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الأربعاء، 30 ديسمبر 2015

Think You Have a Lot of Credit Cards? You Won’t Believe How Many This Guy Has…

I don’t like having a full wallet.

Once I start carrying around more than one credit card, I get stressed. The pressure to shop until I drop is just too great.

So, I regularly clean out my wallet and use the same credit card over and over, for most of my purchases.

Turns out, I’m not much different from Walter Cavanaugh.

Except I have a handful of credit cards to my name… and Cavanaugh has 1,497.

He has so many credit cards, he’s been dubbed Mr. Plastic Fantastic by the Guinness Book of World Records since 1971, according to a profile by ABC News.

How Many Credit Cards are Too Many?

Cavanaugh started collecting credit cards in a bet with a friend in the 1960s, ABC News reports.

Cavanaugh quickly left his buddy in the dust, and eventually found himself with $1.7 million available in credit. He’s got cards from everything from airlines to gas stations to independent shops.

But he’s not flipping through his wallet every time he wants to make a purchase. It’s probably a good thing — he also holds the record for world’s longest wallet.

Most of his 1,497 cards are stored in safe deposit boxes. He relies on one card to get him through his day-to-day purchases.

“I have a nearly perfect credit score,” Cavanaugh told ABC News. “I only use one card and I pay it off at the end of the month. But you should see the length of my credit report — wow!”

What to Do With Nearly 1,500 Credit Cards

Cavanaugh’s in an ideal debt situation — he doesn’t have much debt, if any.

But if he wasn’t so frugal, it’s easy to imagine the ways he could put his thousand-plus credit cards to use.

He could use balance transfer offers to keep bouncing debt from card to card, eventually paying off charges without hefty interest fees.

He could also rake up major points on his miles credit cards and travel around the world.

But maybe it’s best that Cavanaugh lives a quiet life with just one collection to keep him busy. Credit cards take up way less space than a collection of Precious Moments dolls or project cars.

But can you imagine the amount of mail — both monthly statements and credit card offers — he must get each day?

Oh, the burden of holding a world record.

To learn more about Walter Cavanaugh’s credit card collection, visit ABC News.

Lisa Rowan is a writer, editor, and podcaster living in Washington, D.C. She gets miles on the only credit card she uses regularly and earns about four free flights each year.

The post Think You Have a Lot of Credit Cards? You Won’t Believe How Many This Guy Has… appeared first on The Penny Hoarder.



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Americans Optimistic about Economy as 2016 Rolls In

Americans are more optimistic about the economy and the future as 2015 comes to an end. A stronger job market has helped lift consumer confidence.



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7 Psychological Principles to Get More Engagement on Social Media

Just about every great marketer I’ve met had at least a bit of interest in psychology.

It’s important to be curious about the ways people think because that’s the only way you can make whatever you’re marketing to someone desirable.

You can apply lessons from psychology to every part of your marketing work.

But we can’t look at it all at once.

Instead, I’d like to focus on how understanding psychological principles of human behavior can benefit you in one area: social media marketing.

In this post, I’m going to teach you 7 different psychological principles and then show you how you can use them in your social media marketing.

However, since social media and content marketing are so intertwined, aspects of some of these principles will spill over to platforms other than social media too.

That being said, let’s start with the first principle. 

1. Children always ask this one question, but adults think it too…

If a kid asks a question, they’re almost never satisfied with a shallow answer.

Consequently, the most asked question by the vast majority of children is:

“Why?”

Why do things work the way they do?

People are naturally dissatisfied with answers if they don’t understand them.

Think of the last time you watched a political debate. How frustrating is it when most candidates don’t give a straight answer to a question?

After they dance around yet another answer, all you want to do is scream at the screen “WHY?”

Eventually, though, most people realize that there are some questions that you just won’t get a satisfying answer to. This is the point where adults give up on asking “why?” even if it leaves them a bit frustrated.

But all is not lost!

That’s because you can provide answers…at least when it comes to your audience on social media.

Answering questions your readers have in full clear detail is one of the best ways to get loyal followers on social media.

Here’s an example:

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Stone Temple Consulting knows that many members of their audience wonder why SEO has to be so complex (it certainly seems that way to beginners).

So, they used that opportunity to explain why, using the question as the headline for the social media post.

Imagine it from one of their followers’ point of view.

  • They had a question about why something (SEO) is the way it is
  • They clicked the social media post to find the answer
  • They found a good answer and felt satisfied

That last part is really important because it reinforces the behavior. Over time, they learn that good things happen when they interact with posts from this particular company.

And there’s no reason why it can’t be your business instead.

All it takes is two simple steps, and I’ll show you how to do them.

Step #1 – Find questions your readers want answers to: Remember that your goal is to answer questions that most of your followers have. That’s how you get them to take action (like click through to your website) and give them a good experience.

There are many places where you can find these questions: on social media, forums, groups, etc.

But I strongly recommend starting with question and answer sites because they are obviously filled with questions. You don’t need to waste time filtering out other content.

The big question and answer sites are Yahoo Answers and Quora.

Personally, I’m a bigger fan of Quora, and I even post answers there myself. I think the quality of the site is much higher than that of Yahoo Answers’.

The simplest way to find a long list of questions you can answer is to just type in your niche in the search bar.

What you’re looking for is some sort of “Topic: (your niche),” which is basically a category that collects all questions related to your niche.

As you can see below, it should come up as one of the main search suggestions in most cases:

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Click the topic, and Quora will load a feed for you, which will have thousands of questions in it (for most topics). Just keep scrolling when you reach the bottom, and it will load more.

These questions are not organized by date, but rather by relevance and interest.

You can see the number of “upvotes” on each question, which is a good measure of the number of people in the community who are interested in the answer.

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You literally have hundreds of great questions at your fingertips. You could answer one a day if you wanted to.

Step #2 – Find the best way to answer them: Now that you have the questions, it’s time to provide answers.

But remember, you’re providing your own answers on social media (or your website), not on Quora.

Your audience on social media is completely separate from the Quora audience, which means that most of your audience still needs an answer to these questions.

This also means that you can read through the answers on Quora if you need help or guidance to answer the question. However, you should, of course, answer the question in your own words and share your own experiences when possible.

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After you have an answer, there are 3 things you need to decide on.

First, how long does the answer need to be? If it’s really short, you might be able to answer it all in your social media post (depending on the platform).

If it’s on the long side, a blog post is going to be a better choice, and you can just link to the full answer in your social media post.

Second, you need to decide what format is best for the answer.

Some questions are best answered as regular blog posts, while others are better answered as infographics or videos.

My general rule is that if your audience needs to see the answer in action (like how to assemble a shelf), videos are the best.

If they need to see many parts of the answer at the same time (like the steps to baking a cake), an infographic is the best.

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Often, there might be more than one type of content that makes sense. Feel free to make more than one to give your audience more choice.

Finally, the third thing you need to decide is how you will actually present the question and answer on social media.

I suggest keeping this as simple as possible.

Copy the question just as you found it on Quora in the words that your audience used.

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Then, if you have the space, provide a little teaser that describes your answer and adds a bit of curiosity.

2. Use the endowment effect to get raving fans

Would you trade your current car for one that’s worth a few thousand more?

Even though that’s a great trade from a financial point of view, most people wouldn’t.

And it’s because of the endowment effect. We get attached to the things we own and subsequently put more value on them.

There’s a great study that clarifies this effect. Here’s what the researchers did:

They gave some study participants a mug. Then, they asked those subjects if they would be willing to trade their original item for an equally valued pen or sell it to one of the other participants.

And the results were fascinating.

If the endowment effect didn’t exist, the people who were originally given the mug would have said that they would sell it for roughly the same amount that people were willing to pay for it.

However, none of the subjects given a mug traded it for the pen even though it was worth the same amount.

In addition, when they named the price that they’d be willing to sell it for, it was twice as high as what the other subjects were willing to pay for it.

In practical terms, the subjects of the experiment got attached to the mug once they owned it.

And you can use the endowment effect in many areas of your business, including social media.

Applying the endowment effect to your business: The most obvious place to use the endowment effect in your business is to give your customers a sample before asking them to buy. You see this all the time in stores.

For example, Buffer has a full 30-day free trial, and not even a credit card is required:

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As those new signups become invested in the platform, they’ll put a high value on having their own account.

When the 30 days are up, most of them will value the account high enough that the $10, or whatever Buffer is asking for, will seem minuscule.

However, if they were asked for the money upfront, most people would hesitate when considering the cost.

This is probably the hardest principle to apply directly to social media.

The best way to implement it, from what I’ve seen, is to link to content, but not the full version of it.

For example, Bryan Dean posted a link to his skyscraper technique case study on Facebook:

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The post contains a ton of value, and readers get attached to having the technique in their arsenal.

However, even after reading the case study, some readers could use a bit more help, like a checklist of the steps. Bryan offers this as a content upgrade:

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Readers need to give their email addresses in order to get access to the checklist.

Since they already know that the first part of the content was great, they’ll want the last part as well and will be more than happy to put in their email addresses.

3. A simple principle behind most engagement: reciprocity

Society only functions because we all adhere to some basic rules.

One of these rules, or “norms,” is the rule of reciprocity.

This was one of the 6 factors of influence that Cialdini found in his decades of research.

I can say with certainty that you’ve been enacting this norm many times in your life. It is seen in all cultures, regardless of the language, location, religion, etc.

Here is what the norm entails:

When someone is given something by someone else, they will try to return the favor.

Typically, the favor will be about the same size as the initial gift. If you lend someone money for ice cream, they will be inclined to lend you money for something like a drink later on.

Conversely, if you fly across the country to help someone in a time of crisis, they will basically do anything for you if you ask them.

This principle has been studied many times and proven to be true.

Back in 2002, researchers studied whether waiters could make more money through tips if they took advantage of this principle.

So, the waiters in one experimental group were told to give their diners an after-dinner mint. Tips went up 3%.

Not bad.

Then, another group was told to pause before giving them the mints, look at the customer, and tell them the mint was specifically for them. Tips went up 20%.

Woah. What just happened?

There are a few things to note. First, you don’t have to ask for a favor in return. The diners, in all cases, tipped extra without being asked.

The second thing is that it was important to make sure that the diners knew that the waiter was doing something nice for them. If they thought after-dinner mints were standard and expected, there isn’t much for them to have to give back for.

So, when you do something nice for someone, make sure they know that you put some thought and effort into it.

Think of your blog posts. You put tons of effort into them just to give them away, and then people spend 10 seconds skimming through one and moving on to the next one. I spend 5-10 hours on each post, and I still get people complaining about the content I’m giving away.

It’s nuts! Of course, only some readers don’t understand the effort that goes into creating content, but that’s why it’s important to try to make them aware of it.

Once they are aware of it, the reciprocity principle kicks into effect, and they return the favor by giving you more of their attention.

How to put the reciprocity principle to good use: Like most of these principles, you can use reciprocity in many areas of your business.

The main way you can use this principle on social media is to help you connect with influencers. You can share their posts on social media and also let them know that you’ve mentioned them in one of your own posts:

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When you feature someone in a post, you do them a favor.

Following the reciprocity principle, this means they are more likely to do something for you in return.

The important thing to keep in mind is that a share or a mention is worth different amounts to different people.

If someone mentions me in an article they wrote, it’s nice (and flattering), but it’s unlikely to have any significant impact on my business.

For the medium sized blogger who gets fewer than 50 shares on all their posts, it’s a much bigger deal.

What this means for you is that you’ll need to share several posts by a popular influencer to build up any significant good will. Then, they will likely repay that by either sharing something you created or taking the time to open and read an email you send them.

Of course, you also need to create your own great content, or there’s no way they can return the favor.

4. Ask for a favor to capitalize on the Ben Franklin effect

What if I gave you some money?

Then, what if I asked you to give it back?

It’s normal to assume that you’d be pretty neutral about me and the whole thing. But in fact, that’s not true.

To study this effect, researchers Jim Jecker and David Landy split subjects into three different groups. They gave everyone some money upfront. But then they asked the people in each group different things:

  1. In the first group, they asked the subjects if they’d give the money back to the scientist who initially gave it to them
  2. In the second group, they asked the subjects if they’d give it back (not to the scientist in particular)
  3. In the third group, they didn’t ask for it back.

Then, the researchers gave participants a quick questionnaire to fill out. The most important part of this questionnaire was the part where they were asked to score how much they liked the scientist (who gave them the money).

Surprisingly, the group who got to keep the money gave the scientist the lowest likability score. The guy gives them free money, and they still don’t like him!

Conversely, the group that was asked to give the money back to the scientist (most of them did), gave the scientist the highest likability score.

Introducing the Ben Franklin effect.

The Ben Franklin effect explains how people justify their actions.

In the case of this experiment, the people who simply received the money rationalized that they deserved it.

The group that actually gave the money back to the scientist did a favor for him. They rationalized this by thinking that the only way they’d do this is if they liked him.

In short: Doing a favor for someone else will make you like them more. You feel that you must like them if you did something for them and got nothing in return.

Whom should you ask for favors? You can certainly ask other influencers to share your posts and content. If they do it out of kindness (or because your post is amazing), they’ll instantly like you more. This can lead to a mutually beneficial relationship where you both share each other’s content.

But the more interesting application to me is to ask your followers for favors.

Don’t be afraid to ask readers to help you by contributing stories, commenting, or sharing your content.

No, not all of them will, but the ones who do will think of you more favorably each time they do it. You will see that readers who were hesitant to do you a small favor at first are willing to do huge favors for you after a while.

Here’s an example of Marie Forleo asking her followers to contribute silly stories for a piece of content she was working on.

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She does things from time to time, and her followers love to help out (notice the 150 likes). There were several comments on this post with stories that she could use.

One final note: Remember the reciprocity rule. If your follower does you a favor, that’s great. However, you probably want to give them something back. Most commonly, just a public thank you or a mention in a post is a great gesture.

The key is not to offer the reward in the first place. If you do, your readers will rationalize that they only helped you out to get it, not because they like you. Keep the reward as a surprise for after.

5. Reposting content lends well to the “mere exposure theory”

The more you are exposed to something, the more you like it.

At least that’s what the mere exposure theory describes.

We don’t fully understand why or how it works, but studies have shown that this is true in most cases.

For example, in his study, Robert Zajonc showed Chinese characters to subjects who could not read or speak Chinese.

The fun part is that he showed some characters more than others, anywhere from one time to 25 times.

The results were clear: the more someone was exposed to a certain character, the more of a positive meaning they gave it.

This is probably partially why most people like themselves so much. After all, you’re stuck with yourself 24 hours a day.

The mere exposure theory and social media: There are two ways in which you can apply this theory to your marketing on social media to make it more effective.

Most importantly, post on a regular basis. I post at least once a day on almost all of my social media accounts:

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Post as often as you can without being annoying to your followers. The more you can expose your brand and content to a follower, the better.

The second way you can use this theory is to share things multiple times.

This calendar by Buffer shows that they share a single post several times after they publish it.

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This will expose your followers to your content more often, adding to the effect.

Have you ever felt unsure whether you liked a movie after watching it for the first time? And after watching it again you absolutely loved it?

It happens all the time.

And not just with movies but with content as well.

Sometimes, a reader doesn’t love your content for a variety of reasons at first, but as they come back to it over time, they like it more and more.

6. Social proof and social networking should go hand in hand

Social proof has been proven to improve conversion rates in a wide variety of situations.

We’re typically talking about sales when it comes to social proof, but it can apply to social media marketing as well.

There are many types of social proof, but we’re interested in one in particular—user social proof:

User social proof consists of approval/positivity from current users of something.

On e-commerce sites such as Amazon, this means reviews and ratings. On other sites, this might mean case studies.

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The effect is as expected.

The more positive social proof a product has, the better it looks to potential customers.

We relate to other users and expect to have a similar experience with the product or service we are considering that they had.

How social proof affects your social media marketing: Social proof is the sole reason why pages buy fake followers. They know that if real users see that they have thousands of followers, they will be more likely to follow them as well.

I don’t recommend doing that for a number of reasons.

However, it illustrates that social media users look at what other users are doing.

If tons of people like or share a post, they are much more likely to do it themselves. You can see this all the time in action when a post is trending (“going viral”).

The practical takeaway is that when you publish a post on social media, do whatever you can to get those first few “likes” or shares.

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It may take messaging some friends or emailing your biggest fans or your peers. But get that initial traction as soon as possible, and the rest of your followers will be more likely to engage with your posts.

If you have employees, ask them to engage with every post as it’s published, at least until you build a larger following.

7. Long term engagement can be secured using the “propinquity effect”

The final principle explains how people become friends.

As you might have guessed, propinquity is related to “proximity.”

And what the effect states is that the closer you are to someone, the more likely you are to like them. For example, tenants who live on the same floor will typically have closer friendships with each other than with the tenants who live on a different floor.

You might have also noticed that the propinquity effect is related to the mere exposure effect, which we looked at earlier. The more you see someone, the more likely you are to feel positively about them.

However, there’s one other factor to the propinquity effect: similarity.

The more similarities you share and the closer you are, the faster and more you will like someone.

Propinquity and social media explained: To continue with the experiment, you want to live as close to your followers as possible. This extends past social media to all other channels of communication with your audience.

Ideally, send them emails on a regular basis. On Quick Sprout alone, I send 3 emails a week to subscribers. If readers want more and also subscribe to the NeilPatel.com blog, they get another 3-4.

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It allows me to be in their lives on a regular basis.

But the same applies to social media as well. I post multiple times a day on Twitter and usually Facebook too.

Example post 1:

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Example post 2:

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The idea is that the more readers see me, the more they will like me.

Did you notice that I left out one detail? If so, that’s a very good catch.

For the propinquity effect to be as effective as possible, those posts and emails also need to be about something that we have in common.

But this is pretty simple for businesses. As long as you are talking about content, events, or products in your niche that your audience likes, you immediately have that required level of relevance.

Then, you just need the frequency to take effect, and you’ll be set.

Conclusion

Psychology and marketing go hand in hand. If you can understand how your target audience thinks, you can figure out the best ways to engage them and the best ways to present your content and products.

I think it’s important to understand how psychology affects every aspect of your marketing, and that’s why I focused on one—social media—in this post.

I’ve shown you seven psychological principles that you can use to improve your marketing in general. However, I’ve also shown you specific ways in which you can apply them to your social media marketing for instant improvement.

Ideally, spend 20-30 minutes going through each principle and thinking about how it applies to your specific business, audience, and marketing plan.

If you have any questions while you do this (I expect you will), I’ll be glad to help. Just leave me a comment below with your questions or comments.



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This Guy Made $1,000 a Day to Test Websites… While Drunk. Here’s Why It Worked

This story just goes to show that sometimes, those crazy ideas you have aren’t so crazy after all. In fact, they might end up being super-profitable.

Richard Littauer, a developer and user experience consultant, came home one night after having some drinks out on the town. He opened his computer to discover a friend asking for professional feedback on a website he was building. Although he was a little buzzed, Littauer played along.

I started talking to him on Google Hangouts,” Littauer wrote in an email. “I realized my feedback was pretty interesting and useful because I didn’t have my guard up and could say exactly what I felt about something.

“Half hiccuping, I said, ‘I should ask people to pay me to do this.’ The rest all came together after that.”

When Littauer fleshed out his joke by building a website, The User is Drunk, offering his drunken UX consultation services, he was shocked to discover he’d gone viral after just an hour.

He reached almost 100k pageviews — and made $1,000 — the very first day.

The User is Drunk — But Why?

Doing anything while drunk might sound irresponsible, but in this case, it was at least partly clever. Littauer’s service was a play on an idea coined by digital expert and educator Will Dayble. Namely, that a well-built website must be “so simple, a drunk person could use it.”

Littauer had fully expected the site to “be a joke” to share amongst friends. He only set up the website because he needed a project for his first week at Hacker Paradise.

But, it turned out to be a valuable service; drunken site testing by a fully fledged tech professional is a pretty unique offer.

Plus, it was fun: Littauer even let clients choose his beer for extra money.

Site builders quickly began to purchase the boozy reviews, regardless of the price increases.

“I raised my price for reviews from $50 to $500 very quickly,” Littauer told me, “hoping that people would stop buying so that I didn’t have to be drunk permanently.”

They didn’t.

With enough demand to keep him going strong, Littauer amassed a small fortune off his UX review service in just six months. Although he declined to share exactly how much his drunken earnings totalled up to, it wasn’t small change.

“It meant I could take a few months off between jobs and not worry about it,” Littauer said. It also paid for his three-month trip to Southeast Asia, paid off his credit cards and allowed him to build up some savings for the first time in his life.

The User Has Sobered Up

As it turns out, being paid to drink isn’t all it’s cracked up to be. After six months of beer and Benjamins, Littauer decided to close his digital doors.

“I hadn’t thought the idea would go viral, at all,” Littauer reflects in his explanatory blog post on Medium. “I did it as a joke. Now, all of the sudden, I was contractually obliged to drink. And I was known for it.”

Aside from not wanting to perpetuate his growing reputation as an alcoholic, Littauer realized that drinking all the time…isn’t actually much fun after a while, especially when your living depends on it.

“If drinking is your job, you swiftly realize how miserable drinking is,” Littauer writes.

He was losing his ability to concentrate on other projects, and felt the risk of a decline in his health and safety.

So, having earned enough cash to get solidly on his financial feet, Littauer turned toward other earning avenues — an effort made easier by the new low-level fame and clout the project had afforded him.

A Surprisingly Profitable Side Gig

What does all this mean for resourceful Penny Hoarders?

Well, first of all, don’t be afraid to follow up with that crazy idea you had to start a business. You never know where it might end up — or how many dollars it might put in your pocket!

Secondly, play to your skills. Littauer’s service, though whimsical, filled a hole in the market the industry hadn’t even known was there. Plus, it helped him continue to work on projects he really cares about.

“I don’t have any more plans for any drunk work,” Littauer told me, “but as far as unique side gigs – those are my bread and butter right now.”

The User is Drunk, while an unsustainable (but lucrative!) experiment for Littauer, gave him the branding and recognition he needed to pursue what he’s most interested in.

So, get experimenting!

Your Turn: Has a harebrained idea of yours ever turned into a profitable side gig? Tell us about it in the comments!

Jamie Cattanach is a junior writer at The Penny Hoarder. She also writes other stuff, like wine reviews and poems — you can read along at http://ift.tt/1RiB7sH.

The post This Guy Made $1,000 a Day to Test Websites… While Drunk. Here’s Why It Worked appeared first on The Penny Hoarder.



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The Number That Matters Most

There are a lot of numbers thrown around in personal finance articles and books and videos. People talk about rates of return on investments, interest rates on debts and on savings accounts, and so on and so forth. In fact, there are so many numbers bandied about that it’s easy to get completely lost in a flood of them.

However, there’s one number that I’ve found trumps all others. It’s the one single number that indicates whether you personally will find personal finance success in the future. It’s also not that hard to find, either.

It’s the difference between how much you spend in a given month/year and how much you earn in a given month/year. That single number, which I have referred to as “the gap” in previous articles, says so much about the direction that your finances are headed. (Another way to look at this number is the increase in your net worth over the course of a month or year.)

Let’s say, for instance, that Person A and Person B both make $50,000 a year. However, over the past year, Person A spent $50,000 while Person B only spent $40,000. Which person do you think is most likely to find financial success in their future? It’s really not too hard to predict.

Furthermore, the bigger the difference between the two numbers, the greater the likelihood for success in the future. Simply spending a few dollars less than you earn is a good thing, but the person who spends a few dollars less and the person who spends $20,000 less are going to be on two completely different trajectories.

Why is that number so important? That number represents how much money you have left over at the end of the month or the year. It is that money that allows you to pay down your debts or save for the future. If you don’t have that gap between your income and your spending, you can never save for the future. The bigger that number, the faster you can get rid of your debts and the quicker you can reach your savings goals, no matter what they are.

The best thing you can do for your financial future is to simply make that number bigger. If you make that number bigger, literally everything else falls into place behind it – debt freedom, investing, and so on. They’re all secondary and they’re all made much easier by simply having more dollars to work with.

So how do you make that number bigger? There are a multitude of ways to do it, but they all fall into a handful of groups.

One is to simply spend less money. This is the avenue that many people dread because they often connect it with cutting back on spending in the areas of their life that they value the most. They think of their hobbies or their entertainments or their little perks. The truth is that the most effective ways to spend less money involve cutting back hard in the areas you don’t care nearly as much about.

Rather than trimming back on the delicious kind of coffee you enjoy each morning, just avoid drinking more of it and instead switch to generic laundry detergent (or make your own). Rather than cutting your Netflix account that you use for binge-watching on cold winter evenings, trim a premium channel that you never watch fron your cable bill – or cut your cable entirely. Rather than cutting out that meal out with your wife every Saturday that you look forward to all week, move to a smarter plan with your cars that revolves around buying late model used cars and driving them until they’re ready for the trash heap. Cut the areas you don’t care about as much and hold steady on the ones that you really do care about.

Another is to earn more money. This is something I discussed in detail just yesterday. Finding a way to earn more money, whether it’s through starting a side gig, getting a raise in your current position, finding a new job, or changing career paths entirely, makes it possible to live your life almost exactly as you do right now while also having more left over at the end of the year.

After all, if you spend $50,000 a year and only make $50,000 a year, you’re left with nothing, but if you bump your income up to $60,000 and don’t touch your spending, you have $10,000 left over.

Yet another is to do smart things with the remainder. It’s great to have that money left over at the end of the year, but doing something sensible with it – even if it’s not the perfect thing – will amplify the benefit.

Using that money to pay down your debts, for example, reduces the amount of debt that you’ll have to pay in the future. It reduces your future debt payments, meaning you’re creating a bigger gap in the future. Using that money to save for retirement in a tax-advantaged account, like a 401(k), actually reduces your tax bill this year, leaving more behind in your personal coffers.

When you start combining these efforts, though, is when you really start seeing some amazing benefits.

Take Bill, who makes $50,000 a year, spends $40,000 of it, and pays $10,000 in taxes (a 20% overall rate). Let’s say Bill increases his salary by 20% and cuts his spending by 10%. This means that he makes $60,000 and spends $36,000 of it, but he still has a 20% tax rate on his whole income, so $12,000 goes in taxes. Still, he has $12,000 left over. But if he put $10,000 of that in a 401(k), he’d only have to pay taxes on $50,000 of his income, meaning his tax bill is only $10,000. That leaves him $36,000 to spend, $10,000 in retirement savings, another $4,000 to pay down debts, and the same old $10,000 in taxes. Bill is in a lot better shape than before!

As easy as it seems, though, the thing to remember is that it all rests on your own personal choices.

You have the power to choose whether or not to keep your spending in check. Are you going to avoid the temptation to keep inflating your lifestyle? Are you going to be content keeping your spending on the best things in your life under control?

Or are you going to see every dollar saved in other areas of your life as another dollar to spend on an ever-inflating desire for more and more “fun” stuff in life? Are you going to choose to overstuff your life with more pleasure than you can ever really enjoy while simultaneously draining your bank account and leaving you with no resources for the future?

The choice is yours.

You have the power to decide to spend less on the things you don’t really care about. Are you willing to try out generic versions of the things you don’t really use? Are you willing to drive an older car for a few more years? Are you willing to live in a smaller house or apartment where you only really give up storage space that would be used to store stuff that you never use?

Or are you going to throw money at things you don’t really care about to impress people that you don’t really like or care about in any way? Are you going to keep buying the shiny things because the logo on a box makes you feel better? Are you going to toss money towards purchases to impress people on the street that you’ll never see again while your own financial future becomes more and more bleak, step by step?

The choice is yours.

You have the power to opt to spend more time and energy improving your earnings. Are you going to spend some of your time and energy building up a freelance income stream in your spare time? Are you going to put some effort into building a business? Are you going to spend time and energy genuinely bolstering your resume and building toward a promotion or at least a raise?

Or are you going to spend your hours at work reading websites that make you laugh or posting funny jokes on social media? Are you going to coast by at an easy job that still leaves you worn out but doesn’t really afford you the ability to move up and earn more?

The choice is yours.

The question really is this: are you going to keep doing things the way you’ve always been doing them and somehow hope for better results?

Or are you going to put your trust in your ability to build up that one central number in your life, the one that spells out the reality of your financial future?

The choice, my friend, is yours.

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Seven Reasons You Need to Start Investing Right Now

You should really start investing right now.

It doesn’t matter how much money you have. It doesn’t matter how old you are.

It doesn’t matter how much you know about investing, or whether you’re worried about what the markets are going to do, or whether you’ve never even heard of “the markets.”

You should start investing now, no matter what. Here are seven reasons why.

Reason No. 1: Your Freedom Is at Stake

Investing isn’t about getting rich. It’s about one day having the financial freedom of being able to support yourself without an income.

Because here’s the truth: At some point you’re going to have to stop working. The only question is whether you’ll be forced to stop before you’re financially prepared, or whether you’ll be able to choose to stop on your own terms.

And the only person who can make sure you’re able to do it on your own terms is you. Nobody is going to give you the money you need to support yourself without an income. Beyond Social Security, it’s all on you to save up as much as you need.

So your freedom really is at stake here. And there’s no better time to start creating it than right now.

Reason No. 2: Free Money

If you work for a company that offers a 401(k), there’s a good chance they also offer some kind of employer match. That simply means they will match your 401(k) contributions dollar-for-dollar up to a certain point.

For example, a typical employer match might be something like 100% of the first 3% of your salary that you contribute. That means that if you contribute 3% of your salary to your 401(k) each paycheck, your employer will also contribute 3% of your paycheck on your behalf — on top of your regular salary.

That’s free money! In this example, you would immediately double your retirement savings just by being willing to save a little bit. It’s the best return on investment you’ll find anywhere, and it’s absolutely something you should take advantage of if you can.

All employer matching programs look different. Yours may be more generous than the example given here, or it may not be quite as good. And in some cases you may not have one at all.

To find out, just ask the HR rep at your company whether they offer a 401(k) employer match, and if so, how it works. Then you can adjust your contribution percentage if necessary to make sure you’re taking full advantage of it.

Reason No. 3: It Doesn’t Matter If You Mess Up

A lot of people never get started investing because they’re worried about making a mistake. It feels like this big, complicated thing you have to spend a ton of time and energy on to get right, and if you don’t then you might lose a lot of money.

The truth is that for the first decade or so of your investment life, the returns you get really don’t matter very much. Good or bad, they just won’t have much of an impact on how much money you end up with.

What does matter, a lot, is your savings rate. The more you save early on, the more money you’re likely to end up with, even if your returns aren’t great during those early years.

Which is actually great news for you! Because it removes all the pressure of having to choose “the right” investments and all the risk of making a big mistake.

Even if you mess up and don’t get the returns you should have, you’ll be OK as long as your savings rate is where it needs to be.

So don’t let fear or self-doubt keep you from getting started. The very act of getting started is much more important than getting it right. 

Reason No. 4: Practice Makes Perfect

With that said, as time goes on and your money grows, your specific investment decisions are going to become more and more important. The more money you have at stake, and the less time you have between now and when you need it, the more important it is to make smart investment decisions.

And the sooner you start, the more time you’ll have to practice making those decisions before they really begin to matter. You can learn as you go and make mistakes now, giving you the skills and experience you need to make the right decisions later on.

Reason No. 5: Compound Interest

“Money makes money. And the money that money makes, makes more money.” –Ben Franklin

Let’s say you invest $1,000 this year and it earns a 10% return. That means you make $100 and you’re left with $1,100 in your account.

Now let’s say you can’t contribute anything the next year, but you still earn that same 10% return. Well, instead of $100, you’ll actually earn $110 because that 10% return is on your new, bigger $1,100 balance.

That is the power of compound interest. Without you having to do anything, your money keeps earning more and more money all on its own.

It’s also the real power of investing, and the longer you expose your money to the power of compound interest, the bigger the gains will be.

dollars in flower pots - best time to start investing

Reason No. 6: Starting Can Be Easy

Investing doesn’t have to be super-complicated or time-consuming. And you don’t have to be rich either.

There are plenty of easy ways to get started without having a ton of money and without being the world’s foremost investment expert.

One way is to start with your 401(k) match, like we talked about above. It’s simple, it’s quick, there are no minimum contribution requirements, and of course it’s free money! Who doesn’t like that?

You could also open an IRA with a place like Vanguard or Betterment, both of which give you access to high-quality investments at a low cost. And you can keep your investment strategy simple and powerful by using index funds.

The resources are out there to get started with a great investment strategy, even without much money or knowledge.

Reason No. 7: There’s No Time Like Today

“The best time to plant a tree was 20 years ago. The second best time is now.” — Chinese proverb

All of this obviously applies if you’re in your 20s or 30s with decades before retirement. But what if you’re a little bit older than that? Is it too late to start?

Absolutely not.

You can’t change what’s already happened, but you can start doing things differently right now. And every little bit counts. No matter where you are in life, you should start investing right now.

Remember, your freedom depends on it.

Matt Becker is a fee-only financial planner and the founder of Mom and Dad Money, where he helps new parents take control of their money so they can take care of their families. His free book, The New Family Financial Road Map, guides parents through the most important financial decisions that come with starting a family.

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Pension scammers target bumper year

Almost one in five over-55s think they have been targeted by financial fraudsters trying to scam them out of their retirement savings since April's pension freedoms came into force.

Almost one in five over-55s think they have been targeted by financial fraudsters trying to scam them out of their retirement savings since April's pension freedoms came into force.

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Have a Sick Dog or Cat? This Pet Owner Got Her Dog’s Treatment Paid for — and Helped Other Animals at the Same Time

If you have a pet, you know how expensive it can be to take care of them, especially when it comes to veterinary care.

Recently, I found out about a unique way to help cover veterinary costs for my own sick dog, and help improve veterinary care for other dogs.

The average American spends $611 per year on vet care for a normal, healthy pet. As our furry friends age, they sometimes develop chronic health conditions like arthritis, kidney and liver disease.

These conditions can require medication for the remainder of the pet’s life, and that comes with an even heftier price tag. In fact, vet costs shoot up to $935 per year once pets are diagnosed with a chronic health condition.

Obviously, there’s an enormous economic incentive for pet pharmaceutical companies to develop new and better drugs to help pets. This is where companies need your help, and they’ll pay handsomely for it.

Juno’s Story

Enter my dog — Juno.

She’s only five years old, but she has a chronic health condition. It’s not at all debilitating or very serious, but she’ll be on medication for the rest of her life.

Recently, I got a call from her vet saying there’s a new medication to treat her condition, and the drug company is recruiting volunteers for a new clinical study.

One of the vet techs at my clinic was helping to coordinate the study, and made it very clear that her first priority is to Juno. She said the clinic only participates in studies that will have a definite benefit to the animals.

She went over the study process and all the risks and benefits of the clinical trial with me, which I carefully considered.

The biggest factor I had to consider was whether or not it’d help Juno.

The new medication has the exact same side effects as the ones she’s currently taking, and it’s expected to be more effective in the long run. In this case, it was a no-brainer.

Plus, the drug company would cover all the study’s costs for vet care and medications ($75 for the medication she’s currently on). By the end, they’d also tack on a $400 credit for future veterinary expenses, which I could also use for our two cats, as well.

How Clinical Trials Work

Pharmaceutical companies and researchers work with local vet clinics and hospitals all over the country to test new medications.

At each location, one or several people are designated as study coordinators, who enroll pets and work with pet owners to ensure the study goes smoothly. These are the people who will help you.

Usually, your pet needs a health exam before being enrolled in a clinical trial. Once deemed fit for the study, the coordinator will go over the requirements and answer your questions.

Once everything is clear, they’ll give you the medication for your pet — or administer the treatment.

They usually require a few other things, as well. You’ll usually need to bring your pet back a few times (or many) for follow-up checkups. You might also need to fill out daily health logs and forms to take note of abnormalities, when the medication was given, how it was given, etc…

At the end of the study, your pet’s given another exam to make sure they’re still OK, and you’re done.

You’re usually left with some kind of compensation for your time, and the knowledge that you and your pet helped bring new medications to the market to help animals everywhere.

Are Clinical Trials Right for Your Pet?

If your pet has a medical condition that needs to be managed, it’s well worth your time to see if there are any studies in the pipeline that could help them.

These studies often are the best place to find the newest, cutting-edge drugs and treatments to help your pet. They could even save your pet’s life — especially from serious diseases like cancer.

Before you sign your pet (or yourself) up for any trial under the sun, you’ll need to consider whether or not it’s worth it. Ask about side effects, requirements, compensation and ultimately if the trial will really help your pet.

Where to Find Clinical Trials for Pets

Ask your vet if they participate in any trials that might be relevant for your pet. If they don’t, ask them if they know any other local vet clinics administering any trials. Veterinary teaching hospitals at universities are also great places to find trials.

Many websites can help you find clinical trials for yourself, but generally isn’t the case for pets.

The Veterinary Cancer Society is one exception. It operates an online database of all veterinary cancer trials currently looking for volunteers.

Your Turn: Do you have a pet with a health condition that requires medication? Have you participated in any clinical trials that might help your pet, and others?

Lindsay VanSomeren lives in Fort Collins, Colorado, and has a household of semi-geriatric animals who help keep her young.

The post Have a Sick Dog or Cat? This Pet Owner Got Her Dog’s Treatment Paid for — and Helped Other Animals at the Same Time appeared first on The Penny Hoarder.



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Stella & Dot Jewelry Giveaway and Career Opportunity Review

By Holly Reisem Hanna I’ve been a fan of Stella & Dot for A LONG time. I’ve attended Stella & Dot home shopping parties, I’ve hosted a party, and purchased numerous items from them. So this month when they asked me to host a giveaway and review it was a no-brainer. If you’re not familiar […]

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