What is Digg?52 Comments
- 47f0, on 10/12/2007, -0/+27My credit card tip? A ziplock bag. Fill it with water, toss your cards in, and place in the freezer.
I've got to REALLY need something to go home and chisel a card out of a block of ice. - StripeyMagee, on 10/12/2007, -2/+25Credit is slavery.
- cdlavalle, on 10/12/2007, -0/+22Credit, if used wisely, can be an effective lever catapulting you to greater financial rewards than you could ever achieve on your own. Unfortunately, probably less than 1 in a million people that use credit use it in this way. It takes savvy and guts but it can be done. The rule is this, only use credit when it will make you more money than you spend in interest. Example: One of my former bosses spent 15 years building up his credit getting signature loans, putting the cash he received in another bank and paying off the interest at a loss. Then, when he was able to walk into a bank and put his name on a piece of paper for a huge sum of money, he bought a resteraunt with it. He was a resteraunt company's president at the time so he knew a bit about how to make money in that industry. Long story short, that restraint paid off that leveraged investment in less than a year and he took the next year's profit and bought another resteraunt in a nearby town etc. etc. He went from having no money to making millions a year with patience and utilizing credit correctly. It was risky, but worth it and he made every penny back and then some that he spent during his fifteen years of building his golden signature. It's a lot wiser but admittedly not as fun as buying that XBox360 and 50 in. DLP TV on your credit card.
- cvindustries, on 10/12/2007, -0/+12Credit card in a block of ice, that's pretty funny.
For the rest of you readers, know this: A store pays a premium to carry credit cards (usually around 2% of the purchase price). They do this because it increases the odds that you'll make impulsive buy since you don't have to fork over the cash right then and there. However, there are many credit card companies out there, and their competitiveness has resulted in credit cards that offer a sizeable chunck of that 2% back to you.
End result - I typically get about $100-$150 cash back a year. For doing nothing other than using plastic instead of cash. Pay the bill in full every month (treat it like a debit card), and there's no expense at all.
I'm 26 and have been doing this for about 7 years now (though my cashback has only been this high the last 2-3 years) and I'm floored at how many adults in their 40's and 50's are still convinced that credit cards will only COST you money! Work the system. - inactive, on 10/12/2007, -1/+12I have a radical new financial plan that could change your life, it is called: Don't buy stuff you cannot afford.
http://danwho.net/mp/index.php?id=snl_dontbuystuff - NoAccounting4me, on 10/12/2007, -8/+18How do you get to the frontpage of digg? Lists with lots of items. Of course, to get to 101 items, it helps to repeat yourself:
"2. Create and stick to a budget"
"39. Entertainment need not be limitless... set a limit for the money you spend..."
"14. Resist temptation"
"40. Learn to 'make do' with what you can afford... if you can control those yearnings..."
"62. Be patient"
"66. Do you 'need' or 'want' something"
"81. Increase your 401K or IRA contributions"
"90. Optimize your 401K"
"97. Make your home more energy efficient"
"98. Save energy... shop around for energy efficient lamps"
"12. Insure yourself"
"89. Get health insurance"
(and that's ignoring #5's "earn more, spend less", and all of the numerous 'spend less' tactics, along with a few 'earn more' tips)
Then there are the inevitable typos or simply false statements:
"56. Take advantage of payday loan. One loan you must stay away from at any cost is a payday loan."
(hmm... methinks there might be a word missing somewhere...)
"81. Increase your 401k or IRA contributions. This will help save taxes and is beneficial in the future as well."
Actually, that's only a half-truth. 401K contributions are tax-deductable. Roth IRA contributions are not.
"16. Get yourself a debit card... debit cards limit your spending capacity."
Actually, they don't. You can overdraw an account with a debit card quite easily, and anyone that thinks otherwise is probably more likely to learn the hard way. If you're really trying to limit your spending capacity, use cash.
"64. Take risks... for instance, you may be... a decent drummer. Use these talents to make some money and as your clientele grows, you can increase your rates."
Yes... that's right... being a drummer can make you big bucks...
No digg for a list that thinks "clip coupons" is a financial tip I didn't learn in high school but should have. Sadly, my high school personal finance instructor DID teach me to clip coupons, but didn't talk about cashflow or various debt structures. - anagoge, on 10/12/2007, -3/+131. Start a cool company.
2. ???
3. ???
4. ???
5. ???
100. ???
101. Profit. - scoreboard27, on 10/12/2007, -2/+8Use your credit wisely and you will get a Xbox and that 50in. DLP TV free with Rewards Points...
- PatrickFisher, on 10/12/2007, -1/+7Use credit when credit is due.
- PPoff, on 10/12/2007, -0/+6I've got no problem with credit per se. The problem is the way that it is being marketed. People aren't learning the lesson that these debts come with high interest, and it all has to be repaid.
- chinaman1472, on 10/12/2007, -0/+5But you need credit in order to obtain other things in life. Need to buy a house or car? Hope you have that kind of money ready to be withdrawn on your checking account.
- CiXeL, on 10/12/2007, -0/+5102. Be lucky enough to select a career that doesnt get outsourced or made obsolete by technology where you are forced to decrease your standard of living.
- fastsix, on 10/12/2007, -2/+7Tip 102: If you live in an apartment, you shouldn't be driving a BMW*
*Exceptions for cities like San Francisco, New York, other obviously expensive cities - honey54, on 10/12/2007, -0/+5It should be against the law for credit card companies to solicit new accounts via snail mail. It should ONLY be available when the consumer queries the lender. Credit card companies who solicit aren't much better than drug dealers.
- PPoff, on 10/12/2007, -1/+5Anyone believing that parents are up to the task of teaching their kids about finances should remember that the average American Adult (parents included) has $9000 in credit card debt.
OUCH. - PPoff, on 10/12/2007, -0/+4I think there are two lessons to be learned from the fact that parents are so much in debt:
1. Either they don't have the self-control to stop...
2. They're too dumb to know how devastating the compounding interest is...
Either way, I'm not confident in most parent's ability to convey how "evil" a credit card is (theory 2) and if they are, im not convinced they're leading enough by example (option 1) to offer the kid any hope of being more fiscally responsible. - AlbinoRaven, on 10/12/2007, -0/+4Credit is a tool to use if you know how to use it, unfortunately most of those out there treat credit cards as hedge against living paycheck to paycheck.
It's weird that they don't teach home Economics anymore. All of these points were covered in the Home Econ classes we had to take at one point in time. In fact it was impossible to leave high school with your diploma without it. In Home Ec you would learn budgeting, saving money, cooking (save a tonne money doing your own cooking), basic repair (buttons, tears, little bit of plumbing, carpentry), home safety. I can't imagine how the course isn't taught anymore.
It should be mandatory for all students going through the system to understand basic life skills. Unfortunately I think the current establishment likes the idea of consumers that don't know how to do anything.
This is what drives me crazy currently. I'm listening to the radio and they are asking people what they are buying for their loved ones at Xmas. Most of these doorknobs are buying iPods for stockings and then three other big gifts (Big Screen TV, New home theatre, etc.). Basically junk. Thousands of dollars of junk. - ScottMitchell, on 10/12/2007, -1/+5@cvindustries:
Unless you spend LESS with credit than with cash, you are losing. I believe there have been studies that show the average credit card purchase at fast-food restaurants is like 17% higher versus payments in cash. Another stat is with vending machines - those that take plastic average something like a dollar more per order.
I used to have your opinions regarding credit cards, but the 1-2% is not worth if it you're spending 17% more! :-) Plus, there's something that feels rewarding about spending cash. Makes the transaction seem more real, so to speak. - xile, on 10/12/2007, -0/+3Interesting--I learned almost all of this stuff in high school. Granted, I did learn it from my parents first. Either this title is inaccurate, or I had an above-average high school.
- inactive, on 10/12/2007, -0/+310. Invest: Begin investing as soon as you begin to earn. You could invest in mutual funds, and other investments or contribute to a retirement plan.
You need money to make money, and while it's good to be prudent and careful about these things, it also doesn't necessarily take a genius to succeed in investing (just use a little discretion and common sense). - Avalerion, on 10/12/2007, -1/+4Not all of these are correct either... I doubt the writer knows too much. Take for example this recommendation:
Home As Collateral: While home equity loans do offer attractive loans at reasonable rates of interest, remember, your home is the collateral here. Unless you really need the money, avoid a home equity loan.
Home equity loans bad? Sure, if you go nuts buying complete crap. But did you know that you can finance your next car via home equity AND DEDUCT the interest on the car on your tax return? There's a little known area that allows up to 100,000 in equity loans to be deducted for various personal purposes, so long as you have positive equity. (Cost Basis - Mortgage = Number > 0) - mikedpirone, on 10/12/2007, -1/+3Personally I'm only using my credit card to build myself good credit. I only purchase items on my credit card that I have the money to buy and pay it off within 2 bills.
- hackwrench, on 10/12/2007, -0/+2"Makes the transaction seem more real, so to speak."
Oddly enough, that's not true for me, but then I can check the transaction online when I use plastic, usually a debit card.
Just as I can keep checking back on comments I've made online, but not on comments I've made in the real world, that transaction is more real to me because it's "still there". - Itkovian, on 10/12/2007, -0/+2I fail to see how using a credit card correctly, and paying off the debts regularly can get you access to house loans. Over here, before getting a loan, you have to show your income sheets, and they usually let you lend only as much as you can pay off using 33% of your income. Unless you make a lot, then it can be up to 40% or 50%, as they assume you don't need that much money to live off. I've never been asked about my credit card status, only about other loans I might have running, e.g., a car loan.
- chinaman1472, on 10/12/2007, -1/+3Lots of tips are common sense:
5. Earn More, Spend Less
6. Avoid unnecessary debt
13. Keep records
18. Guard your credit card number
38. Never bounce checks
44. Avoid eating out all the time
And that was me skimming the list and I quit halfway down, and trying to avoid repeats.
They don't teach you some of those things in school, because lots of those things are not necessary to teach, and many things they have taught you. Simply doing research on any financial subject should be up to the person, not the educational system. If you're going to believe what one credit card says and just take that deal, you deserve to be in debt.
If you've done any half-way decent research paper in high school that you didn't plagiarize, you'd realize that you have to do research from more than just one or two sources. Why should high school be responsible for simply telling you when to apply certain skills to certain situations?
It shouldn't be your high school teaching you this. It should be your parents. - phenolholic, on 10/12/2007, -0/+2most, if not all of this is common knowledge and common sense. boy, anything can make it to the diggs homepage
- earlycj5, on 10/12/2007, -0/+2Lost me with the first line. I'm sure to lose? Really? I read it and thought, well sure I could, then I read I was sure to lose if I tried.
Uh, sure, there's months I don't use the credit card already. Then there's the months I do but I always pay it off in full. Not all of us are stupid when it comes to our spending and saving. - StripeyMagee, on 10/12/2007, -0/+2Ya know those post paid envelopes they send with the credit card solicitations? Well I like to fill them full of crap. I usually just clear junk off my desk packing the envelope full. You see, the credit card company has to pay whatever the postage is to get an envelope full of crap.
- AlbinoRaven, on 10/12/2007, -0/+2Ever been laid off. Business lose it's run? Need to buy a car? Clothes, food, party, vacation, education, take a year off, retire...take your pick.
You save money as a hedge against the possibility that you need it later.
So how is your parent's spare room? - ApeInago, on 10/12/2007, -0/+1I wouldn't.... buying a house is like spending a bunkload on credit... same diff, imho
- silverbax, on 10/12/2007, -0/+1Yes, except you are financing a car (which is a bad idea to begin with, because it depreciates in value) with a 10 year plus loan, unless you do the math to pay it off in a set amount of time.
And you shouldn't ever finance a car. Buy a cheap car and save your money. A car is a consumer item. Borrowing money against your house to buy a car is no different financially than borrowing money to buy a Playstation. - gte879p, on 10/12/2007, -0/+1Itkovian. They don't ask you about it, they run a credit check on you. Have they ever asked for your social security #? Then they ran a credit check on you.
Not that using a credit card correctly gets you access to home loans. But that using one responsibly gets you MUCH better rates. The idea being if you've established a good credit history, there is less risk to them in giving you a loan. Due to your good habits, they give you a better interest rate with better terms.
If your credit history sucks, you get worse terms with higher rates.
If it's really bad, or the amount of loan you're requesting is too high, then they will refuse to loan it to you. As "you can not be trusted to pay us this loan back".
It's easier to get a home loan, because the bank can always take your house (and all the equity you put into it). - lilxvietxboi, on 10/12/2007, -0/+1Creditcards are the devil. But if you know how to play the devil. Then your in good shape.
Pay off most if not all of your bill every month to build credit, and you are set AND you get cash back if you pick a good card.
Without a creditcard, you can't build credit. How do you expect to buy a house? Especially these days.... - queefer, on 10/12/2007, -3/+4in other words, USE COMMON SENSE
- Lars0, on 10/12/2007, -1/+2yeah, when there are 101 things they get pretty marginalized, it could be summed up into a bout ten strategies.
- halfnormalform, on 10/12/2007, -0/+1From TFA: "Avoid getting yourself a credit card unless you absolutely need to have one."
Not having ANY credit cards will prevent you from having a healthy credit history, which will keep you from buying a house.
The rest of the advice is needlessly long and repetitive. Buried as lame. - Anz333, on 10/12/2007, -0/+1I disagree with the comment that you should consider a public school ONLY because it's cheaper. Their are differences way beyond cost between public an private schools. There are drawbacks and benefits to both and it has to be an individual decision. Depending on the student you may be able to get scholarships from a private school that bring down the cost to near or even below what you would have paid at a public school. Although "sticker shock" can be hard to deal with (especially for whoever it is that's paying more of the bill) but it shouldn't be the only factor. Another thing I learned when looking at colleges is to see what is included in the numbers you are quoted. For example at many private schools tuition includes admission to all sporting events, concerts, gym/pool/athletic facilities whereas at some public schools these things are additional fees. Basically it boils down to the fact that you need to ask a lot of questiosn when choosing a college. There are things though that public schools can offer that private schools can't. More majors and more courses within majors. There are usually more opportunities to participate/assist in research at public schools.
It boils down to your individual wants and needs. Ask lots of questions and choose what's best for you and what you can afford...Expect to be in debt but it's worht it because in the long term you'll be making more than if you only had a high school education. - GunsGermsSteel, on 10/12/2007, -0/+1Here's my question: you save all this money but what for? There has to be a goal. If you're just saving money for the sake of saving money, then you're defeating the purpose of money. You can't take it with you when you die and it can only lead you to enjoyment (unless you're Scrooge McDuck and just like swimming in it).
- radu5er, on 10/12/2007, -0/+1Two words for ya folks....
Dave Ramsey
http://www.daveramsey.com/ - inactive, on 10/12/2007, -0/+1Should have...yeah right.
- soundphan, on 10/12/2007, -0/+1100% Common sense - no digg
- jerickson, on 10/12/2007, -0/+0It is not credit cards that are the problem it is undisciplined spenders. By using credit cards carefully, I just graduated from college this year with a 760 credit score and never paid a cent in interest to credit card companies. In fact, I get cash back rewards and use my credit card statements to get an itemized summary of my spending in the previous month.
- Fiyerstorm, on 10/12/2007, -0/+0lol I love how people love picking apart the negative from this link... I'm in a financial pickle right now and this article benefits me because I am stubborn in the spending department. *prints & dig*
- leesyg, on 10/12/2007, -0/+0Credit card companies make it too easy to take money.... With all the offers and extra days.. I just cant say no. :)
- dtrain, on 10/12/2007, -0/+0Hmmm, seems like a lot of the tips are a rehash from this site:
http://www.yourcreditadvisor.com/blog/2006/10/102_personal_fi.html - chinaman1472, on 10/12/2007, -2/+1So it should be pretty easy to tell your kid how evil a credit card is. So many people have this idea engraved in their heads that once the kid goes to school, the parent no longer needs to "parent" the child.
- JimMessenger, on 10/12/2007, -5/+4The Plastic Apple...
- InfamousX241, on 10/12/2007, -8/+2Oops wrong news article! Ignore this.
- jesirose, on 10/12/2007, -10/+2@47f0 - Like, say...a microwave that could melt ice?
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