Obama’s public health insurance might not push through

President Obama has been bent on providing public healthy insurance. While this is probably something all Americans dream of having, the proposal has hit quite the opposition from both Republicans and Democrats alike that it is most likely to be scrapped.

Health care has been on the legislature’s agenda. The administration aimed to run a health insurance corporation to help out the 50 million uninsured Americans. This, however, isn’t part of the core health care reform proposals.

Facing mounting opposition to the overhaul, administration officials left open the chance for a compromise with Republicans that would include health insurance cooperatives instead of a government-run plan. Such a concession probably would enrage Obama’s liberal supporters but could deliver a much-needed victory on a top domestic priority opposed by GOP lawmakers.

The relation of health insurance and mortality rates have been very well documented. For one, the lack of insurance often prevents people from seeking preventive care. Sickness are often caught in their late and extreme stages.

Should depositors worry if their bank fails?

So far, 72 banks failed this year and another one is poised to go belly up according to the Federal Deposit Insurance Corporation. With banks failing, is it time for the beleaguered public to worry about their money in the bank?

Not really. The FDIC covers all depositors for up to $250,000. So that means that you are guaranteed to get back all your deposits within the coverage if your bank happens to fail. Never has a depositor lost his money covered by the FDIC in the corporation’s 75-year history.

“When your money is in a bank that is FDIC insured it is backed by the full force of the United States government, and it doesn’t get any better than that,” said American Bankers Association’s Carol Kaplan. So, if your cash is in an account with less than $250,000 at a bank insured by the FDIC, “there is virtually no way you are going to lose your money.”

Now what if you have more than $250,000 in the bank? Remember that the FDIC covers per depositors so all you have to do is to open another account under a different name (like your wife’s) and the new account. If you won’t be able to, then arrange for the excess to be transferred to a different bank.

If your bank happens to fail, don’t worry. The FDIC will make your deposits available for you.

Avoid comfort shopping

I know quite a lot of people who shop when they feel bad. A bad morning can prompt them to skip work and head to the mall instead armed with their credit cards. For some reason, buying something makes them feel “better.” But it’s a vicious cycle, really since the ritual only seems to happen every time they receive their credit card statements.

If money problems make you feel bad, then there’s absolutely no reason for you to dig yourself a deeper hole just to make yourself feel better for just a few hours. On a financial standpoint, it’s just plain suicide. Your finances would be really shot to sh*t all the while the high you get for buying those new shoes will be very very short term.

Avoid going to the mall when you feel down. With all the commerce and merchandise around you, chances are you’d be tempted to “treat” yourself to something just to feel good. Sooner or later, you’d be swiping your credit card all over the place and .

A better alternative to lift your mood up is to exercise. Put on those running shoes and be physically active. Let your body chemistry do the cheering up for you. This way, the only thing you’ll lose is fat and calories.

Avoid paying full price

It’s a conventional “wisdom” when buying high-priced item – never buy anything at sticker price. It’s a given that the sticker price (say, for a car) is already a padded amount with a piece of it set for the dealership and another slice going to the salesperson. But how about for common-price items, can you still avoid paying full price?

Sure. Just like any item, there’s always a profit margin. Definitely for everyday items though, the margin’s a smaller gross amount since stores often rely on bulk. Here are some tips to help you pay less and save more.

Haggle. Negotiation skills always come in handy. Ask for discounts from the store clerk. If they say they’re not authorized, ask the store manager.

Pay in cash. Credit card transactions cost merchants at least 7% of the sale price when you pay using your card. If you pay in cash, merchants avoid paying the transaction fees so you can use this as leverage when buying and paying in cash.

Ask for the sale items. Most stores feature a sale section where you’d always find items at lesser prices. Most would have bins scattered around the store where sale items can be had.

Time purchases right. Some stores feature seasonal sales where you can get items at fraction of the cost. Most salespeople are aware of when these sales happen so feel free to ask them. If they’re not aware, again, ask the store manager. These things are planned months in advance anyway.

5 Secrets of successful savers

Money easily comes and goes. At some point in our lives, we sincerely swore to ourselves that we’ll start saving. But despite those solid intentions, most of the time, we end up failing. Saving becomes a larger problem when you’re still paying off student loans or other types of debt. Below are the five secrets of successful savers. Maybe you can follow their lead.

They started slowly. The first few steps are the hardest. Don’t force yourself into slashing 10% off your salary if you still can’t. Start saving a small amount towards bigger savings.

They read about financial and economic news. People who pay attention to financial news while saving are called ‘active savers’. Being updated on the financial and economic news can help you learn basic principles that are essential to making your savings grow.

They save regularly, often through automated systems. This is made easy through online banking. You can try inquiring with your HR department on the option for an automatic savings account where your paycheck can automatically go every payday.

They find saving pleasurable. This might sound odd – to enjoy depriving yourself of the pleasure of spending. But teach yourself to enjoy saving. Just think of the benefits of financial security.

They first began saving as a child. You might not be able to do something about this at this point in your life. But you can always teach your future kids to be savers. Successful savers started young and their parents taught and encouraged them to continue doing it for financial stability.

Things hotels won’t tell you

Your hotel is your home when you’re away from home. But, unlike your real home, there are sneaky things about hotels that you might want to know.

“In tough times we have to discount – creatively.”

The year 2009 was the worst year for the hotel industry. Last year was just slightly better. Undeniably, the recession hit the industry real bad. Because of this, hotels cut back on little amenities to stay afloat. Some hotels, for example, stopped replacing soap and providing body wash and mouth wash, but compensates by offering free parking, gift cards, and other little perks.

“Book with us to get an upgrade.”

The hotel typically pays a commission of up to 30% when you book a room via third-party sites, such as Expedia and Travelocity. Thus, taking out the middleman in the picture will lower down the cost. Booking directly, on the other hand, gives you a better chance of getting upgrades and other fancy perks.

“We can be sneaky about our best deals.”

Most hotels are franchises. This allows individual owners to offer the best deals the way they want. Hotel Indigo, for example, once offered its $185 rooms for only $99 to its followers on Twitter. In two hours, 45 rooms got booked.

“Your room won’t really look like this.”

Hotel marketing can be really deceiving. Obviously, hotel owners want to make their rooms appear as captivating as possible. But even if there’s a move to ensure that images in websites, brochures, leaflets, and the like, are accurate, the problem is that there are no specific written guidelines for regulation.

“Kiss your credit card data goodbye.”

Hotels are data mines for identity thieves. Statistics from digital-security firm Trustwave explain that almost 38% of credit card hacking cases were from the hospitality industry. The good news is that more and more hotels are getting concerned and are putting a lot of effort and energy toward data security.

AIG to hold first shareholders’ meeting with US taxpayers in control

Former insurance giant AIG owes quite a lot to US taxpayers. Not only does the company owe taxpayers billions of dollars in form of bailout funds, it also has to win back the people’s trust after the executive bonus fiasco. AIG contracted the ire of the people after handing out millions of dollars to executives as bonuses despite being bailed out by the government.

AIG is set to hold its annual shareholder’s meeting on Tuesday – the first since the US taxpayers took majority control. Taxpayers will be represented by three trustees from the government.

Part of the plan is to elect six new officers to the 11-seat board of directors. Those to be ousted from the board is current Chairman and CEO Edward Liddy. Liddy has already announced that he will be stepping down from his positions last month. His positions are expected to be filled by two separate people.

AIG owes the government $70 billion dollars. The company estimates that it might take them five years to fully repay the debt.