Alpha Consumer
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The Challenge of Taking Out Life Insurance
Continue reading… 2 CommentsTaking out life insurance sounds like it should be easy. Call a few companies, get price quotes, and go with the cheapest one. Then, you just have to fill out forms and schedule a health exam.
[See: "7 Killer Insurance Mistakes You're Probably Making."] -
Testosterone's Role in Investing Decisions
Continue reading… 2 CommentsThe debate over the ways that men and women handle money differently just got more complicated. Research generally suggests that men take more risks with their money while women play it safer, which means men may earn higher returns over time but also are at greater risk during downturns. But Yahoo's Laura Rowley reports that a new study from the University of Chicago and Northwestern suggests that not all women fall into that risk-averse category. Specifically, women who have higher levels of testosterone appear to take bigger risks.
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Audio: How To Find Affordable Child Care
Continue reading… 0 CommentsOver the weekend, I spoke with WTOP in Washington about how to find afforable child care. New Web sites make it easier for parents to find babysitters and nannies, and babysitting co-ops also let parents join forces to cut costs.
8 Ways to Find Affordable Child Care
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Why We Are Still Better Off Than Our Parents
Continue reading… 6 CommentsDo you think you're better off than your parents?
It's a question that's not so easy to answer: Plenty of 20- and 30-somethings say their parents were able to afford a first home, children, and financial security long before they even settle into a stable job. But according to a survey taken earlier this year by the Economic Mobility Project at the Pew Charitable Trusts, almost six in 10 respondents said their standard of living is much or somewhat better than their parents' was at the age they are now.
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Annie Leibovitz: Why Fame and Debt Often Mix
Continue reading… 3 CommentsIn this week's issue of New York magazine, Andrew Goldman dissects Annie Leibovitz's debt problems in his article, "How Could This Happen to Annie Leibovitz?" Leibovitz, one of today's most successful photographers, has about $24 million in debt.
Goldman discredits the idea that the so-called "gay tax" left Leibovitz unable to inherit her partner Susan Sontag's estate without paying significant taxes. Most of Sontag's estate, he says, went to Sontag's son, not to Leibovitz. -
Americans Still Lack Savings, Despite Cuts
Continue reading… 4 CommentsDespite the fact that government data shows personal savings rates slowly creeping upwards, it turns out most people still aren't saving enough money to sustain them during periods of lower or no income.
According to a survey by HSBC Direct released today, almost four in 10 Americans don't have enough money saved to pay for one month of living expenses, and six in 10 have three months or less worth of expenses in the bank. That leaves them vulnerable in the event of job loss.
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Starbucks Cuts Some Prices, Raises Others
Continue reading… 8 CommentsStarbucks announced this week that it will raise prices by up to 30 cents on its more complex concoctions, such as Frappuccinos, while lowering prices on simpler drinks, including drip coffee and tall lattes. Those will go for about 5 to 15 cents less. With an eye on the recession, the company is also emphasizing cheaper drink options on its menus.
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Today, Credit Card Reform Begins
Continue reading… 9 CommentsStarting today, credit card companies are required to begin doing business a little differently: First, they must inform their customers at least 45 days in advance of any interest rate hikes, compared to the previous 15-day requirement. If a customer doesn't like the change, then he can close the account and pay off his balance at the original rate. Secondly, credit card companies are now required to mail out bills to customers three weeks before the money is due, rather than two weeks.
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How Clueless Are College Graduates?
Continue reading… 3 CommentsEarlier this summer, when Beth Kobliner, author of the bestseller Get a Financial Life, was interviewed on the Fox Business Network, she said something that struck me as a bit extreme. She said that college graduates—even those coming from the Ivy League—enter the workforce without understanding basic personal finance concepts, including how to rent an apartment.
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Fraud Protection: Debit Versus Credit Cards
Continue reading… 11 CommentsToday's guest post comes from Odysseas Papadimitriou, founder and chief executive officer of Evolution Finance, which is the parent company for Wallet Blog and Card Hub.
Debit card use is growing rapidly. Last year, spending on VISA debit cards surpassed spending on VISA credit cards for the first time in history. Although debit card use is growing in popularity, there is a certain amount of confusion around fraud coverage on debit cards, not to mention credit cards.
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Committed Budgeter Reveals Her Secrets
Continue reading… 3 CommentsIn response to a post I wrote on the benefits of making an annual budget instead of a monthly one, Aryn of Sound Money Matters wrote in to say that she and her husband do both -- they outline their expected annual expenses, and then map out the cash flow for each month. It seemed like a pretty sound -- and detailed -- strategy, so I gave her a call to ask her to explain how it works.
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Amid Recession, Women Spend Even Less
Continue reading… 1 CommentWomen, it seems, are dealing with this recession a little differently than men. Specifically, we are cutting back on our spending more than our male peers. A survey by Opinion Research Corporation for TD Ameritrade found that 86 percent of women say they are spending less on optional expenses compared to 78 percent of men.
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Stay-at-Home Moms Need a Career Plan
Continue reading… 8 CommentsToday's guest post is by Sharon Reed Abboud, author of All Moms Work: Short-Term Career Strategies for Long-Range Success:
Becoming a stay-at-home mom doesn’t necessarily mean bringing your career to a screeching halt. The possibility looms, however, if you don’t maintain your network and keep current with your industry. Stay-at-home moms are advised to keep their career in motion, even if at a slower speed, by devising a short-term career strategy of volunteering, working part-time, telecommuting, consulting, or starting a business. Any of these endeavors will enable a mom to keep her resume up-to-date so that she will be able to successfully transition back to work at a future date.
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Benefits of Budgeting by the Year, Not Month
Continue reading… 3 CommentsWhen you make your budget, do you think in terms of the next month, or the next year?
Research suggests planning for the long-term will increase the accuracy of your budget, despite the fact that many financial counselors recommend a monthly approach. Budgeting for the year is better largely because we feel less confident in our estimates, so add more of a buffer for unexpected expenses, according to University of Southern California's Gulden Ulkumen, Cornell's Manoj Thomas, and New York University's Vicki Morwitz. -
Retire Early? Maybe With These Frugal Steps
Continue reading… 6 CommentsI've been spending a lot of time talking with retirees -- and younger folks already planning their retirements -- about how to make some frugal lifestyle adjustments so it's still possible to stop working, despite big losses in savings. Many of their ideas apply at any time of life.
Charlie Gutz, the blogger behind Frugal Retirement, is a 32-year-old IT engineer in Omaha, Nebraska who would like to retire as soon as possible -- sometime before age 50. To do that, he saves money wherever he can, using some of his grandparents' techniques, and also earns extra income outside of his paycheck. Here are some of his ideas: -
Questions from a Cash-Strapped College Grad
Continue reading… 3 CommentsDear Alpha Consumer,
I need help deciding what to do with my money. My husband and I are college graduates with a total of $28,000 in college loan debt. Since graduating, I've had a hard time finding full-time work. (I have an environmental studies degree.) I was unemployed for eight months and put my loans in deferment. Neither my husband nor I earn very much; we each make around $11 an hour. To save money, my husband and I moved in his parents' basement. (His family is happy with us there but I'd like to move out and start a family.) My current job ends in December and I doubt I'll be able to find more work until next summer.
