Deika Morrison: Financial Security Tips + Tools

Money Mangement For The Family

2009-04-29T18:18:00.009-04:00

FYI: I just came across this gem from Kiplinger: Financial Literacy for the Whole Family. Short, but to the point with some great links! A worthwhile read!

And, let me apologize for the "blog vacation" I've been on. :)

Fact is that I've been writing a number of pieces for Jamaica National on many of these topics. So, when those become available online, I will definitely let you all know. If you live in Jamaica, and read the Jamaica Gleaner, look for the JN Money Advisor Advert in today's paper. I write the content for that every Wednesday so far, and today's topic is "Counting the Cost of Pay Day Loans". Sorry it's not available on the Gleaner's online site but it wouldn't be since it's an ad

More Great Saving Advice From The WSJ

2009-03-29T23:22:00.003-04:00

Image by emdot via Flickr

The Wall Street Journal has a great piece: Saving Matters More Than Ever

Much of it reinforces what I have told you before - prioritize, know where your money is going, build an emergency fund, pay yourself first etc. It's a short and worthwhile read. Here are some select quotes:

"Becoming a better saver is more than just cutting out the morning latte. It's changing your entire relationship to money.

Some 12.5 million Americans were unemployed at the end of February, including 2.9 million who've been jobless for six months or more. From the market's October 2007 peak through January, U.S. shareholders lost almost 85% of the capital gains they'd amassed in stock mutual funds since 1990. And while stocks rallied in March, we're not out of the woods yet.

It's time to get a grip on your money."

And

"Think big-ticket. Here's how to save hundreds of dollars a month: Set a higher deductible for home, automobile and health insurance. Refinance your mortgage. If you get a pay raise, use the windfall to trim debt and boost your bank account. Once you've set priorities, that $4 latte might be worth it after all."

And

"Eliminating a 14% credit-card interest payment is like getting a 14% risk-free investment return, and lifts a heavy emotional weight as well."

And

"When times get challenging, people get more creative," says Nathan Dungan, founder of Share Save Spend, an educational program that encourages healthy financial habits. "Be more attentive not only to how much you're saving, but where."

The Internet is a great resource. Take advantage of online retailers' discounts posted on shopping Web sites such as CouponCabin.com, DailyDeals.com, RetailMeNot.com and CoolSavings.com. Visit price-comparison sites including Bizrate.com, Shopzilla.com, PriceGrabber.com, BillShrink.com and Google.com's "Product Search" function to find bargains."

Have You Seen My Pieces In The Jamaica Gleaner?

2009-03-25T21:41:00.007-04:00

Image by Getty Images via Daylife

Some of you may know, I have been writing for the company I work for - Jamaica National Building Society (JNBS). Every Wednesday, these pieces have appeared as advertisements in the Jamaica Gleaner (so you won't find them online, you have to look in the actual paper).

Today was the third - so if you have a paper handy look for the JN Money Advisor: "Harnessing The Power of Budgeting" written by your truly (although my name isn't there).

JNBS has now posted the first one in its E-Newsletter. Subscribe! :)

Here's the piece I wrote - Saving: A Basic Guide. I'll post them as they become electronically available from JNBS. Feedback welcome!

De-Stress! Your Financial Security May Depend On It.

2009-03-24T20:13:00.005-04:00

Image by DeathByBokeh via Flickr

Although we are not in a free fall like we were in September last year, the news is not always good. And frankly, many of us feel stressed.

One of my favorite quotes is: "Stress, in addition to being itself and the result of itself, is also the cause of itself." -Hans Selye

Isn't that true?

Isn't it also true that stress prevents us from moving forward, moving on, letting go, being creative, thinking out of the box, and finding solutions? Well, if there was ever a time to think clearly and creatively, it is now

Kiplinger.com has a great short slideshow: What You Need To Know About Financial Stress

It's well worth your while to have a look - to try to look at things more positively, and practical measures to reduce financial stress and other stress than the financial stress causes. Try them! They certainly will help you with your financial security.

Some Companies Are Adding Benefits...No Joke

2009-03-17T20:42:00.007-04:00

Image by Inkyhack via Flickr

Ok, I know many of you have responsibility for staff and looking for ways to cut costs. Well, maybe you might want to think about how you make those changes. The Wall Street Journal today had a really interesting article about the need to value employees and combat sinking employee morale.

Perking Up: Some Companies Offer Surpising New Benefits

These companies have stepped up and done something out of the box. I bet you those that make the effort for the employees will be the ones that will be a part of the economic recovery, and not a casualty of the economic crisis. Think strategically! One benefit not listed here has been free financial advice. That would be a great one to help everyone through this period.

And if you don't have staff, but you are worried about your own job security, maybe you can drop this anonymously in the employee suggestion box if you have one.

WATCH: More Money For YOU By Cutting Spending

2009-03-16T20:39:00.004-04:00

Image by jtyerse via Flickr

Kiplinger.com has a great video with some quick tips to cut spending. Some categories?

Food - Restaurants and Shopping
Mortgage and Insurance
Energy
Transportation - Purchase, Insurance, Gas
Clothing - Shopping, Reducing Impulse Buys, Credit card management etc
Entertainment
Vacation - Airfare etc.
Utility and Technology Bills - Cable, Cell Phone etc., Conservation tips
Pay Down Debt - Tax Exemptions,
Life Insurance
Cash Back Credit Cards
Buying and Selling online, Shopping online, internet comparison shopping

It's just under 9 minutes. Totally worth it.

WATCH: Sesame Street Explains The Madoff Scandal

2009-03-14T18:06:00.002-04:00

Image by nickstone333 via Flickr

Self Explanatory. Only Sesame Street!

FREE Download From Oprah.com

2009-03-13T21:09:00.005-04:00

Image by klabusta via Flickr

OFFER EXPIRES 10:59am EST March 14, 2009 (That's Saturday morning).

The offer is from Oprah.com and it is a FREE download of Jean Chatzky's new financial book: The Difference - How Anyone Can Prosper Even In The Toughest Times. Click here for the download

Now, I have not read it. The download offer started today and the book is not small. BUT, here's what Wikipedia had to say about the author.

According to Wikipedia, Jean Chatzky is a graduate of the University of Pennsylvania (my alma mater) :)

She is "an American financial journalist, author and motivational speaker. Serves as AOL's official Money Coach. Chatzky has given personal financial advice on various TV shows. She is the financial editor for NBC's Today Show"

"Chatzky is also the financial editor for NBC’s Today Show, a contributing editor for More Magazine, a columnist for the New York Daily News, a contributor to The Oprah Winfrey Show and a featured money coach on Oprah's "Debt Diet" series. She also hosts a daily show on the Oprah & Friends channel, exclusively on XM Radio."

"In addition to her professional work, Chatzky is on the March of Dimes advisory council, on the Board of Directions of the Briarcliff Manor Education Foundation, supports various women's services groups and is on the board of the Nora Magid Mentorship prize at the University of Pennsylvania, which helps journalism students get a head-start in the field. She is also on the Communications Committee for the University of Pennsylvania."

It's a Free Book on a great topic - check it out!

Call Your Credit Card Companies

2009-03-11T13:22:00.018-04:00

Image via Wikipedia

If you are not aware of this you need to be.

Since the global financial markets went into a tailspin last September, credit card companies have taken it upon themselves to cancel your credit cards without discussion or warning.

So, if you have a zero balance, and think you are being so responsible by doing that - and you are - some credit card companies have just decided to cancel those cards.

Why? Well, they have a host of reasons. But whatever they may be, what I want to know is that since for the most part, people work very hard to maintain a good credit record, and work very hard to have access to affordable credit, then 1) why are these companies not required to discuss this matter of cancellation with you and 2) why is there not a process for appeal or review?

Today's Wall Street Journal did a nice short piece on this: Credit Card Issuers: Buy Something Or Else! I submit it is well worth your time to read these few paragraphs.

Now, if you are not concerned, you should be.

Credit cards serve some very useful functions. For example:

They provide access to funds when you have none - albeit at a price. Hence, you should always have one for emergencies
For many services like a rental car or a hotel room, you must provide a credit card to secure the room and also in the event of incidentals.
Credit cards allow remote purchases via the phone and internet.

So, they are very useful. I just insist that prudent money management necessitates that credit card use must be moderated and managed.

Let's talk a bit about your credit rating. A good credit rating gives you access to credit, and access to lower rates. Did you know that when your credit cards are canceled, your credit rating could be negatively affected? Your credit score is determined by your debt relative to credit available. So when a card is canceled, your available credit falls.

Oh, and by the way, if you are depending on your rewards from any card - zero balances or not - you need to rethink that. Check out CNBC's article today: Credit Card Firms Slash Rewards To Cushion Losses

My two cents? Go call your credit card companies. Decide which cards you want to keep. And then if you must make small purchases regularly to keep those cards that you have zero balances on, you may want to consider doing so to keep your credit lines open. But make sure you don't sacrifice your debt management for it. And as for the 'by the way" with the rewards, I'd use 'em before I lose 'em.

Trying To Prevent Another Global Mess....

2009-03-10T23:01:00.009-04:00

Image via Wikipedia

When I posted the video about how we got into this global mess, I received a lot of feedback. Some people asked what do we do now - how do we get out and prevent this from happening again?

Well, yesterday, on my other blog (apologies if you read both), I outlined 7 things I would do if it were up to me to fix this mess and try to protect us all from going through this again. It has now dawned on me that some of you might find that post interesting:

1) Because it explains some of what has gone radically wrong

2) Just because I was asked for some solutions.

Here's the post: My Wish List - The New Global Financial Architecture

AND.......

Ben Bernanke gave a fabulous speech today about a proposed way forward (please watch the Q & A of the video if you have been confused). So here's my post on that too: President Obama, Congress, G20 - Are You ALL Listening?

Spend! Really, It's Ok If......

2009-03-09T22:46:00.008-04:00

Image by Darren Hester via Flickr

Now I am the first one to tell you to save, save, save. But, I do believe in balance. And I do believe that there are some places that you should not necessarily cut. And yes, there are some places where it is actually prudent to spend. Or just occasionally, you just need to allow yourself a little spending to feel, well normal :)

So to be fair, I've now found a reasonable short article to advise you when to spend. Marketwatch.com (a WSJ subsidiary): When it pays to pay: During tough times don't cut back on everything.

A worthwhile read.

Money Saving Tips By Google - A Genius Approach

2009-03-07T13:01:00.004-05:00

Image by Ann Althouse via Flickr

Google is really brilliant.

Know what they have done now? They have a site called the Tip Jar: Take a Tip, Share a Tip.

This site is to access and share very quick tips to save money. Here's what is so great about it:

First, it is full of tips in several categories. See below categories and links:

Misc

Second, it is an interactive community of saving. You can vote yes or no on a tip. You are asked to provide tips to share. And you can share tips easily because each tip has its own URL

Third, it always has fresh content. People are providing more tips. People are voting on tips letting you know which are the best or most useful.

So, have a look. Bookmark the site!

Specials on Starbucks, Wrigley, Orbit, Altoids etc.

2009-03-05T22:22:00.005-05:00

Image by faeryboots via Flickr

It is now March and once again, Amazon.com has some general and specific specials for you in Grocery

General Specials (click here)

Specific Specials:

Annie’s Homegrown Mac & Cheese – Save up to 30% on eligible Annie’s products; 45% with Subscribe and Save

Starbucks Coffee - Save $10 when you purchase two eligible Starbucks products

Altoids, Wrigley, and Orbit - Save $15 when you spend $39 on eligible products

Pet Food and Snacks – Save up to 50% on eligible pet food and snack products

Don't forget to check for free shipping!

How To Save Money - VIDEO

2009-03-05T19:56:00.002-05:00

OK, I ran a poll and it seems you want to hear more about saving.

So, since I am always looking for innovative ways to share information, I came across this video on wikiHow.

I thought this guy was good, and funny. :)

Hope you enjoy it! Let me know:

How to Save Money

Morningstar's List To Cut Expenses

2009-03-03T18:06:00.011-05:00

Image by .p a n e. via Flickr

Investors out there, I know you are familiar with this company - Morningstar - and the work they do as a leading provider of quality investment research.

Well, I came across this great article today from Morningstar.com: 101 Ways to Cut Expenses: Follow These Personal Spending Tips And Watch The Savings Pile Up

And check out the second line of the article: " But before investors can tackle where to put the money, they need to tackle where to find the money. "

Well said. Since I know many of you are tacking this "where to find the money" issue, I thought I would share this piece. This is a great reference. Have a look. I know, not all of them are feasible. I know not all of them are possible. And, yes, I know, not all of them we are even willing to do.

But it's 101 tips!

Out of that you must be able to find even one! And remember, doing even one is a step in the right direction.

And a tip from me? Look at the image in this post. See the Post It Notes on the computer screen? When you pick the expense cutting tips you can do of the 101 listed, there's a nice way to remember to do them - use Post It notes to remind you! :)

BIG SAVINGS! We Did It! IT WORKS!

2009-03-02T17:02:00.005-05:00

Image by armisteadbooker via Flickr

Ok! I can barely contain my excitement here.

Do you remember this post: Reducing Bills! Electricity Bills! Phone Bills! Water Bills!

Do you remember me telling you that YOU have control over consumption? Do you remember the tips? And do you remember me appointing myself electricity police?

Well, let me update you.

After one month of being the Electricity Police, I am delighted to announce that our electricity bill came this weekend with a 26.83% reduction in consumption on a kWh basis. Now, that is incredible. We used 26.83% less electricity this month than we did last month. That is not a typo - almost twenty seven percent!

Did we also get a dollar figure decrease? Well, as it turns out, we did!! We got a 20.49% decrease in the dollar amount of the bill. Not a typo - almost twenty one percent! I'm not kidding.

Want to know what that means. Dollar for dollar, we saved more in a month that we can get in ONE WHOLE YEAR in after tax interest on any savings account or reputable investment that I am aware of. And because we've saved that money, it's sitting in the bank earning interest, or available for investment to earn a return. How do you like them apples?

And, do you all know what electricity costs in Jamaica? Well, a 20.49% reduction in the light bill is a nice amount of money. And even if they dropped the rates, we had a 26.83% reduction in consumption - we did that, not the electricity utility company - so we were well on our way to some kind of savings.

If you want to see these savings for yourself, here's what you should do:

Call a family meeting and let all members of the family know this is a family project, and each person has to do his or her part

Find out all the big uses of electricity. Other than putting in energy savers wherever we could, we were vigilant with what was already there. We were vigilant in putting the heater on a daily schedule so it didn't stay on all day. We organized the use of the stove, washing machine, the microwave and the iron. There are ways to use all of those, accomplish what you need to without wasting electricity. We kept Air Conditioning use to a minimum, plugged out appliances (and cell phone chargers) when they were not in use, and turned off lights and fans when rooms were empty.

Appoint an Electricity Police or volunteer yourself. This really works better if someone is willing to do what people forget to do, and/or embarrass and fine those who do not do what they should :)

In no way was anyone inconvenienced. And after seeing this reduction, we are more motivated than ever to keep at it!

In Plain English: What YOU Get From The Stimulus

2009-02-27T21:21:00.004-05:00

Image by Steve Wampler via Flickr

Kiplinger.com has done a great piece:

What The Stimulus Means For You (the article)

What The Stimulus Means For You (the slideshow)

If you want to sift through all the chatter, and all the pros and cons - and especially all the political grandstanding - here is the plain English SHORT version of what is in this for YOU.

Each benefit is described in no more than a paragraph each. Want to hear the first line describing each benefit (their words):

A bigger paycheck

A bonus for retirees

Relief from the AMT

A tax break on new wheels

A break on college tuition

Lifeboats for the laid-off

It's worth reading, and watching. And it's definitely worth sharing! :)

Increase Your Earning Potential. And Have Fun Doing It!

2009-02-26T20:07:00.009-05:00

Image by mikebaird via Flickr

Tonight, I'm doing something different. I'm talking about increasing your earning potential And I'm telling you two personal stories to get the message across.

Take it from me. Do yourself a huge favor and sign up for a class. I heard that collective "Aargh!" :) No, you don't have to go back to school and read tons of books (although that's one of my favorite activities). What I am recommending is taking one of your personal favorite activities - could be a hobby or an interest - and getting some structured skill development in that area.

Let me tell you what I have done. I've decided to get serious about my hobbies. I've decided to do my own research, practice what I learn, and seek technical training in formal settings. A class is a great way to make new friends with like minded people with similar interests, and also learn a lot of information in an effective way. I'm investing in myself and having a ball doing so by turning a hobby into an potential source of income. Try it. It doesn't have to take up all your time, or replace your main source of income, but in these days of uncertainty, diversifying your skill set is a wise move. Invest in yourself, it's worth it.

Which hobbies did I get serious about?

Well, first, I decided to get serious about photography. What does this have to do with earning potential? Everything.

As it turns out, there are tons of opportunities, especially now with the World Wide Web, to earn a bit of extra income from photography. With a bit of research you can match your interest with a willing market of buyers. Don't believe me? Well, there's stock photos, there's submissions to local newspapers, there's also work as art etc. I went to a great exhibition last Sunday - Just Photographs - and WOW what amazing work by professionals. And some nice prices for the work too. I'm taking a class now and loving every second of it. I have learned so much from my classmates and my instructor. And I have met people who I share a common interest with. It's been awesome!

Second, I decided to get serious about blogging. What does this have to do with earning potential? Everything.

I've been blogging since late last year. I've moved from one blog to two blogs. I blog everyday now. I do tons of research on how to blog, best practices, and how to increase earning potential from blogging. It started as an vehicle of expression - I'm pretty opinionated if you couldn't tell :) But then I started these personal finance experiments to help others in this economic downturn. I knew my readers are looking for ways to earn more money. So when I learned that people make money from blogging, I've tried some of the monetization techniques to see if they work so I can tell my readers how to do it. It's just some ads, really. But there's a whole skill to doing just that effectively. If I get it right, I'll be sure to share.

Blogging - with or without monetization - is actually a real skill and a very hot trend. I can use blogging in my full time job, or call upon that skill one day if I wish to to earn some additional income. So, taking my own advice, I took a one day seminar today and learned a ton! Not only am I investing in myself, I'm doing something fun, I am making new friends who have similar interests. If you like writing and knowledge sharing, and you are comfortable with the Internet, social media and cyberspace, you might want to try this.

But hey, those are just my examples of how I am taking my hobbies and turning them into the potential to be much more.

What do you like to do? Teach? Write? Name it.

Who knows, not only will you be happier if you do more of those things that you like to do, they may just help to pay the bills! :)

Download Tax Software

2009-02-25T22:45:00.003-05:00

Image via CrunchBase

FYI:

If you need some help with your taxes, now Amazon is offering Tax Software Downloads.

Need Some Help With Saving?

2009-02-25T17:16:00.004-05:00

Image by Getty Images via Daylife

So often people tell me that they really understand the importance of saving, feel the need to save, want to save, but just cannot see where the money will come from. They look at their budgets and see fixed and/or rising expenses. And they see fixed and/or decreasing income.

Well, sometimes, it takes a second pair of eyes to see where the savings can come from.

If you are one of those people I described above, and if you feel comfortable in seeking help, talk to a friend or a professional who is not as personally committed to your expense categories as you may be. He or she may be able show you your expenses in another light. Or, you can read this great piece from from Kiplinger.com: Save $50 a day (and feel no pain).

First of all, the article has tons of suggestions to save more than $50.

Second, the article has sub-sections to "pay less " for banking and loans, health and insurance costs, utilities, food, transportation, investing costs, leisure, high tech and high fashion.

Third, the article provides a link to actual stories of "super savers".

Now, you don't have to do all of these suggestions. Many of them may not work for you. But there are so many suggestions, it's likely that even one will work for you and adopting even one would be a start. And remember, everything you do not spend but save instead represents an opportunity to earn interest on that saving. :)

Words Of Wisdom

2009-02-24T17:51:00.006-05:00

Image by Bohman via Flickr

I came across this gem today: 7 Keys to Financial Security from The Wisdom Journal.

It's a short piece that explains these 7 keys (their titles)

1. Live on less than you earn

2. Invest in your own stock

3. Insure yourself and your loved ones

4. Pay yourself first

5. Avoid borrowing money

6. Invest in boring things

7. Diversify, diversify, diversify

A worthwhile read!

A Clarification Worth Noting

2009-02-23T20:40:00.013-05:00

Image via Wikipedia

Ok, something came to my attention today and I think it merits a blog post. If you already know this, I apologize for boring you.

Deposit-taking institutions are where you SAVE

Technically, you INVEST with licensed securities dealers or in a business. Although the term "invest" is used with "alternative investments" and Ponzi schemes, they are completely different from licensed and regulated forms of investments.

Deposit-taking institutions and licensed securities dealers are not the same. If you are unclear about what category a certain entity is, ask them or ask someone you trust

Deposit-taking institutions have JDIC or FDIC insured deposits. What does that mean? That means that the institutions have paid a premium to the Government to insure your deposits. Deposit Insurance was introduced as a safety net measure - should the institution that has your deposits get into difficulties, the Government will ensure that you get back your deposit up to a certain limit. The FDIC has a limit of US$100,000 per depositor which was temporarily increased until December 31, 2009 to US$250,000 per depositor. The JDIC has a limit of J$600,000.

Investments are risky and have no safety net. Some investments are riskier than others. Higher interest rates generally reflect higher risk premiums. Interest rates are determined by the base rate (determined by the Central Bank) plus a spread. If you notice, deposit-taking institutions have lower rates than all other "investment" entities - licensed or otherwise.

Licensed securities dealers are licensed and regulated by the Government. That is why they are specifically called "licensed securities dealers"

Licensed securities dealers do not offer insurance on your investments. Deposit insurance is for deposits in deposit-taking institutions. There are reasons why these terms are used.

Investments in Government paper - any Government - are not equivalent to deposit insurance. Whether you make those investments through a money market fund, or buy Government paper directly, the fact is that investments operate differently from insurance. I have heard that people are of the view that since the Government has never defaulted - like Jamaica and the US - then that is the same as insurance. And therefore, the argument is that investments in Government paper is the same as saving. That is not true. Some could argue that Government paper is "as safe as saving", but it is technically not saving. Investments are not insured; savings are insured up to a limit. Deposit insurance exists for a certain purpose, and that purpose is specifically to provide a safety net for savings.

Therefore, I urge you to think about your asset allocations. Save FIRST. Maximize the insured portion, even if you are not getting the high interest rates some other institutions are offering. Make sure you distinguish between deposit-taking and licensed securities dealers. When you have sufficient savings (insured), then think about how much you wish to invest, and what your risk/reward tolerance is.

Food For Thought

2009-02-22T14:36:00.004-05:00

Image via Wikipedia

A few weeks ago, the Jamaica Gleaner ran an excellent piece in Money Management: You are financially unprepared if....

I have found that some people have great intentions with regard to money management, but have not fully grasped the context of how the various pieces fit together. For example:

So maybe they go looking for great deals, but charge purchases on credit cards and pay only the minimum until it is paid off. That defeats the purpose of money management.

Others, have a difficult time prioritizing and saving a nest egg, because they see the "now" and not the "what if". That also defeats the purpose of money management

In this piece above stated, the author gives a great job of spelling out where people typically make the big mistakes, and her opinion of what you should do. I would not necessarily advocate every single one of her solutions concurrently, because it really depends on your personal circumstances. However, the basic arguments she makes are very sound.

A worthwhile read!

Brilliant Visual: How We Got Into This Global Mess

2009-02-21T06:59:00.005-05:00

If you have been confused by the Credit Crisis, what it means, what is has to do with the average person, what CDOs are, what leverage did etc. then this is the answer for you.

Watch this video in two parts:

The Crisis of Credit Visualized: Part 1

The Crisis of Credit Visualized: Part 2

Save More: 20 Quick Tips

2009-02-19T21:04:00.009-05:00

Image via Wikipedia

This is a dated article, but a gem.

Kiplinger: 20 Small Ways to Save Big

Very practical ideas and you don't have to even do all of them. Even one would be a start.

Plus the articles has tons of links you may find interesting.

An Emergency Fund - The Basics

2009-02-18T20:48:00.005-05:00

Image by lantzilla via Flickr

I came across this great article from Investopedia.com today: Build Yourself An Emergency Fund.

---

It starts:

"Unlike the luxuries that so many of us purchase with our credit cards, having an emergency fund is a necessity"(my emphasis).

---

It notes:

"If you are among the many investors who don't have a "rainy day" fund stashed away in case of emergencies, there's no time like the present to start saving " (my emphasis, but note the word SAVING)

---

It reemphasizes:

"The amount of money required to fund a proper emergency fund is certainly significant, but we live in uncertain times with uncertain economies. Corporate loyalty is a thing of the past and unemployment can happen unexpectedly, usually at the worst possible moment."

----

It's a short piece that covers:

Why
How much
Techniques to get it started and build it

It is well worth your time to read it.

Better To Know

2009-02-17T22:05:00.005-05:00

Image via Wikipedia

Click this link for a text of the actual SEC Complaint against R. Allen Stanford et. al

Interesting Read.

Huffington Post: Sir R. Allen Stanford Charged by SEC for Multi-Billion Dollar Fraud.

Too Close To Home

2009-02-16T20:19:00.008-05:00

Image by Oberazzi via Flickr

In keeping with my "buyer beware", "seek a second opinion", and "make sure you ask questions" comments, the below stated is an FYI:

Article from the Huffington Post: R. Allen Stanford Under Investigation By The SEC, FINRA and FBI.

And this from the Wall Street Journal: Stanford Depositors Flock to Antigua for Redemptions

Welcome To The Adjustment Club

2009-02-15T22:41:00.009-05:00

Image via Wikipedia

Many of us are used to a certain lifestyle. Quite frankly, we balk at the idea of certain products, services or even a change in the way we used to do things.

Generally, if one moves from limited resources to what some believe to be "unlimited" resources (although there is no such thing), it's so easy to adjust one's lifestyle from the "limited" to the "unlimited". Yet for some, it's not just hard, it's downright painful to adjust the other way - from what some thought was "unlimited" to moderation or budgeting.

Well, the world has changed. "Unlimited" does not exist. And "limited" is where it is at. So let me introduce you to the "Adjustment Club". Here's how it works.

First, all the people in the world are members. No one singled you out. The world underwent a radical shift. Like an earthquake, we are still feeling the aftershocks. Like a hurricane, some countries still continue to be hit, while others (like Jamaica) are feeling the outer bands hoping to be spared a direct hit. You get the picture. So we are all in this "Adjustment Club"

Second, we are all adjusting to the same relative place. That place is survival in the short term, and sustainability in the long term. As long as the markets remain volatile, and until the various global stimulus plans kick in all over the world to get the global economy growing again, all of us are living in a heightened state of uncertainty that was imposed on the majority of us. So, we are all heading to the same level of adjustment - survival in the short term, sustainability in the long term

Third, the amount of adjustment does depend on your particular circumstances. So, if you are super conservative like I am, I have relatively little adjustment to do. If you have always been seized with the importance of money management, then you have little adjustment to do. If you have always budgeted, and are fairly committed to your budget, then you have very little adjustments to do. However, if you are more of a risk taker, was never interested in money management, or have a generous budget for your expenses etc., you have more of an adjustment to do because you have to accept that all these factors are critical for the short term and the long term, and then you have to learn how to do them, and then you have to be committed to doing them. If money management and conservatism is not your thing, or does not come naturally to you, please remember that we are all in this adjustment club. It's just something we all must do.

Fourth, you can ease the pain of adjustment and speed up the time it takes to adjust. We know what the external environment is like, and how quickly things are changing. We know nothing is certain but uncertainty. To waste time being upset and frustrated about things you have no control over robs you of precious time to do more productive things to ease your adjustment.

A few adjustment basics:

Priority 1: Develop a sizable Emergency Savings Fund (not with an Investment Product)

Quickly develop a budget if you don't have one, and adjust your budget if you do have one. Be realistic - so reduce inflows and increase expenses for budgetary purposes. Don't forget contingencies. If budgeting is difficult for you, seek help if you need to.

Commit to managing and reducing your expenses. What can you do with less of? What can you give up all together? All members of the Adjustment Club are sacrificing something. Some members are sacrificing much more than others. What are you willing to sacrifice?

Avoid taking on debt if you can, manage what you have. If you can, pay down the higher interest rate debt first. But don't eliminate your savings or your retirement funds to pay down debt.

Ensure you are as productive at work as you possibly can be. That way you are more likely to be viewed as a valuable member of the team which is likely to make management think twice if and when redundancies happen

If you are made redundant, or volunteer for redundancies (like some programs offered by some companies), do not squander your redundancy payment. You do not know when you will have a steady flow of income again, and monthly obligations don't go on a holiday because you are unemployed. Take your redundancy payment and place it is a solid, conservative deposit-taking licensed JDIC insured (FDIC insured if you are in the US) financial institution - i.e. in a savings account not investment - until you find the best method to allocate it. It not not prudent to use all your redundancy for any investment - whether an investment product or a business. If you are being sold a financial product, and you are not sure if it is an investment, ask for clarification and get a second opinion. The absolute worst time to speculate or take risks is with your redundancy payment.

Look for alternative means of supplementing your income - as long as it doesn't interfere with your full time job, conflict with your full time job, and importantly is not prohibited by your full time job. So perhaps you can tutor students, sell your amazing digital photographs, start a blog and monetize it etc. Your options depends on what talents, interests and skills you have.

Those are just a few ideas about the basics.

This is no time for any of us in the Adjustment Club to bury our heads in the sand.

It is time to make this adjustment as painless as possible. We didn't ask to be in the Adjustment Club, but here it is and it is not going away. So let's make the best of it.

There was a world before all the excess. It's not like we are adjusting to a completely different reality.

Likewise, there was a world of depression and war, and then war again. So it could be worse. Let's not help it get there. Like good club members, each of us needs to do our own adjustment, and help our fellow club members in theirs.

Same Blog, New Look!

2009-02-15T16:54:00.006-05:00

The blog looks different, I know. That's deliberate. I did it for you, the readers.

All the original posts are there. A new one will be right here on this site by tonight

I did an overhaul so that the site is more user-friendly. I specifically targeted elimination of "unnecessary clutter"

It's a work in progress, so please do browse the site from time to time to see if I've added anything special. There will always be "Amazon Specials" which are special links to the particular page from Amazon.com. Those will change from time to time, depending on what Amazon.com is offering.

I've also added a Share This icon and link below each post. Click on it and you can choose how you would like to share with any or all 20 different social media outlets (Digg, Facebook etc). The words below the posts also work, but Share This has more options.

I've also added a slide show of my photographs from my photography class (just below the Bloomberg Channel). This has been one of my experiments, as many people turn their hobbies into means of making extra income. I just like taking pictures, but since I wanted to help many of my readers to find new ways to supplementing their income, I will do a series on photography. I've already promised a series on blogging, once the results of the income generation experiments come in. Perhaps you will be inspired to get more serious about your hobby - or start a hobby - and find the income earning potential therein :)

Hope you like the changes. Comments welcome! :)

Are You Ready For Hurricane ED?

2009-02-12T20:02:00.012-05:00

Image by ((april)) via Flickr

Tonight is a "Jamaica" post. So, apologies to my overseas readers if you don't think it's relevant. It's about tips for surviving an economic downturn, so you might want to have a quick read.

This is what we are facing:

job losses, wage freezes etc.
accelerated depreciation that the country's leadership is now working to slow in a structured manner
high interest rates
electricity rates have been increased because of the accelerated depreciation
the government is reported to be considering - I repeat, just reported to be considering because there is no decision or even confirmation that they are actually considering - increasing GCT and adding a gas tax, but considering coupling that with lowering income tax

Let me translate this:

The light bill is going up - again. And oil prices are still low.

Anything you normally buy is going up because we are an import economy - so between the depreciation and the high interest rates, businesses are passing on their increased costs to you. Don't get mad, that's what businesses do. And if they have higher costs, they have to pass on at least some portion of them.

Other than inflation eating away at your hard earned money, your disposable income is going down if there are no or limited wage increases.

In the midst of it all, no jobs are guaranteed.

Taxes, albeit hypothetical, increase your costs - of gas and all consumables. But hopefully, you get more income if income taxes are reduced. But it would have to be a big enough reduction to cover the increased cost of living to really make a difference.

So, what am I doing? I'm hunkering down like we do during hurricane season. You know, you get a bulletin, it may not hit, but you have stocked up and locked up tight just in case.

Well, let's call this one Hurricane Economic Downturn (Hurricane ED for short). And Hurricane ED has taken the world by storm. Some countries are hurt more than others, and are still getting battered.

Despite what you may think, we haven't been hit yet; we're feeling the outer bands. Look around the world and you'll see that this is true. Now, we can be spared a direct hit. Or we can get a hit - direct or otherwise. But, like all hurricanes, if you are prepared, the more prepared you are, the quicker you can recover.

-----

My top three Hurricane ED Preparation and Survival Tips?

1. Save save save. Expenses are increasing outside of your control. Setting aside more money to be able to meet these expenses is the smartest thing you could do. Everybody should normally have an "Emergency Fund". This is a money management basic. If you don't have an "Emergency Fund", start one. If you do have an "Emergency Fund", pump it up.

2. Budget and stick to it. If you budget, look at it again. And be realistic with the expenses (they are going up) and your inflows (they are flat at best). Not only look at it in terms of cost increases, but look at what can be cut. You don't have to turn your life around in a panic, but remember we talked about seriously reducing electricity consumption, for example? Reducing Bills! - Electricity Bills! Phone Biils! Water Bills! That might be a good place to start.

3. Seriously evaluate debt before you take it on. This is important. General living expenses are going up. Taking on debt makes it even more difficult for you to meet expenses.

----

Now, we know how to prepare for and ride through hurricanes. This is really not that different.

We have to plan.
We have to act.
And we have to help each other.

We have done it time and time again.....and it's time to do it now.

4 Things You Must Know About Investing

2009-02-11T19:29:00.008-05:00

Image via Wikipedia

As promised, I am venturing into some investing basics.

But, wait, before you get excited, I have no hot stock tips.

In fact, that is exactly what this post is about - what you need to know before you listen to other people.

So, although these are just a few basics, here are 4 "must knows", in my humble opinion:

Saving and Investing are two completely different concepts. Yes, I know I probably sound like a broken record, but after what has happened in the world - both close to home and abroad - I feel like this point must be made again and again: You must save, you do not have to invest. When you invest, you are taking a risk that you could lose your entire principal. That is the reality. And you take that risk in expectation of a higher return than you can get on money you save. On the other hand, when you save, a portion of your saving in a regulated licensed deposit-taking institution is insured to a limit. Some people use the terms "saving" and "investing" interchangeably but in reality they are not. Quick Tip: Given the proliferation of financial products and Ponzi schemes, make sure you get details of what happens to your principal. Just ask. These days, return of principal is just as, if not more important than return on principal.

Your savings, obligations and age matter - a lot! In other words, don't invest until you have a comfortable cushion of savings. Experts say 3-36 months of salary. In this environment of uncertainty in the cost of living and job losses, 3 months worth of savings is far too low in my humble opinion. If you have high expenses and obligations, then you cannot afford to risk money that you could lose (remember, that is what an investment is). Finally, the older you get, the less risk you can afford to take. That makes sense because your potential working years are declining, and you are coming closer to retirement.

Do not invest in things you do not understand. How many times have people tried to convince you of "a sure thing", and told you "here's a hot tip"? It may very well be, but if the person telling you cannot explain the investment and why it's such a "hot tip" or a "sure thing", then that's grounds to doubt it. And it would be prudent to understand what influences the investment - what external factors are likely to make the investment do well or do badly. No one is expecting you to be an expert, but it's your money - you should be able to evaluate if what the "expert" says makes sense.

Know Yourself. Believe it or not, this is one of the most critical things about investing - knowing your own risk-tolerance. You may get a great tip, understand what the investment entails, understand that it's an investment (as opposed to savings), but it may just be too risky for you. On the other hand, remember that not all investments carry the same risk, and some - under the right circumstances once you have sufficient savings tucked away - may just be right for you.

Google Developing Service To Help You Track Your Electricity Consumption

2009-02-10T22:40:00.002-05:00

Google is developing a service to help you track your electricity consumption. Read the Article at HuffingtonPost. Video included.

Since our bills in Jamaica are going up by 9% this month - as per this evening's news on Go Jamaica: Consumers To Pay More For Electricity, can someone tell me when this will be ready for use in Jamaica?

Remember this post? Reducing Bills! Electricity Bills, Phone Bills Water Bills! I guess my position as Electricity Police in my house just became permanent.

Quick Money Management Tips - Free Video Link Here

2009-02-10T18:32:00.009-05:00

Cover via Amazon

When I started this blog, I recommended David Bach's Smart Women Finish Rich to get you started with making personal finance doable. It's very logical and straightforward.

He has other versions for couples etc., but substantially, the basics are the same. Another very popular one is Start Late Finish Rich. There is an Amazon search link to the right of this post. Just type in "David Bach" and see all the options.

Now, David Bach has a website where he shows all the clips where he appears on program such as Larry King Live, The Today Show, Regis and Kelly etc.

Here is the link.

Now these videos don't replace the book, in my opinion. But its a great way to get loads of quick and easy tips. Not only can you learn from him, you can learn from the other guests as well as the people who call in. Sometimes the programs he appears on cover job hunting etc, so this video link is a great resource.

Hope you learn something new! I did!

Coach Is In! Flying, That Is.

2009-02-09T23:22:00.007-05:00

Image via Wikipedia

I do a lot of reading. And article after article tells me "thrift is in", "recessionistas" are the former "fashionistas" etc.

So, I was getting the picture - people are saving and finding ways to make their dollars stretch without too much disruption to their lives. Recessionistas, after all are still fashionable - they just pay less. :)

Well, this article and slide show caught my eye. It seems that flying coach is "in".

See for yourself in this interesting piece from the Huffington Post: Flying Coach: Geithner Part of BigWig Trend.

We've Moved!

2009-02-09T20:04:00.006-05:00

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In order to provide more targeted and useful information to you, my readers, the following changes have been made:

Site rename: Financial Security: Tips + Tools

Site URL: http://financialsecurity2009.blogspot.com

If you have subscribed by feed, please note that the old feeds will no longer work. Please resubscribe.

This will still be the place for tips and tools for earning, saving, budgeting, money management, personal finance etc. The content will not change, but become more focused to provide you with the most useful information possible.

Thanks for your patience!

Specials at Amazon.com - Grocery, etc.

2009-02-08T11:20:00.012-05:00

Image by japi14 via Flickr

I've found some Amazon Specials in groceries. If you click on the blue links, you will get straight to the correct page.

Specific specials:

Axe, Lipton, Slimfast and Other Unilever Brands: Save $25 on orders of $75 or more

La Vazza Coffee: Save 15% (30% on Subscribe and Save Orders)

Kitchens of India Meals: Save 30% (40% on Subscribe and Save Orders)

Omron Health Monitors:Save $10 or more on pedometers, blood pressure monitors and more

You may want to see if there are any good deals for you!

And don't forget to see if you qualify for free shipping and other related savings associated with any purchase you may make!

Companies, Sectors, Trends and Strategies for 2009

2009-02-07T23:38:00.007-05:00

Image by Getty Images via Daylife

A very good piece from Kilpinger on career trends for 2009.

In a very short article, it's packed with:

Sectors
Specific job functions
General trends
Companies likely to weather these challenging times
Workplace strategies

A worthwhile read.

A Quick Way To Have More Money Immediately

2009-02-06T19:19:00.006-05:00

Image by spacebahr via Flickr

I came across this blog post, and I thought it was so powerful I decided to share the link rather than share the tip within in.

Kudos to the author. It's so simple but so true.

Read this short post: One Thing You Can Do Today That Will Put You In Better Financial Shape Tomorrow

Now maybe you can't go a whole day without spending, but trying giving up one item that you would normally buy regularly, if you can. It's a great way to start.

Everything you save and don't spend, you can earn interest on it. That's more money for you.

Everything you don't buy on credit, does not cost you interest on savings foregone and does not increase your costs by debt interest incurred. That's more money for you.

A Cautionary Note

2009-02-05T21:34:00.012-05:00

Image by Picture Perfect Pose via Flickr

If you notice, there are Google ads on this site. My blogs never used to have any ads, but as part of my personal finance experiments, I have added them.

Why?

I blog because I love writing and sharing knowledge, and blogs without ads achieves that purpose. However, because I know that my readers are all looking for ways to earn some extra money and blogging can do that - especially when you learn the best practices - I added the Google ads so that the blogs were not only a hobby, but also a personal finance experiment.

The objective is to see if you could earn money doing this and how. This takes a lot of research, but there's not a lot you need to know to get started. My objective is to share that knowledge with readers in my "quick tips" style.

If it's successful, I'll say what did it. If it is not successful, I'll say why.

So far, both blogs - this one and Reasoning The Reasons - have earned money. Not much, but it actually works. And I'm learning more everyday. In addition to adding content, I tweak the blogs - features etc. - everyday to optimize it. And yes, how Google ads work is that when you click on an ad, there is a potential for any website with Google ads to earn money. Please note: I am neither encouraging or discouraging you do so.

Now, unlike all other content on the site, I cannot vouch for any of the sites listed as Google ads. The Amazon ads were placed there deliberately by me - and I can vouch those are legitimate links to the Amazon website. Some of the Google ads I recognize immediately, such as whenever there is a link to the New York Times. Evidently, that would be useful. Clearly that is a legitimate site.

However, not all the Google ads I recognize, and the Google ads change with every page refresh. Not all unrecognizable Google ad are scams, I've found some cool ones. Many legitimate and famous companies find Google ads to be effective marketing tools. BUT, some Google ads may be. That is not Google's intention, but it happens. If I find something I perceive to be a scam, I will block it as soon as I can find it.

Like everything in life, buyer beware. In fact, if you see information presented in a Google ad that you are unclear about, do some additional research. There is a Google search box at the top of this post. Don't believe everything you read; but equally don't avoid reading when you could learn something. Information is good, but what you do with that information is even more important.

Quick Tip: If someone asks for money to give you a job, make sure you do proper checking. According to an article in the Jamaica Gleaner on January 25, 2009 entitled SWINDLED! New breed of white collar thieves strike banks, it was reported that in 2007, Jamaicans lost J$80M paying people to place them in jobs. Now, the article did NOT say this was online or any form of online advertising - Google ads or otherwise. But, it is not impossible for such a solicitation to be made online.

The Easy Way to Make a Budget

2009-02-05T19:14:00.008-05:00

Image via Wikipedia

Remember, money management begins with a realistic assessment of your financial status. See my earlier post here: More Money - The Basics.

It's time to make sure your budget is realistic, and if you don't have a budget then you need to make one.

Budgeting and sticking to the budget is critical to money management. The most successful budget will be the one you make for yourself - only you know what you are realistically willing to do and not do. By all means, get advice. And another opinion of someone you trust is always helpful to give you ideas. But be honest with yourself about your priorities. After all, it is your money that you're spending.

If you are not familiar with budgeting software (are there are tons), start with Microsoft Excel. You are just entering what money comes in and what money goes out - categories and amounts. Excel makes it easy to increase and decrease numbers in each category to see how you can get a better result.

This is a great post I happened upon: How to Make a Budget in 10 Easy Steps

It's a worthwhile read on how to make a budget - easily!

FREE Online Personal Finance Courses

2009-02-04T06:32:00.010-05:00

Image by Omega Man via Flickr

Check out this article in today's Wall Street Journal about the sharp increase in online personal finance courses: A Boost in Online Money Management.

What's the trend? People are arming themselves with knowledge to make informed decisions. Even if you use a financial adviser, it would be prudent to ensure that you have enough of your own knowledge to evaluate if his or her recommendations are appropriate for you, your particular financial situation, your goals, and your risk tolerance which determines not only investing, but also how much money you feel is a comfortable cushion of savings in the current environment.

There are many FREE and paid services you can enjoy from the comfort of your own home!

From the article: "Popular courses included those on reducing spending, and ways of saving and creating a priority spending plan. "

With a little due diligence to ensure the information is credible, do yourself a huge favor and check out some FREE or paid personal finance courses!

What's a small investment of your time if it saves or makes you money for your own financial security?

Guess What Americans Are Doing? Saving More!

2009-02-02T19:54:00.013-05:00

Image by Daniel Y. Go via Flickr

Today's news was interesting. In the last few months, there has been a steady increase in savings rate in the US. At one point in recent years, it had been negative. See an article here in the New York Times: Consumers Increase Savings While Spending Less

So, I'm thinking this is great news!

After the recent financial crisis and given the ongoing uncertainty, people are making sure that they are more conservative with their money, doing the absolute basic minimum of personal finance which is making sure that they have adequate savings, and really making substantial steps to get themselves back on their feet.

However, some economists argue that when people save "too much", the economy takes long to recover because businesses need the revenue to employ people etc. OK, I see the point. But, consider this:

There is nothing wrong with saving. Saving is the absolute basic minimum of personal finance. You don't have to invest (which is to take on risk with the hope or expectation of a return). You don't have to borrow (which is to take on debt). But you do have to have money to spend for the basic necessities of life and that comes from earning and saving.

If you want to get higher returns than what you can get from savings, and are willing to take the risk of losing all your money, then you invest.

Saving is not investing. I repeat, saving is not investing.

Saving is what you do when you place a deposit with a regulated financial institution at a stated interest rate applicable to that deposit and that deposit is insured up to a limit by a Government agency (such as the FDIC in the US and the JDIC in Jamaica)

If you want to buy things that cost more than your income, then you borrow and pay a premium for that money not being yours. That is what debt is - other people's money and you are using it. If you can wait, it is better to save for an item than go into debt to buy it. Why? Because debt costs money. That money is called interest and that debt interest will in most cases - unless it is concessionary debt - exceed your after tax interest on savings dollar for dollar. So after all your time spent saving, you would be effectively losing some of that interest every time you use any form of credit.

Now, back to this debate between savings and economic recovery.

Now, as I understand it, in the US people lost the ability to access credit - many of them through no fault of their own. If you don't have your own money - which is savings - and you don't have credit - either because of the banking crisis, the new lending standards of the bank, the credit rating system, or because you owe too much money - then what are you going to use to consume? You need savings.

Massive borrowing fueled unsustainable levels of consumption. Would some economists prefer that the economy "recover" by people borrowing which they might not be able to do anyway? Would some economists prefer that other people - who are fearing job losses - use up their savings to consume? Because when those savings are depleted, people will have no money to consume, and will have no savings and possibly employment income to qualify for credit to then consume. At some point, the economy will run out of people who have money to consume.

Why, in this time of record job losses, and market uncertainty should people not save more? Now, I love consumption as much as the next person but I have zero interest in unsustainable consumption. Unsustainable consumption, unsustainable debt with limited, zero or negative saving is how we ended up in this global mess.

No matter how you look at it, consumption gets a hit.

In order for an economy to be sustainable, there has to be a balance between consumption and saving.

We cannot continue to live in an interconnected global economy with such great information asymmetry - where so many people do not understand the basics of personal finance:

that savings are absolutely mandatory;
that savings are NOT investments;
that you have to evaluate investments not just based on hot tips or recommendations but based on your individual risk profile, needs and age in life;
that debt eats away at your hard earned interest and needs to be managed
that you should only take on debt in accordance with your realistic ability to repay, and fully cognizant of the true cost of debt
that expenses (and hence consumption) must be managed so that they can be paid from earnings without depleting savings, savings goals and ability to save. Remember the "Pay Yourself First" principle, you must save before you do anything else!

I could go on.

In order for anyone to prosper, as we have seen, everybody needs to be at a basic minimum level and it is up to education reform, advocacy, and helping each other that this financial literacy will be achieved. It has to start from a very young age.

If you spend money, you must know how to have money to spend - that is, to save.

It is said that those who weathered the Great Depression were the conservative spenders and the aggressive savers. Although we are not in a Depression, we would sure like to avoid one. The only thing we are certain of is that we are living with uncertainty. And if you don't know if and how much money you are likely to earn in the immediate near future, isn't it prudent to adopt some conservative spending and aggressive saving habits?

Great Slidehow of Money Saving Tips from Oprah.com

2009-02-02T06:20:00.008-05:00

Image via Wikipedia

Click here: Money Saving Tips from Thrifty Families

This is a quick slideshow of great tips on Oprah.com featuring CNBC's Dylan Ratigan, and loads of ideas from people who are finding ways to save more money. Everything from budgeting, coupons, money management, discipline in spending, some do-it-yourself around the house, utilities, alternative vacations - such as going to the beach etc. There are also stories of people helping other people, and how Google can help you find deals and free"stuff" in your neighborhood.

When I read "going to the beach" as being thrifty, I thought how often so many of us don't consider a vacation to be a vacation unless we have gone on a plane shopping somewhere. If you do want a vacation, Jamaicans - why don't we try vacationing right here and supporting the local tourism industry - any realistic budget does have entertainment provisions. :)

If you do watch Oprah's show, Tuesday's show is entitled "The Thriftiest Family in America"

Plan to Take Action in 2009

2009-02-01T22:31:00.002-05:00

Image via Wikipedia

I remember watching the opening bell on the first day of trading. Trading is a speculative activity, involving risk with the hope of reward.

And here was perhaps the most famous personal finance expert/author, Suze Orman - someone who counsels about money management, the virtues of saving, the importance of managing debt, and taking risks only when you have evaluated them, understand them and can do so depending on your age and stage in life - doing the honors.

It was a very interesting note to start the year. And to me it signaled that this should be the year of financial literacy, and greater risk/reward determination, and ultimately responsibility.

About Economy
Read the Article at HuffingtonPost

Hear Ye Hear Ye! Companies That ARE Hiring!

2009-01-31T13:28:00.008-05:00

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I was just watching CNNMoney and heard about this article on Fortune.com. Here's an excerpt from an article "They're Hiring!"

"As many big companies are announcing mass layoffs, these 20 top employers have at least 350 openings each right now. Which Best Companies to Work For are doing the most recruiting and what kind of candidates are they looking for?"

Here are the links from each page of the slide show attached to the article. The Companies are:

A Kiplinger Article - Where The Jobs May Be

2009-01-31T11:29:00.004-05:00

Image by ForestForTrees via Flickr

Kiplinger.com (the online version of Kiplinger's Personal Finance Magazine) recently published a very interesting article - 13 Hot Jobs in Hard Times - on where the jobs may be in a Recession and/or Depression. Check the article out for details on the categories:

Accountants
Education
Entertainment Industry
Utility Companies
Repairers
Energy Industry
Health Care
Senior Services
Law enforcement
"Sin" Industries (see article for their definition)
Clergy
Repossession, foreclosure and debt collection
Government Work

10 Best Green Jobs For The Next 10 Years

2009-01-31T09:35:00.003-05:00

Image via Wikipedia

Great post!

A green economy means opportunities; many of which are much needed with record rising unemployment. This post about jobs helps people to focus on where those job opportunities may be.

About Economy
Read the Article at HuffingtonPost

An invitation for you......

2009-01-30T19:40:00.008-05:00

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Join the Earn and Save More Money Community on Facebook:

We'd love to hear your ideas, tips and suggestions!

Spend Less on Health Care - 3 Quick Tips

2009-01-29T20:55:00.019-05:00

Image by Betsssssy via Flickr

No one wants to think about getting sick, but it happens. Plus, there's regular health maintenance all of us have to do - annual checkups etc. One thing we know for sure - health care is very expensive. Here are 3 quick tips to bring down those healthcare costs.:

1. Get health insurance.

For some people it's part of your benefits package at work; while others debate whether or not they should pay the premiums. Well, why do you pay premiums? So that the insurance company will cover the costs of certain covered activities up to the limit of the insurance that you have bought.

Health insurance is worth it, and here's why:

Health insurance covers a wide range of things - doctors visits, dentist visit, optician visits, prescriptions, hospitalizations etc. Other than hospitalizations, I think health care provider visits (doctor etc.) and prescriptions are pretty unavoidable for most people. Since you have to spend money regularly on health-care, why not pay the least that you can for each visit/prescription/event?

Here's the key: if you have an unexpected health catastrophe at any age, comprehensive major medical benefit covers you so you don't have to look first to wiping out savings, going into debt or cashing in investments.

What do you need to know about health insurance? You pay a fraction of the cost up to a limit.

Consider this.

My recent visit to the dentist cost J$6000. BUT, when I took out my insurance card, I actually paid J$1200. That's right. I saved J$4800 just by making sure that I had health insurance and had the card. I paid 20% of the cost that was quoted to me. I saved 80%.

Prescriptions with insurance can be hundreds of dollars instead of thousands of dollars.

If American Express would allow me to borrow their tag line, I'd say "I never leave home without my insurance card"

2. Get a NHF card.

A NHF card is a National Health Fund card, and no you don't have to be a senior citizen to qualify. If you live in Jamaica, if you have a NHF card, the government will subsidize the cost of certain prescriptions in certain categories of illness.

NHF and your insurance card work well together. So let's say you need Drug A. Drug A is covered by NHF and the Government pays a portion. Then, the pharmacist will determine if your insurance will pick up another portion, and how much. Then you pay what's left between the original cost and what NHF paid and what your insurance paid.

Now, why get an NHF card? Because it will allow your insurance benefits to last longer - you will take longer to reach your prescription limits and therefore receive more subsidies by using both.

What illnesses does NHF cover? Here's the list (click here):

Cancer: Breast Cancer, Prostate Cancer

Cardio-vascular: Hypertension, Ischaemic Heart Disease, Rheumatic Fever/Heart Disease, High Cholesterol, Vascular Disease

Endocrine: Diabetes

Neurological: Epilepsy, Major Depression, Psychosisoptical

Optical: Glaucoma

Respiratory: Asthma

Musculo-skeletal; Arthritis

Geneto-urinary: Benign Prostatic Hyperplasia (BPH)

NHF has a specific list of drugs in each category and the amount of subsidy for each. Here is the link for the Drug Subsidy List. For information about how to apply for a NHF card, click here.

3. Prevention and Wellness

Generally speaking, it's less expensive to avoid illness than to treat it or cure it. Take the time to adopt a healthy lifestyle with proper nutrition, diet, exercise and rest. Besides, the better you treat your body, the more you strengthen it to fight illnesses that you may not have been able to avoid!

Reducing Bills! - Electricity Bills, Phone Bills, Water Bills

2009-01-28T17:29:00.029-05:00

Image by Getty Images via Daylife

I was supposed to be writing about benefits and rewards tonight, but let's have a change of topic.

Anyone catch today's local paper? 15% increases by retailers because of the depreciation of the dollar. WOW! Well, my first thought is that those discounts will definitely come in mighty handy now! If you missed yesterday's post on the value of discounts, check it out here: Earn And Save - Real $$$ with Discounts!

Where else can we can possibly cut some expenses right away. Let's try the utilities - electricity, phone/internet and water.

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Electricity

If you live in Jamaica, you probably think it's impossible to save money here. We all had those astronomical bills earlier in the year. (If you are elsewhere, you may still find this story useful because its about changing consumption habits)

If you already understand your bill, forgive this boring part. Here's what you need to know to manage your electricity bill. The bill is determined by the consumption and the rate. The rate is driven by oil prices and depreciation. By law, JPS (the local utility company) is allowed to request a rate increase. So, when your bill is increasing, one or more of these scenarios if happening:

Constant consumption, higher rate due to a rate increase. A rate increase in not something you can control.
Constant consumption, higher rate due to oil prices. Oil prices are outside of your control.
Constant consumption, higher rate due to depreciation. Depreciation is outside of your control.
Higher consumption, constant rates. Rates are outside of your control, but you can do something about consumption.
Higher consumption, higher rates. Rates are outside of your control, but you can do something about consumption.

What can you control? Consumption. Reduce Consumption!

So, what's happening now. Well, oil prices are down (YAY!), but depreciation is way above average. So, in November we had a 2% depreciation, in December we had a 3% depreciation and now in January we are at 5.6% depreciation so far for the month. So, should you expect a higher rate? I am. A depreciating dollar means the rate is going up, regardless of what happens to oil prices. And I've also braced myself for the rate increase JPS will ask for in a few months.

So, in anticipation of that, what have we done here at home? Read on.

We found out what really uses up electricity in the house. So here's what the electrician told me - the electric stove, toaster oven, washing machine, dryer, dishwasher, water heater and air conditioners. Here are some tips 1) use energy saving light bulbs and appliances (turn off the lights when you are not in the rooms), manage your water heater (turn it off when you can, or spend the money for a timer - we just manage ours), manage the use of the stove, the dishwasher and the toaster oven (don't use it if you don't have to, so make sure the dishwasher is full, etc), manage the air conditioners (don't use them when you don't need them, turn them off if no one is in the room and use fans as much as possible if you need a substitute), and manage the iron (turn it on once and do a lot of ironing rather than turn it off and on repeatedly). Even though these are not big ticket items, try to unplug whatever you can when you can. So, for example, when you are not using your cell phone charger to charge your phone, don't keep it plugged in because it's still increasing your consumption!

We had a meeting with everyone in the house and decided we would have an "Electricity Police". I appointed myself. As the Electricity Police, I announced that there would a $100 fine for every incident that resulted in wasted electricity. Examples include: leaving on a light, leaving on a fan, leaving on the air conditioning, using the air conditioning unnecessarily etc. Everyone immediately complained - loudly - that the fine was completely unreasonable. To which I responded: "Oh, so since no one objects to the principle of a fine, the fine shall be $10 per incident with possibility of escalation if behavior does not change". The proceeds from the fines shall go into a common pool for all the members of the house. Quick Tip: make sure you agree on what is considered "unnecessary use of electricity" because people will debate fines. We are in our first month, and truthfully, I have relaxed the fines. They are being charged but not collected. BUT, the objective is being achieved - we have been much more responsible in the use of the electricity in the house and I have a log of the offenders for future use. For now, as the Electricity Police, I just turn off the lights etc,. However, if I am not satisfied with the consumption levels at the next bill, then the fines shall be imposed AND collected.

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On to the phone, mobile in particular:

OK, maybe I am alone in this, but I was not the most cost efficient when it came to mobile phones. Prior to my experiments, I had 3 mobile phones - 1 regular mobile phone with carrier "A", a blackberry number with carrier "A" (the blackberry did not work but I never disconnected the number) and a company mobile number. Three phones for someone who does not talk on the phone. No, it was time to look at this situation.

Almost all of the people I talk to use carrier "B". I however had a number carrier "A". So minute for minute it was costing me much more to talk to the few people I did. Then I realized that I use blackberry messenger much more than talking, so I got a blackberry with carrier "B" so that would save me and my family and friends money when we did talk on the phone. My plan reflects my usage - I don't talk much so I don't need a lot of minutes.

But wait, sounds like I got a 4th phone. I had. BUT, I permanently disconnected the blackberry number from carrier "A" which I was never using but paying for. Saved me thousands of dollars every month. Then, since everyone already know my other number I kept it but revised the plan. Good thing I looked! The plan was the most expensive for the most minutes, but I don't talk on the phone. So I took it to the bare minimum. Saved me thousands of dollars every month AGAIN!.

And here's the bonus! My new carrier "B" reduces my bill by $100 every month because I pay online!

Bottom Line: Check your phone plans and get only what you need. Be realistic.

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A quick word on water.

Leaky pipes are an unnecessary expense that adds up. Check your bills every month and watch your consumption. If it seems to be moving suspiciously, you may have a leak that you don't know about. Have an audit done and have it fixed. It'll save you in recurring expenses for an indefinite period. I've seen water bills that had deviations in the thousands of dollars. Left unchecked, that will be thousands of dollars you have to pay every month. Totally unnecessary.

A special plug here for for conservation: The world's water resources are limited. It looks like a lot but freshwater available for potable use for human consumption is about 1% of all the water in the world. And much of it is polluted by human and industrial sources. And the human population has significant demands. So do yourself a favor, literally, and conserve every drop because it is very precious.

Real $$$ with Discounts !

2009-01-27T20:22:00.024-05:00

Image via WikipediaMeet your new best friend - Discounts!

Now, I have a confession to make here - until my experiments started, I never asked for discounts. At minimum, Discounts are supposed to reduce the cost of your consumption. However, they do more than that. By reducing the cost of consumption, they leave more money that can earn interest. Also, dollar for dollar, every time you forgo a discount you could have used in 5 minutes, you have depleted more than one whole YEAR's accumulated after-tax interest.

If you are a skeptic - like I was - let me tell you how I was convinced.

First, I realized that in a 5 minute transaction, if I get a discount on $1 of say 10% (the usual discount amount), I would have saved 10 cents. Not worth the effort, right? No, actually.

For one, it's very straightforward to get a discount, so it's not really a bother.

For two, and this was the clincher for me, I thought to myself, well, how long does it take me to get 10 cents worth of interest on $1? Well, as it turns out, its much longer than 5 minutes. It can even be longer than a year. That's right ONE WHOLE YEAR. That's because the majority of after tax interest rates of saving are less than 10%. So, here came my "aha moment" when I realized that by not asking for a discount, I was negating all the interest I was earning. No, that would not do.

For three, the more money that stays in my saving account that is not spent earns interest so why not reduce the cost of consumption if I can.

Let me tell you about my discount experiment:

Because I have car insurance with NEM (in Jamaica), I am provided with a JAA card.
Full Disclosure: I work with JNBS, the parent of NEM and JAA.

Now, JAA stands for the Jamaica Automobile Association (it is affiliated with the International Automobile Associations ). JAA has discount partners with more than two hundred (yes, 200) merchants with discounts ranging from 5%-55%! See list here.

I wanted to see how the discount program worked so one Saturday afternoon a few weeks ago, I went to my regular pharmacy for an item. They had it and the cost was J$500. However, my regular pharmacy was not listed as a JAA Discount Partner - that means I could not use my JAA card. So, I went to the next nearest pharmacy listed as a JAA Discount Partner. They had the item and it was the same price as my regular pharmacy.

Great, I thought! 10% off means I save J$50. In 5 minutes, I would have saved myself what it takes more than one whole year to earn in after-tax interest on savings on a J$500 deposit. AND, if I save J$50, I can continue to earn interest on the J$50. Now, I was really excited.

But alas, there was a hitch. I asked a store employee if I could use the JAA card for my discount and was told no. I said "But, there's a sign on the door". There was. But maybe she didn't remember or was new. So, luckily I had carried my list from the JAA (a multiple page document outlining all the discount partners and the amount of the discount) and showed her that the pharmacy was listed. She was most gracious and agreed to provide me with the discount. So, after my bill rung up, I paid it, said thanks and headed to the door.

Now, I couldn't wait to see the bill as evidence of my experiment! And here's where I learned another lesson: Always Check Your Bills and Receipts. When I checked my bill, my discount was there - but it was on J$750, not J$500. So, I got a $75 discount, but the item had cost me $675 when it should have cost me $450 with my $50 discount on $500. I had paid more than the original $500! Frankly, I was deflated. This was not the way this experiment was supposed to go. BUT, I had learned to check the receipt.

So, I went back to the store employee and asked what caused the price difference. Turns out it was an error and the adjustment was made so that I was charged the price I saw for the item. So I got my discount, and had paid less - that was the point of the experiment and I had achieved it!

Bottom line: You can save some real money immediately by using discounts! Dollar for dollar in 5 minutes, the cost of NOT using a discount can exceed one whole YEAR's worth of accumulated after-tax interest. If you get a discount, the money saved can continue to earn interest! Even if there may be a problem, persist because it is worth it.

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If you are in Jamaica, a JAA card provides a network of approximately 200 local discount partners with discounts ranging from 5% to 55%. It has other benefits too, including overseas discount benefits but let's focus on the local discounts for tonight. Click here .Chances are you will find something on this list already relevant to your daily life. Although the merchants can change at any time - and some of the new ones have not yet been updated on the website, the categories are listed below and I have linked each one to the JAA website so you can see the current list. Click below and see the merchants!!

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Additionally, if you are a member of Jamaica National Building Society (that means you have any kind of savings account with the Society), you have similar access to the 200 discount partner network. Click here. There are slight differences from the JAA list. To get the discount, you need to show your JN 24/7 ABM card. Chances are you will find something on this list already relevant to your daily life. Although the merchants can change at any time - and some of the new ones have not yet been updated on the website, the categories are listed below and I have linked each one to the JNBS website so you can see the current list:

Two simple little cards - a JAA Card and a JNBS 24/7 (ATM card) - are a great place to start to get those extra $$$$! You can get a JAA card by insuring with NEM, or purchasing membership directly from the JAA (see rates here). Keep a savings account linked to JN 24/7 ATM/Debit Card and receive your card to show for discounts!

Let's talk about benefits and rewards tomorrow!

More Money - The Basics

2009-01-26T18:50:00.016-05:00

Image via WikipediaTo get you started, there are 3 basic things you need to remember about money management.

1. SAVE, SAVE, SAVE.

No matter what, you HAVE to save; you MUST save. Saving is not - I repeat not - investing. This is saving - take money and deposit it with a regulated financial institution where your deposits are insured (by the FDIC in the US or the JDIC in Jamaica) up to a limit, and where that regulated financial institution will provide interest at a pre-defined interest rate on that deposit over a period of time.

Why is saving the foundation, the key?

When you save, your money earns interest for you. Now, other than working to earn more or receiving a gift, how else do you get "new money"?
Save more, earn more interest.
Save longer, earn more interest.
Save your interest and your interest earns interest.

Saving is the absolute basic minimum you must do!

What is the best way to save?

Heard of the "Pay yourself first" principle? Before you do anything else, as you get a paycheck or a payment for services rendered, take a portion and save it - don't invest it, save it. It would be best if you could get into a habit and decide on an amount and do it by salary deduction. That way you don't agonize over "should I' or "shouldn't I". Trust me, after a while you won't even miss it and you'll be happy to watch those savings grow every month. Remember this if you remember nothing else.

2. SPEND LESS.

Easier said than done, right? If you are in Jamaica, this sounds impossible given the cost of basic necessities. Well, here are some suggestions:

Exercise discipline in consumption. Buy what you need, not what you want. Yesterday's post gave you an idea of how that can work.

Find out all benefits and discounts available to you and use them. Trust me in 5 minutes what you save by using these discounts and benefits can exceed one year of after-tax interest, dollar for dollar. Come back tomorrow for some specific tips on this one because I discovered big savings and small savings here. Regardless, they all add up.

Take on reducing spending in your utilities as a special project - phone, electricity and water. I've done experiments with those and I'll share them later in the week.

What's the one thing to remember with spending less: When you spend less, you have more money to save which earns interest.

3. MANAGE YOUR DEBT.

This needs some clarity. Not all debt is bad. Debt that is unsustainable is bad. Debt that you cannot afford to service is bad. If the price you pay for being completely debt free is depleting your savings, I would say that is too high a price. So let's think of debt as something you manage.

First, dollar for dollar interest charges will exceed the after tax interest earned on savings. This means that you are paying out in interest more than you earn in interest. So, if you have debt, the experts advise you to rank them starting with the highest rate and aggressively pay down that one, then the next highest rate etc. Now important: always service all your debts because not only is it the responsible thing to do, if you don't, then you pay penalties and fees, and it's bad for your credit rating. So, when I say "aggressively" pay down debt, it means pay more than the minimum to eliminate it faster.

Second, really try to minimize using credit cards. Use cash and ABM cards (fee free preferably). If you can wait, save towards the goal to purchase the item. If you can't wait, remember that you are paying more for the item in finance charges. Would you want that item if it were $150 instead of $100? You may have paid $100, but if the charge sits on your card, then you may end up paying more like $150 (depending on interest rate, time to pay etc.).

What's to remember with managing debt: Less debt, lower rates, shorter time periods means less in interest charges which you could have saved to earn interest. Oh, and pay your debt on time to avoid late fees because those add up!

Those are the absolute basics.

For each category - savings, expenditure and debt - there is much more we can discuss. But we'll get into that later.

Now to get you started on your journey, you need to make an assessment of your current financial picture. What do you earn? What do you save? What do you invest? Did you remember saving and investing are different and do you treat them as such? What are your expenses? Can you track every cent you spend every month? If not, start a log and write it down. How much debt do you have? What interest rates are you paying?

Want to know what I did? I have had an Excel workbook for years, and I have different tabs for different categories and its color coded and everything. I know every single dollar that comes in goes out, and have different scenarios for debt, saving and investing.

That means I track my accumulation of savings and make conscious decisions about when and where to put my money.
That means that I have an extremely detailed budget and I know all my regular expenses, and make a provision for contingencies
That means before I even use a credit card I know what it is likely to cost me even for one month in interest.
That means before I decide if I should invest, I know the expected return, I evaluate the risk in terms of the market environment and my own personal finance goals. I know where the funds will come from, and I do not sacrifice my savings goals.

My model is very straightforward and I know where to find everything, and change parameters for scenario planning. I have projected at least 5 years into the future. And it's very conservative. It works for me. Some people prefer to use software. Find what works for you.

Now assess the picture, do you like what you see? Are you saving? Are you saving enough? Do you know what enough is? Have you figured that out? Are you meeting your expenses? Do you see anywhere you could cut expenses? Have you looked at your monthly interest charges on debt? Did you realize that if you paid even a little more in debt payments you could reduce your interest charges, and therefore the total cost of the debt?

Now, don't worry. If this is all new to you, we can walk though all of this to make it manageable. But the very first place to start is with that picture. If you don't know what is broken, you cannot fix it.

As I said, come back tomorrow for some big and small savings I've discovered through benefits and discounts.

Getting Started - Earn and Save More Money Now

2009-01-25T17:53:00.016-05:00

Cover via AmazonWhy reinvent the wheel? There are best selling books on Personal Finance. There are countless websites and blogs. Do a little reading and see what is applicable to your situation.

How did I start?

In the first few days of 2009, I read the best seller "Smart Women Finish Rich" by David Bach (don't worry - the information is generic enough for anyone, and he does have different versions). The book was already in my personal library, I just hadn't read it yet. Given the uncertainties we all face, I figured the time was now right. I would highly recommend the book to to help with thinking about saving vs investing (reminder: they are not the same), and also general money management. There is a lot of information specific to the USA, but the general principles are universal, I think.

Next step - application of principles.

For example, that book inspired me to read another personal finance book - but it was a best seller motivational book not a classic "how to" book. Now, I did not have that book in my library, so I went to buy it. But, here's something key, Bach's book had taught me the importance of discipline in spending (which I will get into in a later post), so although I picked up 10 books in the bookstore, I decided that I did not need them - although I wanted them - and decided to buy only the book I intended to buy when I went to the store. By exercising discipline in my consumption of my favorite impulse items, I saved significantly that day! I had saved money by not spending it and not losing savings interest on that money. What's your favorite impulse item or items? Does this story sound familiar - walk into a store for one thing and buy a ton of other things? Now, am I likely to purchase those books later? Sure. But for the time being I can earn interest on that saved money since I am unlikely to read 10 books at the same time :)

Despite the habitual convenience of using a credit card, I used cash to avoid interest charges. This tip came directly from the book, and in a later post I'll get into how to think about various forms of debt. But the main point is that dollar for dollar, interest rate charges will exceed after tax income on savings. So, as much as you save, your net will be negative if you pay high interest rate charges.

Lesson Learned:

Learn from the experts and start applying the principles immediately. Make personal finance a lifestyle change

Make a list of needs - not wants - before shopping. Take the list. Try to stick to it. With discipline and habit, foregone consumption can add up to real savings which earns interest.

Make cash or fee-free ABM cards the preferred payment type. Debt reduction and avoidance reduces the amount of your hard earned savings lost to debt service.

Check back tomorrow for a summary of basic personal finance principles to get you started on your journey!