Category Archives: Smart Spending

Make a Few Extra Dollars with No Extra Effort

credit: freedigitalphotos.net by Stuart Miles

credit: freedigitalphotos.net by Stuart Miles

In my younger days when I had much more time on my hands, I’d often find different things to do to make a few extra bucks. I would participate in medical studies (mostly psychological ones), focus groups, did online surveys, and graded papers. Now with a family, my time is pretty limited and I’m not going to lie, sometimes I’m just too lazy to do these things to make extra money! And yes, now that I’m earning a decent income, I’m a little pickier in how much time I’m going to spend to earn more money. However, there are a few things that I do to earn a few extra dollars that require pretty much no effort at all. So even if you are lazy or have no time, you can still earn a few extra bucks doing some of the things listed below. No, it’s not a lot of money, but hey, it’s also very little effort. Why not earn a little cash for doing things you would be doing anyway?

Bing Rewards

I am always on the internet “googling” different topics, for fun, for work, for my education. Then I learned that Bing Rewards will give you points JUST for searching using the Bing search engine. I wasn’t married to Google and didn’t really care either way so I signed up and started using Bing instead. I mean I used search engines everyday anyway so why not earn some points. I think my wife and I combined earn about $5 to $10 each in gift cards per month. It depends how diligent we are in using the search engine. You can also do trivia quizzes and click on a few things on the Bing Rewards page to earn points, as well as doing mobile searches. We usually choose Amazon as we shop there often. Amazon gift cards are practically cash in our household. And if you prefer, you can also redeem for Starbucks gift cards and buy a few lattes guilt free! There are a few other options but none that interest me. I do still use Google sometimes as I think it is a slightly better search engine and I definitely like Google Maps more than Bing Maps.

Swagbucks is similar to Bing where you can earn points and get gift cards just for searching. Plus, you can do surveys and other things to earn additional points. I’ve read other bloggers write good reviews about it but haven’t had the chance to try it out. I plan to and will update you on that when I do so.

Cash back websites

Who shops online? Raise your hand. Pretty much everybody right? But do you use a cash back website before you go to that online store to make your purchase? If you don’t, you really should! What is a cash back website? It’s basically a website which will reward you for shopping online. They are generally run by companies that get a commission for sending you to the retailer’s website. The retailer gives these companies a referral fee for sending them business, and in turn, the portal gives you a portion of the fee. Ebates is one of the top cash back websites and you will get $10 when you sign up and spend $25. If you refer your friends and family to the site, you can get a referral fee also. I will get a referral fee if you sign up, so if you do, I thank you very much. Another cash back site that I like to use is TopCashBack. There is no sign up bonus but sometimes their site offers larger cash back. It really depends though because sometimes Ebates runs promotions where they offer better cash back rates. If it isn’t too much effort, you can check both sites. So before you buy your next online item, click onto either Ebates or Topcashback to earn a little cash back. It takes very little effort!

Cash back credit cards

A lot of people use credit cards for their purchases rather than cash nowadays (link). So why not earn some cash back for using that credit card. I’m not even talking about the credit cards that give you a measly 1% cash back. I have a credit card which gives me 5% cash back for purchases at gas stations and grocery stores (up to a maximum $250 per category). If I spend $250 on gas and $250 on groceries, I will earn $25 each month for spending on something that I would have to spend on whether I used a credit card or not. Unfortunately, that credit card has been discontinued but there are others offer similar benefits. I would choose the cash back credit card with the best cash back for whatever category who spend the most on. Just do a google bing search for that credit card: i.e. 5% cash back gas credit card.

Of course, if using a cash back credit card will tempt you to spend more than you usually would, then this won’t be a good idea for you. For those who would be tempted to spend more if they know they can earn cash back, then it might be best to try a different type of card. The Bank of America Better Balance Rewards card pays you $25 each quarter for making more than the minimum payment on your bill. You can get an extra $5 each quarter if you have a checking or savings account with that bank.

iDine

You can earn between 5% to 15% for dining out at participating restaurants. (The percentage depends on the amount you spend at the participating restaurants) You do not need to use any coupon or gift certificate. All you have to do is link your credit card on the website, and whenever you dine at a participating restaurant, you will earn cash back. When you earn $20, you will receive an American Express gift card. If you have a credit card that gives you cash back for spending at restaurants, I would register that card so that I earn cash back from the credit card and from the iDine program.

What other ways do you earn a little cash which takes very little of your time?

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Consumers Beware

Merchants are always trying to separate you and your money. Sometimes they try to lure you in with sales, even though the sale prices aren’t really that great. And sometimes they use other sneaky and under-handed tactics to make a bad deal look like a good one. Here are a few examples:

Deferred Interest

My friend recently bought a new house and told me that he and his wife bought new furniture. The furniture store offered a financing option which stated that it would be “0% interest for one year.” I’m all for taking advantage of 0% interest. When I do though, I make sure that I have the cash to pay off what I owe. My co-worker, on the other hand, did not have the cash to pay in full and took the payment option hoping he’d have the cash when the 0% interest ended. He said that he didn’t think it would be too bad, because at least he didn’t pay any interest for a year and if he was able to come up with the cash soon, he’ll only incur the interest payments starting at the expiration of the 0% period. But he said that was learned that this financing option was actually “deferred interest.” These offers are misleading. As opposed to true 0% interest offers, where you are not accruing any interest during the introductory promotional period, a deferred interest account is actually accruing that interest during those months and you’ll have to pay all the accrued interest if you do not pay off the balance in full by the end of the intro period.

The Extended Warranty

It’s possible that having an extended warranty might come in handily for some people, but I’ve never gotten it and think that it’s a waste of money. With extended warranty, I think most people overpay, never use the warranty or the warranty won’t cover what it is that you need it to cover. There’s also the manufacturer’s warranty and extended warranty protection that some credit cards offer when you make the purchase with that card.

A friend of mine purchased an extended warranty for his smartphone. Smartphones are expensive and he didn’t want to have to pay for an expensive repair bill if anything were to happen to it. The extended warranty was “ONLY” $8 or $9 a month. After about a year, the screen of his smartphone cracked when he accidentally dropped it. No problem right? He has an extended warranty! His smartphone was replaced, but they told him that there was a $100 deductible! So basically, he paid about $8 to $9 a month for a year and on top of that, still had to pay another $100 to have the phone fixed. How much would it have cost out-of-pocket if he went to a repair shop? About $100!

Bait and Switch

When I was looking to buy a car, I saw some advertisements offering really good deals. Deals that seemed too good to be true. When I arrived, the salesman would tell me that I just missed it! Someone had already bought that great deal of a car…but there was a similar though more expensive car available. Classic bait and switch.

The Fine Print

During that same time period when I was car shopping, I went to a dealership to look at a car which had a price which seemed too good to be true. The salesman explained to me that the price was the price AFTER the down payment. And, yes it did say that in the advertisement in teeny tiny letters on the bottom. It also mentioned that I’d have to use their financing.

Exit through the Gift Shop

I’ve noticed this a lot more often now that I’m a parent. It seems that a lot of kid-oriented places like theme parks have the gift shop right by the exit. As a matter of fact, you cannot exit unless you go through the gift shop. They know it’s tough for some parents to say no to their child, and by forcing everyone to walk through the gift shop, they know they can count on the kids to persuade their parents to buy something.

What other things should consumers watch out for?

Live Like a College Student

after college
To many recent college grads, the often repeated financial advice is to continue to live like a college student. It makes sense, since a recent college grad is generally used to living a more frugal life. If you continue to live without inflating your lifestyle, you’ll save a good amount of money. However, even back when I was in college, many college students weren’t living like college students. Many took extra student loans and used credit cards to buy nice clothes, go drinking, go on spring break vacations and even buy fancy expensive cars. Apparently, they figured that once they graduated and received a steady paycheck, they would easily be able to pay off that debt. Unfortunately, most realize that once in the real world, with living expenses and lifestyle inflation, the debt just accumulates.

So rather than advising new grads to continue to live like a college student, let’s just tell them to live frugally. Billionaire Mark Cuban recently gave that exact advice to those in their 20s. He told them to live cheaply, and to use their 20s to pay off student-loan debt, avoid credit-card debt, and build savings. He explains that the cheaper you can live, the greater options you will have, whether you are building your own business or building a foundation for a successful career. He says that paying off debt and establishing a nest egg is far more important than buying a fancy house, car, and clothes. This is great advice, and your future self will thank you for following it.

Going from being a college student to a full-time worker, some lifestyle inflation is inevitable and understandable. You’re probably making much more than you’ve made in your life, though probably working more hours also. Spending that money might be awfully tempting if you don’t have a plan and financial goals. So what expenses do many new grads get caught up in?

Housing: This is probably the biggest expense in most people’s budgets. Sure, you might feel like you’ve had enough of living with roommates, and want your own apartment, but it’s much more affordable when you split the rent. Going back home to live with mom and dad may be an option for some and shouldn’t be discounted. I think after the 2008 recession, the stigma of living home with the ‘rents has subsided, though I’m not sure there ever should have been such a stigma.

Car: If you live in a city that has reliable public transportation, there may not be a need to even purchase a car. If you have a car from college, don’t rush to upgrade. I was driving my car from college 8 years after I had graduated. I had a friend from college ask me incredulously why I was still driving my car from college when he saw me years after we graduated. That didn’t bother me, though, as the car still ran fine and I didn’t have any car payments to make. Having a fancy car just wasn’t as important as not having any monthly payments to make.

Food: Eating like a college student doesn’t mean you should continue to subsist on Ramen and TV dinners. As a matter of fact, if you haven’t learned to cook by now, it’s probably a great time to learn. If I can learn to cook, you most certainly can as well. Cooking at home is much more affordable and healthier as well. To save on groceries, read my post with tips on that. And for tips to save money when eating out, read this.

Entertainment: You’re in your 20s, who I am to cramp your style and tell you to live like a hermit. You’re young. Have fun and enjoy life! Just make sure not to go overboard. There are plenty of things that you can do that won’t wreck your budget. Honestly, my best memories from my 20s are experiences hanging out with friends and family. More often than not, it didn’t matter what we were doing. And also remember that “shopping” should not be a form of entertainment. By getting rid of the consumer mindset early in life, you’ll save yourself a lot of stress and money.

By not taking on debt and having a healthy savings rate, you give yourself options and set yourself up for a financially bright future. Money, or the lack of it is often a hindrance when making decisions or when facing obstacles that life tends to throw at you. Having no debt and a good amount of savings gives you choices. Taking risks in your career or in your personal life is much easier at this point in your life, but not having money will be a huge impediment. Have a great idea for a start-up and want to quit your job to fulfill this dream? Not happening without some savings. Stuck in a rut and suffering from wanderlust? You can’t travel the world if you’re broke. Hate your job and want to take a risk by jumping into a different career track? It’s a lot less risky if you have an emergency fund.

Did you continue to live like a college student after you graduated?

Are You a Brand Worshipper?

Apple_logo_black_svg

When I was a little boy, I loved playing with my toy cars and had a big collection of them. One day, I asked my dad which one of my toy cars was his favorite. He pointed to a white Cadillac DeVille convertible (the one Boss Hogg drove from the show Dukes of Hazzards). He asked me which one was my favorite. I pointed to an orangish-brown no-name station-wagon-looking car which was falling apart. “Really, why?” he asked. “Because it looks like your car!” I answered. (My dad drove a brown Chevy Malibu back in the 1980s) Ahh, such a young innocent mind, unpolluted by consumerism and the hypnotism of marketing ad execs.

Speaking of cars, a former neighbor of mine drove a Porsche 911. One day, I saw his wife get out of the car and she was visibly pregnant. My wife and I congratulated them as we just had a baby and remember what an exciting time it was. I also thought to myself: I guess he’ll have to get rid of that Porsche of his! I may or may not have had a smirk on my face when I thought this. I know, I know…I can be a little envious at times…I’m trying to work on it. Well after the birth of their baby, he did indeed get rid of the Porsche 911. No, he did not start driving a minivan. He started driving a Porsche Cayenne!

For all you Apple Fanboys and girls, you remember Apple’s Big Event this past September. It was a highly anticipated event as Apple was announcing new products and upgrades. There were lines popping up at Apple stores even before ANYTHING was announced! Before the event, there were rumors that Apple might be coming out with a line of watches. An iWatch perhaps? Jimmy Kimmel had one of his assistants go out to Hollywood to tell people that a Casio watch (with an Apple logo on it) was the upcoming iWatch. Watch the reactions of the Apple Brand Worshipers:

 

I found the clip pretty hilarious. It seems that Apple can do no wrong in the eyes of the consumers who worship the company and its products. I don’t want to bash Apple products. I have an iPhone so I shouldn’t be a hypocrite right? Apple products can be cool and intuitive to use. But with any product, sometimes we have to ask ourselves if we like it because of its functionality and what it helps us do, or if it’s because of the brand name.

So why are people so brand conscious? One reason seems to be that owning certain brands displays our status. Some see brands as a way to signal their individuality or demonstrate a degree of superiority. Having the same brands help consumers connect with each other and strengthen their sense of belonging to a social group. I’ve heard one too many Apple vs PC and Apple vs Samsung debates where the two groups are adamant that the product they support is superior. Those debates can get heated! Being part of a brand offers membership in a community with shared values and interests. It provides the consumer with a unique and satisfying personal identity.

Nick who blogs at Pretired.org wrote an interesting post related to this topic where he complains about Harley riders on their loud bikes:

The Harley brand is all about how it makes riders feel about themselves. They throw a leg over the bike, rev up their obnoxious machine and imagine that all the world is in awe.

Harley Davidson, Apple, Nike, Louis Vuitton, Manolo Blahnik, Hello Kitty, Starbucks, Trader Joe’s, Ikea, among others enjoy a cult-like following. Consumers can be extremely passionate about the products that they buy.

“We love brands. We feel attached and loyal to them. We put them on a pedestal and worship them. The textbook explanation is that there is an underlying, magical essence that only good brands share. A great deal of hard research and attention has focused on finding and explaining this slippery essence. But that approach has led us down a long, dead-end street,” says Joan Khoury in a Forbes’ article.

There are internet forums dedicated to many of the cult brands and organized meetings where fellow brand worshippers can meet up and talk about the latest things involving those brands.

“Brands are the new religion…They supply our modern metaphysics, imbuing the world with significance…. Brands function as complete meaning systems,” says Douglas Atkins, author of The Culting of Brands: Turn Your Customers Into True Believers.

I don’t understand the emotional connection and devotion to inanimate objects. Such strong loyalty to a brand doesn’t seem to make sense. Why the extreme enthusiasm or devotion to a brand? I like certain brands. If I’ve bought products from a certain company and find they have excellent customer service and make quality products, I’d probably mainly buy those products. But I wouldn’t just buy every product they make no questions asked, nor would I have undying devotion to the brand.

Do you worship at the altar of Brand name products or know others who do? Why do you think people feel so strongly about certain brands?

Are You a Sports Fanatic?

credit: freedigitalphotos.net by arkorn

credit: freedigitalphotos.net by arkorn


Are you ready for some football? This is the opening weekend of the NFL season, and I’ve watched a grand total of 0 games. I did watch some highlights and a part of the Sunday night game, but that was it. Granted, I’m a Giants fan and they don’t play until tonight, but I’m not sure I’ll catch that in its entirety either. This type of behavior would be unheard of for me back in my sports fanatic days.

As I have mentioned in the past, I’ve never had cable television and didn’t have it growing up. I loved watching the NFL, NBA and MLB, and while football wasn’t a problem since it was generally available on broadcast television, I often couldn’t watch most Knicks or my Yankees on television (well Yankee games were somewhat available). I would listen to the games on the radio. No, I’m not an old-timer growing up before the invention of television, this was the 1980s and 1990s. I would also watch the highlights of the games during the 5 minute sports section of the local evening news. I waited in anticipation of actually seeing the highlights of what I heard on the radio! I also READ the box scores in the next days newspaper and knew every player on every team, even the last man on the bench. So, yes, I think I can say that I was a sports fanatic.

I still remember vividly watching the Knicks take on the Bulls in a crucial Game Five of the 1993 Eastern Conference Finals (some playoff games were available on broadcast television). In the final seconds of the game, with the Knicks trying to take the lead, Charles Smith of the Knicks attempted 4 layups but they were either blocked or he missed. The Knicks would go on to lose that game and the series. I was devastated! I ripped up a nearby newspaper which had Michael Jordan’s face on it. I screamed in anguish and turned off the television, and stormed off into my room. My dad was watching the game, when I suddenly turned it off and vented my frustration. He came to my room and asked me why I was making such a big fuss. He said that it was just a game and that the players make millions of dollars playing it. I’m not sure that was too reassuring or whether I cared what he said at that point, but he’s right.

Now, there’s nothing wrong with being passionate about sports. It is highly entertaining and it’s wonderful to have something to follow, to cheer for. However, with the great costs which is generally involved in watching sports or attending sporting events, sometimes, you need to reevaluate your priorities. Natalie who blogs at FinanceGirl posted an article recently which mentions a listener question on the Dave Ramsey show. The listener wanted to spend $1500 to go to a football game, and yet did not have an emergency fund saved. Ramsey said that while he loves sports, “it’s a game; you don’t put that ahead of your family’s financial foundation.”

I know many people who are not in the best financial shape, but go to great lengths to follow their favorite teams. They travel to away games and have season tickets to the home games, and pretty much nothing can prevent them from missing any game. They put watching and cheering for their team as priority #1, no matter the costs (financial or otherwise). Watching sports not only costs hundreds of dollars (whether you buy tickets to games or have a subscription that shows the games), it also takes up a lot of your time.

Once again, there’s nothing wrong with watching sports. Just remember that ultimately, “it’s only a game.” A game where the owners are raking in billions and the players are making millions from the money spent by the fans. I’ll still watch games, but I’m no longer a sports fanatic. Although even as a sports fanatic, I’ve never spent a whole lot of money on it. I’ve never had a cable subscription and have only attended a few basketball and baseball games. Football tickets were always way too expensive. Nowadays with the picture quality of televisions, I wonder why many fans still spend hundreds on tickets. If you like the raucous atmosphere of being at the event, you can have your sports fanatic friends over or go to a sports bar.

How about you? Are you a sports fanatic? What’s the most you’ve spent on a sporting event?