November 25th, 2008
This Thanksgiving, let’s try and think of some positives about the economy and give thanks.
1. Gas Prices
Gas prices are down almost 60% on average from their peak this past July. And for most of us this has become a blessing to our personal spending, especially for those that drive a lot. Over the past year, I was spending about $400 a month on gasoline, with the current prices I’ve now got another $240 of spending money each month.
2. Stock Prices
Pessimism in running rampant in the stock market and prices at trading at bargain prices. Yes, most of our portfolios are down at the moment, but we’ve also been given one of the best buying opportunities we will see for years to come. Buying some of the deeply discounted assets at the current prices will really pay off in the future.
3. The Unemployment Rate
Yes, the unemployment rate. As of October 2008, it’s currently 6.5% according to the U.S. Department of Labor. While the U.S. unemployment rate has been increasing, it is still about the same or lower than many other western countries. Such as the United Kingdon 5.8%, Italy 7.1%, Germany 8.1%, Spain 9.6%, and Canada 6.2%, although these unemployment statistics are not an exact science. The main point is that the employment rate is still relatively low. In the early 1970’s and early 80’s the unemployment rate in the U.S. reached 10% and higher, so a 6.5% unemployment rate means that there are still a lot of jobs out there to be thankful for.
November 21st, 2008
Recently American Express (AXP) has been lowering the credit limits of their cardholders, and now I have been personally been included. Just today I was notified in an email that my credit limit was being cut from $25,000 to $7900. That’s a $17,100 (68%) credit reduction! I could understand if this was being done for a legitimate reason, such as my credit scores dropping. But no, I am not naive, I do know why they are reducing mine and many other’s credit limits; I just do not think their reasons are legitimate or even business smart.
My three credit scores are around the good/excellent range (720-740), and I do monitor them often so I know they have not decreased (although now they most certainly will). Many other American Express cardholders with similar if not better credit scores (and a long history with American Express) are also feeling the pinch, see here. (continue reading…)
November 6th, 2008
Have you many times have you paid an ATM (Automated Teller Machine) fee in the past week, month, year? ATM fees are really expensive and after awhile they can really add up. The average ATM fee is now over $3 per transaction. If you’re withdrawing $100, that $3 fee is 3% of the transaction. Is your checking/saving account that you’re withdrawing from even earning 3% a year? Probably not.
At Your Bank or Credit Union
There simplest way to avoid ATM fees is to only withdraw money from your own bank or credit union. Sometimes this requires a little thinking ahead and getting cash for the weekend ahead of time, but this a simple way to stop paying ATM fees without getting a new bank or credit union. Most credit unions, and even some banks, belong to networks that allow you to use ATMs (or branch services) at any credit union or bank within the network for free. Just look for the network logo of your bank or credit union on ATMs.
At Any ATM
Another way to avoid paying ATM fees is to join a bank or credit union that pays your ATM fees for you. Many banks and credit unions are beginning to offer to pay or reimburse ATM fees. Most online banks that do not have brick and mortar branches offer to pay for a certain amount of ATM fees from any ATM. Either way, if you are willing to join a new bank or credit union many are willing to pay ATM fees from any ATM, which can be very convenient.
