Or why smart people fall for stupid cons.
Sometimes it mystifies me that so many people can fall for the oldest tricks in the book. Bernie Madoff’s operation was nothing more than a Ponzi scheme -- you know, that scam that was invented in the 1920s. Do people really think that a random Nigerian prince selected them to handle gigantic sums of money? Does it really never occur to a tourist that a street-side card game probably isn’t on the up-and-up?
- Video: $1 million or a magic penny?
It mystifies me, that is, until I fall for one. Then the excuses get rolled out. Even in hindsight, you try to convince yourself that you’re not a sucker: There was no way you could have seen that coming.
So why is it that we fall for these silly cons?
Collective-buying sites offer low prices, but there's plenty of fine print.
Get enough people together and you can leverage discounts of 50% or better on spa services, dinners out, yoga classes, event tickets and other services.
The key concept here is “enough.” Group-buying sites have carved out a niche promising deals if more than a set number of people opt in during a short window of opportunity. The idea works great when supply and demand line up:
Everyone outsources any number of tasks. So are you lazy if you hire someone to clean your house?
J.D. and I have been employing an independent housekeeper for about 10 years. The one who’s been working for us for almost five years, Michele, is fantastic and we feel lucky to have her. (We found her through Craigslist). Housecleaning is her full-time job.
It took us some time to get over our self-imposed barrier of hiring some help with the house chores. I’m not lazy, and it struck me as a weak, self-indulgent thing to do. But, as J.D. freely admits, he’s a slob.
Save some dough with these easily digestable tips, and use the savings to pay down debt.
This post comes from Stacy Johnson at partner site Money Talks News.
According to the Bureau of Labor Statistics, in 2008 the average American family spent $6,443 on food. To put that number in perspective, that "average" family consists of 2.5 people with an annual income of $63,563. So from these numbers we can surmise that our average family spends about 10% of their income on food.
Depending on whom you choose to believe (there's some dispute about this) the average American family also carries a $5,000 balance on credit cards. If that balance comes with a 15% interest rate, that's $750 a year in interest.
Conclusion? We could materially affect two expenses simultaneously if we could persuade the average American family to eat their credit cards. But if that doesn’t sound like an appetizing solution, here"s another thought:
Radiohead, Sister Hazel and country stars are all on the free playlist this week.
While rounding up this week’s selection of food deals and freebies, I came across free stuff you can’t eat that seemed too good not to share.
- Bing: Free Internet radio
How about some free music that you actually want to hear:
Free Pretzel Day and National Pancake Day are just three days apart. Or would you prefer bagel poppers?
It’s Friday, so that means it’s time for food deals and freebies. And we have some good ones, with thanks to our friends at Cities on the Cheap.
In the next few days, the world is celebrating pretzels and pancakes, and why not?
About $775,000 in annual fees will be returned.
With a little arm-twisting from the federal Office of the Comptroller of the Currency, Capital One has agreed to refund annual membership fees to customers who were assessed the fees after they had canceled their credit card accounts and had no outstanding balance.
- Bing: Worst credit cards
The California and West Virginia attorneys general had challenged Capital One's practices. The OCC became involved when Capital One became a national bank, putting it under the OCC's jurisdiction. It announced the settlement today and said that Capital One would refund about $775,000 to customers affected by the actions, which occurred from 2004 to 2006.
The FTC has issued an alert about such plans. Here are some questions to ask.
Health insurance can be expensive. And if you are shopping for individual health insurance, you know it can be really expensive. Add to that pre-existing conditions, and the price can be outright ridiculous. And that's why the following claims can be really enticing to those looking for health insurance:
- Affordable health care plan.
- Pre-existing conditions? No problem!
- No deductible or co-pays.
- Thousands of providers in our PPO network.
- Discounts up to 60%.
What's the problem with these claims? The problem is they aren't advertising health insurance. Instead, they are promoting what are called discount health plans. If you’ve spent any time researching individual health insurance, you’ve probably come across these plans, sometimes called medical discount plans.
- Bing: Discount health plans
While discounts are always good, many are questioning just how effective these plans are.
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