Why Banks are in Total Control

I recently read this article and was blown away by the truth it portends. Banks control the world. Read and educate yourself:

http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine

Investing Your Money Without Gambling: The Numbers

The core principle of a financially free person is “unearned income.” This means that you have money that makes more money without requiring you to put in any labor. Meanwhile, you can sit back with your hands behind your head and watch your wealth grow. Your goal should be to turn your earned or salaried income into investments that bring in more and more streams of unearned income. The key to this process is choosing smart, reliable investments with a decent rate of return.

The Numbers

In planning for your retirement, you decide that you would like $100,000 a year to live comfortably. How long will it take you to have enough investments or savings so that you live off of the “unearned income” that they produce each year?

If you save or invest $1000 every month, here are the rates you need to achieve your goal:

1) A 6.00% rate of return after 37.25 years will equal $1,666,660, which is the amount needed to provide you with $100,000 per year if you continue to earn 6.00% on it.

2) An 8.00% rate of return after 28 years will equal $1,250,000, which is the amount needed to provide you with $100,000 per year if you continue to earn 8.00% on it.

3) A 12.00% rate of return after 18.70 years will equal $835,00 which is the amount needed to provide you with $100,000 per year if you continue to earn 12.00% on it.

4) A 15.00% rate of return after 14.90 years will equal $666,667, which is the amount needed to provide you with $100,000 per year if you continue to earn 15.00% on it.

5) A 20.00% rate of return after 11.25 years will equal $500,000, which is the amount needed to provide you with $100,000 per year if you continue to earn 20.00% on it.

Are Energy Efficient Roofs Worth the Price?

Average Non-Energy Efficient Cost: $5,000 (common roof consisting of asphalt shingle materials)

Average Energy Efficient Cost: $15,000 - $1,500 stimulus money = $13,500 (metal or reflective shingles)

Benefits: Lifespan of 50 years vs. normal roof lifespan of 15 years. It will also reduce electricity bills through its reflective/insulation capabilities, which are most noticeable in hot, sunny climates with high levels of air conditioning usage. Attics that are well-insulated will reduce the benefits of a metal roof.

Estimated Monthly Electricity Savings: $15 ($25 in places with constant heat and sun)

Estimated Yearly Electricity Savings: $180 ($300 in places with constant heat and sun)

Analysis: If you pay for a non-energy efficient roof, you will need a replacement in 15 years, which equals a total cost of $10,000 over a 15 year timeframe with no electricity bill savings. If you buy an energy efficient roof for $15,000, you will only have paid $5000 extra over a 15 year timeframe for a roof that will last 35 more years than a common asphalt shingle roof. You will also realize an electric savings of $4,500 in ideal conditions and $2,700 in normal conditions, effectively reducing the difference between the price of energy efficient roofs and non-energy efficient roofs over a 15 year time span to $500. That means in ideal conditions you will break even on your roof investment in 15 years, and in normal weather environments it may take as much as 30 years to break even.

Recommendation: If you plan to stay in your home for 15 years or more and live in a hot and sunny location, definitely invest in an energy-efficient roof the next time you need a roof replacement. If you don’t live in conditions that will allow you to take full advantage of the metal/reflective roof, you probably will not want to invest in an energy efficient upgrade unless you plan on staying in the home for more than thirty years.

5 Daily Routines That Will Reduce Your Electric Bill

1) Change your clothing instead of the thermostat to regulate your body temperature. If it is hot, take layers off. If it is cold, wear more. This is a very simple way to leave your thermostat at a constant, comfortable temperature that minimizes the need for electricity. The more you hear your heater/air conditioning turning on and running, the more electricity you are using and the more money you are wasting.

2) Learn how to use your curtains in ways that will benefit you. Open them during the day, especially when it’s cold outside. You will allow sunlight to come in through your windows, which will double your electricity savings by warming up your house and providing illumination at the same time. Once the sun sets, make sure to turn off lights in rooms you aren’t using. An exception to this rule is with extremely hot summer days, when keeping your curtains closed may help prevent heat from entering your house and stop cool air from leaving. An air conditioner takes priority because it uses much more electricity than light bulbs.

3) Use cold water instead of hot water whenever you can. A few examples of occasions where you might possible use cold water: washing your clothes, cleaning the dishes, brushing your teeth, bathing, rinsing your hands, cleansing your face, mopping the floor, etc. If you find yourself using less and less hot water, you may be able to turn the temperature on your water heater down, saving even more on your electricity bill. If you are looking to lower your electric bill, you are probably going to want to check out five easy ways to lower your water bill as well.

4) Connect all of your media centers to one single master switch, such as a surge protector power strip. If you have a television, DVD player, Blue-Ray player, stereo system, and cable box in the same location, you will be able to flip the “smart switch” and turn all of them off at once. Otherwise they will run day and night, wasting electricity even when you aren’t using them. You can do the same thing for desktop, monitor, router, printer, and fax machines that are in your office or computer location. This idea simply expands upon one of the rules of saving electricity and reducing your monthly bill: “If you aren’t using it, turn it off.” You might notice that your home is a little cooler in the summer when you lessen the use of electrical equipment by turning them off instead of letting them idly run.

5) Refrain from continuously opening and closing your refrigerator or freezer. You will force the refrigerator into using more power to keep the inside temperature at the specified setting. It also helps to keep your freezer and refrigerator at least 60%-70% full at all times. Air warms up faster than solid items, so if the door is opened and closed constantly, a full freezer/refrigerator will reduce the amount of air space and have to use less electricity in cooling itself.

Saving Money at Outlet Malls

The next time you look in your closet and realize that it’s time to buy yourself a new wardrobe, start planning a trip to the nearest outlet mall. At an outlet mall, you will find name-brand stores selling their products directly to you at a reduced price. They receive their clothing and products straight from the factory and are located in remote locations, eliminating the need for a middle man and diminishing operating costs. This results in savings and deals much better than those you would ever find in regular retail stores or malls. A few things to consider before heading to the outlets:

- Look online for coupons or other “special deals” that you may be able to take advantage of to lower your prices even more.
- Shop out of season for the best deals (buy coats, jeans, sweaters, long-sleeved shirts in summer)
- Look for the bargains. It is not worth the trip if you buy items that are regularly priced. You will find deals that are up to 65% off already reduced prices.

The sheer size of an outlet mall is enough to attract you to it. The biggest centers literally have hundreds of stores from the highest quality manufacturers and brands. With so many store options, you have flexibility in choosing where you want to shop, which allows you to find the top prices and deals on any given day. At a regular mall you have to wait for the sales because there is a limited amount of stores. At an outlet mall, if one store doesn’t have the price you want, the one right next door to it surely will. Follow this link for a list of every outlet mall in the United States and what stores are at each location.

Buy in Bulk: Saving vs. Spending

I have had a Costco membership for over five years. Recently, I became aware of a trend that I now realize has remained consistent since my first day of membership. It happens every time I visit, from the very moment I walk in. I flash my membership card and the security guard waves me inside. Then, for about two seconds, I go through a period of intense inner struggle where I eventually convince myself that I don’t need to buy one of those giant, sleek, high definition flat screens that are staring me right in the face. I have to admit, the marketing and placement of the televisions are genius. A few minutes before I walked in, I would have smirked at the thought of spending such a vast amount of money on a whim. Thus, we have come to the inherent dangers that lie within the great price and quality you find by buying in bulk. Are you shopping wisely and only buying what you need, or are you spending increasingly more than you should on items you otherwise would have passed up?

When it comes to buying food in bulk, most of us are intelligent, reasonable people who have dominance over a special ability called “common sense.” But when we see a low price attached to a large amount, we stop listening to that voice in the back of our heads. This bulk spending syndrome is somewhat similar to the saying, “Your eyes are bigger than your stomach.” If you only eat five bananas per week, but buy twenty, that means fifteen are going to go to waste. What we often find with buying in bulk is that we will be pulled in by an amazingly low price, only to let the product go to waste because it is simply too much to use in a realistic amount of time. On the other hand, if you can buy something such as meat and freeze what you don’t use, you will definitely save money. The boundary between saving time and money and buying more than you can use is a small one, which is why you need to have a specific plan for each perishable item you buy.

It is gratifying to be able to buy an item in bulk for sometimes 50% less than regular store prices. Additionally, the sheer number of items you acquire through a single purchase will keep your inventory stocked much longer. You will get accustomed to not having to worry about running out of such things as trash bags, paper towels, toilet paper, hand soap, tin foil, and all the rest of the items you need on a regular basis. I repeat, need on a regular basis. For example, I require two AAA batteries approximately once every three months. If I go to a bulk store and buy the smallest package of AAA batteries at the wonderful price that bulk items usually carry, I will have enough batteries to last me many years. In this instance, I have no strong need for AAA batteries and am more likely to find more worth in buying a regular pack of eight with a coupon. Buying in bulk based on frequently needed items will allow you to save money while freeing up valuable storage space for the items you really will use.

The main thing to remember when you are buying in bulk is that you will be tempted to buy everything you lay your eyes on. If you show up with a plan, only buy what you need, follow your personal budget, and listen to that little voice called common sense, you will end up reaping the full benefits of buying in bulk.

5 Ways to Get the Best of a High Pressure Salesman

One day, you will be pressured into paying too much for something you don’t need. This pressure to spend your hard earned money will come from a person who is trained to overcome your every objection; who is taught to use your emotions to control your actions. The result usually ends up with you pressing pen to paper and signing your name onto a sales agreement. How can you protect yourself, and your finances, when you meet this person? You must be prepared. You must acquire knowledge of the counter-tactics that will allow you to hold your ground. And most importantly, you -must- learn how to say, “No.” It doesn’t matter what the product is, whether it is a new roof, windows, gym memberships, cars, newspaper subscriptions, household goods, or electronics. They are all trained to do and say the same things, and following this introduction are a few ways you can get the best of high pressure salesman and free yourself financially at the same time:

1. Make it known from the beginning that you are shopping around. You may not always be able to get the exact price you want, but it will help reduce the cost of the item or service if the high pressure salesman thinks that you have options other than him. For example, if you are looking to get the best possible price on a gym membership, immediately say something like, “I’m looking for a gym membership, and I’m trying to decide between here and Gold’s Gym. I want to get a feel for the different prices, policies, and gym atmospheres available to me.” They will give you much better prices and benefits if they think you have other options. This tip is true even in situations such as negotiating a better job offer.

2. Realize that you don’t have to commit to anything. Often, the high pressure salesman will try to convince you that you should “lock in” the great price he has quoted you by paying for it and signing the contract right at that moment. He will counter all of your objections by telling you that if you decide anytime over the next three days that you want to cancel, you can call him and he will tear up the contract. There will be better deals, and there will be more salesman. If you are not 100% happy with what you are hearing, never sign anything.

3. Do your research on the company and its product or service. Know the negative aspects of what you are about to purchase. Look up reviews online, talk to your friends and ask them what they know, and pay attention to comparisons of other products. You can use this information at an opportune time to catch the salesman off guard with a well placed question. For example, a friend tells you the subscription has a hidden cancellation fee, so when you are being pressured by the salesman, you can ask him, “Are there any hidden cancellation fees?” He will know that you are not someone he can easily take advantage of.

4. Play the game. The goal of the salesman is to make you comfortable with spending your money. Until you show signs of resistance, the salesman will be as pleasant as he can possibly be. The key is to reverse this concept and use it against him. If you know you are going to buy something, respond positively to all of his questions and when talks of price come up, use the advice in Tip #5. Because you were so happy with his explanations and only showed resistance when he brought up price, he will quickly lower the quotes he first gave you. If you are not going to buy anything, don't waste your time and the salesman's time by playing the game. Make it clear that you do not want to discuss his product or service and promptly end the conversation

5. Just say “No.” This is by far the most valuable, tried, and true method to getting the lowest possible price from a high pressure salesman. The one stipulation is that you must be willing to walk away. If all of the other tips fail, or you don’t even want to bother with trying the other tips, put your hope for lower prices in the word “No.” The simple fact of the matter is that the salesman lives up to his name; his goal is to make a sale. If you say no to his price, and you get up and walk away, he makes nothing. Even the smallest commission is better than nothing, and the salesman will do anything he can to keep you at the bargaining table. That means if you say no enough and stick to your guns, you WILL see the lowest possible price. And if you aren’t satisfied with that number, get up and walk away. There will be more salesmen from different companies whenever you need them.

Searching For a Job

Welcome to the excruciating world of the job seeker. In this world, nothing is certain except your need for an income and your desire to meet with success. You must persevere through the companies telling you that you are not qualified. You must have patience when there are extended periods of time with no feedback or communication. And you must have persistence, because as long as you are submitting your resume to new positions there will always be hope, and eventually you will find a job. A few things to think about during the process of securing a new employer:

For the moment, your job IS applying to jobs. That means if you are currently unemployed, you need to be spending eight hours a day applying to jobs. If you have work, sneak in a few job applications when you have free time and your boss isn’t around. When you get home at night, set aside an hour or two to apply to more jobs. On the weekends, devote time to applying to jobs. Notice a theme here? By the time you actually do find a new position, your resume should be the most widely recognized resume within a 50 mile radius of your house.

Do not limit your search to “perfect” job descriptions. When you first begin your efforts of finding a new job, you will be picky. In reality, job descriptions hold no weight. The best job descriptions may end up being the worst jobs, and vice versa. If you are too particular, you could waste valuable time and put yourself in a financially troubling situation by being unemployed for too long. Make sure you apply to every position you can find that even remotely connects to your skill set. The more jobs you apply to, the more your chances of finding a new job will increase. In the end, your extra efforts may lead you to have two or more job offers on the table that will empower you to negotiate a better salary.

If it is not a secret, tell everyone you know. Word of mouth and direct referral will help you land a new job much faster. You will be surprised at how helpful most people can be, especially considering most of them get compensation for referring new recruits. When you are having conversations with people, let them know that you are looking for a job and do not assume that they know what to do to help you. Make sure you say something specific like, “If you or anyone you know has a hiring or referral opportunity for mid-level IT consultants, please give me a call or give them my contact information and tell them to get in touch. I really appreciate your help, thanks so much.” Do not be shy, state your intentions concisely, and tell them how much it would mean to you.

Avoid applying through websites that have mass job listings. When you look for jobs online, go to the massive job listings, but do not apply through those sites. Instead, go directly to the company website and apply. Often, companies will disregard your application immediately if they see it has been submitted through a mass listing website, because they may be required to pay a referrel fee if they hire you. Another idea for finding open positions to apply to is to ask people who have lived in the area for many years about companies they would recommend. Talk to your friends and family. Buy the Sunday newspaper. Make a list of companies to visit and apply to by taking note of those you see near your home while driving around, by looking in the phonebook, or by scouring top company lists online.

Save time by making a single, complete resume and forget the cover letter. Most job seeking advice websites will tell you that you need to tailor your resume and write a cover letter for every position you apply to. Do not, I repeat, do not, follow that advice. If you are sending postal mail or emailing a person directly, you can write a little blurb stating the job you are applying for and that your resume is attached. A paragraph at most. Otherwise, don’t waste your valuable time. Most companies use a methodology that scans your resume for certain qualifications and keywords that are associated with the opening you are applying for. If your resume matches, they will contact you for more information. If your resume doesn’t match, you will either never hear from them again or they will tell you that you don’t qualify. Cover letter explanations of your resume or examples of your skills rarely have an effect on the way you are considered, something that is especially true with larger companies.

Creating A Personal Budget 101

The alluring quest to attain a state of financial freedom begins with the creation of your personal budget. Knowledge of the specific amount of money that is coming into and out of your possession will allow for a replacement of your daily fiscal worries with high financial self-esteem. You will notice this newfound self-esteem affecting a number of other areas that have potential benefits for your life, such as the comfort of discovering that you are better off than you expected, the sudden realization that you need to cut certain spending habits, or the ability to project how long it will take for you to save enough money for certain goals.

Phase 1: Monthly Income – Static Expenses = Available Money
Creating your personal budget sheet, like most accomplishments in life, has a beginning. Know and write down all of your incoming money sources spanning the timeframe of any given month. Then write down all of your static expenses for the month. “Static Expenses” consist of monthly expenses that do not change, including rent/mortgage, minimum car payments, minimum credit card bill payments, cable bills, phone bills, gym membership fees, and any others that may pertain to you. Total the number of your static expenses and deduct that amount from your Monthly Income.

Phase 2: Generous Estimation
The second major step in the personal budget process is what I like to call the Generous Estimation Phase. The key word here is “Generous,” because overestimating is –always- better than the chance that you may be underestimating the money you need or spend. Think about your daily activities. Do you drive your car to and from work? Take a road trip an average of two weekends a month? Calculate the estimated cost of your gas usage. Want to set aside a certain amount each month for entertainment such as movies, eating out, or bars? Write down what you think you would spend on that each month. How much do you eat? Write it down. Here is a list of considerations for your estimates:

- Gas Money
- Entertainment Money (Eating out, bars, movies, etc)
- Haircut Money
- Miscellaneous Spending (Always plan for surprises!)
- Travel Expenses
- Gift Money
- Clothes Shopping

Phase 3: Saving or Investing
After you have subtracted both your static and estimated expenses from your monthly income, you will hopefully have money left over. If you don’t, it may be time to consider a change in spending habits. The most important part of a personal budget is that you are able to see what areas of your life can afford a change in order to increase the amount of your Working Capital. Limit the nights you eat out, cancel memberships you don’t use often, and keep your unnecessary shopping to a minimum so that you can take full advantage of all the money you can to either save or invest. Saving or investing your money is the core principal of being able to free yourself financially.

4 Tips for Buying a High Definition Flat Screen TV

High definition flat screen televisions have become more than just an amazing convenience; they have become a social fad. The moment you step back after you finally finish mounting your new, state of the art, LCD flat screen is the moment that the possibilities of your world become endless. All of your parties, sporting events, weekly shows, nightly news, and television watching habits have just reached a new level. Savor it, because your world has just become high def. A few things to consider as you consider purchasing an entertainment upgrade as potentially expensive as a high-def flat screen:

1. Buy a new one. The low prices of used high definition flat screens on craigslist or eBay are tempting, but you must resist them. The risks are just too great. Once that flat screen comes into your possession, the warranty is no longer valid. That means if there happens to be an overheating problem, pixels stop working, or some other unexpected event occurs, you are out of luck and money. Keep in mind that the prices on these types of electronic equipment are dropping constantly, so you may have the opportunity to buy that same flat screen television brand new at a better price than it was offered to you in used condition.

2. Don’t be fooled by contrast ratios. The contrast ratio is actually extremely important, as it stands for the difference between the lightest and darkest colors on the screen. It has become increasingly popular for manufacturers to brag about 10000:1 contrast ratios or higher, and the price of the television sets with those high numbers are raised accordingly. The main point to consider is that when the high definition picture gets to a certain level of clarity, further increases in contrast ratio are not perceptible to the human eye. To humans, the picture is only going to get so clear and crisp, thus when you start seeing contrast ratios getting above 5000:1, you may want to stop and ask yourself what you are really paying for.

3. The more HDMI connection ports it has, the better. HDMI connections are the little input and output jacks that allow the signal to come to and from the television. This allows for optimal support of blu-ray players, high definition cable service, and all other sorts of devices. If the high def flat screen you are considering is a good price but doesn’t have any HDMI connections, you now know why it is so cheap.

4. There are lower prices online. On average, you have the chance to save at least 25% by buying a television online. You will have to sacrifice a few things though, such as a limited warranty, refurbished units, or a no-return policy. Check out www.bizrate.com for a good price comparison, and read this article for a better understanding.

Coupons: Where and How to Get Them

I know where to get free money. Yes, I said it: free and money in the same sentence. You scoff and ask me, "Where on Earth can I get free money?" Most people automatically associate the word “free” with “nonexistent,” especially when it deals with money. These people don’t realize that even though the mythical money tree might not be real, coupons most certainly are. And coupons are as good as gold.

Subscribe to receive the local Sunday paper. Inside of a Sunday paper you will find a wide variety and number of coupons. You are guaranteed to find a few that align themselves with your needs, and you can always save the ones you don’t have immediate use for. Most papers allow you to sign up for a full year of Sunday papers delivered directly to your door for less than $20. Compared to an average price of $1.50 for buying them at a stand or store, you are saving $58 and priceless time by subscribing to receive a Sunday newspaper. This is a highly recommended method for obtaining coupons.

Go to your grocery store’s website. The larger store chains have great websites that allow you to find coupons in a few different ways. Look for a link to a specific coupon website that will let you print coupons directly to your printer. Also, if you don’t mind signing up on their email lists and getting extra messages in your inbox, plug in your email and press subscribe. You won’t always find the best deals in the emails, but every once in awhile you will get a great coupon offer.

Join a coupon swap. These groups are getting more popular and are quite easy to find online. The concept is simple: Search for someone who has what a coupon you need, and trade that person for a coupon that he or she might need. Websites like www.cafemom.com will help you get started on this type of coupon-gathering endeavor.

Send the company a letter of praise. This method will only work once per company. Find the mailing address on a product or website then draft up a short and concise letter explaining how much you like and appreciate their product. A few weeks later, most companies will send you a small coupon package in appreciation for your feedback and loyalty. They store addresses in a big database so this will only work once per company or until you move to a new address.

When you get into the habit of gathering coupons, you will realize that these suggestions only scratch the surface of ways to get “free money.” Experienced savers develop a schedule of methods that allow for a maximum money-saving vs. time balance so that their efforts don’t outweigh the benefits. Even a cursory glance through the Sunday paper will reap rewards. Just think about coupons like you would money, if someone hands you a dollar, you take it.

5 Easy Ways to Lower Your Water Bill

1. If it’s not dirty, wear it again. Now, I am not suggesting that you walk around wearing wrinkled and odorous clothing. However, this is an area most people overlook when they are on a quest to shave off a few dollars from their water bill. Practice good re-wearing habits by hanging clothes you’ve just removed in areas that have good air circulation before putting them back in drawers or closets. If you re-wear and wait to do laundry until you are able to completely fill up the washing machine, you are looking at the possibility of only a few loads of laundry a month, saving you both time and money.

2. Use a dishwasher. There is a popular myth that dishwashers use more water than cleaning dishes by hand. As with most myths, this one is also completely wrong. What most studies have found is that waiting until your dishwasher is full before running it will save a considerable amount of water versus washing them all in the sink. Make sure you put your dry settings on “No Heat” to save a little money on your electricity bill at the same time.

3. Keep showers short. If you really want to save money on your water bill, this step is critical. It entails strategy. It asks for sacrifice. And it definitely requires willpower. But if you somehow manage to combine those three things into a determination to save money, you will see results. Make sure you do all shaving outside of the shower and don’t waste time: Get in, soap up, rinse off, and get out. The next time you find yourself soaking up the warmth of the water, resist the urge, tear yourself away, and turn that shower off.

4. Keep a jug of drinking water in the refrigerator. This is a small and easy task that will eliminate the need for you to let tap water run for longer than it should. Most will let the tap water get a little cold by running it for a few seconds before filling up their drinking glass. You can save money and time by filling up a large container or jug and putting it in the refrigerator to quickly become and remain cold. Forever after, when you need a crisp, cold drink of water, you will simply have to take the jug out of the refrigerator, fill up your cup, and take a refreshing sip. A general rule of thumb with saving money and water is to purge any and all situations where you might be letting tap water run needlessly.

5. If it’s yellow, let it mellow. As with all of my tips for saving money by saving water, we aren’t talking extremes. If you have to plug your nose and close your eyes every time you lift the toilet lid, you should probably start flushing more often. But the fact remains that most people don’t realize that they can cut their water bill more than 25% by regulating the flow of their toilet water. If it runs for an unnecessarily long time after you flush, fix it. If your toilet is older, or seems to fill up to the top of the bowl after each flush, call your water company to ask for a device that will reduce the amount of water your toilet uses.