Saving Money

Hints For Saving Tech Dollars

July 23, 2014 By Twila Van Leer

You can pocket some cash when adding to your technology “stuff” by following these suggestions that were included in the AARP’s annual list of 99 ways to save money:

Research new gadgets and find when they will be on the market. That way you won’t purchase an item soon to be obsolete. In general, a new iPhone hits the market every September, followed by an updated iPad in November. New camera models hit the markets in February and October. And there’s always a pile of electronics items that make their appearance for the holidays.

Consider a prepaid cellphone. That way, you pay for the calls before, not after, you’ve made them and that can save you considerable cash. All the big cellphone producers offer prepaid versions, but they don’t tend to advertise them. Make the request.

Keep in touch with family via Skype or similar app. They are available for smartphones, tablets and computers. Face Time is the version for Apple phones, tablets and computers. This free phone chatting over the Internet adds the bonus of video. Both parties, obviously, must have the app, but most families are now prepared to commune by computer.

Learn to outsmart scammers. If you receive an email purportedly from your bank or a big store, don’t click the link and log in. The email is fake and takes you to a fake website. As you are logging in, you give the bad guys access to your password.

When traveling outside the United States, put your phone on airplane mode. If you don’t, the phone will keep checking the Internet and emails on the cellular network in the country you are visiting. You’ll have a big bill when you return home. If you have to check email, turn on Wi-Fi and find a Wi-Fi hot spot.

Look at refurbished computers, rather than investing in a “new” one. Many of those listed as refurbished are, in fact, new ones that were bought and then returned for some reason. There are inspected more thoroughly than new machines, but the dealer can’t sell them as new. They cost less and have the same warranty.

Stick to basic cable, then sign up for Netflix streaming, which usually costs about $8 per month. You then have unlimited movies and entire seasons of some T shows. Your local library most likely has a good collection of DVDs.

Before you buy anything online, check for discounts and deals. You may find a better deal.

What Not To Buy In 2014

May 19, 2014 By Twila Van Leer

Save Money On Traveling — Extra Leg Room On Trips – Is It Worth The Price?

Technologies are changing and require more review of intended purchases if you’re in the market for products. Here is a list of products from around the web that you might want to avoid if you want to keep your money in your wallet.

1 – Landlines

Landline telephone services are rapidly being replaced by wireless phones. Two in five households had switched to wireless the first half of last year, up slightly from the first half of 2012. In the past decade, some 90 million adults, 38 percent of the population, became wireless-only. Scrapping the landline allows you to drop one of the monthly bills. And you needn’t be restricted to a cellphone. There’s Skype, which is free and puts you in touch with friends and family around the world via smartphone and other devices. FaceTime video may be free with a Wi-Fi connection. MagicJack Plus can be connected to a USB port, computer or regular phone router. It may cost $49.95 for the device and six months of service, after which the monthly service is $1.67 to $2.50 per month. Some folks may want to retain their landline as well. There is more security in case of disruptions caused by bad weather or other problems.

2 – GPS

Before investing up to $300 to purchase a GPS device, look at new developments that serve the same purpose. There are GPS apps on many smartphones, a fair number of them free to upload. A growing number of new cars come with a GPS option. Forty-nine percent of 2013 vehicles have a navigation system.

3 – Cable Television

Cable television is being replace by other technologies. Since 2004, subscribers to cable have been dropping out in favor of services such as Hulu and Netflix NFLX, which provide comparable service at a much lower cost. Using an Internet connection, consumers can stream many cable shows, news programs and sports events, as well as movies, directly to their TVs. Some channels offer access to programs through their websites. These services are available primarily to those who don’t care if their shows have been previously aired and who are willing to give up live programming.

4 – Hotel Rooms

The demand for hotel rooms, along with their rates, are going up. There are some alternatives, including apartments and homes where prices are lower and there is usually more space. The average daily rate at U.S. hotels is $110.59, up 4.1 percent from 2012 and 12.6 percent from 2010. The average is expected to rise to $115.68 in 2014, according to PricewaterhouseCoopers. Agencies such as Airbnb and Vacation Rentals By Owners, offer an assortment of homes you can rent. Some provide free airport pickup and drop-off services. This approach is particularly effective for large groups or families traveling together. Advantages may include many bedrooms and facilities for meal preparation. The downside: such arrangements usually offer less security than do hotels.

5 – DVD & Blue-Ray Players

DVD and Blue Ray player sales are down. Sales for DVD and Blu-ray units totaled 21.3 million in 20l2. That’s down 20-plus percent from a year prior and 24.8 percent from 2010. More people are opting to stream movies from Internet services such as Hulu and Netflix. Many gamers can use their consoles to watch DVDs.

6 – Computers

Desktop and laptop computers are becoming obsolete to a degree. Tablets perform the same functions and they’re portable. The price differential is considerable, with Apple’s IMac starting at $1,299, compared with an iPad at $299. Graphic designers and traders, obviously, will find it necessary to stay with large screens, but for the vast majority of users, the smaller versions fill the bill. Worldwide shipments of PCs fell 4 percent in 2012 over the prior year, an indication that PCs are losing ground in the computer market.

7 – Leg Room On Airplanes

Airlines are changing their approaches to giving passengers more amenities — for a fee. It has been common practice to provide an extra three to six inches of legroom in coach for an additional cost of up to $180. The seats often are in the exit rows or the first row in economy. But for a payment of $100 to $200, a traveler can be upgraded to business class, where seats are more comfortable and service is more accommodating. These are options that used to be reserved for frequent fliers, but now they are offered to any passenger willing to pay a bit more when they check in or at the gate.

8 – Credit Cards With Rewards

Credit card companies are altering rewards programs. Consumers should be wary now of promotions that offer rewards in points or miles. Many of the card issuers are requiring a greater outlay by the consumer to get the “free reward” they could have obtained earlier with fewer points. Many of the cards now come with annual fees ranging from $30 to $75. Instead, consider a credit card with a cash-back offering, a much more straightforward plan. The usual kickback is 1 percent to 5 percent of the number of dollars involved in the purchase.

9 – Digital Cameras

Digital cameras are suffering an identity crisis. With competition from cell phones with photo capacities and an expanding range of options for picture-takers with particular goals in mind, there is a confusing array of choices. Digital point-and-shoot cameras that have been the rage for years are seeing a decline in demand. Sales are down some 44 percent since 2012 and they’re expected to keep dropping. “Real” photographers are choosing larger, DSLR cameras, while those bent on action shots are finding models such as the Go-Pro best meet their needs. Be sure that what you get is what you really want.

10 – Credit Reports

By law, credit card reports cannot be more than $11.50 per report. Your credit score is often not included in these reports. You can order three different FICO scores – one from each credit reporting bureau – but it will cost you – $59.85. Some credit cards like Discover Card are showing customers credit scores every month when consumers sign on to their accounts. You can’t beat free credit scores!

As a consumer we want you to save money on all your purchases in 2014. If you know about other good savings tips, please share with us!

When Rent Payments Are Too High

May 8, 2014 By Twila Van Leer

Rent. When Is It Too High?

Are rent payments more than 50% of your income?

Depending on where you live in this country, you could be putting up to two-thirds of your income into rent. That’s twice the percentage usually advised by the financial gurus. But, what are you going to do?

One in three Americans is now shelling out the standard one third of income for rent, but for many, for instance those in the Bronx borough of New York City, it is more typical to see 66 percent of the household’s income disappear into the hands of landlords. That’s the worst it gets, according to RealtyTrac. To add to the woes of the Bronx dwellers, the overall median income is under $35,000, with the average rent at $1,800 per month.

The dilemma is spreading to other some cities, the realty oversight company says, with growing numbers of pockets of low-income renters. In Philadelphia, Brooklyn, Baltimore and Miami many must part with 50 percent of their income monthly to keep a roof over their heads.

The fallout from the recent recession is contributing to the problem. The crisis in foreclosures turned millions of former homeowners into renters. And the continuing uncertain economy has discouraged many renters from becoming homeowners, according to Harvard’s Joint Center for Housing Studies. Increased demand has seen rents climb by 21 percent since the housing market peaked in 2006.

At the same time, real income – after inflation – has dipped by 14 percent, creating a double whammy for the renters. The Harvard center found that about one in four renters overall is paying more than 50 percent for housing. The result is inevitably that there is less to spend on food, healthcare and retirement.

The rent reality becomes a factor when a person considers a job change that has, initially, less pay but offers more opportunity in the future. The immediate demands may trump the potential. Additional education also may be sacrificed even if, in the long run, it would improve an individual’s future prospects. Saving for a new home becomes difficult, if not impossible. Bottom line: Reasonable rents contribute to the overall financial health of the country.

10 Travel Tips To Stay Within Your Travel Budget

March 24, 2014 By Sherry Tingley

A vacation is something that most people enjoy, but few are able to afford consistently. However, a fun vacation doesn’t have to break the bank. Whether you want to take vacation to the beach or to an exotic location you will need to plan ahead. By discovering your hidden thrifty streak and checking out these ten travel tips, you can make a vacation affordable for you.

Prioritize

Before you start thinking of where you’d like to go, consider what you want to do on your trip. If you’re after a five-star vacation, you’re likely going to need to save for it. However, if you just want to try new cuisine, see something historic or simply relax, it’s possible to do it for less. Try shopping at ethnic markets for new foods and cultures, or hitting the beach to relax.

Decide on a Travel Budget

It’s unwise to travel without a budget. Take into account your current financial situation and see how your vacation fits into it. However, you should allow for a margin of error. Few things ruin a vacation faster than realizing you’re out of money because you forgot to plan for something. Once your budget is set, don’t stray from it. These days, many websites are available that allow you to find options within your specific price range.

Take Advantage of Slow Periods

Depending on your schedule and preferences, you can shave hundreds off your costs by taking advantage of off-season trips. Prices tend to be considerably higher during peak travel seasons, like summer and holidays. Plus, you also won’t have to deal with crowds, long lines and other things that make traveling stressful.

Find Cheaper Accommodations

Even the cheapest hotels can cost a small fortune, so consider possible alternatives. Staying at hostels, rental properties, the home of a friend or family member and even camping are several alternatives that will cost you little or no money. Some travel tips even suggest couch-surfing.

Make it Short

A vacation doesn’t have to last for weeks. If you take a shorter trip, you could save a lot of money. Why not visit an area in your state, like a camping trip to a national forest or a weekend at the beach? Another benefit of this is that some services offer you a discount if you’re a state resident, making your trip even cheaper.

Wait Until the Last Minute

If you’re flexible, try finding some last-minute deals on fare and accommodations. If there are any slots left over by a certain point, companies want them filled, even at a discount. However, last-minute fares can change without warning, so book quickly.

Be Sale Savvy

Watch for sales on fare or hotels. This is especially helpful if you’re planning well in advance. You can sign up for alerts on a number of websites to let you know when a good deal has become available. Even if you book several months ahead, the price will still be good on the day of departure.

Group Vacations

If you have friends and family who also need a vacation, consider making it a group affair. Many airlines and hotels offer steep discounts for groups, which means you might pay a fraction of the cost of going solo.

Enlist the Crowd

Sometimes, a vacation can get staggeringly expensive. However, the Internet has revolutionized even this. Crowdfunding, enlisting others online to donate money for a cause, is one way to finance your trip.

Doing Volunteer Work During Vacations

If you like helping out and you need a getaway, why not try volunteering for a vacation? You still have to pay your way there and back, but many organizations will provide all other accommodations for people working for the greater good. Check with your local Habitat for Humanity, church groups and other charities to learn more.

How Your Spending Data Is Being Used By Banks

January 10, 2014 By Sherry Tingley

Customer spending patterns are analyzed by algorithms.

Targeted advertising has reached a whole new level in the “Card Linked Space.” If you bank with one of the 400 financial institutions (including Bank of America, Regions Bank, PNC Bank, Fiserv, and Intuit) that have partnered with Cardlytics, then every spending action that you make with a debit card is stored and analyzed to serve you with the perfect advertisement.

Shopping for groceries? Sporting Goods? Boutiques? Accessories? Home Improvement? You will receive ads that target items commonly sold by those types of merchants. If they had item level data on your purchases, you would see adds for individual items, but banks only get the total amount spent and the merchant names.

Understanding how the algorithms could work with your data takes a little imagination. Can your spending patterns lead them to the conclusion that you are a mom driving kids to and from school and after school activities. Can they tell if you are single or married? Can they tell if you are a baby boomer or senior citizen? Using this information can they predict what types of products you might be interested in?

Lynne Laube & Scott Grimes - Creators of Cardlytics - Photo from Forbes Magazine — Lynne Laube & Scott Grimes – Creators of Cardlytics – Photo from Forbes Magazine

Cardlytics, a company that analyzes $500 billion dollars worth of spending – over 11 billion transactions, seems to be able to accomplish this. They have been accurate enough that hedge funds call and ask to buy their data to predicts increases or decreases in sales. In fact, Cardlytics has patented (U.S. Patent No. 8,595,065) the spending algorithms calling them – Cardlytics Offer Placement System (OPS).

Is it all an invasion of privacy or is there some good to be found?

According to a recent article “Reading Your Financial Footprint,” in Forbes Magazine (Dec. 16, 2013), customers have saved $17,000,000. Sales generated were a staggering $700,000,000. Depending on how you interpret those results, it seems like the whole system actually saves you money.

Interesting to note is that the people that started Cardlytics, Lynne Laube and Scott Grimes had significant experience with the banking industry. Lynne Laube was the Vice President and COO of Capital One and Scott Grimes was their Senior Vice President and general manager. Both with finance, business and marketing backgrounds these two entrepreneurs look young enough to be included in the millionaires under 40 club.

For consumers, we are not likely to see this type of advertising go away. In fact, it will probably increase more as even more sophisticated algorithms are developed. The upside to consumers is not only saving money on products they would be purchasing anyway, but saving them time hunting for bargains, loyalty cards or bulk purchasing deals. Marketing certainly seems to be at the top of it’s game in 2014.