Author Archive
Shoestring Office
by Christine Redlin
" …You can do a shoestring work exchange. You can help clean someone’s garage, and they can fix your computer, exchange work skills — an old barter system from the past.
Always use pencils when writing information in your desk planner. It is less expensive to use erasers than White-Out for pen entries that may change.
Use an inexpensive spiral notebook as an appointment book and hand write in the dates on each page with a section for calls and to do items. I get mine at the 99¢ Only Store.
A good source for shoestring priced computer printer cartridges is 123inkjets. See products and pricing at 123inkjets.com.
Use hip, new, recycled tote bags you can get at community events for FREE, if a vendor is giving them out as a promotional item. Or buy one at a supermarket, the 99¢ Only Store or Dollar store in your area for $1.
Put important emergency files (car/home/life insurance, list of medications, etc.) in them. Keep the totes with files handy to grab quickly in case you have to evacuate your home in an emergency. Save on the price and save on the space of another file cabinet.
To hold books on a shelf, use large (full) soup or vegetable cans, cover in colorful paper, and use as bookends. Or cover the empty can with colored paper and fill the can with rocks or sand that can be bought inexpensively at a home gardening store.
Use old phone books taped together with packing tape for a footstool under your desk — again, as it’s been said, "Necessity is the mother of invention!"
Don’t pay for an expensive business card holder or software program for business cards. Instead, put them together in stacks (alphabetically, by the name of person or company), and put a rubber band around the stack. Or scan them if you can. Put the cards face down on your computer scanner, scan, and save as a JPEG file in your computer.
You can also assemble the cards on sheets of paper by using a glue stick, Elmer’s glue, or transparent tape. Affix the cards with the glue or tape on a blank white, 8×10 sheet of paper, using both sides. Then three-hole punch each sheet, and put sheets into a three-ring binder, which you can buy for under $1. If you don’t have blank white paper, remember your ABC’s (Always Be Creative). Use pages from an old magazine. Assembling them this way, as I say, "is good enough for now, and it serves the purpose!"
If you don’t have a home computer set up, you can always use a computer and the internet for one hour at your local library for FREE.
At your company office or home office, reuse your coffee cups. Just rinse out and use again for water or coffee.
Use compact fluorescent light bulbs to save energy, money and the planet.
Get the mail for the day. Sort through it, and after opening, cut up envelopes that you will throw out and use those pieces for scratch paper. Don’t grab and use Post-It notes all the time; they are expensive. Use old scrap paper for notes…"
Partial Book Excerpt Chapter 10 From eBook: Life On A Shoestring … In Beverly Hills? Visit www.lifeonashoestringinbeverlyhills.com today!
5 Reasons You’ll Never Get Out of Debt
by Dr. Jason Cabler
Ok, Ok, "5 Reasons You’ll Never Get Out of Debt" is a pretty negative and cynical title, especially considering that I’m normally a very positive person. The reason for the title is to highlight some of the more popular "reasons" I hear from people that are complaining about their debt problem but never seem to do anything about it.
I think just about everyone with a healthy brain knows that when it comes to money, being debt free is always preferable to being in the bondage of debt, but when I ask them why they haven’t made an effort to eliminate debt from their lives, I start hearing pretty universal list of "reasons" (excuses) why.
So if you DON’T want to get out of debt and change your financial life, here are the excuses you should be using:
I Tried it For Awhile But it Didn’t Work
So at one time you actually convinced yourself that getting out of debt was a good idea and you even decided to try it. Well, if you really didn’t want to become debt free then you probably decided not to fully commit to the process. You would have only kinda, sorta tried it, and over a few months time you would have gone back to your old ways.
Point: You have to fully commit to the process if you want to become debt free. So if you don’t want debt freedom, then use this excuse, and whatever you do, don’t commit to the process.
I Just Haven’t Gotten Around to Doing It
This is the excuse for the person that has never really thought very seriously about getting out of debt. Yeah, you know it’s probably a good idea, but you’ve got other things to worry about, like making money to pay the car payments, credit card bills, and the latest acquisition for your vintage Pez dispenser collection.
Point: If you don’t want to be free from the bondages of debt, then by all means, find ways to spend your time that allow you to not think about your financial situation. The more you ignore it, the less you have to think about it.
I Don’t Know How to Get Out of Debt
This excuse is an example of a lack of education. Maybe you want to get out of debt, you feel the need to get out of debt, but how? You keep wondering how for years and never think to read a book, buy a course, or check out blogs and other resources on the internet. Since you never find out how, you never actually get out of debt.
Point: To keep yourself in perpetual debt you definitely shouldn’t educate yourself on how to do it. Don’t read books by Dave Ramsey, don’t buy a personal finance course, and definitely stay off the internet.
Debt is Just a Part of Life. Isn’t it?
You’ve decided that having debt is just a normal part of life. You say things like, "Life is expensive, right? Who’s got the kind of money to pay cash for everything? Not me! I have to have credit to buy the things I need. I need to use my credit so I can keep up my credit score (at least that’s what the credit card companies tell me I need to do)."
Point: Go ahead. Give yourself over to the debt slave mentality. Those credit card companies would never give you more credit than you can handle. Besides, who better to rely on that a credit card company or bank to give you unbiased financial advice?
I Really Don’t Like Change
Like most Americans, you’ve accumulated a pile of debt over the years. You really don’t want to be in debt, but you’re afraid you’ll have to do something different to eliminate it. You may have to sacrifice something or change some habits. Getting out of your comfort zone is, well, uncomfortable. You don’t want to get out of that comfort zone so you’ve decided to nestle down deep into the comfortable feather bed of debt slavery, peeping out from under the covers at the world outside and wondering what life could be like in the world of debt freedom, but you never leave the bed. Yay for you! You are resistant to change, and change is a bad thing, right?
There is Hope
Yes, I know some of this sounds a little ridiculous and over the top, but the lies that you tell yourself when it comes to your finances will always serve to work against you.
But what if you began telling yourself the truth and then took action to make that financial truth a reality in your life? What if you stopped the excuses? What if you actually could get out of the bondage of debt slavery? I’m here to tell you that you can. There is hope, and it’s available to you.
Stop the excuses…
Dr. Jason Cabler is a Christian personal finance blogger at Celebrating Financial Freedom. He teaches people how to live and become debt free using solid Christian and common sense principles.
Household Tips on a Shoestring
by Christine Redlin
SHOESTRING GARAGE:
…Take the garage door off. You will keep your garage cleaner and accumulate less stuff!
For 25 years, I have owned the same car. It’s not great on gas, but it is less expensive to fix compared to a modern car. Plus, the goal is not to be in debt. Taking out a car loan or a leasing is stressful, as the car company can take the car away when you can’t pay, so owning your car, in my opinion, is the best option.
Remember, God doesn’t care what kind of car you drive, as long as you are a safe driver and give people a ride when they need it.
To help remove oil leaks underneath the car, sprinkle cat litter over the spot, let it absorb for about an hour, and then shovel or sweep away. Repeat if needed.
I used Krazy Glue to secure my car antenna and saved over $100 on that repair.
As a quick shoestring savings for a car upholstery fix, I place solid blue towels (bought on sale) over the car seats for covers. For my 1962 classic Dodge, it works just fine as it is as a "for now" fix, until I can afford to get the seats recovered!
At times I can’t afford to wash my car at a professional car wash. Cars mostly accumulate light dust or dirt, so they are not that dirty.
I use bottled tap water and towels or paper towels to wipe off the car, and that is what I call a shoestring carwash, using bottled water (ha)! When I’m done, I fill the bottle again with tap water for the next time!
Use dry coffee filters to clean the glass on cars with a little glass cleaner or white vinegar. This works great on mirrors, too.
If you have bikes in the garage, use them for exercise and to save on gas money for the car.
You can also use a fishing tackle box with clear drawers to store screws and nails. You can see these items in the clear drawers.
For shoestring storage, save the expense of custom storage shelves in the garage. Buy some shelving or inexpensive plastic storage tubs. Always ask if the store has floor or display models available to buy at a reduced rate, or perhaps they have slightly defective models at a reduced price as well. Look for these items on sale at a Target, a home improvement store, online, or at a yard sale in your neighborhood.
Assemble the shelving unit and then put items in the boxes. Type or write legibly on a large label or piece of white paper the contents in the box, such as holiday decorations, pool float toys, photo albums, etc. Put the label on the boxes, close the lids, and stack them alphabetically on the shelves for easy access.
If you can’t afford the shelves, then just get some boxes to start, do the same process mentioned above, and stack them neatly together.
Excerpted from the ebook Life On A Shoestring … In Beverly Hills? www.lifeonashoestringinbeverlyhills.com Copyright 2011
Overdraft Fees Under Scrutiny Once Again
by Bill Hardekopf
Yesterday, the Consumer Financial Protection Bureau formally announced that it will investigate the overdraft fees that banks charge on checking accounts.
Overdraft fees are charged by banks when customers try to spend more money than they have in their checking account. Banks will allow the transaction, but this service is a loan from the bank and it isn't free. Banks charge a non-sufficient funds fee (NSF) that is typically between $30 and $35. A fee is charged for each transaction paid in this manner.
In July 2010, the Federal Reserve required banks to receive permission from each checking account customer before the bank provided overdraft protection for ATM and debit card transactions. Before these new rules, most banks automatically added courtesy overdraft protection to checking accounts with details and fees in the fine print. Some customers didn't realize the high price of the fee until they incurred the charge.
After the rules went into effect, banks continued to aggressively encourage their customers to "opt-in" for overdraft protection and still marketed the benefits of overdraft protection.
Overdraft fees remain a significant source of revenue for banks. In 2011, banks collected $29.5 billion from overdraft fees, according to research firm Moebs Services. That was down from $33.1 billion in 2010.
The CFBP is investigating a number of areas when it comes to overdraft fees.
Some banks are still generating overdraft fees by posting transactions from highest to lowest dollar amount, rather than in the order they occurred. This increases the risk of consumers paying overdraft fees on smaller purchases.
The agency will look into why low income and young consumers are disproportionately burdened by overdraft fees. According to a 2008 study by the Federal Deposit Insurance Corporation, 9 percent of checking accounts incur 84 percent of overdraft fees.
In addition, the CFPB is asking consumers for their input on a "penalty fee box" for bank statements. This will be a disclosure where consumers can see how much overdraft fees will be from their bank.
The judicial system is also tackling the overdraft fee. In February, Chase settled for $110 million a consumer case charging that it routinely reordered checking account transactions. In November 2011, Bank of America reached a $410 million settlement in a class-action lawsuit to compensate debit card customers who were charged excessive overdraft fees between January 2001 and May 2011.
Overdraft protection is not necessary and opting out is an easy way for consumers to avoid an expensive fee. If you don't have enough money in your account and you don't have overdraft protection, then the debit transaction will simply be declined.
If you feel more comfortable with overdraft protection, most banks offer cheaper alternatives with a link to your savings account, a credit card, or a line of credit that will cover overdrawn transactions. There is still a fee each time you overdraw your account since your bank performs a transfer, but it is typically $5-$15, much less than the standard overdraft fee. You must contact your bank to set up this alternative service, since it is not part of the opt in selection.
This is a good time to assess how you monitor your checking account. Set up a low balance alert that will notify you when your account is low. Online banking you can help avoid overdraft situations and help keep up with your account in real time.
Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.
Legal Rulings Have Dramatically Impacted Credit Card Industry
by Bill Hardekopf
Over the past four years, Congress and the Federal Reserve have passed and enacted many rules that changed the credit card industry. While the CARD Act and other reforms have received the headlines, the judicial branch has quietly left its mark on the credit card business. These legal rulings have cost banks and credit card issuers hundreds of millions of dollars, and may have indirectly led to higher rates and fees for consumers.
Whenever banks incur additional costs or have their revenue stream cut in one area, they typically make up that money by raising the rates or fees in another area. And we, the consumers, will usually be the ones paying the price for those additional rates or higher fees.
Here is a look at some of the recent legal actions that have had a dramatic effect on the credit card industry:
- Interchange fees remain a battleground between banks and retailers. Last year, regulations lowered the interchange fee that retailers had to pay banks for debit card transactions. But the rules did not address the interchange fee for credit cards. Retailers have turned to the courts to litigate their way to lower interchange payments for credit cards. Retailers want to add a fee when a customer pays with a credit card, but Visa and MasterCard currently prohibit this. A possible settlement may allow merchants to add a surcharge on credit card transactions. This would help retailers cover the cost of accepting credit cards by passing the fee to consumers and raising the cost of the purchase. Merchants have filed over 50 lawsuits since 2005 to argue that Visa, MasterCard and several banks, including Bank of America, J.P. Morgan Chase, Wells Fargo, Capital One and Citigroup, have collaborated to fix the fees that merchants pay to accept cards, a violation of antitrust laws.
The trial date is set for September, but an earlier settlement is possible. In the meantime, banks are setting aside cash to pay for the regulations. According to the Wall Street Journal, financial analysts have speculated the pre-tax bill would run about $1.2 billion to $1.8 billion if MasterCard and rival Visa Inc. settle the suit. MasterCard set aside $495 million in its fourth quarter. The Wall Street Journal reported in January that Visa set aside $1.6 billion to cover potential costs from pending merchant lawsuits.
- Discover is facing regulatory action by the Federal Deposit Insurance Corporation and the Consumer Financial Protection over its marketing of fee-based products like payment protection and other add-on services. Discover estimates that possible losses could exceed $100 million. According to the Wall Street Journal, the company has been accused in lawsuits of misleading marketing tactics to get consumers to sign up for services.
- In January, the Supreme Court ruled that consumers who sign a credit card agreement which features an arbitration clause do not have the option to dispute any charges or fees in the courtroom. This applies to almost every person who has a credit card, since nearly all credit cards have an arbitration tucked into the fine print. The arbitration clause may restrict consumers from joining class action lawsuits against a company.
- In November of 2011, a federal judge in Miami gave final approval for a $410 million settlement in a class action lawsuit over Bank of America's overdraft fee. The settlement was divided among the more than 13 million Bank of America customers who had an overdraft during the past decade. These customers claimed the bank processed debit card transactions in the order of highest to lowest dollar amount, so Bank of America could maximize the overdraft fees customers were charged.
- In November 2011, the court gave final approval of a Currency Conversion Fee Antitrust settlement over how the credit card companies charged fees when purchases were made outside the United States. Nearly $276 million was distributed to 10 million consumers to compensate them for the setting and disclosure of foreign currency conversion fees (lawyers received more than $51 million). Some of the defendants in the case were Bank of America, Chase, Citibank, MBNA, Visa, and MasterCard.
Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.
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