The Consumerism Commentary Podcast is featuring Lou Scatigna, author of the book The Financial Physician: How to Cure Your Money Problems and Boost Your Financial Health. Lou also hosts the Financial Physician Radio Show on WOBM and XM Radio.

Among the topics discussed, Lou talks about his approach to giving financial advice, his take on the housing market and why both husbands and wives need to be involved in financial decisions.

If you enjoy this podcast, please vote for us in the First Annual Plutus Awards for “Best Personal Finance Podcast.” Voting ends on Tuesday, March 16. Thanks!

Table of contents

[00:00] Introduction from Flexo
[00:30] Interview with Lou Scatigna
– [00:40] Lou’s tough-love approach to financial advice
– [02:37] Lou’s financial background
– [05:09] Buying used cars
– [07:15] The housing market in 2010
– [08:44] Income tax tips
– [09:43] The Financial Physician
– [13:50] Getting on the same page as your partner
[18:08] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

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Podcast 47: The Financial Physician, Lou Scatigna

The giveaway has ended. Thanks to everyone who has participated. The winners will be notified shortly.

This week I will be giving away five “extreme finance packages” containing Quicken, TurboTax, and QuickBooks. Each winner will be able to choose their flavor of each piece of software.

Today is the last day to enter to win this giveaway. Response has been much slower than I expected, so your chances of winning are currently very good.

In order to put your name in the hat, read these instructions. There are many ways to increase your chances, as well, from participating with Consumerism Commentary on Twitter and Facebook.

The giveaway ends at 11:59 PM Eastern Time tonight, so make sure you enter today.

The giveaway has ended. Thanks to everyone who has participated. The winners will be notified shortly.

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Giveaway Reminder: 5 Winners of Extreme Finance Package

Bank of America is controlling the news cycle lately. First, the bank eliminated overdraft fees for debit card purchases. Now, the bank has apologized to a woman for seizing her parrot.

Back in October, Bank of America believed Angela Iannelli was defaulting on her mortgage and she had abandoned her house. The bank ordered a contractor to visit the house to install a new lock and otherwise secure the location. The contractor saw Luke, a blue macaw, and took the pet, believed to be abandoned, away for its supposed safety.

When Iannelli called to rectify the situation with the bank, here is how the conversation progressed, from the Wall Street Journal, where the story was originally reported:

Ms. Iannelli, who owns a diner and works part-time as a bartender, said Bank of America representatives weren’t helpful when she called in to protest. They first denied knowing where the parrot was, and later told her she could go to the offices of the contractor, about 80 miles away, to retrieve the bird herself. Ms. Iannelli said bank representatives also told her they were “tired” of hearing from her, hung up on her and advised her to seek help from the police.

This incident occurred after the owner missed only one mortgage payment. She is now suing for $50,000 for the emotional distress of the event and the week she spent without Luke, in addition to the other actions taken by the contractor. Before the contractors walked off with the parrot, they cut water lines and electrical wiring and poured antifreeze into various drains.

Even if the bank had the correct information and were stepping in to secure a house that was truly in trouble, these actions seem drastic.

Bank Sorry for Taking Parrot, James R. Hagerty, Wall Street Journal, March 11, 2010

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Bank of America Seizes Parrot, Owner Sues for $50,000

ING Direct’s recent survey results about retirement are scary. I don’t know what the world is going to be like in thirty years, the time I’ll be approaching “retirement age.” I do know that if my pattern of increasing expenses doesn’t change until then, and if I’m still earning primary income by trading my time and effort, a comfortable retirement is going to require a lot of saved and invested money.

If you believe the 4% safe withdrawal estimate, in order to live off the equivalent of today’s $50,000 a year, I’m going to need the equivalent of today’s $1,250,000 invested. Assume a modest 3% rate of inflation and I’ll need more than $3,000,000 in 2040 dollars. Unless I make major reductive changes to my lifestyle or move somewhere in the world where the cost of living is low, I’d prefer to live on more than today’s $50,000 a year. I’m going to need a bigger nest egg.

Although it sounds sophisticated, this is speculation based on assumptions that could be very wrong. I’m doing exactly what 53% of working Americans are doing according to the ING Direct survey: guessing the amount of money I’ll need to save for retirement. Even if I were to use an online retirement calculator sponsored or designed by banks, investment companies, or bloggers, my results would still be guesses, though most likely slightly more accurate.

ING Direct is offering a planning tool that takes into account the lifestyle you’d like in retirement, your investment style, and your assets and planned contributions, and presents a savings plan. According to my results, I am surprisingly on target for over $3,000,000 in 2040. This includes a number of significant assumptions about my future income and rate of return on stocks.

According to the ING Direct survey, one third of Americans age 55 and over think their number is $250,000 or less. There is a subtle implication that this won’t be enough for many retirees.

In reality, I don’t know what my retirement will look like in 30 years. I may never be able to stop working in order to afford expenses for my future family. The best we can do is set a target that makes sense for what we know and understand of the world today, and make choices based on the assumption that the nature of money and finance won’t change too much between now and then.

What is your retirement number?

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I Might Need $3,000,000 To Retire: What’s Your Number?

Last year, Smithee reported that Bank of America was the first major bank to allow customers to opt out of overdraft protection and the associated fees. Those customers who opted out of overdraft protection would have their card rejected when attempting to make a purchase without the funds available.

Thanks to these changes as well as the limitation of four overdraft fees charged per day rather than ten, the bank lost out on $160 million in income in the last three months of 2009. Nevertheless, the bank will continue to make changes to comply with federal regulations.

Bank of American announced additional changes coming this summer, and I expect other banks will follow suit. On June 19 for new customers and in early August for existing customers, Bank of America will cease all overdraft protection on debit card purchases. After the policy change, no customer will be able to spend more than they have available in their account while using their debit card. The transaction will be declined.

The type of overdraft protection being eliminated is the type where the bank covers the funds in the short term and your checking account balance will head into negative territory. Customers will still be able to link their checking accounts to credit cards or savings accounts, so overdraft coverage in the form of a transfer from their own account will be available for a fee $10.

The bank-covered overdraft protection will continue to be available for checks and automated payments. Banks still see this as a convenience to the customers; no one wants their mortgage payment to bounce or be denied. At the ATM, if a customer attempts to withdraw more than the amount available, the machine will warn the user than a $35 fee will be charged if the withdrawal continues.

Bank of America is making it clear that it is looking to win points with customers with this move to eliminate certain overdraft fees. I have no concern about Bank of America’s ability — as well as the ability of any other big bank — to continue to find ways to charge unexpected and excessive fees. It’s a great reason to track your finances and keep your finances simple.

Photo: taberandrew

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Bank of America Ends Some Overdraft Fees

When I post my financial reports each month, they reflect only a small piece of who I am as a person. My bank account balances are only a small part of my life although they are center stage on Consumerism Commentary. I try to avoid labels for this reason; when I reach a net worth of a million dollars, I will be hesitant to call myself a “millionaire,” a label that would describe only a small part of me.

Even when looking at my finances in whole, net worth is a small piece. You cannot forget about your net income, a number which will tell you more about your financial well being than your net worth. That is, if your net income is positive every month and your net worth is negative, you’re in better financial shape than if your net worth is positive and your net income is negative.

You can take your net worth, income, and cash flow and still have an incomplete picture of your financial wellbeing. That’s because these figures all neglect to include human capital, your ability to earn income in the future, and focus solely on financial capital, your assets.

The New York Times recently shared an article about using human capital to hedge your financial capital. If you have strong human capital, you can afford to take fewer risks with your financial capital, but if your human capital is weaker, you may need to take more financial risks to get to the same place.

The strength of human capital can be judged by the stability of your job and your ability to find work regardless of the economy. Can your skills be marketed across a variety of industries? If you are a mortgage broker, your immediate job security is tied to the real estate industry. That could be a dangerous sign for your human capital. But if you are a financial analyst, you might be able to find a job in any economy in any industry (not just finance).

If you are close to retirement, your human capital will be low. You may not be willing to spend several years training for a new job or career. Young people have a human capital advantage; time is on their side.

This measurement of human capital may be even more important and tell a more complete story about your ability to thrive financially than your financial capital. How would you characterize your human capital?

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Your Human Capital

At the beginning of March, the banking arm of Sallie Mae, a publicly-traded corporation whose main business is student loans, began offering high-yield savings accounts. As I’ve mentioned before, “high-yield” is currently a joke; just a few years ago, you could deposit cash in high-yield savings accounts and count on slightly beating inflation.

It is likely your money in a savings account will lose purchasing power until rates increase again. Even then, with the proliferation of online savings accounts, the marketplace might look much different than the last time rates here high.

I’m not normally a fan of chasing high interest rates; the time and effort generally don’t outweigh minor gains in after-tax income. I suggest finding a bank that offers consistently high interest rates and sticking with them until you have a problem with the bank or could earn at least a hundred dollars more by moving your money.

Because I review banking products, I have many active savings accounts. With Sallie Mae, I am adding one more. Like Discover Bank, opening my account at Sallie Mae Bank was very easy.

Opening a Sallie Mae Bank Savings Account

Consumerism Commentary is currently giving away five “extreme finance” packages containing Quicken of your choice, TurboTax of your choice, and QuickBooks of your choice. Click here to find out how to enter.

The first page of the account application announces the process will take ten minutes, and I found this to be an accurate estimation.

In order to proceed with the application, you will need your Social Security number, personal identification such as a driver’s license, and the banking information for your linked bank account. I grabbed the routing number and account number for my Electric Checking account at ING Direct and my New Jersey driver’s license, and I was ready to go.

Sallie Mae integrates the online access set-up with the application process. This is a much more efficient way of handing account set-up than the processes used by many other banks. You can see below I was able to create an online account and a PIN for use when calling customer service.

After confirming the information entered is correct, Salle Mae verifies identity by asking the familiar questions derived from data points on the customer’s credit report. Once Sallie Mae completes the identity verification, the bank offers an option for entering a routing number and account number for an external linked bank account from which the initial deposit will be withdrawn.

Sallie Mae requires no minimum balance, so I started with an initial deposit of only $100. Given the bank’s higher rates, I may move more funds from ING Direct to Sallie Mae in the future.

Using the Sallie Mae Bank Savings Account

After completing the above process, I was able to view my new Sallie Mae bank account with a zero balance. One enticing feature about Sallie Mae’s high-yield savings account is the ability to link the account to a Upromise account. I’ve been using Upromise for many years, but I no longer use a Upromise credit card. Even without the branded credit card, I earn a few dollars a year.

With a Sallie Mae bank account, I will be able to withdraw any balance over $10 from Upromise. Until recently, the only way to withdraw money from Upromise was to invest it directly into an education investment account, use it to pay off certain student loans, or to request a check for balances over $200.

I was disappointed to see that the only format options for downloading transactions are “Money,” a software no longer in production, and “Excel.” There is no support, either through Direct Connect or Web Connect, for Quicken. In the Quicken desktop software, Sallie Mae is not listed as a supported bank for downloads. Additionally, neither Mint nor Yodlee currently support Sallie Mae. This bank account is a new offering, so this situation might change within a few months.

Once the external funding account is verified, through the typical micro-deposit technique, you will be able to transfer funds at will as well as establishing an automatic recurring transfer.

Conclusion

Sallie Mae’s high-yield savings account may be too new to make a final judgment. The account opening process was the smoothest I’ve ever experienced, even quicker than Discover Bank’s process. I did not need to refer to an email or a welcome package in order to access my account online. The Upromise integration is exciting. This account is a must for anyone with a Upromise account who does not have any education-related savings or investing needs.

What do you think of Sallie Mae Bank’s high-yield savings account?

Bank data

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Sallie Mae Bank Savings Account Opening Review

I never thought I’d put an exclamation mark on a sentence about credit card statements, much less be sincerely excited about it, but here we are. You have to pick your battles in life, and clearly-displayed information is one of mine. Educating people about credit card danger is another. Today, I feel like I’ve won a battle, or at least helped.

In addition to the rest of the recent changes to U.S. credit cards, any statement made after Feb. 22 will be including some information about your interest rate, penalties, minimum payments and the like. By law, this information has to be clear and obvious.

On my most recent statement, it looks like the picture below, front and center on the first page. The part that makes me unexpectedly giddy is outlined in red.

If I make only the minimum payment, it will take 11 years to bring the balance to zero. This is obvious to people who had the right education, or who made an extra effort to calculate it for themselves, but now it will be obvious to millions more.

Will it help everybody? No, not everyone looks at their statements, and some of those who do see it won’t let it sink in, or be able to change their behavior right away. But I know that if I had this information on my statements starting around age twenty, I would not have gotten into as big a mess as I did.

Frankly, I was hoping for graphs, or more bold text, but this will do for a start.

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The New Credit Card Statements Are Here!

The giveaway has ended. Thanks to everyone who has participated. The winners will be notified shortly.

Thanks to the team at Intuit, Consumerism Commentary has “extreme finance” packages to give to our readers. This is a complete package that covers personal finance management, tax filing, and even business accounting. Five of these packages are available. Although the company balked at my initial idea of giving away free tax filing for life, I’m happy to say we were able to come up with something just as extraordinary.

This has the possibility of being a popular giveaway, so I am offering Consumerism Commentary readers a number of ways to qualify. But first, here is what is included in the “extreme finance” package, worth up to more than $300 each.

If you win, you will be able to select your choice of tax software, personal finance management software, and business accounting software.

The winner will choose one of the following options for filing taxes:

• TurboTax Online Deluxe
• TurboTax Online Premier
• TurboTax Desktop Deluxe
• TurboTax Desktop Premier
• TurboTax Desktop Home & Business

The winner will choose one of the following options for managing personal finances:

• Quicken Essentials for Mac
• Quicken Deluxe
• Quicken Premier
• Quicken Home & Business

The winner will choose one of the following options for handling business accounting:

• QuickBooks for Mac
• QuickBooks Simple Start
• QuickBooks Pro

I’d like to point out that in addition to the above software, Intuit provides these free options. For filing your taxes, you may qualify for the TurboTax Online Federal Free Edition and for managing your personal finances, you may be satisfied with Mint.

In order to win this giveaway, readers can accumulate points. Each point represents one chance to win one of five of these “extreme finance” packages. The maximum number of points is 20. In other words, if you follow each of the suggestions, you will be 20 times more likely to win than someone who just leaves a comment below. Here is what you can to in order to increase your points:

• Leave a comment below (one point)
• Include in your comment a Quicken or TurboTax tip (two points)
• Subscribe to the Consumerism Commentary RSS feed (two points)
• Follow @flexo on Twitter and let me know that you have in a comment below (one point)
• Retweet the giveaway on Twitter: “Pls RT! Awesome TurboTax/Quicken giveaway from @flexo! http://bit.ly/aH8vnR” and let me know that you have in a comment below (two points)
• Become a fan of Consumerism Commentary on Facebook and let me know that you have in a comment below (two points)
• If you have a blog or other website, link to this article (three points)
• If another reader mentions in their comment that you referred them to the contest, you will receive up to seven matched points as the referrer

Of course, if you already subscribe to the RSS feed, if you already follow @flexo on Twitter, or if you are already a fan on Facebook, let us know in the comments. You do not need to re-do these actions in order to receive points.

When you comment, don’t forget to let us know what additional actions you have taken to ensure you’re awarded all your points. Also, if someone referred you to the contest, let us know who referred you so the referrer can receive their matched points.

This giveaway will remain open until Friday, March 12, 11:59 PM Eastern Time. Your comment must be posted and all actions must be complete by that time in order to be awarded your points. You will need a mailing address in the United States and must be at least 18 years old to qualify.

Now for some fine print. Intuit is providing this software directly to Consumerism Commentary readers. The software is being provided independently of the recent review of TurboTax Online and any other software reviews posted on Consumerism Commentary. Consumerism Commentary is an authorized affiliate of Intuit.

The giveaway has ended. Thanks to everyone who has participated. The winners will be notified shortly.

Check out the Intuit product blogs for QuickBooks, TurboTax, and Mint.

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Giveaway: 5 Extreme Finance Packages (TurboTax, Quicken, and QuickBooks)

Last year was the first year I abandoned my own tax return preparation, deferring to a professional to do the dirty work. I’m glad I did; he suggested I restructure my business retroactively, resulting in a savings of about $15,000. I still haven’t seen most of this; the IRS is still processing my amended 2008 return.

As you could probably guess, my taxes are more complicated than most people’s. For many years, I was able to take care of my tax filing using online software. Prior to using TurboTax Online, I completed the forms by hand and sent the paper forms through the mail. At the time, I had one W-2 and one or two 1099-INTs to worry about — no Schedule C, no deductions, nothing remotely interesting.

Unfortunately, I made a miscalculations the last year I filed by hand. the IRS caught the error and corrected my return, and I was required to pay more money at a time I was not fully prepared to do so. I decided I would trust a software program to calculate my taxes in the future. I started with TurboTax Online, alternating occasionally with TaxACT.

This year, TurboTax Online is featuring several new or enhances features.

Tax deductions and credits

The 2009 tax year is interesting. There are about $13,000 worth of credits and deductions available to taxpayers. The company estimates that 95% of all taxpayers will qualify for at least one credit or deduction. Thanks to a government looking to wrest the economy from the throes of recession, there have been two major additions to the list of tax credits for 2009: the Making Work Pay Credit (2009 Economic Stimulus) and the New Home Buyer Tax Credit, The latter is not just for first-time home buyers anymore.

TurboTax has been updated to include even the most recent changes to the tax law. If you answer the software’s questionnaires correctly, TurboTax will let you know what you qualify for.

Improved error-checking

TurboTax now checks for errors as you go along. In most cases the software will provide immediate feedback. In previous years, most error checking would take place in a final step before printing or filing.

Bookmark or flag pages

While TurboTax estimates that most people will complete their tax returns in two sittings, I usually took longer to finish entering my information. Part of the problem is I’d often come across a question for which I didn’t have my answer on hand. For situations like these, TurboTax offers a feature to flag the page. Your flags are like bookmarks. You can give each flag a name and jump right the the correct location next time you log on.

This could be helpful if you don’t have a dependent’s Social Security number at the time you start completing your tax return. Once you come to this question, you could flag the page and continue through the forms. You could complete your entire return if you have the information available, and return at a later time to provide the missing Social Security number and file.

Live help from the TurboTax community

If you have any questions while completing your tax return, you can search for answers provided by other TurboTax users. TurboTax employees monitor these answers, so in most cases, the information you receive will be confirmed to be legitimate. Remember that most people answering these questions are not professionals.

Answers are rated by the community, and some participants are designated “superusers” and “pros.” Pros are tax professionals, verified by TurboTax. These ratings and designations help improve the chances that the information you receive is correct.

TurboTax offers an option to “Ask Tina a Question.” Tina generates automated responses to simple, frequently-asked questions.

Conclusion

These features help to place TurboTax Online among the top software options for filing personal and business taxes online. One additional point I’d like to mention is that the TurboTax team is more accessible than any representatives from any other company I’ve ever done business. You can find the team anytime on Twitter (follow TurboTax, TTaxChels and TurboTaxAshley) to hear the latest about TurboTax or to have your questions answered by someone from Intuit.

Keep reading Consumerism Commentary. In a few hours, we’re going to announce a major giveaway involving TurboTax. This will not be an ordinary giveaway.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

TurboTax Online Review, New Features

Today’s guest on the Consumerism Commentary Podcast is J.D. Roth, founder of the website Get Rich Slowly.

J.D. has made the transition from blogger to published author. In this episode, Flexo, Tom Dziubek, and J.D. discuss the financial advice in his new book, Your Money: The Missing Manual. We also discuss the process of publishing J.D.’s first book.

If you enjoy this podcast, please vote for us in the First Annual Plutus Awards for “Best Personal Finance Podcast.” Thanks!

Table of contents

[00:00] Introduction from Tom Dziubek
[00:33] Interview with J.D. Roth
– [00:53] J.D.’s background
– [02:33] Your Money: The Missing Manual
– [04:11] The correlation between wealth and happiness
– [06:32] The tyranny of stuff
– [10:18] Playing mind games with yourself
– [13:36] Asking for help
– [14:18] The perfect is the enemy of the good
– [16:45] Focusing on small or big spending choices
– [18:59] Becoming a published author
– [20:01] Getting an agent
– [23:20] Marketing the book
– [25:07] A second book from J.D?
[26:48] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Podcast 46: Your Money: The Missing Manual, J.D. Roth

I wrote last November about a rollout in my city to upgrade everybody’s power meters to the “smart” kind which should allow the power companies to operate and communicate remotely with our electricity. They should also enable us consumers to have more data about which devices in the house waste the most energy.

It appears that in the first month after some people got upgraded, their electric bills went up much higher than normal, in some cases twice as much as the previous month. I heard reports on the radio of electric bills up to $500 or $1,000.

Oncor, the company who is foisting the new meters on us, has offered a few different explanations and initially denied that there was anything faulty with the meters:

• people are using more electricity due to record cold temperatures
• the old meters were actually running too slowly, and the new meters are more accurate
• 75% of the people complaining about higher bills don’t even have the new meters yet
• Oncor has tested thousands of meters and hasn’t found a fault in any of them
• sometimes when the installer reads the old meter, he/she makes a mistake

Yesterday the Texas Public Utility Commission agreed to hire a third-party tester to see if they can find any problems. The hilarious-but-not-really part about that is:

Eventually, the commission might hike electric delivery rates for all consumers to pay for the program.

So, we’re paying $2.12 per month for eleven years for the new meters, we’re paying higher rates, and we might be paying to find out if the higher rates are fake or not.

Proper customer service rules dictate that if your customers are surprised with bills at a rate twice as high or more, you refund the money and immediately investigate the obvious problem, at your own expense. Other cities with smart meters have seen similar complaints, and I’m anxious to see how this turns out. I don’t have a smart meter yet, though I am helping to foot the bill at $2.12 a month. At the very least, in a truly free market, people would be able to pick a meter style, or pick an energy company that offered a different choice. But for the time being, we’re stuck.

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Dallas’s Smart Power Meter Problem

I can’t completely fault companies like Amway, Mary Kay, and Lia Sophia. They know that friendship results in two important qualities: trust and guilt. These two qualities are important to companies because they make the process of selling products much easier. I find it relatively easy to politely decline — and hang up on if necessary — a salesperson who calls me uninvited in order to get me to upgrade my phone service or subscribe to a theater. Although I usually don’t have a problem, it can be more difficult to say no to a friend.

In most cases, people join these multi-level marketing (MLM) programs not because they believe in the product but because there is a system designed to allow them to earn significant amounts of money if they play the game right. If you are an influencer in your social circle, you will be able to convince your friends to sell products and host their own parties increasing your income. “Party” is just a code word for “sales pitch.” You can’t achieve success as a multi-level marketer without burning some relationships.

MLM isn’t the only issue. Everyone knows someone who is a social seller. From my observations, the products involved are almost always low quality, too expensive, or both. For example, someone in my office was trying to sell Girl Scout cookies to co-workers the other day for $4 a box. When asked, she had to explain that $4 was the real price and she was not artificially marking the price up. That’s a difficult sell when another co-worker was offering boxes of Girl Scout cookies for $3.50 a piece a few months ago.

I like these cookies, so I usually buy a box each year. Although I’m driven partly by my enjoyment, I’m also driven by guilt. One box of Girl Scout cookies is as far as I’ll go, however.

Dealing with co-workers trying to sell you products you don’t want is easier that dealing with friends who try the same tactics. When a friend is the seller, pressuring you to come to a party (a code word for sales pitch), you have to be strong.

• First, you can consider going to the party. Don’t bring any money and don’t bring your credit cards. If you see something you truly like and is a good deal, it will be available from your friend later.
• Politely decline. If you buy from your friend and there is a problem with the product, your friendship could be ruined. If the seller is a co-worker, you could be making your work environment uncomfortable. There are many stories about friends disappearing or not answering calls once they take their money, and the sale could go bad no matter how close you are with your friend.
• If sales pressure continues, make it clear you are not interested. Sometimes you have to say more than, “No.” Just explain that you’re not interested in the products and you’d prefer to keep the relationship away from business.

Unfortunately, just by denying a friend, you might lose your connection. That may be the fear that prevents people from saying no more often. Saying no is fine, because a good friend won’t use you for their own financial benefit, and a good friend won’t pressure you into something in which you’re not interested.

How do you deal with friends who want to sell you products?

Photo: Pictures from Heather

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When Your Friends Become Social Sellers and Multi-Level Marketers

This article is presented by Kelly Whalen, Consumerism Commentary staff writer, who hosts a weekly internet show called the ¢entsible show.

Unexpected income is a problem many people would love to have, but it happens more frequently than people realize. Whether it’s a $20 birthday check from your eighty-something grandmother or a raise, there are few months we don’t have something unexpected.

When you get a windfall you could dream up many ways to spend or save it, so it is important to have a plan.

One-time income

You may find yourself with one-time income when your receive rebate checks, tax refunds, or birthday money, or if you sell something you own. Unless you are like Ebenezer Scrooge you’ll probably have the urge to spend some of this extra cash. The best way to deal with extra cash is to prioritize.

If your windfall is under $50, it’s a good idea to use this as fun money. $50 doesn’t go very far when you try to split it up, and unless you are $50 away from a savings goal or debt repayment, it will be pretty painful to put it away.

If your windfall is over $50 but under $100, put it towards debt. If you don’t have any debt use this as a little boost to your savings goals. If you have a favorite indulgence under $5, perhaps a hazelnut latte or a particular gum, spend a little on that so you don’t feel completely deprived.

If your windfall is over $100, plan to split it between spending and savings (or paying off debt). A good rule of thumb is to use a 50/50 split, though in some houses, like mine, that may be a 50/25/25 split.

If your windfall is over $1,000, I would highly recommend using it to (in this order):

• Pay off high interest debt.
• Boost your emergency fund.
• Save for a long term goal such as saving for a home.

Regular unexpected income

Whether your side business suddenly takes off or you get a raise from your job, careful planning will keep you from lifestyle inflation. Lifestyle inflation is an increase in cost of living corresponding to an increase in salary. No matter how much extra income you earn, you need to have priorities.

If you are in debt, paying off your debt should be your first goal. Do whatever you can to make that happen as quickly as possible. The easiest way to pay off debt is to have your money automatically deducted from your checking account the day after your paycheck arrives.

If you are out of debt, or have a comfortable amount of debt (many people consider a mortgage comfortable debt), you should consider saving all of your dough. It’s unlikely you will miss your hard-earned cash, because you are already accustomed to living within your means. Choose your own order of savings, but I highly recommend using the following order:

• 401(k) to the maximum employer match
• Emergency savings
• Roth IRA
• Traditional IRA
• 401(k) to the full maximum
• Long term savings

If you are already doing all of the above, you should consider using your leftover money to fund other investments.

If you are out of debt, maxing out all your retirement options, funding your children (or future children’s) college investments, and have a healthy savings account, you should consider any other income that isn’t accounted for your do-as-you-wish money.

How do you deal with unexpected raises or revenue? What do you do when you get an extra $100?

Photo: ervega

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Unexpected Income: What Should You Do With a Windfall?

Don’t forget! Consumerism Commentary is in the running to win a few Plutus Awards. The Plutus Awards are designed to celebrate the best personal finance resources such as books, savings accounts, and blogs. Vote here now before the deadline on March 16. The finalists were selected from among those that received the highest number of nominations in each category.

To be honest, since I created the awards, I am not completely comfortable being in the final running. If I do happen to win a Plutie — and given the number of fans some of the larger blogs have, it’s unlikely — I will pass the prize along to the next highest in the category.

Best of Consumerism Commentary, February 2010

• Needs Versus Wants: The Great Spending Debate
• Take a New Inventory of Your Credit Cards or Pay New Fees
• How to Handle Requests for Financial Advice
• New Credit Card Rules Take Effect Today
• How to Get Audited By the IRS
• Am I a Jerk at Work?
• Realistic Expectations for Making Money Through Blogging
• Variety of Savings Accounts: Where I Keep My Cash
• Which Should You Pay First: Credit Cards or Mortgage?
• Creating a Risk-Free Retirement Plan
• My Current Spending Vices and Devices: Photography and Coins

The Consumerism Commentary Podcast featured more excellent topics and guests including behavioral economics with Gary Belsky, tax tips for big life changes with Bob Meighan, Financial Samurai, and Toyota recalls with Jeff Bartlett from Consumer Reports.

In a few hours, Tom Dziubek and I will be recording a podcast with J.D. Roth from Get Rich Slowly about his new book, Your Money: The Missing Manual. Stay tuned; it will be an exciting show and you will hear it first here on an upcoming Sunday.

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The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Best of Consumerism Commentary, February 2010

I’ve been closely tracking changes in high-yield savings account interest rates for a few years. Having a high-yield savings account is an essential part of being in control of your finances, and it’s the perfect vehicle for the bulk of your emergency fund. There is a possibility of having too much of a good thing.

Traditional banks have caught on to the popularity of internet-based savings accounts and over the past few years have launched their own online savings accounts to increase competition. For a while this resulted in significant benefits for savers through higher interest rates. Unfortunately, the economic downturn encouraged banks to lower the interest rates offered to savers. The concept of “high-yield savings” is currently a joke.

Customers are desperate for higher interest rates, and it’s now popular for some customers to keep moving their cash to the latest savings account to post the highest interest rate on the list. There is nothing wrong with ensuring your money is always taking advantage of the best opportunity.

Before you consider chasing the highest interest rate, keep this in mind.

• It takes time to open a new account. Some account opening processes are better than others. In my experience, Discover Bank (review here) was by far the quickest and most painless while Everbank (review here) was by far the worst. The time you spend completing applications, talking to customer service, and managing yet another account has a value.
• You might be charged inactivity fees. The more you open new accounts and transfer funds out, the more you’re abandoning accounts. You may choose to leave these accounts open in case they once again offer the highest rate. Although most banks offering high-yield accounts don’t currently charge inactivity fees, they might in the future.
• You are adding clutter to your finances. Simplicity has a value. Adding more financial accounts into your life invites disorder and stress. While there are great tools to help you organize all your bank accounts, credit cards, and coins in your coin collection, you can create more peace for yourself by reducing to the smallest number of financial accounts possible. This saves time, as well.
• Bank-to-bank transfers can take several days. Is it worthwhile to move your money from one bank to another with an interest higher by 10 basis points if you don’t earn any interest during the five days the funds are “in transit?” Some transfers are faster than others, so it will take some time for you to recover the lost income during the transfer.

Although I would love to simplify my accounts, I find myself adding more only for the purpose of researching for Consumerism Commentary. I would prefer to leave all my personal cash in one bank with a history of competitive high-yield rates.

In this simpler world, here is the strategy I would take:

• Start with a high-yield savings account that consistently offers interest rates among the highest.
• Switch banks only when something frustrates me (customer service, access, or fees) or if I can earn a few hundred dollars a year by switching to a different account.

For me, this beats moving thousands of dollars and possibly wasting time opening new accounts every time one bank leapfrogs another. Have you had any success chasing interest rates?

Photo: Tobyotter

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

When It Makes Sense to Chase Savings Interest Rates

The market for Hollywood Hills homes of the stars hasn’t been immune to the real estate downturn. Although she purchased the house for $7 million in 2007, the asking price is now $4.59 million. Judging from the photographs on CNN Money, the villa looks like a great place to live.

CNN Money often profiles houses for sale. Occasionally readers see fantastic homes like Scarlett’s, and other times the website features houses on the other end of the spectrum. A few months ago I read a feature about a family that was having a hard time selling their home. It was on the market for six months, but potential buyers would pass it over. From the photographs, it was obvious this family didn’t care for their home. If you want to sell in a tough market, and you want to get a good price, you have to treat the home like a presentation.

Judging from the photographs of Scarlett’s mansion, there is not much she needs to do. The villa sells itself as long as there are enough millionaires ready to buy.

Having your home featured on CNN Money, if it is in good condition rather than a joke, could bring more attention to your sale. Although most of the millions of readers will not be looking for a home in your area, any publicity is good publicity.

Buy Scarlett Johansson’s hilltop manse, Ben Rooney, CNN Money, February 9, 2010

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Scarlett Johansson’s Home For Sale at $2 Million Loss

It’s time again for my monthly financial reporting. I’ve been posting a balance sheet online almost every month since July 2003 in order to keep myself accountable for my financial decisions. Seven years ago I was not far into my journal to financial solvency, but I was at least spending less than I was earning by then. That was not the case only a few years earlier. So I would say that tracking my progress for the last few years has been fun.

February 2010 was a short month, whether judged by the count of days or by the passage of time. This is a reminder either that I’m getting older or that I’m not leaving enough time for myself. I will be thirty-four years of age this coming month, so many readers will probably see me as young. Yet life is passing me by. At least February was a good month financially.

The stock market was volatile but ended the month on a positive note, boosting my investments. My bottom line passed $300,000 for the second time, moved by investment gains and income. I mentioned last month that income from my “side job,” that is, mostly this blog, would be unsustainable throughout the year because it included long-term deals usually not repeatable. However, I did manage to surpass January’s income without more long-term deals this month.

Continue reading to see my net worth report. Feel free to leave any questions.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Personal Balance Sheet, February 2010

I really dig movie soundtracks, by which I mean real albums of music written for the movie, not the fake soundtracks that are just collections of pop songs. Ever since I first heard the music from E.T.: The Extra Terrestrial while not watching the movie, I’ve been fascinated by the effect of feeling the movie’s emotions using just my ears.

But just like other albums, a movie soundtrack isn’t usually 100% good, and unless you’ve got plenty of money to burn, there’s no excuse to pay $10ish on $3 worth of music. I’ve got a few pieces of advice that have worked well for me in the past.

Trust the wisdom of crowds

If you have iTunes, you can sort tracks by popularity. Just click the word “popularity” in the list and the tracks will sort themselves:

Of course, you can still use this technique even if you don’t want to buy ultimately from iTunes.

Preview the whole song

We’re mostly familiar with the 30-second preview available for years on both Amazon and iTunes, but now you can listen to the entirety of most songs on LaLa.com. They also have a handy, high-quality MP3 download option.

Special terms

A lot of the time, composers will re-visit the best musical themes in the opening or end credits. Look for these terms:

• theme
• prologue
• opening
• overture
• suite
• end titles
• credits
• prelude
• medley

Or, if you were paying better attention than I usually do while at the movies, look for tracks with your favorite character’s name in them. For example, “Valerie” from V for Vendetta, “Jack Sparrow” from Pirates of the Caribbean, or “Martha’s Theme” from Doctor Who Series 3. For what it’s worth, all of those tracks have five stars in my library.

Track length

You may just want to get the most bang for your buck, so look for tracks over five minutes long. Music labels aren’t foolish, of course, so the longer the track, the more likely it is to be marked “Album Only,” which we all know is obnoxious and stupid. All it means is they won’t be getting my money for that track. But what can we do other than complain?

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Saving Money on Soundtracks

When Consumer Reports tests new cars, their staff shop just like consumers. They stop into dealerships and buy cars without giving any indication they intend to test the cars for a major magazine. Rather than receiving specially tuned or improved vehicles, the magazine takes to its test center the same cars ordinary shoppers would buy.

Testing involves both subjective and objective evaluations. Consumer Reports offers a number of short videos explaining their testing methods. featuring their 327-acre facilities. Here’s their explanation of how they test acceleration:

For the first time in six years, two American brands appear on the list of best cars of 2010. The typical criticism of Consumer Reports is that the subscribers overall tend to be more liberal than the “average American,” and this results in a favoring of cars built by foreign-owned companies. For the reliability portion of the ratings of new cars, Consumer Reports relies on subscriber-submitted reports of problems.

It seems to me that if subscribers are in fact more liberal, and there is some kind of correlation between liberalism and ownership of foreign brand cars, there are more opportunities for subscribers to report problems with the cars they own. This should lead to an overstatement of the occurrence of problems in foreign brands and an understatement of problems in domestic brands.

If there is a flaw in my logic, I’m sure someone will point it out.

Here are Consumer Reports’ picks for the best cars of 2010:

Do you own or plan to own any of these 2010 models? Let us know if you’re happy with your purchase.

Top Picks, Consumer Reports, April 2010
Additional photo: Dr. Keats

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Consumer Reports’ Best Cars of 2010

Interested in opening a savings account at Discover Bank? Read this article first.

A few weeks ago, I noted that E*TRADE Bank will be moving some customers’ accounts to Discover Bank. The only customers affected by this move are those who do not have brokerage accounts. I have a brokerage account through E*TRADE, so my savings account will not be moved.

Nevertheless, I am interested in checking out Discover Bank because they are currently offering a very good interest rate.

Click here to see Discover Bank’s current interest rate yield and apply for an online savings account.

Opening a Discover Bank Online Savings Account

Step 1. Deposits at Discover Bank are insured by the FDIC and the bank has earned a five-star “Safe & Sound” rating from Bankrate. FDIC insurance alone, regardless of the five-star rating, ensures that regardless of the solvency of the bank, I will be able to withdraw my full deposit when needed.

When beginning the application process, Discover Bank lists everything needed to open an account. The few requirements lead me to believe that the account opening process will be smooth and quick. As with all banks, an address inside the United States, a date of birth, and a Social Security number are necessary.

I choose at this point to open a savings account. Discover Bank also offers FDIC-insured Certificates of Deposit (CDs) and CD Individual Retirement Accounts (IRAs) with high interest rates as well as Money Market Accounts.

At this time, Discover Bank allows the new customer to add a joint owner to the account. I don’t plan to share this account, so I decline.

Step 2. The second page of the application determines how to fund the account. I decide to link the account to my ING Direct Electric Orange checking account with an initial deposit of $2,500 funded electronically. Discover Bank requires a minimum of $500 for the initial deposit. If you would prefer to fund your account via a wire or check, Discover Bank offers these options as well.

In order to give your consent to Discover Bank to perform an ACH transfer, you will need to provide an electronic signature.

Step 3. All that remains now is to verify the information you have provided and electronically sign the tax certification. Banks are required to keep account owner signatures on file, and Discover Bank handles this electronically as well.

Step 4. Once the bank processes your application, you will be presented with a number of security questions based on the information in your credit report. Many websites use this type of authentication now. For example, you may be asked to select the town where you lived previously from a list of choices.

Note: On the confirmation page, you will see your full account number. Save this information by printing the page now because you will need your account number later in order to activate your online access. The bank will not send it to you through email, and it will take up to ten days to receive your welcome package in the mail.

After passing the security and identity check, I received an email confirming the creation of my new account, including a partially-hidden account number. Those who decide to fund their new account via check will receive in this email the bank’s depository addresses for regular U.S. mail or overnight mail. Interestingly, wire transfers are processed through Mellon Bank rather than being sent directly to Discover Bank.

Using the Discover Bank Online Savings Account

Twenty-four hours and ten minutes after receiving the first email, I received the second in which Discover informed me my account has been funded. That is faster than I expected, considering I started the process over a weekend. This email includes a link to Discover’s website whereupon I can register to view my new account online. After verifying this email was legitimate and not a phishing attempt, I followed the instructions.

Did you save your account number? If not, you will need to call Discover Bank’s customer service. You need the account number, your Social Security number, your date of birth, and your mother’s maiden name in order to activate online account access.

After selecting a user ID, a password, and security questions, you will be able to view your account online. I was surprised to see Discover had already posted interest to my account. You can see how much I received for one day in the screen shot included here.

You can use the Discover Bank website to set up recurring transfers through their “Automated Saving Plan” or initiate a one-time transfer from a linked account. If you want to link a new account, you will be asked to enter the banking information and required to verify small trial deposit amounts. Unfortunately, the account I used for the initial deposit is not automatically considered a linked account. I must go through the process of adding the same account to the list.

Users of Quicken may be disappointed. Discover Bank does not support Direct Connect (automatic configuration of the account and transaction downloads directly from Quicken) or Web Connect (transaction downloads by logging into the website). You can, however, include Discover Bank on Mint and any other website powered by Yodlee.

Discover Bank also offers a money market account for paying bills. This type of account offers debit card access, but you will need a balance of $10,000 to earn interest at a competitive rate.

Conclusion

The process of opening a Discover Bank online savings account was smooth and quick. This is the opposite of what I experienced with Everbank.

When I called Discover’s customer service to get my account number, the representative was helpful and friendly. My call, placed on a Sunday afternoon, was answered without any hold time.

Discover Bank’s features are basic, but it meets the needs of savers with the bonus of a highly competitive interest rate. I plan on taking a closer look at the bank’s high-yield CDs in the near future.

What do you think of Discover Bank? Let us know in the comments.

Bank data

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Discover Bank Online Savings Account Review

Today’s guest on the Consumerism Commentary Podcast is Gary Belsky, author of the book Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics and Editor-In-Chief of ESPN the Magazine.

Gary and Tom Dziubek discuss behavioral economics and how understanding how we make decisions involving money can help us make better decisions.

If you like this podcast, please vote for us in the First Annual Plutus Awards for “Best Personal Finance Podcast.” Thanks!

Table of contents

[00:00] Introduction from Flexo
[00:32] Interview with Gary Belsky
– [00:47] Gary’s background
– [03:44] Behavioral economics
– [04:36] “Bonuses” vs. “Rebates”
– [06:00] Mental accounting
– [09:42] Understanding and combating your weaknesses
– [12:12] The sunk cost fallacy
– [14:06] Maximizers and satisficers
– [16:24] Ignoring the base rate
– [17:50] Self-insuring yourself through savings
– [18:24] Understanding anchoring
– [19:37] Fighting overconfidence in personal finance
[22:10] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Podcast 45: Gary Belsky, Behavioral Economics

Along with tracking my finances on Consumerism Commentary, I also mention when the situation at my day job changes. For example, two years ago I successfully posted for a higher-level vacancy in my department (as expected). Last year I mentioned when I received a lower annual bonus and raise than I would have liked.

I’ve known the amount of this year’s raise and bonus for a few weeks, and I received the bonus this past Friday. Of course, I am thankful to have a job with good benefits during this period of near 10% unemployment, but I am still disappointed in the low level of compensation. I’m not letting this bother me; knowing that I have more control of my finance regardless of what happens in the office helps me not worry about what happens there.

Are your employers still keeping raises and bonuses low, knowing that employees don’t have many options in this economic environment?

In my photography class today, we worked on panoramas. Thanks to Adobe Photoshop for making the stitching so easy. This isn’t one of mine, but here’s a good example from Flickr.

Here are some articles I’ve enjoyed recently and a reminder about the Plutus Awards.

How U.S. Olympians pay the rent. Not every Olympic athlete, even gold medalists, get multimillion dollar sponsorships. The cost of training, competing, and traveling is tremendous, and not every athlete comes from a wealthy family.

How to get your super-motivated boyfriend to marry you. Interesting article in which Sam, the author, describes five observations of men focused on careers or other goals and how the women who love them might need to adjust their expectations. Let me know what you think of this article. I think there’s an assumption here that the woman must adapt to the man, but in a perfect world the best course would involve some compromise.

Do you have to give up convenience in order to save money? I believe there are several stages to becoming financially secure or independent. There may be a time where it makes sense to save every cent possible. I went through a phase like that several years ago. I had to survive without a car (relying on friends and public transportation), eliminate cable television, and share an apartment with three roommates. Now that I’m earning more than what I need for basic expenses and long-term saving and investing, I don’t have to be as tight. I willingly give up some income in order to buy myself more convenience.

Vote for the 2009 Plutus Awards. Consumerism Commentary is up for a few Pluties. Be sure to vote for your favorite finance products (savings account, brokerage, etc.) and blogs before the ballot closes on March 16.

Photo: Richard0

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Raise, Bonus, and Weekend Reading

It’s been a couple of weeks since I shared details of my push to get rid of the credit card debt. I’ve been diligently taking out exactly $100 from the ATM to spend from Saturday morning through Friday night. That’s just for daily, personal purchases that don’t contribute to the house as a whole, though. As I suspected, it hasn’t left me with many opportunities to do something nice for my wife, and this past fortnight has forced me to keep mentally reminding myself of a few things.

It can’t all be tasty

It’s still not second nature for me to think of my weekly $100 as partially being spent on boring and annoying things like gasoline and haircuts, to say nothing of clothing. I tend wrongly to assume on a Wednesday that, “oh, I still have $50 for lunch this week,” when it’s really closer to $20.

I also really want to be the kind of husband who frequently brings home flowers, but it just doesn’t seem practical, yet.

No month is going to be normal

It seems like there’s always something abnormal showing up to make the budget be a little off. Earlier in February I paid another $200 for Level 3 Improv classes, so I had to remember to make a credit card payment of $450 for March 1st instead of $650. (I’m making payments on the higher, newer debt at a rate of $1,300 a month, but doing it twice a month to help bring the interest down more.)

It’s also sort of vacation season. We did a fantastic job this past weekend in San Antonio not going hog wild with the spending, but it’s still a tendency of mine to want to whip out the plastic when confronted with temptation, especially if I’m drinking. There’s another mini-vacation coming up in Austin during SxSW, where we have a tradition of meeting our old-school nerdy blogger friends.

Stop cheating!

Okay, so even though I used my debit card recently at Starbucks, it was because it was after the time I was supposed to go to the ATM, but I hadn’t made it there, yet. When I did find an ATM, I managed to find one that would give me $90 instead of $100.

But here are the things that got added to the newer card since February 13:

• MyFax – $10 – I almost never use this online fax service, but it seems like a really handy thing to have. I’ll make a to-do to decide one way or the other
• Mozy.com – $9.95
• Toll roads – $40
• Web hosting – $22.89 – this number fluctuates a lot, primarily because I have more domains than I know what to do with, and I can’t ever bring myself to cancel them.
• FedEx Kinkos – $8.29 – this was actually for work, so I should get it reimbursed. I almost never pay for things on behalf of my employer, so I’m not even sure what form to use, if form there be. New to-do.
• Cinematic Titanic – The Alien Factor – $9.99 – there it is. I spent $10 that I shouldn’t have on a goofy, fun movie. I’ll have to remember to find the $90 ATM again tomorrow.
• iTunes – $1.09 – Ack, I did it again! I couldn’t resist buying the Metallica song “Wherever I May Roam.”
• Mobile phone bill – $95.36 – this is $10 more than usual because of the Haiti thing.

So, I had two moments of weakness, but I have a way to make it up to myself. The particularly annoying thing about this past fortnight is that I had to get another haircut after just 10 days, because the first time I sought out a proper manly barber, he did a terrible job, and two days ago my head looked like a dirty blond helmet. I don’t know, I think his eyesight is going, because the straight razor performance was abysmal, too.

What about the legacy debt?

For paying down the legacy credit card, I’ve only been using “extra” money: the cash that comes in from jobs like writing here. This year I switched payments from my name to our little corporation, and the corporation just got paid for the first time. What I’m supposed to do now is have the corporation pay me a “reasonable salary” and then use that money to pay down the credit card.

Does anybody have advice for figuring out what a “reasonable salary” looks like?

You can cheer me on and/or witness my money minutiae on Twitter if you want to.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Smithee Debt Update, February 26, 2010

Today, Intuit officially launched the first new version of Quicken for Mac in years. I do not own an Apple computer, so I have not seen this software for myself. I do know from reading many reviews that the Mac versions of Quicken in the past have lagged in quality behind the equivalent Windows-based software.

As the name “Quicken Essentials for Mac” (QEM) implies, there are not as many features in this updated version for Mac users as there are in the current Windows versions.

Here are some of the features that are included.

Easier set up; faster to use: QEM offers the unique Mac look-and-feel, easy navigation, and all the keyboard shortcuts users expect on Mac. Setup only takes 10 minutes. Users simply search for their bank, and synch using their online credentials.

Broad banking support; no data entry: QEM currently imports data from 12,000 financial institutions, with support from 18,000 expected by year end. This is nearly quadruple the previous support of banks, credit unions, credit card companies, brokerage houses and lending institutions. All of that means less data entry.

Improved categorization; better understanding: QEM “learns” the most popular categories from users, improving categorization over time. This means users spend less time organizing transactions, and more time understanding where their money goes, and how to save and do more with their money.

Easy conversion: The converter feature easily transfers historical data from past Quicken for Mac (2005, 2006 and 2007), Quicken for Windows (2007, 2008 and 2009), and Microsoft Money.

As I mentioned, I do not own an Apple computer and I have no immediate plans to purchase one. I would love to hear impressions, reviews, and other comments from readers who have purchased Quicken Essentials for Mac.

Current price for download or CD-ROM: $69.99.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Quicken Essentials for Mac Released Today