SavvySugar

How The Amazing Race Winners Are Spending Their $1 Million

SavvySugar — Tue, 12 May 2009 08:30:10 -0700

California lawyers Victor and Tammy Jih form the brother-sister team who won The Amazing Race 14, and are now $1 million richer. When asked about the first thing they'd do with the million, Tammy responded:

I took my entire law school education out in loans so I will be paying that back. It would have taken me 10 years of working to pay those back so it will be nice to not be saddled with such an enormous debt. I have been coveting a pair of black peeptoe Christian Louboutins.

Victor will also use a portion of his share to pay down debt. What would you do with a $1 million prize?

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State Lotteries No Longer Recession-Proof

SavvySugar — Mon, 29 Dec 2008 04:30:14 -0800

Slim odds have prevented many of us from playing the lottery, and now the economy has more Americans resisting the urge to put $5 on the Super Lotto. With retirement savings down the drain and an uncertain job market, people aren't as willing to take a chance on the lottery.

Nationwide, state lottery sales fell about $215 million in the past few months compared to the same time last year. More specifically, they're down by about 10 percent in California and 4 percent in Texas. John W. Kindt, a gambling critic and business professor at the University of Illinois, said the decline in lottery sales "is an unusual phenomenon." Previously, state lotteries have not been affected by economic recessions.

While it's positive that Americans are being more cautious with their spending, the government programs that typically benefit from lottery sales will receive less money than in recent years. Education programs are the most common recipients of lottery proceeds - in states like CA and TX, these programs have seen about $1 billion in funding from lottery sales alone.

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I'm Asking: Would You Still Work If You Won the Lottery?

SavvySugar — Wed, 01 Oct 2008 11:00:28 -0700

I've fantasized about winning the lottery, especially on particularly tough days at work, but when it comes down to it I think that I'd still want to work after picking lucky numbers. When ilanac13 commented that it's hard to say whether or not her job is fulfilling but that she'd still work if she won the lottery, it made me curious to see how the rest of you would handle the situation. Would you keep your job, find another one that you'd like better and not have to worry about the salary, or quit altogether?

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Most Lottery Winners Blow Prizes in a Few Years: Surprising?

SavvySugar — Fri, 22 Aug 2008 06:30:34 -0700

We're constantly discussing preparation for the future around here - which doesn't mean we wouldn't know how to put a large amount of cash to use immediately - but I'd like to think most of us would use foresight and take steps to keep much of that money stored away in a safe place.

It seems that I've been giving people the benefit of the doubt, because I was surprised to learn that 70 percent of lottery winners and those who receive large amounts of cash from lawsuits and the like spend their stash within just a few years! Does this surprise you, too?

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Your Two Cents: Do You Play the Lottery?

SavvySugar — Sun, 13 Jan 2008 11:06:22 -0800

After a frustrating day at work, many of you have probably said something along the longing lines of, "If only I could win the lottery." But in reality, how many of you actually play the odds?

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Savvy Links: 10 Ways to Conquer Procrastination

SavvySugar — Mon, 05 Oct 2009 04:00:44 -0700

10 ways to conquer procrastination - Kiplinger
How the recession will lower your heating bill this Winter - Walletpop
Man wins lottery prize during embezzlement case - Yahoo News
Are consumers adopting greener behaviors or just cheap? - Consumerist
Yes, fake job references are a very bad idea - The Job Bored

Don't Charge These Purchases to Your Credit Card

SavvySugar — Fri, 10 Jul 2009 04:30:10 -0700

Whether we like it or not (and I can't imagine anybody likes it), credit card companies have gotten into the habit of monitoring the behavior of their customers based on the purchases they make. Yes, your card issuer might be watching you. And they're making conclusions about your credit worthiness based on your spending behavior.

Robert Manning, author of Credit Card Nation, partnered up with Marketplace to compile a list of the 10 things you shouldn't charge to your credit card if you don't want credit card companies to question the state of your finances.

Traffic tickets: "A lot of people who have charged traffic tickets have defaulted on their cards."
Retreading your tires: "If you've bought new tires in the past, this can look like a desperate move."
Bargain binges: "If you haven't used your credit card at a 99-cent store or at Wal-Mart, don't start now!"
Adult playthings: "Porn is seen as escapism by card companies. And guess what they're thinking you're trying to escape from? Financial worries."
Marriage counseling and therapy: "Divorce can destroy your finances. Needing therapy may also make it look like you're unstable."

See the five other purchases to avoid when you read more.

Lottery tickets: "You don't want your card company to think you're irresponsible - or a gambler."
Cash advances: "Tapping your card for cash? Or using a credit-card check to pay other bills? Not a good look."
Personal pampering: "If you don't normally splurge at the spa, don't put your facial or massage on your plastic."
Income taxes: "Whenever you rack up one bill (by using your credit card) to pay another bill (your taxes) it raises a red flag."
Booze: "Springing for too many drinks may be a sign of job stress, financial stress, or relationship stress."

Maxed Out: Quitting More Than 50 Jobs Lends Itself to Debt

SavvySugar — Tue, 27 Jan 2009 11:30:16 -0800

This episode of Maxed Out is about Ron and Jennifer, a couple living on a single income and unsure of how they'll pay next month's mortgage. Ron has been unemployed for three months due to injury, but their financial problems began 10 years ago, mainly because of his inability to retain a job - Ron admits that he has quit between 50 and 100 jobs in just one decade. They have six credit cards, two mortgages, and an emergency line of credit they used to pay the past month's mortgage. Find out more about their situation when you read more.

Financial guru Allison Griffiths says their finances are about as bad as it gets. Ron has thrown a lot of money toward trying to become a self-employed supplement salesman and personal trainer, but without success. Both Ron and Jennifer habitually buy lottery tickets in hopes they will be able to pay their bills with the winnings. But there is no lucky pot in their foreseeable future, and Allison informs them that they have a monthly shortfall of $5,507!

A whopping 96.5 percent of Jennifer's monthly take-home pay goes to their first and second mortgage payments, leaving them only $127 for the remainder of the month. Their total debt, not counting their first mortgage, is $113,000, and at the rate they are going they'll owe $256,000 in just two years.

Allison gives them tools to form better financial habits, but this couple's situation is beyond her usual advice. She gives them an ultimatum: Ron must find a job with steady income, or they must sell their home. With such limited time, they make the decision to sell their house and use the money to pay down their debt.

Three Credit Cards to Avoid

SavvySugar — Fri, 05 Sep 2008 09:30:13 -0700

While it may give you a temporary headache, reading the fine print on credit card offers does pay off. Consumer Reports composed research to narrow down the best credit cards available, and in the process it found a few so bad it had to warn us to stay away in its October issue. Here are the three cards they say are the pits; if you come across other cards with similar terms, steer clear.

First Premier Bank Card: Its 9.9 fixed APR is fine, but the card comes with first-year fees up to $276! There's a $29 account-setup fee, a $95 program fee, $48 annual fee, a $7 monthly servicing fee, and sometimes a $20 additional annual fee.
American Dream Card from HSBC: Each time you charge something you're entered into a lottery for prizes up to $25,000 and you'll be prompted to fill out surveys for chances to win additional prizes. The card comes with a 15 to 22 percent APR.
New Millennium Visa or MasterCard: There's a $59 annual fee, $100 processing fee, a 19.5 percent APR, and no grace period before your balance begins incurring interest.

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Rising to the Top Isn't Easy or Impossible

SavvySugar — Tue, 06 May 2008 11:26:44 -0700

When you kick off your career with an entry-level gig, getting your career to the place you imagine it can seem like a long, impossible road. You dream of winning the lottery, or if all else fails, moving somewhere that allows you to do minimal work while living on the beach. While these fantasies can help you through your daily grind they'll do nothing to catapult you up the career chain. Sure some people are naturally lucky in the connections they make or being in the right place at the right time, but most of us rely on a solid work ethic to help us stand out and propel our careers from neutral into drive. The Wall Street Journal recently profiled Nilofer Merchant who started her career as an administrative assistant and at 40 is the CEO of her own technology consulting firm. To see what she says about getting where you want to go in your career, just read more.

In her interview with the WSJ, my favorite thing Nilofer said was, "I've never been one to be focused on doing bigger. I have been one to focus on being better. So, I've been thinking about how to add more value to the industry, be a greater thought leader for the industry." If you aspire to follow in a path similar to Nilofer's, this is what she says about how she got to the place she is today.

Best advice: "Be the business person first. Every firm has a context of what is going on: early market or late market, leading player or not, many competitors or few. These all set the context for every single decision that is made," says Ms. Merchant. "But do we talk about it? Rarely. Marketers at all levels must know what matters to the firm. Is it growth or profit?"
Skills you need: Chiefly, says Ms. Merchant, you need "that gut, intuition or analytic mindset that helps you to find the 'thing' that will allow you to know your customer incredibly well and thus meet their sometimes unnamed, sometimes unknown needs."
Degrees you should go for: MBA
Where you should start: "Your first few jobs should be about learning," advises Ms. Merchant. "Make sure there are lots and lots of smart people who believe in a meritocracy model."
Professional organizations to contact: "I'm not much of a 'joiner' but I read about 30-plus publications, blogs, and magazines a day," offers Ms. Merchant. She suggests figuring out who the leading-edge thinkers are and pay attention to them.
Salary range: $200,000 plus

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