Pay Day Loans A Rip-Off
No question that pay-day loans are very expensive at 524% interest charge per year! If you borrowed $1,000.00 that means you would have to pay back $5,240.00. That huge expense just to receive money two weeks sooner than your employer will pay. I don’t get it? Why has this become the most popular fad going? In my large city area, there are more of these pay-day-loan stores than McDonalds, Wendy's, Taco Time, Taco Bell, KFC and Carl’s Jr. combined. They are rolling in the dough. Let’s keep our eyes open and see what happens next.
Money and Emotions
I talk to someone almost every day who is depressed because they are short of money to do something the want. Why is that? Why is it that it seems we are all short of money for something we want? Get a pay-raise and soon it is like you never had it. Get a tax refund, and soon it is gone. We all must prioritize our money, or we will be racing through life and never have enough.
Look To The Past
The depression of 1929 changed the world. As the roaring 20’s heated up and people felt it would never end. When it hit and 50% of the banks failed, people lost their savings and were forced to give up everything. The depression lasted for many years. World War II helped to get money flowing enough to stimulate the economy. Today, most people have some retirement monies tied up in 401(k)’s. If there is a melt down in the stock market again, it will be hard to move fast enough to get money out. It looks like another 1929 staged ready to go bust. Beware!
Identity Theft
More and more people are waking up to debt-collectors calling about a balance of debt they know nothing about. Or, some people get a letter comes from the IRS because they did not report some $5,000 of earned income. Or, some people get pulled over by the police and are informed they have a bench warrant for your arrest. -- When your identity is stolen, you may not find out from one of these three experiences for one or two years, long after the harm is done and gone. Principle 6 stating the Rules Are Always Changing is so crucial. Identity theft is on the increase so rapidly that these horrible surprises are daily. I highly recommend paying for protection from these kind of diseases. Let someone monitor your credit daily, then immediately inform you when any new inquiry or a derogatory report hits your credit. Be aware!
Protect Your Personal I.D.
Your personl information it very important. Don’t send your Social Security # over the internet. Also, pull your full credit report at least once a year. Examine it and know what’s in it. Set up virus blockers, spyware and firewalls etc. on your computer. Prepare to receive an alert when anything changes at your Bank. Be careful. This takes effort, but it can save you money and heartache.
New Tax Law Changes
I suggest you subscribe to a tax newsletter. For example, a new deduction amount for business miles is 48.5 ¢. Plus, more money can be put into retirement plans. Staying up to date on these changes can make you allot of money. Remember to Know the Rules.
Buying A Home Now Or Wait And Save A Down Payment
The problem is that inflation affects how much a home goes up in value and or costs. If a home is increasing in value by 5% of appraisal, say on $200, 000; then you have to be saving $800 a month just to stay even. If you did want to risk it and take out 2nd mortgage to make the down payment it might work. But is the home value were to drop in value by 20%, you are in big trouble et all depends!
Failure Always Comes Before Success
Anyone who has achieved greatness failed beforehand many times. Examples abound. Madonna once had to sell doughnuts in Times Square to make ends meet. James Earl Jones waxed floors for a living. Jerry Seinfeld sold light bulbs over the phone and peddled false jewelry on the street. Jay Leno failed the employment test at Woolworths and JFK lost the election for freshman class at Harvard. Dr. Seuss’s first book was rejected by 27 publishers, and John Grisham’s was rejected 12 times.