US Budget Numbers Simplified To The Household Level

Someone sent this to me via e-mail, and I dont know the original source. From the $38.5 trillion number, that seems to refer to the budget cut deal that averted a US government shutdown in April 2011. In any case, it does make the numbers much more easy to grasp.

Some stats about the US government:

  • U.S. Tax revenue: $2,170,000,000,000
  • Fed budget: $3,820,000,000,000
  • New debt: $ 1,650,000,000,000
  • National debt: $14,271,000,000,000
  • Recent budget cuts: $ 38,500,000,000

Now, remove 8 zeroes and pretend it’s a household budget:

  • Annual family income: $21,700
  • Money the family spent: $38,200
  • New debt on the credit card: $16,500
  • Outstanding balance on the credit card: $142,710
  • Total budget cuts: $385

I know that this is macroeconomics vs. m

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Tags: Budget, Budget Numbers

Sunday, October 16th, 2011 Financial Glossary No Comments

World of Commuters

Americans have some of the shortest commuting times in the developed world, according to a new report from the Organization for Economic Cooperation and Development.

Note: Data refer to 1998-99 for France; 1999 for Portugal and India; 1999-2000 for Estonia, Finland and Hungary; 2000 for South Africa; 2000-1 for Norway, Slovenia, Sweden, United Kingdom; 2001 for Denmark; 2001-2 for Germany; 2002-3 for Italy and Spain; 2003-4 for Poland; 2005 for Belgium, Canada and Ireland; 2006 for Japan and Turkey; 2008 for United States; 2008-9 for Austria; and 2009 for Korea. Data have been normalized to 1,440 minutes per day: in other words, for those countries for which the time use did not add up to 1,440 minutes, the missing or extra minutes (around 30 to 40 minutes usually) were equally distributed/subtracted across all activities. Read more…

Tags: World, World Commuters

Friday, October 14th, 2011 Financial Consultant No Comments

Is Taking Out a Payday Loan a Good Idea?

Payday loans have developed a bad reputation for being debt traps for needy individuals, so if you ever find yourself in a situation where you need one, you may wonder if doing so is safe, or if you are risking your entire financial future.

The first answer to that question is to explain exactly what a payday loan is and what it’s for. A payday loan, also called a cash advance loan, is a quick loan of a few hundred dollars for a period of about two weeks, or until your next paycheck comes in. It is not designed to be a long-term strategy for financial health, but an emergency type of loan from quick advance dealers for those who need cash right now and can’t wait. If you pay it back on time, then there are no further complications. It’s a quick, simple, and potentially painless process.

The problems come when you begin to rely on payday loans as a means to make ends meet. That’ Read more…

Tags: Loan, Payday Loan

Friday, October 14th, 2011 Financial Consultant No Comments

October starts on a negative note

Hello All,   October opened on a negative note as Greece said it likely will not meet its deficit reduction target for 2011.  The S&P will probably test the 1072 low basis Dec. over the next 12-24 hours, which will determine whether the subsequent fibonacci retracement levels will be realized before years end.  We have energy prices at their lowest levels in over a year, and all eyes are on Brent trading just above $100.  A psychological break of $100 will continue to price slower growth into the markets, and that may coincide with a break of 1.30 on the Euro.  Trading below 1.32 today, the Euro is at a 8 1/2 month low where I have decided to take profits and have a gut feeling that the trade is extended for the time being.  As bonds rally 3 handles on the day and Gold up about $40, we wonder if investors will continue to de-risk or actually step in and buy when things look the most bleak.  With Read more…

Tags: Negative Note, Note

Sunday, October 9th, 2011 Uncategorized No Comments

How Financial Planners Charge for their Services

When hiring a financial planner, you should make it a point that you understand how he or she would be charging for the services that he or she would be providing. Most financial planners today can charge based on a commission or based on a fee. There are also some who charge just a fee for their services.

Commission-based financial planners are those who receive compensation through the commissions they earn from the investment companies that they are working for. Although commission-based financial planners want to make sure that they would be able to sell some of the financial products that they are selling, they are usually able to provide sound advice and information for their clients. If you would be choosing to hire a planner who works on commission, make sure to check for any potential conflicts of interest which could arise so that you could be certain that the recommendations you are getting are truly some of your best investment options and not just products which the planner would make the most money on. Read more…

Tags: Financial Planners, Services

Tuesday, October 4th, 2011 Financial Consultant No Comments