Archive for April, 2008
The envelope budget
Budgeting can be very difficult. With one swipe of a credit card you can buy now and pay later for virtually anything. With this type of mindset it is hard to budget for expenses. The envelope method of budgeting makes keeping a budget a lot easier and will prevent you from spending beyond your means.
Start [...]
Why target date funds may not be good retirement plans
Many retirement programs and pensions have limited their choices when it comes to funds. Many 401ks and other programs only offer a select few mutual funds called target funds. These funds seem great at first, until you look at the high fees and the generalities surrounding them.
Target funds are usually sold by dates every five [...]
Why the FED rate cuts are not indicative of lower consumer rates
The federal reserve rate cuts might make you feel better about getting a loan, but for most people, the rate cuts do not dramatically impact consumer level loans.
Banks operate on a very thin margin between the Federal Reserve rate and the amount that borrowers pay to lend. If the banks are borrowing at 3%, the [...]
Will the next president hurt your bank account?
In short, yes. All three presidential hopefuls want to lower taxes and limit tax hikes. However, all of them have vast social programs that will eventually cost billions in taxpayer dollars. Here is a quick run through of Hillary Clinton, Barack Obama, and John McCain with a quick glimpse of their policies.
Hillary Clinton
Seeks immediate relief [...]
Read Full Post | Make a Comment ( None so far )Gold prices indicate economic instability
The price of gold is something that is highly debated by economists from varying schools of thought. The Austrian school of thought says that the value of gold is inherent and never changes, but that the value of fiat currency changes, and thus the price of gold. Other schools of economic thought argue that gold [...]
Read Full Post | Make a Comment ( 2 so far )A look at how your credit score works
Credit scores determine everything from job positions, insurance premiums and most importantly, the interest rate assessed to your line of credit. Your credit score is your worth as a borrower and a way for banks to determine risk. A high credit score shows that you have paid your bills on time, and that you are [...]
Read Full Post | Make a Comment ( 1 so far )Let credit cards pay you
Frequent flier miles, cash back on gas and fast food purchases and a free 55 day loan? Many people associate the savings of cash back and miles as the only way to produce revenue from a credit card. In fact, a credit card is a great way to buy everything on an interest free 55 [...]
Read Full Post | Make a Comment ( 1 so far )Online banking versus brick and mortar
Online banking is something that no one could have predicted. Now you are able to access your accounts at any time, make payments and see your statements from home without going to the local banking branch. Online-only banks have also sprung up with no actual branches, just a virtual account that promises higher savings rates [...]
Read Full Post | Make a Comment ( 1 so far )Peer to peer lending
Typically we would think of obtaining a loan from the friendly loan officer at the bank, rather than going to the general public for a loan. But new online lenders use eBay style bidding to allow people to get loans at rates they would have never previously received.
The old banking standard of using a credit [...]
Raise your insurance deductibles and feel safer
Insurance is one of the most necessary evils known to man. Insurance companies profit by making the odds and setting premiums so that what the take in is always higher than they pay out. Over the long run, it is likely that you will pay much more to an insurance company than you will ever [...]
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