An interesting article regarding the effect of credit card spending, this study indicates that using a credit card changes our perception regarding the value of the goods we are purchasing.
While I'm waiting for studies as to the debit card effect, I thought the discussion of other payment systems, i.e. Google Wallet and smart phone apps, intriguing. I have one click purchasing set up through Amazon.com for my Kindle and it is, indeed, very easy and painless for me to buy e-books. My book buying expenses went way, way up when I got my Kindle.
Thursday, November 17, 2011
Tuesday, November 8, 2011
2011 Goals - November Update
(1) Max out 401k(s) - $25,942 (79%)(goal is $33,000)
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $9,600 (96%)(goal is $10,000)
(4) Pay down mortgage - $4,150 (83%)(goal is $5,000)
(5) House projects - $2,109 (42%) (goal is $5,000)
Total - $51,801 (82%)
We are behind by about $2700.
(2) Max out IRA(s) - $10,000 (100%)(goal is $10,000, this goal is completed)
(3) Add to e/r fund - $9,600 (96%)(goal is $10,000)
(4) Pay down mortgage - $4,150 (83%)(goal is $5,000)
(5) House projects - $2,109 (42%) (goal is $5,000)
Total - $51,801 (82%)
We are behind by about $2700.
Mortgage Numbers
We have completed the refinance of rental property #1, interest rate has gone from 6+% to 4+%, we were pleased we were able to refinance this property since, due to the value, we will be holding onto it for some time.
We rolled the closing costs into the loan for rental property #1, so the mortgage balance went up. As it presently stands, our total investment property mortgages total $328,391. Our total debt is at $597,728 and that means that we have met our 2011 goal of getting our debt under $600,000 (even with the refi).
We rolled the closing costs into the loan for rental property #1, so the mortgage balance went up. As it presently stands, our total investment property mortgages total $328,391. Our total debt is at $597,728 and that means that we have met our 2011 goal of getting our debt under $600,000 (even with the refi).
Wednesday, November 2, 2011
Yeehaw!
With the recent stock market bump, we are back up above the million dollar mark for our networth.
I do like seeing that number, provides positive feedback for all hard work and sticking to our allowances, etc. I also recognize it does not mean much since any profits are paper profits at this point.
I do like seeing that number, provides positive feedback for all hard work and sticking to our allowances, etc. I also recognize it does not mean much since any profits are paper profits at this point.
Tuesday, November 1, 2011
Banks Back Down on Debit Card Fees
As an avid debit card user, I'm happy to see that most of the big banks, including our bank Wells Fargo, have backed down on the plan to charge customers for using their debit cards.
Hooray!
Hooray!
Thursday, October 27, 2011
Debit Card Shell Games
Previously, I posted about the ongoing issues with some banks now charging for debit card use allegedly due to the cap on swipe fees. I've been continuing to follow the news since we are a debit card family.
Back during the debate on swipe fees big retailers, like Wal-Mart and 7-11, promised that prices would be lowered if swipe fees were capped. That promise has not been fulfilled because the new swipe fee caps don't apply to credit cards nor do they apply to debit cards from smaller banks. Credit cards, especially reward credit cards, have very high fees for retailers and those fees are not limited by the swipe fee cap. So how would a retailer pass on the savings? Well they could provide a discount for using cash, since the Dodd-Frank act passed it has been legal for retailers to charge a different price for those willing to pay cash, but so far I've not seen any cash pricing except on gas. It is understandable that retailers wouldn't want the hassle and the cost (yes there is a cost) of having two prices.
So now come the banks, the big banks, who are starting to charge for debit card use and, according to this article, pushing people back to credit cards. Eeeek! Why would banks push consumers to credit? Well, as explained above, there is no cap on the swipe fees, rather retailers are charged a percentage of the purchase price. If you are using a great rewards card, the retailer is charged more. Plus the banks earn interest and fees on credit cards. While there are lots of responsible people who pay their credit card bills in full each month, 46%. according to a Consumer Reports article (sadly could not find link) carry a balance.
What are you going to do if your bank starts charging for debit card use?
Back during the debate on swipe fees big retailers, like Wal-Mart and 7-11, promised that prices would be lowered if swipe fees were capped. That promise has not been fulfilled because the new swipe fee caps don't apply to credit cards nor do they apply to debit cards from smaller banks. Credit cards, especially reward credit cards, have very high fees for retailers and those fees are not limited by the swipe fee cap. So how would a retailer pass on the savings? Well they could provide a discount for using cash, since the Dodd-Frank act passed it has been legal for retailers to charge a different price for those willing to pay cash, but so far I've not seen any cash pricing except on gas. It is understandable that retailers wouldn't want the hassle and the cost (yes there is a cost) of having two prices.
So now come the banks, the big banks, who are starting to charge for debit card use and, according to this article, pushing people back to credit cards. Eeeek! Why would banks push consumers to credit? Well, as explained above, there is no cap on the swipe fees, rather retailers are charged a percentage of the purchase price. If you are using a great rewards card, the retailer is charged more. Plus the banks earn interest and fees on credit cards. While there are lots of responsible people who pay their credit card bills in full each month, 46%. according to a Consumer Reports article (sadly could not find link) carry a balance.
What are you going to do if your bank starts charging for debit card use?
Friday, October 21, 2011
401k Changes
The maximum amount one can contribute to a 401k is increasing from $16,500 to $17,000 in 2012. If you max out your 401k, you'll need to make a contribution adjustment in January to increase your contributions.
Friday, October 14, 2011
One Day Left
If you requested an extension from the IRS to file your 2010 taxes then you are running out of time, the deadline to file, with an extension, is Monday October 17, 2011.
I mailed out our taxes yesterday, so we are a whole two (2) days ahead of schedule. Unfortunately, we owed money to Uncle Sam, but we did not owe as much as last year. My goal is to owe Uncle Sam, but to owe him less than a $1000, because owing more than that throws off our monthly budget.
We ended up using our same CPA because we ran out of time. If you've read this blog long enough, you'll remember that we were audited in 2010 and said audit and IRS liability was the result of mistakes made by our CPA. As a result, one of our goals for 2011 was to interview and hire a new CPA. That is still a goal, we have two names of possible CPAs and we need to get going and interview folks and hire someone new. But, we were too late in the game to get that done this year.
I mailed out our taxes yesterday, so we are a whole two (2) days ahead of schedule. Unfortunately, we owed money to Uncle Sam, but we did not owe as much as last year. My goal is to owe Uncle Sam, but to owe him less than a $1000, because owing more than that throws off our monthly budget.
We ended up using our same CPA because we ran out of time. If you've read this blog long enough, you'll remember that we were audited in 2010 and said audit and IRS liability was the result of mistakes made by our CPA. As a result, one of our goals for 2011 was to interview and hire a new CPA. That is still a goal, we have two names of possible CPAs and we need to get going and interview folks and hire someone new. But, we were too late in the game to get that done this year.
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