Get the Scoop on Generics

     Do you always buy name brand products?  The fact is that name brand products have a large marketing budget to make the product seem superior to the generic alternative.  When comparing the well known product vs. generic, you will find that they are almost always manufactured with the same components, ingredients, or raw materials.  In fact, most brand name label companies also produce private label goods.  Private label goods are the in-store generic products.

   These products are usually produced by a name brand manufacturer but packaged to accommodate the retailers' brand.  Private label is just another income stream to supplement their main money makers.  Most large manufacturers won't produce private label competing products, but they will manufacture a similar product. 

An example:  A name brand manufacturer that produces jars of peanut butter may also produce bags of private label peanuts. 


     Retailers prefer to sell their store brand products because private label profit margins are generally higher.  Stores are able to control the retail price without having to worry about product discounts, deals, and coupons (which eat away at a store's bottom line).  Generics can save you up to 50% off and sometimes more.  Look at your shirt.  Does it have a guy on a horse logo?  If so, you most likely paid 300-400% more to have it on there (so take good care of it). 
 
    There are times when the quality of a generic product doesn't stand up to its brand name counterpart.  In general, you don't know the quality of an item until after you make the purchase. 
Some products are worth the extra cost.  There is one item in our household that will never be replaced by it's generic cousin:

What are some irreplaceable brand name items in your home? 

What are some generic products that are saving you some mega cash?

5 Ways to Avoid Paying State Sales Tax

1.     Shop online-  When you purchase items from a company that is based in a different state than you, the business will not charge you their state sales tax.

2.     Go off the grid-  Shop auctions, flea markets, garage sales, and classifieds to avoid paying the tax. 

3.     Buy on vacation-  According to the Sales Tax Clearinghouse, the following states don't charge sales tax:  Alaska, Delaware, Montana, New Hampshire, and Oregon.  Make sure to pack light so you have room to bring back all your favorite souvenirs!

4.    Timely purchases-  Most states have promotional tax free weekends for "back to school" type shopping. 

5.    Stick to groceries-  When you eat out, you pay!  In most states, there is no sales tax on groceries.  Be careful because there is a fine line between groceries and convenience foods.  Convenience foods such as potato chips, soda, and other snacks may not have the same exemption.

Want to learn more?  Get The Ultimate Tax Reduction Guide

I Lost My Job and My Unemployment Benefits are Expired...Now What

     I hate to break it to you, but get a job!  Maybe get two jobs.  Employers in your industry are not hiring in your city, does this mean that you're a victim?  Of course not.  Remember, you still have options. 
     You're first option is to get two full-time (no-brainer) jobs.  During college I delivered pizza and earned nearly $20 per hour!  After you consider gas and vehicle depreciation, that still nets $15 per hour.  Many of my shifts were early evening until late night (5 pm until 1am), still allowing me time for class and studying.  This free time could allow you to take a job during the day.  I have a college friend that worked as a waiter outside of school.  He also took home anywhere from $10 to $20 per hour (depending on business).  If you could work 30 hours waiting tables and 40 hours delivering pizza at an average take home wage of $15 per hour, you would make $54,000 per year!
    If you aren't ambitious enough to work two jobs, then you better start looking elsewhere.  There are plenty of available positions to apply, just not in your city.  Maybe it's time to pack your bags and land a job in a new town.  Start looking from home before you make any leaps of faith.  Look for jobs across the U.S. at both Careerbuilder.com and Monster.com.  Before you go to an interview, make sure you get the Ultimate Guide to Job Interview Answers and study up!
    Another option is to start a business.  Many successful businesses were started due to a layoff or firing.  Think about all the skills and talents that you have accumulated over the years working for someone else.  If you can provide a quality service at a competitive price, then you're hired!  Create profiles on Elance.com and Guru.com telling prospective clients about your experience and talent.  Complete a couple of impressive projects and your reputation will bring more business.
    There are many ways to find success after losing a job.  No matter what you decide, do something now!  Don't wait for an opportunity to find you, mainly because it won't.

5 Things You Must Have on Your Resume

1.     Relevant Experience-  This is a must!  Employers want to see that you know what you're doing!  Taking a chance on an applicant with no relevant experience is too risky, especially when there is such a large pool of potential employees on the market.  Experience doesn't just have to be a former job.  It can be from internships, volunteering, or even an involved school/community project.  Be Creative!

2.     Stable Employment History-  Employers don't want job hoppers!  Hiring a new employee is risky because it is expensive to train an employee to become efficient at their job.  High turnover can eat away at a company's bottom line.  Just be careful when you select your next job, because you should stay at least 2-3 years in that position.

3.     Entrepreneurial Experience-  Do you own a small business?  Have you ever owned a small business?  Companies look for candidates that have this kind of experience in every industry.  Why?  Owning a business takes a LOT of hard work and persistence.  Entrepreneurs also have a sense of all the expenses involved in a running a business.  Employers believe that they will be more efficient and cost saving employees.

4.     Education-  Think of education as the foundation to a house.  Education is learning the basics and history of a particular subject to help you increase your knowledge about that subject.  This will pave the way for your career so you don't build a house of cards (and see it collapse). 
        Sure, you can train someone how to give a flu shot.  Could you expect that same person to know how it works or what to do if something goes wrong?  Employers realize that employees with formal training have a more thorough understanding of their industry.

5.     Extra-curricular Activities-  No one wants to hire "plain Jane" that doesn't have a personality or life outside work.  Companies look for employees that won't "burnout".  They want to see that you have other interests besides your job field.  Activities also show a new boss that you "get along with others" and are approachable.  It doesn't matter what you do: bull riding, skydiving, scuba diving, sports, reading, dancing, horticulture, etc.  Make sure you let them know that you are no "plain Jane".


Need More Help?  How to Write a Professional Resume

Make Thousands by Getting a Mortgage

     There are many financial "gurus" out there telling you to buy a house with cash or to pay off your mortgage early.  It sounds like a great idea on the surface, but you could miss out on thousands if you take that advice.  If you can't get an interest rate under 9 percent, ignore what I'm about to say...
    
There are two BIG reasons to use your banker's money for your house:

      1.  Mortgage interest is tax deductible
               example:  A household in the 28% tax bracket with a $200,000 mortgage amortized over 30 years with an interest rate of 5% will save $2,781 in taxes during the first 12 months of the loan.  That same household will save $52,223 in taxes over the life of the loan!

      2.  You can invest your cash instead (and make up to thousands more than your conservative uncle Ed)
              example:  In our $200,000 example above, because you are not tying up all that cash in a house, you can invest the $200,000 into an index fund.  The S&P 500 had average annualized returns of 11.24% over the last 30 years (1980-2009).   

$200,000 invested into an S&P 500 index fund in 1980 and would be valued at $4,679,280 in 2009!  If uncle Ed only knew... 


Make even greater returns:  The Buffett System