contracts

The Fine Art of Negotiating With Your Financial Institution

Annie Mueller — Wed, 06 Jun 2018 08:00:22 +0000

We recently sold our house to buyers who were eager to move in. No problem; we scheduled a quick closing date and began making arrangements. We called the bank to request a payoff statement, something that's usually accomplished in a matter of minutes.

"Sure," they said. "It will be there in three days."

That seemed a little weird to us, but we had four days until the closing. We called the next day and were told it would be there in 24 hours. "Even better," we thought. We were so naive.

The night before the closing was scheduled, the title company let us know they still hadn't received the payoff statement. By this time, the bank's service center was closed. The next morning — the day of the closing — we were on the phone once again.

"It's in the queue," they said this time. "It will be sent soon, but it's impossible to know when, exactly."

The bank rep told us there was no possible way to send the statement immediately. We were polite but insistent. Finally, after over 30 minutes of being told it was impossible, they transferred us to a manager.

"What do you need? Your payoff statement? Sent immediately?" she asked. "Sure, no problem. I can do that right away."

The title company had the statement in less than five minutes.

Why we're bad at negotiating

I share this little story with you because people are often intimidated by financial institutions. There's complicated terminology — legalese, corporate jargon, and specific "money terms" that sound like you need a doctorate to understand them. Plus, people often feel out of the loop when it comes to particular money matters, which can lead to hesitation and uncertainty. If you're not sure of your own financial footing, how are you supposed negotiate with the pros?

But it's important that you learn. If you don't negotiate, chances are every agreement you enter with a financial institution will favor that institution far more than it favors you. Insecurity about your poor credit, past financial mistakes, or a current bad hair day can make you feel like you don't have the right to ask questions or stand up for yourself.

The consequences of not negotiating can be dire. In our little story, if we hadn't pushed until we got what we wanted, we might have lost the sale of our house. So let's learn how to negotiate. (See also: 8 Negotiating Skills Everyone Should Master)

Get to the right person

Negotiating with a financial institution is a lot different from negotiating with an individual — like, say, your landlord. Individuals make decisions based on many factors. They could be influenced by something as simple as how good — or bad — of a mood they're in. It all comes down to the person.

Institutions operate, presumably, on a set of rules. The individuals within the institution are motivated to adhere to the rules because it's safer for them. The less secure they are in their role, the less willing (and sometimes able) they are to negotiate.

The workaround is to go as far up the chain of authority as you can when negotiating. Generally, the more authority an individual has within a business, the more job security they have and more freedom to make decisions. You want to work with someone who doesn't feel threatened by your request. If you feel that the person you're working with is unable or unwilling to meet your terms, keep asking for the next person up the ladder.

Find the real rules

There are rules, and then there are the real rules.

Generally, the first people you talk to are working with the rules. There are lots of these rules, and most of them sound like "No." They are designed to protect the institution from loss. They are written into the scripts used to train the people who work there.

To negotiate effectively, you'll need to keep asking questions until you push past the script and find the real rules. For example, you might be told, "There's no way we can offer that kind of discount to you; it's against our policy." This is your cue to ask for a supervisor; someone who can override the policy.

When you get to that someone, you find out the real rules, which might be quite different: "Well, we don't usually offer discounts like that. The only way I could do that is if you sign a two-year contract with us." Now you know the real rule, which is, "Only offer deep discounts to get long-term contracts."

Once you know the real rules, you can use them in your negotiating: "I understand you need to get a long-term agreement in order to give me the discount I want. But that's a big commitment for me. I'm interested, but I'll need a lower interest rate in addition to the discount." (See also: 10 Negotiation Mistakes That Will Destroy Your Deal)

Be excruciatingly courteous

Bad manners really won't get you very far. Good manners alone will not win your negotiation, of course. But they can open the door. They can help you get to the right person. They can help you extend the conversation so you're able to see your options.

Good manners can also keep you from having to start the negotiation process over again. If you are kind and courteous when you speak with someone, they're more likely to do what they can to help you. They may not be the person with the authority to make the ultimate decision, but all help is valuable.

Being courteous can get you a direct phone number to call rather than the catchall service line, information on general policies that will help you negotiate better, and notes left in your account which get passed up the line with you. These little things will all nudge you forward toward your goal.

Prepare to repeat yourself

You will have to repeat yourself. Over, and over, and over.

Really, negotiating with a financial institution is a test of patience and how many times you can say the same exact thing without snapping. Parents of young children have a real advantage here.

If you want to talk to a person with more authority, you may have to ask five times. That's because of the value at stake in any individual's time. Entry-level people get paid less. Their job is to maximize the gain for the institution and minimize the (potential) loss. It's well worth it for an hourly worker to sit on the phone with you all day long if they can get you to agree to their preferred terms by the end of the call.

And most people will give up — either on getting to the right person, or on getting to an agreement that benefits them — far too soon. Be clear about what you're asking, and be prepared to ask for it over and over.

Remember that you're in charge

There are many scenarios that can involve a negotiation. Maybe you need a business loan, or you're looking for a better interest rate on an existing one. Maybe you're looking to buy or sell a property. Maybe you need to negotiate payment or contract terms. In all of these cases, the institution will make more money by doing business with you than by refusing you. Some interest is better than no interest; any payment is better than no payment. You hold the power here, even if you feel like you are in the subordinate position.

If they won't meet your terms, go elsewhere. Be prepared to do so, rather than just making empty threats. Knowing that you have options is important. When you know you have other avenues, you can feel more confident. And that will make you a better negotiator.

Like this article? Pin it!

This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Get Out of a Car Lease Early

Kat Tretina — Thu, 12 Apr 2018 09:00:06 +0000

Leasing a vehicle is still a popular way to finance a new car. According to Experian, nearly 30 percent of all new vehicles were leased rather than purchased during the fourth quarter of 2017. Leasing comes with some initial perks; you can often get a much nicer car than you could afford buying outright, and it's a tempting option to trade in for a newer model every few years. But the payments and restrictions of a lease can quickly get old.

Whether you are sick of your current vehicle, or can't afford your lease payments any longer, getting out of a car lease can be tricky. However, you do have a few options when it comes to freeing yourself from a car lease that is no longer meeting your needs. (See also: What You Need to Know Before Leasing a Car)

1. Transfer your lease

Easily the most convenient of your options, transferring your car lease is the most popular way out of it. Many dealerships will work with you to get you in a new car. They might buy out your old lease so you can open up a new one with them. If you stick with the same car manufacturer, you're more likely to be able to transfer your lease to a new vehicle.

2. Swap your lease

Some auto manufacturers allow you to swap your lease with another individual. However, you should know that the lease transfer doesn't necessarily remove you from being the responsible party. Should the person who takes over your lease stop making payments, you may still be on the hook for the missed payments. Make sure to carefully look over the terms and agreement before you finalize the transfer.

Additionally, you may be required to make some concessions that lowers the monthly payment for the person who takes over your lease. These payments are usually one-time and range from $500 to $5,000. To learn more, check out a lease swapping site like LeaseTrader or Swap A Lease.

3. Pay the penalty to return the car early

In nearly all auto leases, you have the option of being released from the contract if you pay a penalty fee. It can be expensive and paying the penalty isn't ideal, but if you're determined to get a new car or get out of the lease, paying it might be worthwhile.

Generally, you will need to pay some kind of termination fee in addition to the remaining depreciated value on the car. Keep in mind that the depreciated value can be a lot of money in the end.

4. Trade or sell the vehicle

Many people don't realize that they can, in fact, buy the car out of their contract and sell it independently. This approach may be a far better option than paying a penalty to get out of the contract.

However, buying the car out of your contract can take a bit more elbow grease on your behalf. First you need to contact the leasing company — not the car dealership — and find out how much it costs to buy out your contract.

Once you have this number, you will have to pay an early termination fee. That fee can be in the neighborhood of $200 to $500 in addition to the buyout amount. The buyout amount will generally be less than current market value — but not always. You are more likely to come out ahead if you put a large down payment on your car at the onset of the lease.

Once you own the car, you are free to do whatever you like with it — include sell it. This is a great option if you're sure you can sell the car easily. (See also: Should You Buy Your Leased Car?)

5. Contact the leasing company

If you experience a financial hardship and cannot afford your payments, you may want to consider contacting your leasing company directly.

Depending on your leasing company and your contract, you may be able to work out a temporary alternative payment plan. You could get a lower payment for a few months or even postpone your payments altogether. You'll pay more in interest over time, but it can give you a little more breathing room in your budget while you get back on your feet.

Before you look into options for getting out of your car's lease, it is important to review the terms of your contract so you understand exactly what your options are. Before falling behind on your payments or taking any drastic action, contact your leasing company directly to see what you can do with your car.

Like this article? Pin it!

This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Things You Should Never Hide From Your Landlord

Paul Michael — Thu, 15 Feb 2018 09:00:08 +0000

So, you're renting a place to live. And that means you have a landlord. Whoever is responsible for the house or apartment will be holding you to a set of standards. You'll have signed a contract. Whether you're renting the place alone, with friends, or even strangers, you better be upfront about the following, or you could find yourself out on the street.

1. Your pets

When you look for a new place to rent, you'll see that almost all of them have a pet policy. It will either be no pets allowed, pets OK with a deposit, or a stipulation on which kind of pets you can have (maybe dogs aren't allowed, but cats are).

If you have a pet and are planning to rent a place, you must disclose it to the landlord. It's tempting to think, "Whiskers is so old and small, no one will care," but that's not the point.

The policy is there for a reason. The landlord may not want the additional cleanup involved in getting a house or apartment ready for the next tenant. Some pets can cause damage far more expensive to repair than the security deposit will cover. Whatever the reason, they set the rules, and you must agree to abide by them.

If you are found with a pet, even if it's a pet you bought after you signed the lease, the landlord is well within his or her rights to ask you to get rid of it. They could also evict you for breaching the contract. It's not worth it. Find a place that's pet-friendly, or see if you can give your pet to a caring friend. (See also: 7 Smart Ways to Get Your Apartment Deposit Back)

2. Any new roommates

Many of us have shared a home or apartment with roommates so we can afford the rent. It happens a lot with college students, or when you're living in places like Manhattan or Beverly Hills. If three of you decide to rent a four-bedroom place, and all sign the contract, no problem. But if you decide to move another friend in after the fact, that's trouble.

Whether you're taking money from that person to help with the rent, or just letting them stay for free, you are breaking the rules of the lease. Think of it from the landlord's point of view. He or she vetted you, and anyone else who put their name on the contract. If you bring someone else in, they get by that process unchecked. They're an unknown, and landlords really don't like unknowns; especially if it's their own home they're renting out.

Not only that, but it's possible the apartment or home is only fit for habitation by a maximum number of individuals. Add more, and you could be putting people in harm's way. Whatever the case, you're once again risking the chance of being kicked out on the street.

3. DIY or home improvements you have made

It may be home sweet home, but it isn't yours. You're just "borrowing" it for a set amount of time. The house, and any contents that came with it in the lease, are not yours. Therefore, you don't have the right to start messing around with them.

You may think you're doing the landlord a favor; perhaps you want to rip out the carpet and install a wooden floor, or scrape off the older wallpaper and add something fresh and vibrant. Well, that may not be something the landlord wants.

Now, by all means, ask the landlord if you can do these improvements, and get it in writing if he or she agrees. Chances are, if you're planning to make upgrades that make the place more attractive, you'll get the go-ahead. But never assume, and never keep any work you've done a secret. On the day you move out, you could find your security deposit is not returned because you didn't leave the home in the same state you found it. (See also: 14 Simple Ways to Make an Apartment a Home)

4. Problems with utilities

Utilities may be included with the rent, or they may all be your responsibility, but either way, you should tell the landlord as soon as you notice any problems. Water leaks can start out as minor repairs, but left unchecked, they can lead to thousands of dollars in damages. They can also affect other tenants, and it will all be on the landlord's shoulders.

Electric problems are just as bad. If something is shorting out, it could lead to a fire, and that could be disastrous.

Even if it doesn't seem like anything — maybe just a slight drop in water pressure, a sketchy light switch, or an unexplained increase in the utility bill — talk to your landlord immediately. In this case, a stitch in time really does apply. Oh, and if the landlord has evidence that you concealed the problems, you could be liable for the full cost of the repairs.

5. Broken or malfunctioning appliances

Just like the utilities issue, broken appliances and other fixtures should also be reported to the landlord as soon as you notice them. Again, if the malfunction is caught early, it could mean a simple fix instead of a major repair — or worse, having to replace the entire unit.

Broken or malfunctioning appliances can also cause damage to the apartment. For example, a washing machine that's leaking water into the wooden floors can create issues that may not be caught until months later, and by then, it's a big problem. A stove that leaks gas is obviously a serious health hazard and should be turned off and reported. A furnace that is setting off your carbon monoxide alarm is incredibly dangerous, and makes the home uninhabitable.

If that does happen, call the landlord immediately and get out of the home. Or at the very least, open all the windows if you cannot leave, and stay close to the fresh air. The landlord will be responsible for getting the furnace fixed, or more likely, replaced.

6. You're running a home-based business

Most of the time, the landlord isn't really going to care if it's a small business that doesn't impact the regulations of the area. For example, if you're making extra money selling knitted goods on Etsy, tutoring students, or writing web code on a laptop in your bedroom, it's probably not going to be a big deal. However, other kinds of business can cause problems for the landlord.

If you decide to turn your apartment into a massage therapy facility, or start fixing cars in the attached garage, you could be violating zoning restrictions. And if it is noisy, smelly, and a nuisance to neighbors, you're just asking to be evicted. Check with the landlord before you sign the lease; there will usually be a section in there talking about home-based businesses.

7. You can't find your key

Hey, it happens. Maybe it fell off the key ring, or you misplaced it and have no idea where it is. Even if you have a spare, you need to tell the landlord as soon as you notice your key has gone missing.

Although it's unlikely that it will be used to gain access to the property, you cannot say for sure that it didn't end up in the wrong hands. For your own peace of mind, you should tell the landlord what has happened, as any kind of security risk poses a problem.

If the landlord decides that the locks need to be changed, you will almost certainly be responsible for the costs incurred. You may also have no choice about which firm replaces the locks. If you're handy you could offer to do it yourself and save some money, but it's doubtful you'll be allowed to do that.

8. You're subletting the property

It's very tempting to sublet your apartment or home if you know you're going to be gone for a significant amount of time. Some people also sublet when they know a big event is coming to town, and services like Airbnb make it very easy to do that and make a significant profit for a few days. All of this is a big no-no if you haven't checked with the landlord first.

Some states and municipalities have specific laws regarding subletting. Your lease may explicitly prevent you from subletting. Even if the landlord agrees, he or she may want to have a say in who you choose to sublet the property to, and may insist on a background check that you must pay for.

And remember, if you do sublet and the subtenant doesn't pay you, it's your responsibility to pay the rent. So choose carefully, or you could end up in a world of financial pain. (See also: The Easy Way to Sublet Your Apartment)

Like this article? Pin it!

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Moves Every First Year Freelancer Should Make

Emily Guy Birken — Mon, 30 Oct 2017 08:30:14 +0000

When I started my freelance career seven years ago, I honestly had very little idea of what I was doing. I made some seriously painful mistakes that affected everything from my bottom line to my stress level to my relationships with some of my clients. (See also: The 5 Biggest Mistakes Freelancers Make)

But even though self-employment mistakes are common, they're not inevitable. You can make the transition to self-employment much smoother and easier to handle if you commit to doing the following things in your first year as your own boss. Not only will you lay down the good habits and policies you'll need throughout your new career in self-employment, but these moves can also help your career start off with a bang. (See also: Day Job or Freelance: Which Is Right for You?)

1. Set aside 30 to 35 percent of every paycheck for taxes

One of the double-edged swords of working for yourself is the fact that your paychecks will generally not have any taxes withheld. While it feels pretty good to have the full amount of money you earned coming directly to you, it can really mess up your finances if you don't plan ahead for taxes.

Many of the newly self-employed can get themselves into trouble by assuming they'll pay their quarterly estimated tax bills with whatever funds they have received as of the quarterly estimated tax due date. But Uncle Sam doesn't care if you have a slow work spell or are waiting on some payments that are not quickly forthcoming from a client — he wants you to pay the taxes you owe on time. (See also: Avoid IRS Penalties With This Simple Estimated Payment Strategy)

You can bypass the quarterly stress of finding the necessary funds to pay your tax bill by specifically setting aside 30 to 35 percent of every check you receive. This does take a depressingly large bite out of your paychecks, but it gives you the peace of mind to know that you will be able to cover your estimated tax payments. In addition, by putting this money into a savings account, you can earn a little interest — which already puts you financially ahead of folks who have their taxes withheld.

If your diligent savings of 30 to 35 percent of each paycheck means you have more money than you need for taxes in your first year of self-employment, then you can always use the leftover money to reinvest in your business or smooth over any lean months in your second year of self-employment. (See also: 7 Things I Learned About Money After I Went Freelance)

2. Hire an accountant

Speaking of taxes, they are going to get more complex now that you have begun working for yourself. While it is certainly possible for you to complete your taxes all by yourself as you've done in the past, the money you spend on an accountant for your self-employment taxes can both save you time and lower your stress. (See also: 5 Free Accounting Tools for Freelancers)

Asking for referrals from trusted colleagues or small business owners can be the best way to find the right accountant or tax professional for your needs. Don't let this important part of self-employment go on the back burner. Having an accountant throughout your first year of self-employment can help you to accurately pay your quarterly estimated taxes on time, and take advantage of deductions and other tax benefits that you might otherwise miss.

3. Determine your payment floor

During my first year as a freelancer, an educational company contracted me to write lesson plans for English teachers. I had been working as an English teacher before my freelancing career, and I loved that this company was committed to using humor in all of its resources. I thought it was a perfect fit, and I quoted them a price per lesson plan that felt reasonable for my expertise (and comedic chops). They offered me a fifth of what I asked for. Since I was worried that I wouldn't be able to actually make a living as a freelancer, I took the job.

It was a huge mistake.

Here's why: The amount of work that I put into each lesson plan meant I was earning less than minimum wage for my hours of toil. It took me months to get through the initial contract of 10 lesson plans, in part because I knew how little I was making and it was difficult to prioritize this client over those who paid more for less work.

Even though the company loved my work, we parted ways after I finished the first round of lesson plans. They were just as happy to get a quicker and less-funny turnaround from another freelancer who did not have my expertise. I was glad to no longer be working so hard for a company that did not financially value my contributions.

After this experience, I learned to figure out my payment floor — the least amount of money my time was worth. Once I knew my payment floor, it became much easier to recognize which jobs were worth my time, and which jobs would leave me feeling overworked and resentful. Knowing your payment floor may seem premature in your first year of self-employment since you feel like you are hustling just to capture enough clients to keep the lights on. But you are better off holding out for clients who value you, rather than taking any job, no matter how low the pay.

4. Build free time into your schedule

There are a couple of common scheduling traps that can trip up the newly self-employed:

Working all the time. Since you are now completely in control of your schedule and your career, and since you presumably love what you do, it can be very easy to throw yourself into your work 24/7.
The planning fallacy. Even after seven years as a freelancer, I still underestimate how long it will take me to complete a project, because it never occurs to me that my kids might get sick, my internet might go out, my research might uncover more complex issues than I anticipated, or that I might be struck down by an unexpected nap after eating too many carbs for lunch.
Lack of discipline. For some newly self-employed individuals, it can be difficult to stick to self-imposed (or even client-imposed) deadlines if you don't have a boss to keep you honest. It's a lot harder to succeed in self-employment if you have trouble sticking to a work schedule.

All three of these scheduling mistakes can be helped by building free time into your schedule. Forcing yourself to take time off from your otherwise nonstop work will prevent burnout and allow you to be far more productive. Having a free afternoon built into each week has helped me to improve my on-time percentage, because it leaves some slack for when life happens and I'm not able to finish things according to my pie-in-the-sky planning assumptions. And anyone who struggles with self-discipline will generally have an easier time forcing themselves to work if they know that there is free time coming. (See also: Self-Employed? Tips for Taking Time Off Without Trauma)

5. Capture excess income in a savings account

When you are self-employed, there will be some months when several paychecks or client payments come in all at once. This can feel pretty great, especially if you can thank your own hustle for making it rain, but it's important to be disciplined about this kind of excess income and put it in a savings account. That's because you are likely to have a low-income month sooner or later, and that excess income can be the difference between you being able to pay your bills as usual and you having to go grocery shopping with couch cushion change. (See also: The SEP-IRA Is How the Self-Employed Do Retirement Like a BOSS)

During your fat-paycheck months, you should not only set aside the 30 to 35 percent you put away for your taxes, but you should also put whatever additional excess income you can afford into a "rainy day" savings account. This account is where you will go to get the money you need to keep everything running smoothly during any lean months. And like your taxes savings account, if you don't end up needing to dip into this rainy day savings account, that means you will have money already set aside that you can potentially invest back into your business. (See also: How to Budget Consistently Without a Steady Paycheck)

6. Insist on clear contracts

Everyone who has ventured into self-employment has at least one story about being stiffed out of payment from a client. For instance, in my first year of freelancing, I was hired to write for a startup parenting website. I wrote several articles for the site, but I was only paid for one of the half dozen pieces I provided them. (See also: 8 Ways Freelancers Can Make Sure They Get Paid on Time)

The client was in the wrong for not paying me — but I also made a mistake in accepting work from them without a contract. Our arrangement was based on nothing more than email exchanges and a phone call. We did not have a contract that spelled out our legal expectations of each other, which meant it would have been very difficult for me to pursue the client for the money they owed me.

In addition, contracts are also helpful for defining the scope of a project and specifying the details of a termination fee. A contract that outlines the specific timeline and deliverables will protect you from having to revisit the same project over and over again for no extra money if your client insists on more edits or revisions or a larger scope than you expected. Similarly, if your client decides to end your project, having a contract that specifies the termination fee you'll receive under such circumstances will protect you from having wasted your time.

Welcome to self-employment!

You can set yourself up for se lf-employment success in your very first year as your own boss. Planning ahead for everything from taxes to lean months to time management to contractual disputes will help you create a self-employment career that you'll love for years to come. (See also: Freelancing: A Beginner's Guide to Doing It Right)

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Easy Way to Sublet Your Apartment

Christa Avampato — Fri, 08 Sep 2017 08:30:10 +0000

Breaking a lease is usually an expensive proposition, but it's a situation that may be necessary for a number of reasons. A new job, moving in with a partner or spouse, or the need for more space are all scenarios where you might need to break a lease. (See also: 8 Moves to Make If You Need to Break Your Lease)

If you find yourself in any of these situations, the best option may be to sublet the apartment. Someone else gets a much-needed place to live without committing to a full-term lease, you don't waste money paying a penalty to your landlord, and your landlord doesn't have to scramble to get the apartment filled before the end of your lease. Everyone wins.

First things first

Check your lease. Is subletting specifically prohibited? If so, approach your landlord. How you approach your landlord will depend upon your existing relationship with him or her. If you can just be honest and explain what you want to do, great!

Assuming that you decide to proceed with subletting, here are a few steps to make the process as smooth as possible.

1. Ask friends and family members first

Before putting the apartment on a listing site, check with your friends and family members. Would one of them be interested in subletting from you, or do they know someone who would? A personal connection and referral almost always beats a random subletter, provided your friends and family members are responsible and respectful of the space.

2. Set boundaries

Are there certain rules that someone who sublets your apartment needs to follow? These could include no smoking, sorting the trash, collecting your mail, pet policies, or taking care of your belongings for an extended period of time. Make sure you're clear and upfront about these types of expectations so there are no gray areas down the road.

3. Have a proper sublease in place

Subletting an apartment shouldn't be done on a handshake, even if it is between friends or family members. To protect both parties, draft up a simple lease. There are a number of free templates available online. Rocketlawyer is a popular option for this, as is LawDepot. The lease should include the monthly (or weekly) rate for the sublease, the beginning and ending dates of the lease, the name of the person (or people) who are going to be living in your apartment, and any of those boundary specifics mentioned above.

4. Collect a security deposit

It's a smart idea to collect a security deposit from the person or people who sublet your place. This can be helpful if the renters need to break their sublease or if there is damage done to the apartment. Remember, even though you're subletting, you are still legally responsible for the condition of the apartment when the lease is up, and if there are damages, your landlord may charge you for the repairs.

5. If subletting isn't an option, consider a swap

A few years ago, I wanted to try living in California for the summer. Rather than sublet my place in New York and find a sublet in California, I arranged a swap. A mother and daughter stayed in my apartment while I lived in their condo in Santa Monica. We followed all of the same steps above that I outlined for a sublease and we both got a summer experience we would never forget.

In my situation, I wrote a post on my blog and someone found the post. It all worked out in a pretty magical way. If I tried this again, I would work through my network first to see if I had any friends, family members, or friends of friends who would be interested. If that didn't work out, I would try one of the new housing swap services that have popped up since I did my home exchange.

HomeExchange.com has more than 65,000 homes in 150 countries. Members pay $9.95 per month to list their property with the service. They facilitate over 120,000 swaps per year.

Love Home Swap is another site with a few different swap models. You can do what they call a "Classic Swap" in which you go to someone else's home and they go to yours for a specific amount of time. They also have a "Points Swap." Rather than having to agree on dates and location, you rent out your place whenever it's available for points instead of money. Then you can use those points to make a reservation for an available property on the site when you want to travel.

Before you use a service to facilitate a swap, make sure the site is secure, that it verifies each user's identification, and the service has legitimate reviews on sites like Yelp. With any swap, have a legal agreement in place between you and the other party to make sure there are no surprises and that all terms are clear.

If life leads you in a direction away from your current lease, don't resist that call. There are numerous ways to manage a lease rather than have it manage you.

Like this article? Pin it!

This article is from Christa Avampato of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Questions You Should Ask Before Hiring a Robo-Adviser

Damian Davila — Thu, 22 Sep 2016 09:30:23 +0000

Many experts predict that robots will soon take over jobs across many industries. (See also: Robots Will Take Over These 5 Jobs Soon — Is One of Them Yours?)

And this trend is certainly evident in the financial industry, where robo-advisers (an automated online service that provides algorithm-based portfolio management without any involvement of human financial advisers) are already taking over a substantial portion of investment management. By the end of 2015, U.S. robo-advisers managed an estimated $50 billion in assets. That value is expected to rise to $2.2 trillion by 2020.

With major investment fund firms, such as Vanguard and Fidelity, deeply in the robo-advice game, many individual investors will need to decide whether to hire the services of a robo-adviser. So, let's review nine key questions you should ask before you trust your money to a "bot."

1. Am I Eligible for a Robo-Adviser?

While robo-advisers are gaining in popularity, not every single retirement plan or investment house is offering them as an option. Some retirement plan advisers eschew automated portfolio management to differentiate themselves from the competition. This means that your current employer-sponsored retirement account or investment account may not offer robo-advisers.

Even when a robo-adviser is available, you may not be have enough money in your investment account or nest egg to make use of them. Depending on your preferred broker, robo-advisers require a minimum investment balance of anywhere from $1 (WiseBanyan) to $50,000 (Vanguard). There are companies that don't ask for a minimum, but you should evaluate whether opening a separate investment or retirement account makes sense for you. (See also: How Too Much Investment Diversity Can Cost You)

2. What Services Do You Offer?

Just like human financial advisers, not all robo-advisers are the same. Automatic portfolio rebalancing and tax-loss harvesting (selling securities that have experienced a loss to offset taxes on both gains and income) are among the most common services. Additional offerings vary, and may include advice for retirement accounts and access to a human financial adviser. To have a clear picture of all of your options, be sure to review all the disclosures and terms.

3. What Are the Fees?

The main driver behind the shift toward automated wealth-management is the promise of lower fees. After all, hiring the professional investment management services of a human financial adviser can cost from 0.25% to 1.0% of your account balance. On the other hand, with a robo-adviser you can pay as low as $4/month to 0.25% of your account balance (using Betterment) or a flat monthly fee of $10 with the potential to save 10% by paying annually (using blooom).

Be aware that some robo-advisers may charge you nothing for portfolio management, but still send you a bill for applicable trading expenses. For example, WiseBanyan and Charles Schwab Intelligent Portfolios provide free portfolio management free of charge, but invest primarily in exchange-traded funds (ETFs) with moderate to high expense ratios. (See also: 4 Sneaky Investment Fees to Watch For)

4. What Information Do You Need From Me and How Do I Update It?

A robo-adviser is an automated tool that makes investment decisions based on your response to questionnaires and selection of investment criteria. Your input directly affects the actions of the robo-adviser, so develop a crystal clear understanding of the intake process, set of available answers to each question, lead time to process an update, and window of opportunity to make changes. Additionally, ask who you can contact in case you don't understand a question or term.

The Securities and Exchange Commission (SEC) recommends checking with the company whether the questionnaire actually allows you to customize services or forces to fit you into the tool's predetermined options.

5. What Are the Key Assumptions?

This is one of those times that you must read the user's manual in full detail. Every robo-adviser operates within a set of predetermined investment guidelines and economic assumptions. For example, some may limit their trades to low-cost index funds and others may assume an inflation rate of 3% per year. Depending on the assumptions, your fund can have a very different outcome from the one that you expected. Ask for documentation regarding the investment methodology, set of economic assumptions, and list of trading guidelines. The main objective is to spot potential assumptions or guidelines that you're just not comfortable with at all.

6. What Are My Investment Options?

Just as when you hire a financial adviser or financial planner, check for the pay structure of a potential robo-adviser. Some investment houses may limit your investment options to only those from the same investment house, or worse, may receive kickbacks for purchasing specific financial vehicles. Still, you can have a robo-adviser that only trades with a limited set of securities and meets your unique investment needs. To be able to compare apples to apples, find out what the investment options are of any robo-adviser that you're considering.

7. Can the Robo-Adviser Offer Me More Later?

A robo-adviser can be a useful tool for individuals who are just starting to invest, have a low account balance, or have straightforward financial needs. As your account balance grows and your financial situation changes, you may need more advanced wealth management services, such as taxes, retirement planning, cash flow management, or estate planning that can be beyond the scope of your current robo-adviser. Finding out the service tiers of a robo-adviser is also an important criteria so you determine whether or not your robo-adviser can "grow" with you.

8. How Do I Terminate the Contract?

Understand the details of how to end a contractual relationship with the firm and how long it may take to cash out any investments if you decide to stop using the tool. For a robo-adviser involving retirement accounts, inquire about the applicable terms and conditions, if any, for a rollover to an external retirement account. (See also: A Simple Guide to Rolling Over All of Your 401Ks and IRAs)

9. How Do You Protect My Personal Data?

Last, but not least, remember that you're going to access an online service. Check for the steps that the company takes to protect your personal data and the policies in case of a security breach or phishing attempt. Also, ask whether or not the company shares your information with third parties. If so, ask who those parties are and how you can opt out of having your information made available to those parties.

Like this article? Pin it!

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Moves to Make If You Need to Break Your Lease

Paul Michael — Wed, 22 Jun 2016 09:30:24 +0000

Most renters understand that a lease benefits them as much as it does landlords, since it protects both parties. However, if you need to break that lease, you could be on the receiving end of some tough penalties and legal actions. Don't panic yet, though — there are moves that could save you a lot of money… and your sanity.

1. Find New Tenants for the Landlord

The biggest issue landlords have with breaking a lease is the loss of income. The landlord has overhead, including a mortgage payment, HOA costs, water, and more, and they all have to be covered even when the property is empty. This is why there are penalties for breaking a lease — to cover the landlord against loss.

However, if you are proactive and find good tenants to replace you, it's very possible the landlord will waive the fees and let you break the lease. After all, you have brought in new tenants, saving the landlord time and effort, and in most cases, extending the time the property will be filled. (If your lease expires in July, but you bring in someone to rent from March-February of the following year, you've done the landlord a favor).

2. Plead Your Extenuating Circumstances

Landlords are people, too. If you're renting from a big property management firm, you won't have much luck. But if it's an individual, arrange a time to sit and chat, and explain the reasons why you have to break the lease. Be open, be honest, and see what happens. If you have to break the lease to move back home with an ailing parent or relative, the landlord could be very sympathetic, and may do something for you (cutting the early termination fee in half, or waiving it completely). But, don't lie. Making up some bleeding heart story could backfire, and you don't want an angry landlord as an enemy, especially when they have the law on their side.

3. Look for a Contract Breach

If you have to break the lease, you may well be within your rights to do so without any kind of termination fee — if the contract is, in fact, not being adhered to. Remember, the contract is for your protection as well as the landlord's, and the property should be safe and well-maintained. If you have been living with a broken refrigerator, a moldy bathroom, or any other type of problem that makes the property tough to live in, you can use it to your advantage.

However, you cannot just ignore these issues for months and then decide to break the contract. You will need to provide evidence that you asked the landlord to address the issues. Also, take pictures, and keep copies of all correspondence. If you can show your requests for help fell on deaf ears, you will have a great case to break the lease without a fee.

4. Negotiate Payoff Terms for the Penalties

Early termination fees can be very scary. When you see a $1,500 lump sum, it can make you think twice about even considering it. However, landlords can be very flexible if they know they are going to get the money in a set amount of time. Consider asking for an installment payment plan for any early termination fees.

5. Use Your Security Deposit as a Bargaining Chip

You will have put down a substantial security deposit when you signed the lease. Usually, it's around one month's rent, and this can be just enough to cover the costs of the landlord while they find a new tenant. If the property is in a highly sought after location, it will not be empty for long, and that security deposit will more than cover any costs the landlord has. It's much easier for them to simply keep that deposit and avoid a bunch of paperwork, rather than trying to take you to court for fees.

6. Find a Sublet

Ready to become a landlord yourself for a while? Well, try subletting. Now, you may find that the contract forbids you to sublet the property, so you may have to talk to the landlord (or do it without saying anything, and hope for the best). As a general rule, landlords don't really care where the money comes from, as long as the property is well maintained and the tenants cause no trouble. And remember, if you sublet to someone who wrecks the place, that's all on you. Your name is on the lease, so the landlord is going to be reimbursed, either way.

7. Can You Blame the Neighbors or Surroundings?

Do the neighbors upstairs have parties until 4 a.m. every weekend (or worse, every day)? Do the neighbors harass you, or make life hell for you in general? Is the neighborhood itself in serious decline, and no longer a safe place to live? These are all conditions that you may be able to use to break the lease without a termination fee.

Once again, you would have to prove that you asked the landlord to deal with the situation, and that nothing happened. But if you can prove the property became unlivable, you can argue you were "constructively evicted from your property." This is something that can go to court, so you need to be really buttoned-up, and will most likely require legal assistance.

Haggle Over the Early Termination Fee

Landlords would rather have some money than none at all. If you are going to have to pay $2,000 to break the lease, but can only afford $1,000, talk to the landlord about a lower penalty. This is easier to do with an individual than a property management company, as the latter has the backing of corporate funds and on-staff legal counsel. But… it's always worth a try.

Have you ever broken a lease? How'd you get out of it?

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

What You Need to Know Before Leasing a Car

Andrea Cannon — Tue, 01 Mar 2016 10:00:05 +0000

Leasing is now more popular than ever. In fact, Millennial car buyers are leasing 46% more over the past five years because they are able to afford their dream car at a much lower cost. If you've thought about leasing a vehicle, then we've provided what you need to know before visiting the dealer.

Benefits of Leasing

The benefit of leasing a vehicle is that it is a shorter-term option, as opposed to buying a car. A simple way to think of leasing is as a long-term rental option. You will pay for the car while you need it, and at the end of your lease, you'll simply return it.

There are a number of other benefits associated with leasing a vehicle, such as:

Lower repair costs, because the warranty will cover most of them.
Lower sales tax, since you'll only be responsible for paying sales tax on the portion of the car you finance.
Lower monthly payments compared to buying.
Typically, there is no down payment, or a very low down payment, required.
Fewer obligations — at the end of your contract, you simply turn in the keys and walk away.
New vehicles every few years. Once your lease term is up, you can choose a new lease and enjoy all the benefits and features of a new car. This also means that you can drive a better car for less money every month. On the other hand, you won't be able to customize your vehicle.

Length of Lease and Key Contract Terms

Lease terms usually last between two to four years. However, every leasing contract is different, so you want to find out specifics, like the length of the term and the mileage cap (which is typically between 12,000–15,000 miles/year).

Most drivers agree that leasing contracts can be very confusing, even more so than when buying a vehicle. If you'd like to go in as prepared as possible, consider reviewing some common contract terms. There's a long list of costs, terms, and fees on a lease contract, but the key items to look for are pretty clear.

Gross Capitalized Cost

This is the sticker price of the car. Like everything else in life, it's negotiable. Don't pay full price!

Adjusted Capitalized Cost

This is the price of the car less negotiation, rebates, trade-in, and down payment.

Residual Value

When you turn in the car at the end of the lease, the carmaker estimates it will still be worth something; the car's residual value. The higher this number, the lower the depreciation (and the lower your payments).

Depreciation

This is the value of the car over the months and miles you will be driving it. You can think of this as the rental fee for the car. Or you can think of it as Adjusted Capitalized Cost - Residual Value.

Money Factor

This is the interest rate you'll pay, but it's not a straight forward interest rate.To compare it with an actual interest rate, multiply it by 2400, so you have a better idea of the value of the loan. This is also negotiable.

This interest rate will be charged to the sum of Adjusted Capitalized Cost and Residual Value. It seems like double counting, but you're paying for both the use of the car and money the finance company "loaned" you to lease the car. It may appear on your bill as Finance Charge or Rent Charge.

Monthly Lease Payment

Finally, this is what you'll pay each month. It's simply the Depreciation + Finance Charges + Sales Tax.

A good lease deal is one with the lowest Adjusted Capitalized Cost, the highest possible Residual Value, and the lowest possible Finance or Money Factor. Be sure to negotiate for all three!

Financing and Payment Options

As is the case when purchasing a car, you will have a number of financing options available to you when leasing. Make sure to research lease specials and financing options in your area before visiting a dealership. Use Edmunds' Price Promise tool to find special offers near you.

Leasing can be difficult if you don't have good credit. If you aren't getting the financing terms you're after, then the DMV recommends first working on raising your credit score, offering a higher down payment, or lowering the annual mileage of your lease. If you have a vehicle trade-in, this can be a great start for your down payment.

Remember, the higher your down payment is, the lower your monthly payments will be. On the other hand, some experts recommend putting as little down as possible because if your vehicle is wrecked shortly after leasing, you will be out of any money you invested upfront.

The Risks Involved

A leased vehicle is basically a rental, so it's even more crucial that you follow maintenance requirements on time because you could be charged extra fees if you don't. You will also need to be more careful when driving the vehicle around, because you'll be responsible for paying wear-and-tear charges for any damage — even small cosmetic issues.

Leasing agreements can have additional fees involved, such as lease drive-off fees and fees when turning in the car. A drive-off fee is a deposit that needs to be made upfront and includes your first month's payment, and usually adds up to about $1,000 extra.

If you go over your mileage cap and have driven more than your leasing agreement specified, then you may be subject to another fee. Consumer Reports estimates an excess mileage penalty of $.10–$.25 for every additional mile. Review your lease agreement and ask the dealership about any additional fees you should know about.

It Will Never Truly Be Yours

Another downside to leasing a vehicle is that you will never truly own it. You will only pay for the use of the car (as long as you drive it). However, at the end of your leasing agreement, you may have the option to purchase the vehicle for a discounted price.

Once a car buyer pays off the car they've purchased, they can drive it around for years without making a payment. But a person that leases will have to keep paying for their vehicle month after month. This can mean big savings for a car buyer after they've finished paying off the auto loan.

Ending Your Lease Early

So, what happens if you decide to turn the car in early? An innocent mistake like this can result in thousands of dollars in termination fees. Often, with early termination, you will still need to return the car and pay what you still owe, which results in a lot of wasted money. Your leasing contract should specify the early termination penalties and conditions, so you'll know what types of fees to expect.

There are other options for breaking the lease early, but they can be difficult undertakings. For instance, you can find someone to take over your lease and assume the payments, but this can be a time-consuming and stressful process. You can also work with a company or lease-trading site that can help you sell your lease to interested buyers (for a fee). Your dealership may also be willing to trade in your vehicle for another vehicle. Lastly, you might be able to buy the vehicle from the dealership or sell the vehicle to a private party.

What to Ask at the Dealership

There are several questions you'll want to ask at the dealership, including:

Is GAP insurance included? GAP insurance will protect you in the event that the car is stolen or totaled in an accident.
What do the warranties cover? You'll want to find out about extended warranty information and what's included in your coverage. Then, you'll know which maintenance services and repairs you'll be personally responsible for.
Can I transfer the lease later? In the event that you need to terminate your lease contract early, you'll need to make sure that your leasing contract will permit this. Asking upfront if the dealership allows lease transfers will save you a lot of time and frustration later.
What will the total cost be? You might get sidetracked by the lower monthly payments, but in the end, leasing may be more expensive than you think. Inquire about the total cost so that you can get a better picture of what you will be paying in the end (not just per month).

Do you have other tips for leasing a car? Please share your thoughts in the comments!

Like this article? Pin it!

This article is from Andrea Cannon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Get It in Writing: A Quick Guide to Agreements and Contracts

Thursday Bram — Fri, 17 May 2013 09:48:59 +0000

Everybody's heard that worn-out piece of wisdom — get any deal you make in writing because something could always go south with the deal. We hear it regularly, but not all of us do it. It's a bit of a hassle, especially for small agreements. It doesn't make sense to require a contract if you're paying a neighborhood kid a little cash to mow your yard, after all. And if you're not writing out that agreement, why write out something that's a little bigger? Before you know it, it's easy to justify avoiding contracts entirely. (See also: 16 Things Your Lawyer Won't Tell You)

But it's time to refresh the saying and start following it a little more closely. It is important to get things in writing — and it's even more important to know what that writing means.

You Need It in Writing, Even When You Think You Don't

Technically, a verbal contract is supposed to hold up just fine in court. But the reality is that you can get into a situation where each side of the argument remembers the contract in a different way. Neither side may be lying in such a case. If the deal was not incredibly specific, each party may remember his interpretation of the deal, rather than the actual words used when the deal was struck.

Writing down the terms of an agreement does more than make legal situations easier to sort out. The act of writing encourages you to be as specific as possible. As you're writing, you may even find some details that really ought to be hashed out before you finish setting up the agreement.

Ask for Help

I'm not a lawyer. You should consult a lawyer any time you're not sure about signing a contract or an agreement, as well as get help when constructing your own contracts. There's a question of practicality in play, of course. You're probably not going to worry about legal counsel unless there's enough at stake to make it worth the cost of consulting a lawyer.

But any time you feel out of your depth, you should make a point of asking for help.

The Difference Between Contracts and Agreements

When we think of contracts, our minds often go straight to documents written with tons of legal jargon. In reality, a contract can be written plainly. A contract just has to be a legally-binding agreement that meets certain requirements, such as showing a benefit to be received by each side of the agreement. Many agreements are legally binding, even when they aren't contracts, but not all are.

Since we can't all go to law school, it's best to plan to jot down the key terms of any agreement you come across, and don't worry about whether it's a contract or not.

You also want to make a point of reading any agreements presented to you before you sign them. As much as no one ever wants to do so, this even includes reading the fine print presented to you when you sign up as a member of a website.

Understanding Legal Capacity

One of the key issues that goes along with making a valid contract (or even an agreement) is that the people involved have to have legal capacity — the ability to understand what they're doing when they sign a contract. Someone who is intoxicated or mentally ill, for instance, cannot agree to a contract.

There are specialized laws to deal with minors. Someone who is a legal minor can make a contract, but he can also "disaffirm" a contract, essentially backing out of it. In such cases, the minor is required to return anything he gained through the contract. There's a legal quirk where trades or barter (including when a retail item is purchased for cash) are not considered contracts.

Dealing With Boilerplate

Quite a bit of a contract may be standardized, but what is considered boilerplate (the text of a contract that can be used over and over again for similar situations) can differ between types of contracts, industries, and other factors. It's worth studying up on the clauses you're likely to see often, but don't be surprised any time you see a new one. These are a few of the more common provisions you may see:

Waiver of Jury Trial

Many contracts will include a clause requiring that, in the event of a problem, the parties go through arbitration, rather than take the matter to a jury trial.

Notice Provisions

In the event of changes or termination of the contract, each party needs to be notified. That requirement is written out as a notice provision.

Governing Law Clause

Because laws can differ by state, most contracts include a clause specifying which state or country's law the contract will be enforced under.

Force Majeure Clause

Things happen that are outside of the control of any one party, ranging from wars to hurricanes. Therefore, many contracts include a clause that lays out what should happen in the event that one party can't carry through on the contract due to one of these causes.

There are plenty of clauses and provisions that show up on a regular basis in different types of contracts. It's worth investing time in learning about the specifics of the types of contracts you'll likely deal with. The same goes for the laws that help define how we handle contracts and other agreements. At minimum, learn about how broken contracts are handled in the courts of the state you live or work in.

Have you ever been surprised by a clause in a contract or agreement? Have you ever wished you'd "gotten it in writing?"

This article is from Thursday Bram of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

3 Must Have Business Agreements

Barbara Weltman — Thu, 10 Mar 2011 22:19:13 +0000

Link:

http://www.openforum.com/idea-hub/topics/managing/article/3-must-have-business-a...

Hollywood movie mogul Samuel Goldwyn, founder of MGM, once said: “A verbal contract isn't worth the paper it's written on.” It’s a good idea for small business owners to put agreements in writing. Here are three agreements that you should definitely consider getting in writing.

Confidentiality Agreement

Your company many not have a secret formula as valuable as those used by Coca-Cola and KFC, but every company has some information that it does not want to become public. Whether customer lists and pricing information or new products and processes, you have valuable business secrets. To help protect that info, use a confidentiality agreement (also called a nondisclosure agreement).

A confidentiality agreement is a contract signed by your employees or any third parties with whom you intend to share confidential information. By signing the agreement, the employee or third party agrees not to share that information. For example, if you’re considering a joint venture with another company, you’ll likely need to divulge certain information about your business; make sure it remains confidential by having an agreement in place before you discuss it.

Find free sample confidentiality agreements at:

IPwatchdog.com (agreement for inventors)
MoreBusiness.com (agreement with third-parties)
oneCLE (employee agreement)

Buy-Sell Agreement

If you have co-owners in your business, it’s wise to decide what happens to an owner’s interest when he or she retires, dies, or just wants out. This can be settled by the terms of a buy-sell agreement.

The agreement can be constructed in several ways:

Cross-purchase agreement, in which the remaining owner or owners buy out the interest of the departing owner. This type of agreement works best if there are only two owners in a business; it gets cumbersome when multiple owners are involved.
Redemption agreement, in which the company buys back the interest of the departing owner. This type of agreement works best when there are several owners.
Hybrid agreement, which can include both a purchase and buyback.

The buy-sell agreement should be made when the company is started, but can be created at any time. Here are some features to include:

The type of buy-sell agreement (e.g., cross-purchase agreement);
A list of triggering events, such as retirement, disability, personal bankruptcy, divorce, or death;
A mechanism to determine the value of the departing owner’s interest. This can be a formula clause in the agreement, a requirement that an appraisal be obtained at the time of the triggering event, or some other method. It’s usually not a good idea to set a fixed value in the agreement because it may not reflect changes in value by the time of the triggering event;
The funding that will be used to pay for the buyout. Life insurance usually is used for buyouts at death; other funds must be used for buyouts for other triggering events.

Find free sample buy-sell agreements at:

DocStoc (for limited liability companies)
Jian.com (for corporations)
Meg Financial (for corporations)

Independent Contractor Agreement

Many businesses hire contractors as a way to lower operating costs while still getting things done. The problem is that the IRS and the states will look at how you classify your workers, and if it’s determined that your contractors are really employees, you are liable for payroll taxes, employee benefits, workers compensation, and unemployment coverage for them, too.

Worker classification is primarily based on the degree of control you exercise over the workers. One factor in determining control is the relationship of the parties. If you and the workers agree up front that the relationship involves independent contractors and is not an employer-employee relationship, this helps to avoid reclassification of workers as employees. A good way to show the relationship is with an independent contractor agreement.

The agreement should include the following points:

A statement about the relationship of the parties;
A statement that the worker acknowledges responsibility for taxes and insurance;
Language bolstering independent contractor status, such as that the worker is required to furnish his/her own tools.

While the agreement is not binding on the IRS, it can help demonstrate worker classification if the IRS has questions.

Find free sample independent contractor agreements at:

Bottom Line

While sample agreements may be useful in getting ideas for your situation, it is highly advisable to have any agreement you prepare reviewed by your attorney. Your attorney can tailor your agreement to your company’s specific needs and make sure it complies with the laws in your state.

This article is from Barbara Weltman of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Buying a New Smartphone Without Extending Your Contract

Carlos Portocarrero — Wed, 05 Jan 2011 14:00:11 +0000

Buying a new phone is great, especially since most carriers will give you a hefty discount ($199 vs. $529 for retail) in exchange for extending your contract for two years.

Why would anyone hesitate to trade two years for a $329 discount? There are lots of reasons:

They hate their service but love their phone (iPhone anyone?)
They're waiting for the phone they want to become available on a "better" carrier (Verizon-cough-cough)
They don't like being tied down

I was recently forced to go this route because I am on a sweet plan that is so heavily discounted, I had to pay retail.

I upgraded to a newer, better, faster phone without extending my contract and only paid $215. If you include the taxes and activation fees that come with extending your contract for two years, I actually paid less than most people would!

Here are four tips I followed to buy a new phone without giving those evil carriers what they want:

Research

It all starts with research. The carriers will tout the newest phones with the latest features, but they aren't necessarily that much better. When a carrier says stuff like "this phone will keep you connected to your friends via Facebook," you know they're talking crap. Most smartphones can do most tasks, so don't fall for carriers' marketing spin.

You have to rely on yourself to know the facts. Read reviews on sites like Engadget and Gizmodo. See what Consumer Reports has to say. Ask your friends what features they use and like. Ask the people who follow you on Twitter.

Just don't walk into a carrier's store and ask the person behind the counter what the best phone is...it isn't in your best interest.

Hold the Phone

After you've done your research and narrowed it down to two or three phones, it's essential that you actually hold them in your hand and test them out.

You're trying to answer crucial questions like:

How does it feel in your hand?
Do you need a keyboard?
How is the screen's responsiveness?
How does the interface work for you?
Will other people think you're cool if you have this phone?

I went into two different T-Mobile stores a couple of times to play with two different phones: the Samsung Vibrant and the HTC G2. The screen on the Vibrant was amazing, but the G2 had a keyboard. They were two totally different phones with their own pluses and minuses.

Reviews help, but the best way to know if a phone works for you is by holding it and testing it.

Buying It: Use Craigslist and eBay

Craigslist and eBay are a great way to find phones that are in great condition at heavy discounts.

Ideally you'll find a phone that has been well taken care of. That means you may have to buy a phone that has been out there for a few months already. Nobody said this was going to be a free ride.

Also, make sure to ask your local carrier's store if they have any refurbished or returned phones. These are practically new but have to be sold for less because they've been opened and used.

I was lucky enough to find a guy online selling a Nexus One for $365 that looked brand new. He had put a screen protector and body glove on it from day one so it was almost like I was buying a new phone at a used price.

Sell Your Old Phone

Selling your old phone will help you offset the price of the phone you just bought. Lots of people sell their old phones on eBay and Craigslist, so making yours stand out is important if you want to get top dollar. Some things you can do to make your listing stand out:

Include any extra chargers, car chargers, docks, or batteries you have
Include the original box and manual if you have them
Lots of close-up, quality pictures
Upgrade the software on your own
Use spell-check so you don't come off like a psycho

See what other people are selling the phone for, and if you can make your listing stand out, you might get top dollar to offset the purchase of your new phone.

I sold my two-and-a-half-year-old G1 for $150 because I included every accessory I had, took time to craft a good listing, and upgraded it to the latest Android version. That made my phone stand out, and I listed it for a relatively high price.

Enjoy Your New Phone!

Now you have a new(ish) phone and you don't have to commit to another two years with your carrier. So when Verizon finally comes out with the iPhone, you'll be ready to jump ship and enjoy the latest iPhone without being on the worst network, according to Consumer Reports.

Disclosure: This post contains affiliate links, and I will earn a commission for any purchase made through these links.

This article is from Carlos Portocarrero of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Creating Business Contracts That Won't Get You Sued

Thursday Bram — Thu, 25 Nov 2010 17:40:50 +0000

Link:

http://www.openforum.com/idea-hub/topics/managing/article/creating-business-cont...

For most small business owners, contracts are a necessary evil. You have to have something to protect you, but getting contracts written requires legal expertise and can get expensive. Many small business owners try relying on templates, but even a template can't cover all the contingencies that different companies can face. To make sure your business is truly protected by the contracts you rely on, you need to create contracts that are specific to how your company does business.

The Problem with Templates

When a new business owner is starting out, it is very tempting to just make use of a template or a standardized contract you can purchase online. Jeff Bonds, a lawyer with Newton, O'Connor, Turner & Ketchum, PC, points out the flaws in that approach: "First, with standardized online contracts, more often times than not, you usually get less than what you paid for in terms of effectiveness and quality."

There are more potential problems than can be listed, but generally, a contract customized to the way you do business will be more effective in ensuring that you won't have a problem down the road. Bonds points out a few of the potential problems: "Generally speaking, courts enforce commitments made in contracts. While a 'standard' downloaded contract may fit one's needs in some respects or have beneficial terms for the business, there may be significant terms which do not fit or that are not beneficial. If those terms are enforced, then the business suffers. Another problem is that a 'standard' downloaded contract may have terms enforceable in one jurisdiction but not enforceable in another. If the beneficial terms of a contract are not enforceable, this can be just as harmful to the business as if harmful terms are enforced. A problem that people do not think about is that the terminology used as well as the applicable law in a jurisdiction can change over time, and therefore a 'standard' downloaded contract written 10 years ago may use language that is no longer commonly used or contain terms that are not allowed due to a change in the law. This can give the impression that your business may not be on top of things or worse, the 'dated' terms may now be unenforceable. While 'standard' downloaded contracts may appear to save a few bucks now, one may pay a lot later to cure the problems caused by one of these clumsy or outdated contracts."

Getting Your Contract in Order

Lawyers specializing in business matters can draft a contract that you can use regularly. Bonds says, "The 'right lawyer' is the one who is excellent in a given area of the law, who the owner/manager communicates easily with, and who can be trusted. With this in mind, every business owner/manager should develop a relationship with a business attorney who can give the owner/manager recommendations with regard to purchasing legal services. Before using a particular attorney or firm, a person should ask others about the reputation of the attorney or the firm. Also, the attorney that you choose to help you should be one that is skilled and experienced in the area of law to which the contract applies. For example, if you need an employment contract for a future employee, then you should seek an attorney specializing in employment law, not one specializing in mergers and acquisitions. This brings up the advantage that firms like ours have over solo practitioners in that we have attorneys working together [who] have specialties in different areas. This allows our business clients to know that regardless of the type of contract they need, they will get an attorney experienced in that area that will provide an excellent product."

The particular problems you may need to consider in your industry may make it worthwhile to seek out an attorney who has experience working in your industry in the past. It is also necessary to find someone local to your geographic area — there can be a variety of differences in laws in different states, making it important to have a local expert. One of the fastest ways to find an attorney can be to ask your network for recommendations. You may need to winnow out some of the suggestions you get, but a professional recommendation can help you narrow down the field much faster than an online search or a phone book might.

A Contract Review

Bonds notes that for any contract beyond your standard, it's worthwhile to have it reviewed by a legal expert. "Unless they have a law degree or years of experience, every small business owner, if they are planning on growing a successful business, should seek help from an attorney with any contract they intend to use. When the business owner cannot afford to have an attorney review every contract, the owner should, at a minimum, obtain a review of those contracts which involve large financial commitments or key relationships."

Down the road, you may find that a client or customer has a problem with your standard contract. Bonds recommends getting a lawyer on board immediately: "The first step is to contact an attorney for help. The attorney may be able to help find a business solution on which both parties to the contract can agree. If not, then the attorney can give the owner/manager an assessment of the situation and guidance through a dispute resolution process. One thing is certain: The problem will not go away on its own. The owner/manager must go through the expensive process to deal with the issue like they would any other obstacle to their business. With this in mind, owners/managers should recognize that they should take active measures before problems arise in order to reduce or eliminate problems in the future. The prevention is ALWAYS cheaper than the cure!"

This article is from Thursday Bram of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: