Personal Finance News

You probably heard about these personal finance superstars: Dave Ramsey, Mary Hunt and Suze Orman. They publish books, send out famous checklists and trademark baby steps, but is it really a smart idea to follow the advice of a budgeting superstar? The answer is yes and no. During the “accumulation” phase of life, it’s a good idea to follow the advice from these personal finance superstars since the basic concepts of eliminating debt, saving for an emergency fund and investing for retirement are universally accepted as sound financial practices. Those with significant income or unusual financial situations are best to follow personalized advice, rather than the generic financial advice. “Celebrity financial advice might motivate some people to get out of debt and start investing, but it certainly won’t work for every situation. The key is to find the method that has you taking action for a financially secure future.” (usnews.com)

One Cent at a Time writes: “When it comes to car insurance, you have a lot of choices and Car Liability Insurance Coverage is one of them. Since you have many choices, you should know as much as possible to decide on the coverage. You should know the facts and myths so that you can make informed decision.” Both property damage liability and bodily injury liability are discussed. As usual, the level of coverage and the amount of deductibles depends on your circumstances. By understanding these helpful facts on car liability insurance coverage you can make the best choice in your situation. Once you decide on your insurance coverage, here are 5 car insurance companies to consider. (onecentatatime.com)

Too much spoiling can lead a young person to suffer from affluenza.  That’s the case for an American teenager Ethan Couch, who killed four people on June 15, 2013 while recklessly driving drunk . His lawyer argued that he’s unable to understand the consequences of his actions because of his financial privilege. Instead of prison, Couch got 10 years of probation and rehabilitation to treat his affluenza. After violating the term of his probation, he fled to Mexico then he got caught. Currently, Couch remains in jail in solitary confinement. Soon Couch will be transferred to the adult court to face the consequences, and he could get more jail time. (reuters.com)

Economic Policy Institute writes: “Social Security is the nation’s most successful anti-poverty program and it remains a fundamental pillar of the American economy—one that is critical to the long-term economic security of today’s young people. The National Academy of Social Insurance (NASI) and EPI just released an updated and revised version of A Young Person’s Guide to Social Security, a comprehensive 60-page guide written by young authors for students and young workers.” If you wonder if Social Security is broke or it’s a giant Ponzi scheme, fear not. “The program’s financial status can be summed up in one sentence: Social Security’s projected shortfall is 2.68% of taxable earnings over the next 75 years.” So eventually you will receive some amount when the time come. (epi.org)

Mixing friendship and money can test even the strongest bond. Miriam Cross has great advice on how to handle money issues between friends. “If, after careful consideration, you’re still uneasy about lending the money, phrase your refusal politely but without leaving room for negotiation or delving into the details of why you’re saying no. Pamela Eyring, president of the Protocol School of Washington, suggests saying something like ‘it’s my personal policy not to lend money to friends or family’ or ‘I’ve had bad experiences with ruined friendships, and I don’t want that to happen to us.’ Then brainstorm other ways your friend could come up with the cash—say, by referring him to a freelance job or showing him how to sell on eBay. If you decide to lend the money, insist that you both sign a promissory note. Explain to your friend that clarifying the terms of repayment on paper will help preserve your friendship.” (kiplinger.com)

Copying from the “gym model,” companies have set up unlimited flights for a single monthly fee, typically about $2,000 a month or less. This model has not gone mainstream yet. If you want to travel around the U.S. as often as you like there are four choices: OneGo, SurfAir, Rise and Beacon. These four companies offering unlimited flights for less than $2,000 a month, but make sure you know their rules. to take full advantage.

Chris Morran writes on Consumerist: “According to the latest YouMail National Robocall Index, some 2.3 billion robocalls were placed in January alone. That comes out to around seven robocalls for every single person in the country, or 858 robocalls placed every second of every day.” Most of these robocallers are calling to collect debts. In fact, out of 20 most frequent robocallers in the January Index, 15 of them were debt collection calls with approximately 175 million calls in a month. That’s a lot of annoying, unwanted pre-recorded calls. (consumerist.com)