From Barbeques to fireworks to parking at the beach, the 4th of July has always been a holiday of spending and celebration. This year however, people may think twice before dropping so much money on flags and food.

Last week I thought I had seen a drop in gas prices around my area (and by this I mean a little under $4 per gallon), however, this week gas prices seem to be sky rocketing again with the 4th of July weekend!

People love to hold BBQs and attend firework presentations, but this year consumers may cut back their spending with gas prices being on the rise. Not only will people think twice about traveling so far, but they may even cut back on their extravagant grilling and stick to the simple hamburgers and hot dogs.

According to a National Retail Federation survey, “59.4% of consumers say increased gas prices will impact their spending for the holiday, up from 42.1% of consumers who said so last year.”

The 4th of July celebration is huge for major cities across the United States. Boston, being a historical city, sees a large rise in tourists around this time each year. According to a recent Boston Globe article, the 4th of July draws around 160,000 out-of-state tourists to see the Boston Pops perform, the fireworks, and other attractions throughout the city. These tourists bring millions of dollars in profit to the city ranging from spending on hotels, tourist attractions, restaurants, bars, etc. Will Boston see a drop in these numbers? Or will people continue to flock to the city for the celebrations?

Even the retailers might see their sales struggling this 4th of July! Every commercial I see on TV is for the 4th of July weekend sales, this year is no exception. Hopefully the retailers have used their advertising budgets well and will see their sales stay consistent and not drop.

The decision is really up to you! Everywhere I go people are excited about the 4th of July so I personally haven’t seen such a drop in spending, but obviously people are considering this in their budgets.

So this year, will you spend less on your 4th of July weekend? Or will you find reasons to celebrate and ignore those rising gas prices?

Picture: Andrea Church

Retirement is a hot topic nowadays! With social security not guaranteed, people are trying to plan and prepare for the future more than ever.

BankingMyWay.com provides users with an easy step by step Retirement Calculator that lets you determine how much you should put away per month to reach your desired amount of money for retirement. The retirement calculator resource at BankingMyWay.com provides you with all the details to explain each number that you input into the calculator.

The retirement calculator takes into account your annual savings, expected rate of return, and your current age which will all have an impact on how much you should save each month.

Try out the calculator to see how much you should start saving today!

**Remember, saving early and planning your budget is one of the best things you can do to plan for your future!! Let Geezeo help you reach your expected retirement goals!**

Another reason not to drink and drive. From our partners at MainStreet.com.

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What A Fourth Of July DUI Could Cost You
By Juliana Bunim

The Fourth of July, in addition to being America’s birthday celebration, also happens to be the top U.S. holiday for beer sales.

But, before you crack open another bottle of Bud Light (BUD), if you also plan on getting behind the wheel, remember that the police are cracking down on drunk driving. Counties routinely boost highway patrol enforcement over holiday weekends, looking specifically for aggressive or impaired motorists and running screening checkpoints.

And, it doesn’t take much to send your blood alcohol level over the limit. If a 140- lb. driver imbibes four drinks over the course of a three hour barbeque, it’s enough to put him or her well over the .08 blood alcohol limit and behind bars. (One drink is considered to be 1¼ oz. of 80-proof liquor, 12 oz. of beer, or 4 oz. of wine – something to keep in mind if your bartender or host is heavy handed.)

It’s paramount to billboard that impaired driving costs lives. Something to be considered—on an infinitesimally more minor scale—is that DUI charges can also wreck havoc on your financial health, too. A court fine for a first offense typically ranges between $1,200 and $2,500, according to William C. Makler, a Santa Barbara, Calif. attorney specializing in DUIs. If police take your vehicle into custody, add impound and storage fees of around $1,500, along with a $115 booking fee. Getting your restricted license and, eventually, your permanent one, costs another $120 in reinstatement fees. Mandatory drug and alcohol assessment and counseling also costs about $600. Those are just some obvious costs. If your erratic driving required emergency response — the fire department or paramedics — there is a cost recovery statute that bills you for their efforts, which can run from $700 to $2,000. Already, we’re talking potentially $7,000.

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Okay, so I have my top financial goals in mind. How do I take action? How do I find the money to fund my goals?

(Can’t name your top three financial goals? Maybe you should review our “back to basics” series.)

Here are the top approaches you should use to find the “extra” money necessary:

Budget

No one likes the word, and fewer like the action. Luckily, you don’t have to be a perfectionist. Even a broad budget will help keep your spending in line. However, the more detailed your budget the more control you’ll have over your money and the more likely you’ll uncover more available cash. Geezeo’s budget tools include setting category-specific “spending targets”. Some set spending targets named “Savings” or “Investing” to stay on mission.

Tax Savings

Adjust your withholding to accurately reflect your tax obligation. Dump your fat yearly tax refund. Instead, take an increase in weekly pay. Put this money to work for you directly. It takes discipline but it can pay off because this money is earning interest for you year-round instead of returning to you interest free from Uncle Sam.

Cutting Expenses

Oh, no! No one likes this suggestion. But, cutting expenses can be the most effective strategy since many of us are prone to overspending. The trick with cutting expenses is to really cut them — and not use reduced spending in one area as an excuse to spend more in another category.

Look at your budget carefully and itemize all expenses. Evaluate each one as a necessity or indulgence and trim accordingly. One way to stay motivated is to take the money you “saved” and actually put it in a separate savings account or directly toward your goals. This habit makes the money “saved” more concrete.

Earn more

Obvious advice, no? Look for ways to increase your inflow with a second job or other income producing activity. Earmark this additional cash flow to put toward your financial goals. Separating it from your “regular” income or budget will help you from inadvertently spending it. Here are five ways to make an extra $1,500.

A will is probably one of the last things that someone wants to sit down and write. It really is not an easy task. How do you put your life onto paper? How do you decide who will take care of your children when you are gone? None of these are easy decisions, but it is better to take care of the specifics while you can and not leave any issues unanswered.

Why do you need a will?
A will makes sure that all of your property goes to the people that you want it to…this includes everything from your home, to your expensive jewelry, to everything as small as a book that was important to you or someone in your life. According to bankrate.com, 7 out of 10 Americans die without having composed a will. Although some people don’t feel they have enough to put into a will, writing one makes things run more smoothly for those you leave behind.

When does a will take effect?
A will only takes action upon your death. This means that you are able to change and revise your will as you please up until you are gone. Many people make sure to revise their will (or at least look at it) as often as they feel the need (maybe once a year) just to make sure nothing drastic needs to be changed.

According to an article on TheStreet.com about Writing Your Will, the person writing the will must be of “sound mind” and free of “undue influence.” This means that nobody can force you to put anything in your will that you don’t want to by threatening you. TheStreet article also states that your will must name all of the beneficiaries (those who will receive property or money) in your will and be signed by two witnesses who are not beneficiaries.

What will happen with the will?
When you are gone, in your will you will have appointed an executor of your will who will be responsible in making sure everything is carried out the correct way. The person you choose (lawyer, friend, etc.) should know that they are the executor and understand all of their responsibilities.

What about your children?
In the will, if your children are still minors you must make sure to find a legal guardian for them that you know and trust. This is one of the most important reason people write wills – to make sure their children will be okay.

A will is not something you want to put off until further into the future. If you have a house, money in savings and children, it is important that these all go to the people that are important to you in case anything does happen. Although a will is not something you will enjoy writing, it will give you peace of mind knowing that it is written.

Photo: Álvaro Daniel González Lamarque - Montevideo, Uruguay

Our partner, MainStreet.com, interviews Maxim magazine founder Felix Dennis. He’s written a new book, How to Get Rich. Check it out.
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Maxim’s Felix Dennis Reveals How To Get Rich
By Jessica Wakeman (07/02/08)

In a time of recession when the government is mailing out $600 rebate checks to stimulate the economy, shouldn’t a smart businessman sell a book called How to Get Rich?

That businessman is Felix Dennis, the chairman of Dennis Publishing – better known as the man responsible for the lad mag Maxim. Dennis is an outspoken, colorful chap with a background in music who rose up to become one of the wealthiest men in Britain. An Americanized version of his 2006 book How to Get Rich debuted here June 12.

He stopped to talk to MainStreet about making money.

MainStreet: Why is How to Get Rich based on all of your failures?

Felix Dennis: Nobody wants to read some boring, fat, old fart going on about his or her wonderful successes. It’s far more interesting to read about failure. And here’s the second thing, this is more important: It’s far more instructive. Understanding how people who made a lot of money failed again and again is instructive, it means that if you fail, you’re going to do it again.

Is now really the best time to get rich?

This is the best time ever to be in a startup. There’s room for creativity and there’s room for maneuverability. When everybody’s doing well, the big guys will steamroll you to death…Now that the recession is beginning to be accepted as a fact of life — though not necessarily if you look at the Fox [NWS] network — there has never been a better time. Launching entrepreneurial activities in a recession is a slam dunk.

But isn’t what you’re saying about startups counter to conventional wisdom?

All of the money I ever made was acting counter to conventional wisdom. (laughs) I think conventional wisdom is wisdom of a kind. It’s better than nothing. But it isn’t anything that helps people get a lot of money. If everybody’s doing it, then why would you think that you’re going to make a lot of money?

What do you think of the way Americans run their companies?

[Americans] actually believe in hierarchies! People are actually immensely respectful to the person they’re reporting to. (laughs) I can tell you in Europe we cease to be respectful to the person we’re reporting to in about third grade. I’m like Rodney Dangerfield; I can’t get any respect at all for the people that work for me in England, India, in Australia. When I come here… in the office, people say, “Good morning, Mr. Dennis.” I’m thinking, ‘What? What?’ (laughs)

One of the themes in your book is being willing to sacrifice if you want to be financially wealthy. What did you personally sacrifice for your career?

I forgot to have many sensible relationships. Forgot to get married, forgot to have children…I would have preferred it the other way. But, I was spending all day every day doing what I was doing and I had no time to figure it out…This is a pretty lonely road, you know. And, I do say throughout the book, ‘Are you sure you want to do this? Are you sure you want to do this?’ If their answer is ‘Yeah, I want to do this,’ I say, ‘Yeah, here’s what we do’ and then start off saying, ‘Are you sure you really want to do this?’ (laughs)

Another point you make in the book is about intelligence and how surrounding yourself with smart people is integral to success.

It’s been my experience that the vast majority of entrepreneurs are really not that bright (laughs) and I include myself in there. I truly do employ, and have employed, hundreds of people who are smarter than me. You can get people that are much, much smarter than you to actually make you a hell of a lot of money by working for you, providing you treat them properly. That doesn’t mean spoiling them and turning them into prima donnas or over-compensating them. It just means you’ve got to understand how to choose these people and motivate them.

You sound to me like you have a strong sense of self.

Yeah, maybe. But, if I had to do it over, would I do it the same way? No.

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Yesterday in our “back to basics” series we focused on how to gain an overview of your financial health. We also explored why knowing your top three financial goals is critical to your success. Today we climb the so-called “Risk Pyramid” and highlight five investment purposes.

Like the U.S.D.A.’s Food Pyramid, a personal finance “Risk Pyramid” is open to debate and interpretation. Still, it’s handy to know what the experts recommend. I take this overview from Paula Ann Monroe’s excellent book, “Left-Brain Finance for Right-Brain People”, (Chapter 6).

Here’s the structure of Monroe’s version of a Personal Finance Risk Pyramid:

Foundation - Shore Up The Basics:
Property, Casualty, Liability Insurance (to protect your assets)
Healthy and Disability Insurance (to protect your health and also your income-earning potential)
Life Insurance
Emergency Fund (I like to call this the “Emergency Prevention Fund”)
Personal Residence
Specific Savings Goal or College Fund
Retirement Plans

Income
Bonds and Government Securities
Income Mutual Funds and Blue Chip Stocks

Growth and Income
Rental Real Estate
Mutual Funds and Limited Partnerships

Growth
Common stocks and Growth Mutual Funds
Growth Limited Partnerships (e.g., movie rights, commercial real estate), Hard Assets, (e.g., works of art, precious metals) and Land (you know what land is…)

So, from bottom (basics) to top (growth) these are the financial components that make up your personal finance “risk pyramid”. As you move toward the top the investments have more associated risk.

Yes, owning empty land is one form of “risky”. This is one example where folks disagree on risk pyramid structure. Sure, they aren’t making more empty land. Unlike other investments, land value is associated with uncontrolled nearby conditions. In contrast, an asset on that land (like a home) could always be sold off or insured for financial protection against an unforeseen event.

How do you evaluate all these different investments? It breaks down like this: look at each asset in the pyramid on these criteria. Compare what you find to your goals, your tolerance for risk, and your specific situation. Here are the things to consider:

Safety
Liquidity
Income
Tax Advantages
Growth Potential

If you’re a beginner, focus on strengthening the base of your financial risk pyramid. Educate yourself and get professional opinions before attempting more sophisticated investment strategies. Use Geezeo’s tools and social resources to make more informed choices.

Finally, and the most important: finding purpose in your investments is a head and heart activity. Use your head to evaluate and implement your investment strategy. Use your heart to determine why you want to improve your financial situation. Incorporate giving to others as part of your strategy and you’ll find true purpose to stay financially fit.

Climb that pyramid!

I am currently still covered by my parent’s health insurance but only for the next 2 months! Yesterday I went to the doctor to receive a shot and realized that health insurance isn’t such a simple topic and it really depends on which insurance you have to know whether or not you are covered for certain things.

First of all, the shot that I received is the new Gardasil shot that they are recommending for women under the age of 26. Although this shot may be life changing for many, you must receive 3 shots and the shot costs around $350 PER SHOT…crazy huh? I couldn’t believe it…and after calling my insurance we still aren’t sure if they will cover it because many still don’t.

Secondly, health insurance coverage had never really been an issue or a concern for me. Always being covered under my parents has been nice, but I have also seen my fair share of emergency visits (migraines, allergies to bee stings, etc.) in the past few years and I am starting to wonder which coverage will be best for me when I start my new job. And within the price range that I am willing to pay each month of course!

I came home from my doctor’s appointment worried that I wouldn’t quite be ready in September for choosing the right health care plan for me unless I did some research first.

An article on MainStreet.com by Juliana Bunim titled “Just Got a Diploma? Here’s What You Need to Know About Health Insurance” seemed to pop right out at me and be exactly what I needed! The article explains that about 34% of college graduates aren’t covered by health insurance (I definitely did not want to be another statistic)!!

The article put things into perspective for me. Although another cost (especially for insurance) is not something that graduates want to pay out of their own pockets, health insurance is extremely important. Things may be going great for you right now (and hopefully nothing will happen) but if something were to go wrong, the cost of emergency fees, doctors’ visits and things along those lines can add up and become extremely expensive if you do not have a health insurance policy.

Short term health insurance is also available! If you are waiting to receive a job offer or are in between jobs, still make sure you are covered by some type of insurance. eHealthInsurance.com allows you to compare plans, figure out how much you can afford, and even sign up online!

After realizing how much one shot can cost, I hate to think what other tests and doctors visits can cost as well. Don’t put your financial certainty at risk. Use Geezeo to manage your budget and make sure to include your health insurance in there as well. Definitely better to be safe than sorry in the future!

Picture: Andrea Church

Cash in the tooth fillings and the old wedding rings. Time to invest in gold.