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Money in the News: Motorola Cutting 800 jobs, Woman Demands Someone Pay for her 15 Kids, $300 Million Wasted by the Navy

Hexus posts about how Motorola Mobility is cutting 800 jobs.

These cuts will come at an initial pre-tax loss of $27 million in severance pay and a further $4 million in costs involved in closing down sites. Although no one cherishes the announcement of job losses, it was reasonable to expect such a move given the imminent $12.5 billion acquisition by Google, along with Motorola’s current net losses; two factors that when combined risk creating a rather large money drain as posts become redundant and losses increase. With an average severance pay of $33,750, hopefully Motorola employees will leave the company on relatively happy terms.

I need a category for stupid people on here I think. Have you guys seen this video of a woman who has 15 kids and says “someone needs to pay for all her children and be held accountable”.

Jalopnik posted an article a while back I’ve been wanting to mention about how the Navy built two tankers for $300 million that never saw a tour of duty and are now being scrapped. Talk about a massive money drain!

The ships, the Benjamin Isherwood and the Henry Eckford, are being destroyed this month after having spent the last several years as part of the so-called ghost fleet of rotting and antiquated naval and merchant ships moored in the James River in Newport News.

“Well, now we know why they’re called ghost fleets. They haunt taxpayers with costs for decades and, once we see the cost for getting rid of them, we all want to drop dead,” said Pete Sepp of the National Taxpayers Union.

WalletBlog posts about what they feel are the Top Six Money Saving Tips for your Household.

1. Pay your credit cards off in full every month. The interest you will pay if you carry a balance from month to month is astronomical and not something you even want to think about! Okay, maybe thinking about it for a minute is essential to driving the point home. Consider the fact that a $1,000 balance that is being charged at 18 % will cost you approximately $200 a year in interest charges. Wouldn’t you rather keep that $200 in your bank account? When you use them pay them off- completely!

CS Monitor goes over the question on whether you should save money or pay debt in a Q&A series.

If I were you, I’d follow a very simple plan.

First, I’d set aside about $1,000 for an emergency fund. This would help you in the event of a personal crisis or other such issue.

Next, I would take the rest of your savings and apply it to eliminating debts that are above the 8% you can get in a CD. I would start with that 14% mortgage. I would just eliminate the whole thing with your savings.

If you have all of your debts eliminated that have an interest rate higher than the CDs available to you, then I would return to a focus on savings. As long as you’re getting a return that’s higher than the interest rate on your debt, keep saving. If your debt interest rate is higher, pay off debt.

This will get you into the best financial shape for the future, I think.

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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