Helpful financial tips

[elgordoboy]

Make it faster than you can spend it

 

[Babyblue]

How Ironic.

The Oct. 2007 issue of "Boating Industry" magazine just arrived
and there on page 10 is the following:



"the majority of the American population falls into the "spender" category, and our economy is forever grateful. Spenders are not afraid to leverage and don't tend to wait to jump on a great deal or a possible opportunity. They will spend money without reserve and that is where things can become dangerous. Spenders may not look at all the factors involved, including whether or not they have the money to spend or if now is the time to spend it. They are usually very willing to use credit to get immediate gratification."


"The polar opposite of this is, of course, the "Saver." the saver tends to be responsible, stable and secure. These people often have cash available to use if they are convinced to invest it and, if they must finance, they usually qualify for excellent terms. Savers are often able to sail through setbacks and slow seasons without losing much sleep. After all, they are prepared.
The downside is that they may hesitate to jump on opportunities or wait until it is not such a good deal, and their returns can reflect this slow, small, albiet steady growth."




What is being discussed here is boat dealerships, but it all rings true for
individuals as well.

Find your own balance

Who read about a depreciating asset like a boat?

 

[spinDrAtl]

My parents and grandparents were very good about teaching us to plan for the future/outright planning for us.

Grandpa & grandma got us life insurance when we were little and our Xmas gift every year is that the premium is paid. Very cool present once you're old enough to realize the financial implications of it - not so much when you're 8 and they're telling you one day you can borrow against it for your first home or cash it in in an emergency etc!

I have to disagree with this. Life insurance for children is a bad 'investment', if it can even be called that. There is never a need to insure children with life insurance as life insurance is for replacing lost income. Typically the fees are high on that type of insurance and the 'investments' do not necessarily offer the options that may be best. The time for life insurance is when an adult is earning an income that would need to be replaced should something happen. Many financial planners do not even recommend life insurance for single income earning adults who have no families or dependents.

Better to invest in a no-load indexed mutual fund or set up a custodial account. Even something like buying shares of companies the children will understand - McDonalds, Hasbro, yadda yadda (throwing out names - do your own research) is way better than insurance.

Disclaimer: This is not financial advice, only my opinion. Do your own due diligence.

 

[beachmouse]

In terms of emergency funds, if you live down here or in some other hazard-prone area, keep the first $1,000 in an account where you can turn it into cash in less than 15 minutes' notice (ie. some sort of standard bank account where you can pull it out of an ATM) Because there may come a time when you really do need it that quickly.

 

[seaside2]

I agree about the life insurance for kids, etc. If you buy life insurance, by term life, not whole life and invest the difference. Shop the stuff on the net and you can get it for 30 ents on the dollar as compared to local agents.

Use due diligence in all that you do.

Don't let things just lay there, look at them constantly to make sure things haven't changed. React to those changes.

Leave information regarding your finances where a responsible party can deal with them if you are incapacitated. Durable power of attorney and all that.

 

[Beachbummette]

Always copy your credit cards, front and back, and keep them in a safe place (we put ours in a fireproof safe) in case you ever lose a purse or wallet.

 

[dsilvar]

"Upon reaching a financial comfort zone, spend on experiences...not "things."
said Shel....
Off to Australia for X'mas and New Year!!
Nice being at zero debt. Highly recommend it!

Of course I could be living on 30-A and be in debt!

 

[pmd8]

I try not to buy anything new. It saves money and helps reduce the use of our dwindling resources and the amount put into a land fill.

It's great when I get something like my HDTV and almost new couch for 20 cents on the dollar because the previous owner had to have the latest model. eBay and Craigslist have saved me a lot of money.

Same goes for cars. You take a huge hit if you buy or lease a car and get rid of it in 2 years.

You can also get new and used clothing off eBay. I hate going shopping and it saves on the gas.

Don't have kids. They're very expensive.

Lastly, read "The Millionaire Next Door".

 

[Smiling JOe]

cut up those fake credit cards, aka - debit cards. If a thief gets the numbers, you are screwed until you sort it out with the bank, and all of your other checks will bounce, then you will pay insufficient fund charges for each bounce. By using a real credit card or charge card (like the traditional AM EX), your checking account is protected, because you can contest any credit card charges prior to paying them. Pay off the full balance monthly. Also, many credit cards like Am Ex will double the manufacturer's warranty on many items purchased, and will also cover the purchases from theft or loss with certain limitations.

Go with an awards card which puts cash back in your pocket. You should be able to find them without annual charges.

From ClarkHoward.com:

Oct 15, 2007 -- J.D. Power names best and worst credit cards
Several weeks ago, Clark told you that Consumer Reports rated the best and worst credit cards in America. The single best card was the USAA Federal Savings Bank MasterCard, while all cards issued through credit unions came in at No. 2. Meanwhile, the big banks that issue the bulk of cards in America got stinky scores. Now there's a new survey out from J.D. Power and Associates that corroborates the findings of Consumer Reports. The J.D. Power tally focused on the big names only and is topped by American Express and Discover. On the bottom of the heap, J.D. Power says HSBC is the worst, followed by Bank of America and Capital One. That's very similar to what Consumer Reports said in ranking Capital One as the worst followed by Bank of America. Meanwhile, Citibank, Chase, Washington Mutual and Wells Fargo all got lousy scores from J.D. Power even though they came in near the top of the tally. So the important thing to note is that you should get your credit card through a credit union if you have access to it. Don't go through one of the giant monster mega-banks. Size does not equal quality in the world of credit cards.

 

[rancid]

cut up those fake credit cards, aka - debit cards. If a thief gets the numbers, you are screwed until you sort it out with the bank, and all of your other checks will bounce, then you will pay insufficient fund charges for each bounce. By using a real credit card or charge card (like the traditional AM EX), your checking account is protected, because you can contest any credit card charges prior to paying them. Pay off the full balance monthly. Also, many credit cards like Am Ex will double the manufacturer's warranty on many items purchased, and will also cover the purchases from theft or loss with certain limitations.

Go with an awards card which puts cash back in your pocket. You should be able to find them without annual charges.

From ClarkHoward.com:

Oct 15, 2007 -- J.D. Power names best and worst credit cards
Several weeks ago, Clark told you that Consumer Reports rated the best and worst credit cards in America. The single best card was the USAA Federal Savings Bank MasterCard, while all cards issued through credit unions came in at No. 2. Meanwhile, the big banks that issue the bulk of cards in America got stinky scores. Now there's a new survey out from J.D. Power and Associates that corroborates the findings of Consumer Reports. The J.D. Power tally focused on the big names only and is topped by American Express and Discover. On the bottom of the heap, J.D. Power says HSBC is the worst, followed by Bank of America and Capital One. That's very similar to what Consumer Reports said in ranking Capital One as the worst followed by Bank of America. Meanwhile, Citibank, Chase, Washington Mutual and Wells Fargo all got lousy scores from J.D. Power even though they came in near the top of the tally. So the important thing to note is that you should get your credit card through a credit union if you have access to it. Don't go through one of the giant monster mega-banks. Size does not equal quality in the world of credit cards.

Why are credit union cards better? I pay off the balance every month so interest rate is not a concern. Are there other benefits that make credit union cards more attractive ( custimer service, more cash back, better warranty coverage)?