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Idea sounds great until you do the math.

By Karen Datko Sep 30, 2009 2:42PM

The Internet is afire with a grand proposal. Instead of bailing out AIG to the tune of $85 billion, why not divide the money among all 200 million or so U.S. adults?

That gives $425,000 to every woman and man, the widely circulated e-mail says, or $297,500 after taxes. Wow.

This idea has gotten a lot of traction online, particularly as Congress is now considering a $700 billion bailout or rescue or whatever for America's financial institutions.

"Sounds like a plan," exclaimed Cathy at Cathy's Blog -- For Me For Once, one of many bloggers who've passed the $85 billion "We Deserve It Dividend" proposal on.

There's only one small problem with this plan.

"It only works out to $425 per person," an anonymous reader of Cathy's Blog wrote. "Whoever is circulating that idea is an idiot. Don't believe everything you read." And how.


Blogger plans to be a house with cash.

By Karen Datko Sep 30, 2009 2:38PM

Too much credit and then a shortage thereof might be sinking the economy, but the personal attitude of blogger "NCN" is "Credit? Who needs it." He hasn't borrowed money in any form or fashion for four years -- and that includes using a credit card.

Remarkably, he's even saving up to buy a house with cash. Is this a radical approach that's impossible for most people, or an idea whose time has come? Either way, he explains how to do it.


Your chicken coop could be a gold mine.

By Karen Datko Sep 30, 2009 5:05AM

This post comes from Linsey Knerl at partner blog Wise Bread.

When the recession began to really hit home, there was plenty of chatter about selling your plasma, undergoing paid medical tests, and even cutting off your lovely locks for a profit. Here are some of the more off-the-wall commodities we found, and they are making some people a bit more comfortable these days.

Mother's milk. As a mom who nursed three of her four children, I completely understand the benefits and time commitment of breastfeeding. When situations prevent a mom from being able to do this herself, there are some options to keeping the milk flowing, even if it's not her own. Thanks to the hard work and dedication of mothers nationwide, milk has been made available to those who need it via milk banks and other donation centers. The Human Milk Banking Association of America is a good place to start learning about the guidelines for donation, storage and transport.


Hey, not everyone can be a nice guy.

By Karen Datko Sep 30, 2009 4:47AM

This devil's advocate post comes from Jim Wang at partner blog Bargaineering.

This devil's advocate post will cover something that's bound to elicit a lot of discussion: Here are four reasons why you shouldn't donate money to charity.

That's right. You read that correctly. I have four reasons why donating your hard-earned money to a charity is a bad idea, and chances are there is at least one reason here that you haven't even considered. If there was ever a devil's advocate post to end all devil's advocate posts (don't worry, it's not the last one), this would probably be it.


High-income earners often display some particular traits.

By Karen Datko Sep 30, 2009 4:40AM

This post comes from J.D. Roth at partner blog Get Rich Slowly.

In June, a user at Ask MetaFilter wondered: What are the differences between someone who makes $100,000/year and someone who makes $30,000? As you might expect, this question generated a lot of discussion -- all of it interesting.

Many commenters noted that, from their experience, high-income earners generally exhibit several of the following traits:


Before you order, think about what the menu is trying to pitch.

By Karen Datko Sep 30, 2009 4:31AM

Did you know that when you open a four-page menu, your eyes are naturally drawn to the center of the right-hand page? In menu circles, that's known as the "power position."

That's where you'll find the entrées the restaurant really, really wants you to buy -- signature dishes that keep you coming back and those with the biggest profit margins, said Thursday Bram in a post at our partner blog Wise Bread.

Menus are, after all, "the only piece of printed advertising that you are virtually 100% sure will be read by the guest," wrote David Pavesic in an article reprinted by the Restaurant Resource Group. Beth Panitz, in an old post at, added, "If you think customers decide on their own what to order, think again." (Thanks to Liz Kay of the Baltimore Sun's Consuming Interests blog for those links).

Several bloggers, including Dan Mitchell of The Big Money's Daily Bread blog and Liz, have written recently about the menu tricks restaurants use, and we'll assemble some here to give you an edge next time you go out to eat.


Don't be misled by clever marketers.

By Karen Datko Sep 30, 2009 4:15AM

Sara at On Simplicity simply states what she calls the "cold, hard truth": "Advertising sucks. ... It's engineered to make you feel like you're incomplete, that you have an unfulfilled need, that you're not good enough."

Eluding ubiquitous advertising is one of the "18 means for living below your means" at Marc and Angel Hack Life, a blog that features compilations of valuable tips to deal with life's vexing problems.

This particular post draws on some of the blogging world's best thinking on the keystone of financial health.

Once again, Marc and Angel do not disappoint.


Clearance meat can help stretch the food budget.

By Donna_Freedman Sep 30, 2009 3:58AM

I had a $1 steak for lunch, but it was no one-buck chuck. It was certified Angus beef sirloin, with no hormones or antibiotics, and “minimally processed,” according to the label. In addition, this steer apparently ate only vegetarians: The label also said "100 percent vegetarian diet."

How'd it get to be a dollar? First it went on sale, then it got old. 

Meat department managers keep a constant vigil against meat that's close to its sell-by date. They need to sell that flesh pronto, so they discount it deeply. 

That’s how people like me end up with steaks whose original per-pound cost was one and a half times the federal minimum wage. That same shopping trip netted me a two-pack of sirloins that initially cost $8.99 a pound; I paid $4.07 total. Another pair of steaks cost just $1.24 and $1.52.



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