Saving Interest Rate Is Not Low Enough

I’m sure that’s what all the banks think. “If only we can somehow make it 0% interest and still get people to deposite their money…”

This post is provoked as I am doing my monthly accounting and noticed this in my ING Direct Saving account.

So 1.5% is not low enough and they make it 1.4%, whaaaa….

They are really being unhelpful for those of us who are saving their money.

There are those people who think, “I will lose my money if I put them in stock market. I will not make any interest if I put them in saving. I will also lose money to inflation if I put them under my mattress. To hell with it, I’m going to spend it all.”

For sure that is not the right mentality to have, respective to saving and being frugal, but surely, we can all see why people feel that way, no?

PS. Hope everyone had a good July 4th weekend.

Originally posted 2009-07-05 16:01:24. Republished by Blog Post Promoter

Americans Spending More Than They Earn on Average

So based on a goverment study, we are spending above our mean on average o.O That’s definitely not a good thing!

Based on the article Americans spend every cent – and more:

Friday morning the government will report on personal income and spending for November. For the last 19 months, the report has shown a negative savings rate. That means American consumers are spending more than they’re taking home after taxes. The savings rate was a negative 0.6 percent in October. In other words, the typical American spent $100.60 for every $100 of take home pay.

But things aren’t as grim as the article says based on Personal Saving Rate is a Misleading Indicator, which has a lot of truth in it:

To calculate the personal saving rate, government statisticians subtract taxes and spending from personal income. Income includes wages, salaries, interest, dividends, rent received, small-business profits, and some government benefits. Excluded are withdrawals from IRAs and 401ks, as well as capital gains. This is inconsistent with how most people measure their private fiscal health.

I think whether the situation is as bad as it sounded at first. We needs to go back to the most basic rule of personal finance, to keep ourselves under control :P Keep it in mind!!

Originally posted 2007-03-06 23:33:31. Republished by Blog Post Promoter

From Subprime to FHA Loans

While catching up on my reading, and I read an article in Business Week that is simply disheartening.

The Federal Housing Administration (FHA) is a federal agency that insures mortgage, where the rate of interest is regulated and loan is insured, to provide modest people with a way to purchase a house. As the subprime sector mostly vaporized, the same people who used to market subprime loans, re-brand themselves, receive certification, and become the people who now market FHA-backed mortgages. Unfortunately, the behavior that’s generic to the subprime business did not change and as one example in the article…

XXX was an unlikely borrower. She had no employment income when she bought a three-bedroom condo in Palmetto Towers, a Hernandez property in Miami, in July 2007 for $318,000. She borrowed almost the entire purchase price from Great Country Mortgage Bankers, XXX’s loan company…

Even though now the subprime has ended, the prediction is that as this goes on, in next few years, the same thing will happened with FHA-backed loans. I said that this is disheartening because of two facts.

  1. The people who made mistakes seem to have no remorse, do not self-reflect, and are not hesitant to perform the same act.
  2. The people who borrowed in this scenario and defaulted are numerous. Many never made one payment, and at most paid for the first 3 months. It is scary to know that so many people have little foresights of their financial situation and probably made the decision while they are blind-sighted by their desires to own a house.

This is the time where we need the change and as people repeat the same actions, it goes to demonstrate how much is inner change, real change is needed where people start taking responsibility for their actions. It is unfortunate and disappointing to observe the opposite. We can keep changing the outside environment, settings, policy, rules, but while we remain the same… the same thing will keep happening. Gah!

Not talk about the executives and bankers who are yet consumed by greed to chase after money, the people who bought the home in this case and had defaulted, surely have a strong desire for a home of their own. However, owning a house doesn’t make it a home.

I will talk more about the topic of home later.

Originally posted 2008-12-02 23:59:08. Republished by Blog Post Promoter

Life is… Life is not…

As I at in the office plugging away at the keyword today, or not, since I got distracted and something hit me…

Life is not sitting in an office/cubicle for most of the day.
Life is not climbing corporate ladders.
Life is not about fame.
Life is not being super-rich.
Life is not having MacMansion.
Life is not about drama.
Life is not killing each other.

Life is compassion.
Life is having genuine relationship.
Life is appreciating what nature offers.
Life is simple.
Life is living in the moment.
Life is changing.
Life is learning.
Life is singing.
Life is playing piano.

Yes, I am a bit of a dreamer and I like it. I tell myself to work hard to move more and more toward what “Life is” everyday.

Originally posted 2008-05-07 23:18:36. Republished by Blog Post Promoter

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