Lori Kelley

Labor Department Says Economy Created 280000 New Jobs in May

June 7, 2015 By Lori Kelley 3 Comments

The Labor Department says job numbers increased 280,000 in May

The economy appears to be in better shape than many economists had thought. The Department of Labor released the monthly jobs report which featured strong numbers for May. The report showed US businesses added 280,000 new positions for the month, more than the 220,000 jobs economists had anticipated.

At the same time, the unemployment rate increased to 5.5% from 5.4%, which had hit a seven year low last month. While an increase in the unemployment rate seems counterintuitive with the increase in the number of jobs for the month, there seems to be a pretty straightforward explanation. Economists believe with more jobs available and the end of the winter season cold, more people in the US are once again looking for work, increasing the number of people actively looking for employment.

This is especially good news since the job growth numbers for the first quarter of the year had been lower than predicted. Job numbers for January, February and March had been lower than had been anticipated, which had economists questioning whether or not the economy was recovering. The latest numbers give economists hope they were an aberration due to harsh winter weather, rather than a trend and something to worry about long-term.

The numbers are good for both employers and employees. They show businesses are in need of labor, and this is leading to a slight increase in the wages employees are earning. Economists are predicting the job market will remain strong with good job growth numbers through the end of 2015.

There are some numbers hidden in the good news that may make some economists pause. A broader unemployment definition which includes part-time workers looking for full-time employment, and the long-time unemployed people who would like to work, but have given up finding a job has not shown signs of improvement. That rate remained steady at 10.8 percent, something economists would have liked to seen drop with the improving economy.

With a sense of relief with the May numbers, the next date economists will be eyeing is June 17. This is when Federal Reserve Chair Janet Yellen will give her thoughts to the press on where she feels interest rates should be.With interest having been near zero for a long period of time in hopes of stimulating the economy, the new numbers may help her decide it’s time to raise them a bit. If she does, it will be a sign that the Federal Reserve is confident the US economy is in a strong position and it has moved on from the Great Recession.

(Photo courtesy of MITD Gallery)

Tips and Tricks for Keeping Track of Your Finances During Bankruptcy

June 7, 2015 By Lori Kelley 1 Comment

First, let’s get something out of the way: declaring bankruptcy does not make you a failure or a deadbeat. It is one of the many negative and pervasive myths about bankruptcy that people who file for it are either dumb about money or are recklessly irresponsible and just don’t care. The fact is that there are a lot of completely legitimate reasons to declare bankruptcy and to try to give yourself and your family a fresh start.

In a lot of cases, the declaration is the most responsible thing you can do!

The In-Between

Unfortunately, the declaration of bankruptcy is not a severe dividing line between then and now. No, it is a lengthy process and it can be arduous. You don’t simply declare yourself bankrupt and start fresh the next day. Everything about your financial situation will be evaluated and, though you might not have to continue paying your creditors after you’ve declared, the money you earn isn’t necessarily yours to spend as you want, either.

How much of your money is really yours depends upon the type of bankruptcy you declare. For example, according to Doan Law Firm, which specializes in California bankruptcy law, if you file for bankruptcy under Chapter 13, you’re simply reorganizing your debts, so you will likely get to keep more cash on hand for expenses. With Chapter 7, conversely, the cash you have on hand can be seized to help pay off your creditors.

There are some accounts, like certain retirement accounts, that are considered “off limits” for seizing and you might even be allowed to continue contributing to them while you work through your bankruptcy filing.

The point is: it’s complicated. This is why it is imperative that you hire a professional to help you with the process. Trying to navigate bankruptcy on your own (and with clever articles like this one) increases your chances of making mistakes. Hiring a bankruptcy attorney will cost money, yes. It is not money you can discharge as a part of your bankruptcy. Even so, the money you spend on your attorney will be less than what you would be penalized for incorrect filing or trying (or seeming like you’re trying) to thwart the system.

When It’s Time to Start Over

After you’ve finished your filing and your bankruptcy has been sufficiently resolved to the court’s satisfaction, that’s when you really get to start over. Here are the first things you need to do to set yourself up for financial success.

Start Saving: If you declared bankruptcy, you’ve likely been living paycheck to paycheck for a little while. Trying to save money when you are living paycheck to paycheck seems counter-intuitive, but it is important. Even if you can only save a little bit of money at a time right now, it is better than nothing. There are lots of great weekly savings plans out there that help you save without forcing you to only eat ramen all the time. It’s important to save and replenish emergency funds, etc because you don’t want to fall into the trap of relying too heavily on your credit.

Start Rebuilding Your Credit: Wait, didn’t we just say that you shouldn’t rely on credit? It’s true: you shouldn’t. Even so, it is important to start rebuilding your positive credit and proving to future lenders, landlords, etc. that you can handle credit and payments responsibly. The best way to do this is with a secured credit card. You can open a secured line of credit with your bank at any time because you give them cash as collateral (that they keep if you default on your payments). Another great option is to apply for a bankruptcy car loan or similar, especially if you file for Chapter 7 bankruptcy.

Rebrand Your Lifestyle: There is no better time to get intimate with frugal living than after declaring bankruptcy. You’ve been given a fresh start! Learn how to search for deals and find the things you need at affordable prices. Figure out what you can and can’t live without. Living frugally doesn’t have to mean going without or being cheap. It’s more about being smart about where your money goes.

Figuring out how to live while and after filing bankruptcy is challenging. There are very specific rules about how much of the money you earn during the filing process you get to keep. There are specific rules about what and what can’t be seized to help pay off creditors. And then, once it’s finished, the temptation to live a little bit large for a while as a celebration is strong. Work with your attorney to make sure you don’t accidentally torpedo your filing and then, afterward, work to build good habits! You can do it!

How Much Cash Is Appropriate To Give for A High School Graduation Gift?

June 4, 2015 By Lori Kelley 8 Comments

One of the most popular questions on SavingAdvice this time of year is how much cash should one give a high school student for graduation.

There are a lot of variables which need to be taken into account, but there seems to be a basic consensus that the appropriate amount of cash to give depends on how close the person is to you. The general rule is the closer the person is to your family, the more the cash gift should be.

How Much Do You Give A High School Graduate Who’s An Acquaintance

When you receive an announcement in the mail that someone is graduating from high school, it’s important to remember an announcement is not the same as an invitation. There is no obligation to send the graduate cash or a gift unless you want to (a congratulations card or small gift will suffice). If you do decide to give something in this situation, cash or similar in the $20 – $30 range is appropriate.

How Much Cash Do You Give When Invited To the Ceremony

Unlike a graduation announcement, it’s considered good manners to give a gift to the person graduating when receiving an invitation to a high school graduation whether you attend or not. Again, it depends on how close you are to the person, but a cash gift in the $20 – $50 range is usually appropriate.

How Much Do You Give A High School Graduate Who’s A Distant Relative

If you have received an invitation from a distant relative to attend a graduation ceremony, a cash gift in the $50 range is appropriate.

How Much Do You Give A Graduate Who’s A Close Friend or Relative

For those who are close to you and graduating from high school, a cash gift in the range of $50 – $100 is most often appropriate. If the person is part of your immediate family, the gift should be appropriate to what your family does in gift giving situations.

Should I Give A High School Graduate Cash?

What is the best gift to give a high school student graduating? In general, if you don’t know the person well, you can stick with cash, a check or a gift card. There are other great graduation gift options as well. A gift is appropriate if you know the student well and know what he or she would like, but for those who are in doubt, it’s best to stick with money.

What Should Graduates Who Receive Money Do?

For those on the receiving side of cash or gifts for graduation, it’s appropriate to send a hand-written thank you card for each gift you receive. Even in this day and age of computers, it’s still not considered appropriate to send a thank you by email or text message.

(Photo courtesy of m00by)

Simple Safety Tips for Barbecuing Memorial Day Weekend

May 24, 2015 By Lori Kelley 3 Comments

Memorial Day is the unofficial beginning of summer, and with it comes with some seasonal dangers. Barbecuing is one of the activities which comes with some risks. It’s important to take action to help reduce the likelihood of accidents happening when you decide to begin grilling. As with many things, preventing injuries from occurring not only will save you a lot of pain and suffering, it will also be good for your pocketbook.

Memorial Day weekend is the start of the barbecuing season for many people. For those who barbecue, they’ll also be spending more time in the sun. It’s essential to make sure you put plenty of sunscreen and proper clothing on to protect your skin. The vast majority of people simply don’t know how to correctly put on sunscreen, so it’s worth learning how. It’s also important to make sure that you reapply it often during the day. Doing so can save you thousands of dollars by keeping your skin wrinkle-free longer as you grow older by not having the need to purchase expensive wrinkle creams. It can also help prevent costly medical expenses that would come with the development of skin cancer.

Another major risk that comes with barbecuing is food poisoning. The Centers of Disease Control and Prevention (CDC) estimate that some 48 million Americans will contract food poisoning this year. To help prevent food poisoning, it’s important to not to leave food sitting out for extended periods of time in the sun before cooking it. For meat that you put on the grill, make sure that it gets thoroughly cooked. It’s advisable to use a meat thermometer to ensure that heat is getting caught throughout, not just burning the outside, which can be a common occurrence with barbecues. It’s also important to wash all vegetables before you put them on the grill. By taking some simple precautions, you can reduce the risk of getting food poisoning when barbecuing.

The space around barbecue grill can be a dangerous place for kids. It’s important to keep children away from hot grills where they could have an accident that could result in the child getting burned. Experts recommend a 3-foot kid-free zone around barbecues to lessen the danger.

It’s also important to make sure that the barbecue grill is clean to begin the summer season. Many people put away their grills for winter without properly cleaning them. Fat and grease that accumulates over the grilling season can catch fire and send up flames unexpectedly which can injure a person. Cobwebs can have the same effect. Clean the barbecue grill to prevent these issues.

(Photo courtesy of slgckgc)

Mother’s Day Gifts That Will Save Mom Money

May 8, 2015 By Lori Kelley 1 Comment

May has arrived which means that Mother’s Day is almost upon us. If you’re the type who constantly struggles about what to buy your mom, why not try something a bit different this year? Here are a few different gifts that your mom will love, not only because they’re interesting but because they’ll help her save some money as well:

Groupon Vouchers

Who doesn’t love receiving a Groupon voucher as a gift? Groupon vouchers are designed to maximize your savings on items and places that you love. Does your mom enjoy visiting the spa? Or maybe there are a couple of places she likes to shop for electronics or groceries or other household items? There’s probably a Groupon deal for it, so why not buy a couple for her as a Mother’s Day present this year?

Wholesale Club Memberships

Wholesale club memberships to places like Costco, BJ’s or Sam’s Club are great deals and even better gifts. Memberships average around $50 a year and can contribute to a lot of savings over the long haul, especially since you’re buying many items in bulk.

Amazon Prime Membership

Does your mom buy a lot of stuff online? Shipping costs add up over time, especially if you happen to spend a lot of money buying products and items online. An Amazon Prime membership is a great gift to give that online shopper in your life. Amazon Prime memberships also have the added bonus of free online streaming movies and TV shows. Memberships are rising to $99 later this year, but if your mom spends a lot of money online, the yearly fee might outweigh the cost you’re saving on shipping throughout the year.

Netflix Membership

For $7.95 a month, you could also get your mother a streaming Netflix membership so she can finally cut the cord on her cable subscription. Cable TV can range anywhere from $25 to $90+ a month and for $7.95, you have access to a bunch of TV shows and movies right from your computer. This is a great way to still have entertainment without having to pay expensive cable fees.

Gas Gift Card

With the price of gas rising once again, the cost of gas is going to begin hurting budgets of those who haven’t prepared for the higher prices. While it might not be the most exciting or sentimental gift, it is a thoughtful one and one that will definitely save her some money. A $25 or $50 gas gift card can go a long way.

Garden Plants

Does your mom enjoy gardening? Or maybe she enjoys cooking? Or maybe she just likes having indoor or outdoor plants to brighten up the house or yard. Giving her some herb plants or vegetable plants could be a great gift this Mother’s Day. Not only will it be something she really loves, but those herbs and vegetables will mean she can just collect fresh produce from her garden instead of buying it in the store. If your mom lives in an area where she can plant her own trees as well, consider gifting her with a fruit tree as well. After all, who doesn’t love fresh fruit straight from your own backyard?

Reusable Shopping Bags

Reusable shopping bags may not be the most exciting or charming gift, but they’re also something practical and frugal. Many places give discounts to people who use reusable shopping bags, and those discounts can range from five cents to twenty-five cents off your purchase. If you’re looking to make this gift a little more touching, you can buy some blank or plain colored reusable bags and decorate them for your mother. Having your children decorate some for her is also a great idea.

Energy-Efficient Appliances or Electronics

Another great gift for your mom is some new energy-efficient appliances. Maybe she’s been thinking of buying a new coffee or espresso machine or a new television. If you’re planning on going all out for a gift this year, consider buying a new appliance or electronic item that will not only delight her, but some her some energy costs.

Foodsaver

No one enjoys having to waste food and money by throwing away leftovers that are forgotten about in the refrigerator. Your mom may really enjoy receiving a food saver as a present, which allows her to make custom baggies and packages of food to freeze-dry for a later date. This is a great way to preserve your food for later without having to worry about freezer burn or throwing old leftovers in the trash.

Vacu Vin Wine Saver

It’s always a sad moment when you have to throw away a bottle of wine because you didn’t finish it before it turned sour. A Vacu Vin Wine Saver kit is a great way to preserve that already opened bottle of wine for two extra weeks. If your mom has a passion for wine, this is a great gift to give her on this Mother’s Day.

(Photo courtesy of maf04)

The Disciplined Approach to Personal Finance

April 21, 2015 By Lori Kelley 1 Comment

The whole subject of personal finance has been under the microscope in recent decades. Borrowing money has been a way of life across most of the developed world. There is nothing wrong with taking out loans that applicants are able to pay back of course. The USA has arguably led the way in living on credit with the recent recession a clear expression of what was wrong. People were too comfortable with debt and lenders far too complacent when looking at whether to approve. It was real estate and toxic mortgage lending that created the recession, but it highlighted a problem of equal if not more concern; credit cards. Their initial benefit for the consumer was convenience.

They became a serious burden for many people with multiple cards who were able to build up significant debts. Some users didn’t realize they had a problem. Others thought they could always move the debt on. However, the day of reckoning came and many had no solution.

Credit Card Circulation

The number of credit cards now in circulation in the USA is still very much a cause for concern. Anyone that sits down and recognizes they are losing control of their financial situation should explore the possibility of taking a term personal loan to clear their credit card debt. Interest rates are extremely high on outstanding balances; the rope may be tightening around their necks it is time to seek help.

Used properly credit cards are great. When the monthly statement comes in it should be paid in full; no interest is charged at that point though there may be charges for ATM use. Cards are convenient and remove the need to carry a wallet full of notes. Bonus and reward points often mean that people using credit cards properly come out ahead. Even if they are lost and stolen the costs involved are minimal.

Problems

But what is the downside for those with credit cards?

If you have too many you are likely to spend more than you would otherwise. Do you really need all the things you are buying?
Introductory rates may not tell you the whole picture. You need to read the small print.
You may find that some you have taken are very uncompetitive when it comes to charges, fees and interest rate.
If you merely make a minimum payment each month you will scarcely reduce your balance once interest is added.
You are more likely to accept the statements without examining them closely for mistakes.
You can exceed a credit limit once you become under more pressure; even more charges will result.

Economic Factors

The US Economy is improving by the month. The unemployment rate is falling to a level similar to the growth period before the Collateralized Debt Obligation issue resulted in the problems on Wall Street and subsequent recession. Consumer confidence is returning, interest rates are low and job security creates an environment where credit can be seen in a positive light. It is not credit as such that is the problem. It is how responsibly people approach their personal finances.

Alternatives

Mortgage loans that finance real estate are fine because during the term of a mortgage the rise in the value of the real estate should far outweigh the costs involved in taking out the mortgage and paying it off in full. Federal student loans tend to be at good rates and their conditions are less strict than most. Other installment loans need careful thought but that is not to say there are not very positive reasons for getting a loan that is competitive and meets a need. Affordability is a key component in every decision about finance. Even people who were not thinking about taking out a loan should be aware of their monthly income and expenditure, not just happy that there is a surplus at the end of each month. There are stages in life where financial priorities change. As people get older they should ensure their retirement provisions are keeping pace. Health and insurance are subjects to consider on a regular basis and it is surely worth having an emergency fund? That fund is unlikely to be able to pay off core debt built up on multiple credit cards so it is better to ensure responsible use in the first place.