I probably agree with you for the most part, but I'd make a couple changes. First, I'd say that the root cause was that people bought things they couldn't afford and defaulted. Then I'd agree that they shouldn't have done that and that the banks shouldn't have let them borrow that money, but I'd also point out that the government told the banks to do it and made it really easy for them to do so.
I think that if the government had left its hands out of business to begin with, the problem either wouldn't have existed or would have been much, much easier.
The government also just makes it worse every time they try to "fix" it. Let failures fail. People need to learn from their mistakes, not get rewarded from them.
My grandma is going through this exact same situation. I am starting an awareness campaign to bring attention to this issue. My grandma will not listen to anyone except these people who are taking her money. If you are interested in joining my campaign, please reply to this comment and I will give you my email address.
How long does the homemade mayo and ketchup keep? When I buy these, they last forever. Is that true for the homemade versions too or is it only safe to use for days?
Reuse brown paper bags from the grocery store. Turn them inside out, wrap your gift and decorate with your children hand prints, sponge paint, or various art work. If you have a larger gift, cut the paper bags flat and tape two or more together. Cut a potato in half and cut out a stencil or design, dip into paint and have fun! Write a poem or special quote on the outside. Use twine or hemp to tie it.
Edit: Sorry, I forgot to add that in a private school, we are academically better than a lot of other public schools but not so much that (in Australia) it would be easy to get into an Ivy League, Oxford or Cambridge, or to do Law or Med at USyd or UNSW or ANU. The academically "better" performance is limited to some students - as I'm sure it'd be the same in a public school.
I am from Australia and I am currently a private school student.
In Australia - private schools are ****. I am a boarder as well, so my parents pay like $40,000+ per year and I am regretting the education here now. I used to enjoy the extra co-curricular, but now as I approach my university-entrance exams, I find private schools much worse academically than the selective schools.
If I had to re-do, I would only enter private schools on the basis of scholarships or for other merits than academic.
I would also not choose Australia to be a boarder. I'd probably go to the US or UK. Worse comes to worse, an international school.
I believe, from all the research that I have done on coffee and caffeine, that the negatives far outweigh any positives that caffeine would do to your body and your mind by ingesting it! Although I do agree that using caffeine as a cellulite treatment or in eye and skin creams do work!! It is unnatural to drink caffeine which puts your body in a state of fight or flight mode, when that causes so much exhaustion to your adrenal glands!! I have read that drinking caffeine puts a lot of stress on your adrenal glands,which will only leave you feeling exhausted! Then, this can lead to high cortisol levels which causes weight gain! Coffee is loaded with tons of bad acids,pesticides, and a high amount of caffeine in which all of these can be stomach irritants, causing all kinds of stomach problems like acid reflux and IBS etc etc. Also, if you are sensitive or intolerant to caffeine, it can mimic psychological and mental problems like depression, bipolar,add, and even schizophrenia and others! It can cause adrenal fatigue, skin rashes, and even joint pain! Caffeine also can cause anxiety and even anxiety attacks,heart palpitations, and worsens P.M.S. symptoms! I finally quit caffeine after a long battle of my love hate relationship with coffee!! I found out I was intolerant to caffeine, and I did suffer many of the above symptoms but not the schizophrenia! I know a lot of people can handle caffeine, but just look how much of the U.S. is on prescription antacids!! Well, I do feel way better off of caffeine!!:)
Congratulations on your new book Kim! I've been a fan of the Alpha Consumer for a long time. I'm so glad you finally got around to putting all that wonderful advice into a book. Can't wait for the book giveaways later this week. =)
I would love to win a ticket! Have never been to a blog conference but it sounds like a great way to learn more about blogging. As for the session I would like to attend, it's a tie between your collaboration vs competition session, and the session on using social media to grow your presence.
I think I know why your lettuce doesn't wilt until you lift off the lid: inside the pot, the air is really, really hot, so it's also really light. [Think of a hot air balloon.] So the pressure on the lettuce's cells isn't very high. Similarly, the water inside each cell has been turned to steam, and this is creating its own pressure on the inside of the cell, holding it up.
Once you lift off the lid, the cold, dense air presses down on the lettuce's cells, collapsing them, giving the effect of wilted lettuce.
That is a great attitude Miguel. At the rate we're going, I don't think the government will have any money set aside for our generation's retirement. We've got to take care of ourselves or end up working the checkout line at Walgreens when we're 85.
"Only the Paranoid Survive". Thank you, now I feel much better. Although I think credit card may not be as bad if you only have one and put all the bills on it so you only have to make one payment a month. I agree with you about the network part. It's like a social insurance. If you fall down the pit of financial crisis, you can still get many things done without paying a lot of money.
I appreciate how you don't talk down to people who selected the family track. Just because I'm not a high power executive doesn't mean my dream of having a wonderful family isn't as valid of a life choice. Kudos for getting that right Kimberley.
Good points. True, I wouldn't suggest that we should all be walking around with $5-10K in our pockets for a good used car. My point is to assert that cash is often simpler, more efficient and faster than debit or credit. Just this morning I was in line behind someone at the supermarket and the machine didn't read her debit card correctly, then the PIN number she entered was incorrect or mis-typed. I was ready to go with my ten-dollar bill for about 5 minutes before it was all rectified.
GreenSwitch has lowered their prices! Now master switches are only $100.00, thermostats are $95.00, outlets and switches are just $60.00. Instead of paying thousands of dollars and waiting 24 months for a payback, you can now save over 40% off our original prices thanks to a new manufacturer. Check out GreenSwitch at www.greenswitch.tv/ and see how you can start saving on your monthly electric bill.
Great post Kimberly. I'm 26 years old and whenever I even think about buying something I always think about a trip that I wanted to take on a vacation to deter me from purchasing these wants. The ultimate thought of retiring earlier than my peers is probably the main reason why I save most of my money.
I think we are in for a more expensive winter. Not because the price to heat my home will increase, but because the winter is going to be colder. I have no proof for this feeling, but I think we are in for a colder experience this season.
Sorry, but you really weighted the speed issue when you stated "having the appropriate amount of cash in hand." How many people are going to be standing in line with exact change for their purchases after taxes? Not many. Plenty will dig through their wallets or purses to scrounge a couple of coins, or will wait as the cashier retrieves their change. God forbid they're out of pennies, then you'll be waiting as the manager brings up a new roll.
I agree about needing cash for purchases from private sellers via Craigslist, etc. However, why would you be carrying enough cash day-to-day to purchase a used car? A stop by the bank would be necessary whether you're a cash or plastic carrier in these instances.
I rarely ever carry cash on me anymore. I just don't see the need. Very few establishments I frequent don't accept credit/debit cards. In those cases, they always seem to have an ATM on hand, or I run through the bank drive-up on my way.
I find the lack of anonymity to be a good thing. Paying by card keeps a tally of when, where and how much I spend. No longer do I stop to wonder what I did with that last twenty. Did I spend it? Did I lose it? I don't have any cash on hand to lose, or be stolen. If a card is lost or stolen, you simply make a phone call and cancel it. Lose cash, and it's gone.
I agree with the above lessons except #4 is a HUGE mistake. One needs to learn to use credit card exactly in the amount of budgeted cash and pay the balance in full the last day of the free payment cycle - automatic deduction from your checking account ensures that you never pay a penny in any fees and get plenty of perks (miles or cash rebate). This way you borrow money from card issuing bank while your own cash is earning interest in your bank. However the biggest advantage is in building your credit score!!! With the highest possible credit score you save thousand and thousand of dollars on your mortgage and other loans and qualify for the better possitions with higher wages. Paying with cash is the worst advice for people with limited income. They will end up paying higher than usual rent for their whole lives and working entry level jobs. Credit score is not based on the amount of money one has, but on the way one can utilize the credit. You just have to learn the proper way to use the credit card(s) and set up the automatic payment system. I live just above poverty level, however my credit score is around 780. So please don't teach Lesson #4 if you would like to have easier future, so you would not need to strugle for the whole life. Learn how the financial system work and use it to your advantage. Learn about the proper investment, as cash savings will never work for you due to the inflation.
Sugestion for new Lesson #4:
* Never carry cash - you will not buy any coffee, candy or other overpriced snacks on streets.
* Never carry cash - if your vallet gets stolen, nobody returns your cash (there is zero liability for stolen credit cards, new ones are issued right away and overnighted for free)
* Never carry cash - you will be an easy target for robbery. So many people loose thier lives for paper money. Pick pocketers watch shoppers during payments and follow the easy targets.
* Never carry cash - your vallet without cash is easy to carry in the inside pocket of your pants or skirt. Credit card holder (includes driver's licence) is not a bulky item and doesn't require hand bag for ladies - the easiest target for thiefs.
* Never carry cash if you can't afford or don't want to support beggars on the street, with no cash in your pocket you won't feel pressured about not sharing your hard earned money with alcoholics or other addicts.
*Never carry cash if you are unable to say "NO" to you friend, co-worker or a relative, who constantly asks you to borrow money, but never seems to remember to repay it back. No cash policy is an easy solution to get rid of leechers.
* Never carry cash for store purchases of any amount - cash payment doesn't come with the extra waranties as credit card payments do, potentially saving you large amounts in the disputes over bad services and products.
* Never use cash or checks for utility payments - set up automatic credit card payment for each month, that way you are never late so you avoid any late fees and deductions on your credit score, you don't spend a penny on postage and time for writing those checks and mailing them. One year of utility payments on time and in full can raise your credit score around 100 points. If you set up automatic payments using your credit card, there is no deposit fee required from utility companies and you can save this money in the interest bearing account.
*Never use cash for an airline ticket purchase. You could be subjected to an extra profiling and even placed on a "no fly list".
*Never use cash if you are on a strict budget. Credit card statement never lies. No matter how hard you try to tract your cash, you never remember all your small purchases and loose coins. You can tract your budget categories daily, weekly, monthly or in any categorie on your computer or over the phone. Credit card statement shows you details about every transaction.
*Never use cash for payments if you like to make tax accounting a breeze. Credit card company sends you end of the year summary of all your expenses, divided into appropriate categories and with comparisons to previous years and national averages. Such summary automatically transfers data into your tax preparation software. All your credit card purchases can be traced even if you don't have an original receipt so you have a proof in case of an audit of your tax return.
*With regular credit card use in any amount, the credit limit increases dramatically and so does the credit score.
*Always hide some cash in your car and in your home for an emergency. Keep it in a sealed envelope and in hard to get to it place.
*If you can't learn how to use credit card in the above described way, I'm sorry for you. In that case, work hard and be proud of showing your cash to every cashier and shoppers around you. Buy a gun to protect your life and cash. Enjoy the evenings spend with your checkbook, quality time standing in a line in the post office to purchase plenty of stamps and sharpening your mind with remembering each and every one bill deadline.
* How many airline tickets do you get for using cash? Note that the airline seat is the same regardless if you get yours for free or if you use your cash.
Do you get any cash rebate for using cash? Does your cash provide you with the free car rental or upgrade of size? Same goes for hotels and entertainment venues. Vacations are always fun, however they are even more fun if they are a present from your credit card issuing bank. And just in case your flight crashes, your relatives would inherit up to $1,000,000 - compliments of your credit card. In less serious cases such as delayed luggage, you will be reimbursed for all necessary purchases.
I probably agree with you for the most part, but I'd make a couple changes. First, I'd say that the root cause was that people bought things they couldn't afford and defaulted. Then I'd agree that they shouldn't have done that and that the banks shouldn't have let them borrow that money, but I'd also point out that the government told the banks to do it and made it really easy for them to do so.
I think that if the government had left its hands out of business to begin with, the problem either wouldn't have existed or would have been much, much easier.
The government also just makes it worse every time they try to "fix" it. Let failures fail. People need to learn from their mistakes, not get rewarded from them.
Great article.
My grandma is going through this exact same situation. I am starting an awareness campaign to bring attention to this issue. My grandma will not listen to anyone except these people who are taking her money. If you are interested in joining my campaign, please reply to this comment and I will give you my email address.
How long does the homemade mayo and ketchup keep? When I buy these, they last forever. Is that true for the homemade versions too or is it only safe to use for days?
Wonderful article to be featured in the October 30th Stress Management Blog Carnival at http://almasimanagingstress.blogspot.com/
and at the October 30th Prosper Biblically Blog Carnival at
http://prosperbiblically.blogspot.com/
Reuse brown paper bags from the grocery store. Turn them inside out, wrap your gift and decorate with your children hand prints, sponge paint, or various art work. If you have a larger gift, cut the paper bags flat and tape two or more together. Cut a potato in half and cut out a stencil or design, dip into paint and have fun! Write a poem or special quote on the outside. Use twine or hemp to tie it.
Layers, layers, and more layers. There is no sense in turning the heat up when you can simply put on another layer of clothing.
After having lived with a couple thieving roommates... Here's a product I created that gives you a few more options when selecting a secret spot.
Works great in the house and in the car.
www.toysfrommyattic.com/StashableStorageTube
Edit: Sorry, I forgot to add that in a private school, we are academically better than a lot of other public schools but not so much that (in Australia) it would be easy to get into an Ivy League, Oxford or Cambridge, or to do Law or Med at USyd or UNSW or ANU. The academically "better" performance is limited to some students - as I'm sure it'd be the same in a public school.
I am from Australia and I am currently a private school student.
In Australia - private schools are ****. I am a boarder as well, so my parents pay like $40,000+ per year and I am regretting the education here now. I used to enjoy the extra co-curricular, but now as I approach my university-entrance exams, I find private schools much worse academically than the selective schools.
If I had to re-do, I would only enter private schools on the basis of scholarships or for other merits than academic.
I would also not choose Australia to be a boarder. I'd probably go to the US or UK. Worse comes to worse, an international school.
Leigh
I believe, from all the research that I have done on coffee and caffeine, that the negatives far outweigh any positives that caffeine would do to your body and your mind by ingesting it! Although I do agree that using caffeine as a cellulite treatment or in eye and skin creams do work!! It is unnatural to drink caffeine which puts your body in a state of fight or flight mode, when that causes so much exhaustion to your adrenal glands!! I have read that drinking caffeine puts a lot of stress on your adrenal glands,which will only leave you feeling exhausted! Then, this can lead to high cortisol levels which causes weight gain! Coffee is loaded with tons of bad acids,pesticides, and a high amount of caffeine in which all of these can be stomach irritants, causing all kinds of stomach problems like acid reflux and IBS etc etc. Also, if you are sensitive or intolerant to caffeine, it can mimic psychological and mental problems like depression, bipolar,add, and even schizophrenia and others! It can cause adrenal fatigue, skin rashes, and even joint pain! Caffeine also can cause anxiety and even anxiety attacks,heart palpitations, and worsens P.M.S. symptoms! I finally quit caffeine after a long battle of my love hate relationship with coffee!! I found out I was intolerant to caffeine, and I did suffer many of the above symptoms but not the schizophrenia! I know a lot of people can handle caffeine, but just look how much of the U.S. is on prescription antacids!! Well, I do feel way better off of caffeine!!:)
Congratulations on your new book Kim! I've been a fan of the Alpha Consumer for a long time. I'm so glad you finally got around to putting all that wonderful advice into a book. Can't wait for the book giveaways later this week. =)
"people actually miss out on spontaneous opportunities to save when they focus on logistics instead of their abstract goals."
This part is fascinating. What exacty is a spontaneous savings opportunity?
I would love to win a ticket! Have never been to a blog conference but it sounds like a great way to learn more about blogging. As for the session I would like to attend, it's a tie between your collaboration vs competition session, and the session on using social media to grow your presence.
I think I know why your lettuce doesn't wilt until you lift off the lid: inside the pot, the air is really, really hot, so it's also really light. [Think of a hot air balloon.] So the pressure on the lettuce's cells isn't very high. Similarly, the water inside each cell has been turned to steam, and this is creating its own pressure on the inside of the cell, holding it up.
Once you lift off the lid, the cold, dense air presses down on the lettuce's cells, collapsing them, giving the effect of wilted lettuce.
That is a great attitude Miguel. At the rate we're going, I don't think the government will have any money set aside for our generation's retirement. We've got to take care of ourselves or end up working the checkout line at Walgreens when we're 85.
"Only the Paranoid Survive". Thank you, now I feel much better. Although I think credit card may not be as bad if you only have one and put all the bills on it so you only have to make one payment a month. I agree with you about the network part. It's like a social insurance. If you fall down the pit of financial crisis, you can still get many things done without paying a lot of money.
That sounds amazing! 32 calories for 2 tablespoons? This sounds like a winner.
I appreciate how you don't talk down to people who selected the family track. Just because I'm not a high power executive doesn't mean my dream of having a wonderful family isn't as valid of a life choice. Kudos for getting that right Kimberley.
Good points. True, I wouldn't suggest that we should all be walking around with $5-10K in our pockets for a good used car. My point is to assert that cash is often simpler, more efficient and faster than debit or credit. Just this morning I was in line behind someone at the supermarket and the machine didn't read her debit card correctly, then the PIN number she entered was incorrect or mis-typed. I was ready to go with my ten-dollar bill for about 5 minutes before it was all rectified.
Price-checking apps are great, but there are a lot of time-wasting apps out there, too.
Pandora is cool, but I've found myself buying a lot of iTunes songs with it, too. Sometimes, it's TOO easy to part with your money. :)
If you're looking to save actual money on things you buy anyway, though, check out the CoupSmart app.
GreenSwitch has lowered their prices! Now master switches are only $100.00, thermostats are $95.00, outlets and switches are just $60.00. Instead of paying thousands of dollars and waiting 24 months for a payback, you can now save over 40% off our original prices thanks to a new manufacturer. Check out GreenSwitch at www.greenswitch.tv/ and see how you can start saving on your monthly electric bill.
Great post Kimberly. I'm 26 years old and whenever I even think about buying something I always think about a trip that I wanted to take on a vacation to deter me from purchasing these wants. The ultimate thought of retiring earlier than my peers is probably the main reason why I save most of my money.
I think we are in for a more expensive winter. Not because the price to heat my home will increase, but because the winter is going to be colder. I have no proof for this feeling, but I think we are in for a colder experience this season.
Sorry, but you really weighted the speed issue when you stated "having the appropriate amount of cash in hand." How many people are going to be standing in line with exact change for their purchases after taxes? Not many. Plenty will dig through their wallets or purses to scrounge a couple of coins, or will wait as the cashier retrieves their change. God forbid they're out of pennies, then you'll be waiting as the manager brings up a new roll.
I agree about needing cash for purchases from private sellers via Craigslist, etc. However, why would you be carrying enough cash day-to-day to purchase a used car? A stop by the bank would be necessary whether you're a cash or plastic carrier in these instances.
I rarely ever carry cash on me anymore. I just don't see the need. Very few establishments I frequent don't accept credit/debit cards. In those cases, they always seem to have an ATM on hand, or I run through the bank drive-up on my way.
I find the lack of anonymity to be a good thing. Paying by card keeps a tally of when, where and how much I spend. No longer do I stop to wonder what I did with that last twenty. Did I spend it? Did I lose it? I don't have any cash on hand to lose, or be stolen. If a card is lost or stolen, you simply make a phone call and cancel it. Lose cash, and it's gone.
I agree with the above lessons except #4 is a HUGE mistake. One needs to learn to use credit card exactly in the amount of budgeted cash and pay the balance in full the last day of the free payment cycle - automatic deduction from your checking account ensures that you never pay a penny in any fees and get plenty of perks (miles or cash rebate). This way you borrow money from card issuing bank while your own cash is earning interest in your bank. However the biggest advantage is in building your credit score!!! With the highest possible credit score you save thousand and thousand of dollars on your mortgage and other loans and qualify for the better possitions with higher wages. Paying with cash is the worst advice for people with limited income. They will end up paying higher than usual rent for their whole lives and working entry level jobs. Credit score is not based on the amount of money one has, but on the way one can utilize the credit. You just have to learn the proper way to use the credit card(s) and set up the automatic payment system. I live just above poverty level, however my credit score is around 780. So please don't teach Lesson #4 if you would like to have easier future, so you would not need to strugle for the whole life. Learn how the financial system work and use it to your advantage. Learn about the proper investment, as cash savings will never work for you due to the inflation.
Sugestion for new Lesson #4:
* Never carry cash - you will not buy any coffee, candy or other overpriced snacks on streets.
* Never carry cash - if your vallet gets stolen, nobody returns your cash (there is zero liability for stolen credit cards, new ones are issued right away and overnighted for free)
* Never carry cash - you will be an easy target for robbery. So many people loose thier lives for paper money. Pick pocketers watch shoppers during payments and follow the easy targets.
* Never carry cash - your vallet without cash is easy to carry in the inside pocket of your pants or skirt. Credit card holder (includes driver's licence) is not a bulky item and doesn't require hand bag for ladies - the easiest target for thiefs.
* Never carry cash if you can't afford or don't want to support beggars on the street, with no cash in your pocket you won't feel pressured about not sharing your hard earned money with alcoholics or other addicts.
*Never carry cash if you are unable to say "NO" to you friend, co-worker or a relative, who constantly asks you to borrow money, but never seems to remember to repay it back. No cash policy is an easy solution to get rid of leechers.
* Never carry cash for store purchases of any amount - cash payment doesn't come with the extra waranties as credit card payments do, potentially saving you large amounts in the disputes over bad services and products.
* Never use cash or checks for utility payments - set up automatic credit card payment for each month, that way you are never late so you avoid any late fees and deductions on your credit score, you don't spend a penny on postage and time for writing those checks and mailing them. One year of utility payments on time and in full can raise your credit score around 100 points. If you set up automatic payments using your credit card, there is no deposit fee required from utility companies and you can save this money in the interest bearing account.
*Never use cash for an airline ticket purchase. You could be subjected to an extra profiling and even placed on a "no fly list".
*Never use cash if you are on a strict budget. Credit card statement never lies. No matter how hard you try to tract your cash, you never remember all your small purchases and loose coins. You can tract your budget categories daily, weekly, monthly or in any categorie on your computer or over the phone. Credit card statement shows you details about every transaction.
*Never use cash for payments if you like to make tax accounting a breeze. Credit card company sends you end of the year summary of all your expenses, divided into appropriate categories and with comparisons to previous years and national averages. Such summary automatically transfers data into your tax preparation software. All your credit card purchases can be traced even if you don't have an original receipt so you have a proof in case of an audit of your tax return.
*With regular credit card use in any amount, the credit limit increases dramatically and so does the credit score.
*Always hide some cash in your car and in your home for an emergency. Keep it in a sealed envelope and in hard to get to it place.
*If you can't learn how to use credit card in the above described way, I'm sorry for you. In that case, work hard and be proud of showing your cash to every cashier and shoppers around you. Buy a gun to protect your life and cash. Enjoy the evenings spend with your checkbook, quality time standing in a line in the post office to purchase plenty of stamps and sharpening your mind with remembering each and every one bill deadline.
* How many airline tickets do you get for using cash? Note that the airline seat is the same regardless if you get yours for free or if you use your cash.
Do you get any cash rebate for using cash? Does your cash provide you with the free car rental or upgrade of size? Same goes for hotels and entertainment venues. Vacations are always fun, however they are even more fun if they are a present from your credit card issuing bank. And just in case your flight crashes, your relatives would inherit up to $1,000,000 - compliments of your credit card. In less serious cases such as delayed luggage, you will be reimbursed for all necessary purchases.