J.C. Penney Co. Inc. is slimming down its brick-and-mortar footprint as the department store chain continues its turnaround while navigating a tough climate in which traditional retailers are trying to grow online sales.The Plano, Texas, retailer announced Friday it expects to close 130 to 140 stores and two distribution centers over the next few months. J.C. Penney plans to release a complete list of the planned closures in mid-March, with almost all affected stores slated to close [...]
Source Business - poconorecord.com http://ift.tt/2lE9XVY
الجمعة، 24 فبراير 2017
This Alarming Stat Shows Just How Unprepared Americans are for Retirement
Friends, let’s have a chat about retirement.
I know that saving money is hard.
And saving so that an abstract future version of you can have all the fun you wish you could be having right now? That’s even harder.
While forcing yourself to save for something that’s far from immediately gratifying is difficult, it’s one of the most important moves present-day you can make for future you — unless future you wants to be one of the many Americans working past age 65 because they’re unable to retire.
And it might be a bigger problem than we realize: Bloomberg recently published an analysis of census data that says most Americans aren’t saving enough for retirement. In fact, most people aren’t saving for retirement at all.
Let’s Look at the Damage
Census researchers Michael Gideon and Joshua Mitchell analyzed W-2 tax records from 2012 to discover that a whopping two-thirds of American workers aren’t putting any money into 401(k) plans or similar retirement funds.
Let me say that again: Two-thirds of Americans aren’t saving for retirement. At all.
Gideon and Mitchell found that 79% of Americans have access to employer-sponsored 401(k)-type accounts. However, they also found that just 41% of workers are actually taking advantage of those plans.
Just 32% of American workers are saving for retirement in workplace accounts.
But why? Well, the folks over at Bloomberg propose that it simply boils down to workers being unaware of the options available to them.
Several states have tried to rectify the situation by rolling out programs forcing every eligible worker to sign up for a retirement account, either through the individual companies or through a state-sponsored plan. However, these programs might end before they begin.
What Does This Mean for You?
Well, consider this your friendly reminder to look into your workplace retirement account options.
And encourage your friends, family and co-workers to do the same!
If you don’t have access to a retirement account through your workplace, there are free tools that can help you start one on your own.
If you’re young, don’t fall into the trap of believing that you can always start saving for retirement tomorrow. If you start saving at 21, you would only have to put away about $100 a month to retire comfortably.
Of course, there are other ways to make your retirement account work for you, like using the beauty of compound interest (and some Penny Hoarding techniques!) to retire early — maybe even 20 years early.
Trust me: Future you will thank present-day you.
Your Turn: Do you contribute to a retirement account?
Grace Schweizer is a junior writer at The Penny Hoarder. She’s lucky to work for an incredible company that helps her navigate her financial future with ease.
The post This Alarming Stat Shows Just How Unprepared Americans are for Retirement appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2mgnyUY
27 Job Interview Questions That Will Make You Sweat Just Reading Them
Job interviews make me all sweaty.
I still vividly remember my interview with The Penny Hoarder.
Clad in a dress that somehow hadn’t wrinkled in the back of my car (I was in the middle of moving), I walked up to the front door and rang the doorbell.
“Was I supposed to do that?” I asked myself, suddenly questioning the very routine task.
The hiring manager showed me around the office. She offered me water. I accepted.
“Was I supposed to accept that?” I asked myself, suddenly questioning the kind gesture.
And, although I tried to act cool, I did sweat. (Thank goodness I accepted that cold water.) But luckily, the questions were straightforward and conversational — from what I remember, because I sort of blacked that part out.
I just remember that I didn’t feel alarmed at any point. (Thank you, Lexi.)
But others don’t get so lucky. Glassdoor compiled a list of 27 jobs with tough interview questions, and almost all of them make me wince — and sweat, just a little.
27 Tough Job Interview Questions that Might Make You Sweat
Glassdoor, a large job-hunting and recruiting platform, has a number of interesting features, including its interview section.
Former interviewees can submit questions hiring managers asked them. These are then sorted by job title and company. It’s kind of like cheating on a test, but I think it’s more ethical… right?
Anyways, Glassdoor combed through its database and examined a year’s worth of questions. It compiled 27 zingers.
Use this list as you wish: to have a good laugh, to prepare for your own upcoming job interview or to detox via nervous sweats. Plus, I’m really curious… How would you answer these?
- “How do you explain a vending machine to someone who hasn’t seen or used one before?” — Bloomberg LP, global data analyst.
- “How many fire hydrants are there in Los Angeles County?” — Disney Interactive Studios, software engineer. (OK, I’m going to assume Disney gives you some software to figure that one out… right?)
- “If your current employer had an anniversary party for you, what five words would be written on the cake to describe you?” — Express, district manager.
- “Who in history would you want to go to dinner with and why?” — PSA Airlines, flight attendant.
- “Prove that hoop stress is twice the longitudinal stress in a cylindrical pressure vessel.” — SpaceX, operations engineer.
- “What’s the capital of Canada?” — OpticsPlanet, team leader. (🤔)
- “Name a brand that represents you as a person.” — Twitter, brand strategist.
- “Estimate how many employees in the next building.” — Risk Management Solutions, data scientist.
- “How many happy birthday posts do you think Facebook gets in one day?” — Facebook, sales operations.
- “If you could take anyone on a road trip with you, who would you take and why?” — Lululemon, educator. (Uhm… my boyfriend because I like him?)
- “What is the first thing you’d print with a 3-D printer if you had one?” — Rackspace, Systems Administrator I. (Another 3-D printer so I could print twice the stuff, probably.)
- “If you had to take only one item to a deserted island, what would that be?” — Squarespace, customer service representative.
- “Please describe an instance where you had to make a decision without all of the necessary information.” — Athenahealth, analytics.
- “How do you reverse a text string on the Unix command line?” — Capital One, developer.
- “If you are in a boat with a boulder and you drop that boulder into the lake, how does the water level before and after you drop the boulder in the lake compare?” — Apple, mechanical design engineer.
- “You have been asked to lead a multi-million dollar, multi-year grant that will be supported across several companies and universities. How do you start?” — Ford Motor Co., research scientist.
- “Sell me on one idea, and then sell me on the opposite of that idea.” — Blizzard Entertainment, solarwinds administrator.
- “How would you go about to find the top five Java Developers in a certain area?” — Google, technical recruiter.
- “What is the probability of an integer from 1 to 60,000 not having the digit 6?” — AKUNA Capital, quantitative developer. (How much time do I get to count on my fingers for this one?)
- “If you were a Muppet, which character would you be?” — LifeNet Health, donor family advocate.
- “Give me 48 cents using six coins. Tell me quantity and value of the six coins.” — Wintec, human resource manager. (Wouldn’t the value be 48 cents? Is that a trick question?)
- “Write an equation to optimize the marketing spend between Facebook and Twitter campaigns.” — Uber, analyst (data science).
- “What is the angle at 3:15?” — Fast Enterprises, implementation consultant. (Zero?)
- “What part of the newspaper do you read first? What does this say about you?” — BDO USA, audit.
- “If a coworker had an annoying habit, and it hindered your quality of work, how would you resolve it?” — Procter & Gamble, production technician.
- “Throw your resume aside and tell me what makes you you.” — Zillow, sales executive.
- “How would you find the square root of 1.2?” — Jump Trading, hardware engineer.
Holy cow.
If You’re Panicked, Here’s How to Prepare for Your Next Job Interview
First, keep in mind that Glassdoor intentionally put together the toughest questions it could find.
Second, there really aren’t any right answers to most of these questions (though there’s only one capital of Canada). Rather, the goal of the employers is to see how you think and solve problems.
Third, just be sure to prepare for your dream job interview.
You’ll want to research the company. Get to know it, as well as the role you might take on. To be honest, you can never research too much.
Also, practice, practice, practice! Here are 20 common interview questions. Have your friend, spouse or mom play hiring manager. While you answer the questions, take notes of the ones that stump you. And be sure to be aware of your body language.
Oh, and if you need a good belly laugh thrown into the mix, read these horror stories.
Good luck, my friend!
Your Turn: What’s the toughest question you were ever asked in a job interview?
Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. To be honest, she remembers walking into her job interview but kind of blacked out the questions she was asked. Oops.
The post 27 Job Interview Questions That Will Make You Sweat Just Reading Them appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2liUDeF
Your Fingers Will Thank You for Checking Out This Calphalon Knife Recall
I know you like to Bobby Flay it up in the kitchen. I can picture you slicing and dicing like the master chef that you are. You’ve got the batonnet, the julienne and the chiffonade down. Onions? Carrots? They don’t stand a chance between you and your knives.
Before you make dinner tonight, though, you might want to check your cutlery — especially if it’s Calphalon.
On Feb. 22, the kitchen supply company recalled about 2 million knives due to reports of blades breaking during use, putting users at risk of injury.
Yikes.
If you have select models of these recalled knives, you could get them replaced for free. Keep reading for details.
How to Get Your Calphalon Knives Replaced for Free
According to the U.S. Consumer Product Safety Commission, certain Calphalon Contemporary Cutlery products made between August 2008 and March 2016 are experiencing this safety hazard. Thirteen products are included in this recall.
Recalled items range from complete 21-piece sets to individual knives, totaling around 2 million pieces. To see a full list of product names and item numbers included in the recall, click here.
So far, Calphalon has received about 3,150 reports of broken knives.
Unfortunately, the company has also received 27 reports of finger and/or hand lacerations — four of which required stitches. Ouch.
To avoid cramping your kitchen style, Calphalon is willing to replace your recalled products for free. Thank goodness, because I’m sure the last thing you want is for a blade to go flying across the kitchen while you’re cooking. *sweats profusely*
To return items, head to Calphalon’s recall website to order a return kit. After you return the items in the packaging provided, Calphalon will replace your knives in four to six weeks at no cost to you.
Until then, ease up on the kitchen entertainment. You know you can’t beat those kids on “MasterChef Junior” anyway — keep dreaming!
Your Turn: Do you have any of these recalled products?
Kelly Smith is a junior writer and engagement specialist at The Penny Hoarder. She can’t cook, so she doesn’t have any of these knives.
The post Your Fingers Will Thank You for Checking Out This Calphalon Knife Recall appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2lEwJey
Sex in the City: This Swedish Town May Pay its Workers for Sex on the Clock
I thought I’d heard every idea on the planet about how to boost work-life balance, but a new proposal up for debate in a Swedish town has topped them all.
Councilman Per-Erik Muskos, a councilman in Overtornea, Sweden, wants to give all municipal employees an hour of paid time off each week to have sex.
Apparently, the local birth rate is down, and so is employee morale. Muskos believes his idea is the solution to both.
Sounds legit to me.
Muskos says the the positive benefits of sex are well documented, and it’s also an excellent form of exercise. (The original Swedish report is available here.)
Look, the man clearly knows what he’s talking about. This motion should get passed immediately.
Won’t someone please think of the employees?
Muskos says he expects the motion to pass, but some members of the council are skeptical about its practicality.
Can you imagine how hard it would be to enforce a rule like this?
The paperwork would be a nightmare. How would you even document it?
Wait, don’t answer that.
U.S. Companies Have Good Benefits Too, You Know
I’d bet cash money most of you reading this briefly considered moving to Sweden just now. (It’s OK, so did I.)
Face it, that’s not very practical. Fortunately, I bring you good cheer.
Sex on the clock may not be a common workplace benefit here in the U.S., but that doesn’t mean there aren’t some other really cool perks companies in the U.S. offer.
- Mega-grocery store chain Kroger gives workers free fitness tracking devices.
- Prudential Financial pairs employees with a life coach.
- The Nielsen Company gives out company cars.
- BrewDog offers paid time off to employees with new dogs.
- Workman Publishing pays workers to sleep on the job.
So you see? You may not be able to move to Overtornea, but there are some pretty awesome jobs in the U.S. that give you a good bang for your buck.
Your Turn: What’s the best company benefit you’ve ever heard of?
Lisa McGreevy is a staff writer at The Penny Hoarder. She hopes human resources remembers she wrote this post if it happens to notice the browser history on her work laptop.
The post Sex in the City: This Swedish Town May Pay its Workers for Sex on the Clock appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2lD5Lph
Big Banks Made $6.4B Off These Easy-to-Avoid Fees — Here’s How to End it
Everyone’s checked their bank account at least once to gape in wonder, “What the heck is THAT fee?”
But no, really, it’s everyone. The big banks are collecting so much from our overdraft and ATM fees that it equates to at least $25 collected from every adult American, according to an analysis by CNNMoney.
In fact, the three big banks — JPMorgan Chase & Co., Bank of America and Wells Fargo — bogarted $300 million more in these fees last year than they did in 2015. The total? $6.4 billion.
Tired of giving the big banks any more of your hard-earned dollars? Stick with us for some tough-love tips.
Yes, You Are a Victim. We All Are.
Not sure if these fees affect you? Check your bank’s fee for tapping another bank’s ATM. Between your bank and the ATM’s “non-customer withdrawal fee,” we’re all paying about $4.50 for the privilege of grabbing cash on the way to dinner with friends who like to split the bill down to the dime.
What about overdraft fees? Last year, JPMorgan made almost $2 billion (billion!) from overdraft fees alone, with Bank of America and Wells Fargo close on its heels.
Banks have only been required to spell out their overdraft fee revenue since 2015.
Millennials, Get it Together (I Say This With Love)
A typical bank overdraft fee to cover insufficient funds is about $35, which can multiply each day the checking account stays below zero.
Younger people — perhaps because we expect up-to-the-minute bank balance information that’s not always available — are 133% more likely to pay an overdraft fee than a 65-year-old, according to Lisa Servon’s book The Unbanking of America.
Servon also notes that about 11% of consumers ages 18 to 25 incur more than 10 overdraft fees per year.
This isn’t a few dollars here and there we’re concerned about. It easily adds up to hundreds.
How to Stop the Fee Flood
Tired of ATM fees creeping on you? A couple steps you can take:
- Start planning regular trips to an in-network ATM or branch. If you have a little bit of cash all the time, you can probably avoid most of your “oh, crap” ATM runs.
- Verify your bank’s fee for cheating on it with other ATMs. When you visit the ATM of a bank you don’t have an account with, the ATM will typically tell you that your transaction will incur a fee of however many dollars. But that doesn’t count any additional fee your own bank may charge you for the convenience.
- Don’t like your bank’s ATM fees? Investigate alternative banking options to help avoid ATM fees (we have a few right here).
What about your overdraft fees?
You may not realize it, but overdraft protection is supposed to be an opt-in feature. Don’t remember ever signing up for this “benefit”? Visit your bank or log in online to opt out of overdraft protection. Opting out means your card will simply be declined when your account has insufficient funds.
Then, get hypervigilant about your checking balance. Download your bank’s smartphone app, or make logging in every day a regular habit.
Realize that incoming deposits may take a day or two to hit your account — yes, even direct deposits you expect on a regular basis — and that debit transactions will vanish from your balance almost immediately.
You’ve heard the phrase “protect your heart”? Start protecting your cash.
Your Turn: Have you gotten dinged with outrageous overdraft or ATM fees? How did you stop the cash bleed?
Lisa Rowan is a writer and producer at The Penny Hoarder who suffered more overdraft fees in her early 20s than she would like to admit.
The post Big Banks Made $6.4B Off These Easy-to-Avoid Fees — Here’s How to End it appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2mtMMLI
Mt. Effort Plaza takes another step forward
The Chestnuthill Township Board of Supervisors granted an amended conditional use application to the owners of the Mount Effort Shopping Plaza on Route 115.Operating under the name Mount Effort Development Company, LLC, of New Jersey, it marks another step in its three and a half year labors to get the large-scale retail/commercial development off the ground.The company plans to build the 15-acre, 110,000 square foot collection of stores, offices and a transportation hub at the [...]
Source Business - poconorecord.com http://ift.tt/2lSd51c
Source Business - poconorecord.com http://ift.tt/2lSd51c
This Survey Says More People are Putting Careers Before Other Life Goals
Would you put off an expensive, long-term life goal so you can earn and save enough money to support it?
Or would you pursue it as soon as possible, then hope you earn enough to support it along the way?
That’s the choice faced by 83% of women and 79% of men over the age of 25 who plan to have children, according to a new CareerBuilder survey.
Respondents say they’re waiting to start a family until they can afford it.
- 15% of women say they’re holding off until they’re at least 35, and 63% are waiting until they’re at least 30.
- 30% of men are waiting until they’re at least 35, and 64% are holding off until they’re at least 30.
That’s a long time to wait before pursuing a life goal.
But many people don’t have much of a choice because kids are expensive.
Perception of Pay Inequality is a Big Reason For Postponing Goals
“Despite similar reasons for postponing family plans, men and women differ widely on how much they expect to earn and at what level of position over their careers,” explains CareerBuilder’s chief human resources officer Rosemary Haefner.
The survey found men are more likely to expect to earn mid six-figure salaries during their careers.
Most women, on the other hand, expect they’ll cap out at about $79,000 during their own careers.
“Today a third of women (34%) do not think they earn the same pay as the opposite sex in their organization who have similar experience and qualifications,” say CareerBuilder researchers.
“Men are not as convinced about the wage gap; 82% say they earn the same pay.”
Empower Yourself to Reach Your Long-Term Goals
While the gender wage gap is closing, there’s still a ways to go.
In the meantime, we don’t usually have a lot of control over the amount of money our jobs pay or whether we’re paid equal to our colleagues.
Whether you want to start a family, buy a house or assemble a team of winning sled dogs, look for ways to empower yourself to reach your goals.
- If you’ve been postponing starting a family because of your finances, think about working for a company that helps you pay childcare expenses.
- Buying a home might not be out of reach if you’re open to thinking outside the box.
- Have wanderlust in your heart but can’t afford to travel? Take a job as a travel writer.
- Negotiate for a better salary. It never hurts to ask.
- Further your career or find a new one by earning a college degree on someone else’s dime.
- Start your own company and take charge of your destiny.
Your turn: How are your empowering yourself to reach your long-term goals?
Lisa McGreevy is a staff writer at The Penny Hoarder. She’s fresh out of tips on how to assemble a team of winning sled dogs. If you’ve done it, please tweet her some pictures @lisah.
The post This Survey Says More People are Putting Careers Before Other Life Goals appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2lE0dcK
GFC 085: 7 Student Loan Dangers to Watch Out For
Americans owed astronomical sums on their student loans as of early 2017 – a little over $37,000 per average borrower and $1.3 trillion cumulatively.
The rising costs of college coupled with decreasing student aid have created the perfect storm for wholesale indebtedness, leaving millions of graduates wondering how they’ll cope.
As if the burden of debt wasn’t enough, there are pitfalls and student loan scams to avoid as you pay down your student loans as well. Sometimes it’s a matter of predatory student loan companies bungling your repayment efforts.
Other times, borrowers just fail to read the fine print. Either way, it's smart to educate yourself on common loan repayment issues so you make informed decisions on how to get out of debt.
7 Dangers You Face When Repaying Student Loans
To learn about the dangers of student loans, I interviewed Jereme Albin of Credible.com – a company that offers risk-free student loan refinancing opportunities for indebted student borrowers.
According to Albin, it's possible to pay your student loans off faster – and save money – if you know which student loan scams and issues to steer clear of. Here are the biggest ones:
Danger #1: Misallocated Extra Payments
One way for indebted borrowers to pay off their student loans sooner is to try to pay more than their minimum monthly payment. Unfortunately, the way student loans are set up can make prepaying harder than it needs to be.
As Albin pointed out, you can absolutely make prepayments and payment overages on your student loans. The one pitfall to be aware of, however, is that you must let your student loan company know you want to extra funds applied to the principal of your loan balance.
If you don’t, you may be left in a position where the loan company does not apply your extra funds towards principal, and applies them toward future monthly payments instead.
So, what exactly should graduates do in this case? According to Albin, the Consumer Financial Protection Bureau (CFPB) recommends you put a note in with your loan payment stating you want the extra funds applied to your loan’s balance. That way, your loan company cannot plead ignorance and apply the funds elsewhere.
Danger #2: Student Loan Forgiveness Scams
The fact that so many people struggle with student loan debt has led to an array of scams targeting indebted borrowers. According to Albin and Credible.com, students need to be careful when they are approached about refinancing or consolidating their student loans because not every company that promises these services is, dare I say, “credible” or even honest.
The hallmark of a student loan forgiveness scam is when they say you can pay a small amount of money upfront and have your total loan balance lowered dramatically later. Or, they’ll charge a fee for erasing your student loan balance, but ultimately take your money and run.
When it comes to student loan refinancing, always remember this golden rule: If it sounds too good to be true, it probably is.
If you’re thinking about refinancing or consolidating your loans, you should check out any company you plan to work with thoroughly before moving forward. If their promises don't make sense or they have awful reviews online, it's probably a scam.
Danger #3: Dishonesty About Student Loan Prepayment
Thanks to the Higher Education Opportunity Act of 2008, student loan borrowers can prepay their student loans at any time without penalty. Unfortunately, not all loan companies want their clients to know this.
Many times, student loan companies are downright dishonest about the fact that anyone can prepay their loans at any time. Albin says he talks to borrowers like this all the time at Credible. They truly want to prepay their loans, but they’ve been led to believe they cannot.
Since Credible’s main goal is helping people navigate all of their student loan issues, it's their mission to help consumers understand that they can prepay their loans no matter what their loan company says. Not only is it fair to allow prepayment without penalty, but it’s also the law.
Danger #4: Mismanagement of Partial Payments
While many people graduate college and land a job that makes it easy to repay their student loans, that’s not always the case. Sometimes, graduates struggle to get their lives going at first and can’t quite make all their loan payments on time.
This is another situation where the way student loans are set up can make things trickier. Let’s say a graduate has 5 or 6 loans with the same servicer, a situation that’s common. If they owe $400 per month across those loans, they might make one monthly payment that covers them all.
Now, let’s say they are short on funds and can only pay $200. In that case, it’s possible where the student loan servicer would break up their payment across each loan – making each individual loan delinquent since the entire payment wasn’t made.
This is why you want to be careful with partial payments, says Albin. In most cases, you’d be a lot better off covering the whole payment on some of your loans and keeping those current.
The bottom line: When you’re short on funds and can’t make your entire student loan payment, you should make sure the payment you do make is allocated in the best way possible. It also helps to call your student loan company before you start making partial payments. If you're honest about your situation, they may be willing to work with you.
Danger #5: Issues with Automatic Payments
In the world of personal finance, automating is almost always a good thing. Setting bills up on auto-pay ensures they’re paid if you forget, and automating your investments can help you stay on track.
But when it comes to student loans, auto-pay comes with benefits and problems. According to Albin and Credible, you may be able to score a discount by setting your student loan payments up so they’re paid automatically. Unfortunately, you’ll need to give them access to your bank account and allow them to withdraw money.
If you’re short on funds on the date of their debit for any reason, you can encounter late fees on your loans and overdraft fees from your bank.
Another thing to be aware of with auto-pay is that it doesn’t always work in your favor when it comes to interest payments. As Albin noted, most lenders debit your payment on the same day each month. But if the bank is closed, they may wait a day or two. In that case, some loan companies will go ahead and charge interest on your payment funds for those additional days.
Danger #6: Misrepresentation of Late Fees
We all know that making a late payment on any loan will bring on some sort of late fee. Unfortunately, not all loan companies are honest about how these fees are charged.
At Credible, Albin encounters lots of confusion on how late fees are charged and which loans currently charge them. If you’re unsure how much late fees cost or when they will be charged, make sure to ask your loan issuer to lay out how your late fees might work. You can also read through your loan document thoroughly to find the exact details.
Ideally, you should make sure you understand your loans’ terms, conditions, and due dates so you can avoid late payments and their associated fees altogether.
Danger #7: Overpaying Your Loans
This last danger is one that arises when you fail to take action. If you don’t look into your options, you could wind up paying a lot more interest on your student loans than you should.
Student loan refinancing isn’t for everyone, says Albin, but it can be life-changing for the right type of borrower. By refinancing your student loans to a new loan product with a lower interest rate, you can save money on interest and potentially pay off your loans faster.
The best part about refinancing is that there is no cost or obligation to see if you qualify. With Credible, you can shop around for a new loan without having your credit impacted by the pre-qualification process. If you like what you see and believe you’ll save money, you can apply for student loan refinancing. If not, you can keep the loans you have.
These days, it’s smart for all borrowers to make sure they have the best student loan deal possible and to make sure they avoid student loan scams With thousands of dollars in loans and interest payments on the table, most people can’t afford not to.
Do you have student loans and want to see if you can refinance for a much lower rate? Check out Credible.com for a free estimate. The best part is that's super easy!
The post GFC 085: 7 Student Loan Dangers to Watch Out For appeared first on Good Financial Cents.
Source Good Financial Cents http://ift.tt/2l7Xoi1
Status Symbols and Spending Less
I had a wonderful Facebook message exchange with a reader named Pete, who gave me permission to summarize our conversation but not to quote it.
Pete comes from a family where clothing is a huge status symbol. To dress in a nice suit at family events or in the community that he grew up in is a visual sign that you are an adult, that you’ve made it, and that you’ve achieved things that deserve respect. A cheap suit doesn’t convey those messages of status, nor do more casual clothing options.
In short, for Pete, the clothes themselves convey status and value that goes beyond the mere quality of the clothing.
Pete makes a good point, and it’s not just a truism for families, either. There are many career paths and community situations where the way a person chooses to dress conveys a certain status and can open you up to building certain relationships that would be otherwise closed to you if you show up in a rumpled sweatshirt.
Of course, there are some problems with that equation. For starters, it’s expensive. A nice suit can run into the four figures without breaking a sweat. That can seriously hamper the finances of someone starting out.
Another problem is that, even with a nice suit, there’s no guarantee of the status you want or the relationships you hope to build. You might have a great suit, but that won’t make a reputation you’ve already damaged and it won’t guarantee respect if you’re prone to sticking your foot in your mouth, for example.
None of those caveats change the fact that there are some benefits to investing money in certain status symbols. There’s no denying that. The question I’m much more interested in is how a person can get the maximum “bang for the buck” out of these kinds of status symbols.
In other words, how can our friend Pete get the maximum value for his dollar out of owning a “status” suit or two?
Here are some strategies I’d use.
Before you do anything else, decide whether a “status symbol” will really return meaningful value to you. Is a nice suit or a nice watch or a nice dress or a nice car going to open up enough community or professional relationships to really be worthwhile for you?
A person with a local business that thrives on community involvement and needs to cultivate a strong local reputation might find a great deal of personal value in appearing to have status in the community. On the other hand, someone who is self-employed or works in a research environment might find that status within their field comes from other sources and won’t get much value from a physical status symbol.
This is much more of an introspective thing. However, I will say that in my experience, status usually comes from reputation, and reputation usually comes from character. When I think of people I really respect in my local community, some of them do dress nicely and some of them do have status symbols, but many of them do not. The one person I immediately think of is usually found wearing a worn hat from the college he attended paired with a sweatshirt. His status is supported by a mix of friendliness and personal reputation, not by his clothing.
A status symbol isn’t “reputation in a box.” It’s a foot in the door, perhaps, but it’s up to you to build a reputation and it’s up to you to show character.
If you decide that a status symbol is right for you, first talk to a respected mentor with experience in this area. Find an older relative that you trust, or an older person in your workplace, and explain your situation. You’d like to buy a nice suit but you’re just starting out and you don’t have a ton of cash for it yet. Obviously, substitute whatever status symbol is necessary here.
What you’ll often find is that a good, trusted mentor will be able to find you that item you’re looking for at a surprisingly good price. They might even be able to give you one.
Early on in my career, one of my mentors helped me to find an amazing suit at a really great price, and another mentor simply gave me an amazing watch from his personal collection.
Why did they do that? Perhaps they saw some kind of potential in me. Perhaps they wanted to cultivate that relationship with me. It might have been simply a desire to pay things forward, or perhaps to give to me something they wish had been given to them early in their life.
Whatever the reason, mentors are often extremely helpful in situations like this. Don’t be afraid to talk to a trusted older relative or other mentor when you’re trying to “dress the part” or establish status in some other way.
Second, be patient and shop slowly. Don’t just run to the store immediately and throw cash at a problem like this. Remember, you don’t need that status symbol. Far from it. It’s something that will perhaps be useful, but it’s not something that you need to run out and pay full price for.
Instead, spend your time doing research and figuring out exactly what you want or need. Give yourself a variety of options. Then, start bargain hunting those options. You can sometimes find incredible discounts on things like fine clothing if you give it time and patience.
Don’t be afraid to utilize your mentors a bit here, either. Just let them know that you’re looking for a nice suit and ask them to keep their eyes open for any sales. Even if your mentor can’t hook you up with a personalized discount, they might be able to find you a really good sale.
Once you do decide to invest in a status symbol like this, use accessories to multiply the value at an extremely low cost. The example that I love to use here is using ties and shirts to add a great deal of variety to suits. Wearing a variety of tie patterns and shirts will make it appear as though there’s a great deal of variety in your wardrobe, when the truth is that you mostly just rely on one nice suit.
This is a huge money saver. It means that you don’t need to have a lot of expensive suits, just one or two. You just surround those two suits with a variety of different accessories – a variety of ties, shirts, watches, and so on – and you’ll pass off that single suit as being part of a widely varied wardrobe.
Also, take immaculate care of that status symbol so that you maximize the length of its life. If you’re actually investing a lot of money into something that’s largely for appearance and status, take care of that item. Maintain it properly. Clean it properly. Follow the instructions to the letter.
The reason is that you’re going to judge the value of an item like this by the number of times you use it. If you invest, say, $1,000 in a suit, if you wear it 10 times, it’s costing you $100 per wear. If you can wear it 100 times, it’s down to $10 per wear. Get it up to 250 and it’s down to $4 per wear.
Proper care and maintenance is going to extend the life of that status symbol. It’s going to enable you to get more uses out of that item before it begins to break down, look worn, or even potentially fail. The more uses you get out of that item, the better the value is going to be.
Think of it this way. Imagine your status symbol opens the door to one new connection each time you use it. That connection has value, right? The more uses you get out of that status symbol, then, the less expensive each connection becomes.
I want to conclude this article by clearly stating that I don’t think that status symbols actually build the kind of relationships that have value. They can help you get your foot in the door and can help boost your charisma, but they’re not required, and to actually build that relationship, you need to be bringing positive personal characteristics to the table, and no status symbol in the world can help you with that.
If you do decide that a particular status item is warranted in your personal and professional situation, be smart with that purchase. Seek help from a mentor. Shop around. Accessorize it rather than buying duplicates. Take care of the item. If you follow those strategies, you’ll maximize the value you get from that purchase.
Good luck!
Related Articles:
- Some Thoughts on Conspicuous Consumption, and Less Expensive Ways to Show Status
- The Deceptively Tiny Wardrobe
- Money and Social Acceptance
The post Status Symbols and Spending Less appeared first on The Simple Dollar.
Source The Simple Dollar http://ift.tt/2lDg8Il
Deal of the week: 2% interest on Isa balances until 31 May
Earn 2% interest on cash balances between now and the end of May by opening an innovative finance individual savings account (Isa) with Abundance.
Source Moneywise http://ift.tt/2kUpzWu
IRA Choices: Roth vs. Traditional
It's never too late or too early to think about your retirement. Discover the differences between a traditional IRA and a Roth IRA in this article.
Source CBNNews.com http://ift.tt/2lh2Ikl
Source CBNNews.com http://ift.tt/2lh2Ikl
Taxes Are Confusing. What Does Head of Household Mean?
Being an adult is great. You get to be king or queen of your own castle — or head of the household, if you will.
It’s all fun and games until tax time rolls around, and then “head of the household” takes on an entirely different meaning. Shudder.
Filing your taxes as head of household can seem vaguely intimidating, but it’s really nothing more than a designation by the IRS that may lower your tax bill and put more money in your pocket.
See? It’s not so scary after all.
What the Heck is Head of Household?
Head of household is a filing status the IRS uses to determine what tax bracket, credits and responsibilities apply to you during the course of a tax year.
To qualify as head of household, you’ll need to meet certain criteria.
1. You’re not married on the last day of the year. Interestingly, you can be married the first 364 days of the year, but if you’re not legally married on Dec. 31, the IRS considers you unmarried for the entire year.
Don’t get any ideas about divorcing your spouse for a few days around the end of December just to file as head of household. If you turn around and get remarried any time during the following year, you’ll face tax consequences from the IRS.
The IRS also considers you unmarried for tax purposes if your home state has declared you legally separated from your spouse. Simply moving out of your shared home isn’t enough; you need to get in front of a judge to be granted a legal separation.
A court-decreed annulment also qualifies you as unmarried for tax purposes. You’ll need to fill out some extra paperwork, though, so be sure to check with the IRS or a professional tax preparer to find out exactly what you need to do.
2. You paid more than half the expenses for keeping up the home during the year. That means you must have paid more than half of all household bills, including rent or mortgage, groceries, utilities and insurance.
It’s OK if someone gave you money during the year to help you cover the bills as long as you paid more than 50% of them with your own savings or money you earned.
3. You must have a dependent living in the home with you for at least half the year. Qualifying dependents include biological, step-, foster and adopted children, and your siblings. They must be under 19 if they are not a student, or under 24 if they are a full-time student. There is no age cap if the dependent child is permanently and totally disabled.
You can also claim parents, stepparents, grandparents and certain individuals who are related to you by marriage as dependents. The key is they must have lived with you for at least half the year, and you must have paid more than half of their financial support.
Check the IRS website for a full list of qualifying dependants.
Should I File My Taxes as Head of Household?
Most tax professionals advise taxpayers to file as head of household whenever possible to take advantage of available tax breaks that include:
- Larger standard deductions. People filing under a single or married filing separately status are entitled to a $6,300 deduction for the 2016 tax year. That figure jumps to $9,300 if you file as head of household.
- Lower tax rate. Filing as head of household puts you in a different tax bracket than other filing statuses. That could mean you have less taxable income and lead to a lower tax bill or a larger tax refund.
If you need help figuring out whether you qualify to file as head of household, try this interactive quiz on the IRS website to find out.
Your Turn: Did you get a bigger refund or better tax breaks by filing head of household?
Lisa McGreevy is a staff writer at The Penny Hoarder. She likes bringing you this information, but she is not a tax preparer, and this is not legal tax advice.
The post Taxes Are Confusing. What Does Head of Household Mean? appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2lztVBk
£601m PPI provisions put aside by RBS
The RBS Group, which includes RBS and NatWest, put aside £601 million in 2016 to cover mis-sold payment protection insurance (PPI), according to the banks’ financial results published today.
This is an increase on the £600 million put aside in 2015, although less than the £650 million provision for 2014.
Source Moneywise http://ift.tt/2l7hLfh
Nearly two-thirds of pension pots fully cashed in
Two years on from the launch of the pension freedoms, a new report by the Financial Conduct Authority shows what the changing retirement income market looked like in the third quarter of 2016.
Source Moneywise http://ift.tt/2lCMcf8
Atom Bank launches market-leading savings rates, is it time to switch?
Atom Bank has increased interest rates for new customers across its range of savings products, although you need to have a smartphone in order to access its deals.
From today (Friday 24 February 2017), the rates on its fixed savings accounts are changing as follows:
Source Moneywise http://ift.tt/2kTQkKQ
Neil Woodford to launch new high income fund on 20 March: details revealed
Star fund manager Neil Woodford has confirmed the details for his new CF Woodford Income Focus fund, which aims to deliver high income to investors.
The fund will launch on 20 March 2017, in time for investors to use it for their 2016/17 individual savings account (Isa) allowances.
Source Moneywise http://ift.tt/2l6RrCd
الاشتراك في:
الرسائل (Atom)