subscriptions

How Small Monthly Bills Slowly Wreck Your Annual Budget

Tim Lemke — Fri, 13 Apr 2018 08:30:10 +0000

Have you ever noticed that we look at most of our expenses in terms of monthly payments? We often justify these expenses by saying, "It's just a few dollars a month." Sometimes, we even break costs down into weeks or days. But this type of thinking can be dangerous to our finances. Looking only at monthly expenses can mask the total impact of what you're spending. And when we view our expenses in isolation, we don't always see our full financial picture.

Here are some things to think about when you tell yourself, "It's just a few dollars per month."

It all adds up

When you think of your expenses as individual costs that you pay on a monthly basis, you're seeing only a very small part of your finances at any given time. Combine these monthly costs, however, and you'll see how quickly they can add up and make it hard for you to save. This is especially true with subscription-type services, in which you may pay a seemingly low monthly fee for a product or service.

Netflix is just $9.99-$11.99 per month. Your news subscription may be $7. You have subscriptions for meal planning services like Blue Apron, and clothing delivery services like Stitch Fix. None of these subscriptions may seem costly in and of themselves, but when you add them up, they could comprise hundreds of dollars in monthly expenses and leave you with very little left over. And because they're subscriptions, they may be automatically deducted from your checking account or credit card, so you may not even be fully aware that money is leaving or when. (See also: Are Meal Prep Subscription Boxes Worth It?)

You're being manipulated

How did we get into the habit of thinking of expenses in the context of a month or less? Because the people who seek our money want it that way. If a company can get us thinking about costs in smaller chunks, we're more likely to spend money. A gym could easily charge you $480 a year to join, but instead, they charge $40 a month and advertise that monthly amount because it seems like less. Your cellphone company could just ask for $1,200 upfront when you sign a two-year contract, but it's less scary to charge you $50 a month.

Granted, most of us would prefer to pay in monthly amounts because we may not have tons of cash on hand, but most companies don't even offer us the option to pay in bulk amounts if we want to, because they don't even want us thinking about how much they take out of our accounts each year. (See also: How Scarcity Marketing Tricks You to Spend More)

Resist the coffee analogy

Every once in a while, someone will encourage you to donate money or buy a product, arguing that it will cost you "less than a cup of coffee" each day. The suggestion is that coffee is a fairly low and everyday expense, and it's a compelling sales tactic. But the next time someone comes at you with this pitch, consider examining it in a different way.

First, ask yourself if you'd be willing to cut out your daily coffee in order to buy this new product or service. If not, then accept that your expenses will definitely rise. Second, recognize how much that cup of coffee each day actually is costing you. Maybe it's just $2 every time, but that's $10 during a workweek, $40 monthly, and nearly $500 a year. Suddenly, you realize that the "cost of a cup of coffee" isn't mere pocket change. (See also: Here's How Rich You'd Be if You Stopped Drinking Expensive Coffee)

A higher monthly payment is always a big deal

Have you ever financed a car? The goal of the car salesman is to get you comfortable with a monthly payment and ignore the total costs over time. If you're paying for the car in full with cash, there's not much a seller can do to mask the cost. But when breaking out the total into payments, the seller can convince you that a few extra dollars are no big deal.

For example, let's say you're looking to have payments of no more than $200 per month. The seller may say "Well, I can get you down to $230, which is in the ballpark. Deal?" That extra $30 may not seem like a lot. But if you have a 60-month loan, that adds up to $1,800! If you were paying for the car with cash in full, you'd never think that paying an extra $1,800 was reasonable.

Monthly payments can mask interest

If you purchase a home, you will likely have a mortgage with interest payments. You may also have interest payments if you finance a car. When this happens, the total cost of your purchase is higher, even though you don't think of it that way.

Consider that if you purchase a house with a sale price of $400,000, you may pay $2,000 per month over the course of 30 years, bringing the actual money paid to $720,000. Monthly payments can make large purchases feel more digestible and manageable, but they can also cover up the total cost of big-ticket items over time. (See also: 8 Signs You're Paying Too Much for Your Mortgage)

Consider the lifetime costs

Once, while in the process of paying some bills, I tried to calculate how much I had spent over my lifetime toward cellphone, internet, and cable TV services to one particular company. I determined that I had paid this company each month for about 18 years. The math was eye-popping. In my life, I had directed more than $30,000 to one company just so I could stay connected.

Granted, I'm not sure what I'd do without my phone or high-speed internet. But it did make me wonder whether I was always getting the best deal. Imagine if I had found a way to cut these bills by 10 percent each month. That would be $3,000 more in my pocket today! (See also: Here's How Rich You'd Be If You Stopped Driving)

We don't think of income this way

If someone asks you how much money you make, do you tell them what you take in on a weekly or monthly basis? If you are a salaried employee, probably not. Usually, we think of our income in terms of annual salary, and we rarely stop to think about how much we bring in each month, each week, or each day. Unless you're an hourly employee, you don't say "I make just $24 in an hour." You say, "I make $50,000 a year."

Think of expenses the same way. You might change your behavior as a result. "I spend $1,200 a year on cable so I can watch Portland Trail Blazers games." "I spend $940 a year on Americanos from Peet's Coffee." Yikes! (See also: 8 Ways to Get Your Morning Coffee for Free)

Saving is a long-term goal

It's important to remember that building wealth and achieving financial freedom is a very long process. It's the relatively small amount of money you save each day that piles up over time and becomes something substantial. It's very easy to be dismissive of a small weekly or monthly expense, but it's those very expenses that can make the difference between accumulating wealth or accumulating debt.

When analyzing spending, it's helpful to examine all money as potentially helpful in your quest to build wealth. One hundred dollars now, if saved, could represent much more in the future. If spent, it's gone forever. (See also: 5 Ways to Safeguard Your Financial Future With Just $200)

Take your usage into account

It's easier to defend the "it's only a few dollars a month" attitude if you regularly use the product or service in question. One could argue that a high-speed internet subscription, while costly, is worthwhile if you use it for several hours a day to run a business. But what about all those things you pay for that you never use?

Your gym membership may only be $10 a month, yet you haven't worked out in months. Netflix may seem inexpensive, but you rarely stream any movies or shows. These monthly costs can really add up, and they are made worse if you are spending money on things you never use.

Like this article? Pin it!

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

Autopay Is Great for Money Management — Until It Starts Costing You

Emily Guy Birken — Fri, 27 Oct 2017 08:30:08 +0000

I'm a big believer in the set-it-and-forget-it lifestyle. I have cleaning products and paper goods delivered to me monthly via an automatic subscription, so I never have to think about whether we're running short on laundry detergent or toilet paper. I've set up automatic transfers to savings and retirement accounts each month, so I never have to think about building my emergency fund and my nest egg. And I have several of my bills automatically paid out of my checking account so I never have to remember a due date. (See also: 5 Ways to Automate Your Finances)

Of course, what I love about all of this automation is exactly what makes automation potentially costly: When you don't have to think about something, you might end up forgetting about it.

While automatic payments allow you to effortlessly stay on top of your bills and other financial obligations, they can also become a budget leak that you aren't even aware of. Here's what you need to know about the downside to automatic payments, and how to make sure you don't automatically waste your money. (See also: 7 Ways Auto-Payments Can Screw You)

Automatic payment or gray charge?

Automatic bill payments that you've willingly signed up for can be a great way to manage your money and avoid late charges. But some automatic payments are actually what's known in the industry as "gray charges."

These are little recurring automatic payments that you have not necessarily agreed to and do not know about. For instance, I had to deal with a gray charge earlier this year when I realized (after several months had gone by) that I was being charged twice a month for a single digital newspaper subscription service. It turned out that each of my two subscriptions was associated with a different email address, and I had not realized I'd accidentally signed up for the second subscription.

I have no one to blame but myself for that unnecessary subscription charge, but most gray charges have much more pernicious origins:

"Free" trials that require a credit card: With this type of gray charge, the merchant is counting on you to forget that you provided a credit card to sign up for a free trial. Once the trial period ends, the merchant charges your card. These types of charges account for nearly half all gray charges.
Phantom charges: These gray charges piggyback on an online purchase you did make. With these types of charges, you might be charged for an extra product or service that you didn't request. For instance, a consumer might pay for their credit score without realizing they have also signed up for (and will be charged for) monthly credit monitoring. Phantom fees account for 18 percent of all gray charges.
Zombie charges: These types of gray charges are well-named, since they are the automatic payments that simply will not die even after you cancel your subscription or membership. A common example of a zombie charge is the gym membership fee that is charged to your credit card even after you have quit the gym. Zombie charges account for about 6 percent of gray charges.

The high cost of forgotten automatic charges

According to a study by Aite, gray charges on credit cards accounted for more than $14 billion in 2012, which translated to approximately $215 per cardholder.

It's completely understandable how this can happen. Often consumers will agree to a charge without realizing it because they did not read the terms of service. At that point, it's up to the consumer to notice the recurring charge on their account — and it often takes several months before the cardholder notices. By the time consumers realize what has happened and cancel the service, it often seems pointless to try to reverse the previous months' charges.

In addition, the majority of gray charges are perfectly legal, which means it can be next-to-impossible to get previous months' charges reversed. The companies that are using gray charges to pad their bottom lines are counting on the apathy and inattention of the average cardholder, and they unfortunately have the law on their side.

Combating gray charges

There are several options for keeping unnecessary automatic payments from taking a bite out of your budget.

1. Calendar reminders can keep you from paying for "free" trials

The companies that offer "free" trials assume that you will forget when the trial period ends — and they already have your payment information. The best way to take advantage of free trials is to set up a calendar reminder for the day before the end of the trial. That way, you'll remember to cancel the subscription a full 24 hours before you might get charged.

2. Read through the fine print

Skimming through the terms of service may be no one's idea of fun, but it's a lot better than having to make an angry call to customer service several months later and several sawbucks poorer.

3. Research complaints about phantom charges

Before you buy, Google the company whose product or service you are considering to see if anyone has had trouble with phantom charges from them. Then you'll know what to look for in the terms of service and you can determine if you can avoid charges by unclicking a box — or just choosing a different merchant, if necessary.

4. Review your statements regularly

Making a monthly date to look over your credit card and bank statements will help you identify gray charges as soon as they occur. You can call to cancel these subscriptions or notify your credit card that you would like to dispute the charge. In many cases, your credit card company will reverse the charges if you can prove that you did not consent to recurring charges.

5. Use apps to monitor your accounts

If you would rather not the spend the time combing over your accounts and canceling unnecessary automatic payments, there are several apps available that will do the work for you. Clarity Money helps you organize your entire financial life, including helping you to find and cancel unused subscriptions. Trim identifies recurring payments that can be canceled and will take care of contacting the merchant on your behalf to do so. Truebill notifies you of subscriptions that can be canceled and offers you a one-click cancellation process.

Stay on top of your automatic payments

Automatic payments are a major boon to busy budgeters. But it's important to remember that your automatic payments should be like the cruise control on your car: It can relieve you of a little work, but you can't fall asleep at the wheel. No matter how automated your financial life may be, you need to still keep an eye on things to prevent automatic payments from causing a financial crash.

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:

Simplify Your Life With These 27 Monthly Subscription Services

Samantha Stauf — Wed, 30 Aug 2017 08:30:10 +0000

As TV on-demand services have flourished, all sorts of companies are beginning to offer subscription services to meet a variety of specialized needs. Do you spend way too much on games, books, or music? Do you need a way to get around town, but can't afford a bike? Wardrobe a tad drab? There's a service for each of these.

Before we delve into the types of services you might want to check out, it's important to know the difference between subscription boxes and subscription rental services.

Subscription boxes are a service where you can sign up to pay a flat fee to purchase a variety of items. The items are bulk ordered by the company for cheaper than you can purchase them individually. The boxes are usually themed and the individual items in the boxes are often unknown until the box arrives. (See also: The 10 Best Monthly Subscription Box Services)

Subscription rental services are services where the buyer pays a flat fee for access to the service. The main difference between a box and a rental is that the subscription rental doesn't give the individual ownership of any items offered by the plan.

Below are 27 types of subscription services you might want to check out.

Games

Gaming, whether it's video games or board games, can be an expensive hobby. Board games can run anywhere from $10 to $100 each. New video games are typically around $60. Game enthusiasts might be able to save money by signing up for a monthly subscription.

1. & 2. PlayStation and Xbox

Both PlayStation and Xbox have monthly rental subscription services that grant players access to free games on their consoles for $9.99 each month.

3. OnePlay

OnePlay is a monthly rental subscription service that grants access to 2000+ PC video games for $9.99.

4. GameFly

GameFly is a monthly rental subscription service that allows gamers to play one or two games at a time for $15.95 or $22.95, respectively. New games are delivered once the old game or games are returned.

5. & 6. Board Game Bento and Hasbro Gaming Crate

Board Game Bento and Hasbro Gaming Crate are subscription boxes that run $50 per month. Board Game Bento, in particular, promises $80 of value in their $50 subscription box. The boxes can be a stellar way to add a variety of games to your collection for a slightly lower price.

7. Board Game eXchange

Board Game eXchange is a rental subscription service that allows individuals to receive a shipment of rental games every two months. Depending on the subscription, the subscriber will receive two to 12 games in the package.

8. NetMeeples

NetMeeples is another rental subscription service that ships rented games to subscribers each month. Subscriptions tend to run anywhere from $10 to $50, depending on how many games you want each month.

Books

Reading and listening to books can be a very expensive hobby for avid bookworms. When free books won't do, individuals can save money by signing up for a book subscription service.

9. & 10. comiXology and Marvel Unlimited

comiXology and Marvel Unlimited are comic book subscription services that allow readers to read hundreds of free comics each month for $5.99 and $9.99, respectively.

11. & 12. Amazon's Kindle Unlimited and Scribd

Amazon's Kindle Unlimited and Scribd are subscription services that grant access to a library of books and audiobooks for avid readers to enjoy. The books in the services can be a tad limited. This is more of a service that grants access to dozens of slightly less popular titles and older classics with a few gems thrown in occasionally.

13. Other book boxes

You can also find dozens of paper and e-book subscription boxes online. A few paper book subscription boxes to check out include: Book of the Month, OwlCrate, Powell's Indiespensible.

Movies

Do you desire to go to the movies, but just can't stomach the high price of movie theater tickets? There is a movie pass subscription service that could save avid moviegoers a lot of money.

14. MoviePass

MoviePass allows individuals to pay one flat monthly fee of $9.95 to see a movie at the theater every twenty-four hours. The price of the service differs by location based on the regional cost of tickets.

It can lead to a far cheaper movie going experience, but there are a few downsides that might limit the appeal of this service.

You can only see each movie one time.
There probably won't be 28 to 30 movies per month that you're dying to see.
The service doesn't cover the cost of 3D, Imax, or VIP 21 tickets.

Transportation

Car or bike ownership can be an expensive investment. Alternate transportation (bus, train, or subway) is not always convenient.

Transportation subscription services have cropped up in big cities and have slowly been expanding into less populated regions.

15. Canvas

Canvas is a month-to-month car subscription service available in the San Francisco Bay Area. The service allows individuals to choose a car, a mileage package, and when the vehicle will be delivered to them.

16. FlexDrive

FlexDrive is a car subscription service located in Atlanta, Austin, and New Jersey. The service allows individuals to rent a car on a weekly or monthly basis.

17. YOYO

YOYO is another car subscription service located in the San Francisco Bay Area. This particular service has a yearly membership fee and regular payment plans that are based on the type of car selected.

18. CitiBike

CitiBike is a New York City-based bike sharing service that allows individuals to sign up for a subscription plan for one-day, three-day, or yearlong service plans. The plans allow members to take out bikes for an unlimited number of 30 or 45-minute rides.

19. Unlimited Biking

Unlimited Biking is another NYC-based bike subscription service. The service offers plans that allow the rider to take the bike out for one to four hours per day.

Clothing

Dressing fashionably can be expensive. There are dozens of subscription boxes and rental services to help individuals who would like to cultivate a diverse, trendy wardrobe for a fraction of the cost. You'll own every item you decide to keep from these boxes. A few examples of boxes to get you started are Five Four Club, Stitch Fix, and Le Tote.

If you want the ability to really diversify your wardrobe, I'd recommend looking into a clothing rental subscription service. How does it work? The service sends the subscriber a few pieces of clothing and accessories. Once the subscriber is tired of them, they return them, and new pieces are delivered.

20. Parcel22

Parcel22's subscription allows individuals to 'rent' three garments and two accessories at a time for $49.99 per month.

21. Rent the Runway

Rent the Runway's subscription allows individuals to rent three designer garments at a time.

Food

Eating healthy is a time-consuming process. Finding recipes, buying the food, and preparing the meals, can take hours that a lot of us just can't spare. Grocery delivery services and meal prep boxes are one solution to help busy professionals and families eat well without dedicating an exorbitant amount of time to cooking and shopping.

22. AmazonFresh

With this subscription, you'll get free deliveries on AmazonFresh orders over $50. (Amazon Prime membership is included with this subscription as well.) AmazonFresh offers prices lower than most delivery services and has an unrivaled selection of products. They can even deliver items from local shops and restaurants. (See also: 21 Fresh Food Delivery Services That Can Save You Big)

23. Farm Fresh to You

Get fresh, seasonal and organic products delivered to your doorstep. Farm Fresh to You works with local farms and bring you the best of the season's produce. You can customize your box and even pick and choose from specific items if you'd prefer not to be surprised (although that's the most fun). (See also: 6 Ways Having Your Groceries Delivered Can Save You Money)

24. Crate Chef

Crate Chef is a monthly box of specialized ingredients, cooking tools, and recipes. This service sends out one themed box every month and allows subscribers to skip boxes that they have no interest in.

25. Freshly

Freshly is a cooked meal subscription that delivers four to 12 fresh meals to your door every week. The service allows individuals to choose between 30 different dishes per week. Vegetarian and vegan options are available.

26. & 27. Hello Fresh and Plated

HelloFresh and Plated allow individuals to choose meals, receive the ingredients, and recipes in insulated boxes each week. Both services come with easy to follow cooking instructions. Different plans are available based on the number of servings per delivery and the number of recipes delivered per week. (See also: Are Meal Prep Subscription Boxes Worth It?)

Life can be expensive. Dozens of little purchases can easily snowball into a high monthly budget. Netflix-style subscription and rental services can, if chosen carefully, slash your monthly expenses.

Like this article? Pin it!

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

11 Ways to Make Your Money Grow This Spring

Mikey Rox — Fri, 14 Apr 2017 08:00:10 +0000

I'm no fan of winter, but there's an upside to being holed up in my house three to four months out of the year: I spend way less money (outside of Christmas, of course).

Springtime, though — all bets are off. I'm outside most of the time, hitting the beach, grabbing lunches and dinners on the go, planning mini-vacays, buying fresh threads for all those weekend parties, consuming cocktails — you get the picture; it's expensive.

You could avoid spending money altogether when spring rolls around, but what fun is that? If you like to have a great time when the weather is cooperative, read through this list of ways to earn extra income so you can do all the things you like to do in the sunshine without going into debt.

1. Pick up seasonal employment

Depending on where you live, there could be a bounty of seasonal spring and summer employment. I live by the beach, for instance, and everybody's hiring this time of year — boardwalk shops, beach clubs, restaurants, landscapers, hotels, water-sports instructors, and more. But even if you didn't plant roots near a shore, there are still opportunities in your neck of the woods. Consider local amusement and water parks, baseball stadiums (one of the most fun jobs I've ever had!), spring-cleaning side work, camp counselor, and other outdoorsy-type gigs.

Andrew Fiebert, co-founder of Listen Money Matters, a personal finance podcast and blog, suggests, "Jobs where you can earn tips can easily boost the amount you make. Tutoring or private lessons are other great part-time jobs and you have more control over your schedule."

2. Sell your spring-cleaning surplus

I do a deep clean of my house twice a year — at the start of spring and fall — and I'm continually amazed at how much I get rid of each cycle. Instead of sending everything to charity or a landfill, I try to monetize my junk. I sell my unwanted clothes on Swap.com (which has gone fairly well in the past) and I list other household items, electronics, sports equipment, etc., on the Letgo app. Both are super easy to use. (See also: 10 Easiest Items to "Flip" for Cash)

"There are plenty of websites that can help you [unload your toss-outs], eBay being one of the most notorious, but you pay less in fees with Bonanza and eBid." says Natasha Rachel Smith, personal finance expert at TopCashback.com. "If your goods are designer, it's worth checking out Tradesy or Poshmark. BuyBackWorld is great for electronics, and Raise.com will, in many cases, actually pay you $1.50 per gift card you list for sale through TopCashback."

3. Switch to a cash back credit card

If you're not currently using a cash back credit card, it's time to switch — pronto. Credit cards these days offer scores of money-saving benefits, like price matching and return protection. And if you're going to spend money, you might as well get paid for it. (See also: How to Save an Extra $1,094.86 a Year)

4. Take advantage of free outdoor activities

I'm the planner in my relationship and among my friends, and I like to get out and have fun when the weather is nice. But having a robust schedule can be expensive if you let it get away from you. I spend cash here and there (movie tickets, boat trips, parasailing), but I'm primarily focused on all the fun, free activities my area has to offer, like bonfires, movie screenings, hikes, swimming in local hotel pools, game nights on the patio, and dozens of other ideas that won't cost you a dime. (See also: 47 Cheap and Fun Things to Do This Weekend)

5. Put your gym membership on hold and exercise outside

My gym membership is about $60 a month, but if I put it on hold in the spring and summer to exercise outside, it'll only cost me $15 a month. Now, I don't personally do this because I like my classes and instructors — they keep me motivated. But if you're a self-motivator or just focused on cardio, this could be a great place to cut back and put more money in your spring budget. (See also: These At-Home Exercises Will Give You a Gym-Quality Workout for Free)

6. Fight the temptation to spend your tax refund

Everybody gets those twinkly dollar signs in their eyes when their refund checks arrive, but practice self control and try not to spend it on frivolous things. That money is better suited paying off bills, going to your savings account, or paying for/putting a down payment on a vacation (but only if you've got a handle on your credit card payments and other bills). (See also: 50 Smart Things to Do With Your Tax Refund)

7. Plant a garden to cut down on food costs

When the temperature starts to heat up, I crave fresh fruits and veggies; there's just something about a cool cucumber when it's 90 degrees outside (especially in a mojito). You can go to the grocery store to stock up, but if you're resourceful and dedicated, why not plant your own garden to eat from all season long? According to the USDA, a family of four spends an average $1,000 a month on groceries, but growing your own produce will cut that bill. Maybe not significantly, but extra money is extra money. (See also: 10 Most Valuable Things to Plant in Your Garden This Spring)

8. Host guests via a micro-subletting site

I've been a host on Airbnb since its inception and it has completely enriched my life. Not only do I love meeting and hosting strangers from all over the world, but it's also made a major impact on my financial health. The revenue I bring in from my beach house during the summer fully covers the mortgage (with plenty to spare) all year long, which is why I recommend this lifestyle to everyone with the capacity to host guests. (See also: 13 Things I Learned From Renting Out My Home on Airbnb).

9. Nip excessive energy use in the bud

Open your doors and windows and pull up the shades to take advantage of natural light. Hang-dry your clothes instead of running the dryer. Cook on the outdoor grill more than in your oven. Turn on ceiling fans in lieu of the air conditioner for as long as you can hold out. Sleep with lighter blankets or just straight-up naked. Use less water with quicker showers, and by watering plants in the morning or late evening so the water doesn't evaporate as quickly. (See also: 34 Smart Ways to Cut Your Electric Bill)

10. Review your subscription services

Take a look at your subscriptions to see what can go. Maybe you want to keep your magazines because you like reading them on vacation. On the flip side, if you don't consume much content in the spring and summer because you're out and about a lot, you might consider putting on hold or canceling streaming services. Also, take a good look at your online bank accounts to see if you've missed anything; there might be monthly fees coming out that you forgot about. Cancel anything you're not using enough to justify its cost. Saying "so long" to standard cable, for instance, can add hundreds (maybe even $1,000 or more) to your budget. (See also: 3 TV Must-Haves Once You Cut the Cable Cord)

11. Just say "NO"

While I enjoy an active social calendar in the spring, I can't attend everything. And you don't have to, either. If an event (like a dinner group or destination wedding or weekend away with your pals) isn't affordable, opt out. You're not obligated to go to any of these things, and you shouldn't put yourself in a financial pickle as a result.

Like this article? Pin it!

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

5 Smart Ways to Meet a Rewards Card Minimum Spending Requirement

Nick Wharton — Fri, 13 Jan 2017 10:00:13 +0000

If you're new to chasing credit card rewards, it can feel like there's a lot to learn at once. One of the fastest ways to earn credit card rewards points is through a sign-up bonus. This is a big slew of points you'll get from a new card if you spend a certain amount on that card within a specified period of time — often the first three months. The spending requirement could be anywhere from $1,000 to $10,000, depending on the card.

Of course, the whole idea for earning points that translate into travel rewards is to spend less. It's counterproductive to go into debt just to meet a minimum spending requirement. That's why the tips below relate to things you're likely already spending on, not additional expenses that will break your budget. You should never let a balance accrue on a credit card just to get rewards. You will never come out ahead. (See also: 5 Steps to Getting a Free Vacation in 9 Months or Less With Credit Cards)

1. Start With Everyday Expenses

Chances are you can get a significant fraction of the way to meeting your minimum requirement just by putting your regular expenses on your credit card whenever you can.

If you're conditioned to paying for things in cash, it's time to break that habit since you're missing out on tons of potential points-earning opportunities. This means putting all your grocery purchases on your card. Same for when you pay for gas, dry cleaning, prescriptions, or any of your other regular expenses. (See also: Best Credit Cards to Use for Everyday Expenses)

2. Pay Your Bills With Your Card

The same is true for monthly bills like your Internet, Netflix, cellphone, cable, etc. If you have automated payments set up, update them with your new card. For any other bills, see if there's an option to pay with a credit card instead of a checking account. Watch out for any fees charged for credit card payments, though. It's usually not worth it.

3. Let Little Things Add Up

If you use Uber or Lyft to get around, make sure you update your payment method so that it is linked to your new credit card. The same goes for other apps that you are using to make payments, as small as they may be. If you use Venmo to pay individuals or iTunes for the occasional song download, you'll want to link them to your new card, too, so you'll be earning points toward rewards even when you're not thinking about it.

4. Prepay Current Subscriptions

If you have the extra cash to pay for subscriptions up front, you'll not only help meet the spending requirement, but may score a discount in the process. Many services offer a discount for prepaying.

5. Buy Gift Cards

Buying gift cards is a straightforward way to earn points toward reaching your minimum balance. You are spending money now by purchasing the card, which you can then use later. Due to fraud concerns, many brick-and-mortar retailers no longer take credit cards for gift card purchases, but many e-tailers, including Amazon, will.

Again, the most important thing to remember is to only spend what you can pay off every month. Make your payments on time, so you don't accrue interest or late payment fees that will obliterate any rewards you get for your purchases. (See also: 7 Ways Anyone Can Travel for Free)

Like this article? Pin it!

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

9 Gifts That Won't Become Clutter

Max Wong — Mon, 19 Dec 2016 11:30:07 +0000

Do you come from a family of minimalists? Do you live under the stairs like Harry Potter? Do you simply want less stuff in your home? Your friends and family may feel the same way. Here's a handy list of gifts that won't gather dust.

1. Anything on the Wish List

People spend a lot of time and thought assembling their gift lists. Respect that. A study by researchers at Southern Methodist University and the University of Texas at Austin found that when buying wedding gifts, the people closest to the bride and groom are the most likely to buy gifts off the registry in order to express their close relationship with the recipients. The same study also shows that gift recipients are less happy with unique gifts than if they had just received something from their registry. Why would you ever want to make anyone less happy?

If you're one of these people trying to cut down on the clutter, lead by example and set up a gift registry for yourself. By sharing your wish list, you not only limit what comes into your house, but it makes it easy to casually ask what everyone in your life really wants.

Years ago, when I was setting up my first apartment, I registered myself for wedding gifts at Williams-Sonoma. Back in the days before the Internet, no one used gift registries for single people. They just didn't exist. I had to use the wedding registry form at the store to create my apartment wish list. When I told my friends and family, most of them were mortified. A gift registry for a single girl? How unseemly! However, it was the first year that I got everything that I wanted for the holidays and my birthday. Moral of the story: Ignore the negsters and stick to your guns about your registry.

2. Cash Money

Don't ask me how I know this, but gift cards are easy to lose in a messy house. I've lost conservatively a bazillion dollars in gift card and store credit value in my life. I have yet to lose one single paper currency gift.

3. A Night (or Day) Out

I can count on one hand the number of people I know who aren't completely overworked. While most people can't afford to give even themselves a needed vacation, a great night out can be just the break that people need to recharge.

I love to take my friends out to lunch for their birthdays. Because many of my friends have super busy schedules, it's a great excuse to spend quality time with people I care about.

I have friends who share their season tickets as their go-to gift. My friend Ellen buys two season tickets to the Hollywood Bowl each year. She then sends out the concert schedule to all of her friends so they can choose which show they want to see as her guest. My friend Ryan does the same thing with his season tickets to the Dodgers. My friend Andrew takes his friends and family to the Huntington Gardens for tours, museum events, and an occasional high tea. Sharing season tickets involves a lot of scheduling, but it's a gift that you get to enjoy with the recipients. As a bonus, this gift also benefits the organizations that you care about.

A memorable day out doesn't have to be costly. Attend a free concert or set up a hiking date.

4. Digital Subscriptions

Digital subscriptions to magazines and entertainment companies like Audible, Steam, and Netflix are great gifts for people who live in small spaces. In addition to taking up no physical space, digital subscriptions can provide hours of entertainment throughout the year.

Looking beyond entertainment subscriptions, there are a variety of other services that run on a subscription model. Offer to pay for a year's subscription to reference sites like imdbPro or for digital tools like Adobe Photoshop.

I just received a 23andMe DNA testing kit in the mail. It was sent anonymously, with the message "Happy Birthday" noted on the invoice. I texted my adopted sister; she is a big fan of the service. "Did you send me a DNA test?" "Hmmmmm, was it me or another mystery sister?" she texted back. We both agree that we're probably distant cousins on our Neanderthal side.

If you can't afford the cost of a gift subscription, there is an excellent, cost-free option: Curate a list of free podcasts. My best friend spends a lot of time in the car for work. She is a rabid fan of podcasts for education and entertainment. This year she asked me if I would listen along with her to Witch, Please, a fortnightly podcast about the Harry Potter universe that is hosted by two potty-mouthed college professors. We spent an entire month listening to the podcasts and then debating important topics like whether the wizards, as described in the books, wear pants under their robes, and if puberty and Voldemort are equally evil forces.

5. Give the Gift of Education

My parents believe that the two lasting gifts you can give your children are love and a good education. I think this is true. Education, like love, might not make you richer, but it will make your life more interesting.

The gift can be as large as a college scholarship or as small as a single knitting class at your local craft store. Two of my friends have asked me to teach them how to make homemade sauerkraut as their Christmas present this year.

If you take a class with someone you love, it can be a present for you, too. When my best friend and I were 13, we obsessively read every Agatha Christie mystery. We were less into the whodunit than we were the Downton Abbey-esque universe of Hercule Poirot and his friends. The transcontinental train rides, the Mah Jongg games, the constant tea drinking all seemed so glamorous. To celebrate the 20th anniversary of our friendship, we took a Mah Jongg class together, a game we still enjoy playing years later.

Don't forget about online classes. Lynda.com has 4000 different courses in business, technology, and creative skills. Audible carries Pimsleur language courses at a discount.

6. Donate to a Charity in Their Name

Donating to charity is a nice way to make friends feel remembered at the holidays and also spread the holiday cheer to people who need help. If you need help choosing a worthy cause, Charity Watch keeps a list of top-rated charities that spans a huge number of categories.

7. Make New Holiday Traditions

In 2001, to address the Christmas elephant in the room — an elephant that we can't actually see because it's hidden under a pile of half-completed craft projects and books we intend to read very soon — my hoarder family took a radical step: We stopped giving Christmas gifts to each other. Even the kids. This is the nuclear option. But for families who can make the psychological jump, a No Gifts Christmas can totally change the way you feel about the holiday…for the better.

For 15 straight years my family's No Gifts Christmas tradition has made the holiday season merrier for my relatives and me. There are countless ways to experience the spirit of the season that don't involve clutter. We have less stress and a lot more fun than when we had to shop for each other. Oh, and money. Did I mention we have a lot more money? And empty floor space. Empty floor space in my house is priceless.

8. The Gift of Time

No one loves chores. That's why they are called chores instead of hobbies. Give the gift of time by helping your friends complete their own to-do lists.

This year for my birthday my friend Señor Amor helped me hang curtains in my dining room. It was an all day ordeal. I can't imagine how long it would have taken me to do the job by myself. Every time I look at those drapes, I have a nice reminder of our friendship.

My friend Crickett and I recently discussed our mutual hatred for filing. For our holiday gift to one another, we're going to help each other organize the piles of paperwork taking up precious real estate on our desks. If we have to suffer, at least we don't have to do it alone.

9. Just Ask

Even minimalists have wish lists. If you don't mind ruining the surprise, just ask.

Don't get me wrong; surprises are great. But who prefers to be surprised by a gift she doesn't want over something she's been pining to own? You cannot deny there is a certain satisfaction to getting exactly what you want. If your soul requires that every gift contain the element of surprise, then stake out your friends' Amazon wish list, Pinterest page, or Etsy favorites. Or, just be a good listener.

My friend Todd, a professional organizer who works with hoarders, is a master at choosing clutter-free gifts. He gives me two gigantic, 36-count packages of toilet paper from Costco every year for my birthday. Back when we were in college, I had mentioned to him that never having to buy toilet paper would be weirdly luxurious.

Now, I don't remember saying this, but I do hate spending money on boring things like cleaning supplies. And, even if I never said it, can I tell you? Never buying your own toilet paper is luxurious.

Like this article? Pin it!

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

9 Ways to Use Miles and Points for Holiday Gifts

Carrie Kirby — Fri, 09 Dec 2016 10:00:08 +0000

Although shopping isn't always the best way to get value out of your credit card or other loyalty rewards — international flights and upgrades typically get more punch for the point — there are lots of good reasons to consider spending some points on holiday gifts.

If you're short on cash, tapping your miles and points is an easy way to come through for loved ones without racking up debt. It's a sneaky way to treat a spouse who shares your checking and credit accounts without having a bill for the "gift" arrive in January. Shopping can also be an expedient way to use up small caches of points that might otherwise expire, which should be part of your year-end financial cleanup anyway.

Check out some of these easy ways to turn points into presents under the tree. (See also: 25+ Ways to Save Money But Still Get What You Want During Holiday Shoppin)

1. Shop Amazon With Points

This is so easy that even I, usually a die hard "save points for travel" girl, bought my kids some toys using this method this year. Some credit cards allow you to link your Amazon account directly to easily use points for purchases. Amazon is also a popular vendor in shopping portals. Check your credit card issuer to see if they have a members-only shopping portal that allows you to use points (or earn bonus ones) when you shop with their partners.

2. Buy Gift Cards With Points

Many rewards programs offer gift cards as a redemption option. You can usually exchange your points at a $0.01 rate, so if you have 500 points, you can usually get a $5 gift card to a popular store, like Starbucks, Home Depot, or Banana Republic. Make sure to check whether your gift cards will arrive by mail or email, and if by mail, when they will be shipped.

3. Give the Gift of Travel

If you have a lot of points, you can always use them where you get the best value: airline flights. This is a great gift idea for a loved one you'd like to visit you. Simply use your points to book a ticket in his name. Southwest is a good candidate for this kind of gift, since your recipient can change the flight itinerary at no charge if your proposed travel dates don't work. (See also: Why Southweest Is the Best Domestic Airline for Families)

4. Give Subscriptions

If you have a few points close to expiration, you may have received an offer in the mail to trade points for magazine and newspaper subscriptions. This is a good way to squeeze some value out of miles for an airline you're unlikely to fly, or points from any program where you don't expect to accumulate enough to redeem anything big.

For instance, while 3,200 miles is not enough for even a short flight on American Airlines, it can get you a yearlong subscription to The Wall Street Journal, a $278 value. Through Mags for Miles, you can redeem United, Spirit, and a number of other types of miles for People, Sports Illustrated, or many other titles. This is a particularly good idea for Spirit miles, since they expire quickly.

5. Redeem Points for Merchandise

This usually ends up giving you the worst value for your points, but if it prevents you from actually spending your cash, it can still be worthwhile. Look at your options for points redemption, and you'll usually find a "merchandise" option, which lists gadgets and gifts you can get with your points. If the gift you really want to get is there, or you really wouldn't be able to use the points in a better way, why not?

6. Give Exclusive Experiences

Sometimes Broadway shows, sporting events, and other experience vendors offer exclusive opportunities to cardholders. Members might get offered pre-sale tickets for popular shows or access a VIP experience at a special event. (See also: Once-In-A-Lifetime Experiences I've Earned with Credit Card Rewards)

7. Redeem Points for Cash

Even if your credit card isn't labeled a "cash back" credit card, you may still be able to redeem your points for cash or a statement credit. Sometimes they don't advertise this option, so dig a little into their rewards center to see whether it's an option.

8. Make a Donation

If your giftee is the type of person who would appreciate a charitable donation in their name, many issuers will allow you to donate your points to charities. Check your rewards center for options and availability.

Like this article? Pin it!

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

7 Money Leaks You Need to Plug

Mikey Rox — Thu, 15 Sep 2016 10:30:05 +0000

Want to tighten your budget, but can't figure out where you can save money? Look for leaks in your budget — places where money is slowly but surely leaking out. Here are seven places to start:

1. Insurance on Old Vehicles

Have cars or trucks sitting in your garage, driveway, or backyard that rarely or never get road time? Or maybe you're paying insurance on other types of vehicles — like boats or motorcycles — that have become permanent fixtures on your landscape. If this situation sounds familiar and you're still carrying insurance on these vehicles, it's time to make a decision. Either cut the insurance and put a tarp over the machine(s) for preservation, or put it up for sale so you can make a few bucks.

2. Bank Fees and Out-of-Network ATMs

Many checking and savings accounts have maintenance fees related to a minimum balance, and if you don't keep that minimum in the account, you'll be charged the fee — and you may not even realize it. For instance, last year I upgraded my savings account to a higher-yield savings account that pays more interest, but I recently took out a large sum of that savings for a down payment on a home. Unbeknown to me, the new savings account charges a $12 monthly fee for not keeping a minimum balance of $10,000, which I was quick to flag, and I reverted back to my previous account until I've replenished my savings to accommodate the higher-year account's requirements. Now, $12 a month may not seem like a big deal, but if you let it go too long, it really adds up. It's worth calling your bank or sitting down with an in-bank representative to discuss your accounts' requirements and to ask about what types of accounts best suit your needs.

Another way you can plug money leaks from your account is to avoid ATMs that charge a fee for use. I've seen service fees upward of $10 at some ATMs, and that's not counting the fee that your bank may also charge — my institution's is $2.50 per transaction — every time you use an out-of-network ATM. If you need quick cash (like for a night out, for example), try to remember to go to your home back earlier in the day or stop by a convenience store, like Rite-Aid or 7-11, and use the cash back option if you're on the go.

3. Unused Memberships and Subscriptions

Over the past several years, the availability of membership and subscription services has skyrocketed thanks to our increasing attachment to mobile devices. Services like Spotify, Netflix, Hulu, and more extract their monthly fees from our bank accounts, and that can be dangerous if the price is not justified by the amount we use a particular service. If you lost your interest in an existing subscription, cancel it. This also applies to traditional month-to-month memberships too, like your gym. If you're not using them on a consistent basis, put them on hold until you get back on track or end them so you're not paying for rather pricey services you're not receiving.

4. Credit Card Interest and Late Payments

Avoiding credit card interest and late payments should be a top priority when you're trying to stop hemorrhaging cash. Maybe you can make up the difference by plugging up the other money leaks listed in this article. But, if that's not feasible or if you fall short, consider picking up a side gig, like pet sitting using services like Rover.com and Dog Vacay or driving with Uber or Lyft. I personally do both, and the money I've made from these "extracurriculars" has helped me pay off bills and put a substantial amount of money in my savings account.

5. Mobile Data Overages and Outdated Plans

Many of my friends complain about never having enough data and subsequently having to pay for overages. It's annoying for them because either they have to suck up the cost of going over, or cut back on their data usage, which becomes quite prohibitive after a while. In addition, if you've had the same mobile plan for a while, now is a good time to call your provider to see what savings are available. Last year, I called my mobile provider to inquire about my plan, which had remained the same for about 10 years, and I was happy to come off the call with about $8 in savings per month moving forward.

6. Wasted and Spoiled Groceries

I know far too many people who have pantries packed to the brim with boxed and canned goods that are many years old — and many years past their expiration dates — who continue to purchase even more boxed and canned goods every time they visit the supermarket. It's pure nonsense.

First step, clean out your pantry! Throw out what's expired and the things you know you're not going to eat (or deliver the still-edible goods to a local food pantry), then bring whatever's left to the front of the pantry to be consumed immediately. Next, stop buying items for which you don't have specific plans; this also includes perishable foods. If you not sure when you're going to eat something, why are you buying it? Just in case? Just in case is how you spend way more than you need to at the supermarket. Make a list, check it twice, and stick to it when you next go grocery shopping.

7. Vampire Energy Consumption

Is your air conditioner constantly running — even when you're not home? Do you treat the heat the same way in the winter? TV left on? Dryer turned to high? Faucets dripping? Everything plugged into outlets even when they're not in use?

Every time you quietly answered yes to those questions, it costs you money. To curb your energy consumption, make sure everything is off when you leave the house. Also, unplug non-daily-use electronics and appliances — like that nightstand lamp that you never use — so they're not eating up electricity for no reason. And for goodness sake, fix water and air leaks around the house so you're not almost literally throwing money out the window or down the drain. Be mindful of other ways you may be consuming more energy than you need to, like turning off porch lights, adjusting the temperature in your fridge and freezer, cleaning air filters, and using more efficient cycles on the dishwasher and washing machine if a lower setting will get the job done.

Like this article? Pin it!

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

21 Fresh Food Delivery Services That Can Save You Big

Andrea Cannon — Wed, 28 Oct 2015 11:15:16 +0000

Food delivery services help you stick to your grocery budget, avoid impulse buys, and even save on gas. We've covered some of the best below, and most of them offer free trials. So what are you waiting for?!

1. Instacart

Instacart works by connecting you with a local personal shopper in your area. They handpick the best produce and groceries available, so you can expect the best quality. However, if they cannot find the item you need, most personal shoppers will not send a replacement item.

While many shoppers agree you won't always find the lowest prices at Instacart, most do find that their excellent customer service is worth the slightly higher price tag. With Instacart, you can choose and rate your personal shoppers, compare prices and selection at a range of stores, and even shop at Costco without a membership card. You can schedule delivery within the hour, in two hours, or at a time most convenient for you. They offer delivery in many major cities throughout the U.S.

You can enjoy free delivery if you pay $99 per year for Instacart Express. Otherwise, delivery starts at $3.99 for orders over $35, and $7.99 on orders under $35. They also charge a few dollars more for delivery during the busiest times of the day, which they call "Busy Pricing." The minimum order required is only $10, and you can get your first delivery for free to try out the service with no commitment.

2. AmazonFresh

For the steep cost of $299 per year, you'll receive unlimited free deliveries on orders over $50, cheaper groceries, an AmazonPrime membership, and a free Dash. Dash is a unique tool that allows you to quickly add groceries to your cart by scanning a barcode or speaking into the device.

AmazonFresh offers prices lower than most delivery services and has an unrivaled selection of products. They can even deliver items from local shops and restaurants. If you already have Amazon Prime, you can enjoy a one-month free trial of AmazonFresh with no commitment. They claim to offer same-day delivery, but usually, you will have to wait one to two days. They currently deliver to most metropolitan areas and are expanding their service area constantly, so check your address to see if they deliver to you.

3. Safeway

At Safeway, you will find prices that are better than Instacart, but not quite as low as AmazonFresh. On the other hand, there are no annual charges — only delivery, which may save you money in the end. They offer $12.95 delivery on orders under $150, and $9.95 delivery on orders over $150. Use code EASY7 for free delivery on your first order.

They do offer same-day delivery, but if you're flexible with time, you can save as much as $6. If you include five "participating products" in your order, delivery is also free. Both Safeway (and Vons, a subdivision) offer a great selection of products. You can also place your order on the Safeway app for added convenience.

4. Peapod

Peapod offers affordable prices comparable to what you'd find at the local grocery store. However, they have the highest required minimum order of $60, so they aren't ideal for last-minute shopping. Delivery costs are $9.95 on orders under $100, and $6.95 on orders $100 or more. If you're willing to pick up your order, they'll only charge $2.95 to pack your groceries for you, but you'll miss out on the convenience of delivery. Peapod serves many major cities in the Northeast, as well as select areas of Wisconsin and Illinois.

5. Local Favorites

Some other notable grocery delivery services that are available in select cities include:

Google Express — Select cities
WalmartToGo — Select cities
Fresh Direct — New York City and Philadelphia
Good Eggs — San Francisco
Pink Dot — Los Angeles
Envoy — Southwest and West Coast
Yummy — Los Angeles
Deliveer — Los Angeles and Vancouver
KaleCart — Los Angeles

6. Meal in a Box

There are several "meal in a box" options, where the recipes and all the necessary ingredients are delivered right to your door. These meal subscription services can be delivered on a weekly, monthly, or less frequent basis. (See also: The 10 Best Monthly Subscription Box Services). Some of the most popular options include:

7. Restaurant Delivery Services and Takeout

There is nothing easier than ordering a full meal for delivery straight from your computer or smartphone. Several meal delivery services, like Postmates and DoorDash, will also make a stop at your local drug or grocery store. Some of the most popular restaurant delivery service providers include:

How the Services Work

All you need to do is place your grocery order online or through a mobile app. You can even reference previous orders and favorite items for later. Once you place your order, you can schedule a delivery time, and sit back and wait. Most services offer same-day delivery, some within the hour. Your items will be carefully protected and temperature-controlled during transit, arriving fresh and ready to enjoy.

One drawback to online grocery shopping is not being able to pick out your own items. If you are picky about certain foods (like produce), mention that in your delivery notes for your professional shopper.

Will You End Up Spending More?

Online grocery delivery services are not necessarily more expensive than traditional grocery shopping. In fact, many online grocers offer costs that rival or beat your local store's prices. If you factor in that most shoppers spend at least 10% of their budget on impulse buys, you can save quite a bit by shopping online.

When you shop online, you cannot take advantage of any printed coupons. On the other hand, you can find unique online discounts and promo codes that in-store shoppers won't have. Delivery fees are also very reasonable, especially when you factor in what you would normally be spending on gas. To save even more, make sure to only purchase groceries when you have a fairly large order — smaller orders actually incur higher delivery fees.

Have you ordered food or groceries for delivery? What was your experience like? Please share your thoughts in the comments!

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:

5 Newspaper or Magazine Subscriptions That Are Actually Worth the Cost

Brittany Lyte — Thu, 02 Apr 2015 15:00:21 +0000

Any newspaper or magazine you actually read is worthy of its subscription value. But there are a few publications that offer some additional benefits. From buyer's remorse prevention to stress relief, a subscription to one of these publications is worth the price — and more.

1. Consumer Reports

The expert product ratings contained in just one issue of Consumer Reports could save you from making purchase mistakes that no customer service hotline could fix. This consumer's bible is one of the most highly regarded resources for folks cutting through the spin of advertising in order to identify which consumer products are safe, reliable, and fairly priced. If you've ever bought a product that didn't live up to its name, you know how valuable such a guidebook can be. A subscription to the magazine gets you access not only to new product reviews, but also more than 7,000 archived ratings for appliances, home and gardening tools, electronics, baby gear, food products, and cars.

2. Mindful

Mindful magazine celebrates being mindful in all aspects of daily living. Its pages are filled with how-to guides and anecdotal stories on topics like yoga, meditation, eating with intention, taking time to appreciate nature, and decluttering your home. In short, it's filled with inspiration and guides to achieving inner peace, happiness, and wellness. If you're inspired to meditate after reading a Mindful story about the ancient practice, you'd be well on your way to feeling happier, focused, and more even-keeled. And if you were to follow their guide to decluttering material objects from your living space, you'd be opening yourself up to greater personal fulfillment and self-confidence. Simply reading the magazine won't change your life for the better, but applying its teachings certainly may.

3. Your Local Newspaper

The average American family can save up to $1,000 a year with coupons, and your local newspaper — particularly the Sunday edition — is chock full of them. But there's much more to gain by subscribing to your local broadsheet than supermarket savings. News about jobs, crime, weather, politics, traffic, and building and permitting regulations are essential to navigating modern life. Local news enthusiasts are also more connected to their communities, which just so happens to be an indicator of wellness and health. Belonging to a community gives us a strong sense of identity that researchers say can lead to fewer stress-related health problems, lower risk of mental illness, and faster recovery from trauma or illness.

4. The New York Times

From its searing photographic account of a massacre by gun-wielding terrorists at a Nairobi shopping mall, to an investigation into the millions of dollars in secret payments by European nations to ransom hostages held by the Islamic State; The New York Times produces some of the finest reporting and storytelling in the world. And that was just last year.

Since 1990, the paper has had 117 Pulitzer Prize winners and finalists, more than any other publication. The Pulitzer is widely considered to be the top prize for excellence in journalism, and the fact that the Gray Lady has racked up so many is telling of the value of a subscription. In addition to hard-hitting news, the Times is also a top source for feature stories, travel reporting, health and wellness news, and up-and-coming trends and events in the arts.

5. TIME For Kids

In a survey by Rutgers University, 92% of teachers said classroom magazines like TIME For Kids improve student interest in reading. Now, what parent wouldn't want that? This weekly news magazine puts interesting, educational, and age-appropriate content in the hands of kids with the goal of making them motivated and excited about reading. A powerful teaching tool, TIME For Kids builds reading and writing skills while reinforcing curriculum in subjects like social studies, science, and math. Plus, every issue of the classroom magazine addresses the new Common Core State Standards, further supporting our kids' efforts to succeed at school.

Which subscriptions are essentials in your household?

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

Love Accessories? Surprise Yourself With a Wantable Box

Amy Lu — Fri, 09 Jan 2015 10:00:11 +0000

There are subscription boxes for nearly every kind of product: healthy snacks, dog goodies, coffee and tea, and even craft supplies! For those of you who are into fashion and makeup, it may be worth your while to check out Wantable.

About Wantable

Wantable knows that each person has unique tastes and preferences, so they use a style quiz to make sure they send products their customers will love. You start by choosing a product category: makeup, accessories, intimates, or fitness. Then, answer about 30 questions about the kinds of products that you like or dislike — and it really is just indicating whether you love, like, or dislike the options they present to you. And for $36 a month or $40 for a one-time box (pricing for fitness boxes works a little differently), Wantable will send you a box of goodies handpicked by their stylists.

The Goodies

I have tried a few makeup boxes, but I found that I don’t use makeup often enough to really enjoy the value. Accessories, though? Bring them on! Here’s what I reported as my loves, likes, and dislikes when I took the style quiz for the accessories box:

Love: Mx ‘n Match, Classic, Hair Accessories, Necklaces, Earrings
Like: Boho, Rock ‘n Roll, Scarves, Bracelets, Multi Tone, Gold Tone, Silver Tone
Dislike: Glam, Sunglasses, Watches, Rings

Here’s what I found in my box.

Olivia Necklace

There are a few Wantable pieces that I love on sight, and the Olivia Necklace is one of them. I love mixed materials in my jewelry — adds interest, you know? And the ombre effect of maroon, red, and pink is gorgeous. I’ve worn this necklace a handful of times already, for both casual and dressy occasions, and it made every outfit pop!

Retail value: $32

Shannon Hair Tie in Gold

I like the idea of the Shannon Hair Tie (I was thiiis close to buying a similar chain hair tie at a craft fair booth once) but unfortunately, it isn’t as practical as I’d hoped. The elastic slips through the links if I try to loop it around my hair three times; if I keep it at two, the hair tie falls out of my stubby ponytail in seconds. It will probably work fine for someone with hair that’s of a different texture or volume from mine. My hair, not so much.

It makes a very cute bracelet, though.

Retail value: $8

Amy Earrings in Silver

The Amy Earrings are long, silver spikes. Simple, yes! But don’t underestimate the punch of these studs. There’s an edgy, dramatic feel to these earrings, which I like. They’re also supremely versatile, which I like even more. As a neutral metal, in a very basic shape, this set of earrings will look great with anything in my closet.

Retail value: $15

Ashley Scarf

I have worn the Ashley scarf nearly every day since I got it. There is pretty much every color in the feather print — which means clashing colors is not an issue. It is soft, it is warm (but not too warm!), and since it’s an infinity scarf, there aren’t any ends to get in my way when I need to roll up my sleeves and get things done.

Retail value: $18

Is It Worth It?

The retail value of the accessories in this box totaled $73, which means a savings of $33…so a 47% discount on everything in the box. Although the chain hair tie didn’t work out for me, I know that I’ll get a ton of use out of the other pieces. So, yes, this box is definitely worth it! Sign up for Wantable today!

Disclaimer: I received a free box for an honest review.

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

Ask the Readers: What Subscriptions Do You Pay For?

Ashley Jacobs — Tue, 30 Oct 2012 10:01:29 +0000

Editor's Note: Congratulations to Guest, Leigh, and Amber for winning this week's contest!

There are so many subscription services available today. Everyone has heard of the traditional magazine and newspaper subscriptions. Many people subscribe to Netflix. But did you know there are subscription services that will deliver food, activities for your kids, books, and even clothes to you each month?

What subscriptions do you pay for? Magazines? Newspapers? Netflix? A food delivery service? If you don't have any subscriptions, do you ever find yourself buying magazines at the grocery store checkout or paying for movie rentals at Blockbuster?

Tell us what subscriptions you pay for and we'll enter you in a drawing to win a $20 Amazon Gift Card!

Win 1 of 3 $20 Amazon Gift Cards

We're doing three giveaways — here's how you can win!

Mandatory Entry:

Post your answer in the comments below. One commenter will win a $20 Amazon Gift Card!

For extra entries:

You can tweet about our giveaway for an extra entry. Also, our Facebook fans can get an extra entry too! Use our Rafflecopter widget for your chance to win one of the other two Amazon Gift Cards:

a Rafflecopter giveaway

If you're inspired to write a whole blog post OR you have a photo on flickr to share, please link to it in the comments or tweet it.

Giveaway Rules:

Contest ends Monday, November 5th at 11:59 pm Pacific. Winners will be announced after November 5th on the original post. Winners will also be contacted via email.
You can enter all three drawings — once by leaving a comment, once by liking our Facebook update, and once by tweeting.
This promotion is in no way sponsored, endorsed or administered, or associated with Facebook.
You must be 18 and US resident to enter. Void where prohibited.

Good Luck!

Tell us what subscriptions you pay for and we'll enter you in a drawing to win a $20 Amazon Gift Card!

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

Turn Your Business Into a Money Machine

James Clear — Thu, 03 Nov 2011 18:37:37 +0000

Link:

http://www.openforum.com/articles/turn-your-business-into-a-money-machine

Wildly successful businesses often find one process that works and then repeat it as many times as possible. If you can figure out what this process for your business, then you can grow at an alarming rate. For example, if you know that for every $1 you put in, you will get $2 out, then you can grow without fear. Some people call this achieving scale. Some people call it a money machine. Some people just call it good business.

Regardless of what you call it, I'm assuming you would like your business to be a money machine. Here are three ideas that should help you do just that.

1. Know Your Customer Lifetime Value

Your Customer Lifetime Value is simply the amount of value that the average customer brings to your business over a given time span (usually one year).

If you’re interested in calculating your Customer Lifetime Value, you can find a great explanation of the concept and an Excel spreadsheet that should help you on Occam's Razor.

Long story short, once you know how much each customer is worth to you, then you know with certainty how much you can spend to get a new customer. For example, if you make $15 of profit with each customer, then you can spend $14 bringing a new one in the door and still stay in business.

2. Be Willing to Pay for Customers

To some of you, this will seem like a no-brainer, but you would be surprised how many business owners are hesitant to spend money to make money.

Instead, they tell themselves things like...

"I'll start an email list and do some SEO. Then everyone will sign up and I can pitch them products."

"I want to create the next Facebook for motorcycle enthusiasts. All of the bikers and gear heads will come join my community for free and then I can make money on advertising."

"The foundation of my business is referrals. After all, that's the best strategy right? Happy customers will always bring you more customers."

Now, there is nothing "wrong" with the above statements. And I certainly don't suggest recklessly spending your money (more on that in a moment). But it is important to understand that successful businesses pay to bring quality customers in the door.

3. Create a Closed Feedback Loop

If you want to create a money machine and not waste your precious cash in the process, then you need to have a way to track what works and what doesn't. You need a feedback loop for each marketing and advertising activity you do.

Feedback loop is just a fancy way of saying, "track where your sales come from." You should know exactly which advertising campaigns, marketing initiatives, and actions bring in the most customers.

Yes, it will take some effort to set this up, but it will be well worth it.

Once this feedback loop has been created, then you know for sure where your profits are being generated. That's when you have a money machine on your hands. You know how much your customers are worth to you. You know how much you can spend to acquire them. You know which actions generate the most profit.

Business is good when you know that you can put $1 into the machine and get $3 out the other end.

AMEX Blurb:

This is a reprint of Wise Bread's contribution to OPEN Forum from American Express -- where small business owners can get advice from experts and share tips with each other.

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

Subscription Software: A Good Financial Choice

Thursday Bram — Sat, 17 Jul 2010 02:33:12 +0000

Link:

http://www.openforum.com/idea-hub/topics/money/article/subscription-software-a-g...

Subscription software offers some cost-saving opportunities for the typical small business. Where more traditional software limits the number of computers it can be used on — requiring a separate license for your home computer and for your office computer — many subscription software options simply require that you have enough user names for each employee that will be using the software. More often than not, subscription software is web-based, allowing you access to the tools you and your business need from any computer with an internet connection.

The reduction in cost goes beyond just the number of licenses. If you have an ongoing subscription to a certain piece of software, you won't need to buy an upgraded version of the software every time a programmer makes some changes. Instead, the changes are simply available to you as a part of your subscription. If you are using a web-based tool, you may have access to an upgraded version before you even know that changes are in the works.

The Downside to Subscription Software

On the surface, subscription software seems like an easy solution to many technology concerns that small businesses face. It certainly cuts down on certain types of costs. However, because the subscription software model relies on charging users a reoccurring fee, typically monthly, there's no guarantee that you'll come out ahead financially.

Most online tools come with significantly lower price tags than their one-purchase counterparts. In many cases, the monthly fee is less than if the creator had divided the full cost by twelve, spreading the cost over a year. Salesforce, for instance, offers its most basic plan for $5 a month. Other customer relationship management software are available for a flat, one-time price — but that price is usually closer to $100. That's not the whole story, of course. That is only the most basic plan Salesforce offers, after all. The software provider has plans ranging in price up to $250 per month and you have to pay to add each additional user you want to have access to your account.

Those numbers can add up quickly, especially since subscription software providers work hard to make sure that your business sticks with the service as long as possible. The financial decisions can be easy to make when you're thinking of using a particular tool for a year, but when you start thinking in terms of two years or more, those same decisions can be a lot easier to make. It's tough to determine just how soon you'll need to upgrade, as well as other factors that determine the long-term cost of the software your company needs.

An Easy Entry Point

One of the factors that can make subscription software a better choice for new businesses is that it offers easy options for getting your systems set up and working quickly. It's rare that a small business has a full-time IT staff that can get software up and running for you. But relying on a web-based subscription software can eliminate concerns about how well certain programs will work together and even about getting support. Subscription software providers have more incentive to provide you with great customer support because they need to make sure you won't cancel your service.

It's also easy to grow with subscription software. When you hire a new team member who needs access to your tools, it's often just a question of clicking a few buttons to add a new user to a piece of subscription software. You may need to upgrade your plan and pay a little more per month, but the actual work necessary is minimal. If you're in an industry where time is at a premium, the amount of time such software can save you can be more than worth any price difference you may be worried about.

Overall, subscription software can provide a simpler approach than trying to manage a variety of hardware and software options — a juggling act necessary if you buy most software outright. Whether or not that simplicity is enough to make subscriptions more cost-effective in the long run for your company is something that can vary from company to company.

The Viability of Subscription Software

There is one key concern that should not be ignored as you look at subscription software options: whether that particular piece of software will still be around a few years from now. Right now, there are many new tools available online, on a subscription basis. However, it's not unheard of for a popular piece of subscription software to disappear almost as quickly as it was created. Not all new software companies are able to provide their clients with a guarantee of viability.

Switching between certain subscription software sites can be a difficult process, making it necessary to take concerns into account from the start. No business owner wants to be in the position where he has to move data from one piece of software to another by hand, retyping or copying and pasting each section. To avoid such a situation, it's important to rely on software options that include the ability to export information, preferably into a format such as a spreadsheet or a text file. It's even better if you can find an option that allows you to share information between different applications.

There is one group attempting to make sure that small businesses have a variety of subscription software options, with an emphasis on providing tools that can communicate between themselves. The Small Business Web includes a variety of companies, all of whom make web-based applications that are becoming more integrated. For instance, if you use CRM software created by a member of the group, you can use the data already stored in that application to send out newsletters through newsletter software developed by another member of the organization.

With new tools being developed every day, having different software packages that work well together can make an important difference in how quickly your business can accomplish many tasks.

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:

Three Unique Subscription Services that Might Save You Money

Linsey Knerl — Fri, 07 Nov 2008 05:33:00 +0000

Most of us have used a subscription service in our lifetime. Cable TV, magazines, and movies are usually purchased in monthly installments. I recently took a look at three subscription services that were a bit off the beaten path: MagHound, BabyPlays, and BookSwim. But are they a good deal?

If you’ve ever considered convenience or variety to be valuable, you may find these services to be especially enticing. I haven’t used these services personally, so I can’t vouch for the quality of customer service or the integrity of the products shown. What I can tell you is my experience in purchasing these items traditionally, the cost involved in the subscription plans, and how they could possibly affect your bottom line.

Magazine Subscriptions via MagHound – This is a very creative way to sell magazines. Time Inc.’s new MagHound offers to bundle several magazine subscriptions at a reduced price. If you ever tire of any one title, you can switch it out for another, no questions asked. You can also cancel your subscription at any time. Let’s look at pricing for this service:

3 Titles for $4.95

5 Titles for $7.95

7 Titles for $9.95 (each additional title is $1.00 per month per title)

If you already subscribe to a bunch of mags, this could be a great deal. With no contract requiring you to lock in for a year (or more), you can get magazines for as long as you like (and cancel if you find yourself not being able to justify the cost.) Titles are quality, and at a cost of between $1.50 - $1.60 per mag, per month, it’s a huge savings over newsstand prices. For a magazine like Real Simple, which charges almost $24 a year (or $2 per issue) on their website, this is a substantial savings. Other magazines, like Redbook, only charge $5.99 for 12 issues (or $.50 per issue) from their own site.

Bottom line: You could probably score as good a deal on your own, or through another magazine reseller. If you’re already indulge in several magazine subscriptions, MagHound could make it easier to manage subscriptions, with no obligation to buy further issues. If you’re not already subscribing, however, I wouldn’t suggest adding $4.95 (or almost $60 per year) to your budget.

Toy rental subscriptions via BabyPlays – Maybe your kid is like most and bores easily with that overpriced toy just days after you buy it. If so, you may consider renting an assortment of toys on a monthly basis: This is the premise of BabyPlays.com. Just like Netflix (but with toys), you can check out toys on a monthly basis, and rotate them with new ones when you’re done. Keep the ones that go over well for longer, or choose to buy them for a discount. BabyPlays includes shipping in your monthly fee, so there’s no hassle beyond packing up your “done with” toys. Pricing for this service is set at:

Silver - 4 Toys per month (3 month commitment) for $36.99 per month

Extended Play - 5 Toys per month (6 month commitment) for $26.99 per month

Gold - 6 Toys per month (3 month commitment) for $47.99 per month

Gold Plus - 6 Toys per month (12 month commitment) for $42.99 per month

Platinum - 10 Toys per month (3 month commitment) for $64.99 per month

*All toys can be returned every 30 days, except for the Extended Play plan, which only allows for returns every 60.

The way the pricing is set, toys will cost between $5.40 per toy per month (for the Extended Play plan) and $9.24 per toy per month for the (Silver plan.) If you lose a piece from a toy, you have 30 days to find and return it, or be charged a $5-10 fee. If you fail to properly clean up a toy, you may be charged a $5 fee. If you break a toy, you must buy it at the reduced price (20% below retail.) You can also choose to buy any toys you want to keep at this same price.

Bottom Line: If you are using the service to rent low-cost toys (a puzzle that cost $8, for example) this isn’t really good deal. You could buy new toys for the same cost, and either resell them or donate them to charity if your child really grew that tired of them. For pricier items that you may not want to take the chance on, it may be simply an OK deal. Larger toys offered through the service (like the $55 Zoom Around Garage) will count as 2 toys in your rental service. Personally, I’d recommend shopping garage sales, thrift stores, or clearance racks for toys before I overspend on this service.

Book rental subscriptions via BookSwim – I’ve heard a bunch of good stuff regarding this book rental service. In a nutshell, you check out books much like movies, sending them back when you’re done and getting new ones when they’re available. The plans cost the following prices for an unlimited number of exchanges per month:

3 at a time for $9.95 the first month (then $19.98 a month thereafter)

5 at a time for $12.45 the first month (then $24.97 a month thereafter)

7 at a time for $14.94 the first month (then $29.96 a month thereafter)

9 at a time for $17.44 the first month (then $34.95 a month thereafter)

11 at a time for $19.93 the first month (then $39.94 a month thereafter)

*There’s also a 2 at a time plan for $14.99 a month (not including a first month at a discount, but why would anyone get this rotten deal?

The pricing on this service will cost you between $1.81 and $3.31 per book, per month (not including the atrocious 2 at a time deal) THE FIRST MONTH ONLY (then prices go up. If you can handle having your books shipped via USPS media mail (which can take between 4 and 14 days to arrive), you may get one or two new books per rotation. Here’s the big IF in the matter: Because BookSwim makes you mail back books in bunches (anywhere from 2 to 4 at a time), it may limit your ability to exchange books quickly. If you can get just one exchange per book per month for the first month, it decreases your book cost to between $.90 and $1.65 per book.

Bottom Line: If you have a well-stocked library close by, and you enjoy making the walk/drive/ride, this isn’t a necessary service. Those in remote locations or who fear library late fees, however, might find BookSwim to be an angel from heaven. This is a service that will fair best for the well-read or the homebound. Traditional library geeks might want to save their money.

Do you have any extra advice to share with our readers regarding these three services? What about any competitors offering similar subscriptions? We'd love to hear about it!

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