Personal Finance Blog

Tips And Stories To Help You With Managing Money

Lower Airfares Predicted

By

For travelers all over the world, the lure of lower airfares is attractive. NASA scientists are working on eliminating a problem that just may drop airfares. Bugs are the target for this new technology. They are developing a coating to be applied to the airplane that will keep insects (and other debris) from sticking to the wings and fuselage of a craft, allowing smoother air flow and lower fuel costs.

Researchers count insect residue on the wing of the ecoDemonstrator 757 aircraft. Photographer: Paul Bagby/NASA Langley
Researchers count insect residue on the wing of the ecoDemonstrator 757 aircraft. Photographer: Paul Bagby/NASA Langley

Fuel Efficiency

NASA says the improvement in “laminar flow” reduces drag and improves fuel efficiency. Even very small bits of debris, including bug splats, can cause air turbulence that roils the airstream. The scientists describe it as tiny air waves crashing against each other.

Two Potential Coatings

Eliminating the problem would be no small deal. Two potential coatings, tested last year on the wings of a Boeing 757, showed real promise.

The projected savings in fuel costs are enormous.
“It’s like taking your car from 20 miles per gallon to 200,” said Mark Drela, professor at Massachusetts Institute of Technology and a specialist in aerodynamics.

Estimates are that successful coatings could cut airline fuel consumption by 1 percent. If that sounds like a small amount, consider that it represents 167 million gallons of fuel at a savings of 308 million a year.

Those working on the potential coatings say they would be most effective if incorporated into the design of new planes, rather than adding it to craft already in use. And as with all new technologies, it would have to prove itself effective before the manufacturers would run to get on the bandwagon. But environmentalists are pushing, because of the anticipated benefits to the air. Airplanes are blamed for a significant portion of the climate warming that is happening. Amid predictions that more controls will inevitably be placed on the air travel industry (some prospective new regulations are due to be implemented by 2020), they are looking for better solutions.

Expensive Research

The technology being tested borrows a lesson from nature. For instance, they looked at lotus leaves, which has pits and ridges that repel water. The costs of research are enormous. Some $400 million has been spent. Those working on the coatings (at a cost of some $10 million) expect that royalties paid by airlines for use of the technology will recoup their investment.

Future Plans

How soon we will be seeing airplanes with the new coating remains to be seen. And whether it will portend less expensive air fares also is part of the unknown equation. But the prospects are worth thinking about.

While the science is still in its infancy, the prospect offers a number of advantages: less pollution of the air from air flight, (aircraft emit 3 percent of the greenhouse gases in the U.S.) and, down the road, possibly a drop in the cost of air fares.

Should I Cut The Cable Cord?

By

Dropping Cable Or Satellite TV? Make An Educated Choice

Thinking of dropping live tv.
Many people are trying to decide whether to drop live tv.

The great majority of Americans, some 83 percent as of 2015, pay for TV service, according to Leitchman Research Group. They put out money for cable, satellite or fiber-optic providers. The percentage actually has dropped slightly since 2010, when it was at the 87 percent level. The difference, according to the researchers, is that fewer households are signing up for cable to replace those who have dropped the service. And some couples moving into their first home don’t sign up as a matter of course.

The percentages may continue to drop as people catch on to the fact that they don’t need cable or satellite to watch their favorite TV shows. Streaming, downloading, library discs and network TV are all reasonable alternatives.

Streaming:

Services such as HULU, Netflix and Amazon Prime give you access to thousands of shows, including past seasons of popular cable series, current episodes of network TV shows and original shows that are only available online. The average price of the services is just $9 per month, only a fraction of the $99-per-month average cost of cable or satellite. An advantage: you can tune in on your own schedule, rather than the network’s.

Downloads:

You have access to many TV shows from iTunes or VUDU for $2 to $3 each. That could become more expensive than cable or satellite if you get all your shows this way. But if you are an occasional viewer or if you want to watch just one particular show that you can’t get through a streaming service, it’s practical.

Library Discs:

Most modern libraries now offer videos for patrons. Check out your local library.

Network TV:

Despite the many delivery choices now available, it still is possible to watch TV the old-fashioned way without any additional fees. All you need is a good antenna, preferably a roof-mounted version. Various indoor antennas also are available if you don’t have easy access to a roof. You can even build your own with instructions from such publications as Popular Mechanics. Online tutorials can guide you in making an antenna from materials that are readily available, such as scrap wood and old coat hangers, cardboard and aluminum foil.

Choosing among the alternatives could save you a bundle. For instance, compare a $99-per-month cable fee with an $8-per-month HULU subscription. Over a year, that’s a $1,092 savings.

Career Planning Tips

By

The statistics leave little doubt that post secondary education is the best way to improve your earning power. But simply going on to college is not the best way to approach such education. Target your post-high school learning to specific goals, a publication of the U.S. Department of Education suggests.

Schooling that meets your goals.

There are many types of universities, colleges and other training opportunities. Picking the one that meets your goals can save you time and money. If a one-year certificate will get you the job you want, don’t head to a four-year degree institution. For some students, the one- or two-year qualification may set you up to earn enough to finance further education, if that’s what you want.

Stackable credentials.

It is sometimes possible to combine work experiences and training at the same time. “Stackable credentials” may be available and could move you toward additional education while working to pay for it.

Campus size and experience.

Consider what size campus and student population makes you most comfortable. It can have a telling effect on the quality of your education. Consider extracurricular opportunities and social aspects of the experience if those things are important to you, but always work toward the short-term goals. Do you want to be near home or in an entirely new location?

Best programs for chosen field.

If you are already determined to pursue a particular career objective, choose an institution that will get you there without a lot of side trips. Research the academic departments in several schools to determine if they have strong programs in your chosen field. Network with people already working in your chosen career path. Their advice could be valuable.

Choosing a career.

If you are not set on a career, an academically balanced school will give you the opportunity for exposure to a variety of options.

Explore financial opportunities.

College costs are going up and you should explore any an all opportunities for scholarships, grants, work-study options and loans to prepare to meet the financial challenge. Search online to see where you can get the best education for the money expended. Be acutely aware of how much debt you want to acquire. Education debt has become a drain on future earnings for many college graduates.

Prepare while in high school.

While you are still in high school is the best time to prepare to meet the requirements of the post-secondary institution of choice. Some colleges and universities have admissions policies that require you to apply six or eight months before you expect to attend classes. Others accept new students year round. Many have minimal GPA or SAT scores.

Look into retention rates.

Dropping out of a higher education program is costly and time consuming and leaves you years away from the goals you set. Don’t stop short of the goal if you can help it. Look at the retention rates of the school you want to attend. They may give you clues as to how much the school will be willing to do to hold onto you as a student.

Black Friday: What Happened This Year?

By

Well, the annual bacchanalia of holiday bargains has come and gone. Whether it was the standard grab-for-the-goodies frenzy or a ho-hum just another day depended to a large degree on where in the country you are located.

As predicted, some of the oomph of the post-Thanksgiving spree has eased, with fewer shoppers willing to brave the early hours and crowds, reports from around the country indicate. In some locales, demonstrators piggy-backed on the opportunity to attract a crowd. And some people opted to stay home and peruse the ads in newspapers or online before making spending decisions.

Bottom line, according to an Associated Press rundown, crowds this year seemed to be smaller than in the past. But there were variations on the theme in some places.

Colorado

In Colorado, which legalized marijuana recently, discounted weed and specially wrapped holiday combinations were on sale for the Black Friday crowd. In traditionally snowy Denver weather, some crowds lined up and braved the cold to get in on the weed deals.

Chicago

Some Chicagoans linked arms and tried to block traffic into stores in protest of the shooting of a teenager in their city. In some of the stores, employees safely ushered shoppers out of side doors to prevent possible clashes with the protestors. Some of the shoppers took it all in stride and used their smartphones to photograph the event.

Kansas City

Some shoppers who have reveled in the competition and excitement of Black Fridays past were actually disappointed to find themselves in stores without crowds. One woman in Kansas City listlessly shuffled through racks of clothing and wondered where the fun went.

Arizona

In sunny Arizona, people told news reporters they preferred hiking in the saguaro-studded hills rubbing elbows with crowds of shoppers. For some like-minded non-shoppers, it was an opportunity to impress upon children the true meaning of the holidays, one Tucson mother was reported as saying.

Online

As technology takes over more and more of the country’s shopping functions, the experts reported that – as predicted- more retail shoppers used their phones than their desktop computers to order goods. The option of sitting at home quietly digesting the Thanksgiving turkey while ordering online rather than facing the mobs in stores, seemed to make even more inroads into the Black Friday events.

Big Retailers

Even with the slight slackening of Black Friday traffic, some of the nation’s biggest retailers reported brisk sales. WalMart reps reported that its stores dotting the country saw increased sales this year, both in the stores and online, over last year. Ditto Target, which racked up a record in online sales, particularly electronics. Business in Target’s stores also was satisfactory, spokesmen said. Penneys put considerable effort pre-season into making its apps more user-friendly and said the results were good. It was apparent that many shoppers were researching online then going to the stores for purchases, a spokesperson said.

Black Friday may be losing a little of its luster, but don’t count it out yet as a holiday event of great magnitude.

Check Up On Your Personal Finance Planning

By

The Great Recession that plagued personal finances from 1993 to 2008 had a significant impact on the amount of money Americans were saving. Savings figures for the period were at the lowest levels in recent history.

But by May of 2009, the household savings rate had climbed to 6.9 percent, the highest level since 1993. It took a major financial jolt to get people back on the right track. The effect of the recession, coming on the heels of a period of high borrowing, was a disaster for many. Bankruptcy filings had nearly doubled by the end of 2008.
If you have lingering concerns about the state of your own finances, check your data against these indicators. Make adjustments if necessary.

5 Steps To Financial Health

Credit Scores

1. Check your credit score. In a range of 300 to 850, the higher your score, the better your financial health. Lenders use this score to determine if they want to do business with you. To get a credit score without cost, contact one of the three primary credit bureaus, TransUnion, Equifax or Experian. If your score is below 600, try to improve it by paying down debt, satisfying outstanding judgments or curb your use of credit cards.

Savings

2. If you are saving less than 5 percent of your income, it isn’t enough. In 1993, the rate, at 7 percent, was the highest it had been. Since then, too many earners began dipping into savings to see them through the recession, rather than adding to their savings cushion. The trend now is up and if you haven’t joined the savers, now is the time. Don’t look at it as an immediate thing, but as part of the retirement you hope to have. If your savings backup is niggardly, it may disappear entirely in the event of a medical emergency or any other of the many financial challenges that can bite when you aren’t prepared. Make savings of 10 percent of income a goal.

Credit Cards

3. You can be pretty sure you are in over your head if you carry credit card balances from month to month or if you are paying only a small amount to the principal. This is a major cause of financial stress for many people. Ideally, you use a credit card only in emergencies, or charge only what you can pay off in a month. Then you start whittling away at the total, paying whatever you can over the expected monthly payment. Only $5,000 in credit card debt requires a minimum $200 a month and can ultimately cost $8,000, taking up to 13 years to pay off.

Mortgages

4. If housing consumes more than 28 percent of your income, you are in trouble. Almost certainly you will have to cut back in other areas of your budget to handle that load. When the housing market was thriving, the mortgage lenders were allowing people to buy homes that absorbed up to 35 percent of their income, but with the country just coming out of the housing slump, they are edging back to the 28 percent figure. Give some serious thought to downsizing if possible.

Cut Back

5. If your non-housing bills are going crazy, you can assume you need to do something to restore balance. Succumbing to the temptation to buy items on time, you end up paying what seem to be relatively small amounts on a dozen or more products or services. Then relative small quickly becomes over-large and you’re suddenly in the category in which the required outgo is larger than the income. Assess your situation by putting all the bills on the table and seriously discussing them. Identify what you can trim or do without and then do without it. Just one for-instance: Do you really need a 500-channel cable TV package if you are using only a few of the channels? Do you really need a land line if you have cell phones? Etc. etc. etc. An honest look may help your family regain control of its resources without any really painful sacrifices.

Do what you can to avoid become part of the dismal foreclosure and bankruptcy statistics. Keep tabs on your finances and move toward a better distribution of what you have for the sake of the future as well as the present.