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Posts Tagged ‘Money Shortage’

What it truly means to live within your means!

Wednesday, May 26th, 2010

We all know that living within your means is, in its most basic form, living within your household budget.  However, I wanted to point out that there are many other ways that we overspend at work, for example, that can be adjusted and will help more people than just ourselves!

Let’s talk about being a teacher.  It’s a truly stressful job.  They have 100 students (at least) every day that need to be educated with not only the subject that the teacher is charged with teaching but also the life lessons that some of our more lackadaisical parents “don’t bother to” or “forget to” teach their children at home (FYI…it is NOT the job of a school teacher to teach your children the good morals and values of our society…that is in YOUR jurisdiction!).  Needless to say, it’s a little overwhelming.  What’s more, the money system set up around the education system (at least the parts I know about, as I am not an expert) is ludicrous.  For example, the school system allots each teacher a certain number of copies that they are allowed to make per year on the copy machine, and if they want to make more, they have to pay for them!  That puts added and undue pressure on the teacher, because let’s face it, toner and copy paper are cheap.

 However, silly as it is, it is the workplace version of “living within your means”.  But not all teachers do.  They will either spend money out of their own pocket to buy supplies, or send home a list of supplies that the parent MUST provide for all of the various projects the teacher wants to do.  All I have to say is, my oh my, what a mess!  Teachers are given a budget.  They should have to work within that budget (and yes, I am absolutely certain that their budget is too low and doesn’t help much, but it is what it is).  By buying supplies out of their own pocket, they are saying that the budget is meaningless, and that sets the wrong example for the students.  I love the generous nature, but they shouldn’t take the burden on themselves and set a bad example for the children.  And if they decide to pass the cost onto the parent?  Well, the parents at home have their own budgets and money problems to worry about, and the decision to have all of these wonderful projects impacts them too!

So, what is a teacher to do since they’re being squeezed on both sides?  Get creative!  If they figure out less costly projects and methods for teaching the same lesson, they will be able to stay within the budget the school set for them without passing the cost on to the parents!  I know that the replacement projects won’t be as full of bells and whistles, but the object of the lesson is to teach something, and that usually doesn’t require fancy projects.  Also, as long as the teacher has a computer with an Internet connection, she can show the students whatever she wants to show them!  For example…let’s say the teacher originally wanted to have the students build volcanoes for science class.  All she has to do is have them read the chapter, discuss it in class, then show the students this on the projector.  It’s not AS cool, but it works and it’s pretty much free!

I’m not trying to pick on teachers, just so you know.  I just wanted to give an example of how we have a mental disconnect between living within our means at home and at work.  We shouldn’t be frugal at home and a spendthrift at work.  Apply the same principles at both places, and get creative on your savings!

Interesting and controversial way to make money!

Monday, May 10th, 2010

Our regular readers know the types of suggestions that we typically make for making extra money, so this might come as a shock to you, but today, we wanted to suggest making money by selling your eggs or sperm!

While goofing off this weekend, we ran across this article and this article that talked about sperm/egg donations, and we thought it was a great idea for a way to make extra cash! 

Now, you should know ahead of time that it isn’t the shady type of operation that most of us picture it to be.  These are upstanding businesses that are helping infertile couples get pregnant.  Are they doing it for free? NO!  Of course not, because they are a business.  So if you have moral problems with making money off of helping people achieve pregnancy, this is probably not the route for you.  Also, if you worry that you will have children running around everywhere marrying each other, this is probably not for you.  If, however, you believe it to be a good and vital part of our society that helps people create the family they have always wanted, then you should consider donating, especially given to income potential!

Does it pay well?  Yes, as a matter of fact it does!  After the routine psychological and physical screenings that a potential donor has to pass, they are admitted to programs that can make them $500-$1,000 a month (for sperm) and $5,000 -$10,000 per removal (for eggs).  That’s a lot of money for something we already have in our bodies!  I’m sure that you noticed the compensation disparity in eggs versus sperm, and I want you to know that there is a reason.  While men can donate relatively easily, women have to go through hormone therapy and a minor surgical procedure to donate, so the risks are higher. 

Does everyone get accepted?  No!  The screening process is very stringent, and most applicants don’t make it through.  Those that do, however, get a decent sized paycheck and the knowledge that they have helped couples all over the country, and that is a truly worthwhile extra “job”!

Creative income and sacrificing for what you want.

Wednesday, March 10th, 2010

In this world, there are many different types of people.  We all approach a difficult situation differently.  While one person might attack a problem with voracity, another might decide to shelf it until a solution presents itself, while still another person might decide that they aren’t capable of solving the situation, and either seek outside help or give up entirely.

I know a woman who demonstrates a dedication and voracity that is rarely matched, with an eye for creativity in the face of her problem.  This woman has 2 children, both boys.  She would very much like to try for a girl, but she needs to have a surgery to be able to try for her baby girl.  This will cost several thousand dollars that is not covered by her insurance, so, she was faced with a difficult situation.  She did not cower or give up, though.  Instead, she has decided to start a side business outside of her normal job.  She is quite talented at decorating cakes, and so, she has taken that talent and turned it into income!  She is offering cakes to friends, family, and anyone else interested in visually interesting cakes for a reasonable price.  Her goal is to save up enough money to pay for the surgery.  This is not a woman beaten by her circumstances.  I always say that you can’t let life happen to you, you have to happen to your life…and she is doing just that!

What type of dedication do you have?  Do you rise to the occasion when you are faced with a problem, or ponder on it too long, or do nothing?  Whatever your answer, you can be sure that others are starting businesses in their kitchen, getting their extra slice of the money pie.  Will you let your opportunity pass you by, or rise to the occasion?

Your bank and overdraft protection…

Friday, February 26th, 2010

Today’s article, Banks use scare tactics to get you to sign up for overdraft protection, addresses the new bank overdraft “protection” law that basically says that you have to voluntarily sign up for the overdraft protection to let your bank keep processing your debit card transactions even after you run out of money.  As far as I’m concerned, at $35 per transaction, overdraft protection is no service to it’s customers, and certainly shouldn’t be anything someone would voluntarily sign up for!

Now, I’m sure you can tell from above, we believe if you can’t keep a minimum amount in your bank account, or can’t keep from overspending because you aren’t diligent, then you shouldn’t have a bank account, and should operate on a cash only (money orders to pay bills) system.  However, if you choose to have  a bank account, and struggle to keep funds in it, then use the other services that many banks offer, that don’t come attached to a ~$35 fee PER TRANSACTION! 

The scary stuff you get in the mail from the bank, that says your debit card will stop working and the like is true, because OF COURSE it should stop paying people if you don’t have any money in your account!  That is the way it is supposed to work!  The card is not supposed to let you spend more than you have!  Overdraft “protection” is like you receiving a mini loan from the bank…kind of like those payday check cashing places, but wrapped in a prettier sounding name.  Ignore these letters from the bank!  You don’t want to keep paying $35 a transaction loan fees for the rest of your life!  DO NOT opt in to this plan, just learn to watch your account and don’t over spend. 

If you absolutely CANNOT LIVE without overdraft and refuse to be on cash only (hard headed, aren’t you??), then there are a couple of alternatives.  Many banks will allow you to link your checking account to your savings account to prevent overdrafts.  Some will also link it to a line of credit (not something we recommend) to prevent these overdrafts from happening.  Neither of these programs are free, but they are cheaper than overdraft, and won’t catch you off guard either, because, let’s face it, if you don’t have the money to cover your purchase, you definitely don’t have the money to cover your $35 a transaction overdraft “protection”.

If or when you start receiving these notices from your bank, do yourself a favor, and “just say no” to overdraft protection…instead, be more diligent with your account, or switch to cash!

Everybody Loves A Good Clips Episode…

Wednesday, August 26th, 2009

This week I wanted to revisit some of my previous posts that I find to be worth repeating, because when it comes to money and relationships, lessons need to be reinforced.  It’s the best way to stay focused!  Below, you will find links to some of our previous and a description.  We hope they keep you focused if you are doing well with your money and marriage (relationship) or get you back on track if you’ve lost your way. 

  • Can You Plan Spontaneity - This is a recent post, but it’s a good one, and it’s one of our trademark tips for a successful lifestyle .  The post outlines how we have built spontaneity into our budget (which works quite well, I assure you), achieving both spontaneity (to have a little mystery about special outings, gifts etc.) and budget restraint (so you have so money to retire on one day).
  • YOU are an emotional piggy bank -   This post has generated a lotof talk of the last few weeks.   You are an emotional piggy bank, taking in deposits and doling out payments from other people.  Just like a bank account or a piggy bank, you need to have more deposits coming in than payments going out for the system (i.e. you) to function.  People that drain too much from you, drain you, and you should spend time with them sparingly, if at all.  This, of course, is opposed to emotional boosts, who make lotsof deposits into your piggy bank.  You should spend as much time as possible around these special people.
  • Never forget where you started… - This post is a reminder of why you got married or into a relationship with your spouse/significant other, and some tips on how to make it work better or keep it working wonderfully!
  • Why your friends are costing you money, and what you can do to stop it! - This post is all about being friends with people who have a larger income than you and ways to avoid the pressure of spending too much money, or spending money that you don’t have when you hang out/spend time with them!
  •   So, going to the gym is like budgeting my finances? - This post draws parallels between going to the gym and budgeting your finances.  Not only are there insights into better ways to budget your money, but there are also a few tips on going to the gym!  You can’t beat that!

So, those are the blog posts that we’d like for you to go back and take a second look at!  Hopefully, you will find some information that helps you along in your life, or reaffirms what you already have in practice!

 

 

 

 

“clips episode” of previous posts that are “must reads”

Why your friends are costing you money, and what you can do to stop it!

Wednesday, June 3rd, 2009

We love our friends. As a society, we spend time with our friends, we lean on and comfort our friends and we can’t live without our friends…but sometimes, we want to pull our hair out because of our friends! Now, I cannot claim to know all of the reasons our friends make us a nervous wreck, but one of the big ones is money.

Most of us at some point in our lives have been in the position of being friends with someone who either has more money than us or at least spends like they have more money than us (this is bad, of course, cause they are spending money they don’t have). They are constantly wanting to go out to new places. Ladies want to go shopping at expensive boutiques, get massages or mani/pedis etc. Men want to go play golf at expensive courses, watch football, basketball or baseball games in person. Unfortunately, they don’t realize what kind of effect this has on their friends who make less money or don’t want to spend a lot of money. They are costing YOU money! You agree to go out, and then they pick a very expensive restaurant, where you end up spending $75 on 2 glasses of wine and a salad. Now, as much as you value their friendship, and as much as you love spending time with them, you dread their phonecall/text because of the impending monetary dilemma.

So, how do you stop them from costing you more money in the future? Well, this is not a popular way to do it, but doing things the right way is rarely popular…tell them you’re broke! Tell them you don’t have the money to go out. You might feel uncomfortable doing this, but when your checking account starts to recover, I have a feeling that you’ll be happy! I know that it feels weird to say something like that. To be honest, the first couple of times we said it when we were getting out of debt I was wholly embarrassed. But then, I started to notice how people stopped expecting me to go along with their expensive plans, and started to ask what I wanted to do. This gave me the option of saying “yes” to going out, but “no” to the expensive stuff!

Saying “I’m broke” not your thing? Well, luckily, “we can’t afford it right now”, “money is tight right now” and “we’re trying to save more money these days, can we choose a less expensive to do?” all have the same effect. They all tell your over-spending friend to back off on the luxury when you hang out together. If you just say “no”, that opens the door for them to pressure you on the subject, where you might cave in. Telling them that you don’t have the money usually makes the friend conclude that further discussion is out of the question.

Hopefully, this will set you on the right track with your friends. It’s all about personal responsibility. Remember, it is grown up to take control of your finances and childish to let others decide what you spend your money on!

Friday’s Financial News…Entitlement programs!

Friday, May 15th, 2009

Today’s financial news is about something that we all know exists, but not a lot of us think about…Entitlement programs, such as Social Security and Medicare.

Today’s article is The forgotten fiscal problem By: Jeanne Sahadi

Brief summary: The release of a yearly report from the individuals who oversee Social Security will likely spark some debate because Social Security has been in financial trouble for a while, and is likely to be in even more trouble in the years to come.

Thanks to the rise in unemployment, currently at 8.9% nationally, the money paid into the Social Security system has fallen. The article states that the “White House budget office estimates that Social Security will take in less in payroll taxes than it must pay out in benefits for 2009 through 2011. And then the system is expected to start running a small cash surplus for a few years before once again taking in fewer taxes than it pays out in benefits”. What does this mean to you? Potentially, a lot, because when social security runs out of money, the government will try to make up the difference somewhere, and that will more likely be higher taxes and not government spending cuts. And while I am on the subject, I would just like to remind everyone that Social Security is not some money that the government is “giving” you. This is money that you pay in out of every paycheck that the goverment is supposed to give you back when you retire.

According to the trustees who oversee the program, it will start to take in less money then it pays out in 2017 and that the trust fund will be tapped out by 2041 (see below)…remember that the government borrowed the surplus of $2.4 trillion that Social Security had a while back. Without any action, 2041 (revised to 2037 in an article published 1 day after this article was released, which you can read here) is the date after which the system can afford to pay out only 78% of benefits promised to the future retirees, otherwise known as the people who paid into Social Security for decades only to be denied all of their money back when they need it. This is a problem people need to know about. A lack of people paying in is something that will cause problems down the road.

One of the reasons sited for the long-term shortfall is that Americans are living longer. The American Academy of Actuaries, a group of people who are experts in evaluating risk, are advising that U.S. lawmakers increase the retirement age for Social Security. This might fix the problem, but unless your benefits increase for every year that they don’t pay your money back, then they are taking advantage of you. Think about it like this: If you retire at 65, and can collect $1500 a month until you are 100 under the current system, then these benefits should increase by at least $250 each month if you are forced to wait until age 70 to start drawing
social security. But that is NOT what they are planning, I assure you.

The article quotes a recent speech the house majority leader, Steny Hoyer gave regarding Social Security. He is quoted as saying “We can bring in more revenues. We can restrain the growth of benefits, particularly for high-income workers, while we strengthen the safety net for lower-income workers. And/or we can raise the retirement age, recognizing our life expectancy is significantly higher. What is missing here is not ideas — we have a lot of ideas — it is the political will.” Now, follow what he says…they can collect more taxes, they can cut back on benefits, especially for high income workers (who, incidentally, paid in MORE Social Security taxes because they earned more…yeah, that’s fair), while increasing benefits for low income workers (which means giving these workers more than they paid in), or raise the retirement age to collect benefits(which I already addressed above).

Overall, I think the article points out a real problem for the citizens of this country. Social Security is not being funded well enough, and those of us paying in now, which pays benefits for those retiring now, are the ones who will suffer in the future when we retire. Let’s hope Social Security will be in the public eye enough to encourage people to make a back up plan, since it’s obvious, we’re going to need it!