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Money in the News: Losing Money Edition

Below are some excellent recent articles regarding losing money or handling money poorly. Today marks the official “launch” day of The Money Drain. Though I’m not really doing anything special outside of the gift card contest to promote it right now. Just trying to network with people as I can’t afford to purchase ads on other sites yet. Oddly enough, not many people seem that interested in networking.

NPR posts about how the United States Post Office is losing money.

It hasn’t been able to cover its annual budget since 2007, according to Businessweek. But its ability to shrink is limited.

Money Crashers posts about plugging your financial leaks to prevent from flushing money down the money drain.

For example, we got rid of our home phone service a while back and were pleasantly surprised at how much nicer it is without it. As a bonus, we’ll be paying about $240 less a year to no longer be annoyed by telemarketers. So that was definitely a leak.

Go Frugal Blog posts 18 ways consumers shed their cash, which relates well to the money drain.

10. Paying Late Fees
It’s easy to overlook bill-payment deadlines when you face a stack each month. Miss a credit-card payment by as little as one day and you’ll pay a late fee of $25 to $35 dollars and, perhaps, get a ding on your credit report.

CNN Money posts about a man who is spending $250,000 on guns as his retirement plan, much to his wife’s dismay.

First, unless the $250,000 your husband has spent so far is a very, very small part of a much larger retirement kitty — and I mean something along the lines of $5 million or more — his strategy is seriously flawed because it’s not diversified.

CNN Money posts about a couple that makes over $220,000 but have no emergency fund. And it’s costing them money.

As a result, when they needed a new roof in 2009, they had to borrow from their 401(k)s. Credit cards got them through other jams, but they’ve run up a $20,000 balance.

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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2 Responses to Money in the News: Losing Money Edition

  1. Art says:

    The real problem for the Postal Service is that it has to pay for itself yet it has to ask Congress to make changes — or increase rates. It’s like they combined the worst parts of being a government entity and being a corporation.

    If it wasn’t for having DSL on the home phone, hmm… everyone except my father calls us on the cell phones now.

    • Crystal says:

      Yeah I feel bad for the postal service. I think they grew way too big for the type of organization it is. I don’t necessarily have any ideas on how to help it either, but downsizing it into smaller entities sounds amusing. I can’t imagine going to the local gas station to process packages.

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