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.
Outrage over the vice president's approach to marriage reveals how deeply gender divides American culture.
The Washington Post ran a profile of Karen Pence, the wife of Vice President Mike Pence, on Wednesday. The piece talks about the closeness of the Pences’ relationship, and cites something Pence told The Hill in 2002: Unless his wife is there, he never eats alone with another woman or attends an event where alcohol is being served. (It’s unclear whether, 15 years later, this remains Pence’s practice.) It’s not in the Post piece, but here’s the original quote from 2002: “‘If there's alcohol being served and people are being loose, I want to have the best-looking brunette in the room standing next to me,’ Pence said.”
Some folks—mostly journalists and entertainers on Twitter—have reacted with surprise, anger, and sarcasm to the Pence family rule. Socially liberal or non-religious people may see Pence’s practice as misogynistic or bizarre. For a lot of conservative religious people, though, this set-up probably sounds normal, or even wise. The dust-up shows how radically notions of gender divide American culture.
If Republicans want to confirm President Trump’s nominee to the Supreme Court, they’ll likely have to change the rules and invoke the Senate’s “nuclear option.”
There’s an easy way and a hard way for the Senate to confirm Judge Neil Gorsuch to the Supreme Court, and it appears Democrats are going to make Republicans do it the hard way.
That Gorsuch would ultimately take the late Justice Antonin Scalia’s seat on the high court has scarcely been in doubt in the weeks since President Trump nominated him 11 days after he took office. A well-regarded judge on the 10th Circuit Court of Appeals in Colorado, Gorsuch has a legal resumé tailor-made for the Supreme Court, he’s won nearly universal praise from conservatives, and he emerged from his confirmation hearings with his reputation largely intact.
The only question has been whether Gorsuch would win the eight Democratic votes necessary to reach 60 and defeat a filibuster, or whether Democratic resistance would force Republicans to change Senate rules, invoke what’s known in Washington as “the nuclear option,” and confirm Gorsuch with a simple majority of 51 votes. Statements of opposition haveflooded in from Democrats this week, making the answer clearer every day: Gorsuch is likely to fall short of 60 votes, and Republicans will have to jam his nomination through the Senate on their own.
Under the right circumstances, choosing to spend time alone can be a huge psychological boon.
In the ’80s, the Italian journalist and author Tiziano Terzani, after many years of reporting across Asia, holed himself up in a cabin in Ibaraki Prefecture, Japan. “For a month I had no one to talk to except my dog Baoli,” he wrote in his travelogue A Fortune Teller Told Me. Terzani passed the time with books, observing nature, “listening to the winds in the trees, watching butterflies, enjoying silence.” For the first time in a long while he felt free from the incessant anxieties of daily life: “At last I had time to have time.”
But Terzani’s embrace of seclusion was relatively unusual: Humans have long stigmatized solitude. It has been considered an inconvenience, something to avoid, a punishment, a realm of loners. Science has often aligned it with negative outcomes. Freud, who linked solitude with anxiety, noted that, “in children the first phobias relating to situations are those of darkness and solitude.” John Cacioppo, a modern social neuroscientist who has extensively studied loneliness—what he calls “chronic perceived isolation”—contends that, beyond damaging our thinking powers, isolation can even harm our physical health. But increasingly scientists are approaching solitude as something that, when pursued by choice, can prove therapeutic.
Republican voters elected legislators on the basis of their refusal to compromise and a president who promised to cut deals. It’s no wonder they’re having trouble governing.
Do populist Republicans want a federal government where politicians stand on principle and refuse to compromise? Or do they want a pragmatist to make fabulous deals?
The intra-Republican conflict highlighted by last week’s failure to repeal or replace Obamacare is usefully understood as a consequence of confusion on those questions. Elected officials associated with the Tea Party, or the House Freedom Caucus, believe that they were sent to Washington, D.C., to replace sell-outs who compromised themselves by seeking earmarks for their constituents, buckling to establishment whips, or horse-trading with the Democrats.
Yet many populist entertainers, like Rush Limbaugh and Sean Hannity, who fancied themselves champions of the Tea Party’s no-compromise ethos, morphed, during Election 2016, into cheerleaders for a different kind of populist—Donald Trump—who pointedly declared that he was seeking the nomination of the Republican Party, not the conservative party, and regularly boasted during the campaign that he should be elected in large part because of his prowess as a dealmaker. Forget principle—the art of the deal was the way to make America great again.
The Trump administration may be accelerating "Easternization," argues Gideon Rachman.
Next week, Chinese President Xi Jinping will travel to the United States to meet Donald Trump for the first time. But according to Gideon Rachman, the chief foreign affairs commentator for the Financial Times, power is flowing in the opposite direction. Rachman is far from the first analyst to argue that China and other Asian nations are rising while the Western world declines, nor is he the first to cite the now-familiar statistics about China’s ballooning economy and unparalleled manufacturing might. His contribution is to help explain some of the most confounding developments of the day—from the Middle East’s descent into anarchy to the ascent of populist politicians in the West to the emergence of nostalgia as a political force—through his theory of the “Easternization” of international affairs.
The president appears to be rooting for the Affordable Care Act to fail. Here’s a guide to determine whether he’s laying the groundwork.
With the president pulling the vote to repeal and replace the Affordable Care Act, both the media and health experts have correctly zeroed in what may be the crucial test for Trump and health care going forward: governing responsibly when it comes to the ACA or sabotage. If the president is seen as purposely seeking to destroy the ACA to try to make his claims come true, he will destroy the trust he needs for any chance at future bipartisan legislation.
Unfortunately, Trump’s initial comments after the failure of the Republican replacement bill gave the impression he was cheering for the ACA to fail and for Democrats to come back crawling to work with him. But the president cannot separate himself from health-care cost increases any more than he can separate himself from the economy. For good or ill, presidents tend to own both. And the least-effective way to bring Democrats to the table to help give the president a bipartisan legislative victory would be to give every impression that he is taking non-legislative and administrative actions to sabotage the ACA.
The former hardline conservative congressman finds himself stymied by his former colleagues in the House.
Is it just me, or does Mick Mulvaney look a bit tense lately?
You could hardly blame the guy. The Great Republican Health Care Meltdown has been rough on the White House budget director, who was a central player in President Trump’s push to save the GOP’s floundering plan. But as the House vote approached, Mulvaney found himself increasingly at odds with a chunk of the conservative Freedom Caucus. Which is ironic, given that he co-founded the group and, until joining the administration, was a devout member.
While no one much liked the AHCA (How about that 17 percent approval rating!), Freedom Caucusers were particularly put off by what many considered “Obamacare lite.” The more they dug in, the huffier Trump got. He started calling out caucus members in closed meetings and through his pet negotiating tool, Twitter.
Years of misleading coverage left viewers so misinformed that many were shocked when confronted with the actual costs of repeal.
As the Republican Party struggled and then failed to repeal and replace Obamacare, pulling a wildly unpopular bill from the House without even taking a vote, a flurry of insightful articles helped the public understand what exactly just happened. Robert Draper explained the roles that Stephen Bannon, Paul Ryan, and others played in deciding what agenda items President Trump would pursue in what order. Politicoreported on how and why the House Freedom Caucus insisted that the health care bill repeal even relatively popular parts of Obamacare. Lest anyone pin blame for the GOP’s failure on that faction, Reihan Salam argued persuasively that responsibility rests with poor leadership by House Speaker Paul Ryan and a GOP coalition with “policy goals that simply can’t be achieved.”
The Sony World Photography Awards has announced the winners of its Open categories and National categories for 2017.
The Sony World Photography Awards, an annual competition hosted by the World Photography Organisation, has announced the winners of its Open categories and National categories for 2017. This year's contest attracted 227,596 entries from 183 countries. The organizers have again been kind enough to share some of the winners and runners-up with us, gathered below. All captions below come from the photographers.
The program is based on the idea that habit-forming behaviors start in childhood.
At a Berlin day-care center, the children packed away all the toys: the cars, the tiny plastic animals, the blocks and Legos, even the board games and most of the art materials. They then stood in the empty classroom and looked at their two instructors.
“What should I do now?” my son, then 5, asked.
He did not get an answer to this question for a long time. His day-care center, or kita, was starting a toy-free kindergarten project. For several weeks, the toys would disappear, and the teachers wouldn’t tell the children what to play. While this practice may seem harsh, the project has an important pedagogic goal: to improve the children’s life skills to strengthen them against addictive behaviors in the future.