You’re not supposed to spend money you don’t have. But this is what you’re doing when you buy something with a debit card and don’t have enough in your bank account to cover the tab—in other words, an overdraft. Since banks make money when their customers spend money they don’t have, the banks basically encourage customers to do …
“So many of the problems that we see had to do with the fact that just basic calculations about compound interest and — and what that means, you know, kids aren’t taught that. And so what I’m doing now with Malia and Sasha is, you know, they’re getting an allowance. They’re starting to get old enough where they may be able to earn some …
OK, so this guy may qualify as an Illogical Rationalizer, the type of consumer who spends money with the sometimes-dubious rationale that it’ll save him money in the long run. But you gotta love a guy who has the stones to try to beat the system by impulsively purchasing $820 in postage stamps.
Last year, 80% of Americans believed that college was a good financial investment. Now, results from the same survey show a sharp drop in confidence in the rewards of higher education, with only 64% of people saying that college is a good investment.
“If you’re a restaurant and you can’t charge for the soda, you’re going to charge more for the burger … Over time, it will all be repriced into the business.”
Some Bank of America customers in Georgia must decide just how badly they enjoy getting monthly account statements in the mail—because the fee for this basic service has gone from $0 to $8.95 a month.
“10 years ago, there weren’t many other choices for banks. Like a short, fat guy with no social skills, you took what you could get. But now, things have changed, and our short fat guy has turned into a prince with lots of options.”
“The trick is to just make sure you’re not spending a lot of money on stuff you don’t use or appreciate very often.”
If you’ve got a mortgage of $1 million or above, you’re significantly more likely to be delinquent with payments compared to homeowners under the $1 million mortgage mark. Why are the wealthy falling behind or walking away from their mortgages? “The rich are different: they are more ruthless,” says one economist who helped compiled the data.
On the morning of the Fourth of July, an incident occurred in my kitchen that first caused me great aggravation—and that later, after I’d had a cup of coffee and could view the situation with some perspective, gave me reason to smile and give myself a little pat on the back. So what happened?
Also: Is it better to invest or pay off your mortgage early? Is Hulu Plus worth the $10 a month they’re asking for it? Are you paying too much in property taxes?
Also: stuff you should never pay for, including certain insurance policies, brand-new technology, checking accounts, and ridiculous plastic surgeries. Cankle liposuction anyone?