Personal Finance

At the end of this year’s first trimester, the situation of the national real estate market seemed to present a more positive outlook than most experts, buyers, and sellers would have imagined. The more enthusiastic of them even touted words such as “boom” to describe the increase in housing prices, in the clearance rates at auctions, and, most importantly, in the levels of consumer confidence. While it would be overly optimistic do describe this mild, yet uplifting increase in overall market levels as a boom, it does indicate that 2013 might not spell disaster to the extent to which some may have originally imagined. The housing price stats at the end of February 2013 indicated  monthly increases in four of the eight capital cities, with Darwin leading the pack for its 2.3 per cent rise in prices per dwelling per month. The most significant decrease for the month was posted in Brisbane (-1.1 per cent, down to $420,000 per home, on average). Overall, however, the situation did seem positive: on average, the eight capital cities saw a .3 per cent increase in prices per month, 1.2 per cent compared to the previous quarter and 1.3 per cent on the year. Returns had also increased by 5.7 per cent, the average price was poised at $460,000 and the stats for the rest of the states (i.e. for towns other than the capital city) were also improving: 1.0 per cent on the month, .4 per cent for the quarter, and .4 per cent on the year-on-year indicator. Beyond this optimism, certain key questions persist. For one thing, though the average ratios might seem encouraging, the markets remain highly divided. Price comparisons by property type, price category, and capital cities differ widely – Melbourne alone seems to be genuinely bouncing back and going strong, with the third consecutive price increase on the month. The bottom line is that the property market in Australia is not about to experience a strong comeback on 2013, but it is most likely going to continue on its stabilizing trend. A lot has changed for the better since May of last year, when, according to one survey, property prices hit rock bottom. In the real estate market cycle, that’s also when they started making a comeback. Prices have improved by 3.3 per cent since then and that’s all because buyers are timidly, yet decidedly making their comeback to the market. ‘Timidly’, because they’re being very picky about what and where they buy: areas in Australia where there is a clear surplus in housing stocks are still languishing. The price-location ratio is still the deciding factor and, in earnest, it only makes sense that the buyers should be choosy – the market is clearly a buyer’s market. For this year, the forecast includes more growth on this mid-level segment of the market. The Bankwest Home Loans Density report has shown that though buyers are buying smaller homes for their first home, they are still buying, showing that confidence is also being propelled upward by the lending aspect of the with everyone expecting a comeback in the near future. The question that lies ahead is what’s going to happen when the mid-range segment of the market runs out of well located, fairly priced homes and apartments. The upswing in the property market cycle will also only last for so long, which adds an extra dose of pressure, especially for potential buyers in states that are riding high on the market recovery wave. The construction sector is still lingering – bad news for those who feel that the answer might just come from that direction.

Microsoft's next video game console, the Xbox One, features a built-in camera and microphone that are raising privacy concerns. But technology companies may soon build them into devices with far wider use: cable boxes.Verizon is one of several toying with the idea, The Boston Globe says:Cable and technology companies such as Verizon are trying to develop monitoring systems that would be built into cable TV subscribers’ set-top boxes or digital video recorders and use cameras and microphones to keep tabs on the movements and comments of viewers — even to the point of detecting their moods.Read 4 remaining paragraphs on MoneyTalksNews.com.

Flickr | http://www.flickr.com/photos/18090920@N07/5983965900/ Single mom Natalie Gunshannon from Pennsylvania is suing McDonald’s for paying her wages through the JPMorgan Chase Payroll Card, which charges various fees for use, ultimately resulting in Gunshannon earning less than minimum wage. ABC News reports that Gunshannon is “hoping to have her case certified as a class action on behalf of the other employees who were paid with the Payroll card.” The Chase Payroll Card currently charges a $10 inactivity fee after 90 days, a $1.50 ATM fee, and also a $0.75 per online transaction. According to the lawsuit, McDonald’s “does not provide a choice for hourly employees to receive their justly earned wages through a bank check, cash or direct deposit.” Gunshannon had allegedly asked to get her wages in the form of direct deposit, but was denied, which forced her to use the Chase Payroll Card. In addition, “A growing number of employers use payroll cards to pay some of their employers, but it violates both state and federal law to pay by payroll card alone, according to Lauren Saunders, managing attorney with the National Consumer Law Center.” A payroll card essentially functions like a debit card, but they are only offered by employers who are paying workers for their services. You cannot apply to get a payroll card, and the sole purpose of the card is for employees to deposit a worker’s wages. Employees can withdraw their money through ATMs or a cash-back purchase. However, there are fees associated with the cards, which is why Gunshannon is suing McDonald’s in the first place, because the accumulation of usage fees would bring her $7.44 hourly wage down below the Pennsylvania minimum wage of $7.25. According to an attorney for Consumers Union who was interviewed, “some employers are motivated to pay wages with these payroll cards to cut the cost of distributing paper checks.” Do you think that Gunshannon is fair to sue McDonald’s? Have you ever been paid with a payroll card? Let us know in the comments below. The Top 5 Prepaid Cards: Spring 2013 Related Stories: Comparing Bank Overdraft Fees Justin Bieber’s Prepaid Card Won’t Teach Kids About Money 10 Common Jobs with Low Pay Worker Sues McDonald’s For Being Paid Via Fee-Packed Debit Card

Pharmaceutical companies pay generic drug makers millions of dollars a year to keep their cheaper products off of the market. It's a relatively cheap way to keep prices high and maintain profits, as we've written before. The practice has been called "pay to delay."Now, because of a new U.S. Supreme Court decision, the practice could cost drug makers in ways they hadn't expected. The justices ruled 5-3 that brand-name drug companies can be sued under antitrust laws if they make such agreements, the Los Angeles Times says.The ruling will likely lead to lower prices, the newspaper says; the Federal Trade Commission has said these back-room deals cost consumers and health plans $3.5 billion a year.Read 3 remaining paragraphs on MoneyTalksNews.com.

Q: I recently tried to make an online purchase with my TD Bank debit card but it was rejected, twice. It is not a new card and there is a balance in the account. Why is my card getting declined when shopping on the Internet?- Patrick W. A: There are several possible reasons that your debit card was denied. One reason is that you’ve already hit the daily spending limit on your debit card. Banks place daily spending limits on debit cards to minimize the financial harm that can be done to your finances if your debit card is lost or stolen. On signature transactions (the type that often takes place with online purchases), TD Bank places a $5,000 daily spending limit on a regular Visa debit card or $10,000 on a Visa Platinum debit card. TD Bank customers are allowed to increase their daily spending limits by submitting a request over the phone or by secure messaging through online banking. However, unless you’ve spent that much already during the day, this probably isn’t the reason that your debit card was declined. On the other hand, it is quite common to have any card purchase rejected when the card issuer suspects an unauthorized purchase. It is a simple security measure that kicks in automatically when a purchase is unusually large or takes place at a location that is far from your place of residence. A quick call to the card issuer will lift the security block temporarily. In the most extreme scenario, your checking account was frozen without notice. There are various reasons for why the bank would do that. If your account had noticeable fraud or highly suspicious activity, the bank is likely to take such a drastic action. Again, you’d have to contact your bank if this is the case. 4 Reasons Why Your Credit Card Company Thinks Your Card Is Stolen Related Stories: Simon Says: Your Bank Account Was Labeled ‘Abandoned’ Losing Free Checking? Online Banks Offer Alternatives When the ATM Ate My Debit Card In Hong Kong Simon Says: Debit Card Purchases Can Be Denied For Many Reasons

Some people might call it frugal. I like to call it cheap. But I'm not afraid to be cheap. I hate paying something when I know that I can get it cheaper somewhere else and the last thing that I want to pay more for is life insurance. Hey, this is Jeff Rose from WiseBread.com. I want to talk to you today about getting affordable life insurance. By now you've realized the importance of buying life insurance to make sure that your family is taken care of. Cause most people don't realize that they can save tons of money on life insurance as long as they go the right direction. Even myself thought I was paying the cheapest amount and by going online I did a quick test to realize I could save over four hundred dollars a year on life insurance. So how do you make sure that you're not paying too much? Here's a couple rules of thumb to follow. Number one, make sure you're utilizing a legitimate, independent life insurance agency. So what do I mean by legitimate? Well, I come across a lot of independent agents that call themselves independent but really they can only offer one or two difference carriers. Now when I talk about a legitimate, independent agent I want an agent that can work with over thirty, forty, fifty, sixty different carriers. That way if something comes up that we need to go through a different life insurance carrier, whether it's a health condition, it could be your driving record, it could be your previous family history, all these factors will determine how much your life insurance costs but many consumers don't realize that you can go to another carrier and potentially save money. But if your independent agent is not legitimate and they can only work with one or two different carriers then you won't get that savings that you deserve. So that's what I mean by working with a legitimate, independent agent. We happen to use the croat engine here on Weissberg.com, we have over sixty different carriers that you can get a fast quote within less than one minute and in addition to those companies we work with thirty non-medical carriers that will also give you affordable life insurance. The second way that you can save on your life insurance premiums is to take care of yourself. If you have any bad habits such as smoking, chewing tobacco, maybe you drive a little bit too fast and have more speeding tickets then you should. All these factors, believe it or not, will determine how much you pay for life insurance. If you're a tobacco user you can spend on paying two to three, sometimes four times, as much than a non- smoker would pay. I once had a young father who was looking to secure life insurance to take care of his wife and his young son but I didn't realize that he chewed tobacco. He made sure to let me know before we went through the life insurance process and sure enough because he chewed tobacco he had to spend three and a half times more than somebody that didn't chew tobacco half the time. So yes, if you want to save money on your life insurance kick the bad habits, take care of yourself and that way you get cheap life insurance. The third tip to getting affordable life insurance is to shop around. If you're using a legitimate, independent agent it's not quite necessary. Unless your independent agent isn't versed in high risk conditions. So for some reason you have diabetes, high cholesterol or sometimes a pre-existing condition that could cause you to be denied, you want a qualified, independent agent that knows what their doing, that knows the best carriers to approach. The independent agent that doesn't know what their doing is going to waste a lot of your time and even worse, cost you a lot of money. So if you're thinking to get affordable life insurance coverage follow these three tips. If you have any more questions this is Jeff Rose, your life insurance expert here at WiseBread.com. Take care. ShareThisWritten by Jeff Rose and published on Wise Bread. Read more articles from Wise Bread.Do I

Single mother Natalie Gunshannon took a job at a Pennsylvania McDonald's in April, hoping to support her daughter.She quit three weeks later, when her first paycheck came in the form of a prepaid debit card, Philly.com says.She asked about getting a check or direct deposit instead, but both her supervisor and the franchise holder told her the prepaid card was the only option, Philly.com says. She quit, got an attorney, and sued.Read 5 remaining paragraphs on MoneyTalksNews.com.

Walter Mischel, a psychologist and professor at Stanford University, led an experiment in 1970 that offered a choice to small children: eat one marshmallow instantly or wait 15 minutes and receive another. Follow-up studies of the same children after 15 years showed that 100% of those who could resist temptation were wholly more successful; they had stronger relationships, better grades and SAT scores, healthier habits and higher incomes. So what, you ask? This experiment has been widely dissected over the past few decades to extract lessons that can be taught, learned and applied to people of all ages facing situations that challenge self-discipline. And because all monetary decisions require some temptation control, the marshmallow experiment will now be analyzed with you in mind: which habits can youcultivate to productively steer your financial endeavors? Don’t Go at It Alone The first suggested method is all about involving others. Choose a co-pilot for your cash; think about somebody you know and trust with incredible will power. Appoint them as your accomplice to keep your money and/or hold you accountable. You can send them money over time and agree only to take it back after achieving your goal of saving a pre-established amount. If you don’t want to involve your money directly, ask somebody to check in on you instead. Have a weekly phone call with a friend or routine lunch date with a parent. Request that they make a point of including finances in the conversation. By forcing yourself to briefly report your recent earning, saving and spending activity, you’ll stay mindfully aware of your choices and consequently be kept on track. Some variations of the marshmallow experiment were interested in swaying the results. One version of the experiment showed the subjects a video of children who could resist temptation, which caused the subjects to resist the temptation of eating the marshmallow. This proves that when in doubt, some good ol’ peer pressure might do the trick. Employ the same method for yourself by seeking out people you know to be successful and disciplined. Find out what they do and how they plan; the ideas don’t need to be your own in order to bring you success. Get Distracted Try out something called “strategic allocation of attention.” In other words, opt for the “out of sight, out of mind” coping mechanism when it comes to your money. Specialists recommend utilizing a 401(k) or similar saving techniques to hold a cut of every paycheck. Just like the kids who sang, danced, drew and paced around the marshmallow room to occupy their thoughts, forcing your money to be dealt with in a way that doesn’t require constant thought will make it easier to save. Plan Instead of spending however you feel like it as individual opportunities present themselves, create firm guidelines for the upcoming future. Give yourself a specified amount to spend and save each week and make concrete goals rather than ballpark ranges or idealistic allocations. It’s also handy to establish priorities; paying your bills on time is more time-sensitive than reducing debt, which is more relevant at the moment than funding retirement. Act Now, Enjoy Later The marshmallow experiment demonstrates how the core of success is establishing a personal promise created with the future in mind and formulated to achieve long-term goals. Think stock market investments: temporary fluctuations shouldn’t distract you from overall rises. The same can be said for retirement plans; roughly half of Americans tap into Social Security benefits at 62 when they could almost double their monthly income and increase expected lifetime payout by waiting 8 more years. This is easier said than done, but the principle is one to consider. Helping yourself takes knowing yourself. If you know you’re a marshmallow eater, find a technique that will have you waiting 15 minutes for the second one instead of succumbing to destructive habits and gobbling up the first. “Fina

As we’ve discussed before, an average American family with two children – a seven year old and a ten year old – spends $1,252 a month on food according to the USDA’s liberal food plan. If that family adopted just a few frugal practices and were able to switch their food spending to the USDA’s low-cost plan, the family is now spending just $826.60 per month on food. That simple shift results in a savings of $425.40 on food each month. I certainly don’t have to tell most of you about the power of frugality, of course. Most of you know the mountains of savings a person can incur if they’re careful with their spending. The challenge is that many people believe that a focus on investing means that you don’t have to worry much about frugality. After all, in the eyes of quite a few people out there, you simply can’t earn huge returns with frugality. So, we’re going to stick just with this $425.40 per month that you can save just via food and not even deal with the money you can save on your energy bill, entertainment expenses, household supplies, automotive expenses, and other categories each month. This is just to show how important that $425.40 is per month. For calculation’s sake, let’s remind ourselves that $425.40 per month is worth $5,104.80 over the course of a year. Now, let’s say you actually have some money to invest. You took that money and did the obvious thing with it and stuck it into a very broad based index fund – the Vanguard Total Stock Market Index. Since 1992, this fund has returned 9.02% annually, which is a very nice return. That’s the easy route – anyone could do this. Now, let’s say hypothetically you could spend ten hours a week focusing on investing strategy and find a way to earn 10.02% annually. If you were actually able to consistently beat the total stock market index by 1% year in and year out, you would be a total financial genius and ought to be working on Wall Street, but I’m trying to give investments the benefit of the doubt. How much money would you have to have in investments to make those ten hours a week spent on investment management worth more than the ten hours a week spent on frugality? Your target additional earning here is $5,104.80 – except, it’s actually more than that. If you’re investing these sums of money, you’re almost assuredly in the 33% tax bracket, so the amount we’re actually looking at is $7,657. Remember, money saved via frugality isn’t money you have to pay income taxes on. So, how much money would you have to have invested in order to earn a $7,657 annual return by beating the Total Stock Market Index by 1% instead of just investing in it? The answer is $765,700. If you have three quarters of a million dollars in your investments and you have the ability to find a way to consistently beat the market by 1% a year, only then can you earn as much via investing as you can via simple frugality. Given that 72% of American households live paycheck to paycheck, I think it’s pretty safe to say that the vast majority of American households don’t have three quarters of a million dollars laying around to invest. I’m not saying that investment is a worthless thing to think about. What I’m saying is that for most American families in their current situation, a focus on frugality is going to earn them much greater returns than investments will, and that statement will hold true for many years. If a family is very responsible with the money they save from frugality and use it to pay off debts and invest instead of finding other methods to inflate their lifestyle, then they will reach a point where investments matter more. The truth is that it’s only a tiny minority of Americans have enough liquid wealth on hand to make their time spent managing investments worth more than their time spent being frugal once

June 18th is National Splurge Day, a day dedicated to throwing caution to the wind and getting yourself something nice. After all, what good is all the financial restraint in the world if you never get to enjoy the fruits of your labor? National Splurge Day is a day for you to give yourself something nice. However, we believe it’s important that you treat yourself, not cheat yourself. Here’s an unofficial guide on how to go (just a little) overboard on National Splurge Day. Leave Your Savings Alone If you want to participate in National Splurge Day without messing up your financial future, stay away from your savings account. Instead, use some extra money that you have kicking around in your checking account. Your savings should be for emergencies only and as much as we might like for it to qualify as one, National Splurge Day in not a financial emergency. Set a Budget Everything should be budgeted, including splurging on yourself. Figure out just how much you can afford to frivolously spend, then stick to that number and don’t go over it. This might undercut the frivolous nature of National Splurge Day, but it’s not worth worrying about how you’re going to pay your bills this month (or next). Think About What You Want Over the course of a year there are probably fifty things that you want to buy yourself but don’t think you should spend the money on. Before you hit the mall this National Splurge Day, give a good amount of thought about what you want to spend the money on. Go over the things that you’ve thought about buying over the course of the year. Now decide which of them you can afford based on your budget. Putting some thought into your purchase will make National Splurge Day all the more rewarding. An addendum to this: Go for something you want, rather than something you need. A new radiator is an emergency, something that you can dip into your savings account to buy. A new set of stereo speakers is more what you’re in the market for on National Splurge Day. Pick Something That Will Be Fun All Year A high-priced meal out might be just what you think you want, but once it’s in your belly, the thrill is gone. Try to aim for things that are more lasting, things that you can look at and use throughout the year. Look at the list of things that you wanted to splurge on. Now pick the single item you think you’re going to get the most enjoyment out of on a regular basis. When you take the price of something and divide it by the number of times that you’re going to use it, you get closer to a truer approximation of its actual value to you. Go Big Don’t spread your splurging out. It creates a bad habit of spending money on things that you don’t really need. Instead, spend the entire budget on the one big item that you really want. This will help you choose something that’s really going to make a difference in your life. In keeping with the last point, what are you most likely to remember? Ten small, relatively cool things or one simply spectacular thing? Be Selfish Now is not the time to buy the high-powered juicer that you and your partner would like to get as a joint purchase. It’s the time for you — both of you — to get something that’s very important to you as an individual. Splurging always has an element of selfishness to it. So when it comes around this year, split the budget in two and let each of you get something extravagant rather than going in on something together. “The Unofficial Guide to National Splurge Day” was written by Nicholas Pell.