The Broke Folks

Low Interest Rates. The good, the bad, and the inconsequential.

2010-12-20T14:20:00.000-08:00

Interest rates have been low for ages now. The economic meltdown left mortgages rates as low as 4%. That is great news if you happen to have good credit and are in the market for a house. Of course, if you are just starting out and looking to save, you're going to be making less income from interest than previously possible. 1.5% on a savings account seems like a fortune when shopping around for a good place to put your money. Honestly, I see far more in the .3-.75% range.

What the good? It's a great time to get a mortgage or refinance. Business with a good rep can get inexpensive cash. So if you have a business, now is a good time to grow it.

The bad? No one is going to get rich watching their money sit in an account. This doesn't encourage savings. Want to put your money into something with risk-free return? I suggest you buy some tungsten before China owns it all. Or gold. There is never anything wrong with a supply of gold. Of course, most of us like our money a little more liquid and a little less metal.

The inconsequential?
It really isn't boosting the economy like the government would hope. We are stagnating as a nation. Not to be bleak.

Finding It Hard To Save?

2010-12-18T18:13:00.000-08:00

Sometimes just seeing your money in an account can is a temptation to spend.

Not with a breakable piggy bank!

You must kill the pig to get your money!

It's a great way to keep yourself from spending pocket change.

Saving Money In College #1: The Semesterly Nightmare of Textbooks

2010-12-18T17:57:00.000-08:00

There are many options when it comes to textbooks. I always like to buy them online and sell them back to my campus bookstore. It seems the easiest for my lifestyle. Very instant gratification.

Nowadays, ebooks and textbook rental are both valid options for your educational materials.

Instead of going to the super popular textbooks sites, I use the still bustling less flashy ones like abebooks.com and http://www.valorebooks.com/.

Never be afraid to ask your friends if they have taken the same classes before or are going to be taking them at the same time. You can buy super cheap, borrow, or share with them.

And, most importantly, buy the international editions. They are almost always the exact same. Just be sure to go by the chapters and not the page numbers when looking for the reading.

Credit Score Blues

2010-12-18T16:56:00.000-08:00

A good credit score is essential for financial health. With bad credit you can face difficulty getting approved for car loans and mortgages. You'll face higher interest rates on everything from credit cards to car insurance.

Poor credit stems from late or missed payments, defaulted loans, frequent applications for credit, and almost always when you close an account.

Your FICO score is generally calculated as follows:

Types of credit: 10%
Applications for new credit: 10%
Length of credit history: 15%
Current credit usage: 30%
Payment history: 35%

Recently the credit bureaus have started using a new formula. This is known as your Vantage score.

The Vantage Score goes something like this:

Available credit: 7%
Recent credit: 10%
Length of credit history: 13%
Total debt: 15%
Debt-to-credit ratio: 23%
Payment history: 32%

If your credit score is in the tank, don't give up. It takes 7-10 years to repair your score. It's better to start fixing it as soon as possible. First things first, make your minimum payments, at very least! This means making a budget and sticking to it. Pay down high interest credit card debt. If you have a defaulted loan, call your lender and make an arrangement to rehabilitate your loan. This is usually done by agreeing upon an amount to be paid each month and after so many payments your loan is given a fresh, healthy status.

Easy Money In Your Pants (for the ladies)

2010-12-16T16:06:00.000-08:00

We all want more money. What most of us don't realize is that we are walking around with a wonderous source of income. Without further ado, here is a quick list of sources of money in your pants.

1. Your panties.
Womens' panties fetch a decent price on the web. Let me rephrase. Women's dirty worn panties fetch a decent price from perverts on the web. Ebanned.net is an auction site that allows it's users (over the age of 18) to sell use undergarments, as well as some other interesting items. For those brave of heart and less than puritanical, this can be an excellent way to make ends meet. Articles of clothing sell for anywhere from $10-$100. And the cost to you. Well, that depends where you buy your underwear.

2. Your pants.
If there are plentiful designer jeans in your closet and your wallet is light, it could be time to consign. Generally consignment shops do not pay you until they sell your items. Plato's Closet, unlike these shops, will pay you immediately. Hand over the pants, take your handful of cold hard cash. Or, if the money is for clothing, just shop while you're there.

3. Legal Prostitution
Well, not entirely prostitution. Dating for money, maybe. I'm talking about Sugar Daddies. Rich men want young girlfriends and the internet is full of services that will connect the two. Never ever ever try to find a sugar daddy on Craigslist. It's a great site to make money on, but if a guy has real money he will use a sire with higher standards. Plus, you could definitely get yourself hurt. Sugar Daddies, Real Sugar Daddies, Sugar Sugar, and Seeking Arrangement are popular sites that can put you in touch with the older, richer, dating experience of your dreams. Young men can be sugar babies, too.

Look into your pants. Find some cash.