National unemployment rose to 9.8 percent during November, equaling 15.1 million Americans out of work. While foreclosure rates have fallen in recent months, the number of people delinquent on their mortgages doesn't seem to be changing, instead it appears banks are becoming more lenient on late payers in an attempt to stem the flood of foreclosed properties on the market.
How does this affect Christmas?
Many American families are planning on having fewer gifts under the tree this year. But, what does that translate to in real dollars? Per this Gallup poll, Americans plan to spend an average of $715 on gifts for the 2010 holiday season.
For some of you this will seem like an outrageous amount of money and for others, this may not seem like enough. So for purposes of perspective, let's consider this based upon percentage of annual income. Per this article, the average American income is right around $44,000 per year. The median income is approximately $33,000 per year.
Average - $715/$44,000 = 1.6% of gross income spent on Christmas presents.
Median - $715/$33,000 = 2.2% of gross income on Christmas presents. How does this fit with your personal spending plans? Does it seem on track?
For further perspective, the woman's husband that I lent money to in Cambodia earns $4 US per day. What we typically spend on Christmas is nearly his entire annual salary.
Why do we spend so much?There are plenty of external pressures to spend more and more each year.
Per Wikipedia:
"Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in even greater amounts."
How are the pressures pushing consumerism?
Christmas ads starting in September.
Keeping up with the Jones's,
Outdoing an ex-spouse perhaps,
- Status symbol of your success,
- American cultural trend that how much I spend on you is a direct reflection of how much I care about you...
What are we trying to accomplish, really?
Are we spending for the sake of our children?
Per this NY Times article, parents' average contribution to their child's college costs vary between $3,500 and $18,000 depending on income bracket. Of those funds, $700 to $2,800 is borrowed by the parents. How about we cut Christmas expenditures in half and put it into college savings instead?
Continued on the next pageThe theory is simple: "If you don't have the money, don't charge it. Try to leave your credit card at home and only use it to pay bills," advises April Lewis, director of education for Consolidated Credit Counseling Services. Then immediately pay off your credit-card balance. As for old credit-card debt, sit down and commit to paper a plan for paying them off. Go for a quick hit, like paying off the smallest balance first, or decide to take on the highest rate card first. Get the job done.
Here's a second tip: Be proactive about managing your credit. Call up your lender and ask it to lower your interest rate. Usually, lenders will lower callers' rates by 2% to 3%, says Scott Gamm, founder of HelpSaveMyDollars.com. Also check your credit report. You can check your credit for free at annualcreditreport.com, for example. If you see mistakes, contact the credit agencies and get those mistakes corrected. If errors are dragging down your score, eliminating them can boost it to where it belongs and make you eligible for better rates.
2. Think automation
Free online banking tools can make it easier to manage your finances with less work. To help grow your savings, for example, you can schedule regular transfers from your checking account. Manisha Thakor, author of Get Financially Naked: How to Talk Money With Your Honey, suggests setting up the transfer of a set amount of money into your savings account every pay day.
Also automate recurring bill payments so you never miss a due date or pay a late fee, which sends money down the drain. Even without late fees, timely payments are key: 35% of your credit score is based on your ability to make payments on time. If you sign up for automatic payments, however, make sure to check your monthly bills for errors. One other caveat: "Make sure you have enough cushion in your checking account to avoid any overdrafts" before setting up auto-payments, money coach Lora Sasiela says.
robert shumake
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
Ugandan High Court Bans Publishing Lists of Gays - AOL <b>News</b>
Gay rights activists in Uganda are savoring a rare victory after the country's highest court banned the media from publishing lists of homosexuals.
robert shumake
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
Ugandan High Court Bans Publishing Lists of Gays - AOL <b>News</b>
Gay rights activists in Uganda are savoring a rare victory after the country's highest court banned the media from publishing lists of homosexuals.
robert shumake detroit
National unemployment rose to 9.8 percent during November, equaling 15.1 million Americans out of work. While foreclosure rates have fallen in recent months, the number of people delinquent on their mortgages doesn't seem to be changing, instead it appears banks are becoming more lenient on late payers in an attempt to stem the flood of foreclosed properties on the market.
How does this affect Christmas?
Many American families are planning on having fewer gifts under the tree this year. But, what does that translate to in real dollars? Per this Gallup poll, Americans plan to spend an average of $715 on gifts for the 2010 holiday season.
For some of you this will seem like an outrageous amount of money and for others, this may not seem like enough. So for purposes of perspective, let's consider this based upon percentage of annual income. Per this article, the average American income is right around $44,000 per year. The median income is approximately $33,000 per year.
Average - $715/$44,000 = 1.6% of gross income spent on Christmas presents.
Median - $715/$33,000 = 2.2% of gross income on Christmas presents. How does this fit with your personal spending plans? Does it seem on track?
For further perspective, the woman's husband that I lent money to in Cambodia earns $4 US per day. What we typically spend on Christmas is nearly his entire annual salary.
Why do we spend so much?There are plenty of external pressures to spend more and more each year.
Per Wikipedia:
"Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in even greater amounts."
How are the pressures pushing consumerism?
Christmas ads starting in September.
Keeping up with the Jones's,
Outdoing an ex-spouse perhaps,
- Status symbol of your success,
- American cultural trend that how much I spend on you is a direct reflection of how much I care about you...
What are we trying to accomplish, really?
Are we spending for the sake of our children?
Per this NY Times article, parents' average contribution to their child's college costs vary between $3,500 and $18,000 depending on income bracket. Of those funds, $700 to $2,800 is borrowed by the parents. How about we cut Christmas expenditures in half and put it into college savings instead?
Continued on the next pageThe theory is simple: "If you don't have the money, don't charge it. Try to leave your credit card at home and only use it to pay bills," advises April Lewis, director of education for Consolidated Credit Counseling Services. Then immediately pay off your credit-card balance. As for old credit-card debt, sit down and commit to paper a plan for paying them off. Go for a quick hit, like paying off the smallest balance first, or decide to take on the highest rate card first. Get the job done.
Here's a second tip: Be proactive about managing your credit. Call up your lender and ask it to lower your interest rate. Usually, lenders will lower callers' rates by 2% to 3%, says Scott Gamm, founder of HelpSaveMyDollars.com. Also check your credit report. You can check your credit for free at annualcreditreport.com, for example. If you see mistakes, contact the credit agencies and get those mistakes corrected. If errors are dragging down your score, eliminating them can boost it to where it belongs and make you eligible for better rates.
2. Think automation
Free online banking tools can make it easier to manage your finances with less work. To help grow your savings, for example, you can schedule regular transfers from your checking account. Manisha Thakor, author of Get Financially Naked: How to Talk Money With Your Honey, suggests setting up the transfer of a set amount of money into your savings account every pay day.
Also automate recurring bill payments so you never miss a due date or pay a late fee, which sends money down the drain. Even without late fees, timely payments are key: 35% of your credit score is based on your ability to make payments on time. If you sign up for automatic payments, however, make sure to check your monthly bills for errors. One other caveat: "Make sure you have enough cushion in your checking account to avoid any overdrafts" before setting up auto-payments, money coach Lora Sasiela says.
robert shumake
robert shumake
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
Ugandan High Court Bans Publishing Lists of Gays - AOL <b>News</b>
Gay rights activists in Uganda are savoring a rare victory after the country's highest court banned the media from publishing lists of homosexuals.
robert shumake
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
Ugandan High Court Bans Publishing Lists of Gays - AOL <b>News</b>
Gay rights activists in Uganda are savoring a rare victory after the country's highest court banned the media from publishing lists of homosexuals.
robert shumake detroit
What Are Values, and Why Are They Important?
Values are principles, standards or qualities you consider worthwhile or desirable. Values will vary greatly from person to person because they depend on your personal judgment. What principles, standards, or qualities do you consider worthwhile or desirable? In other words, what are your personal values?
If you cannot answer this question confidently, you may want to continue reading. Knowing your personal values is extremely important because those values shape everything about you. Your relationships, behavior, choices, and personal identity are all affected by your values. Even if you cannot name all your values, they are still influencing every aspect of your life.
However, we are easily distracted - especially with all of the busyness and media in our lives today. It's far too easy to get sidetracked and led away from your values. This is why it's vitally important to know your personal values. Those values are your compass for the day to day decisions you must continually make, and they help draw the map of your entire life.
The Role of Values in Personal Finance
Now why would I be discussing values in a personal finance article? Isn't that more of a personal development topic? Well, yes - it is. But the truth is that your values will have an impact on your financial decisions. There is no use in looking at numbers, giving you advice, or talking about investments until you can list your personal values. As I mentioned above, your values shape everything about you. Your values affect your behavior and choices. Your behavior and choices affect your personal finances. Therefore, you must recognize and understand your values before you can really start to work on your personal finances.
For example, let's say you want to start using a budget to track your spending and find ways to save money. If your values include frugality, thrift, and organization, then this will probably be an easy goal. But if your top values include extravagance and liberation, you're probably going to run into some problems trying to stick to a budget.
So before you spend any more time reading about personal finance, take a few minutes to identify your personal values. There are different ways to do this, but I'll explain the method I've used. If this doesn't work for you, then a quick Google search will provide you with other ways to accomplish the task. If you are married, have a partner, or your finances somehow involve other people, then you may want to do this exercise with the other people involved. This will elicit an important discussion and make sure you are in agreement about your guiding principles.
Identifying Your Values
To start this process, you will want to make sure you have time to focus. Sit down with some paper, and ask yourself this question: What is most important to me in life? Write down your values to answer this question. Try to make these one or two word phrases, and don't worry about the order yet.
If you are having trouble listing specific values, you can try using Steve Pavlina's list of values (http://www.stevepavlina.com/articles/list-of-values.htm) as a starting point. Go through this list and write down the values that you feel are most important. Try not to choose the values you think you should have, but choose the ones you find truly important in your life. If you'd rather not write these down on paper, I have included a link to Steve Pavlina's List of Values in a Microsoft Word Document (www.crackerjackgreenback.com/wp-content/uploads/2008/05/list-of-values.doc) so you can edit it in an electronic format.
Prioritizing Your Values
Now try to narrow down this list by combining similar values into a single value (or two if you need to). You want to get this list down to no more than 10-15 values. Then you need to prioritize your list of values. You can do this by listing your top value first, then your second highest value, and so on until you've prioritized your entire list. If you are having difficulty prioritizing this list, then you might want to try CNN Money's "The Prioritizer" calculator at cgi.money.cnn.com/tools/prioritize/prioritize_101.jsp. The Prioritizer allows you to list up to 15 items and then asks you a series of questions that forces you to choose between each possible pair of goals. Once you're finished, the calculator will give you a list of your values in priority order according to your choices.
Examine Your Values
Now that you have your prioritized list of personal values, it's time to examine these values closely. Are there any that you feel do not fit? Are there any you'd like to change? This can mean dropping a value, adding a value, or tweaking your priorities. Some of your financial goals may require changing your values or priorities, so feel free to reexamine this list at any time.
Evaluate How Your Values Should Affect Your Life
Finally, it's time to consider how your specific list of values will affect your life. If these are the things that are most important to you in your life, how should they steer your decisions? You might feel like you're not following your values very well at this point in your life, but you have the ability to change that right now. With your list of values in hand, you can evaluate any decision with intelligence and confidence. You just have to ask yourself: What should I do in this situation if these are my guiding principles in life? Apply this method to every area of your life, and you're sure to see your life becoming more aligned with your values. As your situation changes, you might need to revise your values. Adapting to changes in your life will be crucial to your success in accomplishing your goals.
Now that you have your list of personal values, you can proceed with evaluating and planning your personal finances. These values should help lead you in making the necessary decisions about your goals, priorities, necessities, and the things you're willing to sacrifice. All of these are important in reaching a financial future that will ultimately make you happy and fulfilled. For more information, you can read Steve Pavlina's take on Living Your Values at http://www.stevepavlina.com/articles/living-your-values-1.htm.
robert shumake
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
Ugandan High Court Bans Publishing Lists of Gays - AOL <b>News</b>
Gay rights activists in Uganda are savoring a rare victory after the country's highest court banned the media from publishing lists of homosexuals.
robert shumake
robert shumake detroit
National unemployment rose to 9.8 percent during November, equaling 15.1 million Americans out of work. While foreclosure rates have fallen in recent months, the number of people delinquent on their mortgages doesn't seem to be changing, instead it appears banks are becoming more lenient on late payers in an attempt to stem the flood of foreclosed properties on the market.
How does this affect Christmas?
Many American families are planning on having fewer gifts under the tree this year. But, what does that translate to in real dollars? Per this Gallup poll, Americans plan to spend an average of $715 on gifts for the 2010 holiday season.
For some of you this will seem like an outrageous amount of money and for others, this may not seem like enough. So for purposes of perspective, let's consider this based upon percentage of annual income. Per this article, the average American income is right around $44,000 per year. The median income is approximately $33,000 per year.
Average - $715/$44,000 = 1.6% of gross income spent on Christmas presents.
Median - $715/$33,000 = 2.2% of gross income on Christmas presents. How does this fit with your personal spending plans? Does it seem on track?
For further perspective, the woman's husband that I lent money to in Cambodia earns $4 US per day. What we typically spend on Christmas is nearly his entire annual salary.
Why do we spend so much?There are plenty of external pressures to spend more and more each year.
Per Wikipedia:
"Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods or services in even greater amounts."
How are the pressures pushing consumerism?
Christmas ads starting in September.
Keeping up with the Jones's,
Outdoing an ex-spouse perhaps,
- Status symbol of your success,
- American cultural trend that how much I spend on you is a direct reflection of how much I care about you...
What are we trying to accomplish, really?
Are we spending for the sake of our children?
Per this NY Times article, parents' average contribution to their child's college costs vary between $3,500 and $18,000 depending on income bracket. Of those funds, $700 to $2,800 is borrowed by the parents. How about we cut Christmas expenditures in half and put it into college savings instead?
Continued on the next pageThe theory is simple: "If you don't have the money, don't charge it. Try to leave your credit card at home and only use it to pay bills," advises April Lewis, director of education for Consolidated Credit Counseling Services. Then immediately pay off your credit-card balance. As for old credit-card debt, sit down and commit to paper a plan for paying them off. Go for a quick hit, like paying off the smallest balance first, or decide to take on the highest rate card first. Get the job done.
Here's a second tip: Be proactive about managing your credit. Call up your lender and ask it to lower your interest rate. Usually, lenders will lower callers' rates by 2% to 3%, says Scott Gamm, founder of HelpSaveMyDollars.com. Also check your credit report. You can check your credit for free at annualcreditreport.com, for example. If you see mistakes, contact the credit agencies and get those mistakes corrected. If errors are dragging down your score, eliminating them can boost it to where it belongs and make you eligible for better rates.
2. Think automation
Free online banking tools can make it easier to manage your finances with less work. To help grow your savings, for example, you can schedule regular transfers from your checking account. Manisha Thakor, author of Get Financially Naked: How to Talk Money With Your Honey, suggests setting up the transfer of a set amount of money into your savings account every pay day.
Also automate recurring bill payments so you never miss a due date or pay a late fee, which sends money down the drain. Even without late fees, timely payments are key: 35% of your credit score is based on your ability to make payments on time. If you sign up for automatic payments, however, make sure to check your monthly bills for errors. One other caveat: "Make sure you have enough cushion in your checking account to avoid any overdrafts" before setting up auto-payments, money coach Lora Sasiela says.
robert shumake
New Edition of Huckleberry Finn to Drop N-Word: Instant Reactions
Auburn University professor Alan Gribben, along with NewSouth Books, plans to release a newly edited edition of the Mark Twain classic, with every instance of the N-word replaced with the word.
Dawn Comes Twice in European Solar Eclipse - AOL <b>News</b>
A partial solar eclipse darkened European skies just after dawn this morning, casting an eerie darkness over the continent just as morning light was supposed to be spreading. But cloud cover prevented sky-gazers across much of the ...
Ugandan High Court Bans Publishing Lists of Gays - AOL <b>News</b>
Gay rights activists in Uganda are savoring a rare victory after the country's highest court banned the media from publishing lists of homosexuals.
robert shumake detroit
robert shumake
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