Summary of “When It Pays to Bend Financial Rules”

Rule 2: Don’t spend more than half your budget on living expenses.
One often-quoted formula suggests spending no more than 50% of your take-home pay on necessities, dedicating 20% to savings and debt and maxing out at 30% for lifestyle expenses.
If you neglected your retirement accounts in your younger years, you’ll need to save more in your forties and fifties to catch up, says Miguel Gomez, a certified financial planner in El Paso, Texas.
Getting mired in high-interest debt could call for using more than 20% of your income to pay it off.
For a happy medium, “Buy in bulk what you consume on a frequent basis, then plan more shopping for the short term,” Ligon says.
If you’re set on buying, note that the general rule about staying put for at least five years to recoup the buying and selling transaction costs isn’t true in every metro area.
Investing the same amount of money in the same securities on a regular basis is a safe way to play the markets because you’re buying more shares when prices are low than when they are high.
When to break it: Research shows that investing a lump sum all at once often pays off in the long run.

The orginal article.

Summary of “The Extortion Economy: How Insurance Companies Are Fueling a Rise in Ransomware Attacks”

“At the end of the day, it really boils down to a business decision on the insurance side of things: them looking at how much is it going to cost to fix it ourselves and how much is it going to cost to pay the ransom.”
As insurance companies have approved six- and seven-figure ransom payments over the past year, criminals’ demands have climbed.
Still, many public agencies are delighted to have their insurers cover ransoms, especially when the ransomware has also encrypted backup files.
Not all cyber insurance policies cover ransom payments.
After a ransomware attack on Jackson County, Georgia, last March, the county billed insurance for credit monitoring services and an attorney but had to pay the ransom of about $400,000, County Manager Kevin Poe said.
The proliferation of cyber insurers willing to accommodate ransom demands has fostered an industry of data recovery and incident response firms that insurers hire to investigate attacks and negotiate with and pay hackers.
New York-based Flashpoint also pays ransoms for insurance companies.
Over the past year, unknown attackers using the Ryuk strain have besieged small municipalities and technology and logistics companies, demanding ransoms up to $5 million, according to the FBI. Shortly after realizing it had been attacked, Lake City contacted the Florida League of Cities, which provides insurance for more than 550 public entities in the state.

The orginal article.

Summary of “I Made One Simple Financial Change and It Lowered My Spending”

The idea is to increase the pain of paying, especially with a credit card, by forcing myself to take note of what I’m spending.
Looking back at my bank-account statements from the past few years, I can see that my monthly discretionary spending dropped somewhere between 10 and 15 percent in the five months after I introduced this system.
Perhaps the more definitive success of my system is the fact that, even as I have begun to earn more money, my monthly spending has remained more or less the same-a fact that I attribute in part to the increased clarity of my cash flow.
“Making a list of spending is very useful,” he told me, and said I’d successfully devised a way to increase my pain of paying.
Another thing to consider when making spending decisions, Ariely says, is what one could be buying instead with the same money.
The conventional way of thinking about budgeting, he says, usually “Puts a lot of blame on people when they’re spending money on things that give them pleasure. There’s a sort of puritanical aspect, like, I caught this person going to Starbucks.” He continued, “I think the real goal of budgeting is to make sure that you’re spending your money on the things that are the most valuable and enjoyable for you.” He also made the point Loewenstein did about “Big-ticket items,” but said he thinks my system is a good way to make sure someone’s nonessential spending goes toward things they enjoy.
Hearing all this feedback about my personal-finance system made me a bit discouraged about the dynamics that shape spending.
What would create such a culture? There is the Consumer Financial Protection Bureau, which provides high-level government oversight, and there are small individual actions, but there isn’t something in between-a powerful advocacy group, a mainstream cultural movement, or something else not yet built or imagined-that serves as a counterweight to the pressure on Americans to spend.

The orginal article.

Summary of “Retirees, Create a Plan to Pay for Dental Care”

Often, after a lifetime of employer-sponsored dental coverage, some retirees don’t realize the costs and complications of paying for care.
You’ll most likely pay out of pocket for larger procedures such as root canals, says Judith Jones, a professor at the University of Detroit Mercy School of Dentistry and an expert on geriatric dental care.
“You may think, ‘Well, I’ve always brushed my teeth since I was a kid,'” and you’ll only need annual cleanings, says Evelyn Ireland, executive director of the National Association of Dental Plans, which represents the dental benefits industry.
Once you’ve estimated your care needs, decide whether paying for care yourself will be cheaper than your other options-buying an individual insurance plan or paying a membership fee for a plan that gives you discounts on dental procedures.
Some dental plans will cover all preventive care and up to 70% to 80% of basic services, such as fillings.
Keep in mind that individual dental insurance typically isn’t set up to cover more extensive dental work, because of annual limits on what the plan pays.
After paying so much out of pocket for her recent procedures, O’Brien is switching from traditional Medicare and her individual dental plan to a Medicare Advantage plan that allows her to add on dental coverage, with a maximum coverage limit of $2,000.
Her new overall monthly premium starting this month totals about $47-only $11 more a month than she was paying for dental coverage alone and with a higher dental coverage limit.

The orginal article.

Summary of “How I’m paying off $53,000 in student loan debt”

Warren’s proposal, for example, would cancel $50,000 of student loan debt for families with a household income of less than $100,000.
Sanders, on the other hand, wants to eliminate all student loan debt regardless of income.
College graduates often believe it will only take them a few years to pay off their loans, but data from education tech company Cengage indicates that it takes borrowers two decades on average to rid themselves of up to $40,000 in student loan debt.
We asked some millennials how they manage their student loan debt-if they’re paying their loans back at all-and how those payments have impacted their finances.
“I started reading financial blogs and saw that people were paying off their student loan debt and living the life that they wanted to live.”
Ler believes that paying off student loan debt under $100,000 is within reach for many people.
Part of the reason Simil hasn’t paid off more of her student loan debt is that she isn’t motivated to set aside more than $400 each month for the government.
Despite working in finance, Haque says he didn’t have a grasp on how interest was applied to his student loan debt.

The orginal article.

Summary of “The Way American Parents Think About Chores Is Bizarre”

Kids are usually not receiving money for nothing-the vast majority of American parents who pay allowance tie it to the completion of work around the house.
Parents’ preference for this setup has spawned an array of apps that let them dole out allowance money once chores are completed, and even pay for an individual chore.
Homey, an app that’s effectively a digital chore chart, allows parents to issue payouts upon visual confirmation of finished chores and is used by 100,000 families.
The way chores work in many households worldwide points to another way, in which kids get involved earlier, feel better about their contributions, and don’t need money as an enticement.
Kids should do chores, he writes, “For the same reason we do-because the chores need to be done, and not with the expectation of compensation Allowance ought to stand on its own, not as a wage but as a teaching tool.”
Considering the way chores are undertaken around the world, it might be the allowance-earners who are the strange ones.
David Lancy, a former professor of anthropology at Utah State University, has studied how families around the world handle chores, and he has observed a development of responsibilities in less well-off societies that looks little like the American way.
In an email, he made clear how this contrasts with American norms: “In our society-and I’d extend this to most modern, post-industrial nations-we actually deny our children’s bids to help. We distract them with other activities, we do our chores when they’re napping, we convey that their ‘helping’ is burdensome and, not surprisingly, the helping instinct is extinguished. Hence, at 6 or 7 when we think they’re ready to start doing chores or at least taking care of themselves and their ‘stuff,’ they’ve lost all desire to help out.”

The orginal article.

Summary of “The Way American Parents Think About Chores Is Bizarre”

Kids are usually not receiving money for nothing-the vast majority of American parents who pay allowance tie it to the completion of work around the house.
Parents’ preference for this setup has spawned an array of apps that let them dole out allowance money once chores are completed, and even pay for an individual chore.
Homey, an app that’s effectively a digital chore chart, allows parents to issue payouts upon visual confirmation of finished chores and is used by 100,000 families.
The way chores work in many households worldwide points to another way, in which kids get involved earlier, feel better about their contributions, and don’t need money as an enticement.
Kids should do chores, he writes, “For the same reason we do-because the chores need to be done, and not with the expectation of compensation Allowance ought to stand on its own, not as a wage but as a teaching tool.”
Considering the way chores are undertaken around the world, it might be the allowance-earners who are the strange ones.
David Lancy, a former professor of anthropology at Utah State University, has studied how families around the world handle chores, and he has observed a development of responsibilities in less well-off societies that looks little like the American way.
In an email, he made clear how this contrasts with American norms: “In our society-and I’d extend this to most modern, post-industrial nations-we actually deny our children’s bids to help. We distract them with other activities, we do our chores when they’re napping, we convey that their ‘helping’ is burdensome and, not surprisingly, the helping instinct is extinguished. Hence, at 6 or 7 when we think they’re ready to start doing chores or at least taking care of themselves and their ‘stuff,’ they’ve lost all desire to help out.”

The orginal article.

Summary of “When It Pays to Bend Financial Rules”

Rule 2: Don’t spend more than half your budget on living expenses.
One often-quoted formula suggests spending no more than 50% of your take-home pay on necessities, dedicating 20% to savings and debt and maxing out at 30% for lifestyle expenses.
If you neglected your retirement accounts in your younger years, you’ll need to save more in your forties and fifties to catch up, says Miguel Gomez, a certified financial planner in El Paso, Texas.
Getting mired in high-interest debt could call for using more than 20% of your income to pay it off.
For a happy medium, “Buy in bulk what you consume on a frequent basis, then plan more shopping for the short term,” Ligon says.
If you’re set on buying, note that the general rule about staying put for at least five years to recoup the buying and selling transaction costs isn’t true in every metro area.
Investing the same amount of money in the same securities on a regular basis is a safe way to play the markets because you’re buying more shares when prices are low than when they are high.
When to break it: Research shows that investing a lump sum all at once often pays off in the long run.

The orginal article.

Summary of “The Cheapskate’s Guide to Retirement”

You may be well prepared financially for retirement when it comes to all the big-ticket items, such as your investments or your housing expenses.
You can’t control the uncertainty of the markets, and the adjustment from having a salary to drawing down retirement accounts that you worked so hard to accumulate may be unsettling, says Sarah Asebedo, president of the Financial Therapy Association, which represents financial planners and mental health professionals.
Now is a great time to trim the fees you pay for financial services, with fund companies competing to cut costs on products and services.
If your current circle of friends can afford extravagant trips or expensive meals and you can’t, you’ll feel pressured to overspend, says Paula McMillan, a senior financial adviser with Stearns Financial Group, in Greensboro, N.C. Another area to get a handle on is requests for help from family and friends, says financial planner Rick Kahler, president of the Kahler Financial Group, in Rapid City, S.D. Kahler says such requests are a common money worry for his clients.
Find Your Inner Cheapskate After you’ve gotten a handle on your spending and whittled unnecessary costs, start implementing some practical cheapskate strategies in your everyday life.
If you’re thinking of moving in retirement, such long-term rentals can help you determine whether you’d be comfortable in a community well before you plunk down a major chunk of your retirement money on a second home, Kahler says.
A big move some retirees have made to cut costs: retiring abroad. Ecuador has a much lower cost of living than the U.S., which was a draw for Edd and Cynthia Staton, who moved there from Las Vegas nearly a decade ago.
Paying out of pocket for a doctor’s visit costs from $30 to $40. “Pretty much everything here is cheaper,” Edd says.

The orginal article.

Summary of “24 Side Hustles and Ways to Make Money at Home”

According to a 2018 survey conducted by Bankrate, more than half of millennials are figuring out how to make money at home by embracing a side hustle – also known as extra cash to help pay off debt.
If you’ve got a flexible schedule, “Side hustles can be a great way to achieve a financial goal,” says Shannah Compton Game, MBA, a certified financial planner and host of the Millennial Money podcast.
You’ve probably seen opportunities from universities looking for paid study participants, but it turns out you can make money that way from home too.
“I know people who are Airbnbing rooms in their house and making enough money every month to cover their mortgage, which is amazing because then they can use that money toward other goals,” Game says.
Just like Airbnb for an apartment, renting out your car a few days a month could make enough money to cover your payments on it.
To make some extra money from home while also connecting with others, consider applying to make phone calls reminding seniors to take their medication through Pleio.
Looking for side gigs on sites like FlexJobs, Upwork, and Fiverr can really pay off.
Sites like InboxDollars will pay you to fill out surveys.

The orginal article.