Best of Blogs for November 30th

Every Friday afternoon I share some of the more interesting or notable posts that I have seen in the personal finance blogs and other sources for the past week

PlanetMoney shares Household Debt In America, In 3 Graphs
they also point out that No, Switching To Dollar Coins Would Not Save The Government Money
I was skeptical about that statement at first.   $1 coins were supposed to be cheaper to make in the long run since they last longer.  But that benefiit as appearntly recently disappeared since the dollar bill production was improved and now bills last longer.  Still the government would benefit financially from $1 coins only due to putting out more coins than dollars and some resulting savings on the governments interest debt.  Its complicated.



I found this interesting article on How to Price Your Home For Sale – Critical Information!
by Amanda Duffy a Realtor in Georgia.   Theres a Youtube video.  

Apex continues the rental series at FMF with Real Estate 101: The Lease

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$650 in Dell Gift Cards for $450 Net

If you're thinking of a computer purchase from Dell here's one way to use your Amex card and Twitter to get $200 off..     Amex and Dell have a deal right now where you can get a $150 credit on your Amex if you spend $599 or more at Dell.com using your Amex card.   Theres also a 10% off coupon code you can use.


1. Synch your Amex card with the Dell deal via twitter and tweet the hashtag #AmexDellOffer following their instructions
2.   Buy a $500, $100 and $50 gift card and then apply the coupon code  VJ7$295NPV28MN to get 10% off the $500 card for a total cost of $600. 
3. You should get a $150 credit from Amex. 
4. Consolidate your gift cards online into one card if desired.

In the end you bought $650 of gift cards for $600 and got $150 back so the net cost is $450.   You can then turn around and use the $650 of gift cards to buy whatever you want at Dell.    Buying gift cards allows you to get $50 extra off via the coupon code. 

I saw this at Fatwallet and they have more details and discussion in the forum there.

I have not done this myself.   If you do it then I'd recommend you read up on all the details to make sure you're doing it right and not missing any details.
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Learning the Basics of Term Life Insurance

This guest post was composed by Lauren of Mozdex.com. For more articles like this one you can visit her website http://www.mozdex.com/ 

Are you considering purchasing life insurance, but you aren’t sure what type of insurance coverage you should purchase? Although there are several different types of life insurance policies out there, most people find that the best option is term life insurance.

What is Term Life Insurance?

In short, term life insurance is a temporary form of life insurance coverage. Unlike whole life insurance, which remains in place until the die the policyholder dies or stops making premium payments, term life insurance only lasts for a pre-determined amount of time. The length the policy remains in place is up to you, as you will take out a policy for a pre-determined amount of time. This doesn't mean that you can't extend the length of coverage, however, as most term life insurance policies do offer this option to their policyholders.

What are the Benefits to Term Life Insurance?

The primary benefit to getting term life insurance is that this type of policy is far less expensive. Families on a budget have been able to afford the minimal expense for term coverage.  This is ideal for most people with young children or large amounts of short term debt. After all, most people purchase a life insurance policy in order to make certain their dependents are cared for after they pass away. As such, it generally isn't necessary to have coverage in place after the children are grown and out of the house.

How Much Term Life Insurance Coverage Do I Need?

Just as with whole life insurance, you can reduce your term life insurance premium costs by reducing the amount of coverage that you have. At the same time, you want to make sure to have enough coverage in place to take care of your loved ones after you pass.
The best thing to do is a make a list of your monthly expenses, totaling up how much is going out each month. Now subtract that number from the total monthly income for you household. Once you determine what is left over, determine how much of that money needs to go into savings, and figure out what is comfortably left over to devote to life insurance premium.  Now that you know what you can afford to spend each month visit an online life insurance calculator to determine how much coverage that amount of money can buy you.

The amount of coverage you need is dependent upon a number of factors, you should consider the amount of income that will be lost if you pass, the amount of debt you have, and whether or not your spouse is employed. The more dependent your loved ones are upon your income, the more important it is for you to have a substantial amount of coverage in place.


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Black Friday Violence is Statistically Likely

It seems like its developed into an annual tradition on Black Friday that we get to see some video footage of a violent stampede at Walmart during Black Friday.   The incidents of fighting or stampedes or other violence around Black Friday are held up as evidence for why Black Friday is bad.   There are articles like Black Friday Fights: Violence Plagues 2012 Shopping Day, Videos Surface Online   When such violence occurs the annual shopping day is blamed as the cause of the violence.   But in the larger picture one or two violent incidents during Black Friday are really not that bad, in fact I'd say if thats all that happened then its actually pretty good.   Let me explain...

According to the FBI crime report "In 2011, there were an estimated 751,131 aggravated assaults in the nation."   That means that on an average day in the US there were 2,057 assaults.  

The National Retail Federation reports that about 88 million people went shopping in stores or online on Black Friday.   They don't clearly break apart who shops in stores versus online, but it seems at about half or more the people shop in stores.   Lets estimate then that 40 million people are in the stores.   Thats about 12% or so of the US population.    If they only spent 1 hour in the store at least then thats about 6% of their waking hours spent shopping.

Based on the daily average of 2,057 assaults and a guesstimate of about 40 million people spending an hour in stores on Black Friday then if assaults are proportional to time across the population I'd expect we'd see about 15 assaults among Black Friday shoppers just based on statistical averages.   I'm sure people spend more than 1 hour shopping though so it would likely be higher.

I bet you that ever day in the country we have 10 times as many people assaulted in our nations bars and taverns.   But thats not news.  Yet one punch thrown in a Black Friday brawl is sure to be highlighted in the 11 o'clock news all around the country.   

Large groups of people in crowded conditions can be a risk factor for increased rates of violence.  Assaults at sporting venues are common place.   Anaheim stadium was bragging that it is safe and they only had 15 simple assaults last year during Angels games.   Attendance at Angles games for a season is about 3 million. (less than 10% of the Black Friday shoppers)  Sports stadiums can be a particularly bad place for violence particularly if you add alcohol which is often sold in stadiums.   But its not just drunk sports fans, any large group of people can see violence.   I can even find many instances of assault in churches. 

Get enough people together in crowds and unfortunately some amount of violence is almost inevitable.   Its unfortunate but it happens, whether its the shopping mall, your local bar, a rock concert or a mega church.  But none of its unusual to Black Friday.

Don't be afraid of Black Friday violence.    You're probably more likely to get punched at a baseball game.

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FREE - Christmas MP3s from Amazon

Amazon has a few free Christmas MP3s :

Follow the link : Free Must-Have Christmas Masterpieces

 Songs include Jingle Bells, Nutcracker Suite - Waltz of the flowers, Gloria in Excelsis deo and Silent Night, Holy Night.

No catch, just free music.   Probably expires soon.


I saw this one on Fatwallet

 -- This article may contain referral links which pay this site a commission for purchases made at the sites.

Entertainment books for $12.50 after Ebates

Right now Entertainment.com coupon books are on sale for $25 with free shipping.    Plus you can get 50% cashback via Ebates

The $25 price for Entertainment coupon books  expires 11/29.   The 50% cashback from Ebates may expire after today.  I'm not sure but that 50% rate may be a Cyber Monday special rate.

Make sure to check out the Entertainment website to make sure the coupons are really a good deal for your area and your shopping needs.  A lot of the coupons are buy-one-get-one-free type offers for restaurants I'm not interested in, but there can be some great deals mixed in.

Or you can wait until the summer and they'll run sales to drop down the price to $5 to $10.    I pointed this out before and then in 2012 the prices dropped steadily down to as low as 2 for $8.25
HOWEVER, one gotcha with waiting till the summer is that some coupons expire earlier.  It may be worth your while to pay $12.50 today.

To get the cash back you need to be signed up with Ebates.  Then simply go to Ebates to get the referral to the the store before you do your shopping.  I also get a referral bonus if you use my links to sign up with Ebates.

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This article may contain referral links which pay this site a commission for purchases made at the sites.

Best of Blogs for Week of November 23rd

Every Friday afternoon I share some of the more interesting or notable posts that I have seen in the personal finance blogs and other sources for the past week.

edit : Oops... I was out after Thanksgiving and this mostly empty draft post got published by mistake.  -- Jim
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Want to Retire Before 60? Better Not Make These 7 Mistakes

This is a guest post from Hannah who helps run the website, Howmuchisit.org-- A great place where you can find the prices on just about anything!

Retiring at the age of 60 seems like a pretty good plan. That is, if you’re able to prepare very well for it. Without you realizing it, the things that you do today make up the kind of retirement you will be having in the future as well as declaring what age you will have the luxury to experience it. Since you don’t want to be 75 and still working, here are some of the mistakes you need to avoid.

Never Be Too Complacent
When it comes to living life, you have been told many times over that it’s important to live it to the fullest so no matter how difficult it might be at times, remember that working hard now will you enough benefits especially when you’re old and can no longer work.

Never Assume
Again, when it comes to living life to the fullest, never make the mistake of assuming that you are invincible. True enough, you’re young at the moment and you most likely feel very healthy but many years from now, this wouldn’t be the case. So you better watch what you eat now and exercise regularly if you want a peaceful retirement when you’re 60.   Remember that money isn’t everything when it comes to retirement!  You have to think about your health as well.

To Save or Not to Save?
Most young people think that saving should only be done when they’re nearing the finish line. But just imagine if you’re already 50 and without any savings in your bank account? Do you think you will be able to retire at 60? Probably not! In fact, it might take you 30 more years to save up on the money you’ve wasted when you were younger.   Remember, the earlier you start, the less you will have to save.  If you haven’t done so already, it’s so important that you read about compounding interest.

Retirement Plan
A lot of people do not take retirement plans seriously when they are younger because they think that it will take them the next 40 years to take advantage of its benefits. But what if those 40 years are happening tomorrow and you didn’t get a retirement plan? Chances are, you will be lost after you retire.   There are so many simple retirement plans out there that you can take advantage of that you don’t even need to know a lot about.  For example, investing in a simple index fund can yield an attractive 8% for years.  If you don’t feel safe investing, it never hurts to get some advice from trusted financial advisors or even a close family member or friend.

Open Your Own Business
A lot of people who do not work as slaves for their employees, find it very easy to retire at a young age. So if there is a chance for you to put up your own business, make it a point to consider this option while you are young because it will do you good later on in life.   Yes, businesses are going to take work, but wouldn’t be great to never have a cap on your paycheck?  If the thought of making as much as you want sounds appealing, you may want to consider taking this step while it’s not too late.

Have Kids
As ironic at it may sound, having children at a young age, considering the fact that you’re ready to raise them can help you retire at a young age. When your children become grown-ups and they start earning their own money, you can finally retire and enjoy your life with them taking care of you.

Smile

Having a positive mindset in reinforcing in yourself that you will retire before or when you’re 60 is a good way of turning this dream into a reality so remember to remain positive about it no matter how it tough it gets at times.


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Happy Thanksgiving

Happy Thanksgiving!

Photo by stevevoght

Harvard is Cheaper than University of California Davis (for many)

You'll often see people discussing the high cost of college and while doing so people seem to quote the most expensive colleges.   There are a lot of private schools that cost over $50,000 total for tuition, fees, room and board.    But thats just the sticker price.    When looking at colleges its important to look at the financial aid availability as well and take that into consideration.

Most students get financial aid at most schools.    Some schools have a lot more financial aid money available than others.    You should also look at the amount of aid that comes in the form of grants versus how much is in student loans.   Loans don't really reduce your cost they just help you finance the education.   You pay that money back in the end.    Its not really a great deal if a school facilitates you borrowing a lot of money to give to them.  Now this is not to say that I think student loans are a rotten deal, in fact I think they are often a good tool when used in moderation.  However when you're comparing school costs I'd focus on the free money.


To get a better sense of the true cost of  a university I'd instead look at the net cost by figuring :

Net cost = Total cost - average grant aid

So lets say you happen to live in Georgia and you're comparing Harvard with U.C. Davis.   I doubt many Georgia residents make this comparison but I picked Harvard since its representative of an expensive elite private school and I picked U.C. Davis since its just a 'typical' public university.  

Cost of attendance for Harvard is $54,496.

Lets look at the financial aid stats for Harvard from the College Prowler site

81% of students got average aid of $32,850
11% of students had loans of $4,656 average

For all Harvard students that amounts to $26,608 of aid which includes $512 in loan money.

On average Harvard students get $26,096 in free aid money.

The net amount out of pocket for Harvard students on average is $28,400

Cost of attendance for UC Davis is $54,077 for out of state students.

Financial aid stats for UC Davis

77% of students get aid averaging $12,574
47% of students had loans average of $5,259

Average total aid per student was $9,681 and $2,471 of that was loans, so net free aid per student was $7,210.

Net amount out of pocket for an out of state student with average aid amount would be $46,867


You might have figured that this is a contrived example cause I'm looking at the out of state cost for UC Davis which is a lot more than the resident tuition rate.   The out of pocket average cost for CA residents is $23,989.   Thats cheaper than Harvard, however its probably not much cheaper than most people would have guessed.    But I'm trying to make a point here and this example illustrates it.

Bottom Line:   Don't look at just the sticker price on colleges, make sure to also figure in the amount of financial aid grants available to students to find the real costs.



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FREE- 8x10 photo print at Walgreens

Currently theres a promo deal to get a free 8x10 single photo print at Walgreens.  (not valid for collage)



Order a print online and use free promo code FREE2THANK and then select in store pickup to avoid shipping.   Deal expires November 24th.   

I found the deal on Slickdeals
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Average Effective Income Tax Rate by Age Group

I saw an article on Yahoo recently where the author claimed that Uncle Sam was "taking 15 to 25 percent of the average retiree's income".   I knew that wasn't the case.   The author probably meant the marginal tax rates but the way they worded that it sounds like they think effective tax rates are 15-25%.    Thats certainly not the case.
 
So what are the effective tax rates for seniors?   What about other age groups?

Well I had to figure the numbers based on # of filers and their total incomes and total taxes paid per age group.

TaxFoundation has a page which gives all the data for 2009, they just got it off the IRS site.

Effective Income tax Rate per age group for 2009 : 

All returns	12%
Under 18	8%
18 under 26	5%
26 under 35	9%
35 under 45	12%
45 under 55	14%
55 under 65	15%
65 and over	13%

This includes all filers in each age group.   Some people didn't have to file and its looking at the Adjusted Gross Income.

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Best of Blogs for Week of November 16th

Every Friday afternoon I share some of the more interesting or notable posts that I have seen in the personal finance blogs and other sources for the past week.

fivecentnickel points out you can now Get Amazon Prime on a Monthly Basis

Vanguard tells us about The 'noise' to avoid: A lesson from the muni non-crisis

Apex continues the series on rentals with Real Estate 101: Managing The Property

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Home Insurance Bills Out of Control? 5 Reasons It's Time to Switch Providers

This is a guest post from Tracy Myers who is a former real estate agent and current contributor to the blog at homeinsurance.org where she keeps readers up-to-date with home security, insurance and DIY tips. Tracy loves hearing from her readers and welcomes your comments below!

We all need home owners' insurance. If you're taking the financial plunge to purchase or mortgage a home, you of course want to be sure that those assets are protected. The problem with insurance coverage, though, is that we tend to stick with it, even if it's not giving us exactly what we need. Whether it's avoidance of the hassle of a switch, or an assumption that the longer you stay with a company, the better your benefits will be, there are plenty of excuses for staying on a policy that is starting to become a pain. If your premiums have increased to the point that you are worrying about your finances, or if you feel like you deserve better rates than you're getting, there is no reason not to consider the possibility of changing providers. Here are some of the top signs that it may be time to let your current insurance plan go:

1. You're uncomfortable raising your deductible any higher.
One of the first things most customers look to (and, not surprisingly the first things suggested by insurance companies when you inquire about lower rates) is raising your deductible. Raising your deductible even a few hundred dollars can have an impact on your monthly payments, and raising it a thousand dollars or more can make a big difference. But, you maybe, and most likely are, already at the point where raising your deductible and higher would be too much of a financial risk. If you don't feel your savings are equipped to take a couple thousand-dollar hit in the event of an insurance claim, then raising your deductible is not in the cards. In this case, looking to other providers may be a better option.

2. You insurance company has you packaged with provisions you don't need.
If the ultimate excuse your insurance company keeps coming up with is that you are bundled in a package that cannot be changed without switching to a more expensive plan, then it may be time to look elsewhere. There is nothing wrong with providers that package deals; it is the way most businesses function. But, if you find that you are paying much more than you really need to for options that don't fit with your home, then you are simply letting money fly out the window. One or two options that are not absolutely necessary are fine. More than that, and you deserve to check into packages that suit your needs.

3. You ask about discounts to no avail.
One way to lower premiums is to ask about discounts. There are many discounts provided by some insurers for anything from adding better home security to being a sage driver. But, if your insurance company somehow comes up dry every time you ask to lower your premiums, then you could be getting a bad deal. Your insurance provided should want to keep your business. If they are not equipped to negotiate policies, then they may be difficult to deal with in the event of a real emergency.

4. Newer companies are offering sign-up rewards.
You may be hesitant to go with an insurance provider that is less well-known than yours. Or you may be wary of insurance deals that you see on TV or hear on the radio. But, there are good reasons behind these deals, and they are usually simple marketing techniques to attract new customers. If a different insurance company is offering a deal on a policy that is much better than your current one, there is no reason not to look into it.

5. Customer service is typically rude, ineffective, or slow.
You never know exactly what you're going to get when you call customer service most of the time, especially if you're dealing with a national corporate insurance provider. There are simply times when you get on the phone with someone who is having a bad day or with an employee who seems to have no idea what's going on. This is normal. But, if you find yourself constantly grappling with customer service, never feeling heard, and rarely having problems attended to in a timely manner, then that is a bad sign. Things like constantly rude, ineffective, or slow customer service employees are a sign of something wrong within a company. Attitudes and work environments trickle down from the top, so if you can never get any help from where you are, look for a company that makes sure customer service is spot-on.
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Suze Orman is WRONG about 401k loan Double Taxation

In a recent episode of her show Suze Orman doubled down on her claim that 401k loans are subject to double taxation.  She said that many people had written to her to tell her she is wrong but she arrogantly brushed it off and declared that she's right and everyone else is wrong.   In her stubborn refusal to admit any wrong Suze even condescendingly assumes that anyone arguing against her is just trying to rationalize their own use of 401k loans.  

I'm here to tell you that  Suze is wrong about this pure and simple.   I do not have a 401k loan nor do I plan to take out a 401k loan.

You are not subject to additional taxes and your tax bill does not increase as the result of a 401k loan.

You are not subject to additional taxes and your tax bill does not increase as the result of a 401k loan.

I said that twice cause its important.

There are various explanations on the web about why Suze is wrong and there is no double taxation.  

Note : I'm not saying 401k loans are a good idea in general.  Usually you should avoid taking a 401k loan.    The point I'm making is simply that the 401k loan does not amount to double taxation.  


I think the best way to illustrate how there really isn't any double taxation is to compare the actual taxes paid on a 401k with and without a loan.   If you have double taxation from the 401k  loan then your taxes should be higher right?   It isn't.

Lets look at 2 scenarios:

4% loan rate and 8% investment growth

Let it sit -
I have $25000 in my 401k today.   I do nothing at all and let that money sit in my 401k for the next 25 years.  With annual compound growth of 8% the balance will grow to $171,211.   In 25 years lets say that my marginal tax rate is 20%.   I pay taxes of $34,242.

Take a loan-
 I have $25,000 in my 401k.  I decide to take out a loan for $10,000.   I pay 4% interest and pay back the principal in 1 year.  The other $15,000 sits in the 401k and makes 8% interest for that year.  At the end of the year I've got $15000 x 108% + $10,000 x 104% = $26,600.   After 24 more years of 8% compound annual growth my balance is now $168,675.   In 25 years my marginal rate is 20% so I pay taxes of $33,735.

If I let my money sit it grows at 8% and I end up with $171,211 and a tax bill of $34,242.   If I take out a loan my money grows slightly slower and I lose compound growth after that so I only get $168,675 and a tax bill of $33,735.   In this fairly realistic example I actually end up paying lower taxes in the end due to the 401k loan, simply because borrowing away from my retirement under cuts its growth.

4% loan rate and 4% investment growth

Lets look at another example and assume that the money grows at 4% so its equal to the 401k loan rate.

Lets say I've got $20,000 in my 401k and I'm 55 years old.   I let it sit and it grows at 4% a year.  In 10 years I retire and I've got $29,604.

Instead lets say I take out a $10,000 loan and pay it off at the 4% rate.   At the end of 1 year I pay off the whole loan and then end up with $20,800.   Then after 9 more years I have the same $29,604 balance.  

In both of these cases my actual tax bill is going to be the exact same amount since the 401k balance is exactly the same and will be subject to the same tax.

Why is Suze wrong?

Apparently Suze is just playing a stupid shell game with your dollars.   She claims that since you repay your 401k loan with after tax dollars and then have to pay tax on the 401k after you withdrawal the money that this amounts to double taxation.    But theres a couple big flaws with this logic.  
#1 you have to pay income tax on your income whether or not you have a 401k loan so that money is already taxed no matter.   401k loans don't cause income taxes.
#2 she appears to ignore or at least doesn't mention the loan withdrawal you receive from the 401k.  when you take out a loan you are handed money which has no taxes on it.   So if I borrow $10,000 then immediately turn around and repay that $10,000 then its all untaxed money.   The only out of pocket money here is the interest you pay.  

I'm not the first to write about this and I probably won't be the last as long as Suze stubbornly obstinately sticks to her claim.

Heres at least two other people pointing out how she's wrong: 

The financial buff wrote :  401k Loan Double Taxation Myth
MyMoneyBlog covers it with Double Taxation and the Real Reasons 401(k) Loans Are Bad
and Better Example Against Double-Taxation Of 401(k) Loans




Plus of course the numerous people who apparently wasted their time to send her emails to point out she's wrong.  


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Example $100 / month Grocery Budget for One

In a comment on an old post Surviving on Minimum Wage? : An Example Budget a reader Nightvid challenged me to come up with a $100 / month food budget.    A while ago I did an  Example $5 / day Grocery Budget for One  but that was $150/month.    $100 a month is a bit more of a challenge.   But its still feasible :



Here is an example weekly food shopping list that comes out to $100/month:

1.5 gallon of milk
1 box cereal
1 loaf bread
2 cheese
7 bananas
3 frozen dinner
1 12oz pasta
1 mac n cheese
1 ramen
1 hot dogs
1 hot dog buns
0.5 peanut butter
6 eggs

Total cost is = $98.56 / week

You can throw in another buck or two to buy some condiments once in a while.


This comes out to 2503 calories, 15.1% protein

The example list is heavy on pastas and pretty light on fruits, veges.  Someone could adjust to suit.   You'd want to mix things up as well as I'm sure people don't want to eat the same stuff every week.   I'm sure you can find fault with this shopping list, it isn't necessarily that healthy and I'm sure some people will object to the food choices.   The idea isn't to get the perfect menu, but just to show an example shopping budget for a relatively low cost diet.

The prices are just off Safeway retail prices.  I didn't shop around.  No coupons used.  I used generic store brands across the board.   If you shop around or use coupons or shop for sales you can undoubtedly get cheaper prices on average with some effort.

I'm not saying that you should want to limit your grocery spending to $100/month.  But if money is tight then you could do so.

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Visualizing the "Fiscal Cliff"

An actual cliff.

So we're hearing a lot in the news lately about the so called "fiscal cliff" that the USA is driving towards with the pedal* to the metal.   So what is this "fiscal cliff" all about?    Simply put its the tax changes that are due to take effect in 2013 if congress doesn't act.   The Bush tax cuts will end, the temporary reduction in payroll taxes of 2% of income will end, ATM patches will end (yet again) and some other changes will come as well.   Some of the impact will be in increased taxes and some will be in decreased spending.

How bad is this 'cliff'?    Is the USA going to grind to a halt as our nation plummets down an abyss and then bursts into a fireball when it hits the ground?   Thats how going over a cliff works right?

The Camber of Commerce site has what they call 'A visual Breakdown' of the Fiscal Cliff.   Not exactly the visual I was wanting, but its a start.  They list the different tax and spending changes that are set for 2013.    I count up $384B in tax increases.

How does that amount compare to the federal tax revenue over previous years?

Here is the cliff as I'd visualize it :

This cliff looks more like a weak speed bump to me.

Now I am only looking at the revenue side.  There is also some impact to spending side.   But I think thats even much less dramatic.  Cutting spending from expected $3.7 trillion to a mere $3.6 trillion doesn't seem like much of a big deal.


Photo By Elsie esq.

* edit, fixed a spelling error.  I knew that 'petal to the metal' didn't look right.
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Best of Blogs for Week of November 9th

Every Friday afternoon I share some of the more interesting or notable posts that I have seen in the personal finance blogs and other sources for the past week.


PlanetMoney points out that Foreclosures Are Falling In States Where It's Easy To Foreclose

PlanetMoney also has Old People Versus Babies, In One Graph
which has a widget that shows the demographic shifts for various countries over 100 years from 1960 projected to 2060

Moneybox says You Should Move to Minneapolis

MyMoneyBlog has a tip for Costco members who have Amex cards : American Express Facebook Promotion – $25 off $100 at Costco, More

Apex continues the rental discussion with Real Estate 101: Keeping Good Tenants




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Cutting Credit Debt by Cutting Back

This is a guest post from Stella Walker who is a regular contributor to several finance websites, such as www.CreditScore.net, Stella Walker uses her knowledge of economics, consumer trends and budgeting to help readers better understand their own personal finance issues. Feel free to leave your questions and comments for her below!

It can happen to the best of us.

One swipe here, two swipes there and before you know it, you’ve racked up a pretty hefty credit card balance. When the statement arrives in your mailbox, you panic. There’s no way you can pay down the balance in one month…or two…or three. This is the point where a lot of people fail. Instead of vowing to cut back on expenses for the next few months to pay off their credit balance, they maintain a “business as usual” mentality. But if you really want to pay off that debt quickly, you’re going to have to make small, temporary sacrifices.

Besides the fact that it is just a good habit to keep, paying off your credit debt as soon as possible helps save you money in interest payments and keeps your credit score strong. If you have a list of excuses for why you can’t pay down your balance quickly, that either means you have truly spent beyond your means or you’re not trying to find a way to reallocate money towards paying off your balance. Throw away that list of excuses and start planning how to pay off your credit debt today. Below is a short list of simple advice to facilitate your credit debt elimination goal.

•    Postpone your monthly beauty appointments: On average, women spend $125 every month to get their hair cut and styled, their toe nails cleaned and painted and their eyebrows waxed. These are all things that we can either do ourselves at home or postpone for a few months with no damage to our appearances. If you were to cancel every beauty appointment for three months, you could save hundreds of dollars that can go towards paying down your credit card balance.

•    End your cable television contract: If you have a cable television contract that is nearing its end, consider not renewing. Most households spend around $100 every month for basic cable, but with services like Netflix, you can still have access to TV shows and movies by streaming them from the internet to your television screen. Some services are free and some cost as little as a few dollars per month. By getting rid of cable, you will save hundreds of dollars over time, and that’s money that can be put to better uses, like paying off your credit cards!

•    Cut back on guilty pleasures: Everyone has a vice when it comes to spending. Something we buy a lot of every week, even though we know we don’t really need it. For many Americans, that vice is alcohol. By going to happy hour every day after work or drinking a bottle of wine (or two) with every dinner, it is possible to spend between $50 and $150 every week on booze. That’s hundreds of dollars a month that we could be routing towards our credit card balances. Other vices include magazines, sodas and bottled water, deserts, cigarettes, clothing and eating out. Find a way to cut back on these unnecessary purchases, and you will suddenly find a lot more money in your bank account that can be used for credit card payments.

Admit it, all the above things you can live without. This is why it should be easy for you to sacrifice them for a few months while you keep the savings for paying down credit debt. Once you are in the clear, you can slowly begin to phase the above luxuries back into your life, but be careful to not veer down the same overspending road again. Otherwise, you will have to make these sacrifices all over again.




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Election Day Freebies

If you didn't notice, today is election day.   Several merchants offer free or discount promotional deals on election day.

You may need to show proof of voting for any of these deals. 

Yahoo has a list of election day promotions and freebies.   Not a lot of good stuff there, but I found one notable:

Uber car service is offering free rides to polling places to vote.    They're in several major cities.

Fatwallet thread has a long list of free stuff from fast food joints :

• Starbucks will give you a free 12-ounce coffee. They will give the coffee to anyone who asks for it.
• Krispy Kreme will give you a free star-shaped doughnut decorated with red and blue sprinkles
• Ben & Jerry's (5pm-8pm) will give you a free scoop of ice cream
• Chick-fil-A will give you a free chicken sandwich with an "I Voted" sticker
• Shanes Rib Shack will give you a free Vote America Meal with an "I Voted" sticker
• Daily Grill will give you a free appetizer with an "I Voted" sticker
• Eatn Park will give you a free coffee
• California Tortilla will give you a free taco with an "I Voted" sticker
• Olive Garden will give you a free dolcini with purchase of any entree and an "I voted" sticker
• Fox and Hound and Bailey's Sports Grille will give you a free appetizer with any purchase if wearing an "I Voted" sticker

I have not verified any of these, so it would be a good idea to check the individual companies to verify the deal.   Of course all the deals are only good today and some are more limited times.

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Who Gets Bonuses at Work?

I get a profit sharing style bonus at work as well as another bonus based on hitting our company's internal performance goals. You often hear of people getting bonuses at work but most employees do not get any form of bonus.   The BLS has data on nonproduction bonuses   The information is current as of earlier this year.

Forty percent of workers get bonuses of some sort.  Heres how the portion of workers getting bonuses breaks down for various kinds of bonuses:

All nonproduction bonuses	40%
Cash profit-sharing bonus	5%
Employee recognition bonus	4%
End-of-year bonus	9%
Holiday bonus	7%
Payment in lieu of benefits bonus	6%
Longevity bonus	4%
Referral bonus	5%
Other bonus	11%

The sum of the categories adds to more than 40% as some employees get multiple types of bonuses.

Management is most likely to get a bonus and 45% of managers do and only 25% of teachers on the only hand get bonuses.

46% of Full time employees get bonuses while only 23% of part time employees do. 

Only 37% of union employees get bonuses while 40% of non-union employees do.  I suspect that is do to the way the unions and the employers negotiate labor contracts.

Lower income individuals are less likely to get bonuses than people making more money :

Lowest 10% earners	22%
Lowest 25% earners	27%
Second 25 percent	40%
Third 25% earners	46%
Highest 25%	49%
Top 10%	52%

Do you get a bonus?  What type?

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Smart Insurance You Should Invest in

This is a guest article from Candice Ritler who writes for askforinsurance.com where you can learn about social security disability benefits at retirement age


Insurance is a safety net. You pay into the program every month, and they cover the bills if you have an accident, get sick or are sued. There are several different insurance programs to choose from, but here are the ones you should be sure to invest in.

Health Insurance for Long Life

Millions of Americans choose not to invest in health insurance. The non-partisan Congressional Budget Office estimates that four million Americans will refuse to acquire medical coverage in the year 2016. That number is currently higher, but it shouldn’t be. Everyone needs health insurance. It’s not just for when you have a virus and need antibiotics. Health insurance covers you if you’re in an accident, and it ensures that you will have coverage if you are diagnosed with a serious illness like diabetes or cancer.

Homeowner’s Insurance

What would you do if a tree fell on your house? How would you respond if the neighbor’s kid was seriously hurt while playing on your trampoline? Without insurance, you would be writing a check for damages and hospital bills. With insurance, however, you would call your agent and have the problem taken care of. Homeowner’s insurance protects your home and other structures on your property. However, it does more by protecting your assets in the event of a lawsuit filed as a result of injuries sustained on your property.

Auto Insurance to Protect Your Assets

Required by law in most states, this is another insurance that many people choose to forego. Like homeowner’s coverage, it protects your assets in the event of a lawsuit. The coverage levels vary, and the right coverage for you will depend on the age and value of your car and your personal assets. At minimum, you should carry enough liability insurance to shield all of your assets. You should also invest in uninsured motorist coverage to protect yourself against another driver who chooses to skip this coverage. MSN Money reports that 28 percent of the drivers in Mississippi have no insurance, and even states with better coverage levels like New York still have an uninsured driver rate of five percent. Protect yourself by investing in your own insurance coverage.

Long-Term Care Insurance in your Golden Years

Many seniors don’t want to be a burden to their children, but the cost of long-term care can leave your estate in shambles. Medicaid won’t kick in until your personal funds are depleted, and the government will take a look through your financial transactions of recent years to make sure you haven’t funneled money to a loved one. If disbursements were made from your estate in recent years, your family will have to pay money back. Avoid the drama and stress by investing in insurance that will cover your care. The younger you are when you purchase it, the more money you will save on monthly premiums.

These insurance plans are necessary for protecting your health, your home and your other assets. The premiums are surprisingly affordable, and you may be able to customize the coverage to fit comfortably within your monthly budget. They provide you with peace of mind, and they ensure that you will be able to stay on track financially.

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Best of Blogs for Week of November 2nd

Every Friday afternoon I share some of the more interesting or notable posts that I have seen in the personal finance blogs and other sources for the past week.


fivecentnickel says Organics for the Win: Why I Still Buy Organic Produce

GetRichSlowly discusses how to Bid for savings at an auction

Yahoo carried Meet the Wealthiest person in Each State

Apex continues his series on FMF with Real Estate 101: Finding Good Tenants
 
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Federal Taxes by Source 1934 to 2011

Today less than half of the federal tax revenue comes from individual income taxes.   Nearly a third of the revenue is from the payroll taxes for social security and medicare.   The rest is a combination of corporate, excise and other taxes.

I got the historical data from the White House Budget pages.   I pulled the numbers from the 2013 fiscal year budget and only used up to 2011 which is the latest full year of data (not including future estimates).

Here's how the tax revenues look going all the way back to 1934:

I'll also break it into the first few decades :

And the most recent 50 years :

I'll also show it in percentages of the whole :

Now all the numbers above are actual dollar values before looking at inflation or anything.   TO put these figures into perspective of the changing economy, lets look at the tax sources as percentage of GDP :

Putting it in relation to GDP makes the changes of the past 70 years a lot less dramatic.  

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