Whenever we visit a local restaurant, beauty salon, barber shop, nail salon, spa, or similar business, tipping is usually an expected practice. We first pay for services rendered and then are expected to leave a tip as additional gratitude. The most frequently suggested tip amounts range from a minimal 10% (poor service) to 20% (excellent service) of the total bill. These figures are even printed on most receipts, and most people don't have a problem following these guidelines. Still, there are some out there that choose not to engage in the practice of tipping. Some will say this is due to consistent poor service. Others believe the amount of money spent for a service is sufficient. Whatever their reasons, these individuals are choosing to disregard a commonly followed social norm. Personally, I always tip because of my empathy for workers that depend on these funds for income supplication. I've been a waiter and completely understand what it's like to depend on tips because of a low hourly wage, but that doesn't mean I believe all people should feel this way. I do struggle with embracing the reasoning behind the practice of tipping. If employers simply paid their workers more, wouldn't tipping become more of a luxury instead of a norm? I'm sure this would result in higher prices for these common services, but would I really be paying more? While a person that doesn't tip would be forced to pay more for these services, I probably would be spending less. I've come to this conclusion based on my experiences paying for services that included a mandatory gratuity charge. These mandatory gratuity charges are typically less than my average tip percentage, which leaves me with more money in my pockets. So why don't more businesses simply incorporate gratuity into the regular price? Could it simply be another cost saving measure business owners use to increase profit margins? Do most employees prefer to be paid this way? In the past, many employees preferred to be paid this way because cash tips are difficult to track for taxing purposes, but the increased popularity of the credit card has limited its effectiveness. People don't tip with cash as much as they did in the past because they don't carry it around as much. In fact, the only businesses that haven't been heavily affected by this increase in credit card use are strip clubs. What about the part that I play in this? By leaving a tip am I encouraging employers to short change their employees? I'm not sure, but what do you think? Should we tip if it encourages employers to short change their employees or should we be more concerned with the welfare of those that depend on these monies?
Use the voting buttons below to pick your side and don't forget to leave a comment.
Avoiding D.E.B.T. Tip of the Day:
While trying to evaluate someone’s values may take several months or years, less time is required to analyze their financial habits. Even the best con artists are only capable of hiding their financial habits for a few weeks before being ousted by those paying close attention. Remember, a large percentage of long term relationships end due to financial disputes. If you aren't financially compatible with someone while you're dating, don't expect things to change later in the relationship.
Avoiding D.E.B.T. Tip of the Day
Don't allow the season of visual appeal to trick you into paying someone else's bills. People may look good on the outside, but that's not a cure for financial problems. If you wouldn't deal with someone that doesn't have his or her finances together in the winter; don't change your mind when the temperature rises above 75 degrees. Broke is still broke; even if it's covered with eye candy.
Building Wealth Tip of the Day
Contrary to popular belief; building wealth isn't all about earning more money. It has a lot more to do with how you manage your debt. Earning 7 figures per year won't make you wealthy. Keeping your total debt below 30 percent of your income will lead to wealth. Do yourself a favor and make sure to watch your debt levels while searching for ways to earn more money. Combining these efforts will increase your chances of living out your dreams.
Credit Repair Tip of the Day
If you've filed bankruptcy or are starting to rebuild your credit file; consider getting a secured credit card or a credit card for those with bad credit history. Several creditors like Capital One have credit cards for applicants with a credit score between 570 - 630. Many others offer secured credit cards with a fee that can eventually convert to an unsecured credit card. While annual fees and application fees will accompany most of these cards, they will report your good payment history to credit reporting agencies. To find these offers simply type bad credit credit cards into your search engine browsers and you will have plenty of options to choose from.
Credit Repair Tip of the Day:
Paying off a collections account will not improve your credit score any more than settling (agreeing to pay off the account for less than the full balance) it. If you are offered an opportunity to settle one of your collections accounts; take advantage of the offer. The key is to make sure the remaining balance is less than $600.00 so you can avoid that dreaded 1099-c. If you surpass $600.00, don't panic. A good tax preparer can help you offset or eliminate this additional income; especially if you are qualified to claim insolvency. Always do what's in your best interest and make sure you fully understand the details of a settlement agreement.
Money counseling: How it helps you get out of debt and put your finances on the right track
Are you amongst the middle class populous that have
incurred enormous debt? Do you find it difficult to make sufficient income? Are you struggling to save after meeting your necessities due to a lack of sufficient income? If this is your situation, then you are probably experiencing
frequent sleepless nights and worry about how you will overcome debt problems.
You can find various information on the Internet with which you can get out of
debt. One often used option comes in the form of money counselors. These
counselors may help you get your personal finance on the right track and also
draft a suitable budget you can follow. Other than this, you can also choose
suitable debt relief programs such as credit consolidation, debt settlement, and
similar assistance to wipe away debt problems.
Credit counseling – Suitable option to eradicate debt worries
There are certain situations where you cannot single handedly gain control of your debt problems. They occur when your emotions don’t allow you to reasonable handle your financial matters. If you’re facing such difficulties, then you may opt for credit counseling services. When you take their help, these credit counselors help you solve your financial worries,particularly if you’re overstressed due to insufficient money or you aren’t aware about all your possible options. Credit counseling agencies also offer debt management programs that will help to eliminate your debt problems. It’s suggested that you search for an authentic credit counseling company, identified by the National Foundation for Credit Counseling, because they are the best organizations to assist you with your debt problems. With their
suggestion, you’ll also be able to save money for your future.
Budgeting – The need to formulate one and reduce debt with it
Debt problems often arise when you do not make sufficient income to sustain your lifestyle. As such, unless you change your spending habits, you’ll not be able to eliminate debt problems. Following a good budgeting plan will help you with this problem. Having a good budget is important if you want to live within your means and avoid incurring further debt in future. A credit counselor can help you draft a budget, if you can’t create one by yourself. Though it's easy to get a lot of advice on formulating budget from the different sources, a credit counselor will sit with you and review your financial condition thoroughly. He or she will help to create a plan that will have you spending less and repaying your debt, but you still
have some work to do. Before you go to a counselor, check your banking statements and make a list of how much money you spend each month on rent or loan payments, eating out, transportation, groceries, out-of-pocket expenses, gifts, phone bills and any other category that fits your way of living. By doing so, the counselor will be able to prepare a budget that is adaptable to your needs.
Make sure you look into all options for debt reduction assistance because your livelihood depends on it. It’s not that easy to save when you aren’t able to make satisfactory income. Still, you’ll have to see where you can cut down your expenses in order to free yourself from debt chain. Now is the time to reduce your debt and take back your life.
Author Bio: Mr. Andy Masaki is a financial writer who is an expert in dealing with money related problems of innumerable people. He has written his excellent pieces of work on various financial topics such as debt management, credit counseling, debt settlements, budgeting, personal finance and so on.
Credit Repair Tip of the Day:
Prioritize your debt pay down plan. While it is important to pay down all of your outstanding debt; some debts affect your credit score more than others. Medical bills with third party collectors, old cable bills, and collections accounts older than 3 years should be at the bottom of your list. The exception to this rule is if not paying these accounts immediately will lead to a garnishment or denial of service. Otherwise, hold off on paying these types of accounts if there are more pressing needs.
Credit Repair tip of the day:
When you're trying to improve your credit score, make sure you aim to keep your balance to available credit ratio below 30 percent. Lenders like to see ratios between 10 and 25 percent and keeping your balances in this range will drastically improve your personal credit rating. Let's all do ourselves a favor and work to improve our credit standing in celebration of National Financial Literacy Month!