That will be 6 cent please

A group of high school students from Kent Denver School came up with an idea which they took to Senator Jennifer Veiga.   The idea, to charge 6 cents for every plastic bag a customer would use. Veiga thought it was a good idea and drafter legislation to do just that.

It's a great idea for several reasons:

• less shipping weight having to haul around plastic bags, leaving more room for actual merchandise
• less pollution as many bags end up being tossed about by the wind until they get caught in branches or something else, in the landfill they become part of a very toxic soup that can end up in our drinking water
• they choke our landfills
• many bags end up in the ocean where it kills sea life, there are even floating islands of plastic in the ocean now
• our dependence on foreign oil goes down a little more, ever so slightly

But, there is also this:  some stores will now charge an arm and a leg for cloth or other bags, because customers will have less of an option.  One cloth bag does save the consumer money, especially if they are going to be charged 6 cents for each plastic bag.  In fact, one cloth bag could replace more than 6,000 plastic bags per person, a savings of $350, after the cloth bag is paid for.  Cloth bags are bulkier and also heavier, which makes carrying groceries home a bit harder, especially for people like myself who walk, not drive.

Before this becomes legislation maybe someone should think this through a bit more and not allow grocery stores to charge an arm and leg when this becomes law.  It would be good for the environment, our health - less pollution in both manufacturing and dumping of plastic, and cloth bag do reduce our dependence on oil.  Lets just not let the consumer be gouged in the process.

Recession Survival Guide

My book is out at long last and if you would like to buy a copy, it is available at recessionsurvival.richardboettner.com.

The book is well researched and referenced, covering why are in this financial mess and how to help yourself so you are not as affected by it.

If anyone has comments about the book or would like to see additions or changes, you can post here or send me an email (my email address is in the book).

Thanks,

Richard.

Hopin Mad!

Why is it people in this country continue to allow legalized embezzlement by corporate executives at the expense of both customers and employees?

When I heard the news of what the CEO of Merill Lynch had done and how much money was squandered away while the company failing, I just had to say something.  In my opinion, executive pay and benefits is outrageously, to the point of obscenity, high.  They get to pay themselves whatever they want and take bonus as they see fit, literally robbing a company blind.  In doing so, the price of goods and service have to go up in order to allow them to continue to rob the company, us, blind, because no one is stopping them.

I actually get most pissed off at the people of this country, who actually allow this to happen.  Why are people so stupid to think they can't do anything about it?  Don't get me wrong, executives do deserve a nice, fair income and benefits, but not at the expense of employees or their customers.  I am not their slave!

I propose, if there are others, which I am sure there are, who feel the same way I do, to get together and force legal changes.  Some suggestions:

• if employees are facing cuts, all executives do too in an equal manner
• if there are stock options for executives, there should be the same options for employees - after all, they also contribute to the success of the company
• cut executive pay, by at least half, and use that to pay for 100% health care of all employees, add more vacation days; sick and personal days off - to reduce stress which leads to improved health
  Corporate America has lied long enough about there not being enough money to provide affordable health care to their employees or to give them more than 2 weeks vacation days a  year or personal time off.  If that were true, executives couldn't be paid what they are being paid.  They are robbing their employees of everything!
• if executives get a bonus or pay raise, then all employees get one - automatically
• all executives are responsible and answerable first to their employees and then to their customers for both the success of a company, but most of all for their failures
• if a company is failing, executive pay and benefits get the first cut, before any other employees
• if a company seeks and gets a low interest loan because times are tough, executive pay and benefits, if they haven't been lowered already, get lowered and frozen until the loan is paid back in full and no bonuses are to come out of the loan either
• executive benefit packages should be made more reasonable - no free: apartments / homes, tickets to the arts, limo or other transportation, lunches or dinners, company plane rides, exceedingly high expense accounts and so forth.  A company should not be a free ride for executives. They should be made to pay more of their own way, are after all, they are getting huge incomes.

That's a start.  Of course, some would see me as extreme, but it is time we said, STOP, I've had enough, and do something about it.  We need to stop executives from robbing all of us, while half the country lives below a living wage, without health insurance or benefits and barely enough time off to catch their breath.  Stop expecting someone else or our government to do something about it, you need to do something about it!

It Can Pay To Be Stingy

We all know the importance of saving money. Especially for those unexpected events in our lives or retirement. If a 20 year old were to invest a dollar a day, it could grow to about $500,000 after 50 years, assuming a 10% annual return on investment.

There are more ways to boost a retirement account. By cutting your expense by just a few dollars each day adds up quickly. First, you will need to understand the importance compound interest and boosting the return by one percentage. 1% may not seem like much, but after you have saved a dollar a day for one year, your savings would have grown by an additional $3.65 a year. You might be thinking, why bother, right? Wrong.

If you take your time to take out your calculator, that one percentage difference is a really BIG deal. Instead of a 10% annual return, you can assume that you are now achieving an annual return of 11%. While saving a mere $1 a day, how much will your money become after 50 years? The amount would now be $730,000. That extra 1% return will give you an additional $230,000. Assuming you spend $100,000 each year in retirement, this extra 1% will give you an extra 2 years of comfortable living.

In addition to looking for the best return on your investment, you should be looking for ways to cut unnecessary expenses. By reducing spending and not buying one coffee, snack, finding cheaper parking or taking mass transit, you can add as little as a few dollars each month to your investment to as much as a couple of hundred. Also, investing the pocket change you go home with every month adds up quickly too.

A candy bar each day adds up to more than $750 a year. A cup of coffee can add up to about $1,000 a year. Your pocket change comes to an average of $360 a year. Investing these amounts will make you a millionaire by the time you retire, when combined with your other investments.

Without interest payments, that $360 in pocket change you collect each year will add up to $18,000 over 50 years. With compound interest it turns into more than $20,000. Not bad when you think about it as this is investing without really thinking about it.

It pays to be stingy, saving your money and looking for an extra 1% return on investment. I believe you can save much more and the sooner you start, the better off you will be and the sooner you will reach a million dollars.

Budget For Your Future

When was it that you sat down and really thought about your financial future? People are busy these days and you think "well, I'll have time to do it later." You're dead wrong. It is NEVER Too Late to start saving money!

If a 25 year old puts in $2.00 a day into a savings account ($60.00 a month), by the time you reach 65 he'll have a million dollars. However, what is a million dollars these days - really? It's practically chump change with the rising cost of living, especially housing.

So you have to make a budget to save for both emergencies and the future. Don't expect Social Security to kick in, they're having problems already - much less when you get to retirement age!

Here are some strategies to help you save for the future and your retirement:

1. Make a list of all your monthly income.
   
   
2. Then make a list of all your expenses.
   
   
3. Subtract your expenses from your income. Hopefully you come out ahead and not spending more than you make. If not, then you need to make smart decisions on which expenses are a necessity and which are not. Do you really need a cell phone, or is it just convenient?Discipline yourself now and you'll thank yourself later!
   
   
4. Do this for several months, making adjustments to your budget. And then at the end of each month, figure out where your money went, especially unnecessarily. Did you go out to eat more than once a week? Did you buy your lunch instead of bringing a sandwich from home?
   
   
5. Put 10% of your income into a savings plan. This is the "rule of thumb" amongst investors on just how much you should be saving a month. Pay yourself first!  Even the Bible says, 'God helps those who help Themselves.'  It's not being greedy, it's being wise!
   
   
6. Consider other options besides savings. Perhaps invest in a 401k or an IRA. Check with a financial planner to see which one would suit your needs and financial situation best.
   

Really that's all there is to it! Never take money out of your savings for frivilous purchases like a new pair of shoes or to go to a movie. That is for your future! However if your car needs a new transmission, the emergency fund is there for you!

It takes self-discipline and the desire to want to have financial independence. Apply these easy techniques and you'll be on your way!

What's the big deal?

Some people seem to think going Green does not equate to saving money.  Where they get this idea is beyond me. 

Sure, some items do cost more intially like CFL bulb but in the long run they not only last longer, they use a lot less energy than a conventional light bulb.  So what is you can't afford to replace all the bulbs in your house in one day.  Spread it out over 3 to six months and I gaurantee you will see the savings very quickly.  By the end of the year you will see anywhere from 20% to 40% savings on your energy bill.  Who can say no to that?  You do want to save money, don't you?

Until next time...

Five Days Left!

Wow, only five days before my book is released.  I've been so busy thinking about all the details, creating a website, who will host it, press releases, promotion and so many other little details.

Now I'm no big name author like, King; Koontz; or even JK Rowling, but I am sure that my book will sell just fine.

I've been working on this book for some months now.  The book, Recession Survival Guide, is about money, its history, why and how we got into this financial mess, banks, savings, creating wealth and like the title says, survive this, or any, recession.  It was written to help anyone who makes use of the information I present.

Stay tuned, as I will provide a link here on January 20^th where you can buy a copy of my book.

Your Credit, Your Rights

Sometimes, things happen that can cause credit problems: temporary loss of income, an illness, even a computer error.  Solving credit problems may take time and patience, but it doesn’t have to be an ordeal.

The Federal Trade Commission (FTC) enforces credit laws that protect your right to get, use and maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws protect your rights by requiring businesses to give all consumers a fair and equal opportunity to get credit and to resolve disputes over credit errors. This article explains your rights under these laws and offers practical tips to help you solve credit problems.

Your Credit Report

Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Consumer reporting companies sell the information in your report to businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. Under the Fair Credit Reporting Act:

• You have the right to receive a copy of your credit report. The copy of your report must contain all the information in your file at the time of your request.
  
  
• Each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – is required to provide you with a free copy of your credit report, at your request, once every 12 months. Consumers from coast to coast will have access to a free annual credit report if they ask for it. 
  
  
• Under federal law, you’re also entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
  
  
• Otherwise, a consumer reporting company may charge you for another copy of your report within a 12-month period.
  
  
• You have the right to know who asked for your report within the past year – two years for employment related requests.
  
  
• If a company denies your application, you have the right to the name and address of the consumer reporting company they contacted, provided the denial was based on information given by the consumer reporting company. 
  
  
• If you question the accuracy or completeness of information in your report, you have the right to file a dispute with the consumer reporting company and the information provider (that is, the person, company, or organization that provided information about you to the consumer reporting company). Both the consumer reporting company and the information provider are obligated to investigate your claim, and responsible for correcting inaccurate or incomplete information in your report.
  
  
• You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

Surviving in this recession

We are all looking for ways to make ends meet, especially during this Recession. I keep saying the same things everyone else seems to be telling people. Maybe no one is listen and that's why there's so many of us saying it. Here are some short tips for you.

Six quick tips:

1. adopt money saving habits that fit your needs and family
2. keep a spending log to see where your money is going
3. follow a budget, incorporating your spending log
4. buy things from a second hand store, not everything needs to be new
5. mend or repair things to make them last as long as possible
6. keep a change jar you deposit into your emergency fund

Need I really say more at this time? I will be posting something longer soon. Until then, pinch your pennies, stop spending like there's no tomorrow you really don't need more stuff and become debt free for pete's sake.

Happy New Year Everyone!

The first thing on most people’s mind is, making a resolution. In my opinion, stop making yearly resolutions, especially financial ones.  Why do people torture themselves, especially when they know that they don't keep a resolution?  Make a life plan instead.

Here are some financial suggestions I have for you:

• stop living on credit – get rid of your credit cards or using only one for business


• use cash, limiting how much you spend each week


• pinch every penny you have, investing it


• walk more often, its both healthy and saves you money


• build an emergency fund along with other funds for long-term goals (a new car)


• create a budget, adjust it regularly until it reflects your needs, then stick to it


• saving small amounts add up, especially with compound interest

People often refuse to believe that saving a small amount will add up to much. If you put aside $20 a week for 30 years earning 10% interest (the historical rate of the stock market) you end up with $188,200 and you will only have had to save $31,200 yourself. The rest is all compound interest.

Can’t find $20? Spend less each day. Buy less: lattes, chips, minutes of gossip on your cell phone, candy bar, less bottles of water and you can actually save more than $20 each week. If you also put aside all of your pocket change each day adding it to your weekly deposit, you will have an additional $6 each week. Saving money doesn't have to be hard. You just have to do it on a regular basis.  This can't be that hard to do, or is it?

Make this your Life Resolution instead.