All Articles Tagged "cash"
As a millennial generation heads into their 20s and 30s, many have had either a great or not-so great example of what it means to manage their money. Although the age of careers, job searches, marriages and first homes are approaching, many millennials still have no clue what it truly means to manage money for their long-term success and comfort. Even parents are sometimes shaky resources for personal finance information.
A 2012 U.S. News Money article finds that Generation Xers (who are now in their 30s and 40s) are the generation with the most financial frustration. Retirees are increasingly responsible for their own savings, income, and financial futures. Let’s face it, we all can use an old-fashioned money management lesson every now and again.
Let’s all learn a little bit from past generations, and keep your money flowing with these old school money management tips.
A British journalist, Oliver Burkeman, conducted a little experiment: He left his credit cards at home for a few weeks in favor of going all-cash (or all-Pound, as it were). The idea is that people who use plastic spend more money than those who use hard currency.
According to Fox News, there is research to back up this belief. However, proving the “cause and effect” — using credit cards causes a consumer to spend more money — hasn’t been proven. “People who use plastic are often more affluent than average, while people who pay in cash sometimes do so because they have no choice. Perhaps they can’t get approved for a card because their finances are in a mess, and consequently they endure serious liquidity constraints,” the article says.
Moreover, there’s the suggestion that people who use credit cards think differently about their purchases, taking features and benefits into greater account. Those using cash, the research asserts, think foremost about price. Perhaps. But surely, anyone spending money on an item would be willing to spend a little more, if possible, to ensure that what they’re buying won’t fall apart right away.
We would recommend that you try and use cash as much as possible, especially if you are living on a tight budget (saving for a big purchase, trying to pay down debt). It’s really mental. When you think about your lush, green dollars slipping from your hand and into that cash register, you can’t help but to ponder a little more closely whether the purchase really needs to be made. And, once the purchases are made and your wallet is empty, it’s much easier to see where your money went. How many times have you looked at your bank statement and had your memory refreshed — Oh yeah. I spent $50 on drinks with friends on Thursday. And $75 on that dress on Saturday. And $50 on that fancy body lotion I treated myself to in celebration of surviving a rainy Monday. You’ll wish you’d just gone right down the block and gotten some Nivea.
The story points out some clear benefits to using plastic. If you run into a problem with a purchase, you have a record of it. A lost card can be replaced whereas money is gone forever. And the rewards can add up to a nice little something.
But with all of these perks, what’s really important is strategy. For instance, you have a card that offers points, which can be redeemed toward an airline ticket. Perhaps you decide that all of your clothing, restaurant and salon purchases for the next six months will go on the card. There’s no need for an extra pair of boots, an additional night out on the town, or an extra deep conditioner. The point is to get something extra. If you spend the cost of the airline ticket on all these extraneous items, what have you gained? If you find that you’re not earning enough points, maybe start putting your groceries or gas purchases on the card; things that you would normally buy anyway. The point is to make the money you spend every day go a little farther. But keep in mind: credit cards charge interest. If you can, pay off the bill in full every month. Then, you’re really taking advantage of that bonus.
Credit and debit cards definitely have their advantages, so we wouldn’t say you should swear them off entirely. But if you have spending issues, you have to take that into account when you’re budgeting your credit card expenditures. If you go swipe happy, you’ll eventually get very, very sad.
These days, everyone has a credit card. And on that next trip to the mall, you may decide that you “need” that cashmere sweater (“It’s fall!”). Or that new lipstick (“It’s small!”). Or a pair of shoes (“I deserve a treat!”). Or an extra-nice lunch with wine and dessert (“We all gotta eat!”). Just as fast as you can whip out your card, you’re swiping until you can’t swipe no more. Before you go there, just stop.
Black Enterprise cautions readers against racking up credit card debt, even when we’ve worked hard and really, really, really want something. They suggest using cash and offer four tips to help you use green instead of plastic when you take a shopping trip.
“Bring a certain amount of cash with you daily and only spend that,” they suggest. If you need to carry a card, make it a gift card with a monetary value, which will keep the credit card use at bay.
For more about how to keep credit card use to a minimum, click here and read more at BlackEnterprise.com.
For the folks that are abusing the system … STOP IT!
There are so many people starving and homeless in America that really need the help from social programs funded by the federal and state governments and even more Republicans ready to cut all programs for the actions of a few.
All they need is excuses like folks using the money on their EBT cards to buy drugs and cigarettes. But, one dude takes it even further than that.
For the complete story, visit EurWeb.com.
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(Kiplinger) — Coming up with extra cash to pay the bills, cover unexpected expenses, boost savings or perhaps even finance a vacation isn’t always as hard as it seems. There are plenty of legitimate moneymaking opportunities out there that require neither a daily commute nor a 9-to-5 commitment. In fact, we found 11 more strategies, on top of the 11 ways to get extra cash that we’ve already shared. Some of these are good for a fast buck, while others could turn into long-term opportunities. Find out which cash-generating ideas could work best for you.
Sell Your Stuff on Consignment: Consignment stores make it easy to unload items you no longer want and get cash for them without the hassle of actually trying to sell them yourself. Look for upscale consignment stores that get a lot of traffic if you want top dollar for clothing, furniture, linens, china, glassware or artwork. Expect to split the profit 50/50 with the store. (Ask for details, though, because store policies vary.)
By Charlotte Young
As Congress is deep in talks to fine-tune the debt ceiling deal and take a vote, it looks like who they really should be asking advice from are the big players at Apple.
According to the BBC, Apple has more cash on hand than the US government. The US Treasury Department shows an operating cash balance of $73.7 billion dollars, compared to Apple’s most recent sales report, which put its reserves at $76.4 billion.
In the midst of a financial downside for many, people seemingly don’t mind spending extra to buy the latest in technology. Apple’s revenue reportedly jumped 82 percent in the past quarter, a company record. The latest iPhone shipment was at 20.3 million, while there were about 9.25 million iPad shipments.
Even President Barack Obama is an Apple user; he owns an iPad, along with the 28 million other iPad users.
Tuesday is the US’s deadline to escape defaulting on payments to investors in Treasury bonds, recipients of Social Security pension checks, people dependent on military veterans’ benefits and businesses that work for the government.
A deal was reached on late Sunday night after heavy debating all weekend long, with the Tuesday default deadline steadily approaching.
If the country defaults on its loans, it could face a downgrade in its triple “A” credit rating. In addition, if enough cuts aren’t identified or if Congress doesn’t act on recommendations, there will be a decrease in federal benefits across the board, including in Medicare.
Democratic and Republican leaders are in meetings Monday to give their final remarks on the debt ceiling deal. Vice President Joe Biden has been meeting with Democratic lawmakers in both the House and Senate in back to back closed door sessions.
Senate Majority Leader Harry Reid and House Majority Leader Eric Cantor both say that depending on how these meetings go, the vote could come on Monday evening.
While some are relieved, no one is happy with the deal. The NY Times reports Senator Reid remarked that “ people on the right are upset. People on the left are upset. People in the middle are upset.”
The report also says that despite the discontent, Senator Reid believes the deal is a “remarkable agreement which will protect the long-term health of our economy.”
Maybe if Congress puts together a computer even cooler than Apple, they’ll reach an even more remarkable agreement that not only protects the economy, but provides happiness and entertainment for all.
(Favstocks) — Use of credit cards is beginning to trail off as more people start preferring to use cash. Fewer people are willing to go into debt and less willing to borrow money for purchases by using a credit card. Card use has been declining for some time, and higher interest rates and fees make credit cards less attractive to the cost conscious. Credit bureau TransUnion has noted a decline in the use of general purpose credit cards, according to Daily Finance. The credit rating bureau asserted in a recently released study that nearly 8 million people quit using a general purpose credit card, the kind normally issued by a bank.
(Forbes) — Investing can be extremely intimidating, from the serious newspaper articles detailing how millions will no longer be able to retire, to the angry man on television yelling about dividends, it’s no wonder so many of us are hesitant to take the leap into the money market. For many otherwise intelligent, confident people, the idea of risking hard-earned cash in a market they don’t truly understand just doesn’t make sense. But the truth is, you may have an advantage over Wall Street brokers when it comes to investing–your personal area of expertise.
(Associated Press) — Factories are churning out more goods. Consumers are spending. Government aid is fueling construction activity. But stagnant pay and weak hiring will likely restrain the economic rebound in coming months. That cautionary picture emerged from a series of economic reports Monday.Consumers stepped up their spending in March by the largest amount in five months. Yet the increase was financed out of savings. Incomes rose only slightly. Unless employers boost pay and ramp up hiring, economists say consumer spending will likely taper off and dampen the recovery.