Comments on: Five Mistakes Twentysomethings Make With Their Money http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/ Adding a punchline to your bottom line Tue, 06 Jan 2009 02:35:24 +0000 http://wordpress.org/?v=2.6.2 By: Pinyo http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-89352 Pinyo Tue, 07 Aug 2007 22:19:58 +0000 http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-89352 Credit cards are like beers...they are rewarding if you use them responsibly. I use credit cards to pay a lot of my bills and get hundreds of dollars back in cashback reward. Otherwise, your post is on the right track. Credit cards are like beers…they are rewarding if you use them responsibly. I use credit cards to pay a lot of my bills and get hundreds of dollars back in cashback reward.

Otherwise, your post is on the right track.

]]> By: CW http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-88690 CW Sat, 04 Aug 2007 16:26:51 +0000 http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-88690 unlike your commenter, and Mike Busse, I take exception w/ the advice regarding credit cards. Granted, the point is well made given the audience (i.e., clueless 20-somethings who are prone to spend well beyond their needs to satisfy their fix for instant gratification)... but, I think the advice to use a debit card instead is a poor solution. For one, debit cards (unlike credit cards) don't offer the fraud/liability protection and ability to dispute transactions in the same way a credit card does. If somebody gets ahold of your debit card and buys all kinds of crap (either emptying your account or, more likely, causing you to go into the red and incurring all kinds of NSF's fees), you are left at the mercy of your bank in disputing the claims (and, unlike a credit card, you normally aren't given a reprieve for the amount owed until the dispute is settled... likely leaving you SOL if you needed that money from your checking account for real "needs" like bills or w/e). If this is our financially clueless 20-something year old, I find it hard to believe they could weather such an event, especially given the current banking practice of maximizing fees whenever misfortune permits. Banks will gladly keep approving those point of purchase transactions (taking you for the overdraft + ~$35 NSF fee for each transaction) and it is very iffy that you will win the dispute (since debit cards don't offer the legal protection that credit cards enjoy under federal regulations/laws). Therefore, horrid advice to use debit cards for ANY type of transaction (it makes me cringe every time I hear ppl talk about them in this fashion). If the intent is to limit buying to actual net worth, the solution is simple: CARRY CASH AND BUY THE STUFF WITH THE BLOODY CASH! Sure, if you lose a wallet/purse your out how every much you were carrying and a person can still use your debit card and give you a headache. The big difference, though, is that a lost wallet/purse is normally a lot more noticeable than if you mistakenly set your ATM card down at the checkout line in the grocery store. This gives you more time to notify your bank, cancel your cards, and preempt and ID theft. But, to each their own. If you ppl think credit cards are evil because you lack the self-discipline to use them RESPONSIBLY, then you need to plan accordingly. I, however, will gladly continue to borrow money from the card companies interest free and earn thousands of dollars in interest and dealing with all of the "pressure" of paying it back (via automatically arranged online billpay through bankofamerica that takes me a whole 5 min. to set up... and a few minutes each month to monitor/double-check). People who cannot use cards responsibly, or who are too afraid of their own inner-demons to exploit the cracks in the system, fund all the bonuses and 0% money that ppl like me enjoy. Which brings up another point (that I won't even touch on, 'cause I doubt anyone would bother reading such a disjointed mess)... but, though this is evaporating (as with the 0% APR offers), I have received hundreds of dollars in gift cards for opening new accounts... as well as earning 5% cashback on ALL my purchases at drugstores, grocery stores, gas stations and the odd travel purchase based on whatever rewards Discover is offering at the moment. Granted, the notion that they are "earning rewards" will leave some saying that it just encourages people to spend more $$$... again, if you have self-discipline and act RESPONSIBLY, such isn't a problem. unlike your commenter, and Mike Busse, I take exception w/ the advice regarding credit cards. Granted, the point is well made given the audience (i.e., clueless 20-somethings who are prone to spend well beyond their needs to satisfy their fix for instant gratification)… but, I think the advice to use a debit card instead is a poor solution. For one, debit cards (unlike credit cards) don’t offer the fraud/liability protection and ability to dispute transactions in the same way a credit card does. If somebody gets ahold of your debit card and buys all kinds of crap (either emptying your account or, more likely, causing you to go into the red and incurring all kinds of NSF’s fees), you are left at the mercy of your bank in disputing the claims (and, unlike a credit card, you normally aren’t given a reprieve for the amount owed until the dispute is settled… likely leaving you SOL if you needed that money from your checking account for real “needs” like bills or w/e). If this is our financially clueless 20-something year old, I find it hard to believe they could weather such an event, especially given the current banking practice of maximizing fees whenever misfortune permits. Banks will gladly keep approving those point of purchase transactions (taking you for the overdraft + ~$35 NSF fee for each transaction) and it is very iffy that you will win the dispute (since debit cards don’t offer the legal protection that credit cards enjoy under federal regulations/laws). Therefore, horrid advice to use debit cards for ANY type of transaction (it makes me cringe every time I hear ppl talk about them in this fashion). If the intent is to limit buying to actual net worth, the solution is simple: CARRY CASH AND BUY THE STUFF WITH THE BLOODY CASH! Sure, if you lose a wallet/purse your out how every much you were carrying and a person can still use your debit card and give you a headache. The big difference, though, is that a lost wallet/purse is normally a lot more noticeable than if you mistakenly set your ATM card down at the checkout line in the grocery store. This gives you more time to notify your bank, cancel your cards, and preempt and ID theft. But, to each their own. If you ppl think credit cards are evil because you lack the self-discipline to use them RESPONSIBLY, then you need to plan accordingly. I, however, will gladly continue to borrow money from the card companies interest free and earn thousands of dollars in interest and dealing with all of the “pressure” of paying it back (via automatically arranged online billpay through bankofamerica that takes me a whole 5 min. to set up… and a few minutes each month to monitor/double-check). People who cannot use cards responsibly, or who are too afraid of their own inner-demons to exploit the cracks in the system, fund all the bonuses and 0% money that ppl like me enjoy. Which brings up another point (that I won’t even touch on, ’cause I doubt anyone would bother reading such a disjointed mess)… but, though this is evaporating (as with the 0% APR offers), I have received hundreds of dollars in gift cards for opening new accounts… as well as earning 5% cashback on ALL my purchases at drugstores, grocery stores, gas stations and the odd travel purchase based on whatever rewards Discover is offering at the moment. Granted, the notion that they are “earning rewards” will leave some saying that it just encourages people to spend more $$$… again, if you have self-discipline and act RESPONSIBLY, such isn’t a problem.

]]> By: Joe http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-88535 Joe Fri, 03 Aug 2007 23:04:01 +0000 http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-88535 Credit cards are definitely number one on the all-time debt list, not only for the 20s but everyone. I know many adults that have done the balancing trick of credit card debt, but we all know there's never a good end to that story! What's even worse, people will use those 0% periods to take out loans and make money on them. Putting that kind of pressure on yourself and your credit report is just too much. Just say no to debt! Credit cards are definitely number one on the all-time debt list, not only for the 20s but everyone. I know many adults that have done the balancing trick of credit card debt, but we all know there’s never a good end to that story! What’s even worse, people will use those 0% periods to take out loans and make money on them. Putting that kind of pressure on yourself and your credit report is just too much.
Just say no to debt!

]]> By: A few quick items « bleeding at the typewriter http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-88469 A few quick items « bleeding at the typewriter Fri, 03 Aug 2007 15:23:40 +0000 http://www.punny.org/money/five-mistakes-twentysomethings-make-with-their-money/#comment-88469 [...] uses a scale, offering higher pay for writers who have had more articles published on the site. I just had a short article published there. You can find submission guidelines [...] [...] uses a scale, offering higher pay for writers who have had more articles published on the site. I just had a short article published there. You can find submission guidelines [...]

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