2008 July 17 | money news blog

Continue reading Where’s my economic stimulus check? In hand at last!

17 07 2008

Where’s my economic stimulus check? In hand at last!

Posted by: in Money General Talk

Filed under: Debt, Saving, Shopping, Tax, Recession

What do you know? The check really was in the mail.

After a long wait for my economic stimulus payment, the check appeared in my mailbox yesterday, June 23.

After all the confusion about when we’d be getting the money, and in what form, I wasn’t exactly holding my breath June 20, when the paper check was due, according to the IRS website. And indeed, the day came and went and there was nothing but junk mail and catalogs in the afternoon mail.

Continue reading A pledge of prosperity

17 07 2008

A pledge of prosperity

Posted by: in Money General Talk

Filed under: Banks, Debt, Recession, Bankruptcy

“American production has come to equal and even surpass, not our people’s power to consume, but their power to purchase. . . .” (Time Magazine, Monday, Dec 02, 1929)

Such were the words of Henry Ford, as reported by Time Magazine. Those words were contained in a prepared statement he handed to newspaper reporters after the conclusion of what was perhaps the single largest and most important gathering of domestic business, industrial, and merchandising minds the world had known to date.

At that meeting were key representatives of such great names as: General Electric, AT&T, The American Railway Association, US Steel, General Motors, Sears, and Ford. Henry Ford’s expressed solutions to the problems of the day included: “Putting additional value into goods or reducing the prices to the level of actual value,” and: “Starting a movement to increase the general wage level.”

That meeting followed the great stock market crash of 1929, and it was meant to help build a bulwark against possible negative impact of the recent market wreck against national business interests and the public at massive. The leaders of business, industry, and merchandising pledged millions of dollars in expansion, and gave assurances that they would maintain business as usual. At that time the position of then president Herbert Hoover was that there had been no business recession, only the threat of one.

All 25 ways to raise quick cash.

17 07 2008

Raising cash in a hurry #1: Head to the casino

Posted by: in Money General Talk

Filed under: Cards, Debt, Extracurriculars

Late on rent? Loan shark breathing down your neck? Can’t fill your automobile with gas to get to work on Monday? Assuming all available funds and traditional sources of credit are tapped out, here are 25 (legal) ways to raise cash in a few days. We list them in order from least to most desperate.

Understand this first: this is our #1, most desperate way to make some quick cash, and only applies in this situation: you have some cash, but not enough, and MUST have more within a very short time or your life will fall into ruin. When you’ve exhausted each other possible avenue, only then does a reasonable man think about the casino.

Why is this our most desperate? Look at Las Vegas. Those beautiful building don’t grow in place; they represent the house’s advantage. Understanding this, what is you ideal play? If I were in this situation, what games would offer me the ideal shot at winning enough to save my butt?

Games I would avoid: slot machines, roulette, and other games that are 100% luck. The house advantage is considerable and unalterable. I would also avoid games in which I compete directly against other betters, such as poker. I’m not an experienced player, so the odds would be heavily against me.

I’d go with blackjack. A four-deck game gives the home only a .51% advantage, vs. 9-10% on the slot machines. I’d find a system to guide my decisions and bet strictly within those guidelines. This would give me as close to a 50% chance of winning as I’d be prone to find in a casino.

And, most importantly, I’d take this vow. Read it aloud with me. “I will quit the moment I’ve the money I need.” I’d tattoo that on the back of my hand. If I’m down to our #1 way to raise cash in a hurry, I’m already playing long odds, and the rule of any casino is, if you play long enough, you’ll lose. 100% guaranteed.

Continue reading Raise cash in a hurry #3: Scalp some tickets

17 07 2008

Raise cash in a hurry #3: Scalp some tickets

Posted by: in Money General Talk

Filed under: Debt, Entrepreneurship

Late on rent? Loan shark breathing down your neck? Can’t fill your vehicle with gas to get to work on Monday? Assuming all available funds and traditional sources of credit are tapped out, here are 25 (legal) ways to
raise cash in a few days. We list them in order from least to most desperate.

So you’re broke, and you need money, and it suddenly occurs to you that you are sitting on concert tickets to High School Musical: The Ice Show, or Hannah Montana. If the water dept. is threatening to cut you off for non-payment, scapling those tickets could save you from a dirty, smelly fate.

In circumstances such as this, a rational person will consider scalping the tickets to recoup their investment, or perhaps even realize some profit. However, proceed with caution. While it is generally legal to resell tickets for what you paid for them or less, some says frown on selling them for more. Check you state laws for scalping restrictions.

You could go the internet route to sell your ducats, on sites such as StubHub.com. If you’re thinking of selling them on eBay, you can fill out a form to learn if your say grants or disallows it by clicking here.

All 25 ways to raise swift cash.

17 07 2008

Raising cash in a hurry #6: Sell your plasma, hair

Posted by: in Money General Talk

Filed under: Debt, Health

Late on rent? Loan shark breathing down your neck? Can’t fill your vehicle with gas to get to work on Monday? Assuming all available funds and traditional sources of credit are tapped out, here are 25 (legal) ways to raise cash in a few days. We list them in order from least to most desperate.

In a truly free market economy, you’d be worth a lot of money in organs alone — selling a kidney or lung could solve your money woes. However, the government and our sense of propriety permit you to only cash in on plasma, hair and (maybe) breast milk.

You can legally trade plasma for cash in the U.S., the fluid in which your blood corpuscles and other little bits circulate through your blood system. In most bigger cities, there are clinics that’ll pay you up to $35 or so for some of your plasma, which you can donate twice a week. The process, which involves taking blood, draining off the plasma and returning the remains to your system, takes around half an hour to an hour. To donate, you’ll need to be relatively healthy and drug free.

The hirsute can also make some swift cash by selling off their hair. Hair must be at least ten inches long, and uncolored. Well tended (not over-shampooed or sun damaged) hair is worth more. Web sites such as The Hair Trader serve as a market for those looking to sell or buy hair. Sales announced on the site range from several hundred to over a thousand dollars for a generous length of tresses.

Finally, some mothers who find themselves with an overabundance of breast milk have taken to offering the extra for sale on the Internet. However, the trade, of questionable legality and fraught with health issues, remains rather clandestine and I can’t recommend it, even in a pinch.

Continue reading Raising cash in a hurry #8: Raid your IRA

17 07 2008

Raising cash in a hurry #8: Raid your IRA

Posted by: in Money General Talk

Filed under: Borrowing, Debt, Retire

Late on rent? Loan shark breathing down your neck? Can’t fill your car with gas to get to work on Monday? Assuming all available funds and traditional sources of credit are tapped out, here are 25 (legal) ways to raise cash in a few days. We list them in order from least to most desperate.

If you need swift cash, your retirement savings can look like a great place to find the lump sum you need, but tread carefully. There are many rules and if you don’t qualify for an eligible withdrawal you’ll have to pay a 10% penalty plus taxes on the money at your current income tax rate.

So suppose you need about $10,000 and are in the 25% tax bracket: in order to get that net amount you would need to withdraw $15,500. Of that amount 10% ($1,550) would go toward paying the penalty and 25% ($3,875) would go toward taxes, which totals $5.425. From that $15,500, you would be able to use $10,075. Let’s say you think you’ll have enough to repay that money in a couple of years. Forget about it. You can’t replace retirement funds you withdraw. You’ve lost the savings opportunity forever.

Now let’s suppose you kept the money in the account and invested it for 20 years at a return rate of 8%. That $15,500 would be worth about $75,000. You must think about whether it Is really worth it to you to lose that savings opportunity or do you want to find another solution for getting the funds together.

Continue reading Raising cash in a hurry #9: Get a payday loan

17 07 2008

Raising cash in a hurry #9: Get a payday loan

Posted by: in Money General Talk

Filed under: Banks, Debt

Late on rent? Loan shark breathing down your neck? Can’t fill your vehicle with gas to get to work on Monday? Assuming all available funds and traditional sources of credit are tapped out, here are 25 (legal) ways to
raise cash in a few days. We list them in order from least to most desperate.

Somehow I’ve managed to become WalletPop’s poster child for payday loans. I wrote about my experiences with them a few months ago, and then swiftly wound up being asked to write a little series about payday loans (the series is at the bottom of the page of just aforementioned post). And now that we’re doing a “raising cash in a hurry” series, what does my editor recommend I write about? You guessed it.

It is true, though, that earlier this year I went to a payday loan store. Not once. Not twice. But three times. And in those cases, I was able to get cash in a hurry — faster than most of these other ideas we’ve, I’ll bet. But that doesn’t make it the ideal of the ideas.

I’d call it one of those last-last-last resort methods, but I’ve to give the payday lending industry its due, it is quick. Once I made my decision, it took me about 14 hours and 20 minutes to get my money.

All 25 ways to raise quick cash.

17 07 2008

Raising cash in a hurry #11: Take in a boarder

Posted by: in Money General Talk

Filed under: Debt, Home

Late on rent? Loan shark breathing down your neck? Can’t fill your automobile with gas to get to work on Monday? Assuming all available funds and traditional sources of credit are tapped out, here are 25 (legal) ways to raise cash in a few days. We list them in order from least to most desperate.

When my friend Michael, an inveterate couch surfer, turned up on my doorstep a few years ago, my boyfriend had just moved out, and I was wanting company and needing extra rent money. Thus Michael took up residence on the couch my ex had recently vacated, and I went about adapting to having a roommate who I didn’t want to see me naked.

Aside from having to shut doors and don a bathrobe more often than I was used to, my new living arrangement worked pretty well–for a while. Michael was paying rent and lending me a supportive shoulder. We’d concurred when he moved in to check in with each other after a few months to make sure there were no major problems, and when we did so, there weren’t. So Michael stayed on … and on … and on, and I commenced to kicking myself on a daily basis for not having set another check-in (or would that be check-out?) date. When he finally did move out after about a year, our friendship had been sorely tested.

The biggest lesson I learned? Sharing living expenses can put more cash in your pocket. However, If you ask someone to move into your spare room–or onto your couch–draw up a lease agreement, even/especially if your prospective boarder is someone you know. Have conversations about how to share living space, particularly if, as in my case, you only have one bathroom. Make sure to outline kitchen privileges, including whether or not you want to share food.

I was unprepared to be a landlady, and I wouldn’t do it again in my current living space. If I ever move into a home with a granny unit, I might think about renting it out–as long as the unit has its own kitchen and lavatory.

Help your credit score by adding your statement

17 07 2008

Lenders working overtime to evaluate credit risks

Posted by: in Money General Talk

Filed under: Cards, Debt

Fair Isaac didn’t start working on the idea of a quantitative credit scoring system until 1958, and didn’t introduce its credit agency scores until 1981.

That’s right: banks used to lend people money without FICO scores. Instead they relied on stuff like employment history and, gasp, character. To get a loan, you used to have to meet with an officer or even a committee face to face, and they’d assess your reliability

As the foreclosure crisis has shown, relying solely on the quantitative can lead to disaster. The old-fashioned bankers might have been on to something. The Wall Street Journal reports (subscription required) that credit card issuers are now expanding their underwriting standards to include a focus on the applicant’s line of work and where they live. If you work in construction in Nevada right now, you might have a tough time getting a loan.

This newfound prudence can be tough for some business owners who are seeing their lines of credit slashed for no reason other than that they’re in a certain industry — even if they happen to be faring quite well. But for most individual borrowers, I would say that a slash in your credit availability should be a warning sign that you’re skating too close to the financial edge. The bank’s metrics that tag you ask risky may be dead on, whether you realize it or not.

More about credit scoring:

Credit scoring myths