Archive for October, 2010

Yakezie Roundup

By: MD | Date posted: October 29, 2010 (6:00 am)

We addressed a fundamental concern that plagues all 20-somethings on Green Panda Treehouse this week. We discussed the issue of renting a property and some of the pros/cons. It’s important that young people understand what goes into renting. The common axiom that views renting as “throwing money” needs to be challenged and we are here to give you all of the important decisions to help you make the best decision for you.

The best articles from the Yakezie this week were:

1. Avoiding Financial Disaster – New Work, No Debt @ Canadian Finance Blog.

2. Monkeys and Retirement Planning @ Budgeting In The Fun Stuff.

3. Dividends… Explained! @ Young And Thrifty.

4. Would You Pay For An Extravagant Wedding? @ Everyday Tips and Thoughts.

5. How You Can Get Cheaper Auto Insurance @ Invest It Wisely.

6. Tip Inflation: We’ve Got Nobody to Blame But Ourselves @ Len Penzo.

7. The Comfortable Lifestyle Business or The Big Payout? @ Financial Samurai.

8. Debt Settlement Companies Can Easily Skirt New Rules @ Consumerism Commentary.

9. The hedged nature of early retirement extreme @ Early Retirement Extreme.

10. How to Prepare for Downsizing Within Your Company @ Free From Broke.

11. Using the Time Value of Money to Inspire You to Save @ Money Help For Christians.

12. Eight Win-Win Tips For Boomerang Kids and Their Parents @ PF By The Book.

13. 3 Ways to Supplement your Income with Online Earnings @ Financially Poor.

14. Reasons You Should and Shouldn’t Have a Credit Card @ One Money Design.

15. Focus On What’s Important @ Deliver Away Debt.

Is Renting Throwing Money Away?

By: MD | Date posted: October 28, 2010 (6:00 am)

Renting and Savings

I’m sure that everyone reading this has heard the common adage that, “renting is throwing money away.” Is this really true? Are you throwing money away every time that you make your rent payment? I’m not here to answer questions for you, but I will attempt to give you all of the necessary information to make a well-informed decision on the topic. Let’s look at if renting a property in your 20s is considered wasting money:

Understand what you’re paying for.

When you pay your rent, you’re paying for a place to sleep and for a roof over your head. Just because you don’t own the unit doesn’t mean that you’re throwing your money away. You must understand that you’re essentially paying for the peace of mind of knowing that you have somewhere to sleep, bathe, eat, store your belongings, and just live. Unfortunately, there’s usually a high cost to this. Life and living isn’t cheap. Get used to it.

Flexibility.

With rent you’re much more flexible financially and strategically than with home ownership. If you want to switch homes, then you’re going to have to put your home on the market and search for a new one. This process takes a long time and it usually costs lots of money (between Lawyer and Real Estate Agent fees). As a renter you become very flexible and depending on your lease contract you won’t have to wait too long until you can switch locations.

Future work situation.

In your 20s you want to look for work opportunities all across the nation and the globe. You don’t want to limit yourself to your local town or surrounding area. It’s not always the greatest idea to choose your life destination at 22. You may want to work abroad or pursue risky job opportunities across North America. Settling down in one are too soon could really hinder your goals when it comes to exploring new job opportunities.

Your financial situation.

How much money do you earn? More importantly, how much money do you save? You need to get your finances on track before you can make the transition from renting to home ownership. How can you get your finances on track at this point;

  • Pay down student loan debt. The first thing you need to work on as a college graduate is to aggressively pay down any student debt that you may have.
  • Increase your income. Are you earning as much as you can? Perhaps you’re still looking for your dream job or your considering starting your own business. This could make renting the most viable option for you at the moment.
  • Save more money. While renting, earning more, and paying down your debt, you can begin to learn how to save more money. When you save more money you can slowly build up for a mortgage down-payment for when that day comes where you’re ready to move on.

Who do you plan on living with?

The people that you live with will make this easier much more easier. If you want to move in with a bunch of your college buddies then renting is the more ideal option. You never know who’s going to want to leave when and who’s going to want to join in. Living with your buddies while you rent a place can also really reduce your monthly expenses. If you manage to increase your income and reduce your spending by saving money on rent, then you could save up for a home purchase or any other goal that you might have.

When you make it rain in the club you’re throwing money away. Paying $20 to get into a club can also be viewed as throwing money away. Signing up for a gym membership and never going until your membership runs out is wasting money. Is renting really throwing money away?

(photo credit: aa photography)

Your Credit Card Was Stolen- What Should You Do?

By: Green Panda | Date posted: October 27, 2010 (5:00 am)

If you’re part of the 75% of college students that have at least one credit card, then you’re probaby careful with protecting it from being stolen. What if all your best efforts fail and your card is stolen? What should you do? How can you minimize its financial impact on you?

I went ahead and found out information that can help you if you’re ever in this stressful situation.  I’ve include contact information to all the major credit card companies to assist you.

Minimize Liability By Reporting the Crime Quickly

The first step after verifying that your card is stolen is calling your credit card company and reporting it. They usually have a 24 hour number you can call. You can use the list below as a reference.

  • MasterCard- 1(800) MASTERCARD /1 (800)627-8372
  • Visa- 1(800)VISA 911/ 1(800) 847-2911
  • Discover- 1(800) DISCOVER/ 1 (800)347-2683
  • American Express- 1(800) 992-3404

Why is it so important to report the card stolen as soon as possible? The Fair Credit Billing Act has provisions that minimize your liability. For example, if you called before any unauthorized charges are made, you are not liable for them. If you call and charges have been made on your card, you’re liable for $50.

When you call the customer service department, the CSR will walk you through the process. Make sure you takes notes on who you spoke to, when you spoke, and what you reported. It usually is not an issue, but if the company comes back later with any questions, you’ll have a record.

There are some questions you should expect to be asked as the represenative handles your case. They include:

  • Name, Address, etc – This is to verify your identity.
  • Account Number – You should have an old credit card statement handy.
  • Last Purchase You Made – They’ll check to see if there are any unauthorized charges already on your card.
  • Date Card Stolen – If you don’t know exactly then explain that you’re giving your best estimate.

    • They’ll cancel your card and mail you a new one. Now that you’ve taken care of your credit card, you now have to protect your credit record and identity.

    File a Police Report

    Many people neglect this, but if you’ve had your credit card stolen, you need to file a police report. When you deal with the credit card agencies and have a fraud alert on your reports, a police report will help you. Here are all the phone numbers for the 3 credit bureaus:

    • Equifax: (800) 685-1111
    • Experian: (888) 397-3742
    • TransUnion: (800) 888-4213

    Keep all your original paperwork and send the agencies copies if they request anything. Please remember to keep good notes on any conversations you have with the agencies.

    Thoughts on Stolen Credit Cards

    I’d like to get your thoughts and advice on stolen credit cards. Have you had your credit card stolen? How did your credit card company handle the situation?

    Being Cents-able at the Grocery Store

    By: Kristina | Date posted: October 26, 2010 (1:42 am)

    When we are being smart about managing our money, and we are making intelligent decisions on how we choose to spend our money, we are being Cents-able.  A lot of people do not save for the future, they live and spend their money for that day and that day only.  It is ok to live pay check to pay check if you are not worried about your future. However, I think that the majority of us would like to save some of our money to ensure future financial stability.  As they say, we never know what the future holds.

    After my housing costs, the 2nd largest percentage of my budget is spent on food; this includes both grocery shopping as well as eating out in restaurants and takeout food.  I prefer to go and get my takeout food instead of having it delivered.  This helps me save on the extra delivery charges, as well as the extra tip for the driver.  I only order delivery food about 3 times a year; and it usually involves pizza and a really big snow storm.  I also don’t eat in restaurants a lot because I feel that the price of drinks are very overrated.  I often find myself tipping for a service that was not worth 20% of my total bill.

    Here are 5 quick tips for cutting down costs while grocery shopping:

    Make a List and Check it Twice.  Write a list of everything that you need to buy with the prices beside them. When you get to the grocery stick to your price point. If the item costs more then you wanted to spend, try to buy a no name brand of your product or leave it off the list for this week.

    Avoid Making Impulse Purchases.  If it is not on the list then don’t buy it.  If you didn’t need it at home then you don’t need it while you are in the grocery store.  Don’t buy the gossip magazine that you are reading in line, when you get to the check out put the magazine back on the rack.

    Bring Cash to Pay the Bill.  Once you have added up all of your potential purchases on your list at home only bring the amount you hope to spend in cash to the grocery store.  If we have available money, we will spend it; we can avoid this by not bringing our debit and credit cards with us while grocery shopping. 

    Don’t go to the Grocery Store if You are Hungry.  This creates impulse purchases because everything looks good to eat when we are hungry.  Too often I buy an item at the grocery store because “it looks good” at the time.  In reality, it expires while it is still in my fridge.

    Shop for the week or for two weeks. Buying in bulk is cheaper. This saves us time and money.

    Photo By Jessica Mullen

    Student Saving and Spending

    By: Kristina | Date posted: October 25, 2010 (1:34 am)

    Student life is supposed to be easy.  However with the rising costs of a University Education it is becoming harder and harder for students to make ends meet.  This past week I sat down with 2 different university students as well as a recent graduate to learn how they manage their money. 

    How do you spend your pay check?

    Jessica is a 3rd year university student, studying Education, who also works part time in a retail clothing store.  She is financing her own university education by working 15 hours a week during the school year.  Jessica works two jobs during the summer when she is not in school; she works full time as an educator in a day camp, and still continues to work part time at the clothing store.  She has decided not to take out any student loans to help finance her university education.  She is currently living at home with her parents.

    Is your part time job related to your field of study?

    Jessica chooses to live at home while she is studying Education at University because it allows her to save on living expenses.  She earns approximately $300 biweekly and spends most of her money on food and clothing.  Jessica spends about $75 every two weeks on clothes. She does not spend her entire pay check every two weeks because she needs to save in order to finance her education. 

    Isabelle is a 1st year university student who works 8 hours a week. She works because her parents want her to learn valuable life lesions, such as responsibility and independence.  She currently lives in her university residence; and she is experiencing life away from her parents for the first time. School is her primary focus and she chooses not to waste her money partying and going to clubs.  Isabelle prefers to save up, and spend her extra money on expensive items such as a brand new Coach school bag. Isabelle funds the rest of her living expenses through student loans. Her philosophy is that she will borrow money now to finance her university education. She will worry about repaying her debt after she graduates and finds a full time career. 

    Are you still paying off student loans?

    Emily is a recent university graduate who majored in Dance.  She works 14 hours a week, also in a retail clothing store.  Emily’s primary focus is developing her dance career. Therefore, she chooses to spend her money on dance classes and studio rentals.  She currently lives at home and she is proud to have just paid off her VISA card.  Emily’s other expenses are minor but they do include her transportation costs, tickets to theatres and other dance productions, as well as food and clothing.  She always spends her pay check every two weeks. Emily is currently looking for an apartment with a roommate.

    If you got your last pay check on Friday was it all gone by Monday morning?

    Photo By Ralph&Jenny

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    Cool Links From Around The Web

    By: MD | Date posted: October 22, 2010 (6:00 am)

    Friday is here! Time to get caught up on some reading:

    1. The Money Crashers Top Personal Finance Bloggers List.

    2. What Is The Best Place To Open A Roth IRA? @ Amateur Asset Allocator.

    3. Is the CFA for you? How much is involved? @ Smart Financial Analyst.

    4. 40 – Is it Too Late to Invest for Retirement? @ Do Not Wait.

    5. What I’m NOT Saving Up For @ Budgets Are Sexy.

    6. Does The FICO Score Matter? @ Debt Free Adventure.

    7. How-to Save Money on Auto and Home Insurance @ Studenomics.

    8. Your Take; Would You Pay For Your Neighbor? @ The Financial Blogger.

    9. How to Use a Secured Credit Card to Build your Credit @ Twenty-Something Finances.

    10. Should You Save For Long Term Goals While Still In College? @ The Digerati Life.

    11. 8 Ways to Save Money When Going Out to Eat @ Gen X Finance.

    12. Should You Save For Long Term Goals While Still In College? @ The Digerati Life.

    13. Frightfully Fun Halloween Cupcakes @ Squawk Fox.

    14. Income Infatuation and Online Dating @ Consumerism Commentary.

    15. How I Learned To Speak A Foreign Language Fast and Free @ Wealth Pilgrim.

    Stop Waiting For Tomorrow… Take Action Now

    By: MD | Date posted: October 21, 2010 (6:00 am)

    Take action

    I’m going to get out of credit card debt. I’m going to finish that major assignment. I’m going to learn to better manage my money. I’m going to ask for a raise. I’m going to pay off my student loans. Tomorrow.

    This is the major problem. It seems like everything is going to happen tomorrow. Well guess what? Today is yesterday’s tomorrow. The problem with our generation is that were constantly delaying action. We want to do so many things at once. We all want to be productive. Yet we all slack off. I myself am completely guilty of doing this. I set up 11 different tasks to complete at once and I end up slacking on all of them. It really is much easier to say, “I’ll get to it tomorrow.”

    If you’re tired of waiting around, here are a few tips for you to take action today, instead of waiting for tomorrow…

    Get your rest. Proper rest.

    There would be weeks in the summer where I planned on getting more done with my online work. There was just one major problem: my sleep schedule was a disaster and I wasn’t getting the proper rest that I needed to perform at optimal levels. A lack of adequate sleep can take a toll on every aspect of your life. From working out to studying to being productive on your side projects. I don’t believe in always sleeping 8-10 hours, but you do need to get YOUR ideal amount of rest before you can get anything productive done.

    Small steps.

    You won’t finish that term essay before lunch today. However, if you start early enough you can get a large chunk done for today. Then over the next few days you could finish the essay off. This is much more realistic than telling yourself that you’ll complete the essay tomorrow. I strongly believe in taking small steps to accomplish huge final goals (studying a few minutes a day for the final exam, instead of last minute cramming).

    Work in one hour chunks.

    I personally find that I work best in highly effective one-hour blocks. This means that if I turn off all of my distractions and focus solely on the task at hand for one hour straight, I can get much more done than hours of trying to get something done while dealing with millions of distractions (working on a paper while checking out Facebook). These one-hour blocks can do wonders for your productivity and the best part is that we can all fit in an extra hour of work here and there.

    Consistency.

    You need to be consistent with your tasks. Going for a 2-hour workout today and then not working out for the next week won’t benefit you at all. You’ll just be sore for a few days. When I have a major project looming, I try to chip away at it piece by piece over time. Making a major payment on your credit card debt once in a while won’t kill all of your debt. You need to consistently find ways to raise additional cash to put towards your debt. Consistency is key here.

    What are you going to do next? What are your plans to take action?

    (photo credit: redagainPatti)

    7 Ways for College Students to Save and Earn Money

    By: Green Panda | Date posted: October 20, 2010 (5:00 am)

    Many people associate college student with being broke or scraping by. However that doesn’t have to be the case.  While you focus on finishing another semester academically, you should also look into building your bank accounts. Being enterprising during college is a great opportunity to test the waters.

    Here are  7 ways you can earn and save money while juggling classes.

    Earn Cash and Rewards with Online Surveys

    Don’t underestimate this option. I’ve used them to get gift certificates, presents, and some cash.

    The secret many people have with handling all the surveys is batching them during a slow time of their week. If you have an hour while you’re watching a movie at home, knock out some surveys and earn some money.

    Be a Part-time Personal Chef

    Some people will pay for a good home-cooked meal, so don’t overlook this option. See if you can star off with your neighborhood and build from there.

    Create a ‘Tip’ Jar

    Keep your all your loose change in one place and save up some money. It’s also handy if you need change for the laundry. I still have a coin jar and I’ve manage to have $40 in it right now. Once it hits $50 or so, you should take it to the bank and deposit it into a savings account.

    Assemble Furniture

    If you have a talent for building, then assembling furniture can be a side income that can pay dividends. Use Craigslist to advertise around your area to drum up some business.

    Tutor Other Students

    Don’t underestimate the income power of tutoring in a subject you are a master at. Check with your school to see how much tutors make and then decide if it’s worth it to apply for that position or to go it alone. Focus on a subject or two that you feel confident enough to be able to help someone move from a C/D student to an A/B student.

    Believe or not, pricing yourself higher will probably give you more of the business your want. If students are giving you $20-$30/hour, then they’re usually committed to getting a better grade. You’ll most likely work with fewer students, so your schedule doesn’t have to be crammed.

    Be a Waiter(ess) for a Catering Business

    The hours might be better suited for you and you can make more hourly than waitressing at some of the smaller restaurants. I worked a couple of times during semester breaks, so it hardly interfered with my schedule.

    Organize People’s Homes

    Use your neat freak skills to earn some money and help some people by organizing their closets. I think Craigslist can be helpful with this job too.

    Making Money in College

    I’d shared some ways you can have some money in college, but i know you have some ideas on it too. How did you earn some extra cash during college? What tips do you have on saving cash?

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