News: Smoking Less Still Kills You

According to a Norwegian study reported by HealthDay News, those who smoke less than others did not lower the risk of early death due to smoking. Basically what they are saying from this study is that if you smoke, whether it's moderate or heavy, the chances of early death due to smoking is about the same.

To me, this is an important study and I'm glad they made this discovery. Why? Because people have this misconception that smoking a little doesn't affect you as much as those who smoke heavily. SMOKING IS SMOKING. You are inhaling smoke into your lungs...there are no ifs, ands, or butts (pun intended) about it. This should serve as a HUGE warning to those who smoke and care about their lives.

The article also reported that "limiting the daily amount of cigarettes may be useful as a temporary measure when a smoker is trying to quit, but kicking the habit is the only real way of reducing the risk of smoking-related health consequences and early death". I hope those who smoke and are concerned about their health realize this. I'm sure it is very difficult to quit cold turkey (as told by friends who smoke), but you should only be proud if you reduce the number of cigarettes you smoke a day if your goal is to entirely quit. If it isn't, you aren't doing yourself much of a favor. Kick the habit...it just isn't worth it.

How To (Money): Reduce Debt/Loans Slowly But Surely

Debt and loans plagues just about everyone these days. Whether they are credit card payments, school loans, or that new condo you just purchased...somehow, someway, there is a payment that must be made. Here are some simple ways to reduce your debt, and begin to pay off everything sooner and more efficiently.

1. Organize your payments. Pull up an Excel sheet and list your payments in its entirety from the smallest to the largest amounts that you owe. This is so you can visually see what you have to owe and how much. Next to the column of loans, list the minimum payment next to each payment.

2. Calculate how much money you have after you pay the minimum for each payment. Then, using that amount, decide how much money you have left after paying your regular bills, rent, food, etc. Lastly, from the last amount, subtract the amount you put away into your savings, 401k or similar retirement fund, IRA, etc. Record this final amount and move on to step 3.

3. Take the amount you have left from step 2 and use all of it to pay the smallest payment you owe (listed at the top of your organized Excel sheet from step 1). If the minimum payment is $20/month and you can afford $100, pay $100 per month for that payment. For the rest of the payments, pay the minimum amount. This way, you'll be able to get rid of the smallest payment as quickly as possible and continue to work on the other payments.

4. Work your way down the list and repeat steps 2 and 3 after each payment is completely paid off or if you get extra money from gifts, raises, bonuses, etc.

If you pay the minimum for every payment, you are paying all that extra interest for each payment, which is how they earn their money and where you waste more money...this is the sole reason why your debts and loans never seem to end!!! The faster you get rid of one ENTIRE payment, you don't have to owe interest on that payment anymore, which in turn saves you more money. The reason for getting rid of the smallest payment first is because the sooner you get rid of one payment, you don't have to owe interest anymore to that payment. Since the smallest payment will get paid off sooner (provided you pay more than minimum), you are shortening your interest costs to the other payments because you'll be able to attack the next payment after the smallest payment is paid off. If you try to pay off the largest payment first, it will take you a longer time, and in the mean time you are extending your interest costs to the other payments.

Try this out, and soon you'll be watching your debts and loans vanishing before your eyes.

Random Tips: Get Credit for Dropped Calls (for Sprint customers only)

*For Sprint customers only*

I firmly believe that if we pay a certain amount for a service, we should fully receive what we pay for. So why is it that when we get dropped calls when using our cell phones, we don't get anything back? I mean after all, we shouldn't be paying for those minutes we are wasting when the call gets dropped. It becomes even more personal when the call that is dropped is an important call. I know everyone gets irritated with dropped calls, such as an article I read on Elliot.org. Sprint has addressed this issue by allowing you to receive credit for your dropped call. Here are the steps:

1. Dial *2.
2. Press 1 for english or 2 for spanish.
3. When the virtual representative Claire prompts you, tell her "credit for a dropped call" or "dropped call credit". You should receive a credit for 50 cents for each dropped call.
4. Hang up.

It's that simple.

The limit of credits you can receive within one billing cycle is $10. That equals to 20 dropped calls. Sprint has enforced this crediting for dropped calls because customers used to take advantage of it, ie. asking for a dropped call credit 20 times in one day, whether they get a dropped call or not. Now you can call in for 2 dropped call credits a day, and if you ask for credit again, you will be transferred to a live technician...and we know how that goes...it goes nowhere.

Another thing to know is that you don't have to ask for the dropped call credit immediately after your dropped call. Sprint technicians will tell you that wherever you dial *2, they will know the location from which you called from, which should help them locate the area with apparently poor reception. But chances are, you are probably more concerned about calling the person back after the dropped call than calling for the credit. They also don't record if you actually receive a dropped call or not. Even if you never received a dropped call, you can still obtain the credit for it as long as you call in.

Personally, I say don't take too much advantage of this crediting service because they might make it harder for those who legitimately want credit back for dropped calls. If you do get dropped calls, make sure to follow the steps above, because after all, you deserve the credit.

News: WARNING! SHRED Your Credit Card Applications!

I was in shock one morning as I was watching the news and one reporter decided to mail in 5 credit card applications. Doesn't sound too shocking until you discover that she tore up each application, much like we do to prevent others from filling it out to obtain a credit card in our name, and taped it back together before filling it out. To my horror, 3 of the 5 credit card companies sent her a credit card. One credit card company even sent the credit card to another address that she had listed, where she had never lived before. You can read a similar story at The Red Tape Chronicles, which was reported on MSNBC and at Cockeyed.com.

So what do we need to do? First off, we have to be more careful. Yes, we receive those credit card applications like nobody's business, and we maybe tear it up once, maybe twice, before throwing it in the trash. I mean, which credit company in their right mind would accept a ripped up then taped up credit card application? Apparently, some credit card companies do, and they even include the largely popular credit card companies as well. Bottomline, you aren't safe by merely tearing up your credit card applications. Your best bet is to invest in a shredder. You can buy a basic shredder for $15 from stores like Office Max, Office Depot, etc. It might be the most important $15 investment you ever made.

How To (Cars): Tips to Purchase a New Car

It seems like everyone tends to dislike car salesmen. I for one, think to seem they are OK (maybe it's just the Hawaii dealerships...but trust me, some places are just darn rude), because no matter how irritating they may be, and how much you think they are trying to rip you off, they are trying to make money because it's their job. The better our deal, the less they make. But for the most part, it's the way that car salesmen deal with the final cost of the car that irritates people. We all know the drill. They are usually really nice to you in the beginning, then when you finally "sit down" to talk about purchasing the car, they never seem to let you go (the way I deal with this is to simply stand up and walk away, despite what they are saying to you...hey, if they can be rude to you, you can do the same to them). Then when you DO sit down, they walk back and forth to try and get the price to what "you" want...which basically translates to how much profit they can make off of you. So what do you do? BUY FROM COSTCO. More on this later...in the mean time, here are a few things you need to know when purchasing a car (if you have a Costco membership, you can skip straight to step 4...reading the other steps won't hurt though):

1. PAY ATTENTION TO THE FINAL COST ON THE STICKER. This is where they get you. First, look at the MSRP...that stands for the Manufacturer's Suggested Retail Price. This translates to how much the car is worth and what the automaker thinks you should ultimately pay for the vehicle. THIS PRICE IS YOUR BASELINE (minus options). If there are options that you want, check that the cost of the options are added, but NOTHING ADDTIONAL is added. Car dealerships tend to add an additional cost usually called "adjusted market value". That usually means "we want to add this cost to the car because we want to make money off of you". I've seen this add somewhere between $2500-4000 on top of the MSRP. THEY ARE RIPPING YOU OFF if you pay for this extra cost. Under NO circumstances should you pay anything above the MSRP. I don't care WHAT reasons they give you, do not pay anything over the MSRP. Some reasons they use to justify the addtional cost are as follows: this car is in demand, so we have to add an additional cost to it; they don't make many of this particular model, so the additional cost is added; we had to ship the car from Japan, so the additonal cost brings the car over here; every dealership does this.

For example, let's say the car is $30,000, and their "adjusted market value" is $3000, which brings the total sticker to $33,000. If you sit and deal off $1000 to bring the total cost to $32,000, they might tell you that's as low as they go and you may have gotten a good deal. Sounds good right? Well, they trick you by making you believe that the car costs $33,000 when it actually costs $30,000, so you just gave them an addtional $2000 without knowing it. Bottomline, don't pay over the MSRP.

2. Deal between the invoice and MSRP. The invoice price is what the dealer paid for the car. Let's use the 2006 Infiniti G35 as an example. The invoice price is $28,701 and the MSRP is $31,200. That's about a $2500 difference, allowing the dealership to make $2500 if you don't deal, and somewhere between $0 and $2499 if you work out a deal with them. The "adjusted market value" explained in step 1 basically gives the dealership more to work with so they can come out with more profit at the end. You want to deal between the invoice price and the MSRP, and not between THEIR price and the invoice. So let's suppose their adjusted market value is $3000, which brings the car to $34,200. That's basically a profit of $5500 ($3000 adjusted market value with $2500 over invoice) if you buy it at their price. If you knock off $3000, which seems like a lot, and they tell you "look, we can't go any lower, you've already knocked off $3000 from $34,200", don't be fooled. That $3000 shouldn't have been there in the first place. Make sure you pay LESS than MSRP if you want to get a deal.

3. Ask for FREE options. If for some reason the dealership will not let you deal the car under MSRP, and all the other dealerships for that particular car you want also won't let you do the same, bargain with them using options. Tell them you don't get anything for that addtional $3000 they added to you car which you already dealed off (don't make them sucker you into thinking you knocked off $3000 so you can't get anything...remember, that $3000 didn't belong in the first place), so you want something for it because the car isn't supposed to cost that much. Add that sunroof option or an in-dash 6 CD changer to your car. Basically make it worth while to pay for the car at MSRP (remember DON'T pay over MSRP).

4. BUY USING COSTCO. Yes, you can purchase cars using Costco. Don't have a membership? I suggest purchasing a membership JUST to purchase a car (and hey, you can go to Costco for a year now). A basic Costco membership costs $50.00. You will DEFINITELY get more than $50 under the MSRP. And the best thing about buying a car using Costco? NO HASSLING. By showing your Costco membership card to the dealership (only if the dealership has a deal with Costco), you will get the Costco membership price on that vehicle. We bought 2 cars using Costco. Savings vary between states, but our Accord was $900 under MSRP. This year, I heard it was $1200 under MSRP for the 2007 Accord models. To see which dealerships offer the car that you want, go to Costco Auto's website and fill out the necessary fields. Within 24 hours, they will e-mail or call you back letting you know which dealerships offer the Costco deal to the particular vehicle that you want to purchase. Dealerships can still rip you off using the Costco membership deal if you aren't careful, so follow these simple rules once you establish which dealerships allow the Costco deal:

a. Show your Costco card to the participating dealership, and ask for the "Member Only Price Sheet". They are REQURIED to show you this sheet, which displays the Costco savings. If they don't show you the member price sheet, call Costco and report the dealership. The price should knock off their entire "adjusted market price" and be below the MSRP.

b. You are not requried to purchase the car once you submit the information to Costco. The participating dealerships should only tell you how much the car will cost. It's your decision if you still want to buy the car at the member price.

c. Make sure they don't add any other cost on top of the Costco price that you see on the Member Only Price Sheet. Anything they add is bogus.

I have found that Costco is the easiest way to purchase a car. No hassles, one price, and out you go with your new vehicle. Car purchasing can not be any easier. Unless you have direct connections to the owner of the dealership, there is almost no way to get a cheaper price with no hassles. Give it a shot. It will make car shopping a whole lot easier.

How To (Money): Tips and Tricks to Maximize Your Cash Back Credit Cards

Here are a few tips and tricks for those of you who have a cash back credit card. This might not work for every cash back credit card, but it doesn't hurt to try. For the most part, all these tips and tricks work. We'll assume that your cash back credit card gives you 5% back on groceries, gas, and drugs, with 1% back on everything else.

1. Understand that if your card states that you receive the maximum cash back for groceries, that doesn't necessarily mean that you have to buy groceries. It only means that you have to buy at a grocery store...but it can be anything in that store. The same goes with drug stores. If your grocery store has batteries, and you need to buy batteries, you can receive 5% back on your purchase of batteries as long as it's at a grocery store. Just like the store Longs Drugs...it's categorized as a drug store, so no matter what you buy at Longs, you will get 5% back, whether it's drugs or not.

2. Need to buy gift cards for a birthday or Christmas gift? Buy them at grocery stores with your cash back credit card (or drug store if they carry them)! Stores like Safeway sell gift cards for Best Buy, WalMart, Home Depot, etc. If you buy those gift cards at their respective locations, you will only receive 1% cash back on those purchases (with other cash back cards, you might not get any cash back). If you bought, say a Best Buy gift card at Safeway, you will receive 5% cash back for that purchase.

3. Use your cash back credit card for most if not all of your purchases (just don't overdo it and spend too much...just buy what is essential, as explained in my Simple Ways to Save Money post). This way, especially if your cash back credit card gives you a certain % back for all other purchases, you will always get money back. I use my cash back credit card when I eat out (1% back), fill up gas (5% back), buy groceries (5% back), purchase a CD at Best Buy (1% back), purchase a gift card at Safeway (5% back), and most recently buying roach traps and contact solution at Longs Drugs (5% back). As you can see, no matter what I purchase, I will always get some money back.

Hope these tips help. Have fun making money using your cash back credit card!

How To (Money): Spend Money, Make Money (Cash Back Credit Cards)

Credit cards. They can be a savior or the root of all evil. However you look at it, nearly everyone on this planet owns a credit card of some sort. The reason we use credit cards is so we don't have to carry cash, and with one swipe of the card and a signature, the products we purchase are ours. That's usually where the positive aspects of using a credit card stops. Then comes a slew of negative aspects...spending too much because we think we have an unlimited amount on the card, paying in installments that lead to exorbitant interest rates, etc. If it hasn't hit you yet, the negative aspects all deal with the credit card making money, and you losing money. Don't you deserve some money for using their card? Of course you do. So what do you need to do? Answer: Get a cash back credit card.

There are many cash back credit cards out there. A good place to start the comparison between different credit cards offering cash back is at creditcards.com. They list the major credit card companies and their current rates. There are a few things you need to consider before jumping right in...read the list below:

1. What do most of the places you shop accept? For example, if you primarily shop at Costco, American Express is a good choice since they only accept American Express. Discover is not as popular, but they offer high rates to compensate for this unpopularity to encourage people to use their card. If you want to be safe, Mastercard and Visa is accepted everywhere...you can't go wrong with them.

2. What do you primarily purchase? This is important since different cards offer different cash back percentages depending on what you purchase. People who drive a lot should get a card that gives you cash back for gas purchases. Likewise, if you eat out a lot, make sure the card you get gives you cash back for eating at restaurants. Some cards offer high cash back percentages for a combination of purchases. I personally have a CitiBank Mastercard that gets 5% on groceries, drugs, and gas purchases, with 1% back on everything else. The combination works for me, because I drive a lot, buy my own food, and I know no matter what, I will get at least 1% back on everything else I purchase.

3. Read the fine print. Some cards say that you get 5% back on certain purchases, but that may only last for the first 6 months or 1 year. After that, the percentage goes down to 2%. You might be better off using a card who offers 3% from the get go, this way, you'll always be over 2%. Also, check for annual fees. Basically, if the card has an annual fee, it's not worth it unless you spent enormous amounts of money that allow you get back a lot more cash back than the annual fee would cost.

4. Know the cash back limit. Make sure you know how much cash you can actually get back. For example, my credit card only allows you to receive $300 through cash back earnings for one year. Any earnings more than $300 during that year that will not be counted. Still yet, that's a lot of money...with the 5% limit, I would have to spend at least $6000 on my credit card to achieve that much cash back. Just make sure you research what your cash back limit is per year. If you spend a lot of money, you probably want a credit card that will have a higher cash back limit.

The reason I like cash back credit cards rather than reward credit cards is because I can get the cash back to spend it on what I really want. With reward cards, if you decide to trade in your points for cash, it's basically a 0.5-1% cash back rate. If you decide to purchase one of their items with points, it would ALWAYS cost more than if you bought it yourself. It's similar to playing games and Dave and Busters and winning tickets. You could have paid for the products at least 5 times cheaper than playing games to earn tickets to trade in for prizes. The only difference is that playing those games at Dave and Busters is a fun way to earn tickets. With credit cards, aquiring those points cost you money...which isn't fun. Cash back credit cards are definitely your best bet.

Stay tuned for an article on tips and tricks to maximize your cash back credit cards. Coming soon...

How To (Money): Individual Housing Account

*Read this only if you don't own your own house, apartment, condo, etc.*

This tip works in Hawaii and a few other states, and if you are fortunate enough to open one of these accounts, do it now. The account in referred to as the Individual Housing Account. Basically, the idea is simple. The state is willing to deduct up to $5000 off your gross income each year for up to $25,000 maximum, as long as all that money goes to the purchase of your first residence within 5 years of opening the account. Wait, what is that you say? The STATE is giving you money back because you are being a smart person by saving money for a place to live in? *GASP* Since you get taxed off of a smaller gross income, that $5000 goes in tax free for the purchase of your new house, and you owe the state less tax since they taxed off of your adjusted gross income. If that doesn't have you running to the nearest financial institution to open this account, I don't know what will.

Oh wait...there's MORE?! So I opened up my IHA at a bank here in Hawaii (not all banks offer this account). I was all excited that I was going to save money, and I would have a nice down payment for a new house within the next 5 years. Then they explained that I get interest on top of the amount I contribute to the account. Wait, so what the bank is saying is that they are going to GIVE ME MONEY because I'm SAVING MONEY? Yes, that's exactly what they are saying. True, the interest rate was about 3%, but it's FREE money. You actually get a double bonus because:

1. You get taxed off of a smaller gross income, so you pay less taxes to the state.
2. You get interest for the amount you put into the account (up to $5000 each year).

And what's better, is that if you are married, your spouse can do the same thing. What does that mean? That means if you and your spouse contribute the full $5000 each year, you will have a grand total of $50,000 to use in the purchase of your new residence. Not to mention each of you will get to deduct $25,000.

So where do you open this account? Call your nearnest bank, credit union, or loan company and ask for the account. The only person who will benefit from this will be you.

Misc: Don Quixote...the super store

Growing up in Hawaii, I was able to watch a very well known store go through three major transitions. This store was a place for everything. You could buy food, pillows, automotive needs, clothes, etc. You name it, they have it. And the best part of all, everything was reasonably priced. For the old timers, this place was called Holiday Mart, and I know a few people who still call it Holiday Mart till this day. Then before I knew it, the place changed its name to Daiei (pronounced die-eh) when it was aquired by the Japanese super company. Then most recently, within the past month or so, the name changed again, this time to Don Quixote...another Japanese super store company. Yes, if you're wondering, the name has to do with the novel of Don Quixote, the man who believes that he is a knight who attacks a windmill. The only difference is that the character is not a man, but a cartoon penguin. Yes, leave it up to the Japanese to come up with the weirdest things. Well, thinking that the transition from Holiday Mart to Daiei was only a name change, I expected Don Quixote to be the same thing. Boy, was I WRONG. The store went through a MAJOR makeover, and looked like a jungle themed Chuck E. Cheese. Look at what I mean.

Vines were clinging from the ceilings, bright colored signs were placed everywhere, all types of music were playing (mostly Japanese pop music) in various locations from the grocery section to the aloha shirts, products were stacked in odd shapes...it was just so much to take in!

The two biggest complaints I've heard, and I tend to agree with, is that the walkway is narrower (to accommodate their endless supply of products) and that everything got rearranged. I read in the newspaper that the endless amount of products in various locations was the "fun" in shopping...almost like a scavanger hunt. Since there are so many products, they want you to browse other things before you get to what you need to buy. This may be fine for people who LIKE to shop, but it is a complete nightmare for those who like to be in and out of the store as soon as possible. Below, I would like to share what I think are the pros and cons about the new store:

Pros

1. A wealth of new products, especially from Japan.

2. A colorful, cartoony, happy environment.

3. For the most part, same reasonable prices (although some products increased in price).

4. Still the place to buy anything you want.

5. Still 24 hours.

Cons

1. Narrow walk ways.

2. A colorful, cartoony, happy environment.

3. Where is everything?

4. Too much random noises (J-pop music at every turn).

I feel that Don Quixote will appeal more to the younger crowd and Japanese people, since most of the stores in Japan are very simliar. Old timers will definitely be turned off by the loud music and the reorganization (perhaps for the worst) of the store. Yes, what you want is there, but let me know where it is...you'd be surprised...some of the workers don't even know.

How To (Cars): Tips to Save Gas

So the rising gas prices are making you skip lunch because you need your car to run all your errands and get you to and from work. Here are some personal tips and tricks that I employ to save gas out of my car (some I read on the internet, others from just trying out things with my car).

1. If your car doesn't require premium fuel (there's a difference between recommended and required fuel...recommended usually means it will use your car's full power potential if you put in that certain grade of gasoline, but if you don't, it won't hurt your car...required means if you don't put that grade of gasoline, your engine may get damaged), don't put it in. Corvette's use 87 grade gasoline, so why do you need to put premium into your Toyota Corolla? Grades don't keep your engine and its parts cleaner, so don't buy into that. What cleans your engines are additives that each gasoline company puts into their gasoline to call it their own, which usually includes cleaning additives. Examples you might have seen are V-Power by Shell and Techron by Chevron. Shell claims 5 times the cleaning agents over the required amount regulated. The only thing I recommend is to purchase your gas from top tier gas stations. You can get the list and information at the Top Tier Gasoline website.

2. Don't accelerate and/or brake harshly. Accelerating hard causes your engine to spin faster drawing in more gasoline to supply the power for your car. This sudden spurt of power uses more gas than if you steadily increased your acceleration. Accelerating quickly then having to brake quickly is inefficient for you car.

3. Coast. Pay attention to the street lights. If you are driving and you see that the traffic light ahead is red, don't speed up and brake when you get close to the light. Instead, let go of the gas pedal and allow your car to coast and naturally slow down due to friction. This allows the engine to spin at a lower RPM, which in turn uses less gas. Press the brake pedal when you get closer to the light, which by that time, stopping should take very little effort. There is no use to race up to a red light. In case the traffic light changes to green, if you are still coasting, when you press your gas pedal you don't have to start from a complete stop. This means less work for your engine since your car is already travelling at a certain speed, and again, saves more gas.

4. Have your windows down if you are driving below 40 mph, and use your A/C with the windows up if you are driving over 40 mph. Having your windows down causes drag to your car, making the engine work harder to maintain the speed you desire. The faster you travel with your windows down, the harder the engine has to work, since the wind is causing more drag to your vehicle. Using your A/C does consume some gas, but the combination of your windows up and the A/C on saves more gas than if you had your windows down if you are driving over 40 mph.

5. Keep your tires inflated to its proper pressure. Having underinflated tires, even by a few psi, can definitely affect your gas mileage. It's also a good way to check on your tires as well, looking for flats, tread wear, when to rotate your tires, etc. It's a good idea to check the pressure on your tires once a month. I also find that putting in 1-2 psi more than the recommended tire pressure increases my gas mileage. Don't put too much pressure over what's recommended into your tires though, because it may cause more damage than anything else.

6. Combine all your trips so you don't make frequent stops. Turning your engine on requires a certain amount of fuel to start the car. The gas you burn to turn on your engine equals to the same amount of gas you burn if you idle for 1 minute. The longer you travel, with less stop and go, the better your mileage will be. So instead of driving down 2 miles and driving back to your house, then back the other way for another 5 miles, drive the 2 miles then the next 3 miles to run all your errands before returning home.

7. Remove all unwanted things in your trunk and back seat. Extra weight will bog down your car, since your engine has to work harder to move a heavier vehicle. Remove all the unnecessary things in your trunk and leave only what you need. Your trunk should be nearly empty.

How To (Money): Simple Ways to Save Money

Money is tight these days...we all experience this at one point or another. So how DO we save money? Keep in mind, this article isn't trying to tell you how to make more money (although some tips on how to make some money are included), but it will give you advice on how to manage and save your earnings. The intention of this article is to keep things simple, so readers aren't turned off by foreign words or complicated formulas.

Direct Desposit
From experience, most people I know can't wait for payday because now they can go and spend the money that they just made. They would cash their check, put some away in a bank, and go on their purchasing spree. A good way to control the amount you spend, and if the company you work for allows it (most will), is to have your paycheck directly deposited into your savings or checking account. Basically, the amount you made in that period of time automatically gets wired into your bank account. This way, you have to make your way to the bank to withdraw what you need...and I repeat, withdraw what you need, essentials such as groceries, bills, rent, and perhaps a night around town.

Banks
A good place to put your money is a bank. Why? Because they hold your money safely for you, and most places are insured up to a certain amount, usually $100,000. This insurance is denoted by the FDIC logo on all established banks. By default, most people place their money in a savings account. Most banks offer some sort of interest rate so that you would use their bank instead of others. But for the most part, these banks offer very little in interest, usually somewhere between 0.25-1.00%. If you want to make a little bit more from your earnings, consider opening a bank online. If you don't feel safe using the internet for your banking needs, feel free to skip the Online Bank section next. I don't want to convince anybody to go out of their comfort zone. But to those who are considering online banks, read on.

Online Banks
Online banks such as INGDirect, HSBC Direct, and E-loan, offer online savings accounts with a high interest rate. How do they do this? Think about your current bank. The banks have to pay their tellers and other workers along with the operational costs that go with a bank. All this is considered overhead costs. With online banks, everything is done online so the online banks save this money by not having such a large overhead cost. In doing so, they are able to provide you with higher interest rates for your savings account. Typically, interest rates fall around 4-5%. Linking your online savings account to your current bank's checking or savings account allows you to transfer money, whether you want to put more money into your online savings account, or you want to transfer money from the online savings to your current checking account so you can withdraw some money for your Christmas shopping. Most importantly, make sure the online bank you sign up for is FDIC insured, otherwise don't sign up. Typically, if the online bank is FDIC insured, it is relatively safe to put your money there. For more information, click on the online bank links in the beginning of this section...those are the more popular online banks. Shop for the best rates, and do what feels safest for you.

Retirement Fund
OK, I know what you're thinking...why should I start my retirement fund now? It will save you money NOW, and it will make you money LATER. If your company offers you 401K's or simliar accounts, take it. Here is the simplest way to explain this. Let's suppose you make $50,000 a year. The maximum contribution you can put into your 401K this year is $15,000. Let's say you want to contribute $5000 per year. Well, the good news is that $5000 is UNTAXED and goes straight into your 401K. This also means that you only get taxed on $45,000 instead of $50,000, so you owe less in taxes. Owing less in taxes means you are saving more money (save money now), and that money is automatically being put away into your retirement fund (make money later)! A good way to ensure that you are putting money away and saving as much as you can is to ask your employer to deduct a certain percentage of your paycheck into your 401K. This way, you can't touch that money and you know that the money is going in tax free. Plus, incentives such as company matching is basically free money. It's a no brainer...ask your employer about opening up a 401K if they offer it and ask them to explain the details. And if you have money on the side, start up a Roth IRA (if you are eligible...most of you will be). With a maximum contribution of $4000 this year, the interest you make will NOT BE TAXED when you withdraw it after your retire. That is FREE MONEY. Do it now.

If You Can't Afford It, Don't Buy It
How do credit card companies make so much money? If you are one of the many people who pay your credit card bills by installments, you just put your hard earned money into the credit card company's pocket. Most of the credit card companies charge high interest rates, which doesn't apply to people who pay their bills in full. A good way to calculate how much credit card companies make money off of people who pay in installments, you can use online calculators such as on Webwinder's website. For example, let's say you have a $500 credit card bill, with an annual interest rate of 18% and a minimum payment percent of 3% if you pay a minimum balance of $10. If you continue to pay the minimum $10 installment, it will take you 74 years to pay off your $500 bill and the credit card company will earn almost $300 in interest. So to put it simply, for your $500, you end up paying $800. If you have any type of credit card debt (paying in installments is basically being in debt, because you still owe the amount you haven't paid off), start paying this off first before anything else. Having credit card debt makes you have a low credit score (which will make loaners more weary to let you borrow money), and the sooner you pay it off, the less you owe the credit card companies, and the faster you will be out of debt. Bottomline, ONLY PURCHASE WHAT YOU CAN AFFORD TO PAY IN FULL. Otherwise, you are just throwing money away.

Misc: Ultimate Fighters and their Salaries...are they getting ripped off?

Who wants to be an ultimate fighter? If you want to be one, you have to endure getting punched and kicked in the face, slammed to the floor, choked, and be exposed to a million types of submissions to the arm, leg, and neck. You would have to pay me some BIG bucks to put my butt on the line. Yes, you could be so skilled that you could walk into that cage and come out unscathed. Just ask Anderson Silva, the current UFC Middleweight Champion. He is a veteran in the sport of mixed martial arts (MMA), fighting all over the world, predominantly in Japan. In his first UFC debut, he defeated up and coming Chris Leben by KO in the first round...and it only took him 49 seconds. He hit with 100% accuracy...which no one has seen before, landing all his blows. Silva received his shot at the title against the UFC Middleweight Champion against Rich "Ace" Franklin. Another devasting KO ensued, with Silva's hand raised at the end. Franklin suffered knees to the body and a final knee to the face that knocked him out, and in the process, broke his nose. This took Silva only 3 minutes to complete this task. And what did Franklin, the UFC's poster child and 2 time defender of the Middleweight belt get paid for his severe beating and broken nose? A measly $21,000. In an age where boxers get paid $1 million for a fight, and only get punched in the head, these UFC fighters are not getting paid well at all. Below is a breakdown of the salaries in the same UFC event where Silva defeated Rich (salaries courtesy of MMAWeekly.com):

UFC 64 Fighter Salaries
Event took place on October 14, 2006 and aired on pay-per-view

Title Match & Main Event Fighters
-Anderson Silva: $50,000 (defeated Rich Franklin)
-Sean Sherk: $22,000 (defeated Kenny Florian)
-Rich Franklin: $21,000 (lost to Anderson Silva)
-Kenny Florian: $8,000 (lost to Sean Sherk)

Main Card Fighters
-Cheick Kongo: $20,000 (lost to Carmelo Marrero)
-Jon Fitch: $20,000 (defeated Kuniyoshi Hironaka)
-Spencer Fisher: $20,000 (defeated Dan Lauzon)
-Kuniyoshi Hironaka: $6,000 (lost to Jon Fitch)
-Carmelo Marrero: $6,000 (defeated Cheick Kongo)
-Dan Lauzon: $3,000 (lost to Spencer Fisher)

Preliminary Match Fighters
-Yushin Okami: $12,000 (defeated Kalib Starnes)
-Clay Guida: $6,000 (defeated Justin James)
-Kalib Starnes: $5,000 (lost to Yushin Okami)
-Kurt Pellegrino: $4,000 (defeated Junior Assuncao)
-Junior Assuncao: $3,000 (lost to Kurt Pellegrino)
-Justin James: $3,000 (lost to Clay Guida)

Disclosed Fighter Payroll for UFC 64: $209,000

Yup, $21,000 for a successful CHAMPION of the UFC. Champions usually fight around two times a year, maybe 3 at most, to give time for training and healing between events. And with each successful win, the pay goes up...but only around $2-3k on the average. There is a win bonus for champions, usually close to the same amount as their salary, so if Rich won, he would have received $40,000. This year, he only fought twice, one win and one loss. He earned $32,000 for his win, $16,000 for showing and another $16,000 for winning (cited from MMAWeekly.com). So let's add this year's earnings for Rich...that reaches a grand total of...drum roll...$53,000. That barely covers his costs for his constant training, his training camps for fights, his wife and daughter, etc. Training costs enormous amounts of money, especially since he trains with great fighters. Does a CHAMPION deserve to get paid this measly amount? I totally disagree. Luckily, Rich is sponsored by Xyience, an enegry product, which probably pays him $1 million a year. But not all fighters are this lucky.

Most fighters, aren't sponsored at all, and when they are, it usually pays for their training. Just look at the fighters payscale above...many of the fighters only earned $3000-6000. If they lose, they might not come back to the UFC, so they basically made $6000 that one year. Other fighting organizations usually pay a few hundred dollars to their fighters, with the bigger winners taking home maybe $5000. Consider health costs, training, foods and supplements, etc. These fighters are not getting paid enough to fight as a career. Most of them have other jobs to support themselves and their families, hoping that one day, they can be a champion. Unless you are Chuck Liddell, who earns 6 figures per fight, with a million dollar sponsorship by Xyience, you aren't doing well. There aren't many fighters in the UFC who get that type of salary. Just think of how much the UFC gets per event. Usually, an event seats about 10,000 people. Tickets range from $50-500. Let's just say the average ticket price is around $150, since there are less expensive seats and more cheaper seats. The event alone already brings in $1.5 million. And don't forget PPV. With so many viewers, usually around 150,000, and at $39.95 a show, UFC gets about $6 million in PPV sales. So a measly $209,000 goes to ALL the fighters combined?

Bottomline, UFC fighters should get paid more for what they do. They don't work their butt's off to get paid $3000. We can all sit at a desk and get paid $3000 monthly without breaking a sweat. Please, pay these fighters what they deserve.

News: $6000 combo...meal

So it came to me this morning about a story I read sometime last month. You can read it on CNN at this link. Carl's Jr., a popular fast food chain, unveiled their $6000 combo meal . Yes, you read that correctly, $6000 big ones. What does this amazing combo meal include?

Carl's Jr. Six Dollar Burger
French Fries
$6000 bottle of 24 year old French Bordeaux

This combo meal is only served at the Palms Casion Resort in Las Vegas. OK, I know a lot of rich and famous people go to Las Vegas and spend like there's no tomorrow on really outrageous things, but a $6000 combo meal? I think it's a nice way to get Carl's Jr. into the spotlight, but I highly doubt anyone will buy the meal. They even put out a commercial which can be viewed on Carl's Jr's website under "Maloof Brothers".

There was an interview, I think it was MSNBC, and they were interviewing the people responsible for this idea. The interviewer asked if anybody bought the combo meal yet, and the response was no. I think they know there aren't going to be many, if any, buyers of this meal. It's a good way to bring more customers to Carl's Jr. and Hardees, and although the combo is actually offered, I'm sure they weren't expecting to sell it. It's basically a good way to get Carl's Jr. on the news, spark some discussion, maybe a blog post (like this one), and at the very least, get people to think about Carl's Jr. Just think of all the creative Jack in the Box commercials...they target a market who appreciates the humor and draw the crowd in. You want those seasonal Jack antenna balls? Buy a combo from Jack, and they'll give you one. Sadly, the $6000 combo meal only received short attention on the news, and probably didn't give them much of a sales boost. Oh well, next time. Until then, keep coming out with creative commercials. You might draw me in.

Random Tips: Hybrids Vs. Economy Cars...worth the extra $$$?

With gas reaching pretty much an all time high, more and more people are looking at hybrid vehicles to save on gas. But really, are they such a great buy? Let's fabricate a scenerio and compare the all mighty Toyota Prius hybrid vehicle against the Toyota Yaris, an emerging small economy sedan.

MPG: At first sight, the Prius seems to win bringing in 60/51 (city/hwy) while the Yaris brings in a respectible 34/40. Although, there has been pretty much NO ONE who has got close to 60 mpg. My friend owns a Prius and says that he gets about 41 at most. Motortrend reported a poll indicating that actual Prius users got an average in the mid-40s, while their testing reported about 53 mpg. We'll go with the polled data since the sample was larger, and say the Prius gets 45 mpg. My coworker owns a Yaris and he reports a healthy 35 mpg. Prius does win, with 10 more miles per gallon. But they don't really win...read on.

Cost: Let's say that the driver drives a good 20,000 miles a year. The Prius would use up around 445 gallons of gasoline at 45 mpg of mixed driving. The Yaris on the other hand uses up 570 gallons of gasoline at 35 mpg of mixed driving. Looks like the Prius wins. But wait...let's say the gas costs $2.75 (the current price of 87 grade gasoline in Hawaii). The Prius would cost $1223.75 yearly to fill up and the Yaris would cost $1567.50. That's a $343.75 difference. Looks like the Prius wins again. Hold it, back up a bit. Remember, the Prius has a MSRP sticker of $22,175 while the Yaris S sedan is $13,425. That's about a $9000 diference. How long would the Prius take to make up that extra $9000? Dividing $9000 over the $343.75 savings would take about 26 years. You could definitely have spent that money elsewhere, such as in your Roth IRA, 401K, stocks, CDs, etc. Even when compared to the most expensive Toyota Corolla S at $15,250 at about 35 mpg, with the same driving miles, the Prius would take 20 years to make up for the extra cost of purchasing the hybrid over the Corolla.

If you are here to save money because of gas, get an economy car with fairly good reliability like the Honda Civic, Toyota Corolla, and Nissan Sentra. All of those cars bring in decent mileage with great reliability. All of those cars are also substantionally less than the Prius, and with the example above, you can see that you really don't save much money...in fact, you spend MORE money if you end up getting the Prius. It's kind of ironic really.

If you are looking to buy a hybrid, buy it for the fact that it releases less emissions into the environment since some of the power is diverted into the electrical motor instead of the gasoline motor, giving the gas motor less work, ultimately putting out less waste.

This might seem like old news to some, but the fact of the matter is, those darn hybrids are just flying off the shelves like nobody's business. Let's just hope they all bought it for a cleaner earth, cause they sure aren't saving any money.

News: Cell phones: Cancer and Infertility?

So I just read on MSN that using cells phone for more than 4 hours a day can cause infertility in men. I think the point of the story was for our society to use our cell phones less. Apparently, the fact that cell phones can cause brain cancer didn't deter us from talking on our cell phones, so they resorted to infertility. Wow, that's a pretty low blow. I mean, after all, a man's pride is located a little south of the waist. Informing us that something can cause our little swimmers to drop in numbers and not be as viable should veer us as far away as possible from the source. Of course, this won't happen. Just read the article. They tested their hypothesis on 364 men...hardly enough samples to draw such a conclusion. Then they go on to say that they aren't sure if it's actually from the cell phone's radiation or the battery heat. Since when did heat from everyday products cause infertility problems? They tried to link that to laptops, but no one believed it even though it seemed probable. So are heating pads and seat heaters going to drop our sperm count? How come no one points blame to other heating products that we sit on? And it's not like we put the cell phone near our waistline when we're talking on the phone, so how does the heat from the battery that is probably contacting our hand and ears connected to our sperm count? I'm sure that this study will end up like the relationship between cell phones and cancer...nada, as reported by the FDA website. And anyways, why are you guys talking on the phone for more than 4 hours a day anyways? Get out there and exercise or something!

Misc: Those darn spinning rims

Yes, you know you've seen them. They were a fad a while back when Latrell Sprewell showed off the first set of spinner rims on MTV. Fine, it was kind of cool to some, since the rims continue to spin even though the car isn't moving anymore. The coolness lasted maybe 10 seconds. You can find a line of his rims at this site. Yes, they are pretty freakin' expensive. So rappers began to install these spinner rims onto their pimp rides, like the Escalade, Mercedes, Bentley's, etc. OK, they have money to burn, and that was the style back then. But as a consequence, look at what the fad has started. SPINNING HUB CAPS. You know you've seen them. They can be bought at your local Wal-mart and even Amazon. You'll be able to see these great spinning hubcaps on Geo Metro's, Caravan's, ALL the Korean cars (Hyundai, Kia, Daewoo), Mitsubishi's, and many other cars...usually inexpensive ones. Just look at this Camry:



It's a CAMRY. It's a FAMILY CAR. What is this world coming to?

It's bad enough that the hubcaps spin, but the worst part is, they don't even work. How many times have you seen those Caravan's with spinning hubcaps, and they don't even spin? They kind of just wobble along like a loose cap fitted onto the hub cap. Sometimes they spin, but they never spin in unison...the front right rim would spin wobbly, and the back right rim would kind of wobble around looking like they are just about to fall off. I understand people want to customize their cars, but that's not the way to go! Please get some regular hubcaps...I don't care what kind...just make sure they don't spin.

Misc: Lamborghini doors

OK, can someone please explain why people need Lamborghini doors on their cars? Fine, some show cars can pull off the look, only if they're legitimate exotic cars. But when you start talking cars like the Dodge Neon...what are you thinking? Case in point:



OK, now REALLY? It's a NEON. The car is like $10k brand new. Why on earth would you put Lambo doors on this car?! It sure doesn't make your car go any faster. It's not like the car is so darn big and wide that you need those doors to open in tight parking spots. And it SURELY isn't making the Neon look like a Lamborghini. The cost for the conversion runs between $800-1800...without installation. You know what you can do with that kind of money? For starters, you could have gotten a better car. Or, even better, use that money to fuel your car for the next 2 years, and maybe throw in a few detailed car washes. Hopefully this trend dies off...soon.