Get Financially Fit!
by Brion Lau
Thank God It’s Thursday!
Jul 3rd
For those of you living in the United States, you probably read the title and thought I was referring to the July 4th Independence Day holiday right?
Actually, the TGIT phrase pertains to Utah state employees. Starting next month, state employees will only work four days a week in an attempt to reduce energy costs and gasoline expenses. This new policy will impact 17,000 state employees.
Read the rest of the CNNMoney.com article here.
Question: What would you do if you had a four day work week? How about start your own business?
Want to Leave the Rat Race?
Jul 3rd
Many people dream of being able to quit their 9-to-5 job and start their own business. Few take the bold step and embark down the entrepreneurial path. Even fewer take this step and succeed. If you’ve been thinking about quitting your job to start your own business, you’ll enjoy this article by Sarah Pierce. In it, Pierce profiles three people who left the corporate world to start their own venture.
Here’s a quick summary of the profiles she describes in detail.
- A former management consultant who started his own Belgian Waffle business.
- A former investment banker who started an organic, kids snack food company.
- A former corporate vice-president who became a franchisee.
Enjoy!
Do Credit Card Rewards Rip Consumers Off?
Jul 2nd
This latest blog post is a comment on Jessica Dickler’s article on CNNMoney.com dated June 2, 2008. First, let’s begin with a summary of her key points.
- Eighty-five (85) percent of U.S. households participate in a rewards program.
- Reward cards have more complicated rules and restrictions.
- These credit cards carry a higher annual percentage rates (APR).
- Some rewards programs charge an annual fee.
- Consumers often do not use their rewards (41% of rewards cardholders).
The article is not entirely doom and gloom. The silver lining to this article is Dickler’s comments about maximizing the value of a rewards program. Here’s a quick summary.
- Participate in a program where you are a frequent consumer.
- Project spending to determine true return on your investment (your estimated annual spend vs. actual rewards).
- Opt for cash back rewards over points.
- Don’t carry a balance.**
- If your program involves airline miles, use them fast and often.
- Don’t overspend to earn your rewards.
** The only time I would consider carrying a temporary balance if the card offered a promotional 0% APR for 6-12 months. After that, pay off the entire balance to avoid higher rates.
Lifelock CEO bitten by identity theft
May 23rd
You’ve probably heard the ad below:
“My name is Todd Davis. My social security number is 457-55-5462.
I’m Todd Davis, CEO of LifeLock, and yes, that’s my real social security number*. Identity theft is one of the fastest growing crimes in America, victimizing over 10 million people a year and costing billions of dollars. So why publish my social security number? Because I’m absolutely confident LifeLock is protecting my good name and personal information, just like it will yours. And we guarantee our service up to $1 million dollars.”
Todd is the CEO of Lifelock. His ad was a bold challenge and a great marketing move in support of his services. Unfortunately, this challenge did not fall on deaf ears.
Yesterday, Jordan Robertson from the Associated Press wrote an article explaining how Davis’ ad has come back to bite him. This stunt has resulted in eighty-seven attempts to steal Davis’ identity; one man was even successful. Here come the lawsuits! Read on.
Tips to Protect Your Wealth
May 19th
This post is inspired by Mary Dalrymple’s article, “Wealth Defense: The Biggest Threat to Your Money”. Here’s a quick summary of the tips for you to consider:
- Your Bank – If you’re not getting the most out of your bank, look for better rates (other banks or alternative investments to boost your interest rate). This suggestion also applies to bank fees for checking accounts and minimum deposit amounts.
- Your Credit Cards – Are you paying an annual fee? If so, WHY? There are so many good no annual fee credit cards. Also, check your annual percentage rates. You can call your credit card company to ask for a better rate. In addition, find out if there are any promotional rate offers. Even better, go for a cash back, no annual fee credit card.
- Your Credit Report – Check your credit score and report carefully. Your score can affect the rate you’ll receive on your loans. In addition, you want to check regularly for possible signs of identity theft.
- Your Retirement Accounts – Are you taking advantage of an IRA and/or your company’s 401K plan? If not, look into this especially if your employer provides matching on your contributions. If you’re not getting the maximum match on your contributions, then you’re leaving money on the table.
- Your Brokerage Account(s) – If you’re investing through a stock brokerage, check your fees and commissions especially if you make frequent trades every year. If you invest in mutual funds, check the fees for your fund carefully because you may be leaking money in the back end. Finally, look into dividend re-investment options if your stock pays a dividend.
- Your Will – Do you have a will? Has it been updated? You don’t want your estate to go into probate.
These are just a few ideas. If you have other suggestions, feel free to comment.