Inflation of the Phone Bill

The latest published inflation rate, shows that the cost of consumer goods rose 2.7% over the last year.  Historically a 2.7% inflation rate is a great number.  However I wonder if that includes things like phone bill payments.  I am not an economist but just looking at how much we pay in our phone bills over the past 5 years as cell phones have risen in popularity is astonishing.  Consider that the average home phone bill was probably $50 and now most people use cell phones as their primary means of contact and that these bills are now at least $100 depending on your contract.  This represents a 100% increase.

I have a family of four and my kids are now 10 and 12 years old.  Nobody told me I had to get them a phone, but I did as we no longer have a home phone.  Our phone bill for 4 phones is approximately $250/month or nearly $3,000 per year.  This is a huge expense, and as I type this out I actually feel sick knowing that this is 5x what I paid only 5 years ago.  Granted our phones do more than just make phone calls.  They provide internet access, games, texting etc.  But are all those things really worth 10% of the average American income.  I don't think so.  And as soon as the contracts are up I am cutting costs dramatically.  With the internet, I can have a free home phone through the internet.  I need to show my kids what is worth paying for.  When I was a kid, we used a payphone and parents didn't worry as much.  Today you are made to feel that everyone needs to be connected at all times.  We are an insecure society, always worrying.  Maybe I am going overboard but I am sure some people feel the same way.

Oh and by the way, the Median income in the United States is an abysmal $26,344 which is a 10 year low.  I am led to believe that this number will continue to fall as unemployment rates are not improving and wage growth is significantly lower as companies find as many ways as possible to cut costs in this tough economy.

References
http://www.usinflationcalculator.com/inflation/current-inflation-rates/

A Good Old Fashion Boycott

As companies strive to cut costs in an effort to impress shareholders by increasing their earnings per share, more and more jobs are being sent overseas.  People will work for 10 times less in other countries so why not cut the workforce in the U.S and send the same work to India, China or the Philippines.  If their work is just as good as ours for a tenth of the cost then it's a win win right?

Well, the answer is not quite that simple.  For one, the American economy is still not out of a recession and really never will be as long as this continues to happen.  It is only furthering the income gap between the rich and the poor, and more importantly it is knocking more of the middle class into the lower class of the income game.

People have power in numbers and a boycott of companies practicing this extreme cost cutting should probably be boycotted if Americans want a fighting chance.  I mean these companies want Americans to buy their products, yet are not providing the jobs needed to do so.  Of course this boycott will never happen because it is too hard to unite enough people to make a damper in a companies income.  Actually we have the technology to do it, but most people lack the dedication or sacrifice to pull this off.  And who knows if companies really care about Americans anymore.  Companies go after emerging growth markets to buy their brands and what better way to do that than by employing those same people where the largest growth is happening.

These are just random thoughts and I believe the whole world should have the same opportunities as we do in the United States, however it is just difficult to swallow when it is at the expense of us.  What started as phone support for credit card and phone companies is now moving to data analysis, marketing and technology development.  Jobs aren't disappearing, they are just being moved for a lower cost alternative.

I will continue expanding on this article with hard numbers and facts instead of random thoughts.

Save Money with Coupons

The printed coupon is becoming somewhat outdated. Sure, we can still use them at the grocery store and some department stores, however most of our shopping is now being done online. I recently discovered a site called ultra store coupons which saved me $30 on my exhaust purchase for my Dodge Ram. There are many coupon sites out there, some better than this one, but the cool thing I liked about this site was that they donate to schools. Being a father who has children in school, I know the budget cuts have really hurt the school system. So if you are going to make a purchase online, go ahead and check out the site.

Financial Crisis

You would have to be in Siberia to not have noticed the recent financial crisis that is taking place in our contry. Home foreclosures and the stock market plummeting. many americans are losing money at record levels.

In my opionon, the worst is not over. Home Prices are still overvalued and our economy is scaring foreign investors which is causing them to pull money out of our equity markets which in turn causes the stock market to go down. I would consider the best thing for you to do with your money is to pay down debt. While the markets tumble or even stabilize you could probably earn 10% or more on your money by paying off credit card debt.

If you are lucky and don't have any credit card debt, then I would consider investing in Visa stock (Ticker Symbol "V"). In a struggling market I think it will at the very least hold stable and during tough times many people turn to their credit cards to pay for things which in turn has the possibility of boosting Visa's profits even more.

Hey I never said I was a fan of credit cards but the companies that issue them are profitable businesses because Americans rely on them way to much. We might as well profit off of our own stupidity.

Credit Card Advantages

Although I do not promote the use of credit cards for those who cannot handle it, sometimes if you can use a credit card responsibly, there are some nifty perks.

Savings Accumulation

Some great news, well for me at least. I finally have saved some money. It may not be much but since my last blog posting, I have saved $250.00. I have made it a habit of taking $25.oo out of each paycheck. One time I had enough money to put in $75.00.

All the experts say that you have to pay yourself first. You have to make it a ritual of taking that money and pretending you dont even have it. They recommend %10 of your income, but at this point I am not able to reach that level of income due to my expenses. However, I do plan to reach that point and even more. It takes baby steps, and I suggest anyone that doesn't think they can do it to start out small and slowly increase at a pace you feel comfortable with.

Savings-Free Money is always the best money

To help me get started building a savings, I have found several helpful promotional offers. Did you know that banks actually offer free money for signing up with them? The following are links to some of these offers.

LaSalle Bank-$100
You are required to sign up for their checking and savings account and have an initial deposit of $250. You are also required to make a purchase with your debit card. All in all this is a good deal. Fill out some forms and make a $10 purchase with your debit card and you are $90 ahead. Not bad for about an hour worth of work.
http://www.lasallebank.com/checking/landing.html

Citibank-$50
This one is a bit easier. Just sign up as a first time Citibank deposit account customer. Account must be in good standing for 120 days.
http://direct.citibank.com/cbol/07/usa/crosssell/default.htm?Promo_ID=C2M2&BTData=402107B716B61775F524B4BBBBEB0AEAC95948490FFFCF5ECEAC5C2D672A6D72&BT_AS=8&BT_CON=116&ProspectID=CF3D9AA9768E49F28CD29E5398463202

Well I just signed up for the Citibank offer and I might take advantage of the other one as well. The downside is that I dont really like a lot of checking accounts. So at the very least I just increased my savings from $40-$90. Its not very much but I am on the right track. I hope you take advantage of this as well.