If you have excellent credit, the chances are you already know it. You always pay your bills on time, and you are very unlikely to carry a balance on your credit cards. In return for your responsible nature, you are deluged with offers for more credit cards. Overwhelmed and disillusioned with all of these choices, many of you are content to remain loyal to whichever card you had been using for years. It’s easy, comfortable, and hassle free to use the same card in perpetuity. But by doing so, are you betraying the sound principals of financial management that earned you your excellent credit score? (See also: Surprising Things That Can Kill Your Credit)
Those with excellent credit are likely to be using their cards simply as a method of payment, and they may be earning some additional rewards. Nevertheless, this practice is akin to storing money in a bank for safekeeping, without concern to the returns being accrued on your investment. The reality is that like savings, credit card spending should also produce a competitive return. Although saving is always a preferable activity to spending, those with excellent credit are leaving money on the table by not attempting to maximize the returns on their credit cards.
The best way to compare credit card rewards is through the percentage of value earned per dollar spent. For example, 1% cash back is the bare minimum that you should expect from any reward card. If you are earning that amount or less, it is as unwise as closing on a mortgage with a higher APR that what is available. The two most common ways to earn credit card rewards are in the form of cash back or loyalty points such as frequent flier miles. If you are earning points or miles, you should assign a value to them in order to assure you are receiving the returns you deserve. The more value you earn per dollar spent, the better you are doing. Finally, there are a few cardholders who do have excellent credit, but may carry a balance from time to time. These people should always carry a credit card with the lowest APR on the market.
Each of the cards on this list are only offered to those with excellent credit, but they offer very high rates of cash back or points. The exception here is the Simmons First card, which as the card with the lowest interest rate on the market, is the best choice for those who carry a balance. There is no one card that is perfect for everyone, but each has its unique advantages that appeal to different types of cardholders.
Fidelity Investment Rewards American Express Card
At the top end of cash back rewards cards are those rare products that earn 2% cash back on all purchases, all the time. Fidelity offers several versions of its American Express card that do just that. In this case, the cash back is returned to the Fidelity account of your choice, such as a Fidelity IRA, Fidelity-Managed 529 Account, Brokerage Account, or Cash Management Account. There is no annual fee for this card and only a 1% foreign transaction fee.
Click here to apply now
Capital One Venture Rewards
Capital One offers this card only to applicants with the best credit scores. By using this card, customers can earn two of their “miles” for each dollar spent. Fortunately, their miles are not like those of any airline; they can be redeemed for one cent each towards a statement credit against any travel related expense. The end result is that this card consistently returns 2% cash back as statement credits so long as the cardholder can claim at least that amount in hotels, car rentals, or airfare. There is a $59 annual fee for this card that is waived the first year, and like all of their cards, there are never any foreign transaction fees.
Sapphire Preferred From Chase
Chase has been making an all-out effort to court those with excellent credit histories, and the Sapphire Preferred has quickly become their flagship product. Chase offers a single Ultimate Rewards point per dollar spent on most purchase, with double points for spending on travel and restaurants. Triple points are earned for spending on travel through their Ultimate Rewards site, and all points earned are eligible for a 7% bonus at year’s end. Once earned, points can be redeemed at a rate of 1.25 cents each towards travel, or one cent each towards other experience and merchandise awards. Finally, Ultimate Rewards points can be instantly transferred to points or miles in the program's several different airlines and hotels. In fact, you can even transfer points to other people’s accounts, a feat impossible with most other programs. There is a $95 annual fee for this card that is waived the first year, but there are never any foreign transaction fees. Finally, this card is made of some type of plastic and metal sandwich giving it a heavy, solid feel that always draws comments when I use it.
Simmons First Visa Platinum
Not everyone with great credit is in a position to pay all of their credit card balances in full each month. Cardholders with near-perfect credit who occasionally carry a balance should do so on the card with the lowest standard interest rate on the market. The Simmons First Visa Platinum offers an APR equal to the Prime Rate plus 4%, the lowest rate that I am aware of. There is no annual fee for this card, but there is a foreign transaction fee of 2%.
Starwood Preferred Guest Card From American Express
Here is the card for those who understand and appreciate the value of hotel points and airline miles. The Starpoints earned by this card can be redeemed for any available standard room at any Starwood Hotel, including Sheratons and Westins. These points are extremely valuable because there are no blackout dates or capacity restrictions in the program. Alternatively, your Starpoints can be exchanged for miles in the programs of thirty different carriers around the world. Since each of those carriers can have dozens of partners, the award options are nearly limitless. Redeem your points for miles, and use those miles for premium class international travel, and it is easy to see returns of 5% or higher on each dollar spent. There is a $65 annual fee for this card, and American Express does charge a 2.7% foreign transaction fee.
If you have excellent credit and you are not getting at least 2 cents in value for each dollar spent, or the lowest interest rate on the market, you need take a serious look at the cards on this list. As a smart consumer with excellent credit, you should always be receiving the highest return on not just your savings, but on your spending as well.
Note: Some links contain affiliate codes.
The short month of February is here, but don't worry — 2012 is a leap year, which means savvy consumers will have one extra day to cram in more deal-shopping! Check out our list of the best and worst things to buy in February, which we've compiled after analyzing the extensive dealnews archives full of sales, coupons, and individual products from years past. If you're curious about Presidents' Day sales, gifts for Valentine's Day, or prices on electronics, outerwear, and more, then read on. (See also: Shopping Calendar: The Best Time to Buy Anything)
Since this is the time of year in which jewelry, flowers, and perfume are in their highest in demand, it's not surprising that shoppers probably won't get the best price possible on these items; perfumes, for example, generally see better discounts in late February after Valentine's Day and March. That's because there's less incentive for retailers to offer truly great deals on these items when they're selling so well due to circumstance. Try buying your sweetheart a less routine Valentine's Day gift in a category that's more likely to see a fair discount.
The best part about a holiday weekend isn't necessarily the day off, but rather the inevitable sales. You can expect quite a few Presidents' Day sales during the 3-day weekend that will take as much as 80% off on a plethora of apparel, as well as tools, bedding, and furniture. Some retailers tend to offer deeper discounts on existing sales, while others will lean towards modest coupons (likely an extra 20% to 30% off) that are applicable sitewide. Look to clothing and department stores for a big Presidents' Day sale push.
Rumors continue to swirl about the release date of the iPad 3, and many folks believe that it will be announced at the end of February. If that is indeed the case, then we'll likely see immediate markdowns on refurbished iPad 2 units sold by Apple, as well as substantial cuts on new devices from resellers.
We mentioned in our January guide that, as new electronics unveiled at the Consumer Electronics Show (CES) begin to hit shelves, retailers make room for them by offering discounts on old stock. This effort continues in February, and includes markdowns on electronics like GPS units and audio equipment — the latter of which we've already started to see excellent deals on.
Common logic dictates that we'd similarly see the best deals of the year on digital cameras during the month of February, as retailers clear camera inventory post-CES. However, our deal archives paint a different picture. Although we've seen some excellent bargains during the month of February, these discounts and promotions have paled in comparison to November and December in terms of Editors' Choice-caliber offers. In the past two years, both of these later months have each seen roughly four times as many top deals than February.
We mentioned in our January buying guide that winter apparel was beginning to see its greatest discounts of the season, and these sales will continue through February, though typically the selection is less robust. But that might not be the case if you're looking specifically for a winter coat, as the mild season has reportedly left retailers with massive amounts of unsold inventory, therefore making this perhaps one of the best years to get a deal on a late-in-the-season coat. If you've been putting off replacing your tried-and-true wool or down coat, February and March will be excellent months to snag a deal.
Since snow has been hard to come by this winter, the number of travelers booking trips to ski resort towns has been unusually low. Although numerous locations recently received a fresh dusting of powder, the ski season has been damaged due to mild weather. We've already seen an influx of special skiing discounts on vacations and hotels in ski towns like Keystone, CO, Salt Lake City and Park City, UT, and more, as they try to salvage a weak tourist season.
Throughout the year we tend to see daily deal sites discount bulk movie tickets, and cinema chains often offer promotions for ticket sales as well. But strangely enough, these types of movie deals have largely been a miss in February for the past two years; in February 2011, we didn't see a single deal for discounted movie vouchers, and in 2010, we only saw an offer from AMC to watch a marathon of the Oscar-nominated Best Picture nominees. The scarcity in February is maybe a fluke (for two years in a row?), or perhaps theaters actually believe the upcoming Academy Awards is enough of an impetus for consumers to get into their seats. Either way, there's a chance that avid movie goers may have to pay full-price this month.
Unfortunately, the head-turning deals we saw on 42" LCD HDTVs in November and December came to a quicker-than-expected end in January as prices on name-brand and third-tier 42" sets jumped back to their pre-September averages. Likewise, 55" 3D LCDs slowly made the transition from $999 back to $1,337. But that doesn't mean TVs should be off your radar just yet.
Big-screen TVs — those in the 55" and 60" category — are still coming in at aggressive price points. Deals on 55" name-brand LCDs, for instance, hit $800 in December and $700 in January (the lowest price we've seen for a 55" name-brand LCD TV since this summer, when we saw a Toshiba drop to an astonishing $559 for less than an hour). That means we could see better or equal deals on these sets trickle into February, especially as new CES models begin to enter the market. Name-brand 60" sets hit an all-time low of $800 in November, and while we haven't seen that price point since, we have seen LED-backlit sets (also name-brand) in recent weeks that hover around the all-time low price of $970, giving us hope of seeing similar deals in February.
Fully-equipped desktop replacements (those with 17" screens, Core i7 CPUs, and 8GB of RAM) are still enjoying all-time lows. During the past three months, we've seen deals on these 17" premium systems hit $800 — a price we've never seen before. Dual-core 15" laptops, however, have gone up in price, slowly reaching their pre-holiday average of roughly $330.
Shoppers should also keep an eye on ultrabooks, one of the hottest trends at CES this year. As these super-thin laptops begin to hit the market in greater numbers, they could potentially lower the price on other 12" and 13" laptops.
Ready to put this information to use? Set up an email alert to know immediately when Dealnews lists the items of your choice.
This is a guest post by Dealnews.
Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on how to throw a fun and frugal Super Bowl Party, encouraging nutrition in your family, and naming a guardian for your kids.
How to Throw a Fun & Frugal Super Bowl Party — Make your Super Bowl party a success by hitting up the Dollar Store. [Quizzle Wire]
12 Things You Can Do to Encourage Better Nutrition in Your Family — To encourage better nutrition in your family, keep healthy snacks within reach. [Parenting Squad]
Naming a Guardian for Your Kids — When naming a guardian for your kids, realize that no one will be perfect and you have to make the best choice available. [Free Money Finance]
How-To: Determine If You Can Live On One Income — Determine if you can live on one income by re-calculating your housing costs. [SavvySugar]
The 16 Best Part-Time Jobs With Benefits - Updated for 2012 — If you are looking for a great part-time job with benefits, check out Kaplan or JCPenney. [PT Money]
5 New Tax Lessons for 2012 — This tax season, give yourself plenty of time to file your taxes. [Fiscal Fizzle]
6 Things You Might Not Know About Your Home Equity Line of Credit — Did you know that taking out a home equity line of credit can hurt your chances of getting a loan or mortgage with another institution? [Financial Highway]
How to Ensure Positive Changes Turn into Lifelong Habits — To make sure your positive changes turn into lifelong habits, be able to forgive yourself. [Ready For Zero]
5 Pitfalls to Avoid to Achieve Your Life Goals — Achieve your life goals by avoiding the pitfall of settling for less than you want. [Life Optimizer]
3 Healthy Ways to Satisfy Your Cravings — If you are craving something sweet, opt for dark chocolate. [Pick The Brain]
Money Crashers Tweetchat (#MCchat) — Don't miss Money Crashers weekly tweetchat at 1pm PST! They will be giving away prizes!
Be sure to check out our News & Events Calendar to see all the awesome upcoming events in the personal finance world!
When it comes to credit scores, we're all very familiar with the damage a late payment can do to your credit "worthiness." We also know that having too much debt is bad as is having no credit references at all.
But surely that can't be all that affects your credit score, right?
The truth is, there are several things that can tank your credit, some of which just might surprise you. (See also: 6 Credit Card Services You Don't (Usually) Need)
When you apply for a new credit card, you expect an inquiry to show up on your report. This is known as a "hard" inquiry, and too many of these within a 12 month period will lower your score.
But filling out that Visa application isn't the only way to generate a hard inquiry. If you use a debit card when you rent a car for example, many rental agencies will check your credit before approving the transaction, and since few of us read all the fine print, you may not realize it's happened until it's too late.
Likewise, opening a new checking account will also typically generate a hard inquiry (even though you're not applying for credit) as will applying for new phone service and — surprise! — requesting an increase on an existing account. Unfortunately, many consumers assume that credit card companies simply look at their own payment history to determine approval for increases, but the fact is that your existing creditors are monitoring your credit score on a regular basis.
Now, only the hard inquiries generated by a request for an increase will ding your score — those periodic "checkups" are considered soft inquiries and don't cause a penalty. But that doesn't mean that they can't still hurt your credit, bringing us to the next item on this list...
When a creditor approves an application for credit, they will continue to monitor your score to ensure that your credit worthiness doesn't change. And again, these soft inquiries don't count against you. But should the creditor decide that you no longer meet their requirements, they can lower your credit limit or worse, close your account. By the time you realize it, the damage has already been done.
Your credit score depends greatly on the ratio between how much credit you've used and how much you have available. So, if you have an account with a $2,000 balance for example, and you've charged $400, then you've used 20% of your available credit, and anything up to 30% is considered to be responsible credit management.
But let's say that the credit card company decides that you no longer meet their standards and as a result, they lower your limit to $250 (yes, they can do that — I speak from experience). Now, instead of having a credit ratio of 20%, you're suddenly maxed out as far as your credit report is concerned, and your score will drop considerably as a result.
If they decide to close the account instead (yes, they can do that too), you not only suffer the ding for a high credit utilization ratio, but you also lose the benefit of that available credit once you've paid the balance off. Remember, your utilization ratio is based upon your total credit available, so when an account is closed, it reduces the amount of credit you have access to. And the less available credit you have, the higher your utilization ratio will be.
This is also the reason that financial experts discourage balance transfers. Debt-conscious consumers will often transfer their credit card balances to a new card with a lower rate, thinking that they're making a smart move, but this can actually have an adverse effect on your credit.
Not only do you suffer the ding for a hard inquiry to secure that new, lower-rate account, but you'll also skew your utilization ratio if — like many consumers do — you close those higher-rate accounts after the balance transfer is complete.
Let's say for example, that you have two cards, each with a $1,500 limit and a $200 balance. That gives you a utilization ratio of about 13% ($400 used / $3,000 total available). Then let's say that you get a new, lower-rate credit card with an additional $1,000 limit, and you shift your $400 outstanding balance to that new card. You now have a credit utilization ratio of just 10% ($400 used / $4,000 total available), but the minute you close those two older accounts with the higher interest rates, your ratio goes down the tubes.
Instead of having $4,000 in available credit, you now only have $1,000. Your ratio goes from an impressive 10% to a whopping 40%, and that's bad, bad, bad.
Many consumers think that any kind of credit is good, and for those trying to rebuild their credit scores, getting approval on in-house financing plans might seem like a step in the right direction.
Unfortunately, that's not the case.
These "local" finance plans — like those you see advertised by furniture stores and car dealerships — are considered to be "second class" credit...that is, credit for those who can't get it anywhere else, and this makes you look like a high risk to potential creditors.
In addition, because these in-house programs don't issue you a revolving limit, your available credit is typically the amount of your purchase. So, when you finance $1,000, it appears as a maxed-out account on your credit report and affects that all-important utilization ratio we were talking about before.
When it comes to late payments, it's not just your credit cards that you have to worry about. Those old library fines, parking tickets, and unpaid balances on your book club can also hurt you if the company decides to use a collection agency to resolve the account.
And once the collection hits your credit report, you and your score are stuck with it for seven years.
After having a few bouts of credit card debt in my early twenties, I swore I would only pay cash for my stuff and never use a credit card again. But knowing the importance of having credit, I kept a few accounts open and just locked the cards away. I thought I was being smart... I thought wrong.
When you don't use your credit — as in, ever — there's no payment history for potential creditors to evaluate and after an extended period of time, your creditors may close your account because of inactivity, both of which can make it harder for you to secure credit when you need it.
In addition, if you do ever decide to use one of those cards, you may find that your purchase is declined because it's outside of your "usual" spending habits. Of course, this can be resolved, but not without some embarrassment as you step out of the checkout line to call your credit card company.
Managing and protecting your credit score is most certainly a pain, but it's a necessary one. Use your credit, but use it wisely, and always ask about credit checks before securing new services...even (and especially) when those services seemingly would have nothing to do with your credit.
But most importantly, monitor your score. The only way to know what's being reported is to check it yourself and then dispute any information that's incorrect.
Although potentially life-changing, there are two things that most people hate doing — dieting and budgeting. Whether it’s weight loss or a better financial situation that you seek, neither task is easy, they’re often frustrating or boring, and it tends to take quite some time before you see significant results. With budgeting, it’s more about crunching numbers than crunching abs, but if you hate math or just planning in general, there are several ways to make this important task more exciting. (See also: How to Spend Less Without Starting a Budget)
Your first step to better budgeting is finding a motivating factor that will keep you surging onward even in the face of boredom. I used to dread budgeting too, but after printing up pictures of things I would like to have or do (travel, new laptop, etc.), I noticed a substantial boost in my enthusiasm level. Having these pictures (or just visualizations, if you prefer) with me constantly — on the refrigerator, in the car, on the bathroom mirror — was helpful in keeping my mind focused on the goal at hand. We don’t live in a fantasy world, though, so in order to achieve our goals, we need to put in a little (or a lot of) effort along the way. Visualizing or seeing your goals in pictorial format serves as a constant reminder why you’re planning out your financial future in the first place. If you need an extra "kick," then perhaps keep a diary or start your own blog to keep track of your process (again, keeping you continuously focused on the end goal).
The Budgeting Babe has an excellent list of budgeting blogs on her website. Check out some of the blogs listed to help you kick-start your own foray into the realm of numbers and dollar signs. And consider starting your own blog or diary (or discussing your budgeting goals with a trusted friend or spouse) to keep yourself accountable for your financial situation, and thus, more likely to succeed.
Now that you’re motivated and being held accountable, let’s get down to the actual process. All work and no play makes one a dull budgeter. Challenging yourself to spend under $___ amount in a given category each month can get your mind off the mind-numbing calculations and more engaged with the goal of saving money. If you “win,” then at the end of the month, go out and splurge a little as your reward. Just as the dieting process is nearly impossible for most people without a break (comfort food!), budgeting will grow old very quickly if you don’t reward yourself for milestones along the way.
Furthermore, there are some websites and smartphone apps that can help you compose your budget in the form of colorful pie charts, which are more fun to work with and look at than just a plain spreadsheet. Two of the best websites for this process are Mint and PearBudget.
Again with the dieting references, “crashing” your way through this mildly unpleasant task is not going to work. In order to maintain a suitable level of drive and succeed in creating a functional budget, you ought to take things in little steps. Phase unnecessary expenses out slowly and factor in a savings category as your excess income builds up over the course of time. Also, fewer categories will help — not only does this mean there is less to keep track of overall, but it decreases the amount of time you’ll need to spend pouring over spreadsheets and bill categorization. Speaking of bills, having as many online payments as you are comfortable with can speed up the initial formation of your budget, producing a low-maintenance, almost-automated system to help guide you through your finances in the future.
Budgeting isn’t difficult unless you make it so. Take a personal finance class or read blogs if you need added help (coming to Wise Bread is a fantastic start!). With proper planning (with fun elements thrown in), you will have a budget up and running in no time.
Tell us about your budgeting tips in the comments below.
Welcome to Wise Bread's Best Money Tips Roundup! Today we found some great articles on cheap ways to feed a family of 4, moving up the corporate ladder, and reasons to use your credit card.
Cheap Ways to Feed a Family of 4 — Feed your family on the cheap by preplanning your menu. [American Consumer News]
Move Up That Corporate Ladder — Move up the corporate ladder by offering assistance to everyone. [Bucksome Boomer]
8 Reasons To Use Your Credit Card — Use your credit card to take advantage of cash back programs. [The Wisdom Journal]
Write Off Your Charitable Donations. You Earned It. — Don't forget to write off your charitable donations on your taxes this year. Be sure not to lie about the value of what you donated though, it's against the law to do so. [Thousandaire]
7 Best Part-Time Jobs Anyone Can Start — Looking for a part time job? Consider blogging! [Christian PF]
Quick, Easy Access to Medical Advice — Get quick access to medical advice by checking out the Mayo Clinic's symptom checker. [Parenting Squad]
7 Things You Should Do This February — This February, set a date to see your tax person. [SavvySugar]
5 Health Practices to Include in Your Routine — Be sure to include drinking more water in your routine. [Personal Dividends]
Saving For Your Kids College Costs — Keeping your kids close in age can help when it comes to saving on college expenses. [Cash The Checks]
30 Ways Your Company Is Wasting Time — Your company may be wasting time by having unclear company goals. [Time Management Ninja]
Wise Bread Tweetchat (#WBChat) — Don't miss our weekly #WBChat at 12pm PST! We will be giving away prizes!
As a career-services provider, I have developed resumรฉs for high school seniors to accompany their college applications. Much of this work involved organizing innumerable details of a laundry list of activities, highlighting academic and extra-curricular achievements, and demonstrating leadership skills.
Now, as the mom of a high school senior, I have a different take on the high-school resumรฉ. While learning about the college-application process, I discovered that this document was not supposed to remake my nearly adult child into the most stellar applicant ever (though, certainly, there are students who reasonably have such a goal) but to show who he is. More precisely, its purpose is to shed light on how he spent his time, what novel and difficult situations he encountered, and what he valued (evidenced by how he allocated his hours in high school), whether in sync with his parent's desires or not.
So, I'll share with you the specifics of what I learned, hoping to relieve some stress and improve your productivity during your senior year. (See also: Great Ways to Improve Your Resume Today)
The best reason to put together this type of resumรฉ is to capture what’s relevant about your high school career in order to help you develop your applications to colleges, universities, or technical schools. Specifically, you will use this information for the following reasons:
And, unlike most types of resumรฉs, the main purpose of this document isn’t to win a job interview or land a job. However, those who may be pursuing work-study arrangements, a part-time job, or an internship can make adjustments to emphasize work experience, entrepreneurial ventures, and freelance activities.
The guidance counselors at your school probably have a form for you to complete or an example to follow. Use that as a guide to make sure you include pertinent information. Depending on your school’s requirements, complete the forms as requested, but feel free to create your own version of your high-school history (or take a look at this example resume I made). Typically, the major categories are:
When you are putting everything together, most of the information will emerge naturally. You’ll remember which years you played soccer or volunteered at the humane society, the fall seasons that you ran cross country or played in the marching band, and the dates that you were in the school play or were inducted into the honor society.
But other information may be tougher to bring forth, so take your time to recall as much as possible, whether you immediately consider an activity relevant or not. Ask your parents, friends, and grown-up advisors (like teachers, coaches, youth group leaders, etc.) about things you may be missing.
Some items, like your name and AP courses taken, will be easy to categorize and need no further elaboration. A few are straightforward, like your participation on the soccer or swim team. But many are more complicated, as certain activities could fall under more than one category plus need elaboration for readers to understand.
Place activities in the category that makes the most sense to you. For example, my son tutored elementary school kids during the off-season and worked on a Habitat for Humanity project as a part of an outreach program organized by the head football coach. Likewise, he completed service hours as part of membership requirements for the academic honor society. Rather than placing these items under “football” or “honors,” he classified these activities as community service.
Explain and elaborate on certain activities. Most people have heard of Habitat for Humanity, so listing the item is sufficient. But the two weeks that my son spent repairing homes and getting to know impoverished homeowners in rural areas with a lesser-known group can use some explanation. And special designations or leadership roles, even minor ones, need elaboration; that is, tell us if you were a photographer for the yearbook or the sports editor for the school newspaper.
Figure out and give time frames for each activity. Specify frequency and over what period of time. Be consistent with each activity, using the same types of references for all items (for example, list junior year or Grade 11, summer after junior year or Summer 20XX rather than a mixture of these formats). Many applications will request hours devoted to each activity, which can be useful but is not necessary for this type of resumรฉ.
Add or adjust categories that best reflect your activities and accomplishments, even if this means deviating from a standard format. For example, consider a heading for awards to list accolades associated with music, science, and scouting apart from academic honors; a separate section for these makes sense even if most people you know don’t have such a heading. Create an experience category if you have held a traditional job, run a side business, or earned money by providing manual labor for neighbors. If you'd like, add a personal statement so that you can have that information handy when you fill out applications.
Senior year should be fun. This mom's advice is to go ahead and put together the resumรฉ as early as you can so that you can move quickly but thoroughly through college applications.
What have you learned about writing a high-school resume? What worked best for you?
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This week's topic: Saving money on sports. Learn about saving money on tickets to sporting events, paying for premium sports channels, and getting good deals on sporting equipment. Share your tips on saving money when having friends over to watch the game, betting on games, and share with us what your favorite sport/team to watch is!
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New Parenting Chat Immediately Before #WBChat
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The good folks at the IRS might be as human as the rest of us.
Need evidence?
Check out this IRS agent's response to a couple of very tired parents from San Francisco:
We have reviewed your correspondence regarding the penalties that were charged based on your explanation that the 'adult brain turns to jello those first few months raising a baby', we have decided to remove all penalty charges. A total of $2,522.00 in penalty charges has been removed.
(story continues below the image)
This letter was originally posted on Erica Firment's Facebook wall on January 31, 2012. Erica has since provided additional background on Facebook:
What proceeded their response was my a very formal letter explaining the mistake and asking to forgive the penalties. However formal the rest of the letter was, I added an asterisk and this bit at the bottom: "* I am not above groveling and mentioning our only child was six months old when we made our extension mistake. If you have children, you understand the adult brain turns to jello those first few months raising a baby." (Source: ThatGuyChuck via Reddit)
What proceeded their response was my a very formal letter explaining the mistake and asking to forgive the penalties. However formal the rest of the letter was, I added an asterisk and this bit at the bottom:
"* I am not above groveling and mentioning our only child was six months old when we made our extension mistake. If you have children, you understand the adult brain turns to jello those first few months raising a baby." (Source: ThatGuyChuck via Reddit)
Erica, the founder of the popular librarian blog Librarian Avengers, was very pleased with the outcome.
"The IRS really surprised us with great customer service," said Erica on Twitter. "A human even picked up the phone immediately!"
"Our IRS letter just hit the top of Reddit. I think people are hungry for a human voice from government institutions."
Many people on Reddit are chiming in with their own positive experiences with the IRS. One Redditor claiming to be a taxpayer advocate from the IRS pointed out that it never hurts to challenge a tax penalty:
I actually work for the Taxpayer Advocate's Office, (which is part of the IRS) and I have to say that this is pretty awesome!! We get cases for all kinds of hardship reasons, and we fight for all taxpayer's, not just the ones who ask for our assistance. It makes me glad to see other employee's are doing what they can as well! I will share this info with the other Advocate's in my office, as I know they will get a kick out of this too. Also a tidbit for penalties-you can always ask for them to be removed. The worst they will say is no. The first time you get penalties, you can get them removed just because you have a good history and you asked. And if you ever need Taxpayer Advocate's assistance, call 877-ASKTAS1, or look at our website for your Local Taxpayer Advocate Office and maybe see some of the services we provide or check out our annual report to congress. (Emphasis added. Source: Mostlywrong via Reddit.)
I actually work for the Taxpayer Advocate's Office, (which is part of the IRS) and I have to say that this is pretty awesome!! We get cases for all kinds of hardship reasons, and we fight for all taxpayer's, not just the ones who ask for our assistance. It makes me glad to see other employee's are doing what they can as well! I will share this info with the other Advocate's in my office, as I know they will get a kick out of this too.
Also a tidbit for penalties-you can always ask for them to be removed. The worst they will say is no. The first time you get penalties, you can get them removed just because you have a good history and you asked. And if you ever need Taxpayer Advocate's assistance, call 877-ASKTAS1, or look at our website for your Local Taxpayer Advocate Office and maybe see some of the services we provide or check out our annual report to congress. (Emphasis added. Source: Mostlywrong via Reddit.)
Personally I've had pretty good experiences dealing with the IRS. When we first started Wise Bread, I had a lot of tax questions regarding the tax implications of setting up various legal entities. I called the toll-free hotlines at IRS and their representatives were extremely knowledgeable and courteous.
If you have general questions, here's a list of IRS numbers you can call (following info provided by IRS website):
Telephone Assistance When calling, you may ask questions to help you prepare your tax return, or ask about a notice you have received. Please be aware that when you conclude your discussion, our system will not permit you to return to your original responder.
Telephone Assistance for Individuals: Toll-Free, 1-800-829-1040 Hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).
Telephone Assistance for Businesses: Toll-Free, 1-800-829-4933 Hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).
Telephone Assistance for Exempt Organizations, Retirement Plan Administrators, and Government Entities: Toll-Free, 1-877-829-5500 Hours of Operation: Monday – Friday, 8:00 a.m. to 5:00 p.m. Local Time.
Telephone Assistance for people with hearing impairments: Toll-Free 1-800-829-4059 (TDD) Hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m. your local time (Alaska & Hawaii follow Pacific Time). For further information, see Tax Topic 102.
Telephone Assistance for Individuals who believe they may be a victim of Identity Theft: No Tax Administration Impact - Did not receive a notice from the IRS. Toll-Free 1-800-908-4490 (Automated and live assistance) Hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m. your local time (Alaska & Hawaii follow Pacific Time). For additional information, refer to our Identity Theft and Your Tax Records page.
Telephone Assistance for people who live outside the United States Hours of availability vary by location. Please see our International Services page.
Face-to-Face Assistance In certain areas, IRS also has local offices you may visit to receive assistance
What kind of experiences have you had with the IRS? Please share them in the comments!
Thank you to Redditor Missstar for helping with this story.
When it’s cold outside, all you want to do is stay inside.
I do, at least. I hate the cold weather. I live in New York City, but I long for Los Angeles. I say bring on global warming. Al Gore and Mr. DiCaprio will just have to deal with that statement.
In the winter, there are few things to do inside besides cook, clean, and watch movies. The problem is, the comfort food makes me fat, the constant cleaning makes me tired, and I’ve seen just about every movie playing On Demand that I want to see (plus, it’s not cheap).
Game night, however, is another way to pass the time (and have fun) while others are shivering their butts off on the slopes or whatever else people do outside when it’s below freezing.
Hosting a good game night isn’t an art form, but there are certain criteria you need to follow to ensure a great one. Here are my tips on making the night one to remember. (See also: 5 Fun Family Friendly Games)
Personally, I pick the games that we’re going to play according to the guests I’ve invited. Some of my friends are wordsmiths, so Scrabble may be in order, while others like video games. Even still, you may be inviting over guests whose preference in games you don't know. In that case, if you're unsure of the players' skill levels at certain games, choose games that are based primarily on luck, like Yahtzee, or at least have a wide selection on hand so the group can make the decision on what to play together. The point is, you want to choose games that everyone will have fun with — and have an equal chance of winning. Also, some games are good for small parties, like Scattergories or Taboo, while other games, such as Apples to Apples, are much more fun with a big group. I once played the latter in a group of 12 one Thanksgiving night, and I don’t think I’ve had so much fun or laughed so hard since then.
I’m a big fan of Evite. I like that it gives your gathering — large or small — a semi-formal feel even if it’s super low-key; it just seems more organized than an e-mail exchange. Your guests will know the time, place, and theme instantly, and they can visit the link at any time to find out the information, which means that you won’t have to field e-mails or phone calls asking for updates.
Don’t spend too much time in the kitchen on game night unless it’s dinner and game night. There are two reasons for this: 1) If you spend all day cooking for your guests, you’ll be tired by the time they arrive, and 2) it’s game night — guests expect junk food. Pick up some frozen appetizers, a few bags of chips, and soda, or order pizza or Chinese from your favorite restaurant. If you want your guests to pitch in on the food costs, let them know ahead of time in the invitation. I generally pick up the tab for the food, but I did ask my guests to pitch in $5 each for pizza and drinks for an Oscar party once. They weren’t offended at all, and I saved some cash.
Game night is never fun if it’s alcohol-free — at least for me. The fun and laughter (and ridiculous answers) increase when everybody’s had a few. Provide the booze yourself or ask your friends to BYOB; that's totally an acceptable request. Most of your friends will probably arrive with a bottle of wine anyway (a small gift is protocol when inviting someone to your home for an evening that would otherwise cost them more money than a bottle of wine), but suggest in the invitation that if they want something special, they should bring it. I always have liquor, mixers, and wine on hand, and I’ll pick up beer for a game night. Be sure to tell your guests what will be available, so they’re not left dry because they don't like what you provided.
There’s competitive, and then there’s over-competitive. I’m competitive — I enjoy winning — but if I lose, I don’t throw a tantrum. Nobody likes that guy who gets pissed because he lost. A night can go down hill very quickly if anyone in the party is aggressive about winning and not a team player. Game night should be an occasion to relax and have fun. Keep that in mind, and don’t be afraid to calm down a guest who may be on the edge. You’re in charge, so there’s no harm in reminding everyone that this isn’t a game show and there’s no pot of gold at the end. Likewise, just because you’re the host of the party doesn’t give you authority to make up rules in your favor. Play fair and honest and have an excellent time — especially if you ever want your guests to come back again.
Have other game-night tips to share? Let us know is the comments below.
It's best not to get in debt at all, of course, but it's easy to accumulate debt without even really thinking about it. Your parents and guidance counselors tell you that a first-rate college education is worth it "no matter the cost," so you sign the loan papers to borrow whatever the financial aid office says you need to borrow. (See also: Student Loans: How to Make Post-College Decisions)
Even if you have second thoughts before the end of the first semester, you're already on a path that's pretty hard to get off of. Because, after all, what are your choices? Aside from the option of being a deadbeat, which is pretty unappealing, you really only have one — proceed to get an education, get a job, and put in as many years as it takes to pay off that debt.
The deadbeat path is a poor choice, especially for student loans (which generally can't be discharged in bankruptcy, although there is a new program for eventually escaping student loan debt).
This is because your creditors have serious powers to extract money from you:
They can't technically have the police throw you into jail for not paying your debts — but they can have the police throw you into jail for failing to respond correctly to each and every item of paperwork when they sue you. And, since you can't afford a lawyer, that amounts to pretty much the same thing.
Does this amount to slavery? I think so. On the scale of historical forms of slavery, the level of violence is pretty low, but your freedom is severely constrained — you either do whatever it takes to make each and every debt payment, or your creditors will ruin your life.
There's only one good way to escape debt slavery, which is to buy your way out. If you earn a lot of money (or life cheaply enough), you can pay your debt down at an accelerated rate. This particular path makes a great story, because it's just an extreme version of the sort of "right living" that our culture supports.
The path is easy to describe, even if it's not so easy to do:
Better to avoid debt altogether, if you can.
Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on how to retire on the cheap, ideas to increase your income, and dangers of leasing a car.
Planning for Retirement: How to Retire on the Cheap — To retire on the cheap, make sure to take care of your body. [Credit Sesame]
5 Ideas To Increase Your Income This Year — Increase your income this year by turning your hobby into a money maker! [SavvySugar]
Four Hidden Dangers of Leasing a Car — Leasing a car results in you having mileage limits. [Five Cent Nickel]
Customer Service - How to Get a Refund Without Losing Your Dignity — Want to get a refund without losing your dignity? Remember to remain calm and follow return policies. [The Frugal Toad]
Is It Time to Find a New Job? 4 Signs It's Time to Quit — If you wish you had more challenging assignments at work, it's probably time to find a new job. [MoneyNing]
Why Credit Cards Beat Debit Cards — One of the reasons credit cards beat debit cards is because they offer rewards. [Free Money Finance]
How to Organize Coupons Effectively — When organizing your coupons, take into consideration organizing by need. [Moolanomy]
9 ways to make saving automatic — Make savings automatic by always using a credit card with rewards. [brip blap]
Time Management and Travel: How to Make the Most of the Journey — Make the most of your travels by going gadget free. [Stepcase Lifehack]
3 Alternatives to Traditional Baby Showers — Instead of having a baby shower, have a gender-reveal party! [Parenting Squad]
Get Rich Slowly #moolah Tweetchat — Don't miss Get Rich Slowly's bi-weekly #moolah tweetchat at 4pm PST!
Having a budget is one of the key ways to keep your finances in check. Budgets help you create a clear picture of how to live within your means. It's important to evalute your budget from time to time to make adjustments as income sources change and expenses fluctuate. Some people evaluate their budgets on a weekly or monthly basis while others do a budget check up once a year.
How often do you evaluate your budget? Once a week? Once a month? Once a year? When was the last time you evaluated your budget?
Tell us how often you evaluate your budget and we'll enter you in a drawing to win a $20 Amazon Gift Card!
We're doing three giveaways — one for random comments, one for random Facebook "Likes", and another one for random tweets.
If you're inspired to write a whole blog post OR you have a photo on flickr to share, please link to it in the comments or tweet it.
Good Luck!
As with most years, the upcoming big game sends consumers frantically dashing to the store to stock up on paper supplies, good eats, and spirits to indulge in. Even with the annual sale pricing on common staples like corn chips, sodas, and little weenies, it can be a financial drain to go all out for the event. Since many of the most frugal ideas are also more creative — and fun! — I’ve rounded up some expert tips to help you have the best blow-out without blowing up your budget. (See also: 45 Other Things to Do on Super Bowl Sunday)
Reminiscent of the fairy tale “Stone Soup,” this modern-day feast can easily accommodate as many guests as you can fit into your home and will likely get cheers from the crowd. Bjorn Karger, author of The Underground Guide to Living Frugal dishes on the details: “It needs everyone's help to win; just ask everyone if they could bring something to add to the stew. Have a simple broth going — water and a powdered soup-packet will do, or slice up an onion and add a few herbs and oil. Even with a small party of four to six guests you'll be surprised at how much food will come in and how fun it will be.” Ideas for ingredients guests can bring include potatoes, chicken, shrimp, okra, carrots, and even coconut and curry. Sounds like a fun and delicious way to bond!
If the idea of a hotel waffle bar gives you tingles, you’ll likely be the type to appreciate a grilled cheese station at your next Super Bowl party. The idea is simple — set up a table with an electric griddle, and lay out an array of unique ingredients to create one-of-a-kind grilled cheese sandwiches. Don’t forget to include five or more varieties of cheese, and remember that the thicker the bread is, the more filling (and affordable) the sandwiches will be. Not a grilled cheese fan? Put a twist on it by offering the same set-up for paninis or even quesadillas.
Is asking your guests to bring a side dish or even alcohol acceptable in today’s culture? Most definitely! Will it yield positive results? Not always. As many experts have pointed out, many people interpret the word “potluck” as “stop by the dollar store and pick up a few jumbo-sized bags of chips.” If you’re concerned that guests won’t put effort or creativity into their offerings, assign categories of food to people based on their last name (first letters of A-E bring one item, F-K another type, etc.) In any case, don’t depend on guests to provide the bulk of the food and drink; always have a main course and a substantial amount of non-alcoholic offerings to go around.
While most people assume that food will be the most expensive part of the party, drinks and tableware can be even more costly. Wona Miniati, co-author of the popular Cooking With Trader Joe's cookbook series, suggests starting simple where tableware is concerned: “Thrift stores are a great place to pick up one-off pieces. A collection of non-matchy-matchy plates and glasses can be cute and eclectic.” She also likes the idea of serving plain water with a selection of fancier garnishes like fresh citrus fruits, cucumber, or pomegranate seeds. For an affordable spritzer, combine one part juice with one part sparkling water.
With less than a week until the Super Bowl, it may be too late to use some of the more extreme tactics of coupon-clipping and ad matching. What tips do you have for making the big game gathering even bigger?
Most people are scared of investing because it involves risk. No matter how sure you are about a stock, mutual fund, or business opportunity, there’s always the chance that you could lose all your money.
And that’s scary.
So what if I told you there’s a way to invest with absolutely no risk? I can’t promise an exact return on the investment, but I guarantee it will always be positive.
It’s called investing in yourself.
I know it sounds cheesy, but when was the last time you learned something new made you a better employee or job candidate? Instead of trying to get rich by putting huge piles of your hard-earned money into a stock you think is going to go up, why not invest time and money into improving your skills and boosting your earning power? (See also: Best Investment: Yourself)
More skills can lead to a higher pay, more job opportunities, and added job security. Bonus — more skills also make you more interesting.
That sounds great, but how do you invest in yourself without going back to school and paying thousands of dollars for a degree?
Here are some ways you can invest in yourself to boost your skills.
Books are my favorite way of learning new things. Everything I learned about investing and personal finance I learned from reading books. I read everything I could get my hands on and became knowledgeable enough that I started my own site, The Writer’s Coin. I recommend I Will Teach You to Be Rich by Ramit Sethi to start.
When I started my site I did it because I felt I had something to say about personal finance. I had no idea it was going to teach me about networking, social media, SEO, entrepreneurship, CSS, and PHP, or that it would start to make real money for me. Bonus — blogging regularly will make you a better writer, and that’s an essential skill in the world today. Go to Wordpress.com and start your own blog today — it’s free!
Learn what an RSS fee is. Then start adding new sites to your reader, and you’ll stay up to date on whatever topic you’re curious about. This is how I injected myself into the personal finance blogosphere.
There's a course for anything you can imagine out there. Whether it’s a local class to learn how to cook or an online course about computer programming, if you can think it, I guarantee someone out there is teaching it. You’ll meet new people, learn new skills, and broaden your horizons. Thanks to the Internet you can learn pretty much anything you can think of. iTunes U has tons of cool courses for free!
The best way to become an expert on something is to have deep knowledge of it and then try to teach it to others. It works your brain in a totally different (and good) way. Plus you’ll meet some interesting people. Pick a sport/instrument/topic you know a lot about and teach your niece/nephew/child a basic concept about it — you gotta start somewhere!
This is easier said than done, but if your job requires a lot of travel or will be investing in another country soon, then another language might be essential. Tip — Duolingo is gonna be awesome.
Freelancing is a great way to get a taste of another job without leaving your current one. It’ll also teach you about handling clients, running a business, and marketing. Check out Craigslist or ask your friends if they need help with something.
Don't expect your boss to give you a raise simply because you can say "hello" in French. Be smart about which skills you tackle and how they fit into your career plan. If your company just signed a major client from France, then go ahead. If you're doing it because you like Paris, it probably won't have an effect on your value to the company.
Welcome to Wise Bread's Best Money Tips Roundup! Today we found some great articles on frugal dating tips for new couples, ways to make extra money, and dealing with financial uncertainty.
Frugal Dating Tips for New Couples — As a new couple, save money on dates by cuddling up for a movie marathon. [Moneyhacker]
101 Ways to Make Extra Money — Make some extra money by stuffing envelopes or being a caddy. [Planting Dollars]
Tactics For Dealing With Financial Uncertainty — When dealing with financial uncertainty, don't take on more debt. [20 and Engaged]
6 Things You Didn't Know You Knew About Taxes — You already knew this, but keep things simple when you are doing your taxes. [Parenting Squad]
5 Tips To Beat The Rat Race And Work From Home — Want to beat the rat race and work from home? Make sure you are good at time management. [Girls Just Wanna Have Funds]
A Step-By-Step Guide To Handling A Mistake At Work — If you make a mistake at work, start by assessing the damage. [SavvySugar]
12 Great Summer Jobs for High School Students — One great summer job for high school students to consider is tutoring. [Money Crashers]
Skating through the TSA checkpoint - quickly — Get through TSA checkpoints quickly by wearing slip on shoes and having your pockets empty minus a skinny wallet, boarding pass, and cash. [Practical Hacks]
20 Things to Start Doing in Your Relationships — Start staying in better touch with people who matter to you. [Marc and Angel Hack Life]
Grilled Cheese Sandwich in a Minute or Less — Save time when making a grilled cheese sandwich by making it in the microwave as opposed to the stove. [Money Reasons]
The Wealth Builder Carnival — Don't miss The Wealth Builder Carnival, featuring articles on building, preserving, and keeping enough wealth for a comfortable retirement.
Most people have a frequent flier account of some sort, even if they haven’t given it much thought lately. Others have made collecting points and miles not just their hobby, but their passion. While the rest of us sit in awe of extreme couponers when they save a few hundred dollars off of their groceries, these extreme mileage hackers regularly earn tens of thousands of dollars worth of travel. They fly around the world in first and business class, stay in suites at luxury resorts, and barely pay a fraction of what these services would normally cost.
I recently attended a weekend seminar where many of the top mileage collectors in the world gathered to tell their stories and share their techniques. Of all the travel award enthusiasts that I met, three people told stories of extreme mileage earning that were so mind-boggling, they held this well-traveled crowd at the edge of their seats. (See also: How to Maximize the Value of Your Frequent Flier Miles)
Have you ever done anything so cool that a Hollywood director decided to include it as part a movie? That is what happened to a Californian named David Phillips. In 1999, Phillips learned that the Healthy Choice company was offering a few hundred frequent flier miles for the purchase of each of their food products. He realized that by buying pudding, their least expensive item, the miles he earned would be worth more than the product itself. He ended up purchasing $3,380 worth of pudding from distributors across the state. As he ordered the pudding by the truckload, some distributors would ask what he needed it for. Slyly, would just mumble something about Y2K. Upon receipt of the pudding, he donated it to the Salvation Army, which in turn provided volunteers to help him process the paperwork. He thoroughly documented everything he did, making copies of his entire submission.
Although the people at Healthy Choice initially claimed not to have received his voluminous submission, they quickly relented in the face of his evidence, and even enlisted him in a publicity campaign. In the end Phillips earned over 1,250,000 miles from airlines such as American, Northwest, Delta, and United Airlines, as well as a tax deduction for his charitable contribution. This is enough for ten first class trips to Europe. If this story sounds familiar, then you have probably seen the movie Punch Drunk Love, where the character played by Adam Sandler does this exact same thing.
Another amazing speaker at this convention prefers to remain anonymous, but goes by his online pseudonym Mr. Pickles. In 2009, he achieved some measure of notoriety when an acquaintance of his spoke to a reporter and disclosed his obsession with ordering coins from the United States Mint. Although most people would find coin collecting is a perfectly normal past time, Mr. Pickles is no average collector. He enjoyed ordering the new commemorative one dollar coins which are only worth their face value. He used his credit card to place the order under their Direct Ship program, which offered free shipping in order to encourage the circulation of these unpopular coins. Upon receipt, he would immediately deposit the coins at a local bank and use those funds to quickly pay off his credit card balance. Doing so earned him frequent flier miles at no cost to himself.
So far, this story is not very remarkable. Many people, myself included, ordered a few thousand of these coins from the Mint to use around town while earning a few miles on our credit cards. On the other hand, Mr. Pickles ordered well over one million coins during the life of the program. To find banks that would accept deposits of thousands of coins a day, he mapped out every branch location within 50 miles of his home. He would then tell the managers what he was doing and be extra nice to the bank’s tellers. Although the coins were delivered and deposited in rolls, each bank would eventually grow tired of regularly receiving hundreds of pounds in coins. Often, he would bring the staff pizza, donuts, or coffee in order to put off the inevitable day when they told him to take his business elsewhere.
Once his story and those of others like him was leaked to the mainstream media, the United States Mint decided it would no longer accept credit cards for the purchase of coins at face value. Before that happened in mid 2011, Mr. Pickles earned over 1.2 million miles, enough to travel around the world in business class four times.
It was appropriate that Steve Belkin gave a closing address to the conference, as he was one of the most engaging and enthusiastic speakers there. For him, earning a mere million miles is just child’s play. Belkin, who goes by the name BeauBeau on various travel forums, treats frequent flier miles like a Wall Street investment banker treats stocks. He has figured out exactly how much each company’s points and miles are worth, and he will heavily invest his money in any scheme that allows him to acquire them at rates that are below his pre-determined values. When an airline offers bonus miles for traveling on a certain route, he doesn’t just buy himself a ticket, he pays for other people to fly as long as they agree to let him use their miles. He told stories of paying Asian farmers to fly around Thailand and American students to travel through Europe, so he collects bonus miles being offered on particular routes.
Like the Pudding Guy, Belkin is constantly looking for opportunities to make purchases that earn more miles than the item is worth. In late 2009, he and I both purchased large quantities of the TrackItBack Lost & Found Recover Service, when we learned that US Airways was temporarily awarding 140 miles per dollar spent on this product during a holiday promotion. According to their website:
TrackItBack provides its customers with uniquely coded ID labels that come in various sizes, shapes, and languages. Customers affix the ID labels to their personal items and register them online at TrackItBack's website or by phone. When an item is lost, the ID label instructs the finder to "Return for Reward" and TrackItBack facilitates the return of the lost device at no charge to its customer. The finder is rewarded with a pack of TrackItBack product and any optional cash reward that the owner of the item has chosen to provide.
After thoroughly reading the terms and conditions of the offer and consulting with others online, my wife and I eventually decided to purchase $3,000 worth of this product. We carefully considered the possibility that US Airways would not honor the terms of the deal, but we were reassured when the company responded to customer’s concerns in public online forums. Although we eventually received a 475,000 US Airways miles, Belkin earned millions of miles to be used by his family and friends, potentially worth tens of thousands of dollars more than he paid.
Although less tasty than pudding, I love the TrackItBack system. Better yet, I was also able to realize a tax deduction by donating my surplus product to a non-profit organization. Most of it went to the NTEN, the Nonprofit Technology Network, which was able to distribute it to other worthy charities that needed such a tracking system. After our tax deduction was taken into account, we essentially purchased miles for approximately one half of a cent each. We later redeemed 360,000 of these miles for our family to fly in business class to Italy and Israel this fall. I donated the remainder of the miles to my parents who traveled to visit family in a Williamsport, Pennsylvania, a town whose airport only has service from US Airways.
I have been earning miles my whole life, but really started spending time researching award travel within the last four years. Although I was previously aware of some of these stories, I was still thrilled to meet these people hear their experiences first hand. But I also tried to learn something from each of them. For example, the Pudding Guy only received his million miles because he kept meticulous records of his compliance with the terms of Healthy Choice’s offer. This is a great habit no matter how many miles are at stake. Likewise, you should always save your boarding pass in case your mileage is not credited. In addition, Steve Belkin’s experiences show how you can always find creative ways to earn miles without ever leaving the ground. Finally, Mr. Pickles proves that just being extra nice to the people you meet will encourage them to go out of their way to help you out. If there is one lesson that I learned from everyone I met at this conference, it is that the only limit to the amount of points and miles that can be earned is that your own determination and creativity. There is no doubt that these opportunities continue to present themselves, and I will do my best to share them with you as soon as I learn about them.
You know what's fun? Pampering. Eating. Learning. Drinking. Socializing. Helping People. Basically — lots of things. And while there is a lot of free fun to be had out there, it's not unreasonable to buy yourself a little bit enjoyment on occasion (as long as you're spending consciously). With that in mind, here are 15 fun, (mostly) useful things that can be yours for a five spot. (See also: 25 Great Gifts for $5 or Less)
You could blow your $5 on one magazine at the newsstand, or you could take advantage of one of Amazon's frequent magazine sales and snag a full year's worth of issues for $5. Don't see something you like for $5? There are usually plenty of $7 subscriptions too.
If you read enough frugal living websites, you know that you're not supposed to regularly buy lattes (because, yeah, those little savings make a big difference over time). But an occasional latte — especially if you're sharing conversation with a good friend — can be a very worthwhile treat.
I consider fresh flowers to be one of the ultimate indulgences — they're not practical, and they have a very limited lifespan. That said, I love the vibrancy they bring to a room. On my birthday this year, I spent $4 to buy fresh Gerbera Daisies, and it made me really happy to see them in my kitchen over the next week.
Enjoy a bit of fruit you don't have regularly — lychees are my favorite. If your regular grocery store's "exotic" fruit collection is a few kiwis tucked next to the bananas, visit an Asian grocery store to find more unusual fruits like dragon fruit, mangosteens, and Asian pears.
Whether it's a scarf, new belt, or even just socks, perk up your wardrobe with a new accessory. Try scoping out discount stores like TJ Maxx, Ross, and Marshalls.
One-time packets of bath salts, nice bars of soap, trial size shampoos, and lots of nail polishes fall well under $5. Pick one and pamper yourself.
I've seen stores in more and more states where you can buy beer by the single bottle. If you like a nice beer (but not the dear price of a six pack), buy a single bottle. Personally, I love sour beers, and I'd recommend Flemish red ale. The Monk's Cafe one is good.
Most of my pens are freebie ballpoint ones branded with company logos, but I love the feel of writing with something a bit nicer. Consider splurging on something that will allow you to write without constantly shaking the pen to try to get more ink out.
I'm a fidgeter, and I love things like squishy balls that I can fiddle around with. I'll also never get tired of high-bouncing super balls. This is extra fun if you're with a kid.
Fresh herbs can add such a wonderful flavor to food and drinks (mojito, anyone?). Or, instead of just buying some at the grocery store, purchase a small herb plant so you can have fresh herbs all year round.
Lynn wrote last year about how spending money on other people is a way that money can buy happiness. Help fund someone's dream project by donating through Kickstarter, where people raise funds for everything from making movies to recording concept albums to opening theaters and more.
From music to comedy to theater, there are always plenty of $5 or "donation accepted" shows going on. Check your local listings.
Depending on your used book store and what you want to read, $5 could mean one book or 50 books.
...which you can then use to write a note to someone.
A new shirt, new pants, or new dress could all be yours at the thrift store.
What are your favorite things to buy for under $5?
Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on how to book cheap flights, dividing expenses as a couple, and tips for saving on daily living.
How To Book Cheap Flight & Air Travel Deals — Secure a cheap flight by using airline credit cards that offer reward points. [The Digerati Life]
4 Ways To Divide Expenses As A Couple — Are you trying to figure out how to divide expenses as a couple? Consider paying a ratio according to both salaries. [SavvySugar]
6 Tips for Saving Tons on Daily Living — To save money on daily living, opt to stay in instead of going out to eat. [billeater.com]
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Several years ago I wrote an article about the pros and cons of paying cash for a house. Some readers asked me how this can be done and what the procedures are. Last year my husband and I actually did purchase a property with cash, and here is our experience. (See also: How to Live a (Nearly) Cash-Only Life)
The property we bought was listed on the public multiple listing service. It was bank owned, so I called the listing agent and asked for an appointment. The listing agent immediately told us that the bank could only accept cash offers at this point because the property already has another cash offer on it. After seeing it and finding that it was in great condition, I made a pretty fair offer that was about 95% of the listing price. I also had to submit evidence of my funds along with my offer. The bank gladly accepted, and I sent in an earnest deposit check for $5,000. This check was then put into escrow towards the purchase of the house.
Next, we hired an inspector to look at the property to see if there are any defects. Unfortunately, the air conditioning system was broken, but the bank refused to pay for it, and we agreed to fix it out of pocket. The bank did agree to pay for title insurance, half of the escrow fee, and clear all liens from the property. So I made sure that all the unpaid bills and taxes on the property were paid before closing.
Meanwhile, I was gathering my funds all into one account so that I could send it into escrow before closing. We were able to choose our closing date to be the end of June, since we didn't have to deal with a loan. This was advantageous to us, since the bank had to pay all the property taxes for the first half year. I asked for the HUD closing statement about three days before closing and made sure that everything looked correct.
On the day before closing, I made sure all the funds were in my account and then sent the money to escrow. Everything went fairly smoothly, and the whole process took about three weeks from looking at the property to getting the keys. The closing costs were less than 1% of the price of the property because we didn't have to deal with a loan.
We were able to fix the air conditioner for a very fair price, and we rented the property out after several weeks of open houses. Now that we've owned the property for more than six months, we are actually eligible to take money out via a cash out refinance, but we don't need the money right now. The point is that if we didn't make a cash offer, then we would not have been able to procure this property at all. Basically, the process to buying a house with a cash on the open market is pretty much the same as buying a house with a loan, but you have more flexibility on the closing date, and that is a competitive advantage over offers with a loan contingency. You don't have to sign as many papers, but you still have to do your due diligence and make sure that you have a bit of cash buffer left over after the purchase for possible repairs and improvements.
What do you think? Are you thinking of buying a house with cash?
Wise Bread
