Tag Archives: credit cards

Successfully Launch Into Adulthood

after college

A few of my co-workers have mentioned that they are postponing their retirements so they can “help out” their adult children or soon to be adult children. I think it’s great when a parent can lend a helping hand to their children as they transition to being an adult, although teaching them financial skills is often better than just giving them a handout. I also have no problems with a child living at home with their parents as they settle into adulthood, as long as they use that time to improve their financial circumstances by saving and investing their money. But by taking care of every aspect of a child’s financial life, he or she will never learn these important life skills. Here are a few things that one needs to learn financially as they become adults:

Credit Cards

Many people entering adulthood already have credit card debt along with student loan debt. You may think that this is the norm, and it may well be, but don’t treat it as such. Treat it as an emergency! Having high interest credit card debt will set you back financially. If you have credit card debt which was not accrued paying for life essentials like food and shelter or getting to and from work, immediately cease spending on non-essentials until you have paid off that debt. Contrary to what some may say, credit cards are not inherently evil. A credit card is only a tool. If you pay your balance off every month and having a card does not tempt you to spend more than you usually would, it can be a great tool. (If you cannot handle the responsibility of a credit card then I’d definitely recommend using a debit card/cash only) Many smart users of credit cards earn lots of points which can be redeemed for travel or cash.

Credit Score

Another important aspect of having a credit card and using it responsibly is that it builds your credit score. Why is a great credit score important? You want to buy a house? You get the best interest rates with a high credit score. Same goes for financing a car. You have student loan debt like many this generation do? You better have an excellent credit score if you want to refinance your student loan to a lower rate. You will only qualify for credit cards with the best bonuses if you have a high credit score. Many employers will also check a prospective employee’s credit score.

Budget or Anti-Budget

So you’re an adult now and you’ve got bills to pay. You’ve got to make sure that you have enough money to cover your expenses. If your expenses exceed your income, then you’ve got a problem. Making a budget probably isn’t much fun and many people scoff at it. However, with many online budgeting sites, like Personal Capitaland Mint, it makes budgeting easy to do. No need to break out your excel sheets and list out all your expenses. I will be honest though, I don’t really budget, but instead I have an “anti-budget,” which is a term coined by Paula Pant who blogs at Afford Anything. I list out my expenses and figure out how much I should be able to save. I make sure I save that amount each month and don’t stress about my spending. Whether you decide to budget or use an “anti-budget” will be determined by your personality.

Live below your means

I remember many of my friends who graduated from college and immediately went on a spending spree. If you have a full-time steady job, you probably have more discretionary income than at any point in your life and it’s tempting to inflate your lifestyle. However, it’s in your best interest to continue living like a college student. Buying a new car, expensive outfits or even buying a house does not make you an adult! Like I said above, if your expenses exceed your income, you’ve got a problem. You’re young and saving for the future may be the furthest thing from your mind, but this is the best time to start saving and investing. The magic of compounding works if you give it time, which is why it is important to start early.

Investing

I was talking to a friend, who is in her 30’s about investing, and she said that her mom handles that for her! And, no, her mother is not an investment advisor. Maybe you don’t have an interest in investing, but it’s in your best interest to learn about it. No one will care more about your money than you do, plus it is something that is important for your future financial health, so you might as well learn about it now. How do you expect to save enough to retire if you don’t have a basic understanding of investing? Living below your means and saving is important, but it is not enough! You want to make your money work for you. Stuffing it underneath your mattress won’t earn you anything. Neither will putting all of it in a savings account earning less than 1%. Spend a few hours learning about investing by reading the Bogleheads website or JL Collins’ stock investing series.

Quick Tip: When it comes to paying bills and investing/saving, make it automatic. It makes life easier. When it comes to bills, you won’t worry about late payments. As to investing and saving, it’s a great way to pay yourself first so you avoid the temptation of spending it. It is also a great way to get into the habit of saving and investing. However, make sure to review your statements to make sure everything is correct.

Cooking

Wait, I thought we were only talking about finances? Cooking is an important life skill, and it can also save you a lot of money. Cooking your own food at home is not only more affordable, but it is healthier. Cooking is not rocket science, if I can do it, pretty much anyone can too.

Learn skills

Just because you’re out of college, doesn’t mean you should stop learning. Learning life skills is important, but so is learning skills that will help you advance in your career. Learning new skills is very convenient as you can do it online using Coursera or Udemy. For certain courses, you may be able to receive a certification as well.

Side Hustle

You’re already working a full-time job, who wants another job? Maybe you want to earn some extra cash to build up your savings or pay off debt. Employees are expendable these days so it’s a good idea to have another source of income. Also, having a side hustle might feed your entrepreneurial spirit or passion and possibly replace your full-time income. Having a side job is a lot more flexible nowadays and often will not require you to take a job with set hours. Here’s a list from The College Investor of 50 ways to make a side income. You can also check out a few more ideas from David Carlson who runs the blog Young Adult Money as well as his book Hustle Away Debt: Eliminate Your Debt by Making More Money.

What other financial skills should young adults learn as they transition into adulthood?

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?

This post contains affiliate links

If it’s too good to be true…

credit: freedigitalphotos.net by digitalart

credit: freedigitalphotos.net by digitalart


When I was a kid, I loved entering contests and trying to win prizes. I remember watching the sweepstakes clearing house commercials and hoping that Ed McMahon would come to our house to present us with the $1,000,000 check. One time, at Great Adventures, I entered a drawing which included prizes such as a car and vacation. I filled out my father’s information because I was too young to collect the prize. Well, I received a letter in the mail saying that I had “won.” There was a catch though…there always is, isn’t there? It said that you had to go to some timeshare presentation before collecting the prize. My dad said that it was a scam, that they will try to sell you something with high pressure sales tactics, and that he wasn’t going. I pleaded with him to go and collect my his prize! He said to me, “if it’s too good to be true, it probably is.” Well, I’m not as naïve as I was when I was younger so I know that there are scams out there. But there are also some things out there seem too good to be true, yet really are true!

Travel Rewards

No I wasn’t able to get that vacation prize because my dad didn’t go to the presentation, but yes free travel does exist! Before I got into the travel rewards game, I thought that it was too good to be true, or that it was reserved for businesspeople who racked up a lot of points by traveling a lot. Well, I never travel for work and I didn’t want to damage my credit so I passed on it. However, I started reading different sites and blogs about the amazing places you can go using these rewards, and I got very excited. My fears of a huge ding to my credit was lessened when I read How Opening and Closing Credit Card Accounts Affects Your Credit Score by Jonathan from My Money Blog. I’ve only opened a few credit cards to get the bonuses, but it’s been pretty successful. I’ve been able to stay at luxurious hotels for free and transferred some rewards to let my parents fly to Toronto for free. They were planning on taking the bus or train from NYC! Now you know where I get my frugality!

Risks: There will be some impact to your credit score, but it is not as big as you may fear. When applying for credit cards to get the bonuses, make sure you know the rules. The cards usually have a spending requirement which you must meet within a certain period of time to get the rewards. And of course, DO NOT SPEND MORE THAN YOU NORMALLY WOULD and make sure to pay your balance in full each month.

For more information, Holly from Club Thrifty often writes about travel rewards. Also, Brad from Richmond Savers offers free travel rewards coaching if you want an expert to help you. Yes, I know what you’re thinking…”Free coaching…that sounds too good to be true!” Don’t worry, Brad is legit and, no you will not have to pay for the coaching.

Staples Freebies and Money-makers

Staples is one of my favorite stores…after Target. I never spend money on copy paper anymore, Staples is always running deals where the paper is free after rebate. Their Staples Easy Rebate program makes it very easy. This is not the rebates of days gone by where you have to cut out a proof of purchase and mail it in with your receipt. It is all done online. I’ve gotten batteries which were free after rewards and other office supplies for free. Even better, there are times that when you combine the deal with a coupon, you can actually make money when you get the rebate check.

Risks: Make sure to submit the rebate immediately so you don’t forget. Don’t spend more than you would have. And, make sure you know the rules.

Rebecca from Stapler Confessions posts weekly picks at Staples and shares her tips on how to get freebies and make money there.

Cash back and Swag Bucks

Many probably don’t take advantage of these, but they are quite easy. Maybe people don’t get excited about it because it’s just a small amount of money, but it adds up. Getting a rebate from things I buy normally is a win in my book. I surf the web anyway, so why not get some freebies out of it. I always use a shopping portal such as Ebates to earn cash back when I shop online. There is really no reason I can think of NOT to use a shopping portal if you’re shopping online. There is no cost to you for using it. With Swagbucks.com, you get paid in swagbucks for searching online and filling out surveys. Don’t worry, you can trade your swagbucks in for gift cards at Amazon, among other stores. For a more in-depth explanation on Swagbucks, check out “Got Gift Cards?” by Dee who blogs at Color Me Frugal.

Is there anything else that is too good to be true, but is indeed true?

How Much is in Your Wallet?

credit: freedigitalphotos.net by Stuart Miles

credit: freedigitalphotos.net by Stuart Miles


I have $89 and a coupon for toilet paper. I’m in the minority (with regard to the amount of cash in my wallet, not the coupon…I don’t know whether most people carry coupons for toilet paper!). Fewer and fewer people actually carry cash with them according to a report on Bankrate.com. The report seems to relate the amount of cash one has in their wallet with their overall financial security. I’m not sure there is always that big of a correlation. I carried a decent amount of cash in my wallet even when I had a lot less money. Yes, even in college. I had very little in my bank account, but I still carried cash in my wallet.

So what are the reasons for and against carrying cash?

Let’s start with against:

Credit Card points and bonuses
Oh, I do love earning points from swiping my credit card. You don’t get points or rewards by using cash. Now, I don’t use my credit card just to earn points, but I love earning cash back on purchases that I would normally make. I earn 5% cash back at the gas station, supermarket and at Amazon. Places I normally go to make purchases. Plus, for those who are churning cards, you have to meet those spending requirements to get your bonus.

Purchase Protection
When you make a purchase with a credit card, you can always dispute the charge.

Cash is Dirty
Check out this infographic John from Frugal Rules posted. So 90% of the bills in the U.S. have traces of E.Coli or staph infection! Yea, I think I’ll have to use hand sanitizer after I touch my money from now on.

Getting Change
I don’t know about you guys, but I really don’t like carrying coins. I rarely get to spend coins, unless they are quarters which I use for the laundry. Sure, I guess I can either roll them up and bring them to the bank, or bring it to a Coinstar machine. But the jar of coins in my apartment has been sitting there for years.

Easier to Track Spending
If you sign up for Mint or Personal Capital, you can link your credit cards to the site to track your spending. By using cash, you’re stuck with inputting your spending manually.

Security
A robber can’t steal your cash if you don’t have any right? You can always cancel your credit card, and most times, the credit card company will not charge you for unauthorized purchases made to your card. Although, not having any cash might make a robber mad. Ever hear of mugger money? Maybe this should be in the “reasons for carry cash” category.

Now for the reasons why you should carry cash in your wallet:

Cash Only
Some stores don’t take credit cards! I was getting my watch repaired by a street vendor in Chinatown. A girl who was also getting her watch repaired asked the vendor if he took credit cards. No, that street vendor did not take credit cards. Most street vendors and many small mom and pop stores don’t take credit cards, and if they do, they often have a minimum spending requirement.

Splitting a Check
I went to dinner with a group of friends a few weeks ago. When it was time to pay the bill, one of my friends asked me to “spot him some cash” because he didn’t carry money with him. Those Chase commercials make it seem easy…they just “QuickPay” each other the money, but I’m not sure those apps are as prevalent yet. Maybe I should look into that so no one has to borrow money from me in the future when splitting the check.

Avoid Temptation
Some people would be too tempted to just charge things with their credit cards if they only used that, so it’s better they use a cash only system. Once the cash is gone, they can’t spend it. Plus, seeing the amount of cash you have in your wallet probably makes you mentally think twice when spending it.

Credit Card Fraud
Recently, Target’s credit card as well as debit card data was breached causing many of their customers’ information to be compromised. Many other stores have had their systems hacked, as the many companies have been slow to implement more secured systems. By using cash, you won’t run the risk of having your personal information compromised.

Merchant Fees
Well, this doesn’t really affect the purchaser, but some people hate the fact that the credit card companies charge the merchant a fee every time a customer swipes their card. They argue that all the credit card users are raising the cost of goods sold because, inevitably, the cost of those fees are reflected in the things we buy. As for me, even if a small mom and pop store takes credit cards, I probably won’t swipe my card for a pack of gum. I feel bad making them pay a merchant fee. I’m not as altruistic when it’s one of those big box stores though.

Cash Discount
Many stores will give you a discount when paying with cash. You are more likely to receive a cash discount at a smaller store, not those big box stores. You often see the difference in cash versus credit prices at the gas station. I use credit though because I’m getting 5% cash back.

Blackout/Disaster
About 10 years ago, there was a blackout in NYC and some surrounding areas. In the case of a blackout or a natural disaster, it’s very likely that electricity is out and you won’t be able to use your credit or debit card. You probably won’t have access to the ATM to get cash either. So, sometimes it’s a good idea to have some cash with you.

So how much is in your wallet? If you don’t have much cash on you, why is that?