There are a myriad of credit card offers in the marketplace, and it is important to choose which credit card is right for you. It goes without saying that you should never carry any kind of balance, and you should treat your credit cards like charge cards or debit cards, where the full balance is paid off every month. If you budget effectively and exercise some discipline, this should not be too hard. Also, I find very little reason to pay an annual fee. It's a cost benefit analysis, and I have found that the costs generally lose out. Which means that credit card choice often comes down to the rewards and incentives.
Many of my friends in the past few years have focused on getting credits cards with very particular rewards programs. The Starwood American Express is particularly popular, as is the Amtrak Guest Rewards Visa. Other friends have focused on particular airlines, and their linked credit cards. I generally think these are the wrong way to go.
Websites such as kayak.com have democratized the travel industry, and locking in loyalty at one hotel brand (Starwood), or one airline, provides a psychological block to other alternatives. It may make sense if you live in a place where there is only one real airline serving your metropolitan area, but in a place like Washington DC, where there is excellent service from Southwest, USAir, American, and United, it makes very little sense to be wed to just one of those. There are similar situations in most metropolitan areas, which are served well by larger carriers and smaller carriers. Additionally, focusing on airlines leaves you at the whim of black out dates, which at times seem arbitrary, and increasing levels of miles necessary for rewards. It can now require 60,000 for a round trip ticket on Delta, meaning you need 120,000 miles if you are not traveling alone. http://dmn.delta.com/skymiles/direct/charts/us49/. When was the last time you had 120,000 miles?
Instead, I focus primarily on getting cash back rewards, because I can then use the cash for whatever I want. To look at miles vs. cash, check out: http://www.creditcards.com/credit-card-news/cathleen-mccarthy-6-questions-cash-back-miles-1433.php. I like having the options. I personally carry the Chase Freedom Card, because I can get up to $300 in bonus cash back in any given year. https://creditcards.chase.com/credit-cards/chase-freedom.aspx The opt-in for the bonus categories is simple and easy, and most of the categories are in things I buy anyway, like gas and groceries. I also carry Blue Cash Everyday from American Express, because I get three percent back on groceries. http://www304.americanexpress.com/getthecard/side-by-side/bluecashever-bluecashpref/12006. If I drove a car regularly, I would probably carry the Bank of America Cash Back card because it offers 3% back on gas. https://www.bankofamerica.com/credit-cards/marketinglist.action?context_id=marketing_list&category_id=2012
The point here is that you want the ultimate flexibility in your rewards, and you want rewards which give you the most for what you spend the most. We only use the Amex for groceries because of its specialized benefit. We focus on using the Chase card on its bonus categories to maximize our cash back. At the end of the year, I have a few hundred extra dollars in my pocket to use at my discretion.
Disagree? Got a credit card you love that I should be using? Let me know. Thanks.
Showing posts with label Shopping. Show all posts
Showing posts with label Shopping. Show all posts
Thursday, February 23, 2012
Tuesday, January 31, 2012
Amazon (Subscribe and Save & Prime)
I'm a big fan of finding ways to remove reminders and responsibilities from my life. If I can set up automatic payments or automatic billing, I try to do it just so I don't forget and find myself in a pickle. This is why I am a big fan of Amazon Subscribe and Save, and Amazon Prime.
If you are not familiar with Prime, it is a service where you pay 79 dollars a year for free two day shipping, a free kindle book from the lending library once a month, free streaming video from Amazon, and other discounts. http://www.amazon.com/gp/prime/ref=amb_link_84306931_4?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=auto-sparkle&pf_rd_r=8216E17D34CF41998504&pf_rd_t=301&pf_rd_p=1294973662&pf_rd_i=amazon%20prime
Subscribe and Save is a program where Amazon will send you things you need on a regular basis, without you proactively sending an order. You set up a recurring order, and it shows up at your door. http://www.amazon.com/Subscribe/b/ref=gro_SnS_sparkle_shop?ie=UTF8&node=979895011&pf_rd_m=ATVPDKIKX0DER&pf_rd_s=auto-sparkle&pf_rd_r=D4DD67B5027A4BBFA003&pf_rd_t=301&pf_rd_p=1345024122&pf_rd_i=subscribe%20and%20save
Subscribe and Save saves you 5-15% on every order. Prime has additional discounts on some orders. One thing I get through Subscribe and Save and Prime is Diapers. The diapers I buy go for 47 bucks on Amazon, but I save about ten dollars per order using Subscribe and Save, and Prime. Also, it's a plus that my son then never runs out of diapers.
Now, I'm aware that one of the chief concerns is that 79 dollars a year sounds like a lot to not have the patience for free super saver shipping at amazon. But looking at the diaper transaction alone justifies Prime. 7 out of those ten dollars saved is from the additional discount through Prime (as part of the Amazon Mom Program). So, based on my membership in Prime, I save 84 dollars on diapers per year. I need to outfit my son in diapers, and this is the most efficient, most cost-effective way to do it. Consequently, the expedited shipping and other benefits of prime are free when you consider the cost savings of diapers alone.
Think about what you need and use on a recurring basis and find out if Subscribe and Save, and Prime can save you significant amounts of money. We have used it for baby food, vitamins, and a host of other items. Think about it for coffee, packaged foods, supplements or whatever else comes to mind. You'll save money, remove additional stress of remembering to buy things you know you need, and avoid being caught in an unprepared situation.
If you are not familiar with Prime, it is a service where you pay 79 dollars a year for free two day shipping, a free kindle book from the lending library once a month, free streaming video from Amazon, and other discounts. http://www.amazon.com/gp/prime/ref=amb_link_84306931_4?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=auto-sparkle&pf_rd_r=8216E17D34CF41998504&pf_rd_t=301&pf_rd_p=1294973662&pf_rd_i=amazon%20prime
Subscribe and Save is a program where Amazon will send you things you need on a regular basis, without you proactively sending an order. You set up a recurring order, and it shows up at your door. http://www.amazon.com/Subscribe/b/ref=gro_SnS_sparkle_shop?ie=UTF8&node=979895011&pf_rd_m=ATVPDKIKX0DER&pf_rd_s=auto-sparkle&pf_rd_r=D4DD67B5027A4BBFA003&pf_rd_t=301&pf_rd_p=1345024122&pf_rd_i=subscribe%20and%20save
Subscribe and Save saves you 5-15% on every order. Prime has additional discounts on some orders. One thing I get through Subscribe and Save and Prime is Diapers. The diapers I buy go for 47 bucks on Amazon, but I save about ten dollars per order using Subscribe and Save, and Prime. Also, it's a plus that my son then never runs out of diapers.
Now, I'm aware that one of the chief concerns is that 79 dollars a year sounds like a lot to not have the patience for free super saver shipping at amazon. But looking at the diaper transaction alone justifies Prime. 7 out of those ten dollars saved is from the additional discount through Prime (as part of the Amazon Mom Program). So, based on my membership in Prime, I save 84 dollars on diapers per year. I need to outfit my son in diapers, and this is the most efficient, most cost-effective way to do it. Consequently, the expedited shipping and other benefits of prime are free when you consider the cost savings of diapers alone.
Think about what you need and use on a recurring basis and find out if Subscribe and Save, and Prime can save you significant amounts of money. We have used it for baby food, vitamins, and a host of other items. Think about it for coffee, packaged foods, supplements or whatever else comes to mind. You'll save money, remove additional stress of remembering to buy things you know you need, and avoid being caught in an unprepared situation.
Monday, January 23, 2012
Automatic Withdrawal Budgeting
Idle hands may be the devil's plaything, but idle funds are what gets us into trouble. Unappropriated money is what leads to splurges, debt, and purchases which are later regretted. I have generally found that creating a budget which allowed for the least amount of idle funds is the best way to ensure that your money is going to where it belongs. But how can you properly appropriate funds. Automatic Withdrawals and payroll deductions.
There are some general payroll deductions which many employers offer which are smart for almost everyone. These include health insurance, 401(k), and a flexible spending account for medical expenses. All of these are deducted from your adjusted gross income, and should be utilized to some extent by everyone.
Then there are some personal initiatives you should take in order to secure yourself financially. Automatically paying off 100% of your credit cards, utility bills, mortgage, and insurance each month. Don't put yourself in a position where you need to think about it. Not only do most banks have online bill pay, but some provide incentives for signing up for it. http://online.wsj.com/article/SB110246841042693926.html Think about it. All of your bills get paid, you don't need to think about it, and you get an incentive.
Lastly, you can create ongoing disbursements for your personal priorities. Automatic withdrawals for your IRA http://helpcenter.ingdirect.com/ingd/Topic.aspx?category=DIST1, 529 Account http://www.529.com/content/how_aippayroll.html, Debt Payments http://www.moneyunder30.com/debt-payments, or just moving 10% of your take home salary to a high interest savings account on a monthly basis. http://www.gobankingrates.com/savings-account/easy-ways-to-build-your-savings-account-automatically/ This will keep your checking account pretty lean, and you will not be tempted by higher balances to purchase things you don't need.
We all have far too many things to think about, and setting up automatic withdrawal budgeting priorities from your checking account takes away the burden of remembering what needs to be done. It allows you to prioritize with a clear head and ensure that your money goes where it needs to be, and not where you may want it merely in the short term. Moving idle funds to your established personal priorities by setting up automatic payments and withdrawals will help you build the financial foundation you want without the revolving burden of keeping your priorities at the top of your to do list.
There are some general payroll deductions which many employers offer which are smart for almost everyone. These include health insurance, 401(k), and a flexible spending account for medical expenses. All of these are deducted from your adjusted gross income, and should be utilized to some extent by everyone.
Then there are some personal initiatives you should take in order to secure yourself financially. Automatically paying off 100% of your credit cards, utility bills, mortgage, and insurance each month. Don't put yourself in a position where you need to think about it. Not only do most banks have online bill pay, but some provide incentives for signing up for it. http://online.wsj.com/article/SB110246841042693926.html Think about it. All of your bills get paid, you don't need to think about it, and you get an incentive.
Lastly, you can create ongoing disbursements for your personal priorities. Automatic withdrawals for your IRA http://helpcenter.ingdirect.com/ingd/Topic.aspx?category=DIST1, 529 Account http://www.529.com/content/how_aippayroll.html, Debt Payments http://www.moneyunder30.com/debt-payments, or just moving 10% of your take home salary to a high interest savings account on a monthly basis. http://www.gobankingrates.com/savings-account/easy-ways-to-build-your-savings-account-automatically/ This will keep your checking account pretty lean, and you will not be tempted by higher balances to purchase things you don't need.
We all have far too many things to think about, and setting up automatic withdrawal budgeting priorities from your checking account takes away the burden of remembering what needs to be done. It allows you to prioritize with a clear head and ensure that your money goes where it needs to be, and not where you may want it merely in the short term. Moving idle funds to your established personal priorities by setting up automatic payments and withdrawals will help you build the financial foundation you want without the revolving burden of keeping your priorities at the top of your to do list.
Friday, January 20, 2012
The Public Library
I am an unapologetic supporter of the public library. Maybe it's because a lot of the libraries in DC have been spruced up as of late, but, I am a huge supporter on the following levels.
1) Music. How much money do you spend on music in a given year? Probably too much. In DC, the public library buys hundreds of albums per year, which you can rip to your ipod for free. Additionally, the library has a service called Freegal, http://www.freegalmusic.com/, which is a free, online distribution network run by Sony and a bunch of independent labels. You get three downloads per week, and I guarantee you will find at least a handful of artists on there you will like. Take a look at the entire music selection of the library (go to advanced search, select the format "music cd," and enter the year of release), and you'll probably be amazed at what you could be listening to for free. This should significantly decrease the amount you are spending on digital downloads.
2) Movies. We all know netflix has screwed the pooch of late, and that there are a number of competitors coming up. The library isn't an expert at streaming video yet, but they routinely get dozens of movies around the same time as netflix. You don't pay for them, and you have them for three weeks, and you can have out a handful at a time. My netflix plan is for one move at a time, without streaming, for 9 dollars a month. So I spend over 100 dollars a year on what I could easily get from the library. I routinely suspend my netflix account when I get frustrated.
3) Books. Duh. The library will give you books and audiobooks for weeks at a time. Addicted to your kindle or ibooks? There are digital downloads where you can rent an ebook for weeks at a time. Unless you are planning on collecting books for fun or plan on showing off books in your beautiful library, there is virtually no reason to buy a book anymore. Only in those very rare circumstances where you are looking for a book which is not available in the library should you consider buying, and even in that case, look for an interlibrary loan from a jurisdiction that has your book.
Check out your local library. It's free, and they probably have a bunch of programs you would really enjoy. See if they subscribe to Freegal, and if they don't, encourage it. Scroll through the online catalog and find out if there are downloads you might like. You'll be amazed to how much entertainment you can get for free. http://www.dclibrary.org/
1) Music. How much money do you spend on music in a given year? Probably too much. In DC, the public library buys hundreds of albums per year, which you can rip to your ipod for free. Additionally, the library has a service called Freegal, http://www.freegalmusic.com/, which is a free, online distribution network run by Sony and a bunch of independent labels. You get three downloads per week, and I guarantee you will find at least a handful of artists on there you will like. Take a look at the entire music selection of the library (go to advanced search, select the format "music cd," and enter the year of release), and you'll probably be amazed at what you could be listening to for free. This should significantly decrease the amount you are spending on digital downloads.
2) Movies. We all know netflix has screwed the pooch of late, and that there are a number of competitors coming up. The library isn't an expert at streaming video yet, but they routinely get dozens of movies around the same time as netflix. You don't pay for them, and you have them for three weeks, and you can have out a handful at a time. My netflix plan is for one move at a time, without streaming, for 9 dollars a month. So I spend over 100 dollars a year on what I could easily get from the library. I routinely suspend my netflix account when I get frustrated.
3) Books. Duh. The library will give you books and audiobooks for weeks at a time. Addicted to your kindle or ibooks? There are digital downloads where you can rent an ebook for weeks at a time. Unless you are planning on collecting books for fun or plan on showing off books in your beautiful library, there is virtually no reason to buy a book anymore. Only in those very rare circumstances where you are looking for a book which is not available in the library should you consider buying, and even in that case, look for an interlibrary loan from a jurisdiction that has your book.
Check out your local library. It's free, and they probably have a bunch of programs you would really enjoy. See if they subscribe to Freegal, and if they don't, encourage it. Scroll through the online catalog and find out if there are downloads you might like. You'll be amazed to how much entertainment you can get for free. http://www.dclibrary.org/
Wednesday, January 11, 2012
Online Shopping
I like online shopping, for a number of reasons. I'm a little lazy, it's hard to go to stores when you have a kid, and generally, I know what I want and I buy enough in one order to qualify for free shipping. But I am always looking for some sort of incentive when I shop, and I believe I have found it in click through websites. The two which I use most often are http://www.ebates.com/, and http://www.upromise.com/.
Here's how it works. You know you want to buy something. You go through these websites to find the store you want to buy from, and these websites rebate you 1%-20% of the purchase. Upromise is a method of saving for higher education, and the money goes into high interest savings accounts, destined eventually for a 529 Account. Ebates refunds the money to you quarterly, through a check.
Past incarnations of this concept have provided less than stellar rewards (gift cards at undesirable stores) or sites where people didn't want to shop at. Ebates and Upromise both have a very large selection of stores. I have yet to meet someone who I have spoken with informally about these programs that could not benefit from them. My favorite stores on Ebates are Target.com (3% back), Groupon (3% back), Diapers.com (up to 4% back). Friends of mine have commented on their preference for Drugstore.com (12% back), J.Crew (1.5% back) ,and J.C. Penney (3% back). Take a look for yourself and see how much you could be rebated simply by clicking through a website when doing your online shopping. Plus, you get a ten dollar gift card just for signing up. Further, check out sites like http://www.retailmenot.com/ to make sure you are not missing out on any promotional codes for sales and free shipping. I've gotten about 50 bucks rebated to me in the last six months.
Upromise carries with it a few added benefits. There is a Upromise credit card which increases your deposit into the high interest account, and Upromise also has deals with a number of restaurants which will deposit a percentage of your purchase, provided you pay with a credit card registered on Upromise.com. They also provide rebates on gas and grocery purchases.
All in all, there are a number of benefits to doing your online shopping through these click-through websites. Also, both of these sites also can provide discount codes and coupons. All of these options should be considered to make sure that your money goes farthest when making your purchases.
Here's how it works. You know you want to buy something. You go through these websites to find the store you want to buy from, and these websites rebate you 1%-20% of the purchase. Upromise is a method of saving for higher education, and the money goes into high interest savings accounts, destined eventually for a 529 Account. Ebates refunds the money to you quarterly, through a check.
Past incarnations of this concept have provided less than stellar rewards (gift cards at undesirable stores) or sites where people didn't want to shop at. Ebates and Upromise both have a very large selection of stores. I have yet to meet someone who I have spoken with informally about these programs that could not benefit from them. My favorite stores on Ebates are Target.com (3% back), Groupon (3% back), Diapers.com (up to 4% back). Friends of mine have commented on their preference for Drugstore.com (12% back), J.Crew (1.5% back) ,and J.C. Penney (3% back). Take a look for yourself and see how much you could be rebated simply by clicking through a website when doing your online shopping. Plus, you get a ten dollar gift card just for signing up. Further, check out sites like http://www.retailmenot.com/ to make sure you are not missing out on any promotional codes for sales and free shipping. I've gotten about 50 bucks rebated to me in the last six months.
Upromise carries with it a few added benefits. There is a Upromise credit card which increases your deposit into the high interest account, and Upromise also has deals with a number of restaurants which will deposit a percentage of your purchase, provided you pay with a credit card registered on Upromise.com. They also provide rebates on gas and grocery purchases.
All in all, there are a number of benefits to doing your online shopping through these click-through websites. Also, both of these sites also can provide discount codes and coupons. All of these options should be considered to make sure that your money goes farthest when making your purchases.
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