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.
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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.
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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!
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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!
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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.
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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.
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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!
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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.
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