They work pretty well in money matters, unless you need absolute certainty.
The other day, I was explaining the Rule of 72 to my lovely wife. It's a simple little mathematical trick that almost epitomizes the advantages and disadvantages of rules of thumb. If you want to know how long it takes to double a sum of money, divide 72 by the interest rate.
At 10% a year, the rule says a balance doubles every 7.2 years. It's really slightly less than 7.275 years. At 5% a year, the rule says a balance doubles every 14.4 years. It's closer to 14.21.
It's a pretty good rule of thumb and good when you have nothing on the line.
Some shops are pulling the plug to make space for paying customers and change the ambience.
Coffee shops and free Wi-Fi once appeared to be the perfect match. Free Wi-Fi drew customers and made the shop seem cool. Even Starbucks finally inaugurated free wireless Internet service July 1 -- possibly influenced by the fact that McDonald's was offering cheaper coffee drinks AND free Wi-Fi.
The love affair may be over, at least in some shops. A number are pulling the plug on free Wi-Fi, saying it hurts business or detracts from the ambience they are trying to create.
People do not really think that they will never see any Social Security money. It is just something they tell pollsters.
It is time to make another visit to the bounty of information that our nation's intrepid polling companies gather for our enjoyment. I usually start these visits with a short proviso about how survey data about what people say to strangers who call them on the phone can't hold a candle to data about what people actually do. Often I point out that survey respondents tend to be neither candid nor thoughtful in their responses.
Today I am going to skip all that. I will just give examples.
The rich are optimistic?
Lawsuit claims that some producers and retailers are misrepresenting an inferior product as 'extra virgin.'
Has your olive oil been lying to you all these years?
That's the allegation made in a lawsuit filed by prominent chefs and restaurants who claim that a number of companies are mixing their olive oil with cheaper alternatives while still branding it as "extra virgin."
The IRS stops aiding and abetting tax preparers in making high-interest loans to those who can least afford them.
Ultimately, deciding when and how to leave the workforce isn't about some number in a retirement account.
I recently returned from my annual weekend trip to Oregon's Opal Creek Wilderness Area. Every year, I join five other friends to hike into the forest, pitch our tents on the banks of the creek, and sit around the fire talking about life. We drank a lot of whiskey this year, and spent a lot of time at the swimming hole.
This year, we also talked a lot about where we're going in life. All six of us are about 40 years old, and we're all dealing with career transitions of some sort. We chatted about "talkers and doers" (a topic I hope to write about soon), about building social capital, and about retirement. I mentioned that my wife hopes to retire when she's 52, and that caused a lot of envy. It also prompted an interesting discussion on Sunday afternoon.
Only new borrowers will be hit by rising mortgage insurance premiums next month. But there's also a consolation.
This post comes from Marilyn Lewis of MSN Money.
The cost of getting an FHA mortgage is growing -- by about $38 a month, on average. The price hike in FHA mortgage insurance premiums, which takes effect Sept. 7, will hit only new borrowers. Current holders of FHA loans won't be touched.
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The fee hike was approved unanimously by the U.S. Senate this week. The House already had signed on. President Obama is expected to sign the change before the end of the month.
FHA takes away -- and gives a little
Even if breakfast to you is just a cup of joe, you're going to pay more for your first meal of the day.
The cost of the most important meal of the day is edging up. Look to pay more for coffee, orange juice, cereal, pancakes, toast and bacon -- yes, even bacon (and chicken-fried steak) -- in the coming weeks and months.
Due to heavy rains in Colombia, the J.M. Smucker Co. this week raised the price of its Folgers, Dunkin' Donuts and Millstone coffee brands by an average of 9%. Expect Kraft (Maxwell House, Yuban) to do the same. You should notice the difference on supermarket shelves in the coming weeks. (Hint: Stock up now.)
Bad weather is mostly to blame for coming price increases in other breakfast fare.
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