"Socialism failed because it couldn't tell the economic truth; capitalism may fail because it couldn't tell the ecological truth." - Lester Brown

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Work

21 Reasons Dave Ramsey Sucks at Giving Credit Score Advice

By 117 Comments

Dave Ramsey credit cards

There are huge disadvantages of having no credit score. I actually know this better than most. After living over ten years in Japan, I came back to the US naively assuming that the credit history I had built over there would transfer back to the US. That wasn’t the case and I found myself having to deal with numerous situations without a credit score. From my personal experience of having to deal with all the negatives that come with having no credit score, as well as knowing a number of others who experienced a similar situation to me when they returned, I can say with conviction that Dave Ramsey gives horrible credit score advice.

For those unfamiliar, Dave Ramsey refers to a credit score as the “I-Love-Debt Score” and makes the statement that “the only way to have a good credit score is to go into debt, stay in debt, and continually pay your accounts perfectly — without adding too much debt or paying too much off. In other words, stay in debt for as long as you can.” This is patently false as I currently have no debt whatsoever and yet have a good credit score. Others do too.

He then advises that since you are working to become debt free, once you reach that goal you “…don’t need a credit score, anyway, since you don’t plan on using credit!” While this might sound nice, I can attest that even when you are debt free, a good credit score comes in extremely handy. I would even argue that having one is essential if you want to truly be financially savvy since it can save you a lot of money. If you care about getting the most out of your money, a credit score, whether we like it or not, is important to have.

While you may have heard some of the below arguments before regarding why a credit score can be important, my guess is that some of my arguments you may never have considered before. Below are 21 reasons that it’s important to keep a good credit score even if you’re debt free (and why Dave Ramsey sucks at giving credit score advice).

Wasted Time

This one is huge and one that I rarely see mentioned. I can’t over emphasize this point enough, and I would argue for this reason alone, you want to keep a good credit score. Not having one will mean that you will have to spend a lot more time when it comes to numerous financial situations, including any of the ones mentioned below. If you believe that your time is worth something as I do, wasted time can be a huge cost. Even when you are able to get what you want, you usually have to spend a lot more time explaining why you don’t have a credit score even though you don’t have any debt. I had to spend countless extra hours, many being extremely frustrating, sorting out my financial situation which should have been straight forward and simple all because I had no credit history.

Difficulties Even When Successful

Another problem with having no credit score is that even when you successfully get what you want, it’s much more difficult to get it than if you had a good credit score. Not having a credit score often means going through several layers of management until you can reach someone who will approve what you need. The fact is that for most entry-level employees, if anything isn’t exactly correct, they can’t approve it. That means that people who don’t have credit scores have to work much harder to get things than others that have a good credit score can get without any hassles.

Poor Customer Service

This is another aspect of not having a credit score that is often not mentioned, but the reality is that if you have no credit score, you don’t get treated nearly as well in many situations as you do when you have a good credit. When institutions look up my credit these days, they always seem to come back with a smile and an attitude that they are willing to do anything they can to help me. When I had no credit score, they always came back with concerned looks and a demeanor telling me that it was going to be difficult to help me even if they did the best that they could. The fact is, having a good score means that you will get better treatment from anyone who looks it up.

Lack of Financial Flexibility

Having a good credit score gives you a lot of financial flexibility that isn’t available for those with no credit score. When you have a good credit score, there are many financial institutions that want to work with you. That’s not the case when you have no credit score. Having a quality credit score means that you can get a much better deal when it come to virtually any financial transaction than you could get with no credit score at all. When the unexpected happens and you need to get funds for something that you had never anticipated, you simply have more flexibility in getting them than you do without a score to your name. This include the flexibility of financially helping out others if you choose to do so.

Increase Large Transaction Risks

One of the things that I immediately realized when I was still trying to get a credit card (which I was having trouble doing because I didn’t have a credit score) was the additional risk that came when making large purchases. I have always put the purchase of my airline tickets on credit cards because years ago I had a ticket on an airline that suddenly went bankrupt. Since I had made the purchase with a credit card, the credit card company refunded the amount back to me since I never received the service I had paid for. Had I not paid with a credit card in that instance, I would have simply lost the money. I had to make a number of large purchases upon arriving back in the US and although I was able to make them in other ways, I felt a bit uneasy knowing that if things went wrong, I really had no protection simply due to the lack of a credit rating.

Emergency Cash

Having lived through the Great Hanshin Earthquake (along with a number of smaller natural disasters), I know the importance of having access to emergency funds. When these disasters happen, it’s often impossible to get access to money that you have in your bank account (in the case of the Hanshin Earthquake, it was over 2 weeks before I had access to those funds). It helps to have cash in the days immediately after the disaster when many of the electronic transaction systems are down, but it also helps to have a credit card. During that time, my credit card was a lifesaver in securing a hotel room and other needs when I needed to spend thousands of dollars to get out of the city and find other lodging, but still didn’t have access to my bank accounts. Living in an area of the US where I knew a similar disaster could take place, I found that I needed to keep a lot more cash on hand in case of an emergency. I ended up losing interest on the cash I took out of the bank account plus there was the risk that it might get stolen, or in an emergency I wouldn’t be able to get to where I kept it in my house. Even with a large amount of cash on hand, I still felt my financial preparation was far from adequate had a true emergency happened. That is not the case now that I have good credit and credit cards.

Debit Cards Have Drawbacks

It’s often argued that there really is no need to have credit cards if you have a debit card, but in my experience, there are some definite drawbacks to this argument. I had a friend who had his debit card stolen and his account compromised. While he eventually got all the money that was taken out of his account back, his account ended up being frozen for a few weeks while an investigation took place. During this time, he had no access to any of his banking funds. As mentioned above, in an emergency you might need to access more funds than are in your debit card account with no way to transfer additional funds to it. It also doesn’t cover you with large transactions like an airline ticket refund if an airline goes bankrupt.

Difficulty Getting Security Clearance

One of my friends who came back after living overseas for a number of years landed a great job, but the job required security clearance. The lack of a credit score turned out to be a major stumbling block for him to get his clearance. He eventually did, but it took a lot of time and effort since his lack of one sent up a red flag, and even ended up meaning much more scrutiny in other areas of his life as well to get the clearance. Again, if you consider time and aggravation as a cost, then there is a definite one when you don’t have a score to your name.

Difficulty Getting an Apartment

I remember talking with one apartment manager when returning to the US that told me as soon as I mentioned that I didn’t have a credit score that I wouldn’t get approved for an apartment in his complex. He explained that there was high demand for the apartments so it simply wasn’t worth the risk to management even though I had a good explanation as to why I didn’t have one. While I did eventually find an apartment, the lack of a score caused some type of issue at each complex I looked at, making the entire process much more difficult than it ever should have been, and definitely much more so than if mine had been good.

The Possibility of Divorce

Nobody ever thinks they are going to get divorced when they first get married, but the truth of the matter is a high percentage of couples do. If you go into a divorce without a credit score, this can cause a number of issue both during and after. When people believe that they will never have to take out another loan when they become debt free, they are probably at a point where they never think they will get divorced either. The problem with divorce is that it can be an extremely expensive process and can quickly wipe out any savings and emergency funds that you might have had. Once divorced, financial circumstances can greatly change to where loans you thought you would once never need, might be needed to bridge gaps until you can create a new budget for your new reality. Hiring lawyers, finding a new job, getting a new place to live all become more difficult without a score in an already stressful time.

Difficulty Getting Loan Approval

If there is ever a situation when you need a loan, not having a credit score will make it many times more difficult to secure it than if you have a good credit. The thing is, even if you anticipate never needing to get another loan again, circumstances change and life could place a wrench into your best laid plans. Even if you are debt free at a moment and don’t anticipate ever needing a loan, that can quickly change if you unexpectedly lose a job and are unable to find a new one as quickly as you hoped. Life throws curve balls from time to time and if you are thrown one without a good credit to your name, recovering from it can be a lot more difficult than if you had it.

A More Expensive Mortgage

If you need to take out a mortgage, you will end up paying much more if you don’t have a credit score. The problem is that no credit score is equivalent to a bad credit score to most lending institutions. If they have no records that you can pay off your debts, they assume the worst and assume that you can’t. This means no score is the same as having a terrible score in the eyes of lending institutions. While you still may be able to secure a loan (and you may not), you will end up having to pay a larger interest rate to do it which can mean paying tens of thousands of dollars more over the lifetime of the loan.

Difficulty Securing Utility Services

When I needed to get utilities in my name after returning from Japan, I couldn’t just call and have them turned on like I expected. Several required me to pay a deposit in order to put the service in my name since I had no credit history of paying these bills in the past. It makes for an extra step in the process, it takes more time to get the service and you lose the interest that you could have earned from the money that you must give as a deposit.

Trouble Getting a Cell Phone Contract

Upon my return to the US, I was actually denied the first cell phone contract I tried to get due to no credit history. I was eventually able to secure one, but I ended up having to pay a deposit to do so much like I had to when it came to the utilities. While the deposit wasn’t a huge amount, I did lose the interest that I could have been earning on it. Far more frustrating was the extra time and headaches (and the costs associated with them) caused by not having a score that would have never come into play if I had a good one.

Possible Negative Effect on Job Opportunities

One thing that many people fail to realize is that as many as 70% of companies will check the credit history of a candidate for a job before they hire. With so many qualified people in the job market these days, it’s often the little things that end up determining who gets hired. A lack of a credit score compared with someone with the same qualifications that has a stellar one could be the difference in who gets the job. Similar small details can make the difference on promotions within certain corporations, especially for sensitive positions. If you lose a job or are passed over a promotion, that can mean thousands of dollars in lost income.

Pay More for a Car

There have been a number of surveys over the years that show that some car dealers have a tiered system on how much they mark-up a car depending on the credit score of the individual buying the car. Those who are deemed the least credit worthy, which would include those with no credit score, can be charged as much as 3.5% more for a car than those with top scores. This has nothing to do with the interest rate on a car loan, but the actual amount that is charged for the car. That means that even if you don’t need a car loan, you can potentially end up paying more for a car when you don’t have a score.

Another way that lack of a score can cost you more, as pointed out by Anni in the comments, is that you can often get dealer discounts by financing a car worth thousands of dollars, then pay off the car loan soon after. I know that this situation arises because I did it once for one of my car purchases. I had the cash to purchase the car in full, but there was a deal to save $2000 through the credit section of the car maker if I agreed to finance the car, so it made good financial sense to do so. I took the $2000 discount and the loan, but as soon as the $2000 credit came through, I paid off the entire loan. The key here is that to take advantage of these car maker financing discounts, you have to qualify for them, and if you don’t have a credit score, you’re not likely to do so.

A More Expensive Car Loan

If you do need to take out a car loan, you will end up paying thousands of dollars more in interest charges with no score than you would with a good one. Interest rates for those with good credit are usually in the low single digits, while those without will pay double-digit interest rates on the exact same loan. While you may not think you will ever need to take out a loan again, something that you never expected like a divorce or a lost job could result in you needing to get one.

More Expensive Insurance

The insurance industry is in the business of assessing risk. They look at a wide variety of things to determine the risks of the individuals and families that use their services. One of the things that they look at is your credit score. Having one that is poor makes you a higher risk than an individual who has one that is high. The problem is that having no score doesn’t allow them to determine whether you are a higher or lower risk, so they will always make the assumption that you are a higher risk when the risk is unknown. What that all means is that if you have no score, you will end up paying more for life insurance, car insurance and homeowners insurance than you would if you hade a good score.

Difficulty Getting a Credit Card

One of the things that Dave Ramsey says is that you don’t want credit cards, but this is only true if you can’t control yourself. The truth is that credit cards are only a disadvantage if you don’t pay them off fully each month. Once you are out of debt and have built an emergency fund so that there is no need to put expenses on your credit card that you can’t pay off in full each month, credit cards are actually a financially savvy tool to use. They give you insurance in many transactions you may not have otherwise, they may provide additional insurance for you with certain purchases such as airline tickets and car rentals, and they can even pay you cash back for purchases you would otherwise make. The problem is that if you ever find yourself in a situation where you need a credit card, but you don’t have a score, it can be extremely difficult to get one. Even when you do, you can expect to have a very low credit limit that will take years to grow to where it can be useful for larger purchases. I know because the only credit card I could qualify for when I returned was with a bank that I had been with for over 20 years, and they still would only give me one with a $500 limit to start.

Difficulty Getting School Loans

If you ever decide to go back to school, having no score can make it difficult to secure loans. Again, many assume that they will never need to go to school again, but further education might be the only way to secure a job if you happened to lose the one you have. If you can’t qualify for student loans from your school or federally funded loans to pay for your education, you will have to turn to private loans which have interest rates much higher and can end up costing you thousands of dollar more for the same education.

Difficulty Getting Business Loans

If at any time you decide that you would like to start a business, not having a score can hurt you financially in trying to secure a loan for the business. When banks give business loans to individuals, they want to see that they have a track record of paying out the other loans that they have taken out. With no score to your name, that record doesn’t exist and you become a greater risk to give a business loan to. With no score, you might not be able to qualify for one at all without putting up a large amount of collateral, and even if you do, you are likely to pay a higher interest rate on the loan than if you had good credit. You will definitely have a much more difficult time securing the loan which can mean many more hours (if not days) trying to get the money you need.

Dave Ramsey gives lousy credit score advice because he fails to take into account that life can get messy in ways that we never anticipate. In addition, he doesn’t take into account the costs associated with the extra time and aggravations that can come with not having a score. If it were true that you needed to always remain in debt in order to have a good credit score as he states, I might give him some slack, but the fact is that this statement is patently false, I know because I’m currently debt free with a good score. While I’m certainly not saying that all the advice that he gives is bad, the advice he gives regarding credit scores sucks.

Finally, if you don’t like my analysis and want to see what Dave Ramsey has to say, think about getting a copy of his book The Total Money Makeover. The book is an combination of educational handbook, inspirational coaching guide and self study manual. It has sold something like 5 million copies – so its a good example of his best work.

102 Ways to Make Some Extra Cash

By 19 Comments

ways to make some extra cash

People often ask me if I know of any ways to make some extra cash. And, although there are tons of ways you can make more money, some of them might take a little longer than others. If you need some ideas for generating some extra money right now, here are 102 quick ideas – particularly if you pick more than one from the list. Below is my list of (relatively) fast and easy ways to come up with a little extra cash in your pocket.

1. Sell your old gold.

2. Collect aluminum and other metals and sell them to a metal recycler. A metal detector makes this easier if you have one. You can also collect cans from your employer if they don’t already have a recycler.

3. Consider driving for Uber or delivering food with UberEats.

4. Do what you do for a full-time job on a freelance basis.

5. Clean out the house and cars and put all the money you find aside. It might surprise you how much small change is lying in the back of drawers, in ashtrays, and between seat cushions.

6. Walk dogs or petsit.

7. Babysit

8. Have a yard sale or open a booth at the flea market.

9. Sell your junk on eBay, Craigslist, Amazon or any of the other good used marketplace websites.

10. Make crafts and sell them on Etsy or at local craft shows.

11. Clip coupons out of the paper and sell them on eBay (yes, people do this).

12. Take online surveys or join rewards programs.

13. If you must spend money, use a rewards credit card that pays cash back and cash out as soon as you’re eligible to do so.

14. Return items you bought but haven’t used for a refund.

15. Pawn something.

16. Rake leaves/shovel snow/cut grass/clean gutters for others.

17. Rent out a room in your house.

18. Start a blog and put ads on it using Google’s AdSense.

19. Become a freelance writer.

20. Become a temporary worker.

21. Become a medical guinea pig or sign up for clinical trials of drugs.

22. Donate plasma.

23. Sell your hair to a wig maker.

24. Sell your eggs to a fertility specialist.

25. Donate sperm at a sperm bank.

26. Start vegetable plants and sell the starter plants for a fraction of what nurseries charge.

27. Drop services you don’t need like cell service, cable, lawn/pool service, or Internet and free upwards of $100/month.

28. Conserve energy and water aggressively and lower those bills to free up extra cash.

29. Return cans and bottles for the deposit if it’s available where you live.

30. Teach something that you are good at to others, either through a community school or private lessons.

31. Sew/make alterations for others.

32. Help the elderly. Offer to do the shopping and take them to appointments, for a small fee.

33. Offer handyman services.

34. Collect ink cartridges from friends and coworkers (and your office if they don’t recycle) and give them to places like Office Depot or Staples for cash back.

35. Wash/detail cars.

36. Wash/detail pets.

37. Sell your stuff to a consignment shop. Here are some tips.

38. Sell food to workers at a construction site.

39. Sell your wedding china to Replacements Ltd.

40. Cash out any “points” you have lying around. Whether it’s from credit/debit card reward programs, store/product loyalty programs, gas rewards, or rewards sites, cash in everything you can and use the cash or gift cards to cover household expenses.

41. Tutor kids.

42. Take a part-time job.

43. Use equipment you already own to make money (power washing, snow blowing, etc.)

44. Help someone move.

45. Act as a driver for the schools. Some public and private schools take on private drivers to go where buses can’t or won’t go.

46. Turn a hobby into profit (photography, cake decorating, scrapbooking, etc.)

47. Use your skills to enter and win contests that pay cash (bake-offs, craft contests, state fairs, etc.)

48. Change people’s oil for them.

49. Use your van or truck to haul heavy things for people.

50. Take any overtime your regular job offers.

51. Clean houses

52. If you have a lot of land, open some up for RV or boat storage at cheap rates.

53. Quit smoking/drinking.

54. Go through drive-through lanes and parking lots after hours and pick up the spare change you find.

55. Use programs like CVS Extra Care and coupons to get toiletry and cleaning items for free. Sell them at your next yard sale.

56. Use coupons and add what you save to your cash stash.

57. Refinance your mortgage. If you can swing the closing costs and you can save a point or two on your interest rate, it may be worthwhile to lower that monthly payment (particularly if you’re carrying PMI and can get out of it by refinancing). Just don’t cash out the equity.

58. Collect old cell phones from friends. family and co-workers and sell them to recyclers such as Greephone.com.

59. Become a human or car billboard. Places will pay you to decorate your car with their logos or wear their logos to popular events.

60. Become a mystery shopper.

61. If there’s a big event coming to your area like a major sports tournament or convention, rent out your house.

62. Panhandle, if it’s legal, or wash windshields at a busy intersection.

63. If you have more than one vehicle, sell one.

64. Unload any tickets you’re holding. If you’ve got season sporting tickets or tickets to the upcoming concert, sell them (just don’t scalp them for more than face value).

65. Test drive for cash. Some car dealers will give you cash or gift cards to come in and test drive a vehicle with no obligation.

66. Drop unnecessary insurance coverage.

67. Drop any “double” services you find. For example, do you have AAA and an insurance policy that provides roadside assistance? Either don’t renew AAA or drop the roadside from your insurance coverage and save the money.

68. Check your state’s unclaimed property office to see if you are owed any money.

69. Cash in any savings bonds you have lying around. You’d be surprised how many people have them gathering dust in a drawer or safe deposit box.

70. Try to negotiate a lower interest rate on any credit card debt you have to lower the monthly payment.

71. Don’t renew magazines, gym memberships, club memberships or any other subscription/membership when it comes up. Let it go and pocket the cash.

72. Use your own ATM. Don’t pay transaction fees at another bank’s machine.

73. Sell any gift cards that you can’t/won’t use on eBay or swap them for ones you will use.

74. Write a book and sell it through LuLu or as a digital download.

75. Make music, art, computer themes, canned websites or clipart and sell them online.

76. Look into bundling the services you need to keep. It might lower the monthly bill.

77. Call all your service providers and ask if you can get a discount because you’re a good customer, always paid on time, or if you’re a member of a certain union or organization. Negotiate a discount if you can.

78. Brown bag your lunch instead of eating out.

79. Actually complete and send in those rebate forms you’ve been meaning to do.

80. Sell your double stuff. Have you digitized your music or video collection to the point where the discs never see the light of day anymore? Sell them.

81. Scrounge the local trash piles for good, intact items and sell them on Craigslist or eBay.

82. You can question the ethics of this one, but people do it all the time: Buy (or acquire for free) items from sites like Freecycle or Craigslist, or at the local thrift shop, and then resell them for a profit.

83. Be a plant/garden sitter. You water and tend to the plants while the owners are away.

84. Become a paid guide at a search website like ChaCha.com.

85. Get paid to submit video reviews of products at sites like ExpoTV.

86. Open a bank account that will pay you a cash bonus for opening the account.

87. Become a focus group participant. Look on Craigslist or in the want ads for postings in your area. Research companies are often listed in the Yellow Pages, as well.

88. Enter contests that give out physical prizes and sell any prizes you win.

89. Send in your FSA or HSA claims. Don’t wait until the end of the year, go ahead and get your money back.

90. Check your health insurance plan for any rebates you’re entitled to. Some reimburse wellness materials like gym memberships or weight loss programs. If you’re paying out of pocket, check and see if you can get the money back.

91. Use a site like Ebates or another rewards program to get cash back on online shopping. Pocket the difference.

92. Ask for a raise at your regular job. It might happen and it never hurts to ask. Even in this economy, you might get it if you’re a valuable employee.

93. If you have a vacant office, room, or garage in your home, rent it out as studio space to artists or musicians whose only alternative is to pay for expensive time in a “real” studio.

94. If you are popular on a message board, ask about a moderator gig. Some are paid a tiny bit each month.

95. Get free samples from sites like StartSampling.com, WalMart.com or many others. It’s not outright cash, but every sample you get and can use or sell reduces the amount of money you have to spend on products.

96. Add affiliate links to your website or blog and get paid when people buy products through your links.

97. Get back anything you’re entitled to. If you replace your car battery yourself, be sure to take the old one back and get the core charge refunded. Get price adjustments on items that go on sale within the store’s specified time frame. Get your security and utility deposits back when you move. Don’t leave any money on the table.

98. Deliver newspapers.

99. Rent out parking spaces. If you live in an area with little parking or near a big event center/arena and you have a little extra space, rent it out for parking.

100. Sign up with Mechanical Turk (Mturk.com) from Amazon.com and take on tasks that interest you.

101. If you have old electronics that won’t sell, try trading them in. There are several stores/websites that offer trade-ins or take backs for cash or gift cards.

102. Stop spending on stuff you don’t need. Seriously. This is the best way to free up cash.

Note that none of these tips require incurring additional debt or cashing out any savings like home equity or raiding a retirement plan. Those are courses of last resort. Try generating extra cash first. If you really want to make some extra money, try turning something you like into a home-based business. There are a lot of ways to generate extra cash if you’re willing to put forth the effort. Use your imagination and draw on your expertise and you can find several ways to bring in some extra money.

1000 ways to make $1000

Finally, if you are serious about finding ways to make extra cash get and read a copy of One Thousand Ways to Make $1,000. This book is reputed by Warren Buffett’s biographers to be one of the major influences on the legendary investor’s business acumen. After pulling a copy of One Thousand Ways off a shelf at age eleven and devouring F.C. Minaker’s practical advice, Buffett declared that he would be a millionaire by the time he was in his 30s. Written in a plain and conversational style this book is full of inventive ideas on how to make money through hard work, excellent salesmanship, and resourcefulness. Get it from Amazon.com here.

Do you have any ideas for making extra cash? Share with us in the comments below!

Read More:

 

 

What Are the Car Requirements for Lyft Plus?

By Leave a Comment

Lyft Plus car requirements

Lyft has multiple tiers for the company’s rideshare service. Along with basic Lyft, there is Lyft XL (formerly Lyft Plus), Lyft Lux, and Lyft Lux Black. By having a vehicle that qualifies for one of the categories beyond the basic Lyft, drivers can earn more for each trip. However, not every vehicle is eligible. Here is what you need to know about Lyft XL.

Car Requirements for Lyft Plus / Lyft XL

The vehicle requirements for Lyft XL are pretty simple. First, your vehicle must have at least four doors, not including jump doors. Second, you need to have at least six passenger seats available – a minimum of seven total, as you would need one for a driver. Usually, this means a car will not qualify. Instead, you would need to drive a minivan, SUV, or something similar.

Additionally, there are vehicle age requirements, though they vary by location. Here is an overview of the vehicle age requirements, based on the state:

  • Alabama – 2004 or newer
  • Alaska – 2007 or newer
  • Arizona – 2003 or newer (2005 or newer for Eastern Arizona, Lake Havasu City/Kingman, Northern Arizona, Yuma)
  • Arkansas – 2003 or newer (2005 or newer for Fayetteville)
  • California 2003 or newer (2005 or newer for Bakersfield, Eastern Sierras, Fresno, Inland Empire/San Bernardino, Lake Tahoe, Los Angeles, Modesto, Monterey, Napa & Sonoma, Orange County, Sacramento, San Diego, Santa Barbara, Santa Cruz, Stockton, Ventura; 2004 or newer for San Francisco, Silicon Valley/San Jose)
  • Colorado – 2004 or newer
  • Connecticut – 2007 or newer
  • Delaware – 2003 or newer
  • Florida – 2003 or newer (2007 or newer for Bradenton, Jacksonville, Miami/South FL, Naples, Orlando, Port of Charlotte, Sarasota, Tampa; 2004 or newer for Daytona Beach, Florida Keys, Fort Myers, Lakeland, Ocala, Port St. Lucie)
  • Georgia – 2007 or newer
  • Hawaii – 2003 or newer
  • Idaho – 2005 or newer for Coeur d’Alene, Idaho Falls; 2004 or newer for Boise
  • Illinois – 2003 or newer (2004 or newer for Chicago; 2009 or newer for Bloomington; 2005 or newer for Decatur, Kankakee)
  • Indiana – 2003 or newer (2005 or newer for Gary, Muncie, Terre Haute)
  • Iowa – 2003 or newer
  • Kansas – 2003 or newer (2005 or newer for Manhattan, Topeka, Western Kansas)
  • Kentucky – 2003 or newer
  • Louisiana – 2003 or newer (2011 or newer for New Orleans; 2006 or newer for Baton Rouge; 2005 or newer for Monroe)
  • Maine – 2004 or newer
  • Maryland – 2007 or newer
  • Massachusetts – 2003 or newer (2004 or newer for Cape Cod, Springfield, Worcester)
  • Michigan – 2006 or newer
  • Minnesota – 2003 or newer (2004 or newer for Minneapolis/St. Paul, though 2008 or older vehicles much has less than 150,000 miles on them; 2009 or newer for Duluth)
  • Mississippi – 2003 or newer (2005 or newer for Gulfport-Biloxi)
  • Missouri – 2003 or newer (2007 or newer for St. Louis; 2005 or newer for Springfield)
  • Montana – 2004 or newer
  • Nebraska – 2003 or newer (2005 or newer for Western Nebraska)
  • Nevada – 2003 or newer (2009 or newer for Las Vegas Area)
  • New Hampshire – 2003 or newer
  • New Jersey – 2004 or newer
  • New Mexico – 2003 or newer (2005 or newer for Las Cruces, Roswell, Taos)
  • New York – 2004 or newer (All NYC vehicles requirements are governed by the city’s Taxi and Limousine Commission)
  • North Carolina – 2003 or newer (2005 or newer for Outer Banks)
  • North Dakota – 2003 or newer
  • Ohio – 2003 or newer
  • Oklahoma – 2003 or newer (2009 or newer for Ardmore, Woodward)
  • Oregon – 2004 or newer (2009 or newer for Portland; 2003 or newer for Medford)
  • Pennsylvania – 2004 or newer, and fewer than 350,000 miles
  • Rhode Island – 2004 or newer
  • South Carolina – 2003 or newer
  • South Dakota – 2009 or newer
  • Tennessee – 2003 or newer (2005 or newer for Cookeville, Jackson, Johnson City)
  • Texas – 2003 or newer (2005 or newer for Abilene, Amarillo, Tyler, Victoria)
  • Utah – 2005 or newer
  • Vermont – 2009 or newer
  • Virginia – 2003 or newer (2005 or newer for Fredericksburg)
  • Washington – 2004 or newer (2009 or newer for King County/Seattle/Tacoma, Olympia)
  • Washington DC – 2009 or newer
  • West Virginia – 2003 or newer (2005 or newer for Martinsburg)
  • Wisconsin – 2003 or newer (2004 or newer for Green Bay; 2005 or newer for Janesville, Madison, Milwaukee, Sheboygan-Fond du Lac Area)
  • Wyoming – 2005 or newer

It’s important to note that these requirements may change. States may alter the oldest model year that is acceptable, potentially annually, to keep the maximum age in line with their standards.

Additionally, the Lyft Lux Black XL program has additional requirements. Namely, that the vehicle needs to be a black SUV and ultra-high-end, including leather or leather-like seats. Some examples of qualifying Lyft Lux Black XL vehicles are:

  • BMW X5
  • Cadillac Escalade
  • Lincoln Navigator

Becoming a Lyft XL Driver

Signing up as a Lyft XL driver is incredibly simple. If your vehicle meets the requirements, Lyft opts you into the program automatically. You do not have to take any additional steps if the qualifying vehicle is on the platform.

However, if you were driving for Lyft with a smaller car before, you will need to adjust your profile to qualify for Lyft XL. The company only allows one vehicle to be approved on an account, so you will need to add details about your larger one so you can make the switch.

To make the change, head over to your Driver Dashboard in the Vehicle section of the app. There, you can add details and upload documentation (inspection, insurance, and possibly registration information) for your bigger vehicle. Typically, it takes no more than 24 hours for the new vehicle to be approved by Lyft, suggesting what you submitted is complete and meets the company’s requirements.

If you want to be a Lyft Lux Black XL driver, you also have to maintain a driver rating of 4.7 or higher. New drivers have to build that rating through other programs before being eligible.

Do you drive or use Lyft Plus? Tell us about your experience in the comments below.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

January Jobs Report Shows Growth Despite The Shutdown

By Leave a Comment

January jobs report

The January jobs report was released on Friday and, despite the government shutdown, there was growth in the job market once again. This marks 100 months of consecutive growth. President Trump took to Twitter to celebrate the latest Trumponomics triumph.

The Job Market Post-Government Shutdown

Although there were another 304,000 jobs added to the market in January the employment rate went up slightly. There is no doubt this is due to the fact that many government workers were forced to file for unemployment or assistance during this time.

That being said, many people were pleasantly surprised by the post-shutdown jobs report. It showed the economy added 304,000 jobs during the first month of the year. The number 304,000 does not reflect any jobs impacted by the shutdown because the Labor Department knew those individuals would be paid eventually and, therefore, were reported as gainfully employed.

What Did The January Jobs Report Say?

The unemployment rate was up due to government workers not able to collect a paycheck. However, it only increased by 0.01 percent from December. There is speculation that the unemployment rate should have actually been higher (4.1 percent).

Another note to take away from the January jobs report is the number of people taking on part-time jobs increased. This was likely due to people being out of work during the shutdown. The Labor Department reported that 490,000 more people were working part-time in January but were searching for full-time work. So, there is still plenty left to be desired where the United States job market is concerned.

Despite the continued growth in the job market, the government shutdown did have a real impact on 800,000 workers in the U.S. Some people were unable to pay bills or put food on their table. Not to mention, the unemployment rate is on the rise again (largely due to the shutdown). And, if no agreement is made soon, it will happen again.

Readers, what do you think about the possibility of another shutdown? What do you think the long-term impact may be?

Read More

Enabling Self-Indulgent Adult Children Is Not Good Parenting

By 117 Comments

About 10 years ago, a woman I know gave up a high paying job in Connecticut because she felt she could not handle the stress. She moved to rural Florida for a few years, lived with a guy she had met in high school in a house that her parents bought, and basically became substantially unemployable – not that she was looking for a real job. She held various low-level jobs until the economy started to slump.

Over the course of the past decade, she has broken off her relationship with her high school “friend” and grown increasingly dependent on her now 70-year-old parents. They started by paying for her home and then her health insurance. Finally, about six months ago, the parents sold the house and had their daughter move in with them. They now cover all of her insurance and living expenses, while she works to earn just enough money to go out with her friends.

The parents are not made of money. Indeed, the recent economic slump has made money a bit tight for them, as their investments have shrunk. Still, they do not stop paying for their daughter’s needs and many of her wants. (It is only recently that she gave up a $500 per month lease on a luxury car!) They even co-signed a loan for the daughter’s ex-boyfriend’s truck but, fortunately for them, he paid off the truck on his own.

When Did Children Stop Taking Care of Elderly Parents?

If we look back at history, the idea of elderly parents taking care of the financial needs of adult children is quite new. Until quite recently, just the opposite was true, and parents could hope for at least a modicum of support from grown children when the parents reached a certain age. Now, it seems that the number of adult children who are relying on parental support is growing by leaps and bounds.

Parents should not have to support adult children who are not disabled. Enabling self-indulgent and selfish behavior in adult children is not even good parenting. An adult who finds a better paying job will enjoy a higher standard of living. An adult who takes a pay cut will need to make sacrifices. Just because an adult wants to take a pay cut, however, should never mean that his or her parents should be the ones to make sacrifices.

Given our current economic climate, there is no justification for an adult child to live off of a parent’s largesse. Supporting an adult child is a very bad decision, especially if the parents do not know if they have sufficient funds to support the child for the rest of his or her life as well as themselves for the rest of their own lives.

If You Have Children, What Should You Do?

If you are a parent supporting an adult child, you cannot show junior to the door without a transition period, of course. Set up a plan so that you can wean your child off of your expense account. Give the child a period of time to find a job, to save some money and then to move out or to start paying their own rent. Offer emotional support and guidance, but cut off the ready flow of funds. Make being a dependant unpleasant, but don’t stop showing your love for the child.

Do you have any other advice for caring for adult children? Share it with us in the comments below!

Read More:

Parents Need to Learn How to Not Spoil Children
Parents: Teach Your Children about Money Because Schools Won’t
Should Parents Pay for Their Children’s College Education?

(Photo courtesy of Ludovic Bertron)

Talent Isn’t Necessary To Succeed

By 6 Comments

talent show sign
I see many people give up on careers and activities that they love (or might love) because they don’t believe they have enough talent to succeed. Whether it’s acting, writing, designing, athletics, or even something more practical like computer programming or teaching, they just don’t feel like they have that magical ability that will make them “good at it.” Either someone has told them they don’t have talent, or they’ve simply come to believe it themselves through a failed effort. They give up before they even get started.

Well, in most cases, I think that’s nonsense. “Talent” is overvalued. Talent is defined as a natural aptitude or skill. That’s it. It’s not a mystical ability, it’s not your predetermined destiny, it doesn’t mean you can’t do the job, and it doesn’t mean that you can succeed without practice training. Neither does it mean that you will love whatever you’re talented at or that you will become rich if you pursue your talent. It simply means you have some things that you lean toward being able to do well. Most of us have several talents. Yours may be dancing or painting, or maybe you can tie a knot in a cherry stem with your tongue.

For some reason, I’m a very talented seamstress. I picked it up easily and have completed many projects that people tell me show real skill and aptitude. The problem is, I hate it. It frustrates me to no end and I always end up wanting to poke my eye out with a needle. I’d never make a career out of it. I’m far less naturally talented as a writer, yet this is how I make my living. I chose it because it’s what I really love to do, unlike sewing which is painful for me. While I may not be “naturally gifted” as a writer, I’ve managed to overcome my lack of natural talent in other ways.

Practice

Practice is essential, whether you’re talented or not. Estimates are that it takes 10,000 hours of practice to become a success or expert at any given thing. So that’s 10,000 hours at the keyboard, easel, or gym. These estimates don’t differentiate between talented and untalented people. It doesn’t take a talented person only 5,000 hours of work, it still takes 10,000. No matter who you are, you have to practice and work at whatever you want to be good at. There’s no shortcut, whether you’re “talented” or not. Everyone has to put in the work and sacrifice other fun things in order to become a success.

Education/Training

In addition to practicing, you have to be trained/educated in whatever skill you want to pursue. That might mean a degree, continuing education classes, lessons, coaching, or apprenticing with a master of your craft. However you do it, you have to receive instruction from a qualified teacher. Nobody wakes up and plays Mozart without some lessons. If you pursue your education and training, find good teachers, and keep advancing when one teacher can no longer teach you anything new, you’ll find yourself slowly mastering your craft.

Dedication And Drive

To succeed at anything, you have to want to do it. I’d never succeed as a seamstress because I just don’t want to. But I can succeed at writing because I want to do it. More days than not, I feel like I have to write or my day isn’t complete. I’m also driven to succeed because this is how I make my living and, frankly, I don’t think I could do anything else. So I have to make this work or I’ll starve. That drive and dedication pushes me to practice on days I don’t want to. It gets me out to conferences when I’d rather watch TV. If you are dedicated to your craft and you have the drive to succeed at it, talent doesn’t matter so much because you will keep working and pushing even when you’d rather not. Some talented people rest and take it easy, thinking their talent will carry them. The “untalented” can often surpass such half-baked efforts through hard work.

Passion

Loving what you do (or at least believing strongly in the value of the work) is a big part of whether you will succeed or not. You may be immensely talented at something, but if you hate it or see no value in it you’ll never put in the hours to perfect it, or have the dedication to keep working at it when you’re feeling like doing anything but. If you have a deep passion for your interest or craft, you’ll want to do it and that will lead you to perfect your skills.

Collaboration

I may enjoy writing, but I don’t enjoy drawing, illustrating, or putting together PowerPoint presentations. I’m not good at it, either, and I don’t have the inclination to learn. Whenever I have to do something that requires illustrations, I have people that I collaborate with. They fill in my weak spots. Similarly, if they have work that needs text, they often call me to write the words. We all work to our strengths. This means that I can take on work that I wouldn’t normally get, and they can, too. If you have areas of your craft at which you don’t excel, chances are that you can find someone to cover your weak spots.

Positive Attitude

This doesn’t mean that you have to be sunny all the time. No one is. However, you have to be able to see the positives in your progress. I get rejected. A lot. But I learn something from most of them. That’s the positive. Sure, the rejection hurts, but I have a positive attitude about it and realize that I’m learning and that I’m at least putting my work out there. A lot of people never even get that far. When I get criticism, I try to take that positively, too. If I got down about every negative thing that was said about my work, I’d never write another word. Fortunately, there are more positives than negatives so I’m able to tell myself I’m not a failure. Keep a positive outlook and you’ll keep moving forward. Get mired in the negatives and you’ll never succeed.

Excel In Other Areas

You can probably name a bunch of people who are hugely successful yet their work is mediocre (and worse than yours, if you do say so yourself). How did they succeed? It may have been being in the right place at the right time, but chances are it’s because they excel in other areas. Maybe they aren’t a great painter, but they are a savvy businessperson who is able to get their work shown in the right places and make sweet deals. Maybe they can’t write their way out of a paper bag, but they tirelessly (and shamelessly) marketed their work until it found an audience. Maybe this person is just so professional in their conduct (never misses a deadline, treats everyone with respect, turns in work that doesn’t need more work, etc.) that people seek them out just to have the chance to work with them. If you worry that your “talent” isn’t enough, make yourself skilled in other, complimentary areas. It might make you stand out in a sea of mediocrity.

Patience And Perseverance

Nothing comes overnight, not even for those who are “talented.” Nobody wakes up one day and paints a perfect piece of art, or writes a publishable novel. Even overnight successes are usually anything but. Most have put in years of effort at something. They worked, they failed, they worked some more, maybe they finally had a moderate success, and then, bam, one day it all came together and now they’re a sensation. They were patient and kept working. They didn’t give up or try to rush something that wasn’t working. They waited, watched, learned, and worked some more. They paid their dues or networked until, finally, all that patience and perseverance paid off and they achieved “success.”

Talent is largely a myth. What matters is how hard you work and how much you want to succeed at whatever you’re doing. If you’re willing to put in the hours, make the sacrifices, and get proper training, you may find yourself succeeding when you don’t have “talent.” You can have all the natural ability in the world, but without work and dedication, that talent will just lie there unused, which makes such a person no different than someone with no innate talent. What separates successes from failures isn’t talent, it’s work.

Finally, I’m not the only person who is saying this – Malcom Gladwell’s most recent book is called Outliers: The Story of Success. It pretty much says the same thing I do – only with data and facts. The book is a best seller and retails for something like $11 bucks on Amazon.com. I would definitely pick up a copy if you want to learn more about what it takes to be successful.

(Photo courtesy of San José Library)