Category Archives: Featured

Featured posts.

Making Sense of Endless Photos

As technology enables us to do more we begin to feel overwhelmed with options and have the potential to end up with less. This concept is extremely relevant in the digital world of photos. Digital cameras and computers with next to infinite memory have allowed us to take photos of every moment of our lives. What can be done to enjoy and benefit from these opportunities?

Software to Stay Organized

First off, you need a way to keep all your photos organized. The top two pieces of software are from Google and Apple. Google provides slightly better photo editing and online syncing while Apple’s software will be preferred by those who want a simpler interface. With either one, you will be one step closer to better photo management.

Picasa from Google (PC and Mac)

  • Works on any computer
  • Great editing tools and face recognition
  • Organize photos Folders and Albums
  • Easy upload to numerous websites including Google’s own PicasaWeb

iPhoto from Apple (Mac)

  • Only works on Macs
  • Sleekest interface
  • Organize photos by Events and Albums
  • Decent editing tools and face recognition
  • Upload photos to sites like Facebook, Shutterfly, Flickr, and PicasaWeb (may need Mac plug-in)

Sharing Photos

Once you begin to get a grip on all your photos, begin to get real value from your photos by sharing them online and ordering books, cards, and more. For online sharing, consider the following options.

Facebook – Since everyone you know is already on the site, use the uploading tools from Picasa or iPhoto to quickly share with friends and family what is going on.

PicasaWeb – Google’s online photo sharing is an easy way to share all your albums with friends and allow them to download your photos too! You get 1 GB for free and then another 5GB for an unbelievably cheap $5 annually (most sites charge $25+ for this).

Shutterfly – The well known photo site allows you now to set up a personal webpage with access to your newest albums and pictures just like a photo blog. You get unlimited space and others can buy your photos from Shutterfly but cannot download them.

Photo Books – After uploading your photos to a site to share, be sure to order a photo book. This the easiest way to show friends and family when they stop by your home and it will make you look like a professional.

More Fun with iPhone Apps

Path – a photo sharing app that only allows you to have 50 friends and family so that you stay focused on sharing with those closest to you

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Instagram – a enjoyable photo app that lets you take photos and then apply retro filters before sharing with friends and followers

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How do you keep all your photos organized? Critique me or share your own tips in the comments below.
(photo credit: Shutterstock)

How to Protect Your Home from a Burglary

I recently experienced a home burglary and through the incident I have learned a lot. Although worse things can happen, coming home to a house that has been broken into is a traumatic experience. Losing “stuff” hurts a little, but more so are the lost memories, like photos on a computer, and the lost sense of safety a home typically provides. Here are some lessons I have learned from the experience. While not exhaustive, following these tips will leave you be better prepared if your home is ever targeted. Feel free to add your tips in the comments section.

Minimizing the Risk

First off, when a home is burglarized, it is because burglars chose it over other homes for some reason. Finding ways to prevent your home from being targeted is a great place to start. Consider the following.

  • Put up signs showing you have a security system
  • Use random timers on lights when you are out of town
  • Have a garage – though not easy to change once you own a house, it’s important to understand that houses without a garage help burglars know when no one is home
  • Get a big dog that may scare away intruders (be smart – a dangerous dog that can potentially harm your family is not worth scaring off intruders)

Additionally, you can minimize the risk of harm by forcing intruders to get off the scene quickly. Here are some ideas.

  • Let trusted neighbors know when you’re not home and what cars you drive so they can keep an eye out for suspicious vehicles
  • Use an alarm system – be sure to register it with your local police precinct to prevent getting fined for false alarms
  • Install home web cams – there are a number of webcam systems that record when they detect motion or consider a fake one as a deterrant
  • Use locks on expensive equipment like TVs and computers to make stealing them more difficult
  • Use long screws into a solid frame on dead bolt locks to make it hard to kick in doors

By combining the ideas above, you will be even more safe (e.g. if your alarm is going off and a neighbor sees a suspicious car they are more likely to call the police and write down vehicle information than if there is no alarm or the neighbor thinks it is your car).

Protect Memories

Even though your home is now a less attractive target and burglars have limited time to steal stuff, you still may want to take further precautions to protect important items in your house that are harder to replace.

  • For computer files, consider an online data backup program like Mozy or Carbonite (~$50/yr). While potentially more expensive than an external hard drive, online backup is easy to set up and can’t be stolen by intruders.
  • Scan important papers and photos onto your computer too. This helps in the event of a burglary and other events like a tornado, flood, or fire.
  • Tag your pets. In case your dog or cat gets out through a door left open, make sure it has a collar with your phone number on it and a microchip that vets can use to identify your pet in an online database.

Protect Value

In addition to preserving memories, you definitely want to make sure you have taken the right steps for preserving value. Great insurance helped us quickly replace lost items.

  • Understand whether your home or renters insurance covers the purchased value or replacement value of your items.
  • Understand the deductible on your home in the case of a burglary. The deductible amount will reduce how much money insurance gives you but also reduces your annual premium.
  • Document expensive items in your home by taking pictures and savings receipts.
  • Save serial numbers to help the police identify stolen items and to prove ownership.
  • Download some tracking software to help find computers that have been stolen. Something as simple as free backup software like Dropbox will identify the IP address of a stolen computer when it is connected to the internet. You can find the internet provider of an IP address and the police can work with them to find the physical mailing address where a stolen computer is located.
  • In the event of a burglary, file a police report as soon as possible and let them know what has been stolen to the best of your knowledge. This will make the insurance process easier.

The more you do, the better your chances are at preventing a burglary or getting through one with minimal losses. You may never be perfectly protected, but it’s always helpful to be prepared.

(photo credit: Shutterstock)

Escape Financial Worries with Margin

One great solution that has helped to keep me from obsessing over my finances is the idea of margin. Surprisingly, I learned this at my church and my pastor used a great phrase to sum up the impact of margin. He said something to the extent of, “Relationships are made in the margin.” The idea at the time being all the great things we love about life – friends, hobbies, adventures, solving problems – are only possible when there is room for the unexpected.

What is Margin?

To some people, margin is the extra profit they make on a deal, but for now, think of margin as the extra room we leave ourselves for the unexpected. Here are some examples on how you can create margin financially.

  • Make sure your checking account has more money than you plan to spend each month.
  • Have a budget item called “margin” that goes towards unexpected causes.
  • Create an emergency fund (3-6 months expenses) in case you lose a job or have an emergency expense.
  • Don’t buy a big purchase on credit/debt.

How Does Margin Help?

No matter how you do it, leaving room for unexpected opportunities allows you to experience the best of life. Here are some examples on how financial margin can benefit you.

  • With a well funded checking account you no longer have to worry about over-drafting.
  • A “margin” line item in your budget frees you up for spontaneous activities like treating a friend who is in town or supporting a sudden crisis.
  • An emergency fund is like insurance for down times.
  • Avoiding debt gives you the ability to take on unexpected opportunities to invest in yourself or others.

How have you incorporated margin into your finances? Have you experience any unexpected opportunities that make you wish you had more margin?

(photo evilerin)

How to Reduce the Need for Welfare

It’s one thing to have a lot of money or know a lot of people, but it’s a much more important thing to know how to use the money you have or to give and receive support from friends. If you have plenty of money but can’t use it to achieve your goals then you have much less wealth than someone with no money but plenty of supporters who are willing to provide everything he needs. I bring this up to show problems I see with some welfare programs and to inspire readers to find better ways to support those around them.

Two Views on Welfare

I recently came across an article discussing two books that see welfare from two completely different viewpoints.

In the book, Nickel and Dimed, the plight of poor workers is discussed and analyzed. The author Barbara Ehrenreich argues that workers at minimum wage jobs are stuck in an endless cycle where they never have enough money or energy (after manual labor jobs all day) to improve their livelihood through better education and networking. She suggests welfare is needed to get people out of this endless cycle.

In Scratch Beginnings, Adam Shepard performs a personal experiment to prove wrong the concept in Nickel and Dimed. He moves to a foreign town and starts off with only $25. After starting with no job or connections and living in a homeless shelter, he is able to amass $2,500, a job and a car in a year. Apparently, anyone can get out of a financial pit if they just have the right mindset.

The Key Concept

Although the books look at welfare from different lenses, both have a good point – People can get stuck in poverty. Where they differ is where a solution can be found.

When Adam Shepard found a way out of poverty he admitted that the life and financial lessons he had learned from accomplished family and friends while growing up made a big difference (the only difference from my perspective). Most people stuck in poverty don’t grow up hearing what they need to know to get out of tough situations. This is evident in stories of poor people just completely wasting handouts designed to help them. Welfare does not help them because they don’t know how to use it. Concepts that wealthy people consider common sense are lost among people spiraling through poverty.

How to Fix Welfare

If the lack of knowledge is why people get stuck in poverty, then educating them is the best way to help them out. Whether you are a hard core capitalist, tired of paying taxes, or just someone who cares, investing in the education of simple life and financial lessons has benefits for everyone. Welfare can be removed (or shrunk) if we simply remove the need for it. Here’s how.

  • Capitalism assumes everyone knows what’s best for them. To help pursue this ideal, companies should invest in programs that teach basic financial principles and skills to people who did not learn them growing up.
  • Individuals, take the time to develop relationships with people lacking the basic understanding of finances and business skills and gradually teach them what you know as trust is developed. This can be done by putting some of your time towards mentoring to and volunteering for those in need.

Great examples of these investments paying off can be found everywhere. One I recommend is the book Same Kind of Different as Me. It’s a true story about a couple who invests in one homeless man with the goal of learning his story as he learns about their own.

What ideas do you have on improving the lives of those in poverty or ceasing the need for welfare? How have you invested in the lives of others so that they can learn from your experiences? It may be idealistic to say welfare will end soon, but educating those without simple financial knowledge can go a long way to helping us all.

(photo credit jimfischer)

A Personal Credit Score Designed for You

Many people rely on banks to tell them whether or not they deserve a loan to buy anything from a house to a TV. What people don’t realize is that credit scores are designed to tell banks how much money they can make off of someone.

From a bank’s perspective, credit scores tell the following.

  • Someone with a high credit score is a good guarantee of consistent profits
  • A medium score is potential for high profits through fees but with some risk
  • A low credit score is too risky to consider

We need a system for us to know when to get a loan or when to sign up for that credit card. A true Personal Credit Score will tell us (and not the banks) when a credit decision is best for us. I have started a score sheet below to help everyone out.  Let me know if you think this works for you or if something is missing.

Rules of Credit

My Personal Credit Score tool is based on some well known rules of money.

  • Managing money takes time and time is our most limited currency (not money or gold)
  • When you give money as charity, money loses its grip on your life
  • Spend less than you make (auto saving)
  • Don’t use a loan to buy something that depreciates
  • You earn the right to use a credit card
  • Credit makes it easier for people to spend beyond their means

Personal Credit Quiz

Now choose the answers below that best describes you and keep track of your points. At the end you’ll have a better idea of your true Personal Credit Score and when you should be using credit.

Do you consider managing money a fun hobby?

  • Yes, I love it and could spend hours each week! – 100 points
  • No, but I still spend a few hours monthly doing a budget – 60 points
  • No, I don’t look at bank statements ever or commonly miss bill payments – 0 points

How much money do you donate annually?

  • Greater than 10% of my salary – 100 points
  • Between 5-10% of my salary – 75 points
  • A little bit when something bad happens – 20 points
  • Sorry, I’ve got my own things to buy – 0 points

Do you spend less than you make?

  • Yes! I even have an emergency fund with 3-6 months expenses – 100 points
  • Yes. I have an automatic savings account – 60 points
  • Sometimes – 10 points
  • No, I’m living paycheck to paycheck or off my parents – 0 points

Do you currently have debts (including credit card bills not paid off monthly) ?

  • No, I don’t have any debt – 100 points
  • No, except for a house, student loans, or another appreciating asset – 50 points
  • Yes, I’m sorry but I just had to buy the car or TV via a loan/credit – 0 points

Do you have an income producing job?

  • Yes, it’s a full time job – 100 points
  • Yes, part of the time – 30 points
  • No, but I’m looking or volunteering – 5 points

Results

Great job! Now here are your results.

  • 500 – Congrats you financial all star! Feel free to use a credit card, but I’d be surprised if you really wanted one. Also, take some time to write a guest blog on Obsessed Analytic.
  • 420-499 – You’re financially sound. If you have the time, you’re allowed to get a rewards credit card, but keep looking for ways to improve.
  • 350-419 – Still hanging in there, but be careful you don’t lose track. Don’t get a credit card until your score improves.
  • 280-349 – Things are getting tense so make some time to get things in order. Don’t use any credit cards.
  • 150-279 – You’re good in some areas, but other areas can bring you down. Find the problems and do something. Obviously stay far away from any credit cards or loans.
  • 50-149 – Don’t panic. Just breathe. It could be worse, but time to sound the alarm. Start fixing one thing at a time and find someone to hold you accountable.
  • 0-49 – I’m not sure how you found this blog. Send me an email and I’ll help you get going, but this may take a while.

How’d you do? What is your first step to improving? Let me know, comment below, or tell a friend.

This post is featured on the Festival of Frugality: Time Passes Edition.

(photo credit frugallawstudent)

Billionaires Give Wealth Away in the Giving Pledge

Warren Buffett is famous for being one of the richest men in the world, but he is also known as a great example for his pledge to donate 99% of his wealth.  Over the past few years, he has been working with Bill Gates to challenge other wealthy businessmen and celebrities to relinquish the hold they have on their money for the greater good.

The Power of Giving

I have long been an advocate of giving away money and recommend it before any other financial decision including saving for retirement and establishing emergency funds.  Similar to spending money, giving supports those around us and is an investment in our community when done wisely.  Even for yourself, giving is beneficial as it allows you to prioritize more important things in life ahead of money by making you realize money is just an optional tool that we can use towards our goals.  If you really think about it, money has no direct value to you unless you are out of wood to burn and need paper to start a fire.

Joining the Giving Pledge

I remember as a kid wondering why it was so hard for rich people to give money away.  When I had $10 in a shoebox, I didn’t mind giving $1 away to help others so why couldn’t someone with $10 billion give a way $1 billion.  As I grew older and my wealth increased from $10 to $100 to $1000s, I began to realize how a modest percentage like 10% became hard to give away.  As the numbers get bigger, it’s hard for you to stomach the idea of giving that much away.  This is what makes Buffett’s ambition to get the wealthiest people in the world to give away at least 50% of their wealth so amazing.

Lately, Warren Buffett’s example and hard work has paid off (literally) as forty of the richest people in the world have joined his pledge.  The Giving Pledge list includes well known names like Ted Turner, George Lucas, and T. Boone Pickens among lesser known billionaires like Alfred E. Mann.  On NPR this week, Mann acknowledged that giving his money away is better than leaving it to his family since an inheritance often ruins people.  He also said that he hopes to give it all away before he dies so that he can see the benefit of his donation.

What’s Your Pledge

As more and more of the world’s wealthiest commit to giving away their wealth, I’m curious how much of the rest of us will follow suit.  It’s easy to say that these rich people still have plenty to live off of and that’s true, but at the same time, they may be the people most attached to their money.  If everybody who wasn’t a billionaire even pledged to give away 10% of their income, that would have a much greater impact on our world community.

So what do you think?  Do the non-billionaires have the ability to join the Giving Pledge or are we too attached ourselves.  Let me know your goals on giving and how it impacts your life in the comments below or on Facebook.

What to Know About the US National Debt

A reader asked recently, “What is national debt? It seems both complex and simple. How will it affect the future?”

Indeed, the US national debt is a complicated issue and this is evident in how the nations top economists continue to debate the significance of our debt and its impact on the nation.  As the US national debt continues to swell, many people are seeking to understand the issue better.  Here are some basic principles and strategies that should set your foundation for understanding the subject.

Types of US Debt

The US national debt can be looked at in two main ways.
First is the “public debt.”

  • Public debt can be viewed as the actual amount of money the US owes through loans to individuals, groups, and governments.
  • This is what the government pays interest on right now.

The second type is “gross debt.”

  • Gross debt includes future obligations like Social Security.
  • Although future obligations may be covered by future taxes, current tax rates will not bring in enough revenue to cover them.

Today’s public and gross debt levels relative to the size of the US economy (GDP) are higher than they have been since WWII.  This has happened since the Iraq invasion around 2003 and can be largely attributed to the post 9/11 economy and recent “Great Recession.”  Entitlement spending (Social Security, Welfare, Medicare) has also had a significant impact on the rising gross debt as population growth has slowed and the ratio of people on entitlement programs to those paying for it has increased.

How the US Debt Will Impact Us

As obligations increase, the US government must continue to raise interest rates so that investors are willing to loan the US money.  Alternatively, taxes must increase across the board.  Either scenario can be harmful to the economy and thus limiting job opportunities and people’s ability to spend effectively.  This creates a few potential problems.

  1. As the US government increases interest rates to raise more money, investors may move money out of corporations leading to more government power and inflation.
  2. As interest obligations to debt holders increase, taxes are no longer used to improve the country but instead go to other nations.
  3. If a decrease in infrastructure programs happens before a decrease in entitlement spending then taxes become less and less an investment in economic growth and more of a temporary solution to support those in need.
  4. American companies are considered more risky as the US debt increases causing prices to rise which creates inflation.

What You Can Do

As time passes, the US will either have to cut programs or increase taxes to pay for the problems.  Simply increasing debt is not exclusive of these options since it will increase interest payments which decreases the amount of money going to programs.  Even if the government never goes bankrupt, its power on the international scale will diminish slowly over time making living in the US less of an advantage.  Here are some strategies you can consider to be prepared.

  1. Be thankful that you live in a great economy that provides you with many more advantages than other places.  How many people honestly are completely independent from everything else?  Even if our country one day fails us, we’ve been very blessed until now.  You have to appreciate the benefits along with the losses.
  2. Get financially sound in case you’re required to live on less.  Practice the basics like saving for an emergency, spending less than you make, and investing in yourself.  For more frequent advice, read some good financial blogs like MoneyCrashers.com or ChristianPF.com
  3. Vote for politicians whom you believe will best spend your taxes for the good of the country.  Tell your friends to vote for them too.
  4. Lose your dependence on money by giving some away and seeing it as a tool for other things.  When possible, find ways to enjoy life and make a difference without needing lots of money.
  5. Look outside.  Even when the stock market drops the sky is still blue (or gray but I don’t think there’s any relationship there).

Have your own question to submit?  Submit your time, money, or fun question here and get it posted on the Obsessed Analytic blog.  If you have any thoughts to add, then share with others in the comments below.

This post is featured in the Carnival of Personal Finance Edition #270.

Should I Worry About The Expiring Bush Tax Cuts

It’s always funny to watch people get jumpy over a fifty-cent coupon on their next pizza purchase and then not worry about the fact that their largest expenses (taxes and healthcare) may change by thousands of dollars one year to the next.

People definitely delight in the occasional saving.  It’s a personal “win” and makes you feel like you beat the system.  However, if your goal is to use your money a little more effectively, it’s worth knowing the impact of political changes so that you can react (and vote) accordingly.

What Are the Bush Tax Cuts

For starters, the tax cuts passed in the early 2000s had a few significant impacts.  Based on 2010 brackets here are the noteworthy numbers versus pre-Bush tax levels.

  • You will save 5% on the first $8375 you make (~$419)
  • Plus 3% on income over $34,000 (another $480 for someone making $50K)
  • Plus $500 per kid (raised child credit from $500 to $1000)
  • Plus 5% on stock gains and 25% on dividends

Remember that your taxable income is far less than your salary.  Just for breathing, the government exempts $3,650 (personal exemption), and because the government knows your a generous giver they assume you have at least $5,700 in deductions (granted if you have more you can deduct that too).  So to be taxed as a $50K earner you would really need to make at least $59,350.

What You Can Do

Nothing. It’s politics. Or stop having kids just to get the child credit (I’ve heard they cost more than $1,000 per year to raise anyway).

No, actually there are some worthwhile moves.  First and foremost, be knowledgeable.  If the tax cuts don’t get extended, you (the average American) will likely bring home $400-800 less in income next year.  For those of you who simply spend the amount of money in your bank account each month, you will be fine but you will end up buying less and continuing your saving achievements of zero.  If you have a budget on the other hand, you may need to make some minor tweaks, but you should be ok.

Second, read the news.  The Democrats basically control the situation right now in D.C.  They want to raise taxes but don’t want to mess with people making under $200K.  If that’s you, then you’ll likely see no changes in taxes (healthcare is another issue).  If you make more than $200K then be afraid, kinda afraid.  Your taxes will likely increase by a few thousand dollars and your inability to lavishly spend, donate, or save like you used to may hurt the economy, but that’s up for debate.

Sigh of Relief

So it looks like the pending doom of slightly higher taxes won’t hit/hurt most of us, yet.  Larger concerns for your immediate finances are healthcare changes, but I’ll save that discussion for next week.  Do be aware that the national debt is swelling quickly and the long term impact is unknown.  Even if taxes don’t go up this year, they will go up eventually.

Got a better question for me to answer?  Submit it here and I will forever thank you!

Photo Credit (alancleaver_2000)
Generous Information Sources

Where to Find Free Online Music

Ever since the inception of Napster over ten years ago, online and free music has been the pursuit of people everywhere. The rise and fall of various music-sharing sites and complicated legal battles has made the process of gaining unbridled access to all your heart’s content of music a difficult undertaking.  Thankfully, the music industry is slowly warming up to free online music discovery, and below are great places to start when you want to hear your favorite song for free legally.

Free Music Online

There are a number of great sites for hearing free music online, but most limit your access to songs you own or offer random playlists of songs you may like.  One site that rises above the rest in its ability to provide all the music you want is Grooveshark.  The ad supported Grooveshark website offers full access to any song you can think of along with the ability to set up a playlist, skip ahead in songs, and listen to radio stations featuring music you like.  Although you are not able to download music directly to your computer, you should find Grooveshark as a great way to access the music you want for free.

Free Music Discovery

Another type of useful online service is music discovery.  Pandora is the most well know music discovery website and offers music lovers of all types the ability to create a custom radio station.  To start, you just need to submit a song you like and Pandora plays similar music.  Thumbs-up and thumbs-down buttons then allow you to identify to the service what you really enjoy and the service can then better target new music for you to hear.

Mobile Access to Music

While free online music is slowly becoming a reality, the ability to access that music on the go has been significantly limited.  Music discovery services are available though and come as apps on popular phones like the iPhone, Blackberry, and Android phones.  Similar to Pandora, a service called Slacker offers a list of popular music styles to choose from in a radio format.  If you are really desperate for an unlimited catalog on your phone then check out Rhapsody.  While the service will set you back $10/month, you will be able to hear any song you want, whenever you want, and wherever you want.

Any other services you recommend?  Let others know in the comments below.

Find Pandora Radio on AppStoreHQ.
Best iPhone apps at AppStoreHQ

Find Rhapsody on AppStoreHQ.
iPhone apps at AppStoreHQ

Program a Comcast DVR Online

I recently received an invitation to start using Comcast’s new online DVR scheduler.  The myDVR manager from Comcast finally provides a service that AT&T U-verse and Tivo users have long held dear, and until now, the missing service had been another problem in the string of complaints about Comcast.  Thankfully, the service is here and next time you’re stuck in a meeting or bank robbery you can be confident that the overdone ESPN episode of an over-glorified NBA player’s free agent signing is available for viewing later.

Getting Started

  • First, you must be a Comcast High-Speed Internet User
  • Have your Comcast.net username and password
  • Have a Comcast DVR (service in your area may or may not be ready)
  • Any internet browser should work but Comcast only lists IE and Firefox

Go to www.fancast.com/mydvr and follow the links to activate your myDVR service.  You’ll be taken through a few pages to sign in and check availability in your area.  Finally, you’ll choose to activate your DVR which may take up to 24 hours.

Using myDVR Online from Comcast

Using the myDVR Manager online is very simple and easy to use, and Comcast will enjoy getting more visitors on their fancast site.  On the site you’ll find a TV guide similar to what you see on your TV.  You can look up shows by channel and time plus filter by popular groups like Movies, Sports, and HD.  Once you find a show you want to record, select it and then click “Record Episode” or “Record Series”.  Next you will find an interface similar to that on your DVR box where options on how often to record and what to keep are available.  The myDVR Manager button (below) is always available and lets you manage the priority of shows and see what upcoming recordings you have.

Mobile Access to myDVR

Best of all, the Comcast myDVR service is available via the Comcast Mobile app on the iPhone and iPad.  The app has a guide similar to the one online where you select the shows you want to record and then “Schedule a Recording”.  The mobile services are essential to making this service great and have been executed well.  I can’t believe I’m thanking Comcast for something, but this is a service I plan to use.  What about you?  Let other readers know in the comments below.

Find Comcast mobile App on AppStoreHQ.
iPhone apps at AppStoreHQ