I have a love/hate relationship with my credit card company. Last week I got a little taste of both after they sent me another mailbox surprise.
You see, although my current Citi Dividends Mastercard didn't expire until 2014, they went ahead and ...
Continue reading The Latest Credit Card Gimmick: Two Different Cards, One Statement
Are You Smarter than a 5th Grader? Guess this Room Service Bill.
As I mentioned here the other day, I recently spent a fun weekend at one of those fancy pancy resort hotels in Scottsdale, Arizona.
You know the kind. This place has every amenity a Kardashian girl could ever want including a spa, the obligatory ...
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My BBQ Sauce Taste Test: My Family Bucks Conventional Wisdom (Again)
Depending on who you talk to, barbecue sauces have been around since the days of the American colonies.
Wikipedia claims that the first commercial barbecue sauce appeared around 1909. I know; please don't grill me on my source, folks.
And while most, but not all, barbecue sauces include some secret blend of ketchup, mustard, vinegar, sugar, onion, and garlic, in the United States there are a multitude of different barbecue sauce styles. For example, there's Kansas City, Memphis, Texas and Alabama styles. There's also South Carolina Sauce, East Carolina Mustard Sauce, and even something called a Lexington Dip, which if you ask me, sounds more like a dance move than a barbecue sauce.
Obviously, it's a matter of personal preference, but one thing is certain: there are as many barbecue sauces out there as there are opinions as to which one reigns supreme. If you don't believe me, walk down the barbecue sauce aisle at your local supermarket.
With that in mind, I figured what better reason to conduct yet another of my completely unscientific blind taste-test experiments?
How the Test Was Conducted
As with most of my other taste tests, I recruited a bunch of hungry family members for my expert panel. This time everyone convened in San Diego for a summer cookout at my cousin Kevin's house.
With the panel in place, Kevin and I barbecued up a whole bunch of chicken wings and the candidate sauces were applied from unmarked bowls.
After tasting a slathered barbecue chicken wing, the experts were asked to rank each sauce on a simple four-point scale -- four points for their favorites or as few as one point for those they didn't like at all. The panel was also free to note any accompanying comments they had regarding each sample.
The Expert Panel
Before we get to the results, let's once again meet our distinguished panel of experts:
Aunt Doris
Birthplace: London, England
Age: Unless you're the Queen, it's none of your darn business.
Best advice ever given to her: Shut up! (Doris only gives advice nowadays.)
Dad
Birthplace: Youngstown, Ohio
Age: 74
Best advice ever given to him: Know what your first priority in life is.
Tony
Birthplace: New Haven, Connecticut
Age: 68
Best advice ever given to him: If it sounds too good to be true, then it is.
.
Mom
Birthplace: Youngstown, Ohio
Age: 70
Best advice ever given to her: "I'm so old I don't remember."
Rose
Birthplace: Los Angeles, California
Age: What Aunt Doris said.
Best advice ever given to her: Don't ever get old. (Good luck with that. Right, Mom?)
Kevin
Birthplace: Youngstown, Ohio
Age: 58
Best advice ever given to him: Read the four Gospels. (And for you atheists: measure twice, cut once.)
Chris
Birthplace: Hemet, California
Age: As old as her tongue, but not as old as her teeth.
Best advice ever given to her: Obey God and leave all the consequences to Him.
The Honeybee
Birthplace: Whittier, California
Age: 43
Best advice ever given to her: Your husband Len is always right. (Okay, you got me. I made that one up.)
Evan
Birthplace: Escondido, California
Age: 32
Best advice ever given to him: Never quit!
Matthew
Birthplace: Fontana, California
Age: 14
Best advice ever given to him: Get off the Xbox and go play outside.
Nina
Birthplace: Fontana, California
Age: 11
Best advice ever given to her: Remember to wash your hands.
By the way, for the first time ever, my dog, Major, was unceremoniously left off the tasting panel. Don't worry; he'll get over it.
Introducing The Barbecue Sauce Competitors
While my supermarket had a score of barbecue sauces to choose from, I selected the "Original" varieties of the following seven brands: Bull's-Eye, Hunt's, KC Masterpiece, Jack Daniel's, Tony Roma's, the Albertsons store-brand and, my family's personal favorite, Sweet Baby Ray's.
Here now, in reverse order from worst to first, are the completely unscientific barbecue sauce blind taste test results, based upon the inputs of my expert panel:
7. Sweet Baby Ray's Original Barbecue Sauce
Price per ounce: $0.21
Panel Scoring: 23 points
Average Score (4-point scale): 2.1
Judges Who Gave It a Top Rating: 0
Judges Who Thought It Stunk: 1
Well, this is embarrassing. Apparently, our so-called family favorite isn't quite as good as we thought it was. Even more surprising, not a single panel member ranked this as a top sauce, which is problematic considering it was the second most expensive brand sampled. Ironically, the Honeybee, who usually swears by Ray's, complained that, "it didn't have much flavor." Another self-proclaimed Ray's fan, Kevin, gave it demerits for being sugary. My cousin Evan suggested that the poor rankings were because Sweet Baby Ray's sauce goes better with pork.
6. Albertsons Original Barbecue Sauce
Price per ounce: $0.17
Panel Scoring: 27 points
Average Score (4-point scale): 2.5
Judges Who Gave It a Top Rating: 1
Judges Who Thought It Stunk: 3
Nina was the only member of the panel to give the store-brand sauce a top mark, noting it was "tangy and addictive." You know what? I'm moving on -- I'm still in shock Ray's came in last place.
5. Tony Roma's Original Barbecue Sauce
Price per ounce: $0.19
Panel Scoring: 27 points
Average Score (4-point scale): 2.5
Judges Who Gave It a Top Rating: 4
Judges Who Thought It Stunk: 4
Four members thought enough of Tony Roma's to give the sauce top marks; Chris thought it had a "great barbecue flavor" and Mom praised its "really good taste." But just as many panelists thought otherwise. Kevin ribbed the Tony Roma's barbecue sauce for tasting "artificial, although not bad for colored gelatin." The Honeybee piled on by remarking that it tasted so much like ketchup that it was better-suited for a weenie roast. Then you have my handyman father-in-law, Tony, who summed it more succinctly: "It sucked."
4. KC Masterpiece Original Barbecue Sauce
Price per ounce: $0.19
Panel Scoring: 28 points
Average Score (4-point scale): 2.5
Judges Who Gave It a Top Rating: 1
Judges Who Thought It Stunk: 2
KC Masterpiece is generally recognized as one of the better mainstream barbecue sauces. However, for this test it ended up looking more like, well, just a decent lithograph. The Honeybee was the only panelist to give KC Masterpiece top honors, but Kevin enjoyed the sauce too, noting its pleasing "woody aroma." In a dissenting opinion, however, Chris beefed that the barbecue sauce simply tasted too much like ketchup.
3. Bull's-Eye Original Barbecue Sauce
Price per ounce: $0.19
Panel Scoring: 30 points
Average Score (4-point scale): 2.7
Judges Who Gave It a Top Rating: 2
Judges Who Thought It Stunk: 1
This barbecue sauce got blue ribbons from both my kids. Matthew, in particular, thought the Bull's-Eye brand hit the mark for its "smokey flavor."
2. Jack Daniel's Original Barbecue Sauce
Price per ounce: $0.22 (the most expensive of all brands tested)
Panel Scoring: 30 points
Average Score (4-point scale): 2.7
Judges Who Gave It a Top Rating: 5
Judges Who Thought It Stunk: 3
Jack Daniel's barbecue sauce is manufactured by Heinz, and it got more top-scores than any of the other competitors. Nina noted that she would give it a higher score if she could. Meanwhile, both Aunt Doris and the Honeybee -- who coincidentally happens to a big fan of Jack Daniel's whiskey -- praised JD's barbecue sauce for its distinctive hickory flavor. Interestingly, those who didn't like the Jack Daniel's sauce dinged it for being just a bit too hickory flavored.
1. Hunt's Original Barbecue Sauce
Price per ounce: $0.11 (the least expensive of all brands tested)
Panel Scoring: 32 points
Average Score (4-point scale): 2.9
Judges Who Gave It a Top Rating: 4
Judges Who Thought It Stunk: 1
Ah, the grill of victory! Incredibly, as with my ketchup taste test, the least expensive brand in the survey once again came out on top. Evan thought the Hunt's had a delicious sweetness to it. Rose agreed, giving it top marks for being "sweet, but not overly so." Dad liked Hunt's savory mix of spices, Kevin thought it was "perfect," and Tony thought it had a "great BBQ flavor." The only one who flat out didn't like the Hunt's was Nina, who remarked that the flavor was "just wrong."
I Know What You're Thinking ...
Hunt's barbecue sauce? Are you kidding me?
Say what you will about this experiment's unscientific methods, but it was a fair fight. After all, the blind taste test goes a long way toward eliminating preconceived notions and biases that would otherwise subtly influence the panel members' decisions.
Is Hunt's barbecue sauce "sexy?" Um, no. But in the end, Hunt's was not only the least expensive brand of all those sampled, but my expert panel also found it to be the best tasting barbecue sauce of them all -- and that's good enough for me.
Photo Credit: Public Domain Photos ...
Continue reading My BBQ Sauce Taste Test: My Family Bucks Conventional Wisdom (Again)
The Scapegoat: GE Money Takes Your Cash and Stores Take the Fall
by Angie Picardo
“If you apply for a [store name] credit card today you can get [arbitrary number]% off your purchase.” I can’t remember the last time I was able to go to a mall without being bombarded with pitches for store credit cards. I always manage to escape with a subtle “maybe next time,” but it would be nice to leave a store in a little less awkward fashion.
With the end of HSBC’s credit card business in sight, there doesn’t seem to be much competition in the store credit card market. Big names like Gap, Banana Republic, Amazon.com, and Chevron, to name a few, are backed by GE Money, a financial subdivision of General Electric that issues credit cards and handles all the financing for their consumer products.
GE Money is a holding company, meaning it can issue and manage credit cards under another company’s name, but is able to dodge some important regulations since it isn’t an actual bank. If you suddenly find your credit limit has been reduced or there are some mysterious charges on your statement -- common complaints among dissatisfied customers -- don’t expect Old Navy or Walmart to be on the other end of the line when you ring customer service.
GE Money has the power to raise interest rates, close accounts, and a million other things that can ruin consumers’ credit scores, and they rarely get any heat for it. They hide behind companies, letting them take the fall, sometimes severely affecting their consumer base.
Customer (Dis)satisfaction Guaranteed
GE Money is notorious for allegedly “losing” customers’ payments right before zero interest promos expire, and they are rumored to have stacks of identity fraud lawsuits to their name. Many of these issues supposedly arise due to miscommunication between GE Money, the store itself, and the consumer; sales associates will disclose information about their store credit card, but give some incorrect or insufficient information. Angry customers then come barging into the store, but come to find the stores are just as surprised and appalled.
If you’re looking for a way to shop, save and earn rewards, you’re better off with a regular bank credit card. Store credit cards usually have higher interest rates that are often subject to change (in their favor, not yours). A lot of the time, they offer better deals at a store than their own credit card.
Stick to the Basics
For example, the Citi Forward card gives 5% back on all purchases made on Amazon.com, while you’ll only get 3% back with GE Money’s Amazon.com card. If you frequent Gap, Old Navy or Banana Republic, you’ll benefit more from an American Express Blue Cash Preferred card since its APR varies from 17.24%-21.24%, lower than the Gap credit card’s across-the-board APR of 23.99% (variable, current as of June 2011).
So the next time someone tries to lure you into one of their “15% off the first purchase” traps, you now have a very good reason to avoid it.
Angie Picardo is a staff writer for NerdWallet, a credit card website dedicated to helping consumers find the best credit card.
Photo Credit: stevendepolo ...
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Dogs and Old Cars: Why Both Are Worthy Of Being Man’s Best Friend
I was surfing the Internet this week when I stumbled upon a brilliant essay by The Washington Post's Gene Weingarten on why old dogs make the best dogs. In it, Weingarten astutely observed:
"It's no big deal to love a dog; they make it so easy for ...
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Len Penzo dot Com Surpasses One Million Page Views!
When I wrote my first article for Len Penzo dot Com way back on December 11, 2008, one milestone I never considered reaching was the magical one million page-views marker. It's a good thing too, because during the first nine months of this blog's ...
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How to Choose a Reasonable Health Care Plan on a Budget
by Patricia Walling
Every year there are millions of Americans who struggle to afford health care. This can be due to insurance companies raising premiums, but there can be other reasons too. For example, many people who are either unemployed or self-employed (such as per diem nurses or those in other health care professions like medical coding) are unable to get the discounts that many companies offer to their employees. Many employers who have simply stopped offering health care as a benefit. As a result, many people struggle to find a reasonable health care plan that fits within their budget.
Luckily, there are options available that can help provide yourself with reasonably priced health coverage. And though it may cost a little more than you'd like, paying for health insurance before you get sick or injured is usually a much better alternative than paying medical bills out of pocket. Here are a few basic tips to consider when you're looking to choose a reasonable health care plan on a budget.
Stick to the Basics
Basic coverage policies differ a little bit depending on the insurance provider. Of course, these are no-frills policies that generally cover doctor visits and reduce the amount the policy holder has to pay for prescription medication. That doesn't mean they aren't worth it; when you are sick, one trip to the emergency room or a walk-in clinic can cost more than six months of coverage.
Consider an HMO Plan
If you visit the doctor often, an HMO may be the most cost-effective way to manage your health care as preventive services like physicals are often provided at no extra cost. An HMO is where you use in-network doctors. Thus it is important to remember that even though your favorite doctor may be right around the corner, if he is not in the network you probably won't be able to see him.
Consider High Deductible Plans
Each year, more and more people are choosing to go with high-deductible plans because they are generally very affordable. These plans are meant to protect you from a catastrophic injury or illness. Because these plans have very high deductibles, they will not protect you from having to pay out of pocket expenses for minor injuries and illnesses.
Shop Around
Always shop your options. Although many insurance companies advertise that they have low prices, but you won’t really know if they’re truly low unless you get comparison rates. Find out what the rates are for at least two or three insurance providers and then make your decision once you have some actual facts.
Pay on Time
No matter which option you choose, always make sure to budget properly and pay your premium on time. If you neglect to pay on time, your insurance provider could pause or cancel your coverage. Timing is everything and chances are when your coverage is suspended is when you will need it most.
Purchasing health insurance can be an expensive undertaking. The choices you make will affect your future should you get sick or injured, so it is crucial to chose wisely when selecting a plan for you and your family.
Photo Credit: rosmary ...
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100 Words On: Why My Dog Is Worth Every Penny I’ve Spent On Him
Earlier this month our Rhodesian Ridgeback, Major -- that's him there in the picture -- celebrated his 8th birthday. Over that time, we've spent a little over $6500 on him -- not counting the $1500 the Honeybee and I paid for him way back in 2003. ...
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Pick Your Plastic: How to Choose the Right Credit Card
by Joy Paley
Joy Paley is a guest blogger for Pounding the Pavement and a writer on the subject of becoming a nail technician for the Guide to Career Education.
There are lots of good uses for the seemingly dozens of credit card offers most ...
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If It Feels Good Do It: Maybe Strategic Defaults Aren’t So Bad After All
I bought my first home in 1990 at the top of the Southern California real estate market and promptly found myself with an "underwater" mortgage. And although I owed more than the home was worth over the next seven long years, I never walked away from ...
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Are You Smarter Than A 5th Grader? Guess the Price of This Milk.
On the way home from work today I decided to pull into my infamous neighborhood corner gas station and fill up the gas tank. Judging from the price I paid, it was most likely the most expensive gas in town. As usual.
Now even though my local ...
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100 Words On: So … How Do You Like My New Blog Layout? Me Either.
So how do you like the new setup? Yeah, I know. It sucks. In case you're wondering, about 10 days ago my website got a case of the WordPress flu and the bug eventually decimated my site so badly that I was forced to do a complete reinstall on ...
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A Simple Trick to Get iTunes Songs at a Significant Discount
I've written before about my insatiable addiction to iTunes; it's one of the biggest money leaks I have to deal with on a monthly basis.
Believe it or not, some months I'll spend upwards of $100 on iTunes songs for my iPod, although I'm trying my ...
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Quit Sniveling: How to Make Lots of Money Doing What You Hate
Readers: Nobody has written more guest articles for my blog than my good friend, the inimitable Mr. Credit Card. Today Mr. CC is going to entertain us with another of his always thought-provoking ideas. By the way, Mr. Credit Card has just updated his business charge card recommendations for 2011, so please be sure to check them out if you're looking for one.
by Mr. Credit Card
Those of you who follow my Ask Mr. Credit Card blog know that I was recently on travel, visiting California. One of the highlights of my trip was being kingly invited to Len's place for a nice burger grill.
I always buy a new book before I fly to the West Coast and, on this particular trip, I bought Andre Agassi's autobiography. It was a most fascinating read for me because he told the story of his childhood and how he became a top tennis player.
The real shocker though was at the beginning of the book, when he claimed he actually hated tennis. What?! I could not believe it when I read those words!
It turns out that Andre's father was a tennis nut, and he was determined to train his young son to be the world's number one player.
Andre describes his training when he was seven years old. His father created a tennis machine that would hit a ball close to Andre's feet. During endless hours of practice his dad would constantly stand behind him and yell at him. "Hit the ball early," and "harder" were common phrases. I guess it should be no surprise that Andre ended up becoming one of the best hitters of the ball on the rise -- and a pretty hard hitter too.
When Andre was fourteen, his father decided to send him -- against Andre's will -- to the Nick Bolletieri tennis school in Florida. At first the plan was to go for only three months. Then, the folks at the school determined that he was the best talent they had ever seen, and three months eventually became "forever."
Andre was so good that he was able to negotiate a deal that allowed him to skip school. He eventually turned professional before he was twenty. He also went on to become one of the best tennis players of all time, and one of only a few players to ever win all four grand slam titles.
As a professional, Andre was never satisfied if he lost. He maintained a coach. He even hired a fitness trainer who imposed a ruthless fitness regimen that he faithfully stuck to throughout his long career, training for many hours every day.
How to Excel at a Job You Hate
So why I am telling you all of this? Though extreme, I think Andre's story is a clear example that you can excel at something even though you do not like it, assuming you are willing to put in the effort to be good at it.
And even though Andre did not like tennis, he still put in hours of work to be good at his chosen profession. Andre not only earned lots of prize money, but also in endorsement deals with Nike and American Express.
I can think of numerous people I know who dislike their jobs and yet stick to it and earn great financial rewards. I know many folks who work for investment banks and disliked their jobs, but they stuck with it and became good at it because it paid well. I guess there was some motivation there.
You may say that I'm using examples where the financial payoffs are great for those who rise to the top, but I would counter by saying that there are great rewards in any profession when you rise to the top.
And here is the thing that sometimes gets to me: I read lots of blogs (especially lifestyle blogs) and, to me, there are too many instances where you read about folks being "unhappy" with their jobs; everybody wants to make "passive income" and work only a few hours a week. While that is a worthy aim, I think before one starts to focus their attention to entrepreneurship, one should try to focus on being the best they can be in their jobs.
Figure out what it takes to succeed in your industry and profession. You may find that it will bring great financial rewards and you may be happier as a result. And trying to be the best you can be is a trait that is necessary if you ever want to be successful at your own business.
The Bottom Line
Len is always talking about sound money principals. Spend less than you earn, yes! Save, yes! But another important part of the equation is increasing your income. Making more money is a very important part of our personal finances but, too often, the "making more money" part tends to focus on ways to acquire passive income or, even worse, making money by blogging or via network marketing.
I urge you to refocus your attention on your present occupation (whether you like it or not) because I suspect we all can put a little more effort in getting ahead in what we currently do, and reap the resulting financial rewards. Even if we don't like what we're doing.
Editor's Note: Mr. Credit Card told me those were the best burgers and hot dogs he had ever eaten! Okay, not really. But he did have multiple helpings.
Photo Credit: loneymops ...
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A Look Back at 12 Years of Spending Data: My 2011 State of the Household Report
Since 1999 the Honeybee and I have used our trusty Excel spreadsheet to steadfastly track how we use every dollar earned that is not siphoned off by federal and state taxes, or automatic retirement contributions. Over the years, this disciplined ...
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My Ketchup Taste-Test: Upset! Guess Which Brand Topped Heinz
Ketchup is the most popular condiment in the United States, and if you ask one hundred people what their favorite brand is, ninety-nine will usually say Heinz. As for the other guy, he'll simply say he doesn't like ketchup, period. It's true.
Then ...
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How Being Absentminded Resulted In A $2750 Year-End Windfall
At least I'm calling it a windfall. Let me explain.
You see, if I leave a twenty dollar bill in a winter jacket only to rediscover it after it has been hanging in the closet for nine months, that's a windfall.
Now I can hear a lot of you out ...
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The Penner Awards: The 10 Craziest Money Blunders of 2010
As 2010 comes to a close, I think it is only appropriate that I share my picks for the ten dumbest money stories of the past year, highlighting some of the most dumbfounding displays of numismatical naivete and financial ineptitude known to man.
That's right, folks. Welcome to the inaugural edition of the Penner awards! Ba-da-bing!
Now I know what you're thinking: Hey, Len, so why on earth should you be the one to give out such a prestigious award?
Well, as I see it, I have two very good reasons: 1) I've made plenty of stupid money mistakes myself over the years; and 2) It's that barren no-man's land between Christmas and New Year's Day where precious readers are few and far between, and so I'm really desperate for any angle right now that might bring in an extra pair of eyeballs or two. (So please tell your friends all about this piece, would ya?)
Now let's give out some Penners!
1. The Bucket List Blunder
Recipient: Dave Ismay
Background: The 64-year-old comedian wasn't amused after being told by his doctor that he had an incurable liver disease and only three months to live. Undaunted, he prepared a bucket list and was well on the way to spending his life savings -- including a $40,500 Mercedes -- when 10 weeks later he got the news that the original terminal diagnosis was in error and that his condition was treatable. Oops.
The Moral of the Story: Always be sure to get a second opinion before spending your life savings.
2. The Curse of the Cursed Money Curse (or Something Like That)
Recipients: Laura Santini, Rose Santini, an unnamed woman from Park Ridge, Illinois, and an unnamed couple from South Holland, Illinois
Background: A mother-and-daughter fortune telling team were arrested after allegedly convincing two, well, to be kind let's just say "unwitting," parties to turn over a combined total of more than $100,000 because their money was supposedly cursed. The fortune tellers promised that they would "cleanse" the money and then return it. Instead, they allegedly absconded with the cash and took off to Scottsdale, Arizona. Imagine that.
The Moral of the Story: P.T. Barnum was right.
3. The $10 Million Dollar Man (Not)
Recipient: Nick Martin
Background: Man inherits $10 million (after taxes) and immediately goes on a spending binge -- for the next ten years. Today, at age 59, he is now essentially broke and on the verge of bankruptcy.
The Moral of the Story: Apparently, ten million dollars doesn't go as far as it used to.
4. And You Thought Government Pensions Were the Bomb
Recipients: Robert Rizzo, Randy Adams, Angela Spaccia, Oscar Hernandez, et al.
Background: This past summer, in a stunning example of government corruption run amok, the Los Angeles Times revealed that Rizzo was drawing a salary of $800,000 per year as the city manager of tiny Bell, California -- a 2.5 square mile town in Los Angeles County. The Times also found that Adams was earning $457,000 per year as the police chief, and Spaccia almost $400,000 as the assistant city manager. Even the city council members were generously paid, with most members earning $100,000 per year for the part-time positions.
The Moral of the Story: In a democracy, people get the government they deserve.
5. The IRS Finally Puts "Passenger 57" on Hiatus
Recipient: Wesley Snipes
Background: After being convicted in 2008 for federal tax evasion, Snipes finally began his three-year prison sentence. The actor failed to pay any income taxes for a decade, including $38 million in income earned between 1999 and 2004 alone.
The Moral of the Story: You can protest the federal income tax law all you want but, if you're smart, you'll still pay up.
6. The Man Who Gambled On His Life -- and Lost
Recipient: Jon Matthews
Background: After being diagnosed with mesothelioma in April 2006 and told he would be dead by the end of the year, Matthews placed a $160 wager with a British bookie that he would still be alive in June of 2008. He made it and, at 50-1 odds, won $8000. Matthews then made another $160 wager, with the same odds, that he'd live to see June 2009. He did, winning another $8000 in the process. Feeling pretty good about himself, Matthews then decided to press his luck with another $160 bet -- this time with odds of 100-1 -- that would net him a cool $16,000 assuming he could make it to June 2010. Unfortunately for Matthews, he died a month short of the payoff date.
The Moral of the Story: Kenny Rogers wasn't kidding when he said "you've got to know when to fold 'em."
7. One Focked Up Movie
Recipients: Everybody and anybody who was stupid enough to buy a movie ticket to see Little Fockers
Background: My father-in-law, Tony, warned us that the movie reviews for Little Fockers were terrible. Did the Honeybee and I listen to his sage advice? Nooooooooo! After plucking down a pretty penny at the theater, we got to see for ourselves that Little Fockers was, indeed, an absolute and embarrassing stink bomb. At press time, Rotten Tomatoes' tomatometer for Little Fockers was only at 11 percent. Eleven percent! In hindsight it's all so obvious; a movie franchise usually jumps the shark by the second sequel anyway. I think movie reviewer Matt Brunson said it best when he noted that, "Enough is enough. This franchise has run its course and made its millions, but now it's time for it to fock off." Amen, brother.
The Moral of the Story: When it comes to movie reviews, never doubt the tomatometer -- or your father-in-law. Never.
8. Creative Ways to Lose Your Life Savings (Part 1)
Recipient: An unnamed 68 year old man from Southend, Essex, Britain
Background: A man lost approximately $120,000 when he placed it on the roof of his car and then drove off. The man used to keep the money under his bed, but eventually decided the car was more secure. According to the man, "We found some of the small bags empty in the street, so it’s pretty certain someone found it. I don’t hold out much hope of getting it back." Heh. Ya think?
The Moral of the Story: It's official. Storing your life savings under the bed is definitely much safer than keeping it on the roof of your car -- especially if you plan on driving anywhere.
9. Creative Ways to Lose Your Life Savings (Part 2)
Recipients: An unnamed elderly couple from Melbourne, Australia
Background: A man sewed his life savings of approximately $90,000 into the lining of an old suitcase, but didn't tell his wife. His wife ultimately donated the suitcase to a Salvation Army store. By the time the husband found out what happened, the suitcase was already sold. Thankfully, most of the money was eventually recovered.
The Moral of the Story: It never pays to keep secrets from the wife. Just sayin'.
10. The $1500 Wiener Wager
Recipient: Colin Moffatt
Background: This past May, Moffatt lost a $1500 bet after his friend successfully downed 450 hot dogs in a single month. For the record, his friend ended up spending about $400 on hot dogs and buns.
The Moral of the Story: It's probably safe to say Moffatt didn't relish paying the money but, hey, a bet is a bet. ...
Continue reading The Penner Awards: The 10 Craziest Money Blunders of 2010
Why Baseball’s Jayson Werth Is Worth $126 Million (and You’re Not)
This is a guest post from my good friend, Mr. Credit Card, from www.askmrcreditcard.com. For the past three years, his Philadelphia Phillies have been the nemesis of my beloved Los Angeles Dodgers.
I certainly feel we can learn a lot from how baseball teams run their franchises and how they develop, buy, and trade players, and then apply that to our financial lives.
The Rumors and Free Agent Market - Baseball season is over and fans and aficionados are now eagerly watching the free agent market to see which players go where and who buys who. There are several top free agents in the market, but I want to highlight two in particular.
Firstly, Jayson Werth, who is the right outfielder for the Phillies the last three years is a free agent this season. Actually, he was a free agent until he signed a $126 million, 7-year contract with the Washington Nationals earlier this month. As the top right-handed outfielder in the free agency market this year, folks justifiably expected him to demand top wages and a fat contract, and he got it. As a point of reference, Matt Holiday landed a seven-year, $120 million contract the Cardinals last off season.
Cliff Lee is also another huge free agent in the market this year. He was acquired by the Phillies in 2009, but was traded this past season because it was perceived he wanted to test the free market! He moved to the Seattle Mariners and was later traded to the Texas Rangers before the trade deadline this year. He was obviously a big factor in the Rangers charge to the World Series.
Over the past three seasons, Lee was 48-25 with a 2.98 ERA, 17 complete games in 93 starts, five shutouts, 667 1/3 innings pitched, a 1.122 WHIP.
Lee is 7-2 with a 2.13 ERA, three complete games in 10 starts in the post season.
Although Werth is now off the market, baseball clubs still have to make a decision as to whether or not to bid for Cliff Lee and, if so, what they're willing to pay him. As I eagerly watch the free agent season play out, I can't help but see the parallel between the financial decisions baseball clubs make and personal finance decisions us fans make. Here's my take.
Never Settle For Being Average - Because Top Guys Get Paid A Lot More - Some of you might be astounded by the numbers that Werth and Lee can command. Well, that is reality folks. The top guys in any industry, whether it is the CEO, company founders, music artist, make a heck of a lot more than the average Joe in the same industry.
The top hedge fund owners with billions under asset management take home a lot more than the small ones with a "couple of hundred million in assets." Likewise, top music artists rake in a lot more than than average ones, and the top movie superstars make lots more than their supporting cast mates and even the people actually producing the films! Yes, that's life.
Open a pizza shop in your neighborhood and you are still an employee for yourself and making employee wages! Open a few more stores, and your rewards go up! Franchise your restaurant nationwide and you will become a really wealthy -- and if the world world likes your product, then the gap between your wealth and that of the common folks widens to astronomical levels.
So never settle being second best. Always strive to be the best in your work, your career because the rewards for moving up the ladder are exponential indeed.
Live Within Your Means - From the players, let's move back to the baseball organizations. Yes, Jayson Werth got a huge contract. So why didn't my Phillies sign him? It's because they already have a $146 million payroll. Even they need to "budget" just like the rest of us. If they signed Werth, they would almost certainly have had to sell or trade a highly paid player to make room for Werth's salary.
On the other hand, the Pittsburgh Pirates are not exactly an elite team. In fact, their payroll was only $36 million for 2010. Contrast that to the New York Yankees ($200 million) and there is a vast gap in their resources. Since the Pirates are certainly not playoff contenders, they have to settle for much less if they want to operate with their finances in the black.
The bottom line here is, whether we are millionaires, a billionaires or thousandaires, we all have to live within our means because, unlike the federal government, we cannot print money!
Always Consider Long Terms Costs And Obligations - There is always considerable debate as to how long a contract any club should offer a free agent. Lee and Werth are obviously valuable now, but the big question is will they still be good players down the road.
In our own personal finance lives, we have to consider long-term expenses as well. For example, trying to decide how big a house can we afford. Even if we can "afford" one based on our "present income", bear in mind that our "future income" may not be the same. It could be lower!
This is not to say you should not take on any long term financial obligations. But you have to make sure you are getting great value out of it and not overpay for these items.
There Are Different Paths For Different People - The Yankees are the biggest franchise in baseball. Their huge fan base allows them to get even bigger, spend more on very good free agents and keep winning. Their strategy has always been to be the biggest franchise. This is the same strategy followed by other big sports club like the Los Angeles Lakers and Manchester United.
The Yankees do not mind paying up for a free agent because they dislike trading their farm system.
Compare them to the Pittsburgh Pirates, who are obviously not a household name. For them, being the best baseball team and having the largest franchise is not realistic. So their approach on free agents is different from high-payroll teams like the Yankees and Phillies. Since the Pirates cannot afford top-tier talent they rely almost soley on their farm system.
We as individuals also have to plan our personal finances around our goals, objectives and means. For instance, should we open a joint account? Should we save our money or use it to pay down debt? How much should we put aside for retirement? No one can answer those questions for us; we have to do what is right for us. For example, some people can afford the annual fees and perhaps benefit from carrying an American Express Platinum or a Chase Sapphire credit card, while other folks may simply choose not to carry one at all because it might lead to overspending and credit card debt.
Be Creative And Seek Value - The Phillies didn't decide to sign Werth to a long term contract, but they can still be creative and perhaps find a way to offload another player like Raul Ibanez, and then rely on Ben Francisco and Dominic Brown to platoon right field.
We face similar decisions in our financial lives as well. Which house should we buy? Which car should we buy? Should our kids go to public or private school? If money is no object, then there is no decision to make, but for most people money is a constraint, so we have to prioritize and decide which choice provides the most value.
Treat Your Household Finances As A Business - When a baseball player gets traded against his will, or if a club does not want to renew his contract, he usually says "it's only business." Yes, it is business; a baseball organization has to do what is right for the franchise. It is the same with our household personal finances. We have to approach them like a general manager of a baseball club. We need to plan ahead and make decisions that are right for our individual situation. ...
Continue reading Why Baseball’s Jayson Werth Is Worth $126 Million (and You’re Not)
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