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.
A series of damaging stories about the president's methods of consoling grieving Gold Star families represent the president’s latest entirely self-inflicted wound.
The question to President Trump on Monday sounded relatively innocuous: “Why haven't we heard anything from you so far about the soldiers that were killed in Niger? And what do you have to say about that?” It’s certainly not the kind of question that seemed likely to set off several days of heated controversy.
But the hubbub that has ensued, centering on Trump’s response to the deaths of four soldiers in Niger and, more broadly, the way he deals with grieving military families, is yet another example of how this president inflicts crises on himself. This pattern has happened several times since Trump entered office, with the tussle over the size of his crowd on Inauguration Day and his claim that Barack Obama “wiretapped him.” In each case, Trump’s bluster and his seeming obsession with Obama have led him to commit serious unforced errors.
The staggering scope of the country’s infrastructure initiative—and what it means for the international order
The Pakistani town of Gwadar was until recently filled with the dust-colored cinderblock houses of about 50,000 fishermen. Ringed by cliffs, desert, and the Arabian Sea, it was at the forgotten edge of the earth. Now it’s one centerpiece of China’s “Belt and Road” initiative, and the town has transformed as a result. Gwadar is experiencing a storm of construction: a brand-new container port, new hotels, and 1,800 miles of superhighway and high-speed railway to connect it to China’s landlocked western provinces. China and Pakistan aspire to turn Gwadar into a new Dubai, making it a city that will ultimately house 2 million people.
China is quickly growing into the world’s most extensive commercial empire. By way of comparison, after World War II, the Marshall Plan provided the equivalent of $800 billion in reconstruction funds to Europe (if calculated as a percentage of today’s GDP). In the decades after the war the United States was also the world’s largest trading nation, and its largest bilateral lender to others.
More comfortable online than out partying, post-Millennials are safer, physically, than adolescents have ever been. But they’re on the brink of a mental-health crisis.
One day last summer, around noon, I called Athena, a 13-year-old who lives in Houston, Texas. She answered her phone—she’s had an iPhone since she was 11—sounding as if she’d just woken up. We chatted about her favorite songs and TV shows, and I asked her what she likes to do with her friends. “We go to the mall,” she said. “Do your parents drop you off?,” I asked, recalling my own middle-school days, in the 1980s, when I’d enjoy a few parent-free hours shopping with my friends. “No—I go with my family,” she replied. “We’ll go with my mom and brothers and walk a little behind them. I just have to tell my mom where we’re going. I have to check in every hour or every 30 minutes.”
Those mall trips are infrequent—about once a month. More often, Athena and her friends spend time together on their phones, unchaperoned. Unlike the teens of my generation, who might have spent an evening tying up the family landline with gossip, they talk on Snapchat, the smartphone app that allows users to send pictures and videos that quickly disappear. They make sure to keep up their Snapstreaks, which show how many days in a row they have Snapchatted with each other. Sometimes they save screenshots of particularly ridiculous pictures of friends. “It’s good blackmail,” Athena said. (Because she’s a minor, I’m not using her real name.) She told me she’d spent most of the summer hanging out alone in her room with her phone. That’s just the way her generation is, she said. “We didn’t have a choice to know any life without iPads or iPhones. I think we like our phones more than we like actual people.”
A small group of programmers wants to change how we code—before catastrophe strikes.
There were six hours during the night of April 10, 2014, when the entire population of Washington State had no 911 service. People who called for help got a busy signal. One Seattle woman dialed 911 at least 37 times while a stranger was trying to break into her house. When he finally crawled into her living room through a window, she picked up a kitchen knife. The man fled.
The 911 outage, at the time the largest ever reported, was traced to software running on a server in Englewood, Colorado. Operated by a systems provider named Intrado, the server kept a running counter of how many calls it had routed to 911 dispatchers around the country. Intrado programmers had set a threshold for how high the counter could go. They picked a number in the millions.
In the media world, as in so many other realms, there is a sharp discontinuity in the timeline: before the 2016 election, and after.
Things we thought we understood—narratives, data, software, news events—have had to be reinterpreted in light of Donald Trump’s surprising win as well as the continuing questions about the role that misinformation and disinformation played in his election.
Tech journalists covering Facebook had a duty to cover what was happening before, during, and after the election. Reporters tried to see past their often liberal political orientations and the unprecedented actions of Donald Trump to see how 2016 was playing out on the internet. Every component of the chaotic digital campaign has been reported on, here at The Atlantic, and elsewhere: Facebook’s enormous distribution power for political information, rapacious partisanship reinforced by distinct media information spheres, the increasing scourge of “viral” hoaxes and other kinds of misinformation that could propagate through those networks, and the Russian information ops agency.
By lavishing infrastructure dollars on illiberal governments, Beijing is supplanting American soft power.
Along a major tributary of the Mekong River in northeastern Cambodia sits the newly opened Lower Sesan II Dam hydropower plant. The 400-megawatt dam will produce badly needed electricity for the country, but at the cost of potential major ecological damage and the eviction of some 5,000 families from the area. Such consequences are unlikely to sink the fortunes of Hun Sen, Cambodia’s strongman leader who, for 32 years, has relied on the largesse of foreign governments to fund infrastructure projects: For this latest venture, he has China to thank for footing the more than $800-million bill.
In the past, Southeast Asian nations largely turned to the United States and its Western partners to finance such undertakings; in exchange, several of them would maintain the trappings of a democratic society. But under President Donald Trump, America’s waning regional influence is opening the door for China to expand its footprint in the region, even if that means Beijing must deal with illiberal, repressive autocrats seemingly determined to remain in power forever. “I believe I can live at least 30 more years, therefore I can continue as prime minister for 10 more years. It is not difficult for me,” the 65-year-old Hun Sen remarked at the inaugurationfor the dam last month.
A new study shows that families act on insufficient information when it comes to figuring out where to enroll their children.
A person trying to choose their next set of wheels might see that car A made it farther than car B in a road test and assume it gets better gas mileage. But that’s only true if the two tanks are filled with the same substance. Putting high-octane gas in one and water in the other, for example, provides little useful information about which car makes the most of its fuel. A new working paper titled “Do Parents Value School Effectiveness?” suggests that parents similarly opt for schools with the most impressive graduates rather than figuring out which ones actually teach best. The study joins a body of research looking critically at what it means for a school to be successful.
Take the work of Erin Pahlke, for example. The assistant professor of psychology at Whitman College saw research showing that girls who attend school only with other girls tend to do better in math and science. The trick, she said, is that those studies didn’t analyze “differences in the students coming into the schools.” As it turns out, those who end up in same-sex schools tend to be wealthier, start out with more skills, and have parents who are more proactive than students who attend co-ed institutions. In a 2014 meta-analysis, Pahlke and her colleagues reviewed the studies and found when examining schools with the same type of students and same level of resources—rather than “comparing [those at] the public co-ed school to [their counterparts at] the fancy private school that’s single-sex down the road”—there isn’t any difference in how the students perform academically. Single-sex schooling also hasn’t been shown to offer a bump in girls’ attitudes toward math and science or change how they think about themselves. In other words, it often looks like single-sex schools are doing a better job educating kids, but they aren't. It's just that their graduates are people who were going to do well at any school. They’re running on high-octane gas.
Despite claiming he was better at consoling the families of slain servicemembers than his predecessors, Trump offended the family of La David Johnson and skipped calls and letters to other grieving loved ones.
Thirteen days after Sergeant La David Johnson was killed in Niger, and a day after Donald Trump boasted about his actions to console grieving families in contrast to his predecessors, the president called Johnson’s family Tuesday night.
It didn’t go well.
Representative Frederica Wilson, a Florida Democrat, was with widow Myeshia Johnson when Trump called. “She was crying the whole time, and when she hung up the phone, she looked at me and said, ‘He didn’t even remember his name.’ That’s the hurting part,” Wilson told MSNBC.
“He said, ‘Well, I guess you knew’—something to the effect that ‘he knew what he was getting into when he signed up, but I guess it hurts anyway.’ You know, just matter-of-factly, that this is what happens, anyone who is signing up for military duty is signing up to die. That’s the way we interpreted it. It was horrible. It was insensitive. It was absolutely crazy, unnecessary. I was livid.”
Attractive, agreeable, and clean people are more likely to get married. Surprise?
Sometimes, after meeting a friend’s significant other, someone will observe that the man or woman in question is “the marrying type.” Others around will nod wisely and pensively sip their drinks. (I imagine this sort of thing happens in a dimly lit bar, where the friends have convened to imbibe and pass judgment.) What exactly identifies this person as the marrying type is unclear—maybe it’s a certain sparkle in their eye, or maybe they have helpfully tattooed a dotted outline on their left ring finger where a wedding ring might go.
But science is not satisfied with these clues. Science wants answers. What personal traits make someone the marrying type? A new study published in Social Science Research looks at how attractiveness, personality, and grooming influence the likelihood that someone will get married, or cohabitate in a relationship.
For decades a respected but somewhat eccentric figure even within the jazz scene, the pianist and composer is at the peak of his influence as he reaches his centennial this month.
The peak of Thelonious Monk’s fame came in 1964, in his 47th year, when his painted portrait—dourly glowering or shyly guarded, depending on the beholder—improbably graced the cover of Time magazine.
Though widely respected by musicians, the pianist and composer had always remained an outlier even in the jazz world, set apart by his singular musical vision as well as his eccentricity, yet his Time cover seemed to represent his ascension to the heights of American culture as a whole.
When the cover was slated to run in November 1963, the nation’s No. 1 hit was the old standard “Deep Purple,” and jazz still seemed dominant. But after John Kennedy was shot, Time bumped Monk. By the time the story ran in February1964, “I Want to Hold Your Hand” had begun a dominant run as the Beatles’ first No. 1 in the United States. Jazz was over as a mainstream force in American culture and so, arguably, was Monk. From then until his death at just 64, in 1982, he struggled increasingly with ailments physical and mental, stopped writing new music, experienced increasing critical disdain, and finally disappeared from view for nearly a decade.