Your Questions About Money Making Schemes For Free

Richard asks…

How can I make better decisions when buying things?

I’m 19 years old and I don’t have a job just yet (but I did just have a job interview a few days ago, so I have high hopes that I’ll get the job). I know you probably are aware of this but please don’t ask me where my source of income comes from, all I’m going to tell you is that I do little “jobs” here and there to make what I have. I live with my parents still and they buy me the things that I actually need to survive but the things that I say I “need” are really more trivial luxury items.
Now, the problem I’m having is that I don’t really know how to plan ahead very well as far as saving money goes. Not only that, but I often find that the financial decisions I make are only temporarily efficient but in the long scheme of things, I don’t always have enough of what I need or enough money to be able to afford what I need. Obviously when you buy something, having it be dependable/usable for a decent amount of time is a must. For example, you probably wouldn’t spend $499.99 on an iPad, if it were only going to work for a week. Often times when I like something that isn’t reusable (like a soda for example) and it’s at a generally low price, I’ll stock up on it using all of the money that I have, thinking it will last me longer than it ultimately does. It isn’t until I start getting low that I slow down my consumption until I have enough money to do the same thing all over again.
For example, I’ll buy seven packs of a brand of gum that’s $3.48 per pack. After I’m done buying all of those packs of gum, I’ll usually have like two or three dollars left in my wallet. I’ll go through a pack and a half of the seven packs in the first two days, then I’ll finish one entire pack of gum the following day, then I’ll go through like three more in the next two days and then I continue consuming like that until I’m down to my last two packs. Once that happens, I begin to panic and I don’t touch the remaining two until the next time I get money. Than as soon as I get money I buy as many packs of gum as I can afford, than of course I have the two left over packs of gum plus whatever I just bought. Now, it suddenly seems like I have enough gum to last me three weeks, so I start chewing as much as I can until I’m back in the same position. All of the sudden, I start using my money to buy soda (which is more expensive in this example), and I can’t decide which one I want more; the sodas or the gum. I’ve been spending like that for quite awhile and I need some advice.

Nagesh answers:

We can not tell you how to obtain self control. You have to want to save. Simple when you get the feeling to spend some cash just log on to this website http://www.treasurydirect.gov and buy some I-Bonds or add a small amount of money into that account. Input the amount and forget about it until the next time you receive some money. Trust me that you would not even think about logging back on the site and getting some money from that account anyway at least this way your money would always stay above inflation…Get yourself a Roth IRA. Its better to lay the foundation now so that it would be a lot easy within the future. Saving money is hard but once you get started, the money would do all the work for you. You are young so I strongly suggest that you get your self a Roth IRA account asap, if you do not have one. You can never go wrong with investing and saving for your future. You have many years of compound interest ahead of you. You could be a millionaire before you reach your retirement age so if you do not have a Roth IRA than get started with the Roth IRA account by contacting T-Rowe Price or Fidelity. Yesterday is History, Tomorrow is a mystery, its all about what you do in the moment. You can get started today. It is suggested that you pick the Roth IRA target year fund set for the age 65.

Https://individual.troweprice.com/public…
https://www.fidelity.com/
https://investor.vanguard.com/corporate-…

Get the Roth Account first than branch out into other investments, once you study and learn about investments. The target year account would adjust on its own. Don’t waste your life and later on down the road, you would have alot of regrets. Once you get a job that offer 401(k) or 403(b). Take advantage of the company 401(k) or 403(b). Never leave free money on the table. Get this started today

Take Care

Susan asks…

Why do liberals pretend the free market doesn’t work when everything has government involved?

Economy- The Federal Reserve was created by Congress. They set interest rates (control the price of money)

Schools- government run

Health care- government run

Social Security- government run ponzi scheme

Since we have the EPA now, shouldn’t all environmental concerns be gone?

Nagesh answers:

I’m not really sure why or that it is exclusive to liberals, except to say that it is rooted in ignorance and/or a lack of critical reasoning capabilities.

But I agree with you and have made the very same point to others.

Calling the current debacle a free market, then using it as a premise to argue against it is like calling apples oranges, then using it to make the case with something regarding bananas.

Creating a false premise by misrepresenting your opponents position, then arguing against it is commonly known as a “straw man” argument.

John asks…

How do you get overseas funds into the United States?

I just got word that I am to receive something over $100K from a trust based in Hong Kong (before you ask, no this isn’t a scam). What kind of taxes will I be subjected to upon entry into the United States? Obviously, I want to stay on the level here – but are there any creative ways (i.e. “loopholes”) to minimize tax liability when bringing the money into the US, such as buying corporate stock or even a block of gold?

Nagesh answers:

If you are a U.S. Citizen or green card holder, you are taxed on your worldwide income. The payment to you as beneficiary of the trust was your income the moment you became the owner of the money, regardless of when the money “enters” the U.S. At some point after that. If you bought stocks or gold with the money while it was still sitting in a foreign account in HK, it would be no different than if you received the money in the U.S. And then bought something with it. The purchase would not change the fact that you received the income (and you can’t assign your income to someone else before you receive it).

HK may impose a tax on the money as it “leaves” HK. This is called a withholding tax. If HK requires you to pay income taxes in the form of withholding taxes, you would typically be able to receive a foreign tax credit from the U.S. For the amount of taxes paid to HK. But this credit would not reduce your overall tax liability; it would only reduce your US tax liability to the extent of your HK tax liability.

Douglas apparently wants you to take your $100,000 and “invest” it overseas by “betting” on financial markets. Besides being obvious spam, he has completely missed the point of your question. His web site advertises that the gains on your investments would be tax free if you use his system. Even assuming that is true (and I doubt very much that it is), your question is not about the taxability of additional money you make from investing your $100,000. It’s about the taxability of the $100,000 before you ever invest it. Nothing in his little scheme would change the the US taxation of income from the trust.

Daniel asks…

How do I get free money or easy money either through paypal or another way. I just need to find a way to make?

a s h it load of money now no joke only serious inquiries if you joke then you will get reported as abuse, no threats to the nice people just try to get back asap and if its a good answer I will select it as the best answer.

Nagesh answers:

Which part of Paypal’s AUP forbidding get rich quick schemes did you not understand?

Jenny asks…

How does whole life insurance work?

I mean, everybody dies, so… wouldn’t the insurance company always end up losing money? Do you have to die in a specific way or something?

Nagesh answers:

The dirty little secret with term life is that very few people just suddenly die, especially under the age of 50. So the insurance companies hardly ever have to pay off.Whole life operates in a similar way. The insurance portion usually runs from 20-30 years, and at the end of that term, it “matures.” What “matures” means is the life insurance part of the program ends and you’re left with the extra money you’ve been paying in all these years. And, of course, the insurance company has been able to use your money all these decades in its own investments. And the amount of interest or dividends the insurance company has paid into your account is usually lower than what you yourself might have been able to accomplish with an IRA, SEP or 401k.Again, people are living longer and the insurance companies don’t have to pay out to too many people.Life insurance is a numbers game, and the insurance companies know that they numbers are on their side So that’s how they stay in business. It’s extremely profitable. Insurance companies invest the money that you pay in. By doing that they are actually making money off of your policy. Plus, some people take an early pay-out–they use it as a savings plan (BAD OPTION). The insurance company makes money off of things like that as well. If you invested the same amount of money that you put into life insurance your payout would actually be bigger than what it is with a life insurance policy (if you live to enjoy an old age). Another thing to note is that you really only need enough life insurance to cover you while you are working and have children in the house. This is called term insurance. It’s much less expensive and only covers you for a certain number of years. All other life insurance is a BAD investment (whole life policies etc). Take your money and invest it properly and you’ll have a better return. Insurance is to CYA. If you’re not working anymore then you’re living off of your investments anyways…what do you need life insurance for at that point? Also, feel free to check out Dave Ramsey’s perspective on this. Financial Peace University is a program that will break this kind of stuff down for the average consumer so that it makes sense and you can make good decisions.While the one insured in paying into the company each month, the company is investing that money and making a profit from it. Fact is, if Americans did their own saving, they could be well off by the time they retire. Social Security exists exactly because Americans stopped saving and the Great Depression deleted the savings of many who did. Primerica’s model is to buy (cheaper) term insurance AND be saving money regularly that is invested in the stock market (while that sounds queasy, it’s exactly what the banks do.) Their point is that much of the insurance premium that is invested, is invested for the person, not the company. By the time the “term life insurance” expires, the person has enough invested to form a retirement anyway. That way, he’s covered on both ends of life. Yes, everyone dies, but not at the same time.Think of it as a sort of perpetual pyramid scheme. It would collapse if they stopped acquiring new insurers, or if everyone did indeed die at the same time, but otherwise it is a functional system.The banking system is the same way in fact. Only a portion of the deposits people put in there are actually in the bank vault (something like 10%, I forget). So if everyone went to get their money out of the bank at the same time, it would collapse. Its dependent on new depositors, and new loans making it money…while only a small portion of depositors withdraw their money at any one time. Another perpetual pyramid schemeEveryone dies, but nobody knows when. Until then, you pay in continuously. The longer you pay in, the better the insurance company does. (And since “paying in” means “being alive”, most people are happy to do it.)Insurance companies also invest the money they get. AIG, the beleaguered financial firm, is an insurance company first. (That’s the I in AIG.) Managed well, those investments pay interest, and you’ve seen what compound interest can do.The insurance companies carefully calculate your odds of dying in a given time frame and base the cost of a policy on that, with a little padding for profit. They hire “actuaries”, statisticians who know disturbingly much about how likely you are to die. They end up making a tidy profit on it.When you get old enough, the likelihood is too high and the insurance companies stop selling it to you. Sometimes that’s simply the end of it; those are the least expensive plans. Under some kinds of policies (permanent term or whole life), they start paying out the results the investments. Take Care

Money Making Schemes