How to Earn Money Renting a Room in Your House

Converting your home into a vacation rental will bring in extra income, but being a landlord isn't always easy.

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The Syrian Powder-keg: Markets Getting Explosive

With the market’s attention squarely focused on the Fed and China there are some important developments taking this place in Syria. Russia has quietly stepped up support for Syrian President Bashar Al-Assad, sending tanks, ammunition and possibly constructing a new airfield. Syria has long been Moscow’s main ally in the Middle East, home to its only naval base on the Mediterranean, and the only country through which Russia can extend its influence in the region. It’s also home to hundreds of thousands of migrants fleeing for Europe after a three year civil war killed 191,000 of their countrymen.

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What To Do When Stocks Are Flat

Over the long run, stocks rise in value. That's why investors own them. But what about those years when they just meander along, when stocks are flat? That's what has been going on so far this year, so much so that the Dow Jones Industrial Average just broke a record of

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Tuesday Sector Laggards: Materials, Technology & Communications

In afternoon trading on Tuesday, Materials stocks are the worst performing sector, showing a 2.6% loss. Within that group, Mosaic Co (NYSE: MOS) and CONSOL Energy Inc (NYSE: CNX) are two large stocks that are lagging, showing a loss of 7.8% and 7.3%, respectively. Among the high volume ETFs, one ETF closely following materials stocks is the Materials Select Sector SPDR ETF (AMEX: XLB), which is down 2.2% on the day, and down 14.09% year-to-date. Mosaic Co , meanwhile, is down 24.69% year-to-date, and CONSOL Energy Inc, is down 64.35% year-to-date. MOS makes up approximately 2.1% of the underlying holdings of XLB.

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Why Are GoPro & Fitbit Bucking The Sell-off?

GoPro and Ambarella shares are cheap and getting cheaper down here

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Ex-Fremont Street chief going to work for casino operator

The Fremont Street Experience chief who announced his resignation in early September is going to work for a downtown casino operator.

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Canadian Kids, Want to Get Paid to Play? Apply for This Cool Job by Sunday

Imagine having free toys shipped to your home — and getting paid to play with them.

If you live in Canada and have an 11- to 13-year-old, they’ve got a chance to land the coolest job ever.

One lucky Canadian child will follow in the footsteps of Alex Thorne as Toys R Us’ next CPO — Chief Play Officer.

Yes, This Kid Gets Paid to Play

Predictably, Alex said his favorite part of the job was testing the toys: “What kid wouldn’t like toys?”

But he warns that time goes by really fast when you’re having so much fun (and being paid for it) — “like at Mach 1.”

Alex also enjoyed traveling all over Canada for toy-training sessions and testing, and serving as the Toys R Us spokeskid. He even discovered a new passion by doing TV appearances for the gig: “I’ve realized I’d like to be a morning show host,” he says.

Now that he’s stepped down as CPO, he plans to focus on school and his acting career.

Could Your Child Be the Next CPO?

If your kids are falling out of their chairs with excitement, you’re in luck. Alex shared his best advice for landing the job, as well as making the most of this awesome opportunity.

Help your child create a short video — one or two minutes — geeking out over a favorite toy and explaining why she’d make the next great CPO.

Alex recommends you make it as “creative and unique” as possible — “Toys R Us is going to be going through a lot of videos so you want to make yours stand out from the rest.”

Once you have an awesome application video, fill out this form, send it in by October 4th, 11:59pm EST and cross your fingers!

Want to learn more about the job? Read the full interview with Alex here.

Your Turn: Is your child going to apply to be the CPO?

Jamie Cattanach (@jamiecattanach) is junior writer at The Penny Hoarder and a native Floridian. She’s passionate about learning, literature, chocolate and finding ways to live the good life as cost-effectively as possible.

The post Canadian Kids, Want to Get Paid to Play? Apply for This Cool Job by Sunday appeared first on The Penny Hoarder.

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ABC Gives #TGIT Fans Emoji Triggers For Video Trailers On Twitter

Fans of "Scandal," "Grey's Anatomy" and "How to Get Away With Murder" who tweet an emoji-hashtag combination get auto-replies with video previews of the shows.

Please visit Marketing Land for the full article.

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Meet The Britons Getting Rich From The Sharing Economy

The sharing economy is capturing Britons' imagination much more quickly than is understood, with many people now earning substantial sums

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GoPro CEO Nick Woodman Says No To Apple, Admits New Camera Sales Not Meeting Expectations

GoPro's founder also said the company is working on a software initiative to make it easier to edit and share videos in minutes.

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Will The Government Listen To The Market And Lower Streaming Music Royalty Rates?

I have written extensively about the efforts of the recording industry to squeeze blood from the streaming music industry stone by attempting to get allies in Congress and the White House to increase the royalty rate paid by streaming companies like Pandora, Apple, Amazon.com, Spotify, Google Play Music, and other companies.   The battle royale over the future of music streaming has taken a strange and potentially dangerous turn over the past month.

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Billionaire's Tax Status Remains At Heart Of Cameron Tell All Book Scandal

The Prime Minister of Britain has a new scandal on his hands: how much did he know - and when did he know - about Lord Ashcroft's tax status?

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The PS4 Has Already Had An Effecitve Price Cut

The ubiquitous practice of bunding games with the PS4 has effectively reduced that console's price.

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The Luxury Collection Is Readying A New Brand Image, Ad Campaign

Starwood's The Luxury Collection is expected to announce a brand makeover and new ad campaign. The upcoming announcement comes days after rival Ritz-Carlton also announced a new brand identity.

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The Most Counter Intuitive Model To Provide Energy And Sustainability To Small Businesses

When Alexander Bashinov launched his startup company at UVA's i.Lab incubator at the Darden School of Business, he had a dream: to help small businesses get a grip on their electric bills. Two years later, DreamPower is up and running, providing guaranteed savings to Charlottesville businesses, and boosting their energy efficiency and

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Teachers' Unions Take A Victory Lap As Scott Walker Drops Out Of Presidential Race

Teachers’ unions tried their best to ruin Wisconsin Governor Scott Walker’s political career, but in the end he was done in by big dogs like Donald Trump in the race for the Republican presidential nomination. Walker, once a front-runner, announced his decision on Monday to suspend his campaign and asked other bottom-tier candidates to drop out too.

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The Facts Behind Volkswagen's Diesel Gate Nightmare

I spent 11 years as a sell-side analyst following the automotive sector, a process that involved developing relationships with company managements and learning corporate cultures. Five years of that time were spent in London, where Volkswagen AG was one of the companies I followed, and I made many trips to VW's HQs in Wolfsburg and other facilities to meet senior management and view operations firsthand.

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Why Apple Should Build A Car

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Apple's Car Quest: Is Project Titan A Distraction Or Manifest Destiny?

Apple is thinking about adding the auto business to its iPhone juggernaut, but potential profits come with big challenges.

Source Forbes - Business http://ift.tt/1OsGO8U

Why Steve Jobs Was The Exception And Not the Rule

Recent news of the latest iPhone release reminds us all of just how brilliant Steve Jobs was. He imagined — and brought to life — products that revolutionized technology and changed the world. And If you’re the head of a startup with a great new product idea, there are few people in the tech world that will inspire you more.

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Ambitious LNG Project Could Revive Alaska's Fortunes

The proposed AlaskaLNG project to tap and export the state's vast reserves of natural gas could make Alaska the nation's energy leader again.

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America's Most Promising CEOs Under 35

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Oh Volkswagen, What Have You Done!

In what continues to be a year to forget for the German automaker Volkswagen AG, the company, which passed Toyota to become the world’s highest-selling auto company this year, recently admitted to cheating the U.S. emission-control standards. According to the federal regulators, Volkswagen admitted to fitting its diesel vehicles with a defeat device that made it possible for the cars to emit less when tested, compared to the real-world conditions. The intensity of this scandal is high and the scale is massive. Volkswagen now faces large fines, loss in customer trust, disenchantment, and possible backlash from its investors, and maybe even criminal charges.

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How Big Is The Used Car Opportunity For Sirius XM?

With new car sales growth moderating, satellite radio provider Sirius XM is banking on the used car market to provide the next wave of subscriber growth. The company’s CEO, Jim Meyer, has repeatedly said that the used car space provides a substantial growth opportunity and they have made significant initial inroads into this market. However, there still is additional ground to cover.

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Motorola Cutting Expenses To Grow Profits Amid Shrinking Gross Margins

Motorola Solutions' gross margins have declined slowly over the last three years due to weak sales, an adverse sales mix and growing competitive pressures. From 51% in 2012, overall gross margins have come down to 48% in 2014. However, the company’s overall operating margins have expanded from 14.8% to 16.4% (excluding other charges), as selling, general & administrative (SG&A) and research & developed (R&D) expenses have declined relative to revenues. Motorola Solutions’ cost optimizing and restructuring efforts have enabled it to cut expenses significantly. It expects to maintain a firm control over these expenses going forward, while product gross margins are likely to shrink further.

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Charles Schwab Reports Sustained Period Of High Trading Activity

Brokerage firm Charles Schwab witnessed a strong start to the year, with total daily trades standing at nearly 580,000 through the quarter ended in March. Trade volumes were about 5% higher than the comparable prior year period and 5% higher than the previous quarter. The trend continued in the June quarter, with volumes staying slightly higher than the prior year period period at over 490,000 trades per day through the quarter. However, the daily average revenue trades (DARTs) in Q2 were about 3% lower than prior year levels at about 267,000 trades per day.

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Bed, Bath & Beyond Likely Had Another Sluggish Quarter As Industry Growth Remains Soft

Bed Bath & Beyond is expected to release its Q2 fiscal 2015 earnings on September 24th. In the last three months, the company’s stock price slumped by 15% compared to the 6% decline in the Nasdaq composite index, during the same period. The decline started after the company’s Q1 earnings, when it announced a sharply lower net profit margin of 5.8%, 120 basis points lower than the year-ago period’s number. The company also lowered its expectations for the rest of the fiscal year and said that earnings growth is likely to be relatively flat.

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Daily Dividend Report: PNR, PDCO, IBOC, SCHL, NRZ

Pentair (PNR) will pay a regular quarterly cash dividend of $0.32 per share on November 6, 2015 to shareholders of record at the close of business on October 23, 2015. Pentair had previously announced on December 10, 2014 the approval by its Board of Directors of an annual cash dividend rate of $1.28 per share, payable in four equal quarterly installments in 2015.

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Tuesday's ETF with Unusual Volume: SPHD

The PowerShares S&P 500 High Dividend Portfolio ETF (SPHD) is seeing unusually high volume in afternoon trading Tuesday, with over 1.3 million shares traded versus three month average volume of about 141,000. Shares of SPHD were off about 1.4% on the day.

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What's So Awful About The Carried Interest Tax Law?

Carried interest is long-standing tax law that benefits investment managers and investors alike. Historically, carried interest contributed to the growth of the investment management, private equity, real estate and energy industries, and it’s had a positive effect on the overall economy and increasing tax revenues. Carried interest treats all partners the same. It is fair and not withstanding populist politics, the established partnership tax law should be maintained.

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Tuesday's ETF Movers: BSCG, GDX

In trading on Tuesday, the Guggenheim BulletShares 2016 Corporate Bond ETF (BSCG) is outperforming other ETFs, up about 0.1% on the day. Components of that ETF showing particular strength include shares of Dupont (DD), off about 0.4% and shares of Home Depot (HD), off about 1.1% on the day.

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Tuesday Sector Laggards: Non-Precious Metals & Non-Metallic Mining, Precious Metals

In trading on Tuesday, non-precious metals & non-metallic mining shares were relative laggards, down on the day by about 4.5%. Helping drag down the group were shares of Horsehead Holding (ZINC), down about 17.1% and shares of Companhia Siderurgica Nacional (SID) off about 12.3% on the day.

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Tuesday Sector Leaders: Gas Utilities, Rental, Leasing, & Royalty Stocks

In trading on Tuesday, gas utilities shares were relative leaders, down on the day by about 0.4%. Leading the group were shares of Midcoast Energy Partners (MEP), up about 2.6% and shares of Star Gas Partners (SGU) up about 1.4% on the day.

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The Facts Behind Volkswagen's Diesel Gate Nightmare

I spent 11 years as a sell-side analyst following the automotive sector, a process that involved developing relationships with company managements and learning corporate cultures. Five years of that time were spent in London, where Volkswagen AG was one of the companies I followed, and I made many trips to VW's HQs in Wolfsburg and other facilities to meet senior management and view operations firsthand.

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Why Apple Should Build A Car

Source Forbes - Markets http://ift.tt/1WgqRUI

Apple's Car Quest: Is Project Titan A Distraction Or Manifest Destiny?

Apple is thinking about adding the auto business to its iPhone juggernaut, but potential profits come with big challenges.

Source Forbes - Markets http://ift.tt/1OsGO8U

Ad Blocker Usage Highest Among Key Advertiser Demos: Millennials And High Earners

Study by Sourcepoint and comScore shows younger audiences are more likely to use ad blockers and usage is typically highest among the highest income segments.

Please visit Marketing Land for the full article.

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Top 10 Video Creators In August: BuzzFeed Surpasses 1.8B Combined Video Views

After reaching 946 million views in July, BuzzFeed's total video views across all of its brands jumped to nearly two billion in August.

Please visit Marketing Land for the full article.

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Federal Trade Commission To Serve As Opening Keynote For Marketing Land’s SocialPro Conference

Social media is no different than other forms of media, when it comes to making clear when there’s a paid relationship. The US Federal Trade Commission has guidelines that cover this. But people can still be confused. Good news: the FTC has the opening keynote at Marketing Land’s upcoming SocialPro...

Please visit Marketing Land for the full article.

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Who Knew You Could Make $50 an Hour With a Hula Hoop?

Leela Loisel has made an entire career out of hula hoops.

Yes, hula hoops! The toy we’ve all seen — and likely played with — at some point in our lives helps Loisel earns her living.

Whether she’s busking at the street fair in Monrovia, California, building her own custom hula hoops to sell or teaching others how to get their hoop-centric dance on, Loisel is all about the hoop life.

And, fortunately for us here at The Penny Hoarder, she was willing to share how to turn exercise-based fun into a big-time moneymaker!

Perform with Hula Hoops

She breaks out her hoops at community events, “concerts and outdoor parks where music is playing. Then people see me dancing and come up to talk to me,” said Loisel.

“I also have little business cards I printed up, and I’ll sometimes place ads on [websites] for hoopers, but I depend mainly on meeting people in person — word of mouth.”

And it turns out hooping is lucrative. Loisel earns an average of $50 an hour when busking at street fairs. Parents are, by far, her best customers when it comes to street performing.

“Children love hula hooping and they’ll drag their parents over to watch me dance. And then I’ll encourage them to join in,” Loisel said.

“It’s a great way for them to burn energy, and their parents will sometimes hire me to teach them hooping lessons.”

Build and Sell Hula Hoops

Loisel originally began making her own hula hoops so she’d have a variety of different sizes “because different size hoops do different things.”

From there, she started making them for interested friends, and now creates hoops for anyone who’s willing to pay.

“The hoops themselves are made out of plumbing tubing. You can get it at hardware stores, but I prefer to buy it online in bulk” to keep her costs low, she explained.

“I charge $20 to $30 per hoop depending on what kind of tape they want. Different tapes are used for different levels of grip and, of course, aesthetic value,” said Loisel.

Teach Hooping

In addition to teaching others to hoop through Blackbird Dance Company, Loisel also teaches out of her home.

“I charge $15 to $20 an hour for lessons, depending on how many people there are and how far they have to travel to meet with me,” Loisel said.

“I also like to offer a free lesson to anyone who buys one of my hoops — and the people who take me up on it will often come back for more. It’s a great way to market my lessons without being too pushy.”

As a relatively low-impact exercise, anyone can pick up a hula hoop and start manipulating it.

“[A hula hoop is] like a dance partner that you have complete control over,” said Loisel. “It’s wonderful, and no two people hoop alike. My favorite thing is that it gets people to dance who normally wouldn’t dance. It gets [people] to stand up and be part of something!”

Unexpected Benefits of Hooping

In addition to being able to earn a living off of hula hoops, Loisel has found a lot of additional benefits to the lifestyle.

“I don’t work out – all I do is hoop. Not having to go to the gym is great!” she explained.

“And there are days when you’ll be pissed off, but then you can pick up a hoop and instantly feel joyous. And it’s so fun to do with friends.”

“But the best thing that’s come out of hooping, for me personally, is my dog, Porkchop,” continued Loisel. “He originally belonged to a woman I was giving private lessons to. We developed a good rapport and when she had to move away, she gave him to me. He’s my greatest joy, and I wouldn’t have him in my life if it weren’t for hooping!”

Your Turn: How about you? Would you consider hula hooping as a potential money-earner? Let us know in the comments!

Lauren Tharp is a freelance writer and the owner of LittleZotz Writing. Through her website, Lauren helps small businesses bring their brands to life through written content; and she also helps fellow writers get started as freelancers via weekly blog posts, bi-monthly newsletters, free ebooks and one-on-one mentoring.

The post Who Knew You Could Make $50 an Hour With a Hula Hoop? appeared first on The Penny Hoarder.

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George Strait will be opening act in new MGM arena

George Strait, country music's bedrock superstar, will be the anchor act for Las Vegas' new arena, playing exclusive multiple engagements in the new venue in April.

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Pinterest Says Pinners Are Already Planning For The Holidays

Company releases stats that show 38 million people Pinned holiday-related content, including 170 million holiday decor Pins, in 2014.

Please visit Marketing Land for the full article.

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It’s Alive: The Power Of First-Party Intent Signals

How do you achieve true people-based marketing? Columnist Mike Sands explains why it's all about reaching customers at the right time with the right message.

Please visit Marketing Land for the full article.

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How to Spot an Online Dating Scam

One woman's story really spells out how sneaky these criminals are.


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Marketing Men & Machines: Balancing Technology And Human Capital

With the rise of big data, machine learning is offering marketers new opportunities. Columnist Jim Yu explains how the technology can help you create a personalized experience for Web users.

Please visit Marketing Land for the full article.

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Ad Blocking: The IAB Wants To Sue But It Probably Can’t Win

It may premature to call ad blocking a “crisis” for the industry but it’s obviously an area of significant concern for publishers and advertisers. The IAB has suggested that it may sue to try and stop ad blocking; however the prospect of legal victory is dubious. To the surprise...

Please visit Marketing Land for the full article.

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7 Habits Of Highly Strategic Marketers

It's time for you to be more strategic — but what does that really mean? Columnist Patrick Armitage gets into the nitty-gritty of what it means to be strategic and outlines a list of habits that every strategic marketer should adopt.

Please visit Marketing Land for the full article.

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Let Us Now Praise Famous Marketers

Why would a client pay for an advertisement congratulating its service provider for good work? Columnist David Rodnitzky explains the reasoning behind such a move, yet wonders why the industry still thinks this way.

Please visit Marketing Land for the full article.

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Why Buying a Home Is a Smart Investment for Millennials

Millennials have been reluctant to buy homes because of a volatile job market and high student debt.

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Tricks to Saving More Money This Fall

Picking the right decorations on a budget can be a challenge. 

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Starbucks: Mobile order-and-pay now available nationally

NEW YORK (AP) — Starbucks says its mobile app that lets people order and pay in advance will be available nationally starting Tuesday. That means lattes, breakfast sandwiches and other items you want could theoretically be waiting for you by the time you arrive.Mobile order-and-pay is still rare, but could become more common as fast-food chains look to keep up with changing expectations. Taco Bell also introduced a mobile app last year that lets people order and pay in advance, [...]

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Are wage increases ever coming?

Americans want higher wages. Pay hasn't budged in years. It's a problem that goes far beyond those earning minimum wage and fighting for $15 an hour.

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If You Have Savings In Your 20s, You’re Doing Something Right

A few days ago, I read an article containing the absolute worst financial “advice” I’ve ever read. I don’t want to reward it with a link, but if you really want to read it, you can find it by Googling for the title. It’s called If You Have Savings In Your 20s, You’re Doing Something Wrong. It appears at Elite Daily and is written by Lauren Martin.

The entire article is a justification for spending all of your income and more under the idea that your “future self” will bail you out. In short, it sounds like the exact set of excuses I operated under in my twenties. Here’s an excerpt:

I couldn’t enjoy my life because I was too busy worrying about my bank statement. I was too busy watching my savings instead of savoring my youth.

Why did I feel so guilty about spending money on myself and my life?

When did our 20s start to feel like our 40s? When did we get weighed down with the same pressure and stresses as a woman with four kids and a second mortgage?

We don’t have kids. We’ll be renting for the foreseeable future, and we have no problem eating McDonald’s when we’re skint.

I’ve recently figured it out: This pressure, this third-party stress, is ingrained within us. It’s this looming doom our parents carved into our unconscious, only to come out anytime we make an impulse purchase or have to spend the night without Netflix.

But like most things our parents have ingrained in us, we must consciously work to push it out. Because while they may have the best intentions, they don’t always have the best insight.

They want us to save because it provides us with a safety net, but that’s exactly why we shouldn’t. Their need for us to have a safety net is just a giant metaphor for the difference between our parent’s generation and ours.

So, Lauren asks the question why did I feel so guilty about spending money on myself and my life?

Well, I can answer that, because I lived through several years of my twenties where I spent with reckless abandon. I figured out why I felt guilty about spending money on myself and my “life,” and the reason is multifaceted.

First of all, almost everything I spent money on was completely fleeting. If I bought an expensive meal, I enjoyed the experience, sure, but it didn’t last. Two or three days later, I honestly barely remembered it. I couldn’t describe to you a specific meal I had in my twenties as a result of the place that I ate or the food that I consumed. Why? Those kinds of things scarcely matter in life. They just don’t last – they’re instant fulfillment that’s quickly discarded.

Restaurants are just one example of that. Most non-essential things follow that same pattern. You buy them with a burst of pleasure and joy, but then that joy fades out and you’re left with nothing except a lighter pocketbook.

Beyond that, hedonic adaptation is a real problem. Hedonic adaptation is our willingness to very quickly start to view a pleasurable experience as completely normal once we start repeating it. A rare dinner at a fancy restaurant is a great, pleasurable experience, but if you do it weekly, it becomes ordinary and normal but it still costs an arm and a leg.

So, what’s the other concern? The stuff that’s actually lasted in my life are the things I spent time on. I don’t remember fancy meals at restaurants, but I do remember the people I ate with. That experience could have been transplanted almost anywhere else because it was the other people that mattered.

I don’t remember the books that I purchased, but I do remember the books that I read. Thus, it made sense to use the library rather than buy them. The same thing goes for DVDs. The meals I remember most in my life were ones that I made myself or together in the kitchen with my wife.

Most of the things I’ve ever spent money on in my life are completely forgotten. Most of the things I’ve spent real significant time on are things that changed my life for the better.

The final part of the picture? Money, properly used, gives you the opportunity to spend your time in ways that are more important to you. A big part of my ability to walk away from a nine-to-five job and start off on my own entrepreneurial dreams was due to my realization that buying things that didn’t last in my heart and mind was ensuring that I wasn’t going to have that dream.

Oh, don’t worry, Lauren wasn’t done yet! Here’s another bit from the article.

They want us to save because it provides us with a safety net, but that’s exactly why we shouldn’t. Their need for us to have a safety net is just a giant metaphor for the difference between our parent’s generation and ours.

A safety net is nice, but the real value in saving is that it provides opportunity. If you’re constantly broke, it’s almost impossible to walk away from a job that doesn’t treat you well unless you already happen to have another job lined up. You can’t launch a business without savings unless you’re allowing a bank to come in, take a bunch of the equity, and suck all the value out of it for you. You can’t afford to spend a big chunk of money on something you can flip quickly for a profit, like when I flipped $1,000 worth of Magic: the Gathering cards into about $4,000 a few years back. You can’t walk away from your job to take care of an unexpected child if you’ve got nothing in the bank.

Money in the bank gives you options, and if you’ve spent that money instead on a bunch of forgettable things, you’ve sacrificed your options for literally nothing.

Let’s keep going!

When you’re too worried about your bank statement, you’re not making your own.

When you live your life around your retirement fund, you may as well retire now. You can’t make a mark on the world if you’re too cheap to live in it.

Refusing to give yourself the luxury of enjoying your money negates the whole point of making it.

Do you want to hear how I enjoy my money?

I enjoy it by being able to work in a t-shirt and a pair of comfortable jeans.

I enjoy it by being able to be sitting at the front step when my kids come flying home off the bus, giving their dad a big hug.

I enjoy it when I’m able to show up at my wife’s work during her lunch break with a bouquet of hand-picked flowers, kissing her on the cheek.

I enjoy it when I can not worry at all about the future and not have to put my hopes and dreams in the hands of a completely unreliable “future me.”

I enjoy it when I’m in control of the decisions in my life and I’m not relying on the whims of the job market being in my favor.

The luxury of enjoying my money comes from having money in the bank and not from having spent it on things that I won’t remember in a week.

When you’re saving for yourself, you’re refusing to bet on yourself.

People who are saving in their 20s are people who don’t set their sights high. They’ve already dropped out of the game and settled for the minor leagues.

Your 20s are not the time to save; they’re the time to gamble. $200 a month isn’t going to make the dent that a $60,000 pay raise will after spending all those nights out networking.

Do you want to spend your 20s building your life for a long-lasting and lucrative career? Go to graduate school or build a business or crank out some amazing projects at work. Don’t spend your evenings going out “networking” and definitely don’t spend them buying a bunch of forgettable stuff.

I used to spend many nights out networking with my peers and with people ahead of me on my career path. Do you want to know what it got me? It got me nothing in terms of my career, but it did give me a pretty hefty credit card bill.

Of course, like most people, two years later I found myself on a completely different career trajectory. While I still keep in touch with a few of those people, almost all of the relationships from my previous career have faded away.

Networking is overrated. I’d far rather have five valuable, lasting relationships than two hundred people in my “network.” Spending nights out “networking” never did a thing to build those valuable, lasting relationships, because those people sailed right out of my life the instant one of us had a career or life shift. Going out for “networking” is the equivalent of throwing darts while blindfolded.

Do you want to know which of those people I still connect with? It’s the people I had over to my house for home-cooked meals. It’s the people with whom I watched Office Space on a borrowed projector late at night. It’s the people with whom I watched the World Cup in their living room while eating some of the rice and tofu they had prepared. It’s the people that I sat out in the hall with discussing algorithms and life.

Again, it’s about the time, not the money. You don’t have to spend money to build valuable relationships with people.

If you want to “bet on yourself” in your twenties, do the things I suggested. Step up to the plate at work and take charge of some projects. Connect with an older mentor or two. Go to graduate school. Start building a business in your spare time. The other things, like “networking,” are just excuses to spend money under the pretense that they’ll help your career but are just as forgettable as almost any other way of spending money.

When you have something to bank on, you have nothing to reach for.

When you have nothing to lose, you have everything to gain.

You’d be surprised at how cautious people get with just a few thousand in the bank. This isn’t the time to safeguard — it’s the time to bet all your chips and hope to make it big.

You think that if you have something in the bank, you have nothing to reach for? You’d be surprised at how cautious people get with just a few thousand in the bank? Do you want to know what I did when I had a few thousand in the bank? I quit my very secure, well paying job to stay at home and write for a blog. Please, explain to me the caution in that decision.

The thing is, that’s not a decision I would have made if I didn’t have a few thousand in the bank. Having that few thousand in the bank stripped away most of the fear of making that decision. I knew that if I fell flat on my face, I could pick myself up off the mat and get back on another track without having to starve or to rely on my parents.

That brings up another issue: if your parents are your “emergency fund,” then you are not a financially independent person. A person who is actually on a financial tightrope is a person who cannot possibly risk losing their job unless they have another one firmly in hand. A person who is on a true financial tightrope needs money in the bank for situations where their car fails or they show up to work and find a pink slip.

You need something for those situations or else you’re going to eventually fall to a very difficult situation to get out of. If your “something” for that situation is to call the parents, then you’re not standing on your own two feet.

When you live your life by numbers, you strip yourself of poetry.

What memorable experience does money in the bank give you? How well-rounded can people become sitting at home, watching their limited funds gain interest?

Life is to be lived, not watched from the inside of your rent-controlled apartment.

When you deprive yourself, you don’t learn how to TREAT YO SELF.

It’s good to be cautious and plan for unexpected events. It’s also good, however, to learn how to release and destress. Everything works out, and if you’re smart, able and had a job once, you’ll have one again.

Don’t waste your youth worrying about expenses when you should be worrying about experiences.

In the last seven days, I went to a concert with hundreds of people, I watched a presidential candidate give a speech, I got utterly lost while going off the trails on a hike, I ate a mind blowing butternut squash risotto, I hung out with a bunch of friends playing board games for several hours, I tasted a crazy chocolate peanut butter stout beer, I read a book that has left me thinking for many days… and many more things that I can’t list here.

The total cost of those things was virtually nothing. The beer and the risotto were homemade. The book came from the library. The concert was free, as was the speech. The board game night was free, too.

People who are careful with their money aren’t “watching life from the inside of their rent-controlled apartment.” They’re actually out there finding experiences and living life. They’re just creative enough and open enough to new experiences to find lots of engaging things to do without emptying your wallet.

This last one, though… this one takes the cake.

When you care about your 401k, your life is just “k.”

When you’re 40, you’re not going to look back on your 20s and be grateful for the few thousand you saved. You’re going to be full of regret.

You’ll regret the experiences you didn’t take, the people you didn’t meet and the fun you didn’t have because you were too worried about a future that came and went.

After all of the money I wasted on completely forgettable things, the one financial thing I don’t regret from my twenties is that I made some retirement contributions.

Why don’t I regret that? It’s because of the power of compound interest. Let me explain it in detail, because this is apparently a concept that even published writers seem to miss out on.

Let’s say, for convenience, that the stock market returns a steady 7% a year going forward. Let’s say that you put away $50 a week into your 401(k) at age 23, adding up to just $2,600 for that year. That amount will impact your paycheck even less; if you’re paid weekly, it’ll only go down $30 or $40. When you’re at age 70, that $50 a week you contributed at age 23 will have turned into $62,518.

Now, if you waited until age 40 to contribute that $50 a week to your 401(k), adding up to just $2,600, it would be much worse. At age 70, that $50 a week you contributed to your 401(k) at age 40 will have turned into $19,791.

The amount is exactly the same – $50 a week – but if you put it off from age 23 to age 40, you lose $42,726.

Contributing to your 401(k), especially in your early twenties, makes retirement savings incredibly easier throughout your entire adult life. It will take the pressure off in your thirties, forties, fifties, and sixties. It will make your entire adult life easier.

On the other hand, not contributing puts extra weight on your future self. You’re choosing to make things harder on yourself throughout the rest of your adult life.

Final Thoughts

In the end, the real message of this article is that there are a lot of excuses for instant gratification.

Most of this article is all about excusing instant gratification for people in their twenties. Almost every argument is that it is okay to spend your money now rather than later.

There’s no consideration whatsoever of approaching one’s spending with thoughtfulness. There’s no consideration whatsoever of the countless options we all have to have meaningful experiences without throwing money at it. There’s no consideration whatsoever of saving your money for meaningful, lasting purchases rather than things you’ll just forget in the next few days.

It all comes across as an unthoughtful series of excuses to spend money now on whatever happens to be the faint desire of the moment, without any degree of self-reflection.

If there’s one simple thing I’ve learned over the past several years of living a more financially responsible life, it’s this: almost all of the good things in life, the things that have genuinely lifted me up and brought me lasting joy and happiness, were bought with time and not with money. On the flip side of that, the times that I just threw money at something have virtually never brought me lasting joy and almost always brought me sadness when I looked back on them and reflected on the money that I spent and the opportunities that I lost because of that spending.

That’s a guideline that I truly wish I had in my life when I was in my latter years of college and throughout my twenties. If I had followed that kind of guidance, instead of following many of the ideas in this article, I would be in an even better place than I am right now.

The post If You Have Savings In Your 20s, You’re Doing Something Right appeared first on The Simple Dollar.

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6 Creative Ways to Enjoy Costco’s Deals Without Buying a Membership

Big box warehouses like Costco have many advantages, from bulk sizes to fantastic store brands, but the $55 membership fee isn’t one of them!

While I know several people who split the membership cost with family members, neighbors, roommates and friends, it’s still nice to avoid the extra cost. And you can — if you use these strategies to shop at Costco without a membership.

Here are six clever ways to enjoy all the benefits of Costco without paying for an annual membership.

1. Use a Costco Cash Card

Here’s a big secret Costco probably doesn’t want you to know: You can shop without a membership as long as you have a Costco Cash Card.

“Non-members may use the cash cards to shop at any Costco location in the United States, Canada, Puerto Rico and online at Costco.com or on Costco.ca,” says Costco’s website.

Only members can buy Costco Cash Card from the store’s website, but that’s OK. Use this trick to save even more money: Buy your Cash Card on eBay or from a discounted gift card site like Raise.

It doesn’t matter how much is on the card; even a card with $2 left will get you in the door and pay for part of your purchase. Then you can use cash, a debit card or an American Express credit card to pay for the rest.

2. Visit the Pharmacy

Prescriptions can be expensive, but you can usually find cheaper prescription medications at Costco.

By law, you don’t have to be a member to access pharmacy services. Go ahead and fill new or existing prescriptions at the Costco Pharmacy.

Don’t feel like leaving the house? Order online and you’ll get your prescription within six to 14 days via free standard USPS shipping.

3. Go for Hearing and Optical Services

Not all warehouses offer these services, but if yours does, Costco is a great place to go when you need to get your ears or eyes checked by trained professionals. The same law that helps you access the pharmacy means you can use these services.

Many stores also hold special events to promote hearing and optical products, and you can often attend these events without being a member. However, if you want to buy glasses or hearing aids, you’ll need to either purchase a membership or use a Costco Cash Card as explained above.

4. Shop at Costco.com

Say you are looking for the best deal on a TV or iPad, but you don’t want to buy a membership for just one purchase. Look for your item on Costco’s website — non-members can order online, though you’ll want to consider the price.

Without a membership, you’ll have to pay a 5% fee on your purchase, which means this trick only makes sense if you’re spending less than $1,100 (meaning the surcharge will be less than the $55 annual membership).

However, the website accepts all major cards, so you can use your favorite rewards credit card to make your purchase.  

5. Hit the Outdoor Food Court

Costco pizza is so good! For only $1.99, you’ll definitely want to try a slice. Or to feed a few more mouths, like at a birthday party, the large pizza is only $9.99.

If you’re more of a hot dog fan, the $1.50 dog-and-soda combo is a great, cheap lunch.

Many warehouses have outdoor food courts, which you can visit as a non-member. Remember to bring your wallet, though, as they only take cash.

6. Compare Prices

Not sure whether Costco will help you save money? Take a stroll around the store and check out prices on the items you buy most often to see if the warehouse really is cheaper than your local grocery store.

Ask a customer service for information about membership, then mention that you’d like to look around for a few minutes.

If you see enough savings, you might be tempted to spring for the membership after all!

Your Turn: Do you know any other tricks for shopping at Costco as a non-member? Or have you decided to a membership makes sense for you?

Disclosure: We have a serious Taco Bell addiction around here. The affiliate links in this post help us order off the dollar menu. Thanks for your support!

As a Costco member for 10 years and a blogger at Savingsmania.com since 2003, Diane Schmidt has helped friends and family get great deals at Costco. Besides loving their products and prices, she has saved at least $7,000 shopping there.

The post 6 Creative Ways to Enjoy Costco’s Deals Without Buying a Membership appeared first on The Penny Hoarder.

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10 Investment Predictions for 2030

This is what investing may look like in 15 years, according to our experts.


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What Is a Reverse Mortgage and How Does It Work?

As a cash-strapped senior, a reverse mortgage may sound like a tempting way to stay in the home you love. But beware the high fees and other drawbacks associated with this type of loan. Photo: Chad Miller

Perhaps it took decades of mortgage payments, but you’ve achieved what’s still a dream for many: Homeownership (or, at least, substantial home equity). But like many seniors, you’re still on a very tight budget.

You see a commercial pitching a reverse mortgage, telling you that you can convert your home equity into cash as you live in your home. It seems like a no-brainer. After all, what good is all that equity if you don’t want to sell?

Reverse mortgages have undeniable appeal for cash-strapped seniors, but they also have enormous costs and many potential pitfalls. We’ll cover the basics of reverse mortgages below, including how they work, interest rates and fees, the pros and — perhaps most importantly — the cons, as well as some alternatives you’ll want to understand before signing on the dotted line.

What Is a Reverse Mortgage?

A reverse mortgage is a very specific kind of loan for homeowners 62 or older who either own their homes or can easily pay off their primary mortgage, either with savings or the help of the reverse mortgage.

A reverse mortgage taps (and slowly drains) the equity you’ve built up in your house. In most cases, you can use the money for anything. Payments are usually tax-free.

As long as you still live in your home, you won’t need to pay back the loan. However, if you sell the house, move out, or die, it must be repaid — whether that’s by you, your spouse, your heirs, or your estate.

What types of reverse mortgages are there?

There are three different kinds of reverse mortgages: home equity conversion mortgages, single-purpose reverse mortgages, and proprietary reverse mortgages.

• Home equity conversion mortgages, also known as HECMs, are the most popular reverse mortgages by far. HECMs are insured by the Federal Housing Administration, though the money still comes from private lenders. You will be required to receive borrower counseling before you can get an HECM.
• Single-purpose reverse mortgages are different from other reverse mortgages because the lender specifies what the money can be used for, such as home renovations. According to the Federal Trade Commission, these are available through some state or local government agencies and nonprofits.
• Proprietary reverse mortgages are the type you’re likely to receive if you go through a private lender. They aren’t subject to the same rules and regulations that govern federally backed reverse mortgages. They might be a better bet for owners of high-value homes who want to receive more of their equity than they could get through the federal HECM program.

How much can I receive with a reverse mortgage?

The amount you can get through a reverse mortgage will vary based on several factors: your age (or the age of your spouse, if he or she is younger), current interest rates, and your home’s value.

In the case of HECMs, reverse mortgages are capped at $625,500, but there’s no such limit for non-HECM reverse mortgages. You’ll generally be eligible for a bigger loan if you’re older and your house is worth more.

According to the National Reverse Mortgage Lenders Association (NRMLA), you’ll only be able to access up to 60% or your loan in the year after closing if you go with an HECM. After the first year, you can tap the remainder of the loan at your discretion.

How will I receive my reverse-mortgage payments?

You’ll have a variety of options for receiving the money. Typically, you can request either a lump-sum payment; fixed monthly payments for a certain time period; fixed monthly payments for as long as you’re in the home; or a line of credit that lets you choose how much you want to receive and when.

You may also opt to receive one portion of your reverse mortgage payments via a line of credit and another portion via fixed payments, whether that’s for a certain term or as long as you’re in your home.

What Costs are Associated with a Reverse Mortgage?

Reverse mortgages don’t come cheap. Unfortunately, most lenders don’t publicize rates for reverse mortgages, but interest rates are typically higher than what you’d pay with a conventional mortgage or home-equity loan. Fees can easily tack on thousands of dollars. In general, however, you will receive a lower rate with a federally backed HECM than a proprietary reverse mortgage.

How is my interest rate determined with a reverse mortgage?

Today, most reverse mortgages have variable interest rates. Your rate is typically tied to a certain rate index such as the one-month LIBOR that will go up and down with the market. The lender will add a margin of roughly two to three percentage points on top of that index to determine your rate.

Your lender doesn’t hold back a portion of your payments to cover interest. Instead, the interest compounds until repayment, when it must be paid along with the principal.

Fixed interest-rate reverse mortgages are out there, but you’ll probably be forced to take a lump-sum payout with this option, notes the FTC. You may also be limited to a lower amount than you could receive with a variable-rate reverse mortgage.

What kind of fees will I pay?

Fees can be quite steep on a reverse mortgage. Here’s what you can expect:

• Origination fee: This varies by lender, but with HECMs, it’s capped at 2% of the first $200,000 of your home’s value and 1% of the remaining value. The total is capped at $6,000.
• Home appraisal: Unfortunately, no one is going to take your word for what your home is worth. An official appraisal averages $450, according to the NRMLA.
• Closing costs: Remember all those fees you paid when you closed on your primary mortgage? They apply here, too, and may include fees for credit reports, title searches, document preparation, and much more. The total, which is highly dependent on your lender and location, could run anywhere from several hundred dollars to a couple thousand.
• Service fees: Your lender may charge a fixed monthly fee that is typically capped at $35, according to the NRMLA. This money is set aside during closing, and since the total is based on your age and life expectancy, it could be several thousand dollars. Other lenders may roll service fees into the loan’s interest rate.
• Mortgage insurance: If you decide on an HECM, you will be on the hook for an annual mortgage insurance premium, or MIP. MIP does two things: It makes sure you’ll still receive your money if your lender closes shop, and it ensures you won’t owe more than your home is worth once your HECM must be repaid. Initially, MIP is based on the amount of money you receive via your HECM during the first year: As long as you don’t take more than 60% of your funds, the MIP will be 0.5% of your home value. This number balloons to 2.5% if you take more than 60% of the funds, however. Then, in both cases, it adjusts to 1.25% annually. The MIP accrues over time and will be due once you repay your reverse mortgage.

If you’re considering a reverse mortgage, you probably don’t have thousands of extra dollars lying around to cover these fees. Most lenders will simply roll them into the loan so you don’t pay out of pocket.

Keep in mind, however, that this simply means you or your heirs will owe more — much more, because of interest — in the long run.

What are the Pros and Cons of a Reverse Mortgage?

As with any major financial decision, there are upsides and downsides to choosing a reverse mortgage. While the major upside — money in your pocket — is pretty clear, you may not have thought of some of the potential downsides.

Reverse mortgage pros

• Needed income: This is the most obvious benefit of a reverse mortgage. If you’re barely scraping by, a reverse mortgage can give you the additional funds you need to stay afloat, whether that’s for day-to-day expenses, medical bills, or other debt payments.
• Relaxed eligibility: Most conventional loans require a steady income and good credit. Perhaps you have neither. As long as you’re over 62 and own most or all of your home, you’ll probably still be eligible for a reverse mortgage.
• Flexibility: As we mentioned above, most reverse mortgages can be paid out as a lump sum, monthly payment, or line of credit. Most can also be used for any purpose — though, as we hope you’ll see below, a reverse mortgage is a very pricey, risky way to finance discretionary spending.
• Tax-free payments: Your reverse mortgage payments are not considered income; rather, they’re considered loan advances and aren’t taxable. However, note that interest is not tax-deductible until the loan is repaid.

Reverse mortgage cons

• High interest rates and fees: You’ll pay dearly for the convenience of a reverse mortgage, with rates and fees that are heftier than those of a conventional mortgage or home equity loan. Once you account for them, you may be surprised at how little you actually receive — and how much must be repaid. High fees make a reverse mortgage a particularly bad deal for anyone who thinks they may move in the near term.
• Loss of long-term freedom: Though you’ll gain short-term stability by receiving reverse mortgage payments, it could cost you your long-term financial freedom. For example, if your health suddenly nose dives and you must move in with an adult child or into an assisted living facility, you’ll suddenly have to repay your loan.
• Can affect benefit eligibility: Depending on how you receive your funds, a reverse mortgage may affect your eligibility for Medicaid or Supplemental Security Income (SSI) because you are limited to a certain amount of liquid assets to qualify. Regular Social Security and Medicare benefits should not be affected.
• You’re required to maintain your home: Living there is not enough — you must pay all homeowners insurance and property taxes on time and perform regular upkeep so that your home’s value does not tumble. If you fall behind in these areas, your lender could demand repayment.
• A burden for your heirs: After you die, your children or other heirs are responsible for paying off the reverse mortgage loan. Though the lender can’t try to seize your heirs’ assets for payment, they’ll still have the burden of deciding what to do with your home. Typically, they’ll pay back your loan by selling the property. They can also pay off the loan with other resources and keep the house, or if there’s no equity left, sign over the deed to the lender. This is all assuming lenders play by the rules — some unscrupulous ones do not.

Alternatives to a Reverse Mortgage

If money is tight, be sure to investigate all of your options before opting for a reverse mortgage. With the alternatives below, your house will still be your own asset (or if you die, that of your heirs).

While we won’t cover it below, be sure to weigh returning to the workforce (even part time) if you’re able, or if you haven’t left the workforce, delaying retirement. These alternatives also assume you’ve investigated tapping any other available assets and evaluated your eligibility for SSI or other benefit programs.

• Refinance your existing mortgage: If you’re still paying down your first mortgage and can wrangle a lower rate by refinancing, you can lessen your monthly payment and get a little more breathing room in your budget. You will pay closing costs, but if you are going to be in your home for several more years, it still makes sense.
• Traditional home equity loan or home equity line of credit: Home equity loans and lines of credit (HELOCs) are generally a better deal than reverse mortgages because of lower interest rates and fees, and the interest is usually tax-deductible. A fixed-rate home equity loan can be easy to budget for, and a HELOC can provide the convenience of cash on an as-needed basis. However, with either option, you must have a steady income to make payments. To learn more, check out our article What Is a Home Equity Line of Credit?
• Sell your house and downsize: This option will require some soul-searching — after all, part of the appeal of a reverse mortgage is staying in your home. However, if you’re struggling to keep up with upkeep or high property taxes, it makes more sense to access your equity through a sale and find a smaller, less expensive place to call home. A related alternative could be finding a roommate to help with the costs.
• Sell your house to a family member, then rent it from them: Though you’ll still need to carefully get everything in writing, this can be a win-win for everyone: Your family receives rental income, you get to stay in your house, and your house remains in the family when you die.

If You’re Considering a Reverse Mortgage, Proceed with Caution

Slick reverse-mortgage advertisements often do a good job of obscuring the truth, according to the Consumer Financial Protection Bureau. The truth is that a reverse mortgage is a loan with very high interest rates and fees. Moreover, it’s a loan that must be repaid — a simple point that some ads conveniently forget to mention.

Other ads imply that a reverse mortgage guarantees financial security. It does no such thing — you can get a reverse mortgage too soon and run out of equity, or you can fall behind on property taxes and upkeep and be forced out of your home. And even if a reverse mortgage keeps you afloat, it can mean you won’t have as much (if anything) to pass on to your heirs.

In short, there’s a reason most financial experts recommend reverse mortgages only as a last resort. Be sure to weigh all the pros, cons, and alternatives before you opt for a reverse mortgage.

The post What Is a Reverse Mortgage and How Does It Work? appeared first on The Simple Dollar.

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Christmas comes extra early at Coles

IT’S only September, but shoppers were outraged to see shelves groaning with mince pies and puddings this weekend. Woolies was even quicker off the mark.

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NS&I proves exception as savings rates creep up

Sylvia Morris

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National Savings & Investments (NS&I) is to cut the rate on its Direct Isa by 0.25 percentage points to 1.25%, from 16 November. The cut comes as rates from other banks are edging up.

National Savings & Investments (NS&I) is to cut the rate on its Direct Isa by 0.25 percentage points to 1.25%, from 16 November. The cut comes as rates from other banks are edging up.

NS&I proves exception as savings rates creep up

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National Savings & Investments (NS&I) is to cut the rate on its Direct Isa by 0.25 percentage points to 1.25%, from 16 November. The cut comes as rates from other banks are edging up. Post Office, where the deposit taker is Bank of Ireland, has raised its Online Isa rate to 1.51% for new savers. The rate includes a bonus of 0.86 percentage points, which is payable for the first 12 months after you open an account. Virgin Money Defined Access Isa also pays 1.51% with no bonus, although you are limited to making three withdrawals a year from your account. The best deal with no bonus and no withdrawal restrictions is Nationwide's Instant Isa Saver Issue 3 at 1.4%. Both accept transfers from other providers. On fixed-rate cash Isas, Shawbrook Bank has upped its rate to 1.85% if you are willing to tie your money up for one year. Virgin Money is the next best payer at 1.76%. For two years Virgin Money pays a top 2.06%, just ahead of Coventry BS at 2.05% fixed until 30 November 2017. On easy-access taxable accounts Tesco Bank has raised the rate on its Internet Saver to 1.6% before tax (1.28% after tax) for new savers. The rate includes a bonus of 0.85 (0.68) percentage points for the first 12 months, after which the rate drops to 0.75% (0.6%). This makes it one of the top-paying accounts, matching the 1.6% (1.28%) from BM Savings (which includes a 1.35 (1.08) percentage point bonus for 12 months). The best rate comes from French-owned RCI Bank, at 1.65% (1.32%) with no bonus. But you are covered by the European deposit protection scheme on this account, which gives you €100,000 (around £72,400) rather than the £85,000 available under the UK scheme. On fixed rate deals you can earn 2.06% (1.65%) with both RCI Bank and Charter Savings Bank for one year. For two years RCI pays a top 2.35% (1.88%) and Charter Savings Bank 2.28% (1.82%).

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Selfie drones could be the next big thing

LOVE getting that ultimate photo of yourself? Well forget the selfie stick, you could soon save your arms and just get a drone to take that shot for you.

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Don't be ripped off by a 'free' balance transfer

Tom Wilson

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Borrowers could be caught out by hidden balance transfer fees with just one in 20 understanding the true cost of 0% interest deals.

Borrowers could be caught out by hidden balance transfer fees with just one in 20 understanding the true cost of 0% interest deals.

A survey of consumers by Which? found just 4% of respondents could correctly say what they'd be charged for a 0% interest balance transfer.

Don't be ripped off by a 'free' balance transfer

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Borrowers could be caught out by hidden balance transfer fees with just one in 20 understanding the true cost of 0% interest deals. A survey of consumers by Which? found just 4% of respondents could correctly say what they'd be charged for a 0% interest balance transfer. A quick look at the tables at http://ift.tt/1FB65V5 shows the longest 0% balance transfer deal on the market – Virgin Money's Virgin Balance Transfer Credit Card (37 months) – comes with a fee of 2.79%. This means that a borrower moving a balance of £3,000 to the card would be charged £83.70. However, when questioned by Which?, more than two-thirds (68%) of people thought a transfer would be free, even when shown details of fees. And when given the choice between three cards, a third of respondents picked a card that would have cost £80 more than the best deal on the table. The consumer group has proposed changes to make balance transfer fees clearer, including showing fees in pounds and pence, rather than as a percentage, or banning firms from advertising balance transfer deals as 0% when they carry a fee. Which? executive director, Richard Lloyd, said: "Too many credit card deals appear to include sneaky fees designed to catch customers out. With millions now using credit cards to pay for essentials, it's vital that the Financial Conduct Authority takes action to ensure consumers are well protected. We want the regulator to scrutinise balance transfer deals and make it easier for people to understand their true cost." Which? estimates a fifth of new cards issued in the past two years were for balance transfers, and recent figures from the UK Cards Association said 42% of all UK credit card balances incurred no interest. How to find the right balance transfer? Providers are jostling to offer the longest 0% balance transfer deals, with several offering to charge no interest for at least three years. However, these ultra-long deals include transfer fees of between 1.75% and 2.79%, which, as mentioned above, could cost up to £83.70 for a £3,000 balance. However, several cards offer generous 0% balance transfer periods and no upfront fees. Providing you repay the minimum balance each month and don't go over your credit limit, these can work out substantially cheaper. The newly launched Halifax Balance Transfer Card offers the longest fee-free 0% deal. There's no interest to pay on balance transfers for 20 months and purchases are also interest free for the first six months. After the introductory rates end, the card has an 18.9% representative APR. Alternatively, the Tesco Bank Clubcard Credit Card has the option of 19 months 0% interest on balance transfers, again with no fee. It'll charge you no interest on purchases in your first month and also give you five Clubcard points for every £4 you spend in Tesco, and one point for every £8 you spend elsewhere.

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Source Moneywise http://ift.tt/1MGkYhU