Just stop spending... saving is easier than making money.

Advertisements aren't inherently bad, but many use manipulative tactics that influence in ways we don't even realize. Despite how much you think you ignore them, and how little you may believe they affect you, that's not necessarily the case. Here's a look at how manipulative ads work, the problems they cause, and what you can do to avoid these negative consequences. How Advertising Manipulates Your Choices and Spending Habits (and What to Do About It)

Good advice...

SHE had so much. A two-bedroom apartment. Two cars. Enough wedding china to serve two dozen people. Yet Tammy Strobel wasn’t happy. Working as a project manager with an investment management firm in Davis, Calif., and making about $40,000 a year, she was, as she put it, caught in the “work-spend treadmill.” So one day she stepped off. But Will It Make You Happy?

Saving money is like CYA'ing for the future..

So finally (having had it with trying to explain nicely) I told her that the main point of all of this is so that we don’t end up in the position in which she found herself at my house. (I phrased it a bit nicer than this, but not much because she clearly doesn’t get it.) If our AC went out two things would happen to me that did not happen to my friend. First, I would go to a hotel for a few days until repairs could be made. We can afford it. It would just be like a little mini-vacation. I wouldn’t have to beg to stay at a friend’s house because I’m too broke to go to a hotel. Second, the repair or replacement of the AC would be paid for in cash and that would be the end of the problem. We’d forget it and move on. My friend had to put a brand new $4,500 air conditioner and installation on her credit card. Her interest rate is probably north of 20%. She will be paying for this problem for a long, long time. That, right there, is the whole point of my frugal lifestyle. What is the Point of Any of This?

Cost shifting is something to watch out for...

An insurance company has recently been running a television commercial in which it notes that saving money is now a very popular topic of conversation. One incidental character in the commercial tells a friend that since he stopped buying lunch each day and started bringing lunch from home, he is putting fifty dollars each week in his pocket. I very much doubt that to be the case unless the fellow in the commercial was spending more than ten dollars each day on his lunch. There is a big difference between eliminating a cost and shifting a cost The Myth That Making Your Own Lunch Saves Hundreds Of Dollars

More taxes for all!

The so-called Bush tax cuts are scheduled to expire at the end of the year. Although some of the cuts retain bipartisan support in Congress and may yet be extended, as of now, Washington has some severe changes in store for you and your family. How the Expiring Bush Tax Cuts Affect You

This is a great concept!

One of the best ways to control your spending is to force yourself to use a mandatory waiting period before making any unnecessary purchases. Tell yourself that you will buy nothing until that waiting period is up. A waiting period gives you time to cool off, get away from the temptation, review your finances, and decide if you really, really want and can afford this thing that has you so captivated in the store. A waiting period can save you a lot of money (or time on the return lane when you decide to return the thing because you really didn’t want it anyway).

The Mandatory Waiting Period

This is good stuff - the video is particularly good.

What a lot of people don’t realize is that there is a lot of research and planning to get you to spend more when you walk into a store. Lee Eisenberg,the author of “Shoptimism” says that the retail outlets are experts at playing on your emotions, your perceptions and your lack of critical reasoning.

How Stores Trick You Into Spending More

Everyone should read this...

This is a very interesting paper: Understanding scam victims: seven principles for systems security, by Frank Stajano and Paul Wilson. Paul Wilson produces and stars in the British television show The Real Hustle, which does hidden camera demonstrations of con games. (There's no DVD of the show available, but there are bits of it on YouTube.) Frank Stajano is at the Computer Laboratory of the University of Cambridge.

The paper describes a dozen different con scenarios -- entertaining in itself -- and then lists and explains six general psychological principles that con artists use:

The Psychology of Being Scammed

How to buy furniture:

First, we've been told that things should be "perfect" from the moment we move in. As a result, we may purchase the first thing we see that we can afford, just to fill a space. But if we continue on that road, in 20 years we'll most likely end up with a mish-mash of furniture and accessories that no longer work, with cheaply made items that must be discarded, and some trendy items that don't seem to fit anywhere anymore.

How to avoid this? As with many things, planning and goals will go a long way toward accumulating furnishings of value. Unless you have money to burn, planning will help focus your decisions and provide goals for all of your home purchases (I like to call them "adoptions" since you are in essence bringing something into your home that you'll need to provide space for, clean, repair, and dust for its lifetime with you.)

A 20 Year Furniture Plan

On negotiation...

This isn’t a definitive guide, rather an invitation to open a discussion. My ultimate hope is that a couple of the tips demonstrate how everyday negotiating doesn’t have to be a sleazy, awkward process. We all negotiate everyday whether we like it or not. Up until recent years, I simply chose to ignore that fact, which has cost me more money than I want to think about.

Negotiation Tips For Beginners – A Real Life Example Of How I Saved $150 With Just A Few Questions

The jist of credit scores...

Tighter Lending Makes Cracking the System Vital; Benefits of Paying on Time

Credit Scores: What You Need to Know Now

If you're shopping for health insurance...

Consumers can find coverage on their own through an agent, or from one of the growing number of insurance-brokerage Web sites. Policies also can be purchased directly from insurers, but this doesn’t allow consumers to compare plans from different companies. Regardless of where you buy a plan, your premium for that policy will be the same.

Going It Alone When Buying a Health Policy

I'm a huge fan of renting over buying... and now you can calculate which is better:

Is it Better to Buy or Rent?

The Recession

Great read on the current state of the economy…

 

Unemployment hasn't reached 1982 levels and the gross domestic product hasn't fallen quite as far. But the hurt from this recession is spread more widely and uncertainty about the country's economic health is worse today than it was in 1982.

Back then, if someone asked if the nation was about to experience something as bad as the Great Depression, the answer was, "Quite clearly, `No,'" said Murray Weidenbaum, chairman of the Council of Economic Advisers in the Reagan White House.

"You don't have that certainty today," he said. "It's not only that the downturn is sharp and widespread, but a lot of people worry that it's going to be a long-lasting, substantial downturn."

Recession on track to be longest in postwar period

Good read...

Health insurance companies like to keep secrets. And they like to save money. Example: You have surgery, and weeks later you get a bill for using an out-of-network anesthesiologist. Ridiculous, right? You didn’t choose who put you under, so you shouldn’t have to pay extra. But your insurer sent the bill anyway, hoping you wouldn’t notice.

Nine Secrets Health Insurers Don’t Want You to Know

Good quick read:

Myths, the late Joseph Campbell taught us, are fundamental truths that help people carve order out of chaos. But in personal finance, myths are often fundamentally false. Yet, most of us cling for years to financial misconceptions, fantasies and half-truths, merrily unaware that they're, well, myths.
To help shine the light of truth on some financial fictions, staffers at USA TODAY selected 10 of the most common myths about personal finance. We explain why each is untrue. And for each myth, we reveal the reality and suggest a better path to financial security.

10 myths about investing and finances that trip up people

Retired by 20?

Smart kids...

Forever in search of the secrets to entrepreneurial success, we peeked into the inspirational lives of five whiz kids who built million-dollar enterprises before the age of 20.

How To Make A Million Before You Turn 20

How People Count Cash

How People Count Cash? - The most amazing home videos are here

More on teaching your kids about money....

Having money is crucial to obtaining the things we need in life, and of course, having extra for the wants is nice too. However, money problems can occur when parents don’t teach money management skills at a young age, usually when the child starts getting an allowance or has a job, such as babysitting or mowing lawns.

Important Lessons to Teach your Children about Money

I've been thinking the same thing...

The rich have traditionally passed their wealth on to their children. But an increasing number of multimillionaires are choosing not to. The reason? They want their offspring to fend for themselves - and not to turn into spoiled heirs and heiresses. Aida Edemariam reports

Family fortunes

This could be useful information if you're having issues paying off debt...

The average college student graduates with almost $20,000 in student loans. While this is a daunting sum, it is still possible to build wealth even while paying off student debt. But earning the degree and paying for the degree require two different kinds of smarts. In fact, some students may be better off not taking their parents’ advice on how to get out of debt. Unlike most types of debt, student loans are usually best when paid as slowly as possible.

Student Loans: How to Pay Them Off and Build Wealth

Really interesting read...

The following ‘10 Popular Myths About Wealth and Luxury’ comes from our friends at the Luxury Insitute.

10 Popular Myths About Wealth and Luxury

More on Renting Vs. Buying

I think its hard for many to make the right calls when it comes to their home...

I HAVE SOMETHING un-American to confess: I rent an apartment, despite having enough money to buy a house. I plan to keep renting for as long as I can. I'm not just holding out for better prices. Renting will make me richer.

Renting Makes More Financial Sense Than Homeownership

On Credit Cards

Finally, some good credit card advice...

An Example Of Bad Credit Advice

College Degrees

Basically, if you get a college degree, you'd better be making more money these these people.... :)

While most people are under the impression that unskilled labor typically is worth little to nothing, there actually are several jobs that pay high wages, even if you don’t have a college degree. Here’s a look at some of the best jobs out there where you can start making money now, regardless of your education. For our list we chose only jobs that start at more than $20 per hour and that usually offer on-the job training.

Highest Paying Jobs That Don’t Require a College Degree

Teaching Kids

The danger: Your kids will grow up to be financially reckless, and you will feel compelled to bail them out. Don't want to spend the rest of your life footing their bills? Here's how I have tried to protect myself -- by instilling good financial habits in my kids.

Giving Five-Year-Olds a Toy Allowance: How to Teach Your Kids About Money

Mary-Kate and Ashley

How to be retired by 20! :D

Cars

After spending $106k on a new car a few weeks ago, maybe there's some truth to this...

Super-rich driving 'supercar' market

Early Retirement

Ya know - I didn't think that retiring would be hard work... but it is! And this article sums up what its like:

This article addresses the joys, challenges, and some practical aspects of retiring young. The author retired in 2001, at the age of 37 (same age as Rossini when he retired).

Early Retirement

Zillow

Wanna buy a house? Wanna sell your house?

There's something voyeuristic about Zillow.com that draws you in. The Internet real estate tool gives the value of your home, your boss's, your high-school sweetheart's. You can even see it on a satellite map.

What's your boss's house worth? Zillow can tell you

Building Wealth

Interesting read...

If you wanted to get rich, how would you do it? I think your best bet would be to start or join a startup. That's been a reliable way to get rich for hundreds of years. The word "startup" dates from the 1960s, but what happens in one is very similar to the venture-backed trading voyages of the Middle Ages.

How To Make Wealth

Finance Metrics

I think that metrics are important - it helps you figure out if you're doing well or poorly - and most importantly it can help you figure out if things are improving or getting worse..

Most investors use financial ratios to grade the companies they buy and sell, but they rarely subject their own finances to the same rigorous reviews. Now, an investment adviser has suggested that his clients measure themselves against key ratios, too.

Rate yourself using debt-to-income ratio

Plugging Leaks

This is good stuff... save some money:

20 ways to plug hidden financial leaks — and save up to $3000 a year

Money-Saving Secrets

Hedonic Treadmill

You know, this might discourage some people from trying to retire by 30... but its an interesting read:

Chasing wealth can make you ill and earning over £25,000 a year won’t make you any happier. Who says so? An investment banker, reports

Unhappy? That's rich . . .

Cryonics

So there's this dilema with getting frozen... You can't get frozen, until you die... but when you die, you can't own any assetts... hmm...

You can't take it with you. So Arizona resort operator David Pizer has a plan to come back and get it.

A Cold Calculus Leads Cryonauts To Put Assets on Ice

Credit Cards

The past year I had the worst experiences with my GM Mastercard... so bad infact, when I accidentally lost it and had to deal with them I just flat out stopped using it. Good riddance - I was getting so tired of their address verifcation failing everytime I tried to order something online.

Since then I had started using my MBNA Mastercard again (which I've always loved), and when I called them today to switch it to their 1% cash-back card, they where incredibly nice and even upgraded my account to a Quantum (from my platinum plus).

I heart MBNA.

I just hope that BofA doesn't mess things up over at MBNA too much.

Bank of America completed its acquisition of MBNA on Sunday in a deal worth about $34.2 billion, the nation's second-largest bank said.

Bank of America closes on deal for MBNA

Alternative Minimum Tax

Lots of people don't know what AMT is... but it looks like more and more people are going to have to learn - check this out:

As many as 17 million Americans could face tax hikes in 2006 as the result of the alternative minimum tax, a little-understood tax once aimed at millionaires but now affecting the middle class.

What you should know about the alternative minimum tax