I am currently holding “an in between job before I start swimming in the corporate ocean. I’ve held a lot of jobs over my college career ranging from sales representative at Best Buy and Circuit City to a banker. Now I’m back to being a waiter at a fairly large chain in the South. The one thing that I’ve noticed in my past jobs is the use of the company’s retirement benefits by nearly 99% of the employees. People contributed at least the minimum amount to their 401(k) to receive the company match.

At my current position, the company will match four percent of the contributor’s contribution. To be eligible to participate in the plan, you must be a full-time employee (working at least 1000 hours per year. Seems like a ton when you look at it right?). After speaking with nearly every single employee, guess how many people are contributing to the plan? Most people will guess around 20-30 percent. Well, it’s actually 0%! Goose egg! Most of the serving staff has been employed with the company for more than three years; which they have elected not to contribute. Some employees have stayed at the same location since its opening and still do not contribute (eight years this summer).

Then I thought that this is only an issue with the serving staff. I later asked one of the managers and she told me she didn’t even contribute! The only person that has company stock is the general manager because all managing partners are given stock options. I decided to call the HR department and ask what the average match the company contributes to a full-time server. The representative gave me an example of how much I could be earning if I contributed. He said I would receive about $60 dollars a month. I’m only working 25 hours a week and receive much less tips versus the veteran waiting staff. So I took my number and doubled it then increased it another fifteen percent. The average full-time server has declined ~$1700 a year! The one employee that’s been working there for seven years has essentially lost $12,000 dollars. And that is only company matched dollars!

Let’s now evaluate how much real money the employee has neglected to receive.

The stock traded for $9.5 seven years ago and is currently trading for $31. Using this calculator the annual growth is about 18.4%. The monthly contributions would be $276 ($138 from the employee and $138 from the company). Now using this calculator, you can put in all the figures and come up with about ~$47,000.00. The ShareBuilding what if I invested calculator says the total net worth would be $51,400 (I think it considers the two stock splits). The total dollar amount invested would be about $11,600; which means they lost about $40,000 in seven years!

*eFIPO’s Rule* Do not ever pass up the opportunity for free money! If your company provides a match on your 401(k) contributions, take it immediately!

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Are cash advance loans really that scary? Do they end up helping some people that are in need of financial assistance? Probably… I mean there are exceptions to every rule. I’ve only read and heard horror stories about payday loans and how they are out to get you. I will never apply for a payday loan (at least I hope so), but for some people it could possibly get them out of a rut if they end up paying the loan back in full on the day it is due. People need to always read the fine print and always plan ahead. If you ever end up applying for a payday loan, paying it back immediately needs to be your top priority. This should be a last resort and make sure you have exhausted all other types of financing (i.e friends, family, neighbors, and trying to be beggar on the streets).

I just received a new advertiser on eFIPO and decided to write a quick blurb about payday loans. They have allowed me to write my personal feelings on payday loans without any type of censoring.

The following statements are not mine and they belong solely to National Payday.

Cash advance loans, also known as payday loans, can be a necessity in a financial crisis. You may be forced to give up your paycheck to take care of emergency bills or the stress of living paycheck to paycheck is just too stressful at certain times of the month. There are several excellent finds on online for cash advance loans. You will be able to find many options from the comfort of your own home.

A cash advance is so simple to do over the Internet and many online lenders offer free cash advance loans to people who are using the service for the first time. This can save you a lot and make the process of getting a cash advance cheaper and easier. The process is a breeze and it only takes a few minutes to fill out your online application. All you have to do is show that you are 18, have a job and a checking account and you can be approved within minutes. The money can be in your checking account within 24 hours and your stress will be relieved. If you find that you have extra cash come in, you can pay your loan early on online or allow the lender to withdraw the amount on the loan’s due date.

Borrowing money has never been easier and thanks to the Internet it is as simple as ordering something off of eBay. You don’t even have to leave your house or be seen walking into a payday loan lending office, which is often a concern for some people.

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You know how I feel about college, but what about a view from a Generation X’er? Ben from MoneySmartLife and I decided to talk about how certain view points can change from the perspective of a different generation. I am graduating from college this May (thank God!) and Ben is starting to save for his son to go to college. His son is not even a year old and he is already writing an apology letter to his son.

Here are some highlighted points from the letter.

I hope you decide to attend college someday and experience all it has to offer, except the loans of course.

 We started saving money in a 529 plan before you were born but I’m afraid it just won’t be enough.

 We’ve been saving heavily in our retirement plans since we were married, at the expense of a college fund, because you can get a loan for college but we can’t get a loan for retirement.

P.S. In state tuition is much cheaper. Go Mizzou!

 

College Tuition Costs Gone Wild – An Apology letter to My Son

I wouldn’t worry Ben. Smart people can find a way to make things happen.

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College is a necessary part of life. Here’s a quick quote from Orange County explaining my feelings about college. “Shaun: I have to go to college. Cindy: Why? Shaun: Because it’s what you do after high school.” Those few lines sum up my feelings about college. Why go to college? Because educating yourself is a key part of life. One of the major reasons why people now attend universities is the incredible networking opportunities that unveil themselves throughout the college experience. It’s not what you know, but who you know. This old adage saying is becoming more and more important in today’s world.

Unfortunately, college ain’t cheap. There’s a large sum of money due before you walk down the aisle (and I’m not talking about getting married). Most people don’t have large stacks of money laying around for education. That’s where student loans come in. Let me be the first one to tell you that student loans are still one of the most powerful debt instruments in the world. They provide the financial backing for your future financial successes. There’s a strong correlation between education and yearly salaries. Here are some figures brought to you by the Census Bureau : $36,302 for a high school graduate and $60,020 for college grads. Double the education, double the pay. It pays to go to school.

The scary part is education costs are going up faster than inflation.

What can you do to receive a good education and not drown in student loan debt? Stick to in-state schools. A lot of research has shown that making the most out of your education will mean a lot more than the name of the college you graduated from. In-state schools will provide a tuition discount and will save you a boat load of travel expenses. After graduation, many local businesses will select in-state grads to fill positions before they scout for out-of-state grads. Do your parents and yourself a favor by sticking to in-state schools. It’s also good for your state economy which is a huge plus!

If you fail to plan – plan to fail. Don’t let scary TV shows about tuition increases get to you. You just need to plan ahead. College is a great way to meet new and exciting people while getting a ticket for more money in the future.

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Now that I can finally see the light, some hidden, yet necessary costs are revealing themselves. The past month, I’ve been receiving tons of mail concerning graduation announcements. They are a great way to tell people that you are graduating and they can also provide some pretty nice financial benefits. When I graduated from high school, I didn’t really know anything about graduation announcements because they aren’t really popular in Canada. But now that I know about them, I’m going to milk the cow. Just kidding! Before I send the announcements out, I need to purchase them (this can cost a pretty penny). Some packages range from $100- $250 just for the announcements. If you expect to get money or presents in return, don’t cut costs with your announcements. You got to get poor to get rich (meaning spend more money on announcements to get nicer rewards).

I am also interested in purchasing a frame for my diploma. This can set you back another $150-$250 dollars depending on the quality of the frame. I highly recommend purchasing everything from one company to get some discounts on the whole package. After totaling up all the costs, I’m looking at throwing about $300-$400 on graduation (excluding graduation festivities).

• Announcements with all the bells and whistles- $110 to $140
• Cap and gown - $50
• Frame-$150
• Mailing Fees- $25

I’m hoping this stuff will end up paying off! Feel free to send me gifts or money if you would like at JRBeaudry at eFIPO.com. Just kidding, but really feel free. A congrats will be fine too!

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 Let’s see how well you know about entrepreneurs in

1. The primary reason that people start new businesses is:

• a. to make more money
• b. for flexibility in their schedules
• c. to achieve independence
• d. to make a contribution to society

2. It is very easy to define what small business means.

• T or F

3. ____% of small businesses survive at least the first 6 years.

• a.40
• b.10
• c.68
• d.25

4. All business owners and managers make a lot of money.

• T or F

5. All but which of the following are declining job types?

• a. bank tellers
• b. insurance claims clerks
• c. entrepreneurship professors
• d. farmers/ranchers

 
6. Which of the following is NOT among the growing industries expected to produce the most new jobs by 2012?

• a. service
• b. manufacturing
• c. education
• d. health care 

7. It is estimated that up to 50% of today’s college graduates will work in some kind of global activities in the future.

• T or F

8. Age and professional maturity are important in the decision to start a new business.

• T or F

9. Which of the following are most perceived to “have a good influence on the ways things are going”?

• a. police
• b. business owners
• c. churches
• d. local and state governments

10. ____% of small businesses in the

• a.90
• b.49
• c.65
• d.30

 

 

 

 

1.C 2.False 3.D Heavily argued 4.B 5.C 6.B 7.T 8.False 9.B 10.A

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I’ve seen a lot of things in my life, but I truly think this one takes the cake. One of my good friends has been dating the same girl for nearly seven years and still has not popped the question. After thinking about it for sometime, I decided to ask him what the deal was. He told me that he doesn’t want to get married because of all his financial insecurities. He feels that he would have to devote more of his finances to keep the relationship together such as: the ring, going out to dinner more often, buying flowers, purchasing gifts for her family and so on. The dumbest part of the whole story is he actually makes some pretty good money for a recent college grad. He doesn’t have any overwhelming amounts of debt and saves more than most of his friends. He loves the girl for sure and doesn’t want to pay for all of the extras that come along with marriage. 

This issue has probably happened to someone you know. I honestly feel that being too cheap can seriously damage your thinking. Not wanting to get married because you don’t want to have to pay for plane tickets to see her parents, is just plain dumb. Some people just need to grow up and realize that this is a part of life. I would totally understand if he didn’t have a high paying job or he had a huge mound of debt, but he doesn’t. Some may say he has cold feet, but I know him and he is just being cheap.

Do you have any friends that are just too cheap for their own good?

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Check out Aridni. They are currently having a financial/entrepreneurship/business poetry contest. Aridni’s Poetry Contest: Mixing Business with poetry. Here’s my poem that I submitted for the contest. I hope you like it!

I’ve seen many men throw away their money.
I would even point and laugh and think it was funny.
People will buy gold and expensive liquor.
Little do they know, their debt is getting thicker.
I try to explain and tell them you’re way out of sight.
But all they do is shout and want to pitch a fight.
“Stop judging me! I can spend all my cash.”
Little do they know, it’s gone in a flash.

After mounds of debt, they come knocking for advice.
Know they realize debt is like a bad case of lice.
Stop buying crap and pay down your debt.
Did you really need to buy a diamond necklace for your pet?
You’ll find your retirement money in your shoes to be sold.
Now sell all your stuff like your baseball hat and your mouth full of gold.
Your life is not over. You didn’t soil it.
But stop throwing money down the toilet.

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I’ve read a lot of bloggers views on why 0% offers are such an attractive deal. Some make a pretty good argument on how to make “decent” money by following a pretty easy plan to receive interest on the borrowed money. This seems attractive at first, but the negatives really do outweigh the positives.

Here’s a quick list of the positive reasons.

Extra money- You will receive an extra $10 to $40 per month after all is said and done.

Making money off someone else’s money -Leverage is usually always good.

No money down option -You don’t have to put up any financial backing/money or collateral/tangible asset to earn interest.

Here are the negatives I can think of on the top of my head.

Huge financial responsibility -Can you discipline yourself to stay on top of the minimum payments and not rack up any other kind of debt? This is very hard to do for 99% of the American population. Just because it’s free money doesn’t mean you don’t have to make large monthly payments to amortize the debt.

Having the extra cash flow - Can you make the large monthly payments on top of your regular bills? This can pose a big problem for most people. Your minimum payment can reach up to $300 bucks a month! Here’s a simple solution for this problem. Just payback the loan with the money you borrowed, but you will be cutting into your gain (which that would totally suck).

Is it really worth it? - What happens if you couldn’t afford one of the monthly payments because your car broke down and you need the extra money to pay for the repair costs? What if you become incapacitated or lose your job? Your interest jacks up and you no longer qualify for the 0% offer. Your minimum payment could easily triple in one month and for the life of the card. These issues can easily spring up on the drop of a dime.

If you really want an extra $400 dollars per year, consider investing a little more and spending a little less. Learn the rules about retirement accounts to save money on taxes. You can certainly be $400 dollars richer by cutting out random purchases for six months. Shop online for things you buy at a store and learn how to bargain on pricing! The gain is not substantial enough for me to throw on a couple hundred pounds of stress on my back. If you really want to be cheap, learn how to conserve on things you’ve never even thought of.

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We’re a few days into the eFIPO challenge, and we are all surviving alright so far, right? Actually, I’m not doing to badly. As of today (Tuesday night) I’m fourth, which given my strategy, or lack thereof, is rather impressive.

Thus far I’m just lazy. Not once have I looked over any ratios, financial statements, quarterly reports or news statements for any of the companies that I’ve invested in. I’ve taken a peek at a few charts (I’m a very visual person) and sort of taken the roulette strategy - if I see a lot of decline, I assume that some increases are coming - kind of like the red/black thing.

So where does that leave me? I just figure I’m the average consumer, so I buy stocks that I am familiar with for companies that I am purchase goods from. Google?Got it. Apple? I’m saving for an ipod nano and nike sports kit. Whole Foods? Yup, I like to buy organic and local. I would be buying LVMH (yes, that’s Louis Vuitton Moet Hennessy) if we could buy in non-US markets (what girl doesn’t love a Louis Vuitton Speedy? Such a classic). And Merck? An anti-cancer vaccine with 100% effectiveness for a disease that infects millions of thousands of women, not just in the US but globally? And is getting national support for mandated vaccination even though it costs $300 and only fractions of that to produce? Vaccines are great - microbes don’t develop resistance to them like they do antibiotics, and governments love them since they almost always come out on top in cost-effectiveness studies.  What’s not to love?

I’m curious, what’s your strategy?

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