A new phone scam

One of the downsides about having a phone is getting phone scam calls. The latest scam is for the caller to leave a recorded message that does not include your name but says “You are a person of interest in a formal proceeding. We have tried to contact you several times, so please call this number to discuss this issue.”

This is a scam. I am certain someone at the number I am asked to call back would ask me to wire money to make it go away. If I was a person of interest, they would not be calling me.

This serves as a reminder of other scams. Top of mind, here are a few to watch out for:

– IRS Scam: Someone will call leaving a message that you owe back taxes and the IRS will seek legal action to collect. The IRS will send you a letter if there is an issue with your taxes.

– Grandparent scam: The caller will pretend to be a grandchild and wait for the person to give the caller a name of a grandchild. The caller then assumes that identity. Typically, the faux grandchild says they have been in an accident and need money wired.

– Microsoft scam: This scam uses a caller who says Microsoft has detected that you are having computer problems. They want access to your computer at which time they will glean important financial information and passwords.

This does not address aggressive marketing attempts where the caller appears to be your credit card company. They are not really, but just want to issue you another credit card. It also doesn’t address other unscrupulous schemes where callers pretend to be who they are not to sell another product. Nor does it address the email phishing attempts that will allow someone to commandeer your computer.

Be on the look out. People want your money. Too many will lie, cheat and steal. All it takes is one bite to get hooked on a bad deal for you. What are some of the other scams you have come across?

Don’t let Black Friday take you into the red and other savings ideas

In the US, the day after Thanksgiving is known as “Black Friday” which is the official launch of holiday shopping. Some even start on Thanksgiving, which is usurping the best family holiday in America, for people to spend money. If you are an American or know one, you know that Americans like to do two things more than anything else – be entertained and buy stuff.

I have written before about ways to save money, as we have too many folks who want yours. Let me use this Black Friday to rehash a few of them and speak to the holiday season where buying gifts is done in excess. If you follow a few of these, you will end up with more money to live better, have less stress, retire earlier, and be more in control of your life. In no particular order:

– you don’t need to participate in Black Friday. Trust me, the retailers will get desperate closer to Christmas and layer in discounts. You will also be less tempted to buy if you take your time.

– speak with your family and friends about gift giving. Maybe you could limit the giving to the kids or have a charity donation for adults donating a small sum to a favorite charity of the recipient.

– for year-round, do not play the lottery. I have written several posts on this, but my favorite line is from John Oliver who stated your chances of winning the lottery are the same as being struck by lightning while being bitten by a shark. Save the $10 a week and at year-end you will have $520 plus interest.

– for borrowing, tear up all credit cards but one or two. You do not need more than that. My wife and I get 3 to 5 offers a week for new cards. You get very popular when you manage your debt and save a lot of money.

– do not borrow from pay-day lenders. They are one step above leg-breakers and you will quickly spiral into a rabbit hole of debt with over a 1000% interest rate. I am not making this up. This is about the worst thing you could do if in trouble.

– be wary of credit consolidators. They are not all created equal, so do your homework. Also, there are a number of non-profit advisors who can help you consolidate or manage your debt.

– be wary of for-profit colleges which are 5 to 6 times the cost of community colleges. A rule of thumb, the bigger the celebrity advertising the college, the worse its record for graduating. These colleges prey on veterans, spend more on marketing than education and graduate less than 15% of their students.

– if you have no health coverage, sign up for the Affordable Care Act at http://www.healthcare.gov. Subsidies to pay for premiums are available up to $95,000 in income for a family of four, higher if a larger family and lower if smaller. Healthcare coverage will get you doing preventive medicine rather than reactive medicine and keep you from going bankrupt.

– if you work, save in your 401(k) plan or something similar. Using payroll deduction, it is like paying yourself first, especially when the employer will match your savings.

Finally, be wary of scammers. If it sounds too good to be true, it usually is. Many scammers prey on church and association leaders to get at others, prey on the elderly with confusion, and prey on everyone with fear (IRS scams, power shut off scams, computer repair scams, etc.). If someone offers you a potential high rate of return with no risk of loss, it is a scam.

If you do all of these things, great. If you know someone who would benefit from the advice of an old fart, please send them this link. Always remember, you do not have to buy anything except food, water, minimal clothing, transportation and shelter. The rest becomes wants and can be managed. Happy holidays.