Archives For Corey

U.S. Companies Exploit International Workers – Lack of Fair Wages

Corey —  May 7, 2012

I know I am not the only one to call up various service lines to be connected overseas with international phone representatives. It’s always amazing to me to see how popular and frequent this is becoming these days. The reality is that U.S. companies are outsourcing labor in order to cut costs.

I have already made it clear that I consider most people in the U.S. rich by world standards, so it should be obvious that I am not trying to suggest that international workers do not have the right to these jobs. Instead, it is the unfortunate reality that U.S. corporations are taking advantage of international regulations to minimize expenses and maximize profit.

Recent Illegal Allegations on Infosys

A couple weeks ago, the story came out that Infosys, a major tech company, was illegally bringing workers to the U.S. with incorrect visas. Instead of issuing work related visas, Infosys was bringing workers over on B-1 visas. According to an article on Infosys, the company was issuing recommendations on what to say when going through customs to avoid suspicion. Not only were there allegations of illegal visa activity, Infosys was paying these workers Indian wages without withholding income tax of any sort.

This is a blatant attempt to lower expenses in labor costs, avoid major taxes, and maximize profit. It is another reason why greed can be so deadly. Not only were they breaking major laws, they were treating international workers poorly.

Religious Response to Excessive Outsourcing

Again, I feel it important to clarify that it is not my intention to promote any U.S. only labor laws. I believe immigrants have the right to compete for jobs. However, I find the system which tries to increase the profit of high end executives at the cost of nearly dehumanizing entry-level workers a major atrocity. No person deserves to be paid significantly lower wages just because they were born in another country.

God cares for all of humanity – not just rich Americans. While the nature of business is to seek a maximum profit, it should be within proper business ethics with a ground work of fair wages.

I hate to think what will happen to all of the persons and families that worked for Infosys as a result of the exposure to Infosys’s illegal activity. I can’t imagine the difficulty of working for a company for significantly lower wages than workers from another country and to be forced to leave your new home and job after something like this. While I know that international workers will adapt and continue to use their hard work ethic to give themselves an advantage in a time of high unemployment, it doesn’t make it okay to treat others this way.

In Economy, Politics , , ,
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How to Lower Home Insurance Premiums

Corey —  May 3, 2012

Home Insurance premiums are rising rapidly, so now more than ever we need to be prudent about how we spend our money. To get the best premiums, we need to put in place a few simple measures.

Home Insurance is made up of two main areas: Buildings Insurance and Contents Insurance. Buildings Insurance tends to cover your building itself and many of the fixed items that feature in your house, such as bedroom and bathroom suites. Contents Insurance is similarly self-explanatory, covering your possessions against things like accidental damage, malicious damage, loss, or theft.

Policies aren’t as simple and uniform as they used to be. Tailor your policy to suit your needs exactly so that you don’t end up paying over the odds for a one size fits all, generic insurance scheme. You should generally try to combine your buildings and contents policies with the same insurer; this will lead to reciprocal discounts and probably better value premiums. Never value your building and contents too highly or this will add to the premium.

The internet has revolutionised many markets, including insurance. Buy online so that you can compare the best providers and benefit from some of the many online discounts available.

Security is a major factor in deciding how much your premium will be. If you have approved locks and alarms, membership of a neighbourhood watch scheme, security lighting and a host of other potential deterrents, you could well reap the rewards.

Just like Car Insurance, you can build a no claims bonus – so don’t always claim for things that may affect your renewal premium. Weigh up the benefits and losses before you claim. It is also wise to set your voluntary excess at as high a rate as possible, but nevertheless a rate which you can afford to pay should the worst happen.

Find excellent tailored policies at companies like endsleigh insurance, who design insurance packages for individual buyers.

In Uncategorized
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How to Handle Medical Bills like a Pro

Corey —  May 3, 2012

Ah, medical bills.  We all hate them but they have been part of our life since birth.  As the old, wise saying goes, “there is no such thing as free lunch.”  Oh how that is especially true with medical bills!  I was just at the doctor’s office for a typical check-up and it cost me $20!  no treatment, no nothing, but it still costs me money.  I guess I should be thankful I’m not paying thousands because of cancer treatment!

However, my point here is that medical bills are part of life and the sooner we accept that, the sooner we can properly manage them.

If you find yourself in a position where you have a gigantic medical bill looking back at you, what do you do?  I know you didn’t ask for a big medical bill but sometimes real life can be quite the shocker.

I want to share with you some tips for lessening the burden of a medical bill.  Some of these tips might surprise you because hospitals and pharmaceutical companies simply don’t want you knowing about them!

Never pay full price

Did you know that you don’t have to pay full price for your medical bills?  If you’re surprised, you’re not the only one!  Hospitals assume that you will just pay the price tag of whatever treatment you had.  It amazes me how people blindly walk into medical bills and write a blank check.  Stop forking over money for the full bill!

Hospitals understand the economy and are typically willing to negotiate bills.  Another thing you should consider is negotiating the price of a medical procedure before you get the bill.  It’s not uncommon for hospitals to slash their price by 25% or more to retain your business.  Remember, hospitals and medical companies are run like a business; they don’t want to lose you and your family’s business!

Don’t assume the bill is correct

Medical bills are like traffic tickets, there are typically errors that can lessen the amount of the bill.  Did you know that the average medical bill passes through five sets of hands?  It can actually be more than that for certain hospital organizations.  Because of this arduous process, you need to make it  a habit to double check medical bills.  Hospitals could care less if you overpay for something that is not correct.  You care because your wallet cares!

How to handle medical debt

Medical debt is never fun, but sometimes it happens.  A great example is someone who goes through cancer treatment and their insurance only covered 50% of it.  If the rest was taken out on credit, you will need to tread carefully.

Most medical organizations will not request the full amount owed.  Instead, you can negotiate payments and end up paying the price in full.  For a hospital to go to collections is quite the process and can be spendy for them.  They are typically extremely open to negotiating with you.

Going forward…

After reading this article, hopefully you are more self-aware and will be better prepared for medical bills in the future.  Taking action and learning about these things will benefit you down the line especially if you feel it doesn’t matter now.  Don’t assume these situations will never happen to you.  You never know what the Lord has planned for your life, and as Christians, we are called to a standard of wisdom and not simply following the Lord blindly through life.  Be prepared for the worst and the Lord will take care of the rest!

In Miscellaneous
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Seven Deadly Sins and how they lead to Financial Disaster

Corey —  April 30, 2012

Christianity, by tradition, has long affirmed the recognition of seven deadly sins. For those unfamiliar with them or the Christian tradition, they (as listed on wikipedia) are wrath, greed, sloth, pride, lust, envy, and gluttony. These seven deadly sins are considered unhealthy vices. Christian history has used these speculate what a healthy lifestyle would look like. Basically, take all of these things – make sure you don’t do any of them – and you are set.

While it may not be this simple, it is essentially the point. The truth is though, that the seven deadly sins is often ignored or forgotten. Despite learning about them from the financially successful Hollywood film ‘Seven’ by Andrew Walker, starring both Brad Pitt and Morgan Freeman, I would wager a bet that most people in my generation have not learned of the seven deadly sins. In fact, even as a Seminary student (who also grew up in a Christian family), I had to look up the seven. I new a few of them from memory, but there is no way I could name them all.

As a result of which, I thought it would be interesting to use the seven deadly sins as a structure for a financial article. What might these teach us about smart financial management and how might our lives be different if we did or did not follow them.

1. Wrath: Wrath  is often used in the Christian tradition to refer to God’s anger. This the essence of what this deadly sin refers to. Falling victim to excessive amounts of anger can do terrible things for one’s financial state. Making decisions based on anger can lead one to ignore all signs of wisdom or advice. It is always important to try and reflect on your financial state with a sound mind.

2. Greed: Greed is the strong desire for wealth, money, goods, etc beyond a healthy limit. If you are interested in reading more about greed, be sure to check out my article What is Greed? Greed can also cause all sorts of unbalance with your finances. It can cause you to be disconnected from your family or gamble away your money. It’s always important to balance your desire for more wealth with things that truly matter.

3. Sloth: Other than the movie film’s character Sid the sloth from Ice Age, the word sloth is not often used in popular conversations. This may make it hard to understand, but refers (in this case) to apathy. Apathy or sloth can cause a huge financial disaster. Not caring about monitoring your finances or even budgeting can lead to financial ruin. Before you know it, you can overspend and find yourself wondering how you are going to pay off debt. Financial management is an on-going activity that requires action and attention.

4. Pride: I am sure everyone has felt proud of an accomplishment. There are certain degrees of pride that are healthy – such as celebrating an achievement. However, there are also forms of pride that take control of your life. Before you know it, you can feel unstoppable and take risks that are unnecessary and unprecedented. It’s always important to critically question your actions when managing your finances. Can I afford to take this risk? Would I lose to much? Is my reasoning for doing so justified? These are all important questions to ask.

5. Lust: Lust, the cheap version of love, is often understood as some sort of sexual fantasy. While it doesn’t have to be limited to this definition, even this understanding helps us understand something about finances. Ignoring lust teaches us to place value on something long-term – something more than just an momentary feeling of satisfaction. The inherent message of resisting temptation and holding on to previous commitments also parallels advice given for retirement – that is, buy and hold. Thinking long-term for financial investments is a great strategy.

6. Envy: When was the last time you were envious of your neighbors new car or nicer house? Is is this effort to keep up with the Joneses that puts a lot of American families in consumer debt. Envy, or wanting to have what other people have, can lead to unnecessary spending. Take extra care not to place value in possessions – for you will never be satisfied and always wanting more.

7. Gluttony: Gluttony or the over-indulgence is a theme that I think Americans know all too well. Traditionally, Americans are known for their big houses, big cars, and many possessions. It’s unfortunate but true to a certain degree. I know that I personally have realized how much stuff I can accumulate over time. It is a struggle at times not to satisfy that urge to buy more or even eat more, but it is a healthy practice to avoid doing so. This reminds you that giving should be an important aspect of your life as well as keeps you from completely buying into the consumerism myth that possessions will make you happy.

I didn’t realize it when I started writing this post, but it’s remarkable how well the old, Christian traditions still speak to the experience of contemporary American culture. Managing your finances is never black and white, but full of shades of gray. It means weighing options and deciding which is the best one. Hopefully these deadly sins will give you an idea of what not to do.

In Miscellaneous, Prosperity , , , ,
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3 Aspects of a Successful Business

Corey —  April 26, 2012

Have you ever wondered what it would take to have a successful business? You might be looking to start your own business or take your existing one to the next level. Understanding the characteristics of a successful business might give you the tools necessary to transform your business into a profitable one. Not everyone is born with natural business insight, but it can be something that you learn.

Three Traits of a Successful Business

  1. Marketable Product/Service: All successful businesses are dependent on having a clear product or service that is marketable. If it is not clear what you can offer customers, it will be hard to earn a large profit, no matter how hard you work. The best business starts with a great idea – but it isn’t until this is made practical that success is reached. In other words, you have to be able to “sell” your product or service easily.
  2. Aggressive Marketing Campaign: The top businesses recognize that if you are going to get anywhere, you have to invest in your brand. Taking the time to establish a name for your business and advertising for your service/product will go a long ways to help you make out. I should point out that this will only work if you have a great product/service to begin with. Otherwise, it’s like throwing money down the drain.
  3. Easy Payment Options: The last thing that all business models have in common is making it easy for the customer to spend their money. If it is difficult for the customer to pay for whatever it is that you are selling, you can count on them going anywhere. In general, it is worth the money to have an elite finance department. Ensuring that all aspects of financing are taken care of, from supplier finance to customer transactions is a must for any business model. If you need an example, just think of Amazon. They have recently made it really for their customers to purchase something. Customers that have already logged in only need to click one button to order a product. It doesn’t get much easier than that.

Understanding the importance of marketing and appealing to the customer’s needs is business 101. Yet, it is what makes successful businesses stand out from those that go under. If you are wanting to establish a profitable business, think about how you can implement the same aspects. You will not regret it. Don’t forget that it’s all about keeping the customer happy and maintaining the flow of income. (If you need help keeping track of your business income, be sure to check out our business expense spreadsheet)

In Miscellaneous
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Can You Afford it?

Corey —  April 19, 2012

I remember growing up and having my parents tell me that they couldn’t afford this or that. You can imagine the trauma that this caused to a child, as I worried about whether my parents would have enough money to put food on the table. In reality, our family was doing just fine financially. It was a poor way of communicating to their child that they didn’t feel like buying me everything that I wanted.

We use this phrase, “I can’t afford it,” to describe what we are willing to pay for and what we are not. In reality, most of us can afford many things that we use this term for. You may say that you can’t afford something, but what you really mean is that you don’t care enough to prioritize that. Proper debt management is about prioritizing your expenses. It means avoiding unnecessary spending and using whatever excuse necessary to avoid going into debt.

Why Prioritizing Expenses Matters

While the phrase, “I can’t afford this,” may not be entirely accurate, it does represent an effort to prioritize your expenses. The fact that you are considering what you should and should not buy, shows that you are trying to resist going into debt. Surprisingly, this happens less than you would think.

Many people these days are going into debt without considering the consequences. They become attached to material possessions and lose track of everything else. They become convinced that this will buy their happiness. But, in reality, its putting them further away from it.

When you make your next big purchase, it is important to consider whether it is that important to you. While many people would ask, “Can I afford this?” the question is really “Is this important to me?” This is a better question because after the basic expenses like rent, we can afford to do a lot of things. It just means that we have to give up other things. When I am considering going on a vacation, I make sure that I can still afford to do other things that are important like saving for retirement, giving to charity, paying my bills, etc. Taking time to ask yourself these questions can go a long ways to help you stay out of debt and responsible with your finances.

In Miscellaneous ,
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Top 5 Mortgage Mistakes

Corey —  April 19, 2012

As someone who is looking forward to purchasing a condo next year, I have been doing a crazy amount of research on mortgages.  Honestly, I keep stumbling upon mistakes that people have made with mortgages.  Since I don’t want to be someone who makes a mistake with their mortgage, I’m planning on soaking in all useful advice and attempting to make the wisest decisions I can going forward!

So, what are the worst mortgage mistakes one can make?  Well, I’ve compiled the top five mortgage mistakes and hopefully you can learn from what other people have done wrong and not make the same mistake!

1- Taking out an adjustable rate mortgage

Can someone say 2008?!  This is what caused our most recent recession among some other things.  An adjustable rate mortgage plays into the greedy side of Americans and allows you to buy a bigger house than you can afford.  The first few years, you’ll have a really low interest rate but then this rate ends up shooting up over time.  The problem with this is that you’ll end up drowning in interest payments and more than likely lose your home!  Talk about humiliating…

2- Settling for a reverse mortgage

For the crowd of age 62 and older, a reverse mortgage may seem inviting but it’s designed to bite you in the butt.  What a reverse mortgage does is provides a stream of income by pulling out funds from your home equity.  This can be paid out through an annuity or monthly payments.  It’s up to you what poison you pick because either way, you’ll be faced with hefty fees and you will slowly lose ownership over your home and have to hand it all over back to the bank.  Does not sound like fun to me!

3- Skipping the down payment

If there is one thing you need to remember from this article, it’s that you NEED to put down a down payment!  Why you ask?  It’s not unusual to find yourself upside down with your mortgage if you don’t.  You can end up owing more money than your home is worth.  At this point, it’s flat out painful.  You want to avoid this situation.

4- Can anyone say exotic mortgages?

I bet you’ve never heard of these bad boys.  Exotic mortgages may sound enticing but they are dangerous financial vehicles!  Instead of building up your equity, exotic mortgages produce negative equity.  Yes, you’re naming your payment price, but at some point, all the debt you took out for your mortgage is going to come due.  As the years go on, you are increasing the amount you owe.  It’s counter-intuitive and I advise that you avoid this at all costs.  Owning a home is not worth this risk!

5- Liar, liar, pants on fire: liar loans

Liar loans make me sick just thinking about them.  Not only are they irresponsible to take out but they can ruin your financial life.  At the core of a liar loan is that you don’t need to produce any verifiable documentation in terms of income and job stability.  In theory, people can lie on these loans and the bank will just assume you’re telling the truth.  Because you lied on your income statement, you will soon find yourself not being able to make the monthly payments.

Don’t fall for these mistakes!

In conclusion, don’t fall for these bad decisions.  While they may seem cool and unique, they are designed for your failure.  There is something to be said about ethical mortgages and choosing responsibility over showing off a big house.  At the end of the day, you should only be buying enough house for your needs.  It’s anti-American to do that but times are changing!

In Budgeting, Investing ,
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