Money Matters
 

With all the discussion about money related issues that has been going on I thought this [URL="http://money.cnn.com/magazines/moneymag/moneymag_archive/2007/01/01/8397411/index.htm"]interview with Charles Schwab[/URL] might interest some folks in here. Also, I find this site [URL="http://www.freemoneyfinance.com/"]very informative[/URL]. I particularly like [URL="http://www.freemoneyfinance.com/2006/04/your_most_valua.html"]this article[/URL].

Re: Money Matters
 

i wonder if this stuff works for everyone? or if he kind of fell into some of his money. reading some of the articles, it seems like alittle bit of both

Re: Money Matters
 

Does anyone really save all their receipts? What receipts should you be saving? Just stuff that's deductible I'm assuming, right?

I'm referring to this article by the way

[url=http://www.freemoneyfinance.com/2006/02/7_easy_steps_to.html]Free Money Finance: 7 Easy Steps to a Faster Tax Refund[/url]

Re: Money Matters
 

[QUOTE=Mattyk72;274365]Does anyone really save all their receipts? What receipts should you be saving? Just stuff that's deductible I'm assuming, right?

I'm referring to this article by the way

[url=http://www.freemoneyfinance.com/2006/02/7_easy_steps_to.html]Free Money Finance: 7 Easy Steps to a Faster Tax Refund[/url][/QUOTE]

I don't think you should be saving every lunch and grocery receipt. These are the [URL="http://apps.irs.gov/app/stdc/popup/specified-items-popup.html"]items[/URL] you can claim as part of your sales tax deduction. I don't think you can claim the tax paid on that big screen TV but you should check on that with a CPA. Checkout the IRS' [URL="http://apps.irs.gov/app/stdc/"]tool[/URL] to help you calculate your sales tax deduction.

Re: Money Matters
 

Well, I did buy a car this year.

Re: Money Matters
 

[quote=saden1;274346]With all the discussion about money related issues that has been going on I thought this [URL="http://money.cnn.com/magazines/moneymag/moneymag_archive/2007/01/01/8397411/index.htm"]interview with Charles Schwab[/URL] might interest some folks in here. Also, I find this site [URL="http://www.freemoneyfinance.com/"]very informative[/URL]. I particularly like [URL="http://www.freemoneyfinance.com/2006/04/your_most_valua.html"]this article[/URL].[/quote]

It's tremendous advice by Schwab to buy index funds. First off, they're diversified. Secondly, they have the lowest expense ratios out there, which means the investment company takes the smallest bite out of your investment.

An actively managed mutual fund can cost you anywhere from 0.5% to 3.0% each year. If you get one with a 1% expense ratio, and the fund earns 15%, that means you only earn 14%. Index funds from Vanguard or Fidelity only cost you 0.2% or so in expenses. Great deal.

It's hard for even the best stock pickers to beat the market over the long haul. Lots can do it for one year, fewer can do it three in a row, even fewer can do it five in a row, and hardly anyone can do it 10 years in a row. The index funds are there simply to emulate the market. It costs very little to run the S&P 500 index fund; you just simply buy all the stocks in the S&P 500. The actively managed funds hire all these analysts to research stocks, trying to outperform the S&P 500. But very few can do it over the long term, and all those analysts cost you money in the form of a higher expense ratio.

Index funds are definitely your friend. There are good buys for actively managed funds too, but if they're charging you more than 1%, steer clear IMO. Fidelity has some real good ones that charge 0.7% or so. But by and large, your best off with index funds, whether it's a stock index fund or a bond index fund.

Re: Money Matters
 

The power of saving money:

Let's say you're 30. You open an IRA account and put $5,000 in the S&P 500 index fund today. You leave it there until you retire at age 65. Historically, the S&P 500 earns about 10% per year. Some years are downers, some years are way up, and overall it comes to an average of 10%. Here's what happens:

2007: $5,000
2008: $5,500
2009: $6,050
2010: $6,655
...
[B]2042 (retirement year): $140,512[/B]

Now let's say instead of saving $5,000 today, you decide to put it off and you start saving when you're 40 years old, in the year 2017.

2017: $5,000
2018: $5,500
2019: $6,050
2020: $6,655
...
[B]2042 (retirement year): $54,173[/B]

See that? You wait 10 years, and you just cost yourself about $85,000. If you had started saving at age 20 instead of age 30, you'd have $364,452 by the time you hit age 65.

Point being: [B]it is never too late[/B]. Don't wait, it just costs you money. If you're talking about saving for your child's college education, or saving for retirement, or saving for a house, whatever. Do whatever you possibly can to get time working on your side.

When it comes to saving, yesterday is gone, but today is better than tomorrow. I even like to think about Rage Against the Machine when it comes to saving money:

"It has to start somewhere, it has to start somehow. What better place than here? What better time than now?"

Re: Money Matters
 

Some might say, well I don't have $5000 to put in an IRA today. That's OK. Put in whatever you can afford. Then next year, put in what you can afford. Keep doing that. You'll be pleased with the results when all is said and done.

I personally like to have a little bit automatically withdrawn from my checking account each month and into my retirement account. That way I don't have to think about it. Some people even go a step further and have a piece of their paycheck deducted right away and sent straight to their retirement account. That way they don't even notice the money's gone. Even if it's just $25 per paycheck or something, it puts time on your side.

Re: Money Matters
 

seriously:

- first max your 401k matching (ie, if your employeer will give you free money in a ratio to the amount you invest) - its free money

-second max your roth ira (uses post tax dollars, but unlike traditional IRAs, it' not tax deferred, it's TAX FREE).

-third you can invest anything beyond that you wish into IRAs or what have you. tax deferred investments aren't as good as free money or investments that are only taxed on principle and not on interest.

debts grow faster than savings though, so accelerating mortgage payments and paying off those credit cards and loans are generally good ideas.

Re: Money Matters
 

[quote=That Guy;274532]seriously:

- first max your 401k matching (ie, if your employeer will give you free money in a ratio to the amount you invest) - its free money

-second max your roth ira (uses post tax dollars, but unlike traditional IRAs, it' not tax deferred, it's TAX FREE).

-third you can invest anything beyond that you wish into IRAs or what have you. tax deferred investments aren't as good as free money or investments that are only taxed on principle and not on interest.

debts grow faster than savings though, so accelerating mortgage payments and paying off those credit cards and loans are generally good ideas.[/quote]

Good post. There are so many articles and books out there on getting your financial situation in order. They all basically go like this:

1) Figure out how much you spend. Either track everything anally by keeping receipts and whatnot. Or at the end of the month, check out your bank and credit card statements, and total up the outflows.

2) Figure out ways to cut your spending, and start doing it. Make sure you're spending less than you're earning each month. Hopefully at least 10% less.

3) Build up an emergency nest egg. Take that 10% and sock it away in a savings account or money market. Save up enough to support yourself for 3-6 months if you were laid off. Everyone needs a financial safety net.

4) Once you have the nest egg, take that 10% of your pay, and use it to pay down high-interest debt, like credit cards. Once that stuff is paid off, go to step 5.

5) Start building up your retirement and cash savings. Keep socking away that 10% in IRAs and your savings accounts.

If your employer offers a 401K with matching, as That Guy said, DO NOT pass on it. It's like they're putting a bag of money on the table and saying here take it. To not take it would be retarded. If your employer has a 401K, before you even get started on Step 1, make sure you're contributing enough to get the full match.

Other tips:

- If you have children and/or a spouse, make sure you have life insurance. Don't leave them without a safety net if you croak. It will be hard enough on them if you died, the last thing you want is to see them struggling financially too.

- In retirement accounts, hold stock funds. First off, retirement accounts are either tax free or tax deferred (depending if it's a Roth or a Traditional). And in your cash accounts, tend to hold safer investments. Definitely don't do it the other way around. It's inefficient tax management.

- If you've got 20+ years before you retire, make sure you're mostly in stocks (aka equities). Stocks make the most money. They have down years, so you have to be willing to stomach the occasional dip. Just know that if you have enough time before you need the money, they'll surely come back up. Be willing to ride the rollercoaster and it will pay off in the end.

- Diversify your holdings. Dont put 100% of your money in 3 different stocks. Own mutual funds. This way if one company goes belly up, you're not screwed.

- Index mutual funds are the most cost efficient funds available.

- If you don't own a house/condo, save up for one as soon as you possibly can. There's no better way to build net worth. The mortgage interest is tax deductible which equals a big tax refund each year. The value of your house grows over time, so when you sell it, you'll have more money for a bigger house. And your mortgage payments help build up equity in the home, which is an asset you can draw on later.

- Don't spend money on fancy cars. Cars depreciate in value faster than just about any asset out there. Just get something reliable and safe. It's no fun, I know, but it's financially wise. Certified pre-owned with about 20K - 40K miles gets you the most bang for your buck from a depreciation standpoint.

Re: Money Matters
 

Where can I open an IRA? Is there anywhere online to do it? I've been putting it off long enough.

I've got my 401k, I've got stocks, now it's time for the IRA.

Re: Money Matters
 

[quote=Mattyk72;274578]Where can I open an IRA? Is there anywhere online to do it? I've been putting it off long enough.

I've got my 401k, I've got stocks, now it's time for the IRA.[/quote]

Most banking institutions offer many types of IRA's. I have a roth IRA setup through Bank of America [URL]http://http://www.bankofamerica.com/deposits/iras/index.cfm?template=ira_roth[/URL] which seems fairly reasonable.

Schneed and ThatGuy are definitely on the money with everything they've said. One huge suggestion I have is to build a spread sheet that lists all of your mandatory expenditures (rent, insurance, bills, etc) and also your voluntary expenditures. Like Schneed said, get a tally of your bank receipts for a particular month to draw information from. Here's a good spreadsheet if you want to get some ideas: [URL]http://office.microsoft.com/en-us/templates/TC062062791033.aspx[/URL]

Two quick ways to experience a little bit of savings are:

1) setting a specific number of times that you eat out (if any). My wife and I used to eat out anytime we didn't feel like cooking which came to be at least 2-3 times a week. Once we said "OK, we will eat out just once every two weeks" obviously we noticed a significant amount of savings.
2) Set aside a specific amount of gas and grocery money per week. We set aside $35 a week on gas for two cars (Civic & Malibu) and $50 a week on groceries which includes anything we buy at Wal-Mart. Once you can operate within those limits you'll notice that you don't nearly as many trips (gas) to the store or elsewhere.

We cut our expenditures down by about $700/month using a couple of these techniques.

Re: Money Matters
 

Does anyone else have accounts through [URL="http://home.ingdirect.com/"]ING Direct[/URL]? If you don't I highly suggest checking them out. Their rates are really great, right now the savings accounts are at 4.5% APY. I didn't notice before but I see they also offer investment products, I'll have to check that out.

Re: Money Matters
 

IRAs can be opened at [url]www.fidelity.com[/url] or [url]www.vanguard.com[/url].

Both places have the lowest expense ratios for their funds, so when you open the IRA, invest in their funds and you're good to go.

Re: Money Matters
 

[quote=Mattyk72;274582]Does anyone else have accounts through [URL="http://home.ingdirect.com/"]ING Direct[/URL]? If you don't I highly suggest checking them out. Their rates are really great, right now the savings accounts are at 4.5% APY. I didn't notice before but I see they also offer investment products, I'll have to check that out.[/quote]

Yeah ING Direct has rock solid savings accounts. That's a good choice for your core savings, your core nest egg that would be there for you if you got laid off or something.

I have mine in a Vanguard Money Market fund. Same type of deal, 4.5% or something like that.

Re: Money Matters
 

[quote=724Skinsfan;274581]Most banking institutions offer many types of IRA's. I have a roth IRA setup through Bank of America [URL]http://http://www.bankofamerica.com/deposits/iras/index.cfm?template=ira_roth[/URL] which seems fairly reasonable.

Schneed and ThatGuy are definitely on the money with everything they've said. One huge suggestion I have is to build a spread sheet that lists all of your mandatory expenditures (rent, insurance, bills, etc) and also your voluntary expenditures. Like Schneed said, get a tally of your bank receipts for a particular month to draw information from. Here's a good spreadsheet if you want to get some ideas: [URL]http://office.microsoft.com/en-us/templates/TC062062791033.aspx[/URL]

Two quick ways to experience a little bit of savings are:

1) setting a specific number of times that you eat out (if any). My wife and I used to eat out anytime we didn't feel like cooking which came to be at least 2-3 times a week. Once we said "OK, we will eat out just once every two weeks" obviously we noticed a significant amount of savings.
2) Set aside a specific amount of gas and grocery money per week. We set aside $35 a week on gas for two cars (Civic & Malibu) and $50 a week on groceries which includes anything we buy at Wal-Mart. Once you can operate within those limits you'll notice that you don't nearly as many trips (gas) to the store or elsewhere.

We cut our expenditures down by about $700/month using a couple of these techniques.[/quote]

Nice, it's amazing what you can cut out of your budget without even really missing a beat.

Some financial books talk about the "latte factor." So many people hit up Starbucks a couple times a day and buy a $4 cup of coffee each time. Let's say you are someone who buys 2 lattes every workday from Starbucks, and between the two of them you spend $10 each day. Well, each month has about 21 workdays in it. That's $210 a month on lattes.

Maybe you only buy one latte per workday. That's still $110. If you started buying Starbucks beans by the pound, grinding them up at home, making the coffee yourself, and bringing it with you in the morning in a thermal mug, you'd still have Starbucks quality coffee and you'd save boatloads of money.

That's why tracking your expenses is important. Sometimes you need to add up the numbers to realize how much you're spending on certain things. Some single types hit up bars all the time and drop tons of money on drinks. Instead, buy beer by the case (or booze by the bottle) and get a little pregame on before you head out. You'll save quite a bit in drink costs. Little things like that can go a long way.

Re: Money Matters
 

I think there is a place for Index Funds as well as no-lund funds. No Load, however, doesn't always translate to lower expese ratios. Typically with Index Funds that's the rule, but all bets are off after that.

Loaded funds may charge a fee on the front end or the back end, depending on the agreement and the class of shares you purchase. But over time, key words, over time, load funds can be just as competitve, if not more so, in expenses and returns.

If I had to go with one fund family, and there are many, that I would have to put my name on the line for someone new or experienced, it would the [B]American Funds. [/B]

They've been in the business for over 75 yrs, well respected within the industry, they have the longest tenured portfolio managers, they tend to lead the pack year after year in keeping expenses low for investors, and more importantly their funds post solid returns - many of them for decades!

Whether you're looking to start a non-retirement account, Roth IRA, Traditional IRA, or College Savings Plan, this company is as rock solid as they come - I promise you that.

Again, the argument of no load vs load has been around as long as Warpath itself has, so it's not anything new to hear it here. People will always be on both sides of that fence, and justifiably so. But I would just tell anyone to check out everything. And yes, having a Financial Advisor is good thing.

Gereally speaking, it's probably a good idea to find a seasoned professional by way of referal rather than trying to just walk through the door and handing over your money to 'some guy'. You want to ensure your long term goals and objectives mesh well with your advisor's temperment, professionalism, and experience. In a nutshell, does he or she make you feel comfortable?

Re: Money Matters
 

[quote=Schneed10;274651]Nice, it's amazing what you can cut out of your budget without even really missing a beat.

Some financial books talk about the "latte factor." So many people hit up Starbucks a couple times a day and buy a $4 cup of coffee each time. Let's say you are someone who buys 2 lattes every workday from Starbucks, and between the two of them you spend $10 each day. Well, each month has about 21 workdays in it. That's $210 a month on lattes.

Maybe you only buy one latte per workday. That's still $110. If you started buying Starbucks beans by the pound, grinding them up at home, making the coffee yourself, and bringing it with you in the morning in a thermal mug, you'd still have Starbucks quality coffee and you'd save boatloads of money.

That's why tracking your expenses is important. Sometimes you need to add up the numbers to realize how much you're spending on certain things. Some single types hit up bars all the time and drop tons of money on drinks. Instead, buy beer by the case (or booze by the bottle) and get a little pregame on before you head out. You'll save quite a bit in drink costs. Little things like that can go a long way.[/quote]

Along the lines of the latte effect I've noticed the bring your lunch to work effect. When I bring my lunch rather than eat out I save so much money. Eating out even at just a sub shop can run a good $8 for lunch... so that's potentially at least $40 per week or $160 per month!

I typically bring my lunch 4 days per week and I only eat out on Fridays, it definitely helps ease the burden on the wallet.

Re: Money Matters
 

as for insurance, if you've got 20years until retirement, you can buy decreasing term insurance that'll cover the balance of your mortgage immediately and decrease its coverage over time (meanwhile, you're paying off the mortgage, so the decrease is okay). that's the cheapest way to cover expenses should something happen, and by the time it's up (if you've not neglected saving and investing) you can be self insured.

or you can just buy general term insurance. you get more coverage and it's cheaper than whole life (you don't toast bread in your freezer, so why mix your life insurance with a high-fee investment you can't control?).

also, no new cars saves a lot of money (IF you know enough to avoid total clunker or have a friend/family member that can help you).

the most important though is to get a FIXED mortgage (not adjustable rate), try to put money down when you buy a house, and try to accelerate payments if you can afford it. Some companies offer mortgages LONGER than 30 years... AVOID THOSE. while it might let you move into a slightly bigger house, the interest you end up paying compared to the house's value is insane.

Re: Money Matters
 

[QUOTE=Mattyk72;274793]Along the lines of the latte effect I've noticed the bring your lunch to work effect. When I bring my lunch rather than eat out I save so much money. Eating out even at just a sub shop can run a good $8 for lunch... so that's potentially at least $40 per week or $160 per month!

I typically bring my lunch 4 days per week and I only eat out on Fridays, it definitely helps ease the burden on the wallet.[/QUOTE]

I also notice it helps you stay in shape. Most of the food one buy's for lunch will be of the less than healthy variety.

Re: Money Matters
 

[quote=Schneed10;274476]The power of saving money:

Let's say you're 30. You open an IRA account and put $5,000 in the S&P 500 index fund today. You leave it there until you retire at age 65. Historically, the S&P 500 earns about 10% per year. Some years are downers, some years are way up, and overall it comes to an average of 10%. Here's what happens:

2007: $5,000
2008: $5,500
2009: $6,050
2010: $6,655
...
[B]2042 (retirement year): $140,512[/B]

Now let's say instead of saving $5,000 today, you decide to put it off and you start saving when you're 40 years old, in the year 2017.

2017: $5,000
2018: $5,500
2019: $6,050
2020: $6,655
...
[B]2042 (retirement year): $54,173[/B]

See that? You wait 10 years, and you just cost yourself about $85,000. If you had started saving at age 20 instead of age 30, you'd have $364,452 by the time you hit age 65.

Point being: [B]it is never too late[/B]. Don't wait, it just costs you money. If you're talking about saving for your child's college education, or saving for retirement, or saving for a house, whatever. Do whatever you possibly can to get time working on your side.

When it comes to saving, yesterday is gone, but today is better than tomorrow. I even like to think about Rage Against the Machine when it comes to saving money:

"It has to start somewhere, it has to start somehow. What better place than here? What better time than now?"[/quote]
You just made a great argument for privatising part of Social Security.

Re: Money Matters
 

[quote=That Guy;274796]as for insurance, if you've got 20years until retirement, you can buy decreasing term insurance that'll cover the balance of your mortgage immediately and decrease its coverage over time (meanwhile, you're paying off the mortgage, so the decrease is okay). that's the cheapest way to cover expenses should something happen, and by the time it's up (if you've not neglected saving and investing) you can be self insured.

or you can just buy general term insurance. you get more coverage and it's cheaper than whole life (you don't toast bread in your freezer, so why mix your life insurance with a high-fee investment you can't control?).

also, no new cars saves a lot of money (IF you know enough to avoid total clunker or have a friend/family member that can help you).

the most important though is to get a FIXED mortgage (not adjustable rate), try to put money down when you buy a house, and try to accelerate payments if you can afford it. Some companies offer mortgages LONGER than 30 years... AVOID THOSE. while it might let you move into a slightly bigger house, the interest you end up paying compared to the house's value is insane.[/quote]
Your better off instead of a decreasing term policy just go with a level term policy which is not very expensive unless you have health issues. They tend not to cost much more than the decreasing term and give you level death benifit.

Re: Money Matters
 

[quote=FRPLG;274871]I also notice it helps you stay in shape. Most of the food one buy's for lunch will be of the less than healthy variety.[/quote]

True, though I try to mostly eat salads when I do eat out. But the temptation is definitely there as opposed to packing a lunch.

Re: Money Matters
 

[quote=firstdown;274932]You just made a great argument for privatising part of Social Security.[/quote]

Yes exactly. Privatizing social security is a brilliant idea. Too bad dumbass George W is too much of a moron to convince anybody.

People are resistant to privatizing it because they A) they view the investments as too risky (which is retarded, it would be mostly US Stocks and Bonds) and B) the financial literacy in this country is retarded. Hardly anybody understands the power of saving money and managing it properly. Personal budgeting and personal finance should be a required course in high schools.

Enough political venting. We're here to share knowledge in a judgment free forum. You hear business people say all the time that "time is money." They're right. So if you take your [U]money[/U], and you put it to work over [U]time[/U], you end up with a lot more money. Pretty much that simple. The earlier you start saving, the better off you are.

Re: Money Matters
 

[quote=Mattyk72;274793]Along the lines of the latte effect I've noticed the bring your lunch to work effect. When I bring my lunch rather than eat out I save so much money. Eating out even at just a sub shop can run a good $8 for lunch... so that's potentially at least $40 per week or $160 per month!

I typically bring my lunch 4 days per week and I only eat out on Fridays, it definitely helps ease the burden on the wallet.[/quote]

Yeah that's another HUGE one. Bringing your lunch is the best solution. With food, I like to think there are four corners of the square, putting all four together is the holy grail:

- Tastes good
- Is Cheap
- Is Healthy
- Is Convenient

It's almost impossible to put all four together. If you're eating out, someone makes it for you, so it's convenient. It usually tastes good. But it's hard to find it healthy, and it rarely is cheap. If you want to eat out for cheap, you're usually talking McD's or Wendy's, rich is real unhealthy.

Then there's making your lunch. It's cheap. It's healthy if you do it right. And usually you can make it taste good. But it's inconvenient.

In the end, I'd rather not clog my arteries, and I'd rather have the extra $160 in my pocket each month.

Re: Money Matters
 

[quote=Schneed10;274978]Personal budgeting and personal finance should be a required course in high schools.[/quote]

I completely agree.

More 'life lesson' type of classes need to be taught at earlier ages. I know when I hit 18 and I got my first credit card I had no freaking idea how to manage my money responsibly. I had plenty of friends who were even worse than me. I think by 20 we all had pretty significant credit card debt ($1,000 or more).

It took me until just a few years ago to finally erase all of my credit card debt.

Re: Money Matters
 

It's all about planning before you begin the week. On Sunday, plan your menu, go out and stock up on what you need. Make double batches so you have leftovers. Both my fiancee and I can eat five days including snacks for sixty bucks. This is including a healthy version of macaroni and cheese, turkey chili, apple cinnamon muffins, turkey meatballs, shredded chicken sandwiches.

Possibly my favorite cheap meal that has leftovers for days is the shredded chicken. Buy a shit pile of chicken, load it all up in the crockpot, pour a bottle of BBQ sauce over it, let it go all day and you're done. Put it open-faced on a half of a whole wheat bun, and it's tasty and you've got pounds of it for leftovers.

Re: Money Matters
 

[quote=Mattyk72;274981]I completely agree.

More 'life lesson' type of classes need to be taught at earlier ages. I know when I hit 18 and I got my first credit card I had no freaking idea how to manage my money responsibly. I had plenty of friends who were even worse than me. I think by 20 we all had pretty significant credit card debt ($1,000 or more).

It took me until just a few years ago to finally erase all of my credit card debt.[/quote]

Yeah, college students pretty much fall victim to this trap all the time. So many of them haven't been taught about the dangers of debt. And of course, being away from home and parents for the first time gives you a sense of freedom. And being 18 or 19 years old, people usually have a sense of invincibility, like nothing bad is ever going to happen to me. Combine all that together and you get a lethal mix when it comes to debt. Credit card companies prey upon it; you can probably all remember your college days and having credit card companies set up a table in the commons or the cafeteria where you could just stop by and sign up for a credit card.

It's dangerous, especially for females who like upscale shopping. Some end up with debts requiring monthly payments equivalent to the rent for a 2-bedroom apartment.

Credit cards are a terrible temptation.

Re: Money Matters
 

But what about the free f-ing t-shirt?! WHAT ABOUT THAT?!?!?!?!

Re: Money Matters
 

One of my fraternity brothers was the guy who ran all the Credit Card promotions on campus. While many people wanted to shoot him by the end of the semester, the fraternity made money off the number of applications that could be processed. The best prizes we gave away were shot glasses.

I didn't get my first credit card until after college. Well at least one that I used. I did sign up for a bunch in college, but cancelled accounts as soon as I got the card.

Re: Money Matters
 

[quote=Schneed10;274978]Yes exactly. Privatizing social security is a brilliant idea. Too bad dumbass George W is too much of a moron to convince anybody.

People are resistant to privatizing it because they A) they view the investments as too risky (which is retarded, it would be mostly US Stocks and Bonds) and B) the financial literacy in this country is retarded. Hardly anybody understands the power of saving money and managing it properly. Personal budgeting and personal finance should be a required course in high schools.

Enough political venting. We're here to share knowledge in a judgment free forum. You hear business people say all the time that "time is money." They're right. So if you take your [U]money[/U], and you put it to work over [U]time[/U], you end up with a lot more money. Pretty much that simple. The earlier you start saving, the better off you are.[/quote]Bush did not stand a chance with all the organizations, media, democratic party, AARP ect.. which went on a media frenzy to scare people from the idea. Even if you only used CD's to save money it would do better than SS. I agree with that financing should be required in high school.

Re: Money Matters
 

[quote=BDBohnzie;274996]One of my fraternity brothers was the guy who ran all the Credit Card promotions on campus. While many people wanted to shoot him by the end of the semester, the fraternity made money off the number of applications that could be processed. The best prizes we gave away were shot glasses.

I didn't get my first credit card until after college. Well at least one that I used. I did sign up for a bunch in college, but cancelled accounts as soon as I got the card.[/quote]
Having a credit card in college is not a bad way to start and establish your credit. Use the card in place of cash and at the end of the month use the cash to pay off the balance. I know its not that easy at a young age but it can work and is a good way on how to live within a budget.

Re: Money Matters
 

That's what I did once I graduated. Bought a few little things, and paid them off each month. I didn't do that while in college because my cash flow was sporadic at best.