What percentage of your income do you save? It should at least be 10% and increase as we age. If you are not there yet, it’s something to be working towards.
What percentage of your income do you save? It should at least be 10% and increase as we age. If you are not there yet, it’s something to be working towards.
Helps Marketers Match Brands with Audiences
According to psychographic ad targeter Mindset Media, the TV shows you watch can offer marketers key insights into your personality. For instance, very modest people are more likely to watch the blue-collar hero show “Deadliest Catch” while altruistic people tend to prefer cooking shows like “Rachael Ray” and reality shows with happy endings like “The Bachelor.”
Appealing to Your Emotions: by Ali Hale
All forms of persuasive writing use this technique but internet marketers are especially good at it. They know that sales aren’t really based on customers rationally weighing up the pros and cons of a product – we tend to buy based on an emotional reaction.
Beat the Marketers: Ever heard that you shouldn’t grocery shop on an empty stomach? It’s a good idea not to shop online when you’re feeling emotional. Whether you’re insanely excited about the new business idea you had in the bar, or in despair over the state of your finances, you’re likely to fork out a fortune for unnecessary information products.
Keep a cool head, and promise yourself that you’ll sleep on it before making any decisions. Your mood will have changed in the morning – and if you still want the product, you’ll know it wasn’t just an emotional reaction.
Overdraft fees. Sign up for low-balance alerts via e-mail, and link your checking account to your savings account to move money as necessary to avoid $35 fees for insufficient funds.
PSY Research
The competition is on. Everyone is looking for the smallest phone, the cable provider with the most channels and the television with the biggest screen. Add in desktop computers and high-speed internet access and you’ve created a list of America’s growing “necessities”. According to a 2006 survey entitled “Necessity or Luxury” by the Pew Research Center, 33% of Americans now view cable or satellite TV as a necessity. In 1996 that number was 17%. Also, 51% now can’t live without a home computer, up from 26% in ’96.
Some items that were seen as fads or didn’t exist in 1996 have also jumped onto the necessity list:
• Cell Phone: 49%
• High-speed internet: 29%
• Flat-screen TV: 5%
• iPod: 3%
Gym Fees
The sales pitch is compelling and the promise of better health is hard to deny. But a legal obligation to pay a big monthly fee for the next two or three years—whether you use the gym or not—makes no sense.
Here are 4 credit cards that industry experts told CNNMoney are among the worst in America for their sky-high interest rates and ridiculous fees.
1. Applied Bank Unsecured Visa Gold Card
The Applied Bank Unsecured Visa Gold Card advertises a $500 line of credit and charges you an annual fee of $125 for the privilege. After the first year, that fee jumps to $180. Plus, the interest rate on the card is a high 29.99%.
2. First Premier Bank MasterCard
It doesn’t get much more expensive than First Premier’s card, which has an APR of 59.99% and fees of more than $120 a year.
“You have to be awfully desperate to have that card and pay that kind of APR,” said Curtis Arnold, founder of CardRatings.com. “But I don’t know why you would do that when there are so many other options even if your credit is bad — even a secured card with all its fees would be a better alternative.”
The company, however, stands by its claim that it serves the needs of a growing number of consumers with less than perfect credit. And, in fact, it has nearly 300,000 customers for this card, most of whom carry a balance.
3. Baby Phat Prepaid Visa RushCard
Many prepaid debit cards are loaded with fees. And the BabyPhat Rush Card is the worst out of a bad lot.
It’s even more expensive than all of the RushCards, costing $14.95 just to own, while the three other Rush cards top out at $9.95
“The BabyPhat card allows its holder to make a statement,” said a RushCard spokesman. “Its distinctive pink facade is adored by those who want panache with their purchasing power.”
That panache costs: If you choose a monthly plan, you’re going to pay $9.95 per month plus a $1 per transaction if you use the card as debit instead of credit. Plus, there are hefty ATM fees and other charges.
If you instead choose the “pay as you go” plan, you avoid the monthly fee and instead pay $1 every time you swipe your card — up to $10 per month. If you don’t use your card for 90 consecutive days, you get hit with $1.95 fee. And the ATM fees are even worse.
“This is what I call the “plastic tax” because you’re so desperate to use plastic you’ll accept almost any terms,” said John Ulzheimer, personal finance expert at SmartCredit.com.
4. Hooters MasterCard
If you’re a regular Hooters customer, this card gives you five points for every dollar you spend at the restaurant. But that doesn’t make up for the fact that the APR on the card can hit 25.45%.
The card, issued by Merrick Bank, also comes with an annual fee of up to $48 for the first year, plus $4 per month after that. Late payment fees, returned payment fees and over-the-limit fees go up to $35.
That makes this card among the worst in terms of restaurant-branded credit cards, according to John Ulzheimer, personal finance expert at SmartCredit.com.
“Even if you have excellent credit, it looks like you’ll get a rate of more than 16%,” he said. “You can definitely find a better card than that with excellent credit — and if you’re credit isn’t so good, you’re certainly going to get hit with that 25.4%.”
Claudia Buck: sacbee.com
Valentine’s Day: That heartfelt time of rings, romancing and oh-so-many wedding proposals. And a day when three little words just might be whispered in your ear.
No, not those three little words. The I-love-yous aside, we’re talking these: a prenuptial agreement. As the busy summer wedding season approaches, it’s a good time to consider a document with a decidedly ominous reputation. To read the complete article, please click here
By RAMIT SETHI NYT
November 30, 2010, 12:03 pm
Ramit Sethi runs the Web site I Will Teach You to Be Rich.
One of my friends has been meaning to fax his health insurance company to stop an overcharge worth hundreds of dollars each month. When I asked him why it’s taking so long to fix it, he gave me an astonishing reason: He said he didn’t have a fax machine.
It’d be easy to point and laugh at him for being lazy. But he’s a successful entrepreneur. So why does he find it so hard to motivate himself?
Many of us think we make rational financial decisions. We believe we’re in control. “If I just try harder,” we say, “I could save $100 more each month.”
Yet time and time again, our willpower fails us, and we yo-yo back to our same spending patterns.
So here’s how to turn a few powerful psychological principles in your favor and save more, pay off debt and live a richer life. To read the complete article, please click here.
ATM fees. Know where your own bank’s ATMs are located, even in other states, so you can save $2 or $3 every time you get cash out of the wall. Or consider switching to a bank that offers free ATM usage regardless of which bank’s ATM you tap.
People who “shop ’till they drop” and run their credit cards up to the limit often have a shopping addiction. They believe that if they shop they will feel better. Compulsive shopping and spending generally makes a person feel worse. It is similar to other addictive behaviors and has some of the same characteristics as problem drinking (alcoholism), gambling and overeating addictions.
There may be more than 10 million people in the United States psychologists classify as “shopaholics,” according to The American Journal of Psychiatry. These people shop compulsively, buy things they do not need and often cannot afford; the unnecessary purchases can result in the jeopardizing of their jobs, finances, families and mental health.
Keeping up with the Jones’ – Psychology plays a big role in our spending habits. Sometime we want to feel as successful or more successful than those around us. We can spend a lot of money to keep up that image. The reality is, the neighbors probably can’t afford that new car either.
Secret Agents
Marketers are using special “buzz” agents to promote products. These agents often use family and friends to spread the word about new products. The “buzz” agent will talk about new music, books, entertainment or fashions in an effort to get the younger generation excited about certain new products. Some agencies recruit agents in every major city. This method works very well because many teens want to have the latest things and not be left out of the loop.
Use the internet to comparison shop. There is no reason to spend lots of money and time driving from one store to the next looking for the lowest price. You may end up having to drive back to your first stop. Save time and money by using the internet
It’s easy to overspend when you don’t keep tabs on how much you have. People will go for years unaware of their true financial situation because they’re afraid to look at what kind of mess they are in. It’s easier (temporarily) to just avoid it. They’ll pay their minimums and add new credit cards as necessary ignoring the growing debt total.
Not paying attention to your bills is a big mistake these days, when banks are doing all they can to boost their profits. Getting your credit card payment in late can mean a $25 whack on the wrist. Being sloppy with your bank account and bouncing a check can cost you around $30.
Keeping up with the Jones’ – Psychology plays a big role in our spending habits. We want to feel as successful as or more successful than those around us. We spend a lot of money to keep up that image. The reality is the neighbors probably can’t afford that new car either.
Buy in bulk: If you tend to buy a lot of a certain item, buy it in bulk whenever there is a savings.
Extended Warranties
Generally, they’re not worth the money. The only thing I now have a warranty on is my washing machine and dryer. If a new gadget or appliance is going to fail, research tells us it will do so during the manufacturer’s warranty period or long after the extended warranty has expired. That makes extended warranties, which can cost anywhere from $5 to hundreds of dollars, a big profit center for retailers and a pretty useless expense for consumers.
If you’re worried about a breakdown, take the money you’d spend on a warranty and stash it into a special savings account. If your item fails, you’ll have the money to repair it. If not which is more likely, in three or five years when everything’s gone well, you’ll have stashed away a nice little nest egg.
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