MoneyNing - Part 392

Celebrating Thanksgiving is a Must This Year

by David@MoneyNing.com · 11 comments

With headlines all over about the financial mess and how bad the economic is (and will be), many of us feel a sense of doubt about the future. Thanksgiving is coming up, and it’s easy to feel less excited about the idea of celebration when our retirement savings, investments and emergency funds depleting every day. Don’t feel too bad though, because we are all in the same boat. I feel the pinch as well in this bad economic times, but I will be celebrating thanksgiving more than ever. Here are a couple of reasons why we should do so:

Thanksgiving is About What We Have
When the holiday started, it was celebrated at the end of the harvest season to be thankful for the possession that we have. It also signified the start of the holiday season where families start gathering at home with friends to have a holiday feast, chatting about the seasons hard work and reminding themselves that family is the most important treasure that we have.

Despite the fact that many of us lost a ton of confidence in our economy, we as a nation have persistence and the will to succeed like no other. We will get out of this mess and will prosper again. As our ancestors will say:

As long as we still have our hands and feet, years of fruitful harvests will come

It’s About Sharing
While there is no excuse to be out of touch during the year, Thanksgiving gives us a chance to share with our family like no other (similar to how birthdays give us an chance to give gifts). It’s a time where we all gather and be back in the comfort of our own families and realize that yes, we aren’t alone.

It’s About That Turkey

cook that delicious turkey this thanksgiving

That’s right. A huge part of thanksgiving is about that delicious turkey. It’s always fun whenever someone comes up with an improved way of fixing the turkey.

While searching on the internet, I found some tips for roasting a turkey. Here are some highlights:

Buy the best quality turkey available (organic, free-range, etc.)
Cook it breast-side down
Cook the turkey stuffing separately because it is easier to cook the turkey more evenly.

I love eating turkey. Yay.

It’s Still About the Turkey Creating the Comforting Outlook
Self-fulfilling prophecy is an interesting phenomenon. When we hear about all these headlines, we will stop spending and in effect slow the economy even more.

Confidence works the same way. When we lose confidence, we will not act intelligently will lead less desired results, lowering our confidence even more.

Celebrate Thanksgiving this year and remember again of what our ancestors would say.

As long as we have our hands and feet, we will prosper.

If You Have Time for Shower, You Have Time for Personal Finance

by David@MoneyNing.com · 15 comments

When I was very young, I hated going to the shower. I would sit there (and in reality spend just as much time) convincing myself that I really didn’t want to waste my time. I would tell myself that while my parents forced asked me to go every single day, I never really saw the benefits. It wasn’t nearly as fun as watching TV or playing video games, so why bother? I just did not get it.

It was funny when I think back (and sharing was something I certainly had to think about because my parents read my blog) because now I obviously realize how ignorant I was. Shrubbing myself everyday might seem unnecessary and boring, but what will happen if I don’t? Dirty, health problems… you get the idea.

Before you laugh at my story, think about the time to dedicate about your personal finances. While we can’t physically force you to think about it, we definitely ask you to. Of course it’s not fun to setup your budget or set aside an emergency fund instead of using that money to go out for dinner, but what would happen 30 years from now?

The Rubber Duck in Personal Finance

My mom never got me the rubber duck to make showering more fun (nor was I creative enough to take my invisible microphone and become a singer), but getting older made me realize that coming out of the shower makes me feel good. I’m more relaxed, and I just feel comfortable.

Working on your finances gives you a sense of accomplishment and satisfaction when things are on track. It helps you be more confident and optimistic about the future. It rids you of many worries that most families have and allows you to be much happier than you will otherwise.

30 years from now, do you want to think back and realize how ignorant you were in neglecting your finances? While it’s quite boring to spend time on your finances, start caring about your finances right now. It could be as short as 15 minutes a day, but it will rid you of the dirt and help you stay healthy long term.

Fortune Magazine’s So Called HENRYs are Getting It All Wrong

by David@MoneyNing.com · 26 comments

HENRYs are rich enough for most american standard

In the November issue of Fortune magazine is a featured article about the HENRYs (high earners, not rich yet). The writer argues that while they account for only 2.3% of the all American tax payers, they pay 17% of the total taxes paid. The author believes that it’s not fair that they pay a high amount of tax because they are hard working individual who aren’t even rich yet.

It’s a Matter of Choice and Everything Depends on Your Reference Point
The HENRYs are families with incomes of $200,000 to $500,000. According to the article, these people don’t buy a luxurious lifestyle and don’t spend a lot of money on extra stuff. On the other hand, the article claims that they are adamant on paying for child care and saving for private schools. They also spend on piano and swimming lessons.

For the HENRYs, these are absolute necessities but many of us probably believe that those are all luxuries. I can understand that child care is important but what about private school? Piano lessons?

Perhaps they believe that they aren’t rich, but if you ask me, someone who can afford a house, put $4,000 into their retirement savings, raise 2 private schoolers who have a baby sister supervising their piano lessons are considered rich.

If you are a HENRY and feel that you aren’t rich, the first thing you need to do is stop complaining. Then, realize that you can save even more money if you cut down some of your so called necessities. Putting away $4,000 is not shabby at all because one day, you will be living comfortably.

So keep working hard because no one is trying to punish you for your hard work. You are already much luckier than many of us.

My Parents Taught Me About Personal Finance

by David@MoneyNing.com · 12 comments

teach your daughter about personal finance

As I sit here thinking about my plans and goals for full time blogging (and at the same thing pinching myself to see if it’s all real), I realized that all this was only possible because of my parents.

Sure, I was able to quit my job because I established an emergency fund, knew my monthly expenses and kept them low. But these were all a result of the way I am, the frugal mindset that my parents influenced heavily.

Thinking back, there were many ways my parents taught me about personal finances.
By Example
As a young child, my family was having a hard time making ends meet. My mom, the incredible woman that she is, never bought anything for herself until we were much older. While I never really felt the difficulties since I was so young, hearing the stories from my relatives were enough for me to learn that saving money to avoid poverty should be one of the main priorities in our lives.

Practice Practice Practice
My parents gave me allowance early on. The money was very little but it allowed me to learn how to manage my own finances. I understood that if I saved and practiced delayed gratification, I could afford bigger and more expensive items.

Story Telling and Discussion
Some of the people we knew made financial mistakes that led to dire consequences. Fortunately, my parents were willing to take the time to share with me those decisions and how events played out because of those choices.

Tough Love
My parents loved me but didn’t let me have everything I wanted. They allowed me to reason with them but never let me get away with any freebies. They never took shortcuts on necessities but thought diligently on luxuries.

Show Me the Money
When I was young, my parents bought me mutual funds. It was fun opening those quarterly statements because not only did I love checking on stats, I also saw for the first time the power of compound interest and capital appreciation. From that point on, I knew that it was important to invest, invest and invest.

Thank You.
In many different ways, my parents taught me about personal finances. It needed patience, creativity and unconditional love. I wouldn’t be the same person if it weren’t for my parents.

Thank you. I truly love the two of you.

Watch Out for Possible Credit Card Scams

by David@MoneyNing.com · 15 comments

I am constantly amazed by the creativity of thieves when it comes to ways to scamming people. If we can get those people to apply their ability to constructive activities, the world will be so much better.

Currently in the United States, the credit card companies take the burden off customers for any fraudulent activities. What this simply means is that if someone steals my credit card and uses it, I won’t be charged for it as long as I report the lost in a timely manner. However, companies need to make money at the end of the day. If they are losing money because of fraudulent activities, they will try everything they can to pass the burden to us indirectly. That’s why one of the reasons for high credit card interest rates and service fees is fraud.

So while most of us don’t see the risk of being careless with our credit cards, it comes back to bite us one way or another. Below are some credit card scams that my mom sent me through an email. Hopefully we can all be more careful as we know some of the tactics these people use to get our credit card numbers.

Gym Locker Loser
A friend saw his locker opened after his workout, he thought he locked it but when he didn’t see anything missing in his wallet, he didn’t think too much of it.

A few weeks later when he got his credit card bill, it had a whopping $14,000.
He checked his wallet and realized that instead of his real card, the thief put in a similar looking card that’s already expired.

Shady Restaurant
A man signed for his bill and the waitress folded the receipt and passed the credit card back to him. He looked at the card and it was an expired card of another person.

He called the waitress and she looked perplexed. She apologized and hurried back to the counter and waved the wrong expired card to the counter cashier. Without saying a word, the cashier immediately looked down and took out the real card.

Bad Photography
A lady paid by using my Visa Check Card, and the young man behind the counter swiped the card, then laid it on the counter as he waited for the approval. While he waited, he picked up his cell phone and started dialing.

Then the unthinkable happened, as there was a click that sounded the phone just took a picture. He gave the card back to the lady and kept the phone in his hand and pressed a few more buttons.

What else would he be taking a picture of??

My Friend’s True Story
A few weeks ago, my friend emailed me and said she’s been a victim. She went to the same ATM machine as usual to withdraw cash but noticed that the ATM looked a little different. She didn’t think too much of it, even when she had to force the card through the card slot as she just thought it was a new bad design of the machine.

A few days later, her bank froze her account and notified her that the bank card was compromised as someone spent $6,000 with it in one day.

She is hopeful that she will get her money back but in the meantime, she is still trying to resolve this.

Don’t Let This Happen to You

While it’s impossible to totally be “scam-proof”, being alert is one of the best ways to prevent your credit card information from getting stolen. Always check your card after it leaves your hands, and pay extra attention every time something looks out of the ordinary.

Why is Our Bailout Money Going Towards Paying for Executive Bonuses

by David@MoneyNing.com · 25 comments

The newest on the corporate corruption front seems to be that the employees at financial institutions are still expecting to be paid employee bonuses. It’s crazy to think that while we have to downsize and try to save more money to anticipate higher taxes for paying off the bailout, it is actually money that is being used for paying executive bonuses.

First, the $700 billion bailout plan was supposed to buy troubled assets. Then $250 billion of it was used to buy stakes in banks because they aren’t capitalized enough to lend, with $125 billion already going to just 9 banks. Now, we are hearing that instead of using the money to lend, the bailout fund are used by banks to buy other banks, give employees a raise and executives a bonus.

I don’t really care that they can legally do this or not because something is definitely wrong when 100 people have to eat less so 1 person can buy a more luxurious car. It just does not make sense to me and it never will.

What congress needs to do is bring those CEOs to a meeting and tell them that if they decide to pay bonuses or use taxpayers money to do irresponsible activities, the government will start stepping in and dictate how businesses should be run.

If the government doesn’t play hardball with these firms, they will just end up wasting our money to make themselves wealthier. If nothing is done, everyone will be outraged and America will get into much more trouble long term.

Stop letting those pigs get all the water.

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