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6 Unusual Ways to Make Money From Home

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advertising mail for background ...
Feng Yu/ShutterstockYou can make money from your junk mail.
We've all heard the same-old, same-old suggestions for ways to make money from home: become an eBay seller, join online focus groups, start a blog. And while those are all great ideas, what if you're looking for something a little more ... different?

Whether you're not interesting in the usual suggestions or you're looking for something additional, here are six cool, lesser-known ways to earn some extra income from home.

1. Rent Out Parts of Your Home

In the past two years, I've earned an extra $40,800 by simply renting out the rooms in my home.

One of the easiest ways to make money from home is to -- literally -- make money from your home. Airbnb isn't just for renting out your whole house or apartment when you're on vacation; you can also rent part of your home, whether it's a guest room or a finished basement. You can also arrange short-term rentals through Roomorama or even Craigslist.

Got room in your garage, basement or an extra crawlspace in your attic? You can also rent out storage space in your home through Store at My House or StoreWithMe. If you've got an office you rarely use, you can rent it out through Desktime. You can even rent out your driveway for a fee through JustPark or Park On My Drive.

2. Pet Sit

If you're a dog lover, you can earn some extra dough by opening up your home to pups whose owners need to take a little time away. Sites like DogVacay and Rover allow you to list various services, from daycare to overnight sitting to walking and grooming, to turn your passion for pets into a nice little side business. Both sites provide insurance coverage for the animals in your care should an emergency arise while they're with you.

You set your hours of availability, then get paid to play, pet and cuddle adorable pooches in your spare time. How sweet is that?

3. Rent Out Your Car

Have a car you rarely use? Don't let it just sit there; put it to work for you by renting it out on sites like RelayRides and Getaround. Tell people when you won't be needing your car and you can get some extra cash for that vehicle that would otherwise just be taking up space.

If you're worried about someone damaging your car, these companies have you covered. Renters are required to purchase insurance policies and also to have your car cleaned and detailed if they get it dirty while using it.

4. Sell Your Junk Mail and Inserts

Most of just throw away those unsolicited offers that arrive in the mail, as well as the inserts in the Sunday paper. But there are companies and individuals who will actually pay you for these things.

Market research company SBK Center provides you with self-addressed, stamped envelopes to send all of your unwanted junk mail to it. You receive points for each piece of mail, which can then be redeemed for prepaid Visa cards. If you belong to any store mailing lists, you can also sell any high-value coupons you receive that you don't plan on using -- just create an eBay listing and let people bid away.

5. Turn Your Photos to Cash

Develop a popular enough Instagram or SnapChat following and you can court sponsorships. To make this a reality, you'll need to set up "photo shoots" at your home, backyard, local park or somewhere else interesting. You can take your pics with an iPhone; they don't necessarily need to be professional or highly edited. Just make sure each photo is high-quality and will grab people's attention: great composition, lighting, setup, awesome fashion and an engaging and lively pose and expression.

Post two or three photos per day, along with an engaging description that's personal and connects with your followers. Use hashtags so that people can find you. Comment on other Instagram photos and follow other users to build a community. Set up a website so advertisers and followers can connect with you.

Will you earn money overnight? Of course not. This isn't a get-rick-quick scheme. But if you nurture a following, you can become a mini-celebrity and start supplementing your income with sponsorships and advertising.

6. Rent Out Your Wardrobe

Bought a lovely evening gown for a wedding or party you've only worn once? Only wear half the items in your closet, even though they're all well-kept and still fashionable? You can make some spare cash from those clothes through sites like Tradesy, RentNotBuy and Loanables. You can also rent out accessories like shoes, handbags, jewelry and more.

Paula Pant quit her 9-to-5 job, traveled to 32 countries, launched her own business and became a successful real estate investor. Her website, Afford Anything, helps people create wealth and live an epic adventure.

 

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Market Wrap: Wall Street Drops on Tech; Indexes Up for Month

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Markets React To Fed Announcement On Interest Rates
Spencer Platt/Getty Images
By Caroline Valetkevitch

NEW YORK -- U.S. stocks sold off Thursday, led by a drop in the Nasdaq, as Apple shares declined and results in tech and biotech names disappointed.

Upbeat economic reports added to uncertainty about the outlook for interest rates, a day after data showed the U.S. economy slowed to a crawl in the first quarter and the Federal Reserve pointed to weakness in the labor market and other areas of the U.S. economy.

Despite the day's decline, all three major indexes posted slight gains for April.

The Nasdaq biotech index dropped 3.1 percent, led by a 4.5 percent fall in Celgene (CELG), which reported lower-than-expected quarterly revenue.

We didn't get a rally off of the Fed statement and that kind of set the stage for this morning.

The decline marked a fifth day of losses for the biotech index, bringing losses in the index to 8.1 percent for the week so far. The Nasdaq fell for its fourth straight session, while the S&P tech index fell 1.6 percent, the day's worst-performing sector.

Apple (AAPL) was down 2.7 percent at $125.15 and was the biggest drag on the Dow, S&P 500 and the Nasdaq. The company limited the availability of the Apple Watch after a key component was found to be defective, according to The Wall Street Journal.

"We didn't get a rally off of the Fed statement and that kind of set the stage for this morning," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"It didn't add any clarity. That kind of tied in with not a lousy earnings season but a flattish earnings season. There's just not a compelling reason to buy."

The Dow Jones industrial average (^DJI) fell 195.01 points, or 1.1 percent, to 17,840.52, the Standard & Poor's 500 index (^GSPC) lost 21.34 points, or 1 percent, to 2,085.51 and the Nasdaq composite (^IXIC) dropped 82.22 points, or 1.6 percent, to 4,941.42.

For the month, the Dow was up 0.4 percent, the S&P 500 gained 0.9 percent and the Nasdaq rose 0.8 percent.

The day's data included a report showing the number of Americans filing new claims for jobless benefits tumbled to a 15-year low last week, which suggested the economy is picking up.

Stocks Making Moves

Among other decliners, Yelp (YELP) shares slumped 23.2 percent to $39.39 a day after the consumer review website operator forecast second-quarter revenue below analyst expectations.

Baidu (BIDU) declined 8.5 percent to $200.28 after China's dominant Internet search engine provider posted its slowest quarterly revenue growth rate in almost seven years.

S&P 500 earnings for the first quarter now are forecast to have increased 1.1 percent from a year ago, Thomson Reuters (TRI) data showed, while revenue is forecast to be down 3.2 percent.

Declining issues outnumbered advancing ones on the NYSE by 2,355 to 693; on the Nasdaq, 2,131 issues fell and 647 advanced.

The benchmark S&P 500 index posted six new 52-week highs and three new lows; the Nasdaq composite recorded 39 new highs and 91 new lows.

About 7.8 billion shares changed hands on U.S. exchanges, compared with the 6.3 billion daily average for the month to date, according to data from BATS Global Markets.

What to watch Friday:
  • Automakers release vehicle sales for April.
  • At 10 a.m. Eastern time, the Institute for Supply Management releases its manufacturing index for April, 10 a.m. and the Commerce Department releases construction spending for March.
Earnings Calendar
These selected companies are scheduled to release quarterly financial results:
  • Aon (AON)
  • Brink's Co. (BCO)
  • Calpine (CPN)
  • Charter Communications (CHTR)
  • Chevron (CVX)
  • Clorox Co. (CLX)
  • Cooper Tire & Rubber Co. (CTB)
  • CVS Health (CVS)
  • Duke Energy (DUK)
  • FirstEnergy (FE)
  • ITT (ITT)
  • Legg Mason (LM)
  • Moody's (MCO)
  • Newell Rubbermaid (NWL)
  • United States Cellular (USM)
  • V.F. Corp. (VFC)
  • Weyerhaeuser Co. (WY)

 

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10 Ways to Save When Your Teen Starts Driving

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Beginner's Guide to Buying Your First Car

By Maryalane LaPonsie

We hit a milestone in my house this year. My oldest child turned 16 and, in theory, can get behind the wheel of a car and start driving solo.

I'm not sure I'm ready for that and, fortunately, she's not either, so she still has her learner's permit. However, I've been searching high and low for ways to keep my auto insurance rates reasonable once she joins the ranks of independent drivers. Here are 10 tips I've picked up along the way:

1. Invest in a Good Driver's Training Program

According to the Insurance Institute for Highway Safety, teen drivers are risky drivers. It could be reckless behavior or it could be inexperience, but the fatal crash rate per mile for 16-19-year-olds is three times that of drivers age 20 and older. That means insurance companies are automatically going to see your teen as a claims risk and raise your rates. If your child starts racking up tickets or gets in a fender bender or two, watch your rates head to the stratosphere.

You may be able to keep your premiums lower by helping your teen avoid risky behavior behind the wheel, and that means getting them into the best driver's education program possible. I selected my daughter's school here in Michigan, in part, because it was able to demonstrate statistically that its graduates ended up in accidents at a rate far below the statewide average for all teen drivers.

2. Embrace Your State's Graduated driver Licensing Program

All 50 states have enacted graduated driver licensing programs that gradually ease teens into independent driving. Typically, the programs require 30-50 hours of supervised drive time before a restricted license is issued, until a teen's 18th birthday. The IIHS says graduated licensing programs are associated with fewer teen fatalities and fewer insurance claims. But the programs can work only if you enforce them at home. Don't fudge numbers on the drive-time log, and don't turn a blind eye when your teen blatantly violates the restrictions on their license.

Sure, it can be a pain to spend 50 white-knuckled hours in the car with your teen while they are learning, but hopefully your reward will be lower insurance premiums and a child who makes it to adulthood.

3. Avoid Letting Your Teen Have Their Car ...

It can be tempting to buy your teen a vehicle. Then they won't be constantly borrowing yours and potentially making a mess of it. I advise you resist the temptation for these reasons:
  • Having them drive your car would make them a secondary driver rather than a primary one, a designation that could keep your premiums lower.
  • Having them share the family vehicle may limit their drive time, which could be a good thing for young drivers who are prone to getting in accidents.
  • Buying another car means you'll be paying insurance on another car. Need I say more?
4. ... Or Make Sure Theirs Is Cheap(er) to Insure

But maybe you're in a situation in which you really need your teen to have a separate vehicle. I can imagine this would be especially true if your household only has one vehicle currently. In that case, be smart about the type of car you get your teen. Some vehicles are safer and, in turn, cheaper to insure. The IIHS has recommendations as to what it considers the best cars for teens.

5. Add Your Teen to Your Policy

Assuming you will be paying the premiums, it is almost always the better deal to add your teen to your policy rather than purchase a separate one. The insurance company takes into account the driving record of each person listed on a policy. Your good driving should partially offset your teen's potentially risky driving. Plus, your account may come with discounts not available on a teen's policy.

6. Look for Teen Driver Discounts

When you add your teen, ask the insurance company about discounts for new drivers. Students with good grades may be eligible for discounts; those who take an approved safety course may also be eligible. If your teen goes away for school and doesn't take the car, you may be able to get a discount for that, too.

7. Let the Insurance Company Spy on Your Teen

Usage-based insurance is one of the latest fads in the world of automobile insurance. Auto insurance companies send you a device that you plug into a port under your dashboard. It records how fast you drive, how fast you accelerate and how fast you brake, among other things. Then, if the auto insurance gods say you've been a good driver, you're rewarded with a discount on your premium.

These discounts are available to all drivers, but parents might find they are useful for monitoring their teens. Some companies issue reports grading driving skills, and some teens might be inclined to lay off their lead foot if they know someone, somewhere is watching. If you like the idea of monitoring your teen but aren't thrilled with the idea of letting an insurer inside your dashboard, you could also try spying yourself.

8. Consider a Higher Deductible or Lower Coverage

One surefire way to reduce your premiums is to raise your deductible. Just make sure you have enough in the bank to cover it if needed. Similarly, you could see how much it saves to drop collision or comprehensive coverage. However, do the math before making any rash decisions. Unless you can afford a new car, dropping comprehensive coverage could mean you'll be without a set of wheels if your vehicle gets totaled.

9. Shop Around for Better Rates

I was shocked to find out the insurance company, to which I had been so faithful for 17 years, was charging me double what other insurers were quoting. Perhaps it's different for other companies, but my experience was that loyalty doesn't necessarily pay off in terms of cheaper premiums.

Before you blindly add your teen to your existing policy, shop around for better rates. Underwriting policies vary by company, and some may have better pricing for young drivers. In addition, teen discount programs can differ between insurers.

10. Consolidate Your Coverage With One Insurer

Finally, when you find the right car insurance company, consider moving all your policies to that provider. Virtually all insurance companies offer multipolicy discounts, and the more you insure, the greater your discount may be.

Do you have a teen driver in the house? Tell us how you keep your insurance costs down by leaving a comment below or on our Facebook page. Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash.

 

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The Biggest Financial Hurdles for 20-Somethings

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Confused or doubtful young man shrugging with palms open, indoor shot in a house
Art-Of-Photo
By Geoff Williams

If you're graduating from college soon, you're probably in your early 20s, which means you're beginning an incredibly exciting and stressful decade. It'll be exciting because so many life milestones are in store for you. It'll be stressful because you may not be able to afford to go to the store.

Your 20s can include years of lean paychecks while trying to pay for really expensive things (renting an apartment or buying a car or perhaps starting a family), all while facing a lot of financial hurdles. So if you're just starting your adult life, expect to find some of the following obstacles on the road ahead.

You Don't Have a Career Yet

If you weren't one of those fortunate graduates who left with a degree and a job offer, you're probably searching for work. If so, think big, urges Dana Manciagli, a career coach in Bellevue, Washington.

"Yes, the startups are cool, and the ongoing dream of making big money when it goes IPO is appealing," she says. "But those companies will always be there, and you can start higher in the startups later once you have credibility. Once you work for GE, Nordstrom or any Fortune 500 corporation, at least for two years, nobody can take that away from you."

When you do land a job, don't coast, Manciagli cautions. "Too many 20-somethings just do the job they are asked to do, then jam out of there to enjoy their free time. You need to drive your career growth now and demonstrate you're a top performer -- not an average one." She suggests asking for more projects and working more hours and offering to help others around you.

You're Underpaid

Don't be surprised if you discover your first paycheck is nothing like what you dreamed it would be. Actually, it may be nothing if all you can find is an unpaid internship. Whatever you do this decade, don't settle for being cash-poor too long or stuck in a dead-end job. At least that seems like the logical conclusion, based on a Federal Reserve Bank of New York report that came out in February. It found that what you earn in your 20s will likely set the stage for what you'll earn the rest of your life. So if you're making a lot of money, you're more likely to keep up that trend. But if you're consistently earning paltry paychecks, odds are, you will be in another decade or three as well.

So what's a panicked 20-something to do? "If you have been in your current position for at least two years without a wage or salary increase, then your first step is to have a career discussion with your manager," she says. "Too many 20-somethings just quit without asking for a promotion or sharing their ambition." If your manager shoots you down, though, she says it's time to look a new job -- but don't quit until you've found new employment.

You Have No Credit History

You may have a long and varied credit history if you've been on your own for a while or cosigned a credit card a while back, but most college graduates presumably don't, thanks to the Credit Card Accountability, Responsibility and Disclosure Act of 2009. Ever since that became law, anyone 21 and under who wants a credit card has needed to have a parent or another adult as a co-signer.

"Many college students think only spending on a debit card is the best way to go, but then you've given up the opportunity to build credit," says Susan Bruno, co-founder of CollegeCFO.com, a resource for college students to get control of their financial life.

Of course, there are good reasons to keep college students away from credit cards. Before the act went into effect, college students frequently graduated without jobs and with thousands of dollars in credit card debt. But now the downside is that many students leave college with no credit history to accompany them into the real world.

Bruno, also a certified public accountant and financial planner in Stamford, Connecticut, suggests applying for a credit card as soon you are able, so that your credit history can positively affect your future. And if you're a recent graduate with student loans, you are at least building your credit by paying them off, so whatever you do, don't fall behind on those bills, Bruno says. "That will destroy your credit," she says, and you need good credit, or at least not terrible credit, "so you can sign an apartment lease, get a car loan or even get a cable connection."

A good credit score is generally considered to be 720 and above. If you're in the upper 600s, though, you have nothing to be ashamed about. If you're in the low 600s or in the 500s, you have a lot of credit-building work to do.

You Have a Lot of Student Loans

According to a 2014 report from the Institute for College Access & Success, the average graduate is saddled with $28,400 in student loan debt. If that's you, or you're in worse shape, then a lot of your paycheck is going toward paying off your past instead of helping you build your future.

So you'd do well to consider a few pieces of advice from Andrew Josuweit, founder of StudentLoanHero.com, a platform for managing student loans.

First, you could consider refinancing your loans. If you're struggling to pay your loans, Josuweit says there are 15 financial institutions offering student loan refinancing. You might also be eligible for an income-driven plan for your federal loans, like Pay as You Earn, a federal program. He also suggests signing up for automatic payments of your student loans. "You receive a 0.25 percent interest-rate reduction, and it also helps you avoid missing payments," he says, adding: "At all costs, try to avoid defaulting on your student loans."

You Don't Have Much Financial Experience Yet

There are a lot of financial decisions ahead of you. You might buy a car or two this decade. You'll need insurance for it. If you're still on your parents' health insurance, you'll have to get your own once you hit your 26th birthday. If you're doing this all for the first time, and without any help, you could make a lot of mistakes - the expensive kind that you never really laugh about later.

"Seek help and guidance," says Michael Conway, CEO of Conway Wealth Group at Summit Financial Resources in Parsippany, New Jersey. "Answers and advice are omnipresent and often free, through parents, relatives, neighbors, friends."

Most of them, Conway adds, probably have more experience in making financial decisions. But he points out that you may be more worried, not about your financial inexperience but about the banking system as a whole, since you and your family may have been shaken up by the Great Recession, of which some households are still feeling the hangover effects. With some millennials, Conway says, "it's difficult, in their minds, to invest or save within a system that has already made them a victim."

Ryan Wibberley, co-chairman and CEO of CIC Wealth, a financial planning firm in Gaithersburg, Maryland, sees this as well. "Twenty-somethings need to get over the hurdle of trust and confidence in the markets," he says. "I'm afraid that many are not investing as aggressively as they should, because they don't trust the financial markets, with good reason, and they will miss out on the long-term benefits that come with investing in equities."

If your parents have a financial adviser, seek some advice. "The parent's adviser is generally very interested in helping out the children of their clients, as a favor to the client," he says. Besides, older people tend to like helping out those just getting started in life. You might as well take advantage of that while you can. You aren't getting any younger.

 

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Will SodaStream Be the Star of Your Next Cocktail Party?

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Bartender is making cocktail at bar counter
ShutterstockCan a machine from SodaStream replace the mixologist?
SodaStream (SODA) has struggled to stand out as a soda-making platform, and its recent push into sparkling water has been falling flat. The Israeli company's next and possibly final shot at beverage success is apparently as a bartender.

SodaStream introduced Mix at April's Salone del Mobile expo in Milan, pinning its hopes for a return to growth on a stylish beverage maker that blends and carbonates cocktails. Mix is generating buzz in the design community, in large part because the legendary Yves Behar is responsible for the design of the portable appliance.

It's also going to turn heads for its tech-based features. It's the first cloud-tethered SodaStream machine, allowing folks to use a touchscreen interface not only to set carbonation levels but also to look up cocktail recipes. Mix will fizz up most beverages, and technology helps calibrate the maker so it adjusts the carbonation intensity based on the liquid, fruit juice or pulp.

SodaStream did not offer up a date for when Mix will hit the market. It also didn't name a price, and that will naturally go a long way to determining how well it sells and its target audience. If it's too high, it may limit itself to bars and other liquor-pouring establishments. The better play would be the mainstream market, where folks can tap into their inner mixologists at the next house party, and that could very well kick off a wave of adoption as more homes try to raise the bar at their next cocktail party.

Fizzing In Meets Fizzling Out

SodaStream can use the boost. The promise of carbonated martinis, cosmos, or even virgin fruit juices comes at a time when SodaStream's popularity is fading. Soda consumption has been declining for years, and the allure of making carbonated soft drinks at home has proven to be a fleeting novelty.

SodaStream announced late last year that it would be shifting its marketing strategy to reposition its line of beverage makers as makers of sparkling water, since trends show that consumers are buying more sparkling water at a time when carbonated beverage sales are going the other way. SodaStream is betting on the convenience, value, and freshness of fizzing up still water, but now it will also be trying to cater to anyone who's ever wanted to be the life of the party or even just serve up cocktails for two.

Shareholders have seen the stock shed nearly three-quarters of its value since it peaked two summers ago. If SodaStream can catch lightning in a carbonator bottle again -- and hopefully we'll be looking at an attractively priced Mix on the market in time for this year's holiday shopping season -- the market won't be the only one raising a glass to toast SodaStream's reinvention.

Motley Fool contributor Rick Munarriz owns shares of SodaStream. The Motley Fool recommends and owns shares of SodaStream. Try any of our Foolish newsletter services free for 30 days. Want a sweet deal? Check out our free report on one great stock to buy for 2015 and beyond.​

 

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Sitcom Is the New Drama at Netflix

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Cool Comedy Hot Cuisine Benefit
Chris Pizzello/Invision/AP"Full House" stars Candace Cameron Bure, left, and Jodie Sweetin are reuniting for "Fuller House."
Netflix (NFLX) isn't afraid of having a laugh at its own expense. The leading premium video service continues to shell out more money for original comedic content. Its latest sitcom deal is for "Fuller House," a spinoff of the iconic "Full House" series.

Candace Cameron-Bure, Jodie Sweetin, and Andrea Barber are set to reprise their roles as the two older Tanner sisters and D.J. Tanner's friend Kimmy. John Stamos will return, this time as the show's producer and occasionally going before the camera as Uncle Jesse.

Netflix has ordered a 13-episode season of the show that will hit the streaming platform exclusively come 2016. It's not the first time that Netflix has breathed new life into a proven franchise. "Arrested Development" fans clamoring for a return of the edgy show were rewarded two years ago when a fourth season was bankrolled by Netflix.

Bringing back old shows is just good business. They have established audiences that are familiar with the characters. Netflix is also in a unique position since it has more than a decade of rental and review histories. It knows the shows that folks watch through its DVD rental platform. It knows when folks who are actually still attached to the shows start letter-writing campaigns to revive canceled programs.

Laugh It Off

Diving into half-hour situation comedies is still a relatively new sport for Netflix. Its first foray into paying up for proprietary content was serialized drama "Lilyhammer" in 2012. It followed that up with "House of Cards" in early 2013.

The success of "House of Cards" and "Orange Is the New Black" has made Netflix the streaming service of choice, offering up award-winning content that viewers can't catch anywhere else. It's working: Netflix had 62.3 million streaming subscribers worldwide at the end of March, and it sees that number bumping up to 64.8 million by the end of June.

Netflix has also made "binge viewing" a popular pastime, and while it's been addictive as serialized dramas play out episode by episode, there's no reason it can't also work for sitcoms. Die-hard "Arrested Development" fans breezed through the fourth season's 15 episodes when it premiered on Netflix during the 2013 Memorial Day weekend.

Netflix has started to turn its attention to comedies since its success with the "Arrested Development" revival. This year alone we saw the Tina Fey-backed "Unbreakable Kimmy Schmidt" spring up on Netflix, and "Grace and Frankie," starring Lily Tomlin and Jane Fonda, starts today.

Another big bet on comedy will materialize next year when former E! night show star Chelsea Handler debuts her new talk show, pushing Netflix into the realm of live television given the timely nature of similar late-night shows.

Netflix isn't afraid to make big bets on loading up its digital catalog: It had a record $9.8 billion in streaming content obligations on its books at the end of this year's first quarter. It will continue to invest in serialized dramas, of course, but don't be surprised if Netflix continues to try to tickle your funny bone along the way.

Motley Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends and owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. Check out The Motley Fool's one great stock to buy for 2015 and beyond.​​​

 

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They Sold What!?! How Retailers Have Gone Too Far

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Victoria Secret Headdress
Evan Agostini/Invision/APVictoria Secret apologized for putting a replica of a Native American headdress on a model for its annual fashion show.
By Krystina Gustafson

Whether it was an honest mistake or a calculated attempt to build buzz about their brand, retailers over the years have certainly had their fair share of blunders. The latest occurred this week with a slogan on bottles saying Bud Light removes the word "no" from drinkers' vocabulary. Anheuser-Busch is apologizing.

Despite the multiple levels of approval required at some of these culprits -- many of which are large, publicly traded companies -- items that shoppers perceived as sexist, racist or otherwise distasteful still managed to find their way through the pipeline and onto shelves.

The mistakes are not easily forgotten. Thanks to the widespread adoption of social media, experts said missteps that used to put a temporary tarnish on a retailer's reputation can now have long-lasting effects that hurt its brand equity for years to come. "That expression that [there's] no bad publicity, it's not true," said Jennifer Vickery, president and CEO of National Strategies Public Relations. "It takes millions of dollars and a lot of time to fix those things."

This is particularly true among repeat offenders, many of whom intentionally put out distasteful items to define their brand as cheeky, suggestive or shocking, said Michael Fineman, president of Fineman PR. He said that controversial products put out by Abercrombie & Fitch over the years, which isolated particular groups of customers, are likely part of the reason it's struggling to rebuild its brand today. "What we understand is that those kinds of branding efforts can backfire in the long term if the brand violently alienates markets to which they may want to expand in later years," Fineman said.

For its part, the teen retailer has been working to improve its image by adding larger sizes to its assortments, and launching its second annual anti-bullying campaign in October. The company also parted ways with controversial CEO Mike Jeffries after steep sales declines. Let's look at some items in the hall of shame.

That Bud Light Bottle

The Bud Light bottle was pulled from the company's "Up for Whatever" campaign in April, after it prompted a Change.org petition with more than 14,000 signatures. Critics said the bottle, which reads, "The perfect beer for removing 'no' from your vocabulary for the night," promotes "rape culture" over "consent culture." "The Bud Light Up for Whatever campaign, now in its second year, has inspired millions of consumers to engage with our brand in a positive and light-hearted way," Alexander Lambrecht, vice president of Bud Light, said in a statement. "In this spirit, we created more than 140 different scroll messages intended to encourage brand engagement. It's clear that this particular message missed the mark, and we regret it. We would never condone disrespectful or irresponsible behavior."

Abercrombie & Fitch Clothing

The teen retailer got into hot water in 2002 when it sold a series of T-shirts that many shoppers said trivialized the Asian culture. Among them was a shirt depicting the Wong Brothers' laundry service, where "two Wongs can make it white," and "Get Your Buddha on the Floor." Also in 2002, A&F angered parents by selling children's thong underwear that included suggestive words such as "wink wink." The product was pulled from its stores. A few years later, A&F stirred up controversy again for a series of T-shirts, including one that read, "Do I Make You Look Fat?"

Play-Doh's Sweet Shoppe Cake Mountain Playset

Images of Play-Doh's Sweet Shoppe Cake Mountain Playset spread across social media in December, after children unwrapped the gift over the holidays. The issue? The kit's frosting "extruder," which is used to squeeze icing onto the play cakes, resembles a certain part of the male body. "We have heard some consumer feedback about the extruder tool in the Play-Doh Cake Mountain playset and are in the process of updating all future Play-Doh products with a different tool," Julie Duffy, vice president of global communications at Play-Doh's parent company Hasbro said via email. The company offered replacement pieces for customers who contact its customer service department.

Urban Outfitters Shirts

Known for its controversial merchandise, Urban Outfitters had to change its "Everyone Loves a Jewish Girl" shirt, which hit shelves about 10 years ago, because the text was surrounded by "stereotypical symbols such as dollar signs," Fineman said. In response to the controversy, the company redesigned the shirt to exclude the dollar signs. It made headlines in 2010 when it sold a gray T-shirt that read, "Eat Less." The retailer pulled the item. And in September it stirred outrage when it sold a red sweatshirt bearing the Kent State name and what appeared to be a blood splatter. The retailer responded on Twitter, saying: "It was never our intention to allude to the tragic events that took place at Kent State in 1970 and we are extremely saddened that this item was perceived as such."

Swastikas

Retailers that sell to a wide array of customers are often more vulnerable to hurting their brand equity when they carry controversial items, Fineman said. It's also more difficult for their teams to monitor the millions of items that they're selling. "There's going to be a few of these things that fall through the cracks," he said. Both Amazon and Sears stopped selling a swastika ring on their websites. Sears issued an apology in October, saying, "[We] want you to know that the ring was not posted by Sears, but by independent third-party vendors."

Sometimes it isn't the product that's the issue; it's what it's wrapped in. In December, questions were raised about blue-and-silver wrapping paper sold by Hallmark that one customer said included a swastika embedded in its design. The company pulled the gift wrap from its stores, saying it never intended to offend anyone.

Victoria's Secret Items

In 2012, the lingerie brand drew criticism for its "Sexy Little Geisha" outfit, which featured model Candice Swanepoel in a mostly see-through bodysuit with "Eastern-inspired" florals. Victoria's Secret removed the link from its website amid the controversy. That same year, Victoria's Secret received complaints after model Karlie Kloss wore a headdress during its annual fashion show. "We are sorry that the American Indian headdress replica used in our recent fashion show has upset individuals," it responded. "We sincerely apologize as we absolutely had no intention to offend anyone."

Zara Clothing

Last year, Zara came under fire for its T-shirt that read "White Is the New Black." Although the shirt is no longer available on the company's website, Zara kept selling a shirt that said: "Leopard Is the New Black," with the word "leopard" written in leopard print. A few weeks later, it released a striped blue-and-white children's pajama top with a yellow star over the left chest. Consumers took to social media, criticizing the retailer for the item's resemblance to uniforms worn by prisoners at concentration camps during the Holocaust. Zara issued an apology over social media, saying, "We honestly apologize. It was inspired by the sheriff's stars from the classic Western films and is no longer in our stores."

Sexy Halloween Costumes

Ronald McDonald? Check. Oscar the Grouch? Check. Olaf the Snowman? The list goes on. Sexy costume maker Yandy made headlines last year when its racy take on the "Frozen" character sold out.
Costume makers have come under increased scrutiny over the years for turning nearly every object and character imaginable into an opportunity for women to dress suggestively at Halloween. Yandy previously declined to comment on its Olaf costume. A wide swath of retailers -- including Party City and Kmartv- drew fire for a racy cop costume shown here last year, designed for toddlers or children.

Three More Shirts Considered Offensive
  • After the bombings at the Boston Marathon in 2013, Nike pulled its "Boston Massacre" T-shirt. The shirts made no reference to the bombings -- in fact, they were created before the attack -- and were designed as a nod to when the Yankees swept the Red Sox in a four-game series in 1978.
  • Parents were outraged with J.C. Penney in 2011, when the department store started selling a sweatshirt that read, "I'm too pretty to do homework, so my brother has to do it for me." The retailer pulled the sweatshirt and apologized, saying, "We agree that the 'too pretty' T-shirt does not deliver an appropriate message."
  • In 2013, The Children's Place stopped selling a girls' T-shirt that listed the wearer's "best subjects" as shopping, music and dancing. The only box that didn't have a check? Math. The retailer issued an apology on social media, saying, "We take feedback from our customers seriously. We pulled the T-shirt from our stores and express apologies to anyone we may have offended."

 

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Tesla CEO Plugs Into New Market With Home Battery System

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Tesla-Battery Power For Homes
Ringo H.W. Chiu/APElon Musk, CEO of Tesla Motors, unveils the company's newest product in Hawthorne, Calif.
By MICHAEL LIEDTKE and JONATHAN FAHEY

FOSTER CITY, Calif. -- Never lacking daring ideas, billionaire entrepreneur Elon Musk is determined to jolt the electricity market.

The CEO of electric car maker Tesla Motors (TSLA) hopes to park hundreds of millions of large, solar panel-connected batteries in homes and businesses so the world can disconnect from power plants -- and he can profit. On Thursday night, before an adoring crowd and a party-like atmosphere, Musk unveiled how he intends to do it.

Musk took the stage at Tesla's design studio near Los Angeles International Airport, an audience of drink-toting enthusiasts cheering him on, in a scene fitting for an audacious dreamer renowned for pursuing far-out projects. Colonizing Mars is one of Musk's goals at Space X, a rocket maker that he also runs.

Our goal here is to fundamentally change the way the world uses energy.

Now, he is setting out on another ambitious mission. "Our goal here is to fundamentally change the way the world uses energy," Musk told reporters gathered in Hawthorne, California.

Although Tesla will make the battery called "Powerwall," it will be sold by a variety of other companies. The list of partners includes SolarCity, a solar installer founded by Musk's cousins, Lyndon and Peter Rive. Musk is SolarCity's chairman and largest shareholder.

As with Tesla's electric cars, which start around $70,000, the battery might be too expensive for most consumers. The system will carry a suggested price of $3,000 to $3,500, depending on the desired capacity. Installation will be extra. That could discourage widespread adoption, especially for a product that may only have limited use.

"I don't believe this product in its first incarnation will be interesting to the average person," conceded Peter Rive, SolarCity's chief technology officer. Rive, though, still expects there to be enough demand to substantially increase the number of batteries in homes.

'Super Crazy' Goal

Musk is so encouraged by the initial demand that he believes Tesla and other future entrants in the market will be able to sell 2 billion battery packs around the world -- roughly the same number of vehicles already on roads. Although that may sound like a "super crazy" goal, Musk insisted it "is within the power of humanity to do."

It will take a long time to get there. Tesla hopes to begin shipping a limited number of Powerwall batteries this summer in the U.S. before expanding internationally next year.

The long-term goal is to reduce the world's reliance on energy generated from fossil fuels while creating regional networks of home batteries that could be controlled as if they were a power plant. That would give utilities another way to ensure that they can provide power at times of peak demand.

For now, the battery primarily serves as an expensive backup system during blackouts for customers like David Cunningham, an aerospace engineer from Foster City, California. He installed a Tesla battery late last year to pair with his solar panels as part of a pilot program run by the California Public Utilities Commission to test home battery performance.

Although Cunningham's home hasn't endured a blackout in the six months that he has had the battery, it's capable of running critical home appliances like lights and refrigeration and can be recharged by solar panels during the day.

'Natural Fit'

"As long as a person has solar panels, it's just a natural fit for the two to go together," Cunningham, 77, said. "I consider it to be a whole power system right here in my home."

Cunningham took advantage of state incentives that sharply reduced the battery's $18,300 sticker price under the pilot program. He still paid $7,500.

"The value proposition now is around reliability and backup power more than it is around savings, but over time that may change," said Shayle Kahn, an analyst at GTM Research.

The batteries are likely to become more useful if, as expected, more utilities and regulators allow power prices to change throughout the day based on market conditions. That way, the software that controls the solar and battery system will allow customers to use their home-generated power -- and not expensive grid power -- when grid prices spike.

Many commercial customers already buy power this way, and Tesla also announced battery systems designed for them, along with bigger battery packs that utilities can use to manage their grids. Analysts say these utility and commercial markets will probably be more promising for Tesla during the next few years than residential customers.

Commercial Applications

Several businesses, including Amazon.com (AMZN) and Target (TGT), plan to use Tesla's battery storage system on a limited basis. Southern California Edison is already using Tesla batteries to store energy.

Tesla is building a giant factory in Nevada that will begin churning out batteries in 2017, so Musk needs to begin drumming up customers now. The spotlight may help Musk push policy makers and utilities to consider reshaping regulations so solar and battery storage could be more easily incorporated into the larger electric system, Kahn said.

Tesla's ambitions already have intrigued homeowners like Mike Thielen, who installed one of the prototype batteries with SolarCity panels on his Redondo Beach, California, home last year. Although he hasn't needed the backup power yet, he has embraced the concept.

"I think it's brilliant," he said. "I would consider upgrading to a more powerful home battery if they could figure out a way to get me totally off the grid."

-Fahey reported from New York and Houston. AP Writer Justin Pritchard contributed to this story from Hawthorne, California.

 

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5 Questions for Buffett at Berkshire's Shareholder Meeting

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Mary Altaffer/APWhat will Warren Buffett be talking about this weekend?
By Sarah Morgan

For investors, the place to be this weekend isn't Wall Street, Davos, or even the Hamptons. It's Omaha, Nebraska, where Berkshire Hathaway (BRK-A)(BRK-B) will hold its annual shareholders' meeting, and where CEO Warren Buffett will answer questions from shareholders.

Buffett has led Berkshire Hathaway for 50 years. In that time, the value of the company's shares has grown an astonishing 1,826,163 percent, an average gain of about 20 percent a year. No wonder investors around the world look to Buffett as a role model and investing guru.

If you had the chance to ask this investing rock star a question, what would it be? Would you want to know his top stock picks? Would you ask about the prospects for future growth in Berkshire Hathaway's stock? Or would you want to talk politics with the man who inspired the "Buffett rule"? We talked to investment professionals to find out what they'd ask if they were in Omaha:

1. What Keeps You Up at Night?

"It's hard to think that Warren Buffett is nervous," says Ethan Anderson, a senior portfolio manager at Rehmann Financial, but even the oracle of Omaha must worry about a few things. For his part, Anderson says that in the short term, the European debt crisis worries him. "Exactly when it's going to come to a head I don't know, but when it does it's not going to be much fun," Anderson says. A new round of ugly headlines on this topic would likely cause volatility in the market, he says. In the longer term, the aging population in the U.S. and Europe is a worry as well, Anderson says. "If you have a shrinking population, it's pretty hard to grow an economy."

Why to ask this: It's hard to predict how and when long-term trends like this will play out, and almost impossible to predict how they'll impact the markets. This is where diversification helps soften any potential blow to an investor's portfolio.

​2. What's Today's Role of Income and Dividend-Paying Securities?

Interest rates have remained so low for such a long time that many investors have gravitated toward utilities and other dividend-paying stocks, says Tom Samuels, a managing partner at Palantir Capital. "I would be curious as to [Buffett's] take on the role of income in a portfolio, because he has tools available to him that most investors don't have," Samuels says. Berkshire Hathaway owns multiple insurance businesses, which generate steady income through their customers' premium payments. Samuels says he'd also ask whether, given that Berkshire's own growth is likely to slow in the future, it might be in investors' interest to announce a dividend. "Has the opportunity set shrunk enough that the best thing for shareholders would be to get some income?" Samuels asks.

Why to ask this: Generating income from a portfolio is a priority for most investors as they age. If Berkshire Hathaway has begun transitioning from a growth stock to a more mature, slower-growing dividend-payer, that should change the way investors see it fitting into their portfolios.

3. Are You Committed to Longstanding Investments Like Coca-Cola?

Berkshire Hathaway has held shares of Coca-Cola (KO) for years. Buffett calls it one of his "Big Four," one of his top, high-conviction investments. But growth in the consumer goods sector has slowed recently, says Samuels, adding that he'd ask Buffett if he still anticipates healthy growth in this sector. Buffett "hasn't been as keen on the more cutting-edge technology or health-care plays," where more rapid growth might be found, Samuels says.

Why to ask this: Tech company IPOs have been hot recently, and investors often seek growth companies, but the most famous investor in the world tends to stick with more established businesses: insurance, railroads, Coke, IBM (IBM).

4. Are You Concerned About Climate Change?

"There is a strong indication that we can't burn all the fossil fuels that we already know that we have," says Roger Streit, a certified financial planner with Key Financial Solutions. "At this point, it's really hard to ignore the science." The more difficult question is what, if anything, investors should do about it. Streit says he doesn't want to sacrifice diversification, but he has been looking into socially responsible investing vehicles that would limit investors' exposure to fossil fuels. Berkshire Hathaway did sell its Exxon Mobil (XOM) shares last year, but it still owns shares in other energy sector companies.

Why to ask this: If and when the world takes significant action to address climate change, energy sector stocks will likely be the first to feel the effects.

5. Why Has Berkshire Hathaway Underperformed Lately?

Yes, over the last 50 years, Berkshire's performance has been outstanding. But in four out of the last five years, it has underperformed the S&P 500 (^GSPC) by what has traditionally been Buffett's preferred measure, book value per share growth. In his 2014 annual letter to shareholders, Buffett reported not only book value but also per-share market value change, a measure by which Berkshire has only underperformed in one of the last five years. Aaron Gubin, director of research at SigFig, says he would ask Buffett about the timing of this change; why begin reporting per-share market value today, when Berkshire has operated under fundamentally the same organizational structure for decades.

Why to ask this: In this year's letter, Buffett noted that investors should not expect the next 50 years to repeat the last 50; a company as large as Berkshire Hathaway cannot grow at an average of 20 percent a year indefinitely. However, investors have a right to ask whether the company is likely to outperform the market, and by what measures.

Sarah Morgan is a contributing writer at SigFig. Nearly a million people use SigFig to track, improve and manage over $300 billion in investments.

 

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Small, Midsize SUVs Drive Auto Sales Gains in April

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A General Motors Co. Dealership Ahead Of Motor Vehicle Sales Figures
Daniel Acker/Bloomberg via Getty ImagesChevrolet cars for sale at Phillips Chevrolet in Frankfort, Ill. All automakers are due to report U.S. sales during April on Friday.
By TOM KRISHER

DETROIT -- Hot sales of small and midsize SUVs drove auto sales higher last month as General Motors, Ford, Toyota, Fiat Chrysler and Nissan all reported U.S. sales gains.

Several of the companies reported their best April totals in years. Overall, sales were mostly in line with analysts' predictions of a 6 percent increase compared with a year ago. All automakers were scheduled to report sales on Friday.

Buyers, buoyed by lower gasoline prices, flocked to crossover SUVS that handle like cars and sit up higher. The gains came at the expense of many small and midsize cars.

The demand for crossover SUVs is off the charts.

"The demand for crossover SUVs is off the charts," said Bill Fay, a Toyota group vice president.

Erich Merkle, Ford's top sales analyst, said small SUVs accounted for almost 19 percent of industry sales last month, two percentage points higher than a year ago.

General Motors (GM), the top-selling automaker in the U.S., posted a 5.9 percent increase and sold 269,000 vehicles. Sales of the Chevrolet Equinox midsize SUV rose 42 percent to nearly 29,000, while sales of the Buick Encore small SUV gained 29 percent to nearly 5,600. But the Chevrolet Malibu midsize car fell nearly 13 percent, while sales of the Chevy Cruze compact dropped nearly 4 percent.

Ford Motor Co. (F) posted a 5 percent gain for its best April in nine years. The Dearborn, Michigan, automaker sold more than 222,000 cars and trucks last month, led by record SUV sales.

The revamped Ford Edge midsize SUV posted its best April sales ever at just over 13,000, up 78 percent from a year ago. Ford sold 26,000 Escape small SUVs, up nearly 5 percent. But sales of the Fusion midsize car and Focus compact car both fell.

Sales of the F-Series pickup, Ford's top-selling vehicle, fell 1 percent to 63,000. The company continues to ramp up production of a new model with an aluminum body. Selling prices for the F-Series averaged a record $42,600, with lower monthly payments due to longer loans driving purchases of loaded-out trucks.

GM sold 46,000 Chevrolet Silverado pickups, its best-seller, for a gain of nearly an 8 percent. Sales of the Ram pickup, Fiat Chrysler's top-selling vehicle, rose 3 percent to just under 38,000.

Fiat Chrysler's (FCAU) Jeep brand benefited from the SUV craze as well. Jeep posted its best-ever monthly sales at nearly 72,000, up 20 percent from a year ago. Overall, Fiat Chrysler's U.S. sales rose about 6 percent.

Toyota Motor (TM) reported a 1.8 percent sales increase to just over 203,000 with record April sales of the RAV4 small SUV and Highlander midsize SUV.

At Nissan, sales were up 5.7 percent to nearly 110,000. The company said its small and midsize SUVs set an April record, led by the Nissan Rogue with an increase of 45 percent.

Hyundai Motor also reported its best April ever with sales up 2.9 percent to slightly above 68,000.

The Volkswagen brand, which lacks strong SUVs, saw sales fall about 3 percent to just over 30,000.

 

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Ford Expands Door Latch Recall to Cover Nearly 546,000 Cars

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Keith Srakocic/APA row of 2013 Ford Fusions at a dealership in Zelienople Pa.
DETROIT (AP) - Under pressure from U.S. safety regulators, Ford is expanding a recall of small and midsize cars to fix door latches that may not stay closed.

The recall now covers almost 546,000 Ford Fusions and Lincoln MKZs from the 2013 and 2014 model years, and Ford Fiestas from 2011 to 2014.

Ford Motor Co. (F) added about 156,000 Fiestas to a recall announced a week ago. It also determined that some of the Fusions and MKZs under recall were made at a factory near Detroit. Previously the company thought all the cars were made in Mexico.

Ford says a broken spring part can stop the doors from latching properly. The doors also can open while the cars are in motion, increasing the risk of injury.

Earlier this week, the U.S. National Highway Traffic Safety Administration warned owners of the cars to get them repaired as soon as they get a notice from Ford. The company said notices should start arriving the week of May 18. Dealers will replace all four door latches for free.

Ford reported two minor injuries from unlatched doors bouncing into people when they tried to close them. There also was one crash when a door opened and hit another vehicle in a parking lot.

NHTSA said that if owners find it difficult to close doors, their cars should not be driven, even if it appears as if the doors have latched. Instead, the cars should be towed to a dealership, the agency said. Also, NHTSA warned that if a door pops open while the car is in motion, drivers should pull over and have it towed to the nearest dealer.

 

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10 Weird Facts About Berkshire Hathaway's Annual Meeting

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Berkshire Hathaway Shareholders
Nati Harnik/APThere's a brisk business at the meeting in items made by Berkshire Hathaway companies.

By Emily Stewart

The Berkshire Hathaway (BRK-A) (BRK-B) annual meeting, Saturday in Omaha, Nebraska, is one of the most anticipated -- and quirkiest -- events in investing. This year marks the completion of Warren Buffett's fifth decade at the helm of Berkshire Hathaway, and more than 40,000 people expected to descend on the CenturyLink Center Omaha. Here are 10 strange facts you may not have known about Berkshire's annual meeting, this year themed "50 Years of a Profitable Partnership."

1. The Meeting Hasn't Always Been Such a Big Deal

For years, it was basically a non-event, just 12 people attended in 1981. Buffett first put in a plug for the gathering in his 1984 letter to shareholders. He acknowledged that "many annual meetings are a waste of time" but noted that his operation is distinct.

"Berkshire's meetings are a different story," he wrote. "The number of shareholders attending grows a bit each year and we have yet to experience a silly question or an ego-inspired commentary. Instead, we get a wide variety of thoughtful questions about the business. Because the annual meeting is the time and place for these, Charlie and I are happy to answer them all, no matter how long it takes." Buffett's mention of the meeting spurred 250 of its 3,000 registered shareholders to attend the following year.

2. Candy Is Sold by the Pound

At the annual gathering, attendees are encouraged to do their fair share of shopping at stands set up by Berkshire subsidiaries in an adjoining meeting hall. They can pick up products from a number of portfolio companies, including Fruit of the Loom, Kirby Company and The Pampered Chef -- all at steep discounts. Special products, made specifically for the event, are also on sale.

At the 1994 meeting, Berkshire sold nearly 800 pounds of candy. A decade later, it sold nearly 17 times that amount, 13,440 pounds. Sweets -- specifically, See's Candy -- will be on sale at this year's event as well. But they aren't the only things being hustled. During a nine-hour period at last year's meeting, 1,385 pairs of Justin boots were sold (one pair every 23 seconds), as were 7,276 pairs of Wells Lamont gloves and 10,000 bottles of Heinz ketchup.

3. Buffett Keeps Tabs on Who's Attending

One state had no attendees at Berkshire Hathaway's 1995 meeting, and Buffett was well aware. "Shareholders from 49 states attended our 1995 meeting -- where were you, Vermont?" he wrote in his annual letter to investors. By 1997, Vermont had gotten its act together, and Buffett celebrated in his annual letter that the event had grown to 7,500 attendees from all 50 states -- as well as 16 countries.

4. Cherry Coke Is the Official Drink

It's no secret Buffett is a big fan of Coca-Cola (KO). He owns 400 million of the company's shares and drinks at least five 12-ounce servings of the beverage every day. Yet it's Cherry Coke that is the official drink of the Berkshire Hathaway annual shareholders meeting.

In his 1985 letter to shareholders, the oracle of Omaha wrote that there would be "only one change" at the 1986 gathering. "After 48 years of allegiance to another soft drink, your Chairman, in an unprecedented display of behavior flexibility, has converted to the new Cherry Coke," he wrote. "Henceforth, it will be the Official Drink of the Berkshire Hathaway Annual Meeting."

5. Buffett Has Moved the Event for Mothers

Berkshire's annual meeting is usually held on the first Saturday in May, but in 2005, the firm scheduled its gathering for the last Saturday in April to accommodate mothers. "This year Mother's Day falls on May 8, and it would be unfair to ask the employees of Borsheim's and Gorat's to take care of us at that special time -- so we've moved everything up a week," Buffett wrote in a letter to investors.

6. There's a Newspaper Tossing Contest

At 7:30 a.m. on Saturday, Berkshire Hathaway will host its fourth International Newspaper Tossing Challenge. The target: a Clayton Home porch, located about 35 feet from the throwing line. Shareholders will be able to challenge Warren Buffett to see who gets closest to the doorstep, and anyone who beats him will win a Dilly Bar, one of Dairy Queen's most iconic products. The ice-cream chain has been a Berkshire company since 1997.

Buffett -- who now owns several papers -- tossed about a half a million papers as a newspaper delivery boy growing up, so he is stiff competition. Just ask fellow billionaire Bill Gates, who took part in the contest in 2013. At the time, Gates tweeted that he was "getting better" at the competition.

7. One Question Is Off Limits

Each year, Buffett and Charlie Munger field queries from journalists and analysts in a question-and-answer session that lasts for several hours. Fortune's Carol Loomis, CNBC's Becky Quick and The New York Times' Andrew Ross Sorkin will make several inquiries this year, as will analysts from Dowling & Partners, Ruane, Cunniff & Goldfarb and Morningstar. Buffett and Munger will also respond to a handful of lucky shareholders who have won a chance to ask questions themselves, via a raffle.

Essentially any subject is fair game in the Q&A session except one: what Berkshire Hathaway is buying or selling -- and why. Even if the information is public, neither Munger nor Buffett discuss how they arrive at their decisions.

8. Attendees Advised to Mind Their Manners

The shareholders invited to ask a question during the Q&A period are provided a set of "microphone manners" to follow. They are asked to speak loudly and clearly and to state their names and hometowns. They are requested to avoid asking more than one question or bundling several questions together.

Meeting attendees are also warned about saving seats, and a section of the 2015 Berkshire Hathaway Visitor's Guide is dedicated to the topic: "We have received complains from some shareholders about excessive seat saving in the Arena the morning of the meeting. Reserving a few seats for your group is certainly acceptable, but blocking off entire rows is unfair to the other shareholders. Security will assist in enforcing this policy."

9. Buffett, Munger Will Take It Easy at This Meeting

The Omaha World-Herald reported on Monday that Buffett will be less visible at the 2015 Berkshire meeting. His longtime partner, Charlie Munger, has been scaling back his presence for a few years. This year, Buffett won't be selling jewelry at Borsheim's as he has in the past, nor will he be attending Sunday morning's five-kilometer downtown run. One Berkshire officer assured the Omaha World-Herald that Buffett is "booked solid from Thursday to Sunday afternoon" with both public and private events. The only opportunity the public will have to see Munger will be on stage at the shareholders meeting on Saturday.

10. Buffett Really Wants Everyone to Go to Dairy Queen

Berkshire Hathaway acquired Dairy Queen for $585 million in 1997. The following year, it sold 4,000 of DQ's ice cream bars at the annual meeting. Shareholders will surely be able to pick up a Dilly Bar at this Saturday's meeting -- or win one in the newspaper competition against Buffett. But wait, there's more: The 2015 Visitors Guide lists 10 local Dairy Queen locations for attendees to stop by while in Omaha.

 

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Week's Winners and Losers: GoPro Aims, Twitter Misses

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Twitter website bird logo with magnifying glass.
Eric Carr/Alamy
There were plenty of winners and losers this week, with the leader in wearable cameras coming through with a blowout report and the top social broadcasting platform making news for all the wrong reasons.

Hulu -- Winner

Fans of "Seinfeld" won't have to shuffle through DVDs or channel-surf for reruns anymore. Hulu locked up exclusive streaming rights to all 180 episodes of the classic sitcom. It didn't come cheap. Sources tell Variety that Hulu had to pay nearly $1 million for each episode.

However, it does help provide a boost to the fast-growing platform that has seen its subscriber base grow by 50 percent to 9 million since the beginning of last year. Streaming television is a reality, and Hulu is making waves to make sure that it's in consideration for the millennials who are opting for online platforms instead of paying up for costly satellite or cable television plans.

Twitter (TWTR) -- Loser

Some earnings reports are battered and deep fried in a vat of bubbling irony. Twitter was supposed to report quarterly results after Tuesday's market close, but the earnings leaked with nearly an hour to go in the trading day. The report went viral on -- you guessed it -- Twitter, itself.

It was a bad report. User growth is decelerating, revenue growth wasn't impressive, and Twitter's guidance wasn't exciting. The stock took a hit on the news, and at least five Wall Street analysts downgraded the stock following the report.

GoPro (GPRO) -- Winner

The maker of wearable cameras is on a roll. GoPro posted blowout quarterly results, boosting its outlook on strong demand for its Hero4 wearable cameras.

GoPro has been a wild stock for investors. It went public just 11 months ago at $24, more than quadrupling to nearly hit triple digits by October. The market has cooled on the stock given its lofty valuation and improving smartphone cameras, but GoPro is showing that it can still thrive in this environment.

Lumber Liquidators (LL) -- Loser

The world's largest specialty retailer of hardwood flooring took its second big hit of the year after posting unimpressive quarterly results. It posted a surprising loss for the period.

The first shoe to fall at Lumber Liquidators came in March when a scathing "60 Minutes" report challenged the safety and product quality of the chain's China-sourced laminates. It left a mark. Comparable-store sales at Lumber Liquidators declined 1.8 percent since the prior year, but the decline was a brutal 17.8 percent for the month of March.

JetBlue (JBLU) -- Winner

The skies are getting more blue at JetBlue. Analysts at Credit Suisse moved to upgrade shares of the discount carrier, boosting its price target from $21 to $27.

Credit Suisse's rosier outlook emerged after JetBlue posted better than expected quarterly results. Revenue and earnings clocked in ahead of Wall Street expectations. Airlines in general have been holding up well as low jet fuel prices and firm fares combine for strong margins. The industry is ascending, that's for sure.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends GoPro, Lumber Liquidators and Twitter. The Motley Fool owns shares of Lumber Liquidators and Twitter. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

 

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Anemic Factory Data Point to Moderate Growth Bounce

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Factory Orders
Keith Srakocic/AP
By Lucia Mutikani

WASHINGTON -- U.S. factory activity failed to gain steam in April after slowing for five straight months, but stronger-than-expected vehicle sales suggested the economy was finding some momentum after almost stalling in the first quarter.

Still, the sluggishness in the manufacturing sector and other data Friday showing construction spending hit a six-month low in March indicated that the anticipated acceleration in growth in the second quarter could disappoint.

That could see the Federal Reserve delaying raising interest rates until later this year.

The reacceleration in growth will not come fast enough for many, especially those looking for a liftoff by the Fed to happen sooner.

The economy expanded at a 0.2 percent annual pace in the first three months of the year, slammed by bad weather, a strong dollar and a now-resolved labor dispute at the West Coast ports, as well as lower oil prices, which have undercut domestic energy production.

"The reacceleration in growth will not come fast enough for many, especially those looking for a liftoff by the Fed to happen sooner," said Diane Swonk, chief economist at Mesirow Financial in New York.

The Institute for Supply Management said its index of national factory activity was at 51.5 in April, matching the March reading, which had been the lowest since May 2013.

The index had declined since November and economists had expected it to rise to 52 in April. A reading above 50 indicates expansion in the manufacturing sector.

While new orders rose last month, a gauge of factory employment contracted for the first time since May 2013 and recorded its lowest reading since September 2009.

Manufacturing has been hit by the dollar's 12 percent appreciation against the currencies of the United States' main trading partners since June.

The buoyant currency has hurt export growth and profits of multinational corporations, including Procter & Gamble (PG), the world's largest household products maker, and prompted Colgate-Palmolive (CL) and healthcare conglomerate Johnson & Johnson (JNJ) to cut their profit forecasts for the full year.

Whirlpool (WHR), the world's largest maker of home appliances, lowered its profit forecast and sales outlook for 2015.

Manufacturing, which accounts for about 12 percent of the U.S. economy, is also being pressured by the lower oil prices, which have caused oil-field companies to slash spending on exploration and well drilling.

Caterpillar (CAT) has warned the dollar and weak oil prices will hurt profits this year.

U.S. stocks were trading higher. The dollar rose against a basket of currencies, while U.S. Treasury debt prices fell.

Regaining Footing

Despite the economy's struggles, there is no doubt it is starting to regain its footing. General Motors (GM) and Ford Motor (F) reported stronger-than-expected auto sales in April on robust demand for trucks and crossover and sports utility vehicles.

Demand for autos is likely to remain solid in the months ahead. In a separate report, the University of Michigan said its overall index on consumer sentiment rose to 95.9 this month, the second highest level since 2007, from 93 in March.

Consumers were upbeat about both current conditions and expectations for the future. More consumers said it was a good time to buy a major household item and a vehicle. There was also an increase in consumers saying it was a good time to buy and sell a house, which should support home sales.

"This suggests that there may be some upside risk for durable goods spending in the second quarter ... and that perhaps housing market activity will pick up in the months ahead," said Mark Vitner, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

Separately, the Commerce Department said construction spending slipped 0.6 percent to an annual rate of $966.6 billion in March, the lowest level since September.

Construction spending was weighed down by a 1.6 percent decline in private residential construction spending, the biggest such decline since June. Public construction outlays were also weak.

"We think the outlook for residential construction is positive in 2015 as household formation appears to have picked up and as house price gains have remained firm," said John Ryding, chief economist at RDQ Economics in New York.

 

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Telecom Groups, AT&T Seek to Block New Internet Rules

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Online headline FCC Votes to Regulate the Net
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By Alina Selyukh

WASHINGTON -- U.S. telecom industry groups, alongside AT&T (T) and CenturyLink (CTL), called for regulators to block parts of new rules for Internet service providers Friday, citing "crushing" compliance costs and threats to investment.

In a filing with the Federal Communications Commission, the industry didn't ask for a suspension of the principal "net neutrality" rules that ban Internet providers from blocking and slowing down Web traffic or from striking deals with content companies for smoother downloads.

Instead, the groups and companies sought to block the agency's move to reclassify broadband Internet as a more heavily regulated telecommunications service and a new broad general conduct standard that prohibits Internet providers from "unreasonably interfering" with consumers' access to the Web. The request, expected to be rejected by the FCC, is a prelude to a building court battle over the rules, which put the agency under public scrutiny last year as it weighed, once again, how best to regulate Internet service providers.

Cable and wireless companies earlier said they didn't oppose the principles of net neutrality, such as no blocking of any traffic, but rejected the tighter regulatory regime. Friday's filings offer the most specific details yet of the arguments they are now expected to make in court.

A filing at the FCC is a prerequisite to ask courts to block implementation of the rules, which take effect in June, while they are being litigated. The filing came from the U.S. Telecom Association, CTIA-The Wireless Association, AT&T, CenturyLink and trade representing smaller providers.

The document cited several testimonials of executives at regional and local Internet providers that the rules will create costly compliance burdens and limit resources for improvements to broadband networks or new products.

The filing said that the "the sheer burden and complexity of [the] arcane provisions will be crushing," particularly for small broadband providers with limited human and financial resources.

The FCC asked Thursday to transfer the pending cases against its rules to the U.S. Court of Appeals for the District of Columbia Circuit, which has twice rejected its previous versions of net neutrality rules but last year confirmed its authority to set Internet regulations.

 

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Market Wrap: Stocks Jump as Investors Buy Beaten-Down Shares

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FILE - In this Monday, Aug. 8, 2011, file photo, a pedestrian walks past the New York Stock Exchange in New York. U.S. stocks headed higher in early trading, Friday, May 1, 2015, as the market bounces back from a steep decline the day before. Most Asian and European markets are closed for May 1, known as Labour Day in most of the world. (AP Photo/Jin Lee, File)
Jin Lee/AP
By Caroline Valetkevitch

NEW YORK -- U.S. stocks rebounded sharply Friday as investors snapped up beaten-down shares in the health care and technology sectors, and as data gave further signs of a pickup in the economy.

Apple (AAPL) provided the biggest boost to the major indexes, jumping 3 percent to $128.95 in its biggest daily percentage gain since January. The stock lost 2.7 percent Thursday.

The Nasdaq snapped a four-day losing streak while the S&P tech sector gained 1.5 percent, among the day's best-performing sectors.

Yesterday people were thinking the market was going to fall off of a cliff, and today we're seeing a lot of institutional buying coming in.

Biotech shares also rebounded, ending a five-day losing streak. The Nasdaq Biotech Index was up 2.9 percent for the day, but lost 5.5 percent for the week, its worst such decline since March 2014.

Shares of Gilead (GILD) rose 4.5 percent to $105.01, helping to lift both the Nasdaq and S&P 500, after its quarterly profit nearly doubled. The S&P healthcare index was up 1.3 percent.

Investors were also buoyed by an encouraging batch of data for April that suggested the U.S. economy was pulling out of a first-quarter soft patch.

"Yesterday people were thinking the market was going to fall off of a cliff, and today we're seeing a lot of institutional buying coming in," said Adam Sarhan, chief executive of Sarhan Capital in New York.

"So, the buy-the-dippers show up and defend the market. That leads me to believe there's more upside."

Indexes posted losses for the week, however, with social media shares among the weakest performers following disappointing outlooks and results this week from several key players including Twitter (TWTR).

The Dow Jones industrial average (^DJI) rose 183.54 points, or 1.03 percent, to 18,024.06, the Standard & Poor's 500 index (^GSPC) gained 22.78 points, or 1.09 percent, to 2,108.29 and the Nasdaq composite (^IXIC) added 63.97 points, or 1.29 percent, to 5,005.39.

Social Media Losers

LinkedIn, Twitter and Yelp (YELP) all notched their biggest weekly percentage declines since their debuts. LinkedIn (LNKD), which reported results late Thursday, dropped 18.6 percent to $205.21.

For the week, the Dow was down 0.3 percent, the S&P 500 was down 0.5 percent and the Nasdaq was down 1.7 percent.

Consumer sentiment jumped and vehicle sales were stronger-than-expected in April, while manufacturing expansion in the month held steady at near a two-year low.

Railcar makers gained after tougher oil-train safety standards, including rules to phase out older tank cars in three years, were announced.

Greenbrier (GBX) gained 8 percent to $62.33, while Trinity Industries (TRN) rose 6.9 percent to $28.96. American Railcar (ARII) was up 5.9 percent at $56.18.

Advancing issues outnumbered declining ones on the NYSE by 1,850 to 1,201, for a 1.54-to-1 ratio on the upside; on the Nasdaq, 1,664 issues rose and 1,118 fell for a 1.49-to-1 ratio favoring advancers.

The benchmark S&P 500 index posted 10 new 52-week highs and no new lows; the Nasdaq composite recorded 35 new highs and 69 new lows.

About 6.3 billion shares changed hands on U.S. exchanges, compared with the 7.2 billion daily average for the last five sessions, according to data from BATS Global Markets.

-With additional reporting by Tanya Agrwal.

What to watch Monday:
  • The Commerce Department releases factory orders for March at 10 a.m. Eastern time.
Earnings Season
  • AMC Networks (AMCX)
  • AmeriGas Partners (APU)
  • Anadarko Petroleum (APC)
  • Avis Budget Group (CAR)
  • Cablevision Systems (CVC)
  • CNA Financial (CNA)
  • Comcast (CMCSA)(CMCSK)
  • Concho Resources (CXO)
  • Dominion Resources (D)
  • Dun & Bradstreet (DNB)
  • Fidelity National Financial (FNFV)(FNF)
  • Loews (L)
  • Luxottica Group (LUX)
  • MGM Resorts International (MGM)
  • Strategic Hotels & Resorts (BEE)
  • Sysco (SYY)
  • Tenet Healthcare (THC)
  • Texas Roadhouse (TXRH)
  • Tyson Foods (TSN)

 

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7 Rental Car Gotchas - and How to Avoid Them

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By Allison Martin

Are you a frequent patron of rental car companies? If so, you may be well aware of their shrewd practices that can leave you in the hole if you fail to be a responsible shopper. And what about all of the hidden or surprise fees that come with the territory?

When I made my first rental car reservation, I was stunned at how low the rate was. Unfortunately, I quickly learned that things aren't always what they appear to be when I picked up my ride for the weekend. The initial figure was just an illusion. Here are seven common rental car gotchas to watch out for:

1. Penalties and Extra Fees

This is usually where the trapping begins. You walk into the rental car company, hand them your reservation, and drive away with exactly what you reserved at the quoted price, correct? Well, not if you are offered a more luxurious ride, need to extend the rental for a day or bring the car back early, plan to use a debit card, or alter the return destination. These are just a few of the scenarios in which your wallet can take a hit. To avoid these fees:
  • Decline the upgrade unless it is being offered as a courtesy to you.
  • Do not extend the rental car reservation unless it is an emergency. And if you must, be aware that the rate for the extra day will more than likely increase.
  • Avoid returning the rental car to a location that differs from where you retrieved it. Doing so may result in the assessment of a penalty.
  • Search for a rental car company that accepts cash or does not require a deposit for debit card transactions. If your attempts are unsuccessful, brace yourself for a $200 to $500 hold on your account and endless amounts of paperwork.
  • Refrain from smoking inside the vehicle. If you fail to heed my warning, you will pay a cleaning fee.
2. Airport Rentals

Convenience definitely comes at a premium rate when you rent a vehicle from an airport location. Some airport locations have extended hours, making it easier to hop off a plane and go about your merry way without having to worry about unloading a wad of cash to pay for a taxi. However, the cost of these added perks is passed along to the consumer in the form of higher rates.

If at all possible, catch a taxi or take public transportation to an alternative location to avoid airport surcharges. It may require a bit of planning ahead, but it could prove worthwhile. And if you must rent at the airport, make your reservation online beforehand to secure the best rate.

3. Incidentals

The friendly sales representative at the counter may encourage you not to worry about gas because the rental agency can always fill the car up for you if you're short on time. But you may want to think again, because the agency's rate per gallon is typically a lot more expensive than you'll pay at a gas station. Also, say "no thanks" to the toll pass, GPS system, satellite radio, roadside protection, car seat or any other service that they offer to make your trip more "comfortable." If you don't say no, you will pay.

4. Insurance

According to the Insurance Information Institute, most rental car companies offer the following coverage options:
  • Loss-damage waiver ($9 to $19 per day).
  • Liability coverage ($7 to $14 per day).
  • Personal accident coverage ($3 per day).
  • Personal effects coverage ($1 to $2 per day).
But it's possible you don't need any of these options. Before you rent a car, call your car insurance company and your credit card company to see what kinds of coverage they already provide for rental cars, and under which circumstances it applies.

5. Mileage Limitations

Looking to save a few bucks on your rental car reservation? A limited mileage arrangement may do the trick, but could also be disastrous if you fail to plan properly. You will be charged a flat fee only if you don't exceed a specified number of miles in a single day or for the duration of your rental. But if your plans change, brace yourself for the additional fees. Also, inquire about territorial restrictions, as your contract may allow only in-state travel.

6. Inspections

Even if you are in a hurry, do not leave the premises until the sales representative has performed a thorough interior and exterior inspection of the vehicle. Failure to do so can result in that scratch on the bumper or coffee stain in the rear passenger seat becoming your problem. Cover yourself by taking photos during the inspection.

7. Underage Drivers

Are you under the age of 25? Don't get too thrilled about the prices you see online, because you may be paying almost double that amount. Before I reached the "golden age" in the rental car world, I attempted to rent a car to travel to an out-of-town event so I could preserve my car's mileage. The amount on the contract was equivalent to a car payment on a used vehicle.

Have you run into any of these issues when renting a car? Let us know in the comments below or on our Facebook page. Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash.

 

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10 Life Skills You Should Master by Age 30

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margarita mexican food party toast AA017687			Photodisc Green			People Toasting with Margaritas										Ryan McVay		 Adult Alco
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By Amanda Meadows

Are you a 20-something trying your best to transition fully into adulthood? We've all been there. It's time to start developing those go-to skills that will make adult life much easier. Get started on these 10 life hacks you should master by age 30.

1. Changing a Flat Tire

As with most emergencies, you should be prepared for the worst. Sure, AAA is great, but what if you're in the middle of nowhere, or in the middle of rush hour? A flat tire is relatively easy to fix, so learn how to change a tire, now. You can practice in your driveway.

2. Repairing Your Pipes

Leaky pipes and clogged drains are the kinds of nuisances that we live with until something worse happens -- and that shouldn't be the case. Look like a boss with your wrench or drain snake and fix leaky pipes without a plumber. Your roommates or your significant other will thank you.

3. Assembling an Emergency Kit

Everyone should have an emergency kit for their home, car and even for their work desk. Buy three nylon duffel bags, then head to the hardware store and fill them with the essentials. In addition, have a "top five" of close people you'd call for help in an emergency.

4. Mixing a Signature Cocktail

Having a go-to cocktail that you can make for yourself is a classy life hack that will make you a better host. In the process, you'll likely want to learn more drinks. For bonus points, learn to make your signature drink in large cocktail batches for parties.

5. Mastering at Least One Dish

Learn how to cook something from scratch! It's about time. It's always impressive to others and delicious for everyone. Pick a dish that requires a mix of multiple ingredients at different times. Spaghetti doesn't count, but spaghetti carbonara does. Start here with some great restaurant dishes you can make at home.

6. Wrapping a Present

How often have you struggled to wrap a gift last minute only to reuse an old gift bag instead? Learn how to wrap presents creatively with all kinds of materials. You may find that your recipients will enjoy your gifts even more because they love how beautiful they look before even opening them.

7. Figuring Out the Tip

Find it hard to get that 20 percent? Simply take 10 percent of the total (move the decimal twice to the left), and double that. At group meals in which the restaurant doesn't add gratuity, do the same thing, then divide that by the number of people at dinner -- and make sure they don't add the tip until after they are charged for their share of the total.

8. Creating a Monthly Budget

Saving for the future is one of the most important things you can start doing in your 20s. These days, we have tons of programs to help track your spending and expenses. Pick one and start budgeting month-by-month. Once you get the hang of it, start a year-long savings plan.

9. Effectively Packing Luggage

No, we don't mean cramming your belongings into a carry-on! Consider your mode of travel, destination, and duration of the trip. Bring exactly the amount of undergarments, shirts, and pants you'll need, and only essential toiletries. Tip: try rolling your clothes together instead of folding for more space.

10. Mending Clothing

Wardrobe malfunctions can happen to anyone at anytime, so basic clothes mending should be in your repertoire. One should know how to sew a button, quickly re-stitch a hem, patch a small hole, and other basic clothing fixes. Study a few mending tutorials and start practicing on old garments.

 

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How I Lived Without a Credit Card - and Then I Snagged One

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By Lucy Mueller

This year, shortly before turning 26, I opened my first credit card. It's a Capital One Platinum MasterCard, for which I was pre-screened. It comes with a $500 credit limit and an interest rate that almost exceeds my age.

"And it's got travel accident insurance!" I told my mother excitedly on the phone, squinting at the fine print on the approval letter. "'For loss of life or limb at no extra charge!'"

If you're wondering why I'm so excited to be the owner of what is basically a Fisher-Price credit card, you have to understand the Napoleon complex that not having any credit gave me. I was never trying to make a point by living without a credit card, like those famously responsible members of my generation. "Millennials are saying no to credit cards," a recent CNN headline reads. My problem was that all the credit cards were saying "no" to me.

The Credit Catch-22

I had been trying to get a credit card for a few years; I applied to several of the easy ones my friends promised had been their "starter" cards, but had zero luck. Companies that promised a response "in only 60 seconds" took about two weeks to let me down over snail mail.

The problem was I had what agencies call a "thin file" -- too little information about my financial history to vouch for me. I'd never had a credit card, student loans or car payments. Years of diligently paying my rent or utilities on time had never been picked up by a credit reporting bureau. All I had to my name were a handful of hard credit card inquiries. Basically, I was stuck in that awful credit Catch-22 of not having the lines of credit you need to build a credit score to obtain access to credit. It's important to hop in and say here that there were a number of options I could have taken at this point:
  • Opening a secured card: These cards typically require an up-front deposit of several hundred dollars which will be used as collateral. They also usually charge some sort of annual fee. Good news is, they report to major credit agencies, getting you on the map, and after six months to a year, you can upgrade to a real credit card and get your deposit back.
  • Calling utility companies: Service providers like utility companies usually only report you to the major credit bureaus if you mess up, but you can actually request that they add good behavior -- like consistently paying your electric bills on time -- to your report. This only works if the utility bills are in your name, so if you're Venmo-ing that reliable roommate every month, you're out of luck. An upcoming FICO score will include utility payments.
  • Get a cosigner: Piggyback off the track record of someone else when applying for a loan or a credit card. Keep in mind, there's really nothing the other person gets out of this deal.
Instead, I just kept applying to cards that were bound to reject me and, in the meantime, getting by (more or less) without credit.

Financing Your Life Without a Credit Card

If you don't have a credit card, you have to be a little craftier about how you pay for certain things, like car rentals, hotel stays and items you can't afford.

The first two usually require a prohibitively big cash deposit or a hold on your debit card. There are, however, several ways to get around this, including the time-honored tradition of mooching off your companions. For example, if you're sharing a hotel room with a group, there's always going to be the reliable friend who will put the deposit on his credit card (he's probably the one that drove you all there in the first place). You'll Venmo him for the gas and room costs later.

If you don't want to continually be that friend, you can also try to bargain with the hotel or rental company over the phone; it's amazing what a little bit of schmoozing will get you.

That's what I learned from Cynthia MacGregor, a freelance writer and editor from Palm Springs, Florida, who's been living without a credit card since she declared bankruptcy three years ago. She told me she never missed having a credit card at all, except when she had to rent a car on a business trip. She'd previously had luck at a rental car company in Austin, Texas, that didn't require a credit card, but learned in advance of the trip that cash deposits were no longer accepted.

"But when I expressed disappointment, saying that had not been a problem last year, the woman asked me to hold on, and a minute or two later returned to the phone to tell me they would make an exception for me," MacGregor said. The "asking nicely" policy works surprisingly well for a number of the purchases that usually require a credit card. But it's not going to fly when trying to buy something you simply can't afford.

Dirty Ways to Get by Without a Credit Card

This is something you shouldn't do regardless of whether you have a credit line, of course, but if everyone stuck to only purchasing what they have the money for up front, the average household credit card debt wouldn't be almost $16,000.

As a post-grad with a studio apartment, part-time job and no emergency fund, I didn't have a credit card to rack up charges I couldn't pay. But I did make a harmful financial move from time to time when I needed a little float. Instead of sitting down and figuring out what I could live on, I would make it to the end of every pay period with $0 in my checking account. Then, I would make a calculated overdraft. Overdrawing my account never hurt my credit (since a fresh direct deposit always wiped away the deficit), but it took a hefty chunk out of my budget each month.

It's basically the equivalent of treating your checking account like a payday loan, and it'll get you in the exact same cycle of always being in debt to yourself. The Consumer Financial Protection Bureau estimates that the interest you'll end up paying on a single overdraft is about 17,000 percent APY. It was a hard habit to break. And it taught me something important: I probably don't deserve credit.

Why People Like Me Probably Shouldn't Have Credit Cards

Recently, I've been talking to people who also lived or are currently living without a credit card. In most cases, on their end, it's a choice - it's because they weren't responsible back when they had credit.

Have you heard about the Stanford marshmallow experiment? It was a study done in the 1970s that measured how well a bunch of kids were able to delay gratification. Young participants could either eat one marshmallow now or two in 20 minutes; years later, they found those who were able to wait the 20 minutes for a 100 percent return on marshmallows had higher GPAs, better graduation rates -- and, unsurprisingly, higher credit scores.

My natural resting state is as a one-marshmallow kid. And that's true for a lot of people. Overspending is classified as an impulse control disorder by the Diagnostic and Statistical Manual of Mental Disorders, just like alcoholism or an eating disorder. It affects about 6 percent of women and 5.5 percent of men, according to a 2006 Stanford University study published in the American Journal of Psychiatry.

"Basically, I treat myself around credit cards the way an alcoholic treats themselves with booze," Allyson Whipple, an adjunct professor at Austin Community College, told me. "I just need to stay away from them!"

Well, I have one now, along with a rough budget, a fledgling credit score and a great respect for how much trouble credit can cause. I diligently pay off my balance every month, because I know what a slippery slope it can be if I don't. I'm working on budgeting, saving and investing (I opened a 401(k) last year and contribute the most I can for a full employer match). Basically, for the first time in my life, I'm living like I don't have credit -- with my first credit card.

 

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Let's Share Homes, Boats, RVs - Even Meals

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By Mia Taylor

If you've seen the movie "The Holiday," you're familiar with home swapping and how much more interesting and affordable it can make a vacation. In Hollywood's version, the experience includes glamorous homes, unexpected and unique interactions with local people and businesses, even a dashing love interest. In Debbie Wosskow's real-life version, only the handsome leading is missing.

"You genuinely have experiences that money can't buy -- authentic, local, different experiences -- when you're staying in a neighborhood at someone's home or in a community, instead of in a hotel," says Wosskow, founder of the world's largest home exchange club, Love Home Swap. "I stayed in a spectacular one-bedroom warehouse apartment in a residential neighborhood of Sydney that was loaded with beautiful art. It was the kind of place I would have never normally set foot in ... and the owners gave me a guide to the neighborhood, including the best Pilates studio and local farmers market."

Established in 2011, Love Home Swap allows members of all backgrounds to swap homes -- to date, more than 63,000 properties in 160 countries, reporting an average 33,000 swaps each year. There is no cost to swap via Love Home Swap, just a fee to be a member of the site -- ranging from about $179 to $628, depending on the level of membership.

"There is a huge cost savings if you're going to swap a home rather then pay for hotel accommodations," Wosskow says. "So, yes, it's about cost, but it's also about life swapping. It's about putting yourself in someone else's skin and walking around in it." It's also just one example of the booming sharing economy and its increasing influence on travel and how people vacation.

Shared Boats and RVs

While Airbnb is the most well known in this burgeoning industry, the sharing economy has grown to include everything from swapping or sharing boats and yachts on vacation to private jets, recreational vehicles and bicycles. The website Get My Boat, for instance, provides access to privately owned boats in more than 135 countries and 3,000 locations. Accessing boats can cost as little as $40 an hour -- or be glamorous and expensive, including the opportunity to sail aboard the yacht from the 007 movie "The World is Not Enough."

Not to worry if you don't know how to sail a boat or captain a yacht - the site's offerings are for all experience levels. There are boat-chartering opportunities available, as well as bare-bones rentals for those who want to do it all themselves. "We wanted it to be an open platform. We wanted to bring boating to the masses. And we rent everything from paddle boats to mega yachts. It really does cover a lot," spokesman Bryan Petro says.

RVShare says the average family's RV will sit unused for approximately 90 percent of the year. "What the traveler gains from peer-to-peer RV rentals is options," co-founder Joel Clark says. "If they were to go to CruiseAmerica, there's hundreds of the exact same type of vehicles. Through RVShare you're working with private owners, and for many of them this RV is their second home, which means it comes with all the options and amenities that they have taken great pride in installing."​

Unique Experiences

Maxwell Luthy, director of trends and insights at trendwatching.com, other sharing websites disrupting the travel economy include Eatwith.com and VizEat (global communities that allow participants to enjoy authentic and intimate dining experiences in people's homes and Onefinestay (luxury accommodations) and Hovelstay (the anti-luxury marketplace -- offering everything from a hammock in Costa Rica to apartments in Hong Kong).

Luthy counts four primary drivers behind the remarkable blossoming: our urge to connect as human beings, the financial value sharing provides, the ability to answer travelers' increased concern with sustainability and being less wasteful, and to deliver on the search for unique experiences. "Traveling is all about the experience," Luthy says. "So in an era of abundance, you need to have the unique experience. And these sharing opportunities allow for that."

 

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