mails to businesses, and it releases its Occupational Employment and Wage Estimates data each spring. The figures are for 2012.
What defines a blue-collar job? The American Heritage Dictionary says, “Of or relating to wage earners, especially as a class, whose jobs are performed in work clothes and often involve manual labor.” We took that definition and excluded work that is largely managerial or supervisory to compile our list of 10 high-paying blue-collar jobs.
Some of the professions on our list require only a high school education, but many call for extensive training and apprenticeships that can last as long as four years. To become an elevator installer or repairer, for example, you must complete a four-year apprenticeship, says John Dalton, a field operations manager for the Stanley Elevator Company. “It can take up to four and a half years, including final exams, but once you get your license, you’re really qualified to do it all.”
Dalton says elevator installers and repairers are well-rounded trade workers who never stop learning.
“There is always a new set of obstacles, a new set of opportunities, and the equipment is always changing. I’ve been in the business for 16 years, and I’m still learning.”
To read the entire article from Jacquelyn Smith | Forbes :
http://finance.yahoo.com/news/10-high-paying-blue-collar-121049018.html
You can easily judge the character of a man by how he treats those who can do nothing for him. -James D. Miles
Friday, June 7, 2013
Personal Finance News Friday 6/7
Phil's Personal Finance Tip of the Day:
‘Real Money’: Save Money On Your Daily Commute
ABC News’ Paula Faris reports:
California newlyweds Rob and Lisa Oshima are trying to save money to start a family. But like so many of us, they’re spending too much time and money commuting.
Rob drives 20 miles one way from his home in Orinda, Calif., to his job in San Francisco. It takes him about two hours one way and costs $100 a week. Lisa travels 40 miles to her job in Palo Alto, which adds up to $80 a week. Together, their commuting costs come out to $720 a month.
The Oshimas aren’t the only ones suffering the price of long commutes. Each day, 600,000 Americans travel at least 90 minutes and 50 miles to work with 10.8 million Americans traveling an hour each way, according to the 2013 Census. The average household spends almost $3,000 a year on gasoline, according to the U.S. Energy Information Administration.
But does it have to cost so much? Alex Bayen, a transportation expert and associate professor of systems engineering at U.C. Berkeley, says no. There are secret commuter shortcuts that can help you save.
Tip 1: Change your driving habits. You can save big on your bottom line with a gadget called Automatic. It plugs into your car, tracking your driving and alerting you where you’re burning the most fuel and what easy changes you can make to save the most money.
To read the entire article from ABC News’ Paula Faris :
http://abcnews.go.com/blogs/business/2013/06/real-money-save-money-on-your-daily-commute/
Ninety-nine percent of the failures comes from people who have the habit of making excuses. -George W. Carve
‘Real Money’: Save Money On Your Daily Commute
ABC News’ Paula Faris reports:
California newlyweds Rob and Lisa Oshima are trying to save money to start a family. But like so many of us, they’re spending too much time and money commuting.
Rob drives 20 miles one way from his home in Orinda, Calif., to his job in San Francisco. It takes him about two hours one way and costs $100 a week. Lisa travels 40 miles to her job in Palo Alto, which adds up to $80 a week. Together, their commuting costs come out to $720 a month.
The Oshimas aren’t the only ones suffering the price of long commutes. Each day, 600,000 Americans travel at least 90 minutes and 50 miles to work with 10.8 million Americans traveling an hour each way, according to the 2013 Census. The average household spends almost $3,000 a year on gasoline, according to the U.S. Energy Information Administration.
But does it have to cost so much? Alex Bayen, a transportation expert and associate professor of systems engineering at U.C. Berkeley, says no. There are secret commuter shortcuts that can help you save.
Tip 1: Change your driving habits. You can save big on your bottom line with a gadget called Automatic. It plugs into your car, tracking your driving and alerting you where you’re burning the most fuel and what easy changes you can make to save the most money.
To read the entire article from ABC News’ Paula Faris :
http://abcnews.go.com/blogs/business/2013/06/real-money-save-money-on-your-daily-commute/
Ninety-nine percent of the failures comes from people who have the habit of making excuses. -George W. Carve
Thursday, June 6, 2013
Personal Finance News Thursday 6/6
Phil's Personal Finance Tip of the Day:
6 Costly Retirement-Saving Setbacks
Scenario 1: Your path to retirement is wide, gently sloped, paved with good intentions and free of potholes—including market declines, job loss and health problems.
Scenario 2: Your path to retirement is steep, littered with obstacles and fraught with perils, including procrastination and the temptation to raid your accounts to finance other pressing priorities.
Unfortunately, scenario number two is more likely. In a new survey by Ameriprise Financial of people ages 50 to 70, virtually all of the respondents said they had experienced at least one retirement derailer, and more than half said that it had seriously affected their retirement savings. The average amount lost or forgone: $117,000. A poll of Kiplinger's readers showed similar results.
You can't stop life from knocking you off your feet, but you can plan for the unexpected and move forward after the inevitable hard knocks.
Read more at http://www.kiplinger.com/slideshow/retirement/T047-S002-6-costly-retirement-saving-setbacks/index.html#4WFiV32r5w5RXqy2.99
If you'll not settle for anything less than your best, you will be amazed at what you can accomplish in your lives. - Vince Lombardi
Wednesday, June 5, 2013
Personal Finance News Wednesday 6/5
Phil's Personal Finance Tip of the Day:
Malware That Drains Your Bank Account Thriving On Facebook
By NICOLE PERLROTH | New York Times
In case you needed further evidence that the White Hats are losing the war on cybercrime, a six-year-old so-called Trojan horse program that drains bank accounts is alive and well on Facebook.
Zeus is a particularly nasty Trojan horse that has infected millions of computers, most of them in the United States. Once Zeus has compromised a computer, it stays dormant until a victim logs into a bank site, and then it steals the victim’s passwords and drains the victim’s accounts. In some cases, it can even replace a bank’s Web site with its own page, in order to get even more information– such as a Social Security number– that can be sold on the black market.
The Trojan, which was first detected in 2007, is only getting more active. According to researchers at the security firm Trend Micro, incidents of Zeus have risen steadily this year and peaked in May. Eric Feinberg, founder of the advocacy group Fans Against Kounterfeit Enterprise (FAKE), has noticed an uptick in Zeus-serving malicious links on popular N.F.L. Facebook fan pages such as one created by a group called “Bring the N.F.L. To Los Angeles.”
To read the entire article from NICOLE PERLROTH | New York Times:
http://finance.yahoo.com/news/malware-drains-bank-account-thriving-004702493.html
Don't wait. The time will never be just right. -Napoleon Hill
Malware That Drains Your Bank Account Thriving On Facebook
By NICOLE PERLROTH | New York Times
In case you needed further evidence that the White Hats are losing the war on cybercrime, a six-year-old so-called Trojan horse program that drains bank accounts is alive and well on Facebook.
Zeus is a particularly nasty Trojan horse that has infected millions of computers, most of them in the United States. Once Zeus has compromised a computer, it stays dormant until a victim logs into a bank site, and then it steals the victim’s passwords and drains the victim’s accounts. In some cases, it can even replace a bank’s Web site with its own page, in order to get even more information– such as a Social Security number– that can be sold on the black market.
The Trojan, which was first detected in 2007, is only getting more active. According to researchers at the security firm Trend Micro, incidents of Zeus have risen steadily this year and peaked in May. Eric Feinberg, founder of the advocacy group Fans Against Kounterfeit Enterprise (FAKE), has noticed an uptick in Zeus-serving malicious links on popular N.F.L. Facebook fan pages such as one created by a group called “Bring the N.F.L. To Los Angeles.”
To read the entire article from NICOLE PERLROTH | New York Times:
http://finance.yahoo.com/news/malware-drains-bank-account-thriving-004702493.html
Don't wait. The time will never be just right. -Napoleon Hill
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