Walk With Money » People

The Debate Between Debit Cards and Credit Cards

Robert Wilkinson — Tue, 09 Nov 2010 12:20:04 +0000

More than half of all card transactions are now being paid with debit cards rather than credit cards, according to the Nilson Report. The debate between debit cards and credit cards continues on. Many people made the switch to debit cards in an effort to avoid racking up too much debt and to help manage their budget more efficiently. The problem with this theory is the costly expense of overdraft fees if you mistakenly overdraw your account – and the fact that you lose out on many benefits by not using credit cards.

Photo by Classyshot via Flickr

Despite the reinvention of the credit card industry and the recent legislation changes during a troubling economic period, there are still many benefits to using credit cards over debit cards which you may have overlooked, including:

Build credit - People who only ever use debit cards or cash to pay for their purchases are going to have a lower credit score than people who use and pay for credit card purchases in a responsible manner. A credit score is calculated based on a number of factors, including the types of credit you use, how much credit you have available, and the average age of credit accounts.
Buy now, pay later - If your paycheck doesn’t always come in at the same time as your bills, you can benefit from paying all of your monthly expenses on a credit card and then paying it off at the end of each month. Just keep track of what you’re spending or paying for with the card, and make sure you have enough money set aside to pay it when the bill comes in. This is a much better alternative to payday loans and debit card overdrafts.
Avoid usurious fees – It’s somewhat counter intuitive, given their reputation, but credit card fees are 100% avoidable. Meanwhile, many of the prepaid ...

Best Money Tips: 7 Worthless Excuses for Not Saving

Robert Wilkinson — Tue, 31 Aug 2010 05:20:05 +0000

Welcome to Wise Bread's Best Money Tips roundup. Today, we destroy all those lame excuses for not saving, help you shop for a laptop, and give you the facts behind MLM opportunities.

How to Budget in Less than 20 Minutes a Week

Robert Wilkinson — Sat, 28 Aug 2010 14:20:02 +0000

1 of the most typical misconceptions about budgeting is that is requires a l-o-n-g time. Most individuals who do not learn how to make a budget do so because they think they do not have the time to budget. But, if your budget is doing its task you should be able to budget with out a major disruption to your schedule.

While some individuals function for different factors, most individuals function to spend the expenses. Some even hate or begrudge their jobs. But they continue to put in 40 plus hours a week to earn cash to spend the expenses. Nevertheless, for most individuals, taking 20 minutes a week to budget could significantly reduce their expenses which would also decrease the require to earn so a lot cash. Keep in mind, a penny saved is more than a penny earned.

Picture by Aaron Geller by way of Flickr

five S to a 20 Moment Bu

1. Set up budget.

Yes, this part of the process will get more than 20 minutes. This is where you really make your budget and set budget categories.

Time dedication every 2-3 many years: 1-3 hours.

2. Keep a published report for every buy.

Gather receipts every time you invest cash. If you do not get a receipt, just get a receipt you already have and make a note on the back again of the receipt. Include the item purchased and total cost.

Time dedication per transaction: seconds if they give you a receipt and 20 seconds if they do not.

If the typical person makes ten purchases a week where they do not get a receipt, it will cost them 2 minutes of their week.

3. If married, schedule a budget date 1 day a week.

Yes, call it a date. When you are on the same page with your finances, your marriage will be better.

Have 1 person enter the info and the other study the info from the receipts you have been collecting. In our situation, we budget on the pc using Moneydance. You ...

Promises, Promises (To Yourself)

Robert Wilkinson — Mon, 05 Jul 2010 23:20:02 +0000

Connie writes in with a great question whose answer got far too long for the Mailbag:

My biggest problem with money is that I lie to myself. I keep telling myself everything is going good and at first it is. Then I start slowly falling back into old habits but I keep telling myself everything is good. Eventually, everything is worse than before but I still keep saying everything is good, and then I’ve racked up thousands of dollars on the credit cards again. I don’t know what to do anymore.

I think that lying to ourselves is something we all do to some extent. Most people tend to believe they’re above average in most categories, which indicates some degree of self-delusion among practically everyone out there.

A little bit of self-delusion is very good, actually. It gives us self-confidence, something we need to have to overcome difficult situations. We can tell ourselves we can do something just a bit beyond our skill and talent level and thus by pushing ourselves to doing it, we’re able to achieve something that was previously just beyond us.

Yet, as Connie points out, self-delusion can sometimes be a very, very dangerous thing. It can push us into making some terrible mistakes under the guise of “everything being fine.” It can cause us to undermine our own progress and goals. It can sneak us into ever-greater problems, like an endless sink into debt or obesity or career mediocrity.

My biggest current problem with self-delusion is with my weight. I’m not gaining any – that’s not the problem – but I often delude myself into thinking I’m doing very well at losing weight when I’m actually treading water or losing it very slowly.

In the past, however, I’ve been able to battle self-delusion in many different areas: my career, my personal hobbies, and my time management abilities immediately come to mind.

Here are four techniques I’ve found that really work for cutting through self-delusion.

Make yourself directly accountable to others
This is the top strategy I’ve found. You’ve simply got to make yourself accountable to others in your life. Lay out your situation to them. Explain where you’re ...

5 Things To Know Before You Buy An Extended Warranty

Robert Wilkinson — Mon, 26 Apr 2010 21:20:02 +0000

It is getting harder and harder to find a product that does not offer an extended warranty these days. It seems like every store now offers some sort warranty on some of their merchandises. For $3, $8, or $40, you can get an extra one, two, or more years warranty. And the pitch usually goes like this: “things usually break after the factory warranty runs out, with the extended warranty, you can bring it back and we’ll take care of you.” But, is it a good idea to spend extra money for the extended warranty?

What You Should Know Before Purchasing An Extended Warranty

Photo by S_Baker via Flickr.

Extended Warranties are Generating Huge Incomes for Stores

Extended warranties are very lucrative for the stores that offer them. For the store to make a profit, people must not make claims frequently. This means statistically you are not likely going to need the warranty.

Why do you think everyone now offers an extended warranty for everything but your toothbrush? Why do you think that many stores are requiring clerks to ask you about an extended warranty? Some car sales locations have been known to put a lot of extended warranty pressure on people.

Why? Because they are a significant source of highly profitable income.

Extended Warranties Require a Good Memory and Organization

I’ve purchased a lot of products that offer credit card purchase protection, but I don’t think I’ve ever made a claim. Want to know why? When something breaks, it is hard for me to think to check on my coverage. In addition, I often can’t find the necessary paper work. In the end, I just conclude that it is easier to go and buy a new item.

Here’s a good list on what paperwork to keep and what to get rid of.

To capitalize on an extended warranty, you need to be organized and keep all your records accessible. Most people are not that financially organized.

Most Products Already Have a Warranty

Many products come with a manufacturer’s warranty. Some already with a lifetime warranty. I’ve found that if you contact a company about a product even after the warranty is expired, they will often help repair or replace the product at a discount.

Even if a product does not have a warranty it is possible you can get a warranty ...

How to Get Free Financial Help and Give It

Robert Wilkinson — Wed, 21 Apr 2010 16:20:02 +0000

Struggle. When whole communities are affected by bad news and financial challenges, moods and momentum slow way down. It’s hard to find the way out of the downward spiral. I say turn that spiral in the opposite direction and lighten up together.

Photo by blmurch via Flickr

What’s an opposite spiral?

Essentially, every person we touch is a communication point. Since women are connectors, we are innately built to help one another in this networking way. You help Chandra. Chandra helps Claire. Claire helps Jill. We spiral out. Now’s the time to offer your networking circles to your communities. Lend a hand. Flex your generosity muscle and put the word out. Not only will you get outside yourself and your own downward spiral, but you’ll get your community circulating again.

Here are some ways to get the help flowing:

1. Active listening and networking: Start with people you know.

Ask five people you know in your life how they are doing, what’s happening for them in business, and how can you help them grow? Tell those five people to call you or email you with their pitch. Then give them yours. Once you exchange, you each now have in your back pocket their pitch to share when you overhear someone at the market saying they need your person’s services…a contractor, a CPA, an assistant, a coach, a CEO.

2. Continue outside your immediate sphere.

Post those same questions on Facebook. Ask friends and visitors to post their pitch, so that your readers can see them directly. That’s the beauty, and one of the original purposes of Facebook, making connections.

3. Spiral past your circles into community.

Is there anything you can help support in your community? One of Green ...

Should You Hire a Financial Adviser?

Robert Wilkinson — Thu, 08 Apr 2010 05:20:02 +0000

As you start to build up your net worth, the question of whether or not you should hire a financial adviser becomes more important. However, the answer is not a simple yes or no. Some people do quite well without a financial adviser, some people need one, and on rare occasions, some wish they never had one. Even though I’m a financial adviser, I don’t believe that everyone should hire a financial adviser.

Photo by Miguel Virkkunen Carvalho via Flickr

In fact, I don’t think anyone should hire a financial adviser unless and until they can answer two questions:

relationship

2. Are you ready to take advice?

What do you want to get out of the relationship?

Let’s tackle the first question, what do you really want out of your relationship with a financial adviser?

This may seem like a really basic question but I think you’ll see that it really isn’t. For example, some people hire financial advisers because they want better investment results. Fair enough…but let’s look at this issue a bit more carefully.

Do you want an adviser who will beat the market every year?

If this is your real motivation, forget about it. It’s impossible. No financial adviser can beat the market year in year out. If they have a great streak for a number of years, chances are they’ll disappoint you sooner or later. And you’ll bail on them exactly when that happens. There are investment strategies that work, but nothing works all the time.

Don’t hire an adviser for above-market performance. It’s not something you can hang your hat on.

Are you looking to hire an adviser because you need a financial plan?

If so, you may not need a money manager. You should just hire someone who can put a plan together for you. A plan you’ll understand and more important, one you’ll implement.

If you need insurance, you can get that online much cheaper than through a planner or an insurance agent.

Have I discouraged you from hiring a financial adviser?

I hope not.

Good Reasons to Hire a Financial Planner

I think there are two very good reasons to hire a financial ...

Other People’s Priorities Don’t Have to Be Your Priorities

Robert Wilkinson — Sun, 14 Mar 2010 05:20:25 +0000

Kelly writes in:

In the past three months, I’ve paid off all but $2,000 of my credit card debt. I feel happier about my money than I have in a long time. The only problem is that my social life seems to be falling apart. I don’t have as much interest in the things my friends are spending their money and time on and I find myself doing other things a lot. What do you suggest?

Bear with me for a second as I go down a bit of a strange road.

I’ll admit it. I’m not a good housekeeper, and neither is my wife.

Yes, we keep our house reasonably clean and we make an extra effort to clean when guests come over, but on a day to day basis, housework is lower on our priority list than it seems to be for many other people that we know. Quite often, we do minimal cleanup during the week and wait until Saturday for a real housecleaning – and, even then, we don’t scrub the walls or things like that on a regular basis.

Our priorities are simply different. There’s no wrong or right about it. Some people value housecleaning more than we do. A few of our closest friends spend literally hours each day on housecleaning because keeping their house sparkling is a very high priority for them.

So what’s a high priority for us? Time with our kids and with each other. Learning new things. Finding ways to have fun without spending a mint.

If we were to simply follow the lead of some of the people in our social circle, we would probably spend more than we do. One of my closest friends is becoming a small-scale land baron. Another one buys lots of Leroy Nieman serigraphs and, on occasion, original art. Yet another close friend really, really values his three automobiles.

Our money goes towards financial stability, because that’s what we value.

Placing that value highly, even if it’s not in line with what our friends seem to value, hasn’t damaged our deepest, most important friendships. You don’t have to value exactly what others value – you just have to respect it.

Instead, our friendships ...

Tips To Survive The Credit Crunch

Robert Wilkinson — Fri, 05 Feb 2010 09:20:26 +0000

Today's article is written by guest blogger Trisha Wagner.

Does the economy have you feeling down? It takes a boat load of positive attitude to look at the current credit crunch and not feel a bit of apprehension regarding your finances. So if you find yourself worrying about what the next several months may have in store, you might find some relief by following these simple tips to help survive during a recession.

Diversify- Take this tip from top investors. Whenever the economy becomes unstable it is best to not have all your eggs in one basket. Your portfolio is not the only thing that should be diversified. You should never count on just one stream of income, especially when the economy goes south. The rate of unemployment is rising each day and to believe you are immune is nonsensical. If you investigate alternative forms of income now you can be better prepared for the worst if it should happen.
Budget- Since having a budget is one of the most commonly mentioned tips for staying solvent in any economy you may wonder why it is being mentioned here. As often as this tip is mentioned there remains a number of people who simply don't do it. For those of you not on a budget, start one today. Know from where and how much income you have to work with. Track your expenses to ensure you know where your money is going. When your budget is in place (which may take several weeks to get the hang of it) you will have an easier time cutting expenses.
Get rid of debt- Whether you have a small amount of debt or a large amount you should immediately work on eliminating the balance. If you think you need help on reducing debt use the vast amount of information available on the internet to help research your options- there are several of them- to find the process that will work best for you.
Unload the unnecessary- Some people are finding that the years of unabashed spending has lead to their current financial mess. Many of these same people can look around their home and find many items that they do not need or even use. You can sell items on ebay, have a garage sale or sell items in your local newspaper. This can simplify your life in addition to bringing extra money into the home. A few people may be able to take this a step farther. Do you have two or more cars? Do you need each of them? By downsizing your lifestyle you can infuse money into your budget while getting rid of non-necessities.
Emergency fund- Don't forget to contribute to your emergency fund. This is similar to having a budget, people know they should but often fail to follow through with contributing to this fund. Emergencies will happen at some point in your future and having money set aside to cover or at least offset the financial burden you are more likely to make it through a financial emergency.

Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.

Photo Credits: 1

Originally posted 2009-02-02 05:25:58. Republished by Blog Post Promoter

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The Briefcase Technique — to earn thousands of dollars

Robert Wilkinson — Wed, 03 Feb 2010 08:20:13 +0000

The Briefcase Method — to earn thousands of dollars

19 comments — published on February 1st, 2010

Here’s a technique I’ve utilized to earn thousands of dollars in salary and freelance negotiations.

God I adore it

This is just one simple example of the hrs and hrs of HD video clip in a new program I’m launching, known as “Earn Your Initial $1,000 on the Aspect.”

So tonight, I’m hosting a special webcast.

In the webcast, you will see…

2-three “teardowns” of people’s freelance ideas: I’ll get them on the line, evaluate their freelance company, and display them how to skyrocket ...

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Walk With Money » People

The Debate Between Debit Cards and Credit Cards

Best Money Tips: 7 Worthless Excuses for Not Saving

Top 5 Articles

How to Budget in Less than 20 Minutes a Week

five S to a 20 Moment Bu

1. Set up budget.

2. Keep a published report for every buy.

3. If married, schedule a budget date 1 day a week.

Promises, Promises (To Yourself)

5 Things To Know Before You Buy An Extended Warranty

What You Should Know Before Purchasing An Extended Warranty

Extended Warranties are Generating Huge Incomes for Stores

Extended Warranties Require a Good Memory and Organization

Most Products Already Have a Warranty

Related Searches:

How to Get Free Financial Help and Give It

1. Active listening and networking: Start with people you know.

2. Continue outside your immediate sphere.

3. Spiral past your circles into community.

Should You Hire a Financial Adviser?

What do you want to get out of the relationship?

Do you want an adviser who will beat the market every year?

Are you looking to hire an adviser because you need a financial plan?

Good Reasons to Hire a Financial Planner

Other People’s Priorities Don’t Have to Be Your Priorities

Related Searches:

Tips To Survive The Credit Crunch

The Briefcase Technique — to earn thousands of dollars

The Briefcase Method — to earn thousands of dollars

In the webcast, you will see…

Related Searches:

Related Searches: