You don't have to be an expert to manage your money and prepare for life's unexpected twists and turns
If you're like most people, your New Years Resolutions have already expired. You haven't lost 10 pounds, you're not going to the gym five days a week, and when was the last time you called your mother?
Chances are, your financial goals have fallen by the wayside too. I don't want to discourage you from paying down debt, saving a downpayment for a house, or any of those big goals that you may have set for yourself at the beginning of the year. But if you sort of tuckered out on the big things (or even if you're still going strong--go you!), maybe it's time to set some more achievable goals. Here are ten things you can do in an hour or less apiece to make yourself--or your household--more financially sound.
1. Join Mint I'm an unabashed fan of the site, and not just because they do some great data-mining on their blog. (Don't worry, all at the very aggregate level). It will track and aggregate your spending for you, showing you where the money is going, and what's happening to your net worth over time. If you have sort of complicated finances--as I do, living in a two-journalist household--then it's an absolute godsend at tax and expense time. And in the last year they've added goals, allowing you to set your spending, saving, and debt-reduction goals and then track how you're doing with a thermometer. It's surprisingly motivating, and it's free.
I probably spend 20 minutes a week in Mint, categorizing our expenses and monitoring our financial position. But even if you don't put in that kind of time (and most of you don't have to keep track of which meals are tax-deductible), it's still incredibly helpful at tracking the broad outlines of your spending.
2. Get your papers together If you die, someone is going to have to clean up the financial aftermath. Make it easy on them by putting everything in one place where they can find it. Dave Ramsey calls this a "Legacy Drawer", and suggests putting in a cover letter and letters to your loved ones as well as the financial papers. But we're trying to keep this under an hour, so the notes are optional. Here's what it should contain:
A list of every financial account: loans, bank accounts, investment accounts, 401(k)s, whatever. Security experts will kill me for saying this, but I'd say this list should have the account numbers, the PINs, and the passwords.
Deeds and titles to any property you own (cars, land, etc)
Birth certificate and social security card, if you have them
Information about your will/estate plans: who has them, who the executor is
Funeral instructions (if any; mine are "cheapest coffin you can find")
A list of your major recurring expenses (so people know which bills to pay)
Start by putting this in a drawer; eventually, you should move this to a safe-deposit box, and tell whoever's likely to be taking care of your final details where to find the key. This should only take you an hour--if it takes you longer than that, well, you really needed to get these documents while you could find them anyway.
3. Buy life insurance If you're single, you don't need this unless you have a kid or someone else depending on you--your job usually offers you enough to bury you. If you're married, I think you do need a little, even if you don't have kids. Married life is usually built on the expectation of two incomes: a mortgage (or lease), the cars, all sorts of other recurring expenses. At a minimum, make sure your partner will have enough to bury you and pay off any outstanding debt--including not only mortgages and cars, but credit cards and student loans in their name alone, if you own property. You don't want to have to hassle with someone coming after their half of the house or car to pay off their unsecured debt. Obviously, if your partner is at home, or makes very little money, you're also going to want to replace some of your income.
You do not want "whole life" insurance, "return of premium" or any other product that promises you to give you some or all of your money back--all this is is a savings vehicle with bad rates of return, bundled with expensive term life insurance. Buy a simple term life policy for 20 or 30 years--long enough for you to accumulate enough assets to take care of your partner if you die. You can compare rates online or mosey down to your local insurance office, but either way, this shouldn't take you too long provided that you resist the blandishments of insurance agents who will attempt to upsell you "features" you don't need. Stand firm, buy term.
4. Cancel stupid recurring expenses Remember when you thought you'd try Stamps.com? How about that credit monitoring service you signed up for eighteen months ago? The dual subscriptions to Netflix left over from before you moved in together? For many of you, I am sad to say, your gym membership also falls into this category.
Whatever it is, if you haven't used it in three months, cancel it. Cancel it whether or not you think you should be using it. You can always rejoin the gym after you've developed a burning desire to actually go. With the hundreds of dollars you will save between now and then, you will easily be able to afford any re-initiation fees.
5. Ramp up for retirement Unless you are already at the legal maximum, increase your 401(k) contribution by 1% of your income. Unless you are already pinching pennies so hard that Abraham Lincoln is actually screaming in pain, you can afford to put an extra 1% of your pre-tax income into your 401(k). Then every time you get a raise, you increase your contribution by another 1% until you hit the legal limit ($16,500) or 15-20% of your income. Almost painless, and you'll feel a lot safer in retirement. (Of course, if you want to save faster, you can--try 2% or 3%).
6. Start Saving If you don't have an emergency fund, you need one. Here's how to do it so that you almost won't notice: set up an automatic transfer into your savings account from every paycheck. Figure out how much can you afford, but even if it's only $25, transfer it from every paycheck, and resolve not to touch that money unless it's an actual emergency. (Emergency: my car won't start. Not an emergency: I really need a break, so I'm going to the beach for a week.)
The ideal way to handle this is to have a separate account that isn't linked to your other bank accounts, and to have the transfer done as part of your auto-deposit. That way, you never see the money--and I think you'll be surprised to find that you don't much miss it. But if you don't want to go to the trouble, you can do this with your regular savings account, as long as you're resolved not to touch the money in that account for anything but an emergency: just use online banking to do a recurring transfer on the same day as your paycheck hits the account.
Over time, increase the amount that you're saving. Eventually you'll have a tidy nest egg, and because the money was never in your checking account, you won't have been tempted to spend it on incidentals.
7. Rebalance your portfolio If you already have substantial assets, it's time to make sure they're correctly structured for your priorities. Are your mutual funds allocated the way that you want them, or over time, has one grown faster than the others, leaving your portfolio lopsided (many companies now automatically rebalance, but you should check.) You should also be thinking about your portfolio's life-cycle. If you're in your fifties, you should already be transitioning some of your money to bonds.
I know what you're going to say: you'll never be able to retire at those kinds of returns. My response is a piece of wisdom that I picked up from my driving instructor: "If you left late, you're going to get there late." Trying to flout that simple equation only gets you in trouble. Just as it's a bad idea to race through red lights in the hopes of making up the lost time, it's a bad idea to leave your assets in 100% equity because you're hoping that higher returns will still let you retire in comfort at 65. Risking destitution now is just compounding your earlier planning errors.
8. Make a Will If your finances are pretty simple, you can do this in half an hour with something like Quicken Willmaker, which took Lifehacker half an hour. LegalZoom will also do it for you for a pretty modest fee. If your finances are complicated--well, okay, this won't take under an hour, and you need a lawyer. But if your finances are complicated, you really need a will. If it freaks you out too much to meditate upon your own death, pretend that you are preparing this will so you can drop out of sight and assume your new identity as Agent 007 of Her Majesty's Secret Service.
9. Fix your withholding Are you looking forward to a nice big refund from the IRS this year? Don't look so happy--that refund means that you made the government an interest-free loan for most of the year. And if you're like many freelancers, and you owe the government a hefty chunk, then you may be liable for interest and penalties.
The easy way to fix either problem is to adjust your withholding. HR can help you do this. If you're getting a big refund every year, raise your exemptions; if you're having to pay, lower them. (If they're already as low as they can get, look at what you owe this year, adjust for what you'll owe next year . . . and start making estimated payments every quarter.)
10. Shop for better deals Can you get a better interest rate on your credit cards? How about your bank accounts? You don't have to follow through, if you decide thePITA factor isn't worth it. But it's worth taking fifteen minutes on the web to find out. Also worth doing: threaten to cancel your cable. You don't have to actually do it--though with Netflix and Hulu and Amazon Prime's new subscription service, it's possibly worth it. But if you call to cancel, they'll usually offer you a better deal.
With Donald Trump its presumptive nominee after his win in the Indiana primary, the GOP will never be the same.
NEW YORK—Where were you the night Donald Trump killed the Republican Party as we knew it? Trump was right where he belonged: in the gilt-draped skyscraper with his name on it, Trump Tower in Manhattan, basking in the glory of his final, definitive victory.
“I have to tell you, I’ve competed all my life,” Trump said, his golden face somber, his gravity-defying pouf of hair seeming to hover above his brow. “All my life I’ve been in different competitions—in sports, or in business, or now, for 10 months, in politics. I have met some of the most incredible competitors that I’ve ever competed against right here in the Republican Party.”
The combined might of the Republican Party’s best and brightest—16 of them at the outset—proved, in the end, helpless against Trump’s unorthodox, muscular appeal to the party’s voting base. With his sweeping, 16-point victory in Tuesday’s Indiana primary, and the surrender of his major remaining rival, Ted Cruz, Trump was pronounced the presumptive nominee by the chair of the Republican National Committee. The primary was over—but for the GOP, the reckoning was only beginning.
Given her general election opponent, she has a historic opportunity to unite a grand, cross-party coalition.
The Republicans have made their choice. Now the Democrats’ likely nominee faces a dilemma of her own: Run as a centrist and try to pile up a huge majority—at risk of enraging Sanders voters? Or continue the left turn she’s executed through these primaries, preserve Democratic party unity—at the risk of pushing Trump-averse Republicans back to The Donald as the lesser evil?
The imminent Trump nomination threatens to rip the Republican party into three parts. Trump repels both the most conservative Republicans and the most moderate: both socially conservative regular church attenders and pro-Kasich affluent suburbanites, especially women. The most conservative Republicans won’t ever vote for Hillary Clinton of course. But they might be induced to stay home—if Clinton does not scare them into rallying to Trump. The most moderate Republicans might well cast a cross party line vote—if Clinton can convince them that she’s the more responsible steward and manager.
The odds of defeating the billionaire depend in part on whether Americans who oppose him do what’s effective—or what feels emotionally satisfying.
Tens of millions of Americans want to deny Donald Trump the presidency. How best to do it? Many who oppose the billionaire will be tempted to echo Bret Stephens: “If by now you don’t find Donald Trump appalling,” the Wall Street Journal columnist told the Republican frontrunner’s supporters, “you’re appalling.”
Some will be tempted to respond like anti-Trump protesters in Costa Mesa, California. Violent elements in that crowd threw rocks at a passing pickup truck, smashed the window of a police cruiser, and bloodied at least one Trump supporter. Others in the crowd waved Mexican flags. “I knew this was going to happen,” a 19-year-old told the L.A. Times. “It was going to be a riot. He deserves what he gets.”
By handcuffing a new seriesto its online-only service, the network is trying to catch the next wave of the television industry.
What’s the easiest way to tell that we’re in the midst of a television programming revolution? Just look at what the networks, the dinosaurs of the industry, are doing to keep up. On Tuesday, CBS detailed its plans for its prospective Netflix competitor “CBS All Access,” a monthly subscription-based online service that will use a new Star Trek show to try and reel in viewers. But where Netflix’s strategy is to become a vast repository of original content, dumping whole seasons of original shows at a time for people to sample at their leisure, CBS is trying to hold onto the weekly model that has defined broadcast strategy for decades. That compromise is currently untested, but it could be the future of the medium.
It is hard to imagine his visit will produce a vast material change in the beleaguered Michigan city.
The presidency carries some strange expectations—a fact that Barack Obama, nearing the home stretch of his tenure in the White House, surely knows well by now. The president holds great power and is called the leader of the free world, yet his power—even in this age of a strong executive—is constrained on all sides. Those limitations tend to be misunderstood by people who want his help, thanks to pervasive belief in what Brendan Nyhan calls the “Green Lantern Theory of the Presidency.”
President Obama is visiting Flint, Michigan, a city poisoned by lead and bacteria in its water, on Wednesday. During his visit, Obama will be briefed by officials on relief efforts, meet with community leaders—including 8-year-old “Little Miss Flint" Mari Copeny—and deliver remarks. He will meet with Governor Rick Snyder, who has come in for harsh criticism for his handling of the crisis.
Nearly half of Americans would have trouble finding $400 to pay for an emergency. I’m one of them.
Since 2013,the Federal Reserve Board has conducted a survey to “monitor the financial and economic status of American consumers.” Most of the data in the latest survey, frankly, are less than earth-shattering: 49 percent of part-time workers would prefer to work more hours at their current wage; 29 percent of Americans expect to earn a higher income in the coming year; 43 percent of homeowners who have owned their home for at least a year believe its value has increased. But the answer to one question was astonishing. The Fed asked respondents how they would pay for a $400 emergency. The answer: 47 percent of respondents said that either they would cover the expense by borrowing or selling something, or they would not be able to come up with the $400 at all. Four hundred dollars! Who knew?
A new partnership between Google and Chrysler is a reminder that self-driving cars won’t go anywhere until the public trusts they’re safe.
Google is more than doubling its fleet of self-driving vehicles this year. But instead of adding more of its own cute bubble-shaped vehicles, or another batch of Audis, Lexus SUVs, or Toyotas like those it currently uses to test its technology, Google is working with Chrysler to build 100 driverless minivans.
In one respect, this is straight out of the so-not-flashy-it’s-actually-flashy Silicon Valley playbook. (See also: Black turtlenecks.) But it’s actually a brilliant move on the part of Google. (And Chrysler, for that matter, but that’s another story.)
For one thing, self-driving cars, when they become available for purchase, are likely to crop up first in certain kinds of environments, like small cities or large corporate campuses. A vehicle that seats eight will be attractive for businesses and institutions that might want to snap up mini-fleets of driverless cars for ridesharing.
Does the presumptive Republican nominee see African Americans and Hispanics as part of the American “we”?
Celebrating his big win in Indiana—and his elevation to presumptive nominee of the Republican Party—Tuesday night, Donald Trump spoke at Trump Tower in New York City, where he delivered a promise to heal the deep fractures in his party.
“We want to bring unity to the Republican Party,” he said. “We have to bring unity. It's so much easier if we have it.”
That will be a tall order. But as a general-election candidate, Trump will need to win over more than just Republicans. In his inimitable way, he pledged to bring together the rest of the nation as well.
“We're going to bring back our jobs, and we're going to save our jobs, and people are going to have great jobs again, and this country, which is very, very divided in so many different ways, is going to become one beautiful loving country, and we're going to love each other, we're going to cherish each other and take care of each other, and we're going to have great economic development and we're not going to let other countries take it away from us, because that's what's been happening for far too many years and we're not going to do it anymore,” he said. (That’s a single sentence, if you’re keeping track at home.)
A person’s age plays a role in when they think United States was at its peak—and Baby Boomers have a particularly dim view of the present.
Of all the themes powering Donald Trump's rhetoric, nostalgia is the strongest. Make America great again. We used to win. We're going to bring jobs back.
Republicans love a good bout of rocking-chair reminiscing. Others have noted the party's preoccupation with the word "restore," citing, among other things, Marco Rubio's newest book (American Dreams: Restoring Economic Opportunity for Everyone), Mitt Romney's super PAC ("Restoring Our Future"), and Glenn Beck's 2010 rally on the National Mall ("Restoring Honor"). When a party's central tenets include a strict interpretation of the Constitution and a commitment to traditional values, it can't avoid an existential yearning for days gone by. Trump has merely put a more populist spin on a longstanding impulse.
The Ohio governor is expected to suspend his presidential campaign Wednesday in Columbus.
John Kasich will end his bid for the presidency Wednesday afternoon in Columbus, according to multiple reports. Kasich had planned to hold a press conference at Dulles Aiport near Washington Wednesday morning, but he never took off—perhaps an apt metaphor—staying home and scheduling a press conference for 5 p.m., where he is expected to make his announcement.
The Ohio governor’s exit leaves Donald Trump as the last man standing in the Republican field. Though he’d already assumed the mantle of presumptive nominee with Senator Ted Cruz’s exit Tuesday night—after Trump trounced both of them in the Indiana primary—Kasich’s exit seals the deal. Kasich has been mentioned for weeks as a potential vice-presidential candidate for Trump, who will need to shore up his policy and political credentials ahead of the general election.