Ask GFC 020 – Does .5% or 1% More in Fees Really Matter With Investing?

Welcome to another Ask GFC! If you have a question that you want answered you can ask it here.If your questions get featured on GFC TV or the GFC Podcast, you are the lucky recipient of a copy of my best selling book, Soldier of Finance, and a $50 Amazon gift card.So what are you waiting for? Ask your question now!

Reader Travis B. sent in a list of Ask GFC personal finance questions, and this was one of them. It’s an excellent question too, because investment fees can be deceptive. Relatively low fees can seem harmless, but over time they can really mount up. As they accumulate, they have a strong negative impact on your long-term return on investment. And if you’ve been investing for a while, you know that means plenty!

You see, the “secret” to successful investing has a lot to do with the time value of money. You can invest at a given rate of return over a certain amount of time, and it will enable your money to grow as if by magic. But as impressive as that might be, a higher return on your investment will produce even better results. Over 10, or 20, or 30 years the improvement can be incredible.

While it’s true that a small difference in fees might not make a difference in the very near term, the disadvantage grows with time. Let’s take a look at the effect of both a 0.5% and a 1.00% increase in investment fees on the performance of a portfolio over the very long term, as well as some other fee-related factors.

What a Difference of “Only” 0.5% Can Make

Let’s say that you have a choice between two investment services. One charges an annual fee of 1.0% to manage your account, while the other charges just 0.5%. In most respects, the two platforms provide the same level of service. The only significant difference between the two is the annual investment fee. How much of a difference does it make?

Your choice between the two investment services involves a portfolio of $100,000, and an average expected rate of return of 7.0% per year.

If you go with a service that charges 1.0% per year to manage your account, your effective net return on investment will be 6.0%. That’s the 7.0% expected rate of return, less the 1.00% investment fee charged by the service.

If you invest your portfolio with that firm for the next 30 years, your portfolio will grow to $574,350. If you never understood the impact that small changes in investment fees can make on your portfolio, you might be satisfied with that return.

But if you invest your portfolio with a service that charges just 0.5% per year to manage your account, your effective net return on investment will be 6.50%. Once again, that’s the 7.0% expected rate of return, less the 0.5% investment fee charged by the service.

If you invest your portfolio with that firm for the next 30 years, it will grow to $661,438. The difference in return over 30 years amounts to $87,088.

That’s an enormous advantage, considering that the only thing you did differently was to invest your money with a service that charges a lower annual fee.

Naturally, the difference will be even more significant with an even bigger difference in the investment fee.

What a Difference of “Only” 1.0% Can Make

Let’s look at the same scenario here. You have a portfolio of $100,000, and an expected annual rate of return of 7.00%. You have a choice in having your money with one of two services, the first charging 1.5% per year to manage your portfolio, while the second charges just 0.5%. That’s a difference of a full percentage point on the investment fee.

If you go with the first broker, your effective annual rate of return on your investments will be just 5.5%. That’s the 7.0% expected annual rate of return on investment, less the 1.5% annual investment fee charged by the broker.

After 30 years, your $100,000 will grow to $498,397.

From the example above, we already know that by investing your money with the broker who charges just 0.5% to manage your portfolio, your investment will grow to $661,438. The difference in return over 30 years amounts to $163,041!

Once again, the only thing you did differently in the second scenario is to invest your money with a lower-cost investment service.

Notice that in a single year, the difference in investment fees might only add up to $500 or $1,000. But over three decades, it amounts to tens of thousands of dollars. The impact of the lower annual investment fee grows with each passing year, as the portfolio grows in size. This is when it’s important to remember that we’re not talking about flat dollar amounts, but percentages.

In a real way, higher investment fees represent the compounding of money in reverse. That is, they have a way of magically and silently eating away at your wealth over time.

Investment Fees Mean Even More if You’re an Active Trader

Investment fees these matter even if you are a self-directed investor who does not make use of professional investment management services. The fees just take a different form. Instead of the service charging you an annual investment management fee based on a percentage of your portfolio, the primary cost is transaction fees.

Here’s where a difference of just a few dollars per transaction can matter. And if you are an active trader, they matter a lot.

Even within the discount investment brokerage field, there can be a major difference in transaction fees, such as commissions on trades. At the lower end of the scale, you can find brokerage firms that charge a commission of less than $5 per trade. But on the higher side, trading fees can be as high as $10 per trade.

The difference of $5 between the two commissions isn’t a deal breaker if you are only making a few trades per year. But if you are a very active trader, making hundred trades per year, that seemingly small difference can add up to real money.

As an example, let’s say that you have $100,000 in your portfolio, and you expect to make 200 trades per year. That’s 100 purchases, and 100 sales.

If you go with a broker who charges $10 per trade, you will pay $2,000 per year – 200 trades at $10 each – in commissions over the course of the year.

If on the other hand you go with a broker who charges $5 per trade, you will pay just $1,000 per year – 200 trades at $5 each – in commissions over the course of the year.

Now the long-term effect of the difference in total annual trading commissions work a little bit differently than it does with percentage-based investment management fees. After all, when we’re talking about trading commissions, were really talking about flat fees.

In this case, the difference in trading fees will be $1,000 per year. If you average 200 trades per year for the next 30 years, that means that you will save $30,000 over that time span by using the lower cost broker.

That’s certainly not as dramatic as is the case with differences in investment management fees. But once again, you’re earning a higher return just as a result of using lower-cost brokerage firm. It’s easy money!

Actually, the advantage could be even higher than that. The thousands of dollars that you save in commissions using the lower cost broker would provide you with more capital to invest, and to earn more money going forward.

When Higher Fees Might be Justified

While keeping investment fees to a minimum should always be a goal, there are times when paying a higher fee may be justified.

This is mainly in the case where you are an inexperienced investor, who needs a higher level of service in the form of professional investment management. You may have no interest in trading securities on your own, nor in managing a portfolio. In this case, you should be perfectly willing to pay someone else to handle it all for you.

But even in this situation, there are less expensive ways to get the job done. For example, traditional investment managers charge an annual management fee of 1% or more of your portfolio. But there are online automated investment services that can perform similar management for a lot less in fees.

This includes “robo advisors” – investment platforms in which you open up an account, have your risk tolerance and investment goals evaluated, and then a portfolio is created and managed for you. From that point forward, all you need to do is fund your account on a regular basis.

The largest and most popular robo advisor is Betterment. They will provide automated investment management for annual fees ranging from 0.15% to 0.35%, depending upon the size of your account.

The difference between paying 1.00% per year for a management fee, and 0.35% with Betterment will be huge over time. Not only that – unless you have several hundred thousand dollars to invest, most traditional investment management services won’t even accept you as a client. Betterment, on the other hand, allows you to open up an account without any money at all!

There’s almost always a less expensive place to invest your money. Do a little bit of digging, and find out where they are. Small differences in investment fees can add up to hundreds of thousand dollars over the long run.

Source Good Financial Cents http://ift.tt/2fprZbh

GFC 075: Alternatives to Long-Term Care Insurance

Mary’s (name changed) mom has been at a long-term care facility for five or six years. When Mary came to me, she transferred her investment account with her husband and her mom’s account (she had power of attorney) to Alliance Wealth Management.

We asked Mary what the goals were for her mom’s money, and she told us that her mom wished to leave the money to Mary. Unfortunately, because Mary’s mom had Alzheimer’s disease, that sizable account was used to fund the long-term care facility. And, sadly, the costs for the long-term care facility just went up and up.

If there had been some kind of long-term care planning done, there would have still been a sizable account even after the care that Mary’s mom received at the facility.

This is just one story that shows the importance of doing some long-term care planning. It doesn’t take much time to consider the options. You just have to make sure you do it.

Long-term care insurance has been important for a number of families. But sometimes, it’s best to consider the alternatives. In some cases, the alternatives might be better for families than actual long-term care insurance.

So, if you’re the kind of [awesome] person who wants to know all of your options so you can make an informed decision, you’ve come to the right place.

Sit back, relax, and let’s explore some alternatives to long-term care insurance. But first, we’ll explain what long-term care is in the first place. We’ll also explore your odds of needing it, and much more! There’s a lot to go over here, so grab a coffee and let’s dive in!

What’s Long-Term Care?

Long-term care is not equal to medical care.

Here are some things that long-term care involves:

• Bathing
• Dressing
• Eating
• Transferring (to bed, chair, etc.)
• Housework
• Managing money
• Shopping for groceries
• Communication with others

These are called “assisted daily living activities.” Notice: That’s not the same thing as medical care!

Now, some hospitals and plans may provide this care, but if not, you’re going to need some extra coverage.

What Are the Odds You’ll Need Long-Term Care?

Well, 9 million Americans over the age of 65 needed assistance in 2012. That number is expected to grow to 12 million in 2020.

68% of adults turning age 65 are expected to need some form of long-term care!

That means the chances are not on your side. You’re probably going to need long-term care coverage of some sort.

Who’s Responsible for Paying?

Medicare might pay up to 100 days as a maximum or couple that with skilled home health care.

Medicaid meets many long-term care needs if you meet income and eligibility requirements. What we’ve seen is that you have to be at about the poverty level or below to qualify.

Department of VA also has separate long-term care planning that they offer and you might be able to get some coverage there. But otherwise . . . .

You will have to pay if you can’t find coverage elsewhere!

How much will you have to pay? We’ve seen numbers as high as $136,437 per year. However, this does vary from state to state – but even the best case scenarios don’t look that great.

Long-Term Care Options (and a Case Study)

In order to explore your long-term care funding options, it would be helpful to look at them in the context of a case study.

Let’s take a look at “John and Sheila Jones.”

Both of them are age 55 and live in Georgia where the average cost of a nursing home is $64,000 annually. They have $1.5 million for retirement, are in generally good health, and are seeking $4,500 of monthly long-term care coverage just for John.

Let’s take a look at their options . . . .

1. Traditional Long-Term Care Insurance

Although this article will focus on long-term care insurance alternatives, it’s important to make sure that you have a good understanding of how traditional long-term care insurance works so you can get a good baseline for the alternatives.

When you call around asking how much long-term care costs, you’ll normally receive prices in the form of a daily cost. In this case, let’s say that the maximum daily benefit is $150.

It’s also important to know the maximum benefit pool: $219,000. The maximum period of coverage is four years.

Now here’s the thing . . . those last two figures have a substantial limitation in that if John needs to be covered for more than four years, he won’t be. Additionally, if he meets the maximum benefit pool figure, he won’t get any more coverage.

So, let’s say that he has care for four years but hasn’t met his maximum benefit pool amount . . . unfortunately, he won’t get any more coverage. It’s one or the other.

Plus, there are no death benefits for this traditional long-term care insurance.

The premium for this coverage? $387.45 per month.

So, the benefit of this policy is that it covers or can supplement long-term care costs to protect assets. The downside is that they have to use it or they will lose it. Additionally, their premium may increase (it happens, and sometimes substantially).

Wade Pfau, a contributor for Forbes, described why it is so important for people to shop around for different providers. Some providers will actually create inexpensive policies to lure customers into the plan, and then will increase premiums at a later time. Don’t fall for this trap.

2. The Legacy Optimizer

The Legacy Optimizer is simply life insurance with a long-term care rider.

You probably already know what life insurance is, but what’s a rider? A rider is an option that you can add on top of a policy. It’s like a feature (like GPS) you can add onto your car. Simple, right?

The cool thing about this option is that it actually has a death benefit (from the life insurance) which is $225,000. The maximum daily benefit is $150. And, the maximum benefit pool is $225,000.

The maximum period of coverage is 50 months which is pretty close to the four years in the traditional long-term care insurance example.

The premium for this policy is $3,926 annually (or about $327.17 per month – less than the traditional long-term care insurance.

Keep in mind that this is a universal whole life policy that allows acceleration of the death benefit to pay for long-term care. Also, remember that The Legacy Optimizer provides a death benefit whereas the traditional long-term care insurance does not.

Finally, this is structured in a monthly or annual premium version to stretch costs over time.

Let’s move onto the next long-term care insurance alternative . . . .

3. The Income Plan with Long-Term Care Bonus

Wait, you’re probably thinking that I hate annuities. Actually, I don’t hate annuities. I do hate variable annuities, but some types of annuities might actually be right for you.

Annuities are not evil. Well, not all of them.

Some advisors that sell annuities are, well, “evil.”

Again, there are situations where annuities make sense. There must be a detailed financial plan to make sure that an annuity makes sense.

Remember: Annuities must have a purpose. If your advisor tries to sell you an annuity without explaining why it makes sense, run the other way.

The kind of annuity we’re talking about for our example here is an income annuity with a single premium.

John and Sheila Jones, should they take this alternative, would be putting in a lump sum of money at age 55 and then would receive a monthly income benefit in 10 years at age 65 of $2,300 per month.

Now, if they were to go into long-term care, there is a long-term care doubler benefit which would pay them $4,600 per month while they are in long-term care. Bonus!

The maximum period of coverage is 60 months for this alternative. That’s more coverage than the other ones thus far.

The premium? $350,000 single premium (that’s the lump sum we talked about).

Here are some of the key points you should know about this alternative:

• It’s only available for one payee regardless of the timeframe used – This means, for example, that if John goes into long-term care for two years, comes out of long-term care, and then goes in again – the doubler benefit would no longer be available. Additionally, this can only be used for one person.
• There’s a two-year waiting period after the income has started to use the doubler – For John and Sheila, this means that the doubler can’t be used until age 67.

Let’s take a look at our last alternative . . . .

4. The Hybrid Strategy

This is also called an asset-based policy.

Wade Pfau (a contributor for Forbes mentioned earlier) explained that hybrid long-term care insurance policies are the result of attempts to combat concerns related to traditional long-term care insurance. So, if you’re weary of traditional long-term care insurance, and are looking for an alternative, this one might be something to consider in particular.

This one has a death benefit of $150,000, a maximum daily benefit of $150, and a maximum benefit pool of $150,000.

The maximum period of coverage is 33 months – lower than some of our other options.

The Hybrid Strategy has a one-time premium of $72,330.

Remember that this option has a death benefit and they can also accelerate that death benefit.

Some policies have a return of premium option so that John and Sheila can pull out of the option and get their premium back (costing them their interest if they do so).

This policy also allows John and Sheila greater options than traditional long-term care policies through a death benefit.

Finally, this is a single premium policy which allows them to use money they have set aside that they are not expecting to use for retirement to insure against long-term care costs.

Here are some of the features we look for on these hybrid policies:

• Return of Premium Option – We like not getting locked into an investment!
• Spousal Benefit – Shelia in our example would also have coverage.
• Lifetime Rider Option – An additional cost that gives the ability to receive money for long-term care for life (it would never run out).

Let’s Quickly Review the Alternatives!

The Legacy Optimizer (insurance with long-term care rider) can be very expensive and payments must continue.

The Income Plan with Long-Term Care Bonus (income annuity with long-term care benefit) must have an income need established and there’s going to be contract periods and surrender charges.

The Hybrid Strategy (asset-based long-term care) has a single premium and the remaining benefit goes to the heirs.

Personally, I’m really excited about the asset-based long-term care plan. With the spousal feature that can cover both the husband and the wife, the 100% return of premium feature, and the lifetime rider option (although at an extra cost), this “hybrid” approach can be very attractive.

Which Option Should You Choose?

Let’s forget John and Sheila for a moment. Which option should you choose?

Anne Tergesen, a contributor for The Wall Street Journal, explained that when you’re deciding between a traditional policy and a hybrid policy, there are various factors that will help you determine what is right for you. Your tolerance for investment risk matters (in fact, it matters a lot). Your net worth matters (agreed, if you’re wealthy, you may not need a plan in the first place). And, you’ll want to determine whether you want multiple forms of policies instead of only one.

Well, the worst option is to do nothing or to cancel a policy when you don’t have a backup plan.

Let me tell you a story about a close call.

One of my clients told me about his father, a widower, who had purchased a modest long-term care insurance package with two years of benefits at $75 per day. At that time, the dad was in perfect health. He wasn’t a smoker, wasn’t obese, and was physically active. Medical history? Great!

I have to say, this is amazing that the father purchased this policy. Many don’t.

However, at the age of 81, the father wanted to cancel the policy because he thought the premiums were too high. Thankfully, his children pointed out that their family members live a long time and that even though he was in good health, he might not always be and would need the benefits.

The father, thankfully, agreed to hang onto the policy.

Three years later, dementia required the father to enter an assisted living program for six months followed by a nursing facility.

Again, thankfully, the policy covered most but not all of his care. The children said their only regret was not encouraging their father to get a policy that would last longer than two years and have a larger per diem benefit.

Okay, so you see the value in having some kind of plan. Which option should you choose? Well, that depends on your particular situation.

I recommend that you get in touch with my team at Alliance Wealth Management so that we can provide a complimentary (yes, free) long-term care strategy session. We won’t pressure you to sign or anything, we’ll just show you your options based on a review of your situation. If one of our options makes sense to you, we’d be happy to help!

Additionally, if you want a more comprehensive review, please take a look at The Financial Success Blueprint™.

Be smart. Consider your options!

Source Good Financial Cents http://ift.tt/2girIWO

This App Will Actually Pay You to Do Your Holiday Shopping on Amazon

Do you shop on Amazon?

Me, too — and I especially frequent the site as the holidays loom closer and closer.

That coffeemaker I wanted to get my mom but waited too long to order? Well, Amazon is the only place that’ll get it to me on time. (Thanks, Prime! Sorry, UPS!)

But did you know your Amazon shopping could pay off? Probably not pay off your purchases, but we found a tool that will actually pay you to shop…

…at least, that’s how my brain likes to see it when I get my bank statement at the end of the month.

How Can You Get Paid to Shop on Amazon?

This is such an easy, passive way to rake in an extra $36/year.

ShopTracker is operated by The Harris Poll, a survey company that measures U.S. public opinion.

In this case, it wants to see what products Amazon users purchase. When you sign up for ShopTracker, it keeps your private information, well, private.

All it wants to see is your order information, including the order date, product title (i.e. Cuisinart DGB-900BC Grind & Brew Thermal 12-Cup Automatic Coffeemaker), category, ISBN number, release date, condition, seller, list price per unit, quantity and other details.

Can You Sign Up for ShopTracker?

Before you start the simple download process, let me give you the basic requirements:

• This will be a waste of time if you don’t shop on Amazon.

• You must be 18 and live in the U.S.

• You’ll need at least a Windows 7-compatible PC. If you have Windows XP or a Mac, it won’t work.

All good? Time to download.

How to Download ShopTracker and Start Earning Extra Money

The download process takes 3 minutes — tops.

Navigate over to ShopTracker, and enter your full name, birthday, street address, zip code and gender. This is the most personal the information will get.

Next question: How often do you use Amazon to make purchases? The Harris Poll is just making sure you qualify, so no need to lie to yourself on this one.

Second question: What type of Amazon account do you have? If you don’t have anything special, no worries — just select “None of the above.”

Finally, does your household have more than one Amazon account? If the answer is no, you won’t be disqualified. My whole fam shares a Prime account, so go ahead and be honest.

That’s the end of the questions! The next screen will let you know if you’re qualified to sign up.

If you do qualify, it’ll outline the details: You’ll get a $3 Visa gift code in your inbox each month. Once you accept it, the app automatically syncs to your Amazon account — so you don’t have to do anything, really.

Next step is to continue the download process. You’ll install the app and log into your Amazon account. Within 48 hours, you’ll get that Visa code, which you can accept.

If you keep this going for a year, you’ll get an extra $36, which can buy you a Crayola craft pack, a Harry Potter-themed version of the Clue board game or in my case, a holiday gift basket of whole bean coffee — to go with that coffee maker, of course.

Your Turn: What will you buy with the extra money from ShopTracker?

Disclosure: This post includes affiliate links. We’re letting you know because it’s what Honest Abe would do. After all, he is on our favorite coin.

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

The post This App Will Actually Pay You to Do Your Holiday Shopping on Amazon appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/2fPigf5

9 Purchases That’ll Cost You Today — But Save You Money in the Future

You know the old cliche: You have to spend money to make money… er, save money.

Yes, we generally try to find ways to avoid spending money — there’s nothing like getting a great deal (or freebie)!

But sometimes, a little upfront splurge is worthwhile, especially if it’ll save a ton of money in the long run.

Here are nine ways to save money later by spending some today…

1. Subscribe to Save on Shaving Supplies

What do you typically spend on a five-pack of disposable razors from a retailer like Target? Five dollars? And you have to go to the store to pick them up or pay for shipping to have them delivered.

With a Dollar Shave Club subscription, you can get a free handle, plus up to five fresh blades every month for as little as $1.

That’s $48 per year in savings — $2,352 saved on shaving supplies from age 18 until you retire at 67 (because, after that, why not let it go?)

And DSC takes all the work out of stocking shaving supplies. You can set your subscription and forget it.

You can easily switch to every other month or pause your subscription if you’re traveling. It’s also easy to add items, like shaving butter and even hair gel, when you need them.

You can sign up now and get your first month free (after that, it’s just a few dollars each month).

2. Become a Member to Get Free Shipping on Amazon

You already know shopping on Amazon is a smart way to save money on almost everything on your list. Use Amazon Prime to make the most of those savings with free two-day shipping.

At $99 per year, you’ll want to do the math to ensure a Prime membership is worth it.

For example, if you receive about three shipments per month at approximately $5 each in shipping costs, Prime would save you $81 every year. If you rely on Amazon for everything from electronics to essentials like food and toiletries, your savings could be far more.

A Prime membership comes with some pretty cool money-saving perks beyond free shipping, too.

Members get access to streaming TV, movies and music; unlimited reading in books, magazines and more; unlimited photo storage, plus early access to Amazon Lightning deals. Think of how much you could save stocking your Kindle!

Sign up here to start a one-month free trial (after that, it’s $99 for the year or $10.99 per month).

3. Shop Online to Earn Gift Cards

We often find better deals shopping online than in-store — but there’s an even better reason to shop online. You can earn free gift cards.

The trick is signing up for a website called MyPoints, a cash-back site that rewards you for the shopping you were going to do anyway.

When you sign up, you can take advantage of this special offer: You’ll get a $10 gift certificate of your choice when you spend $20 on anything.

That’s an automatic $10 in savings next time you shop!

Here’s how to get it:

1. Sign up for MyPoints with your name and email address or your Facebook account. 
2. Within 30 days, log into the portal and spend at least $20 at one of its many partner retailers. 
3. MyPoints will then give you $10 worth of bonus points (1,750 points). 
4. You can either request your gift certificate online or in the mail. Choose a gift card for Amazon, Walmart, Target or a slew of other major retailers.

4. Charge Your Purchases to Earn Cash for Later

If you’re not using a rewards card for your everyday purchases, you’re leaving free money on the table.

One of our favorite rewards cards is the Barclaycard® Rewards MasterCard® – Average Credit. You’ll earn two points for every dollar’s worth of groceries, gas and utilities you put on the card!

On top of that, you’ll earn one point for every dollar you spend on anything else. The card comes with no annual fee — as long as you pay off your balance each month, it costs you nothing to have. Also, this card isn’t impossible to qualify for — it’s marked as average credit.

The points can be converted to cash (1,000 points = $10), which is like automatic savings on your next purchase.

5. Get Free Shipping at Walmart

Live in an expensive city without a nearby Walmart? (Or maybe you just don’t want to trudge through it’s seemingly-endless aisles?) Take advantage of the store’s famously-low prices by shopping online.

We love Walmart for all the clever ways it helps you save money on everything from groceries to toys. And this makes it even better.

With Walmart’s Shipping Pass, you can get free two-day shipping on any order, with no minimum purchase. If you’re an avid Walmart shopper, that could mean a lot of savings!

You’ll get free shipping on household items, toiletries, clothes, electronics, toys and more from Walmart.com for $49 a year.

Walmart usually requires a $50 minimum to get free shipping, but with Shipping Pass, you can order what you need — and only that. You’ll save money by skipping the impulse, fill-in purchases.

6. Buy in Bulk and Save

If you’re feeding kids or pets, have expensive prescriptions, or just love to stock up on affordable wine, a Costco membership might be worth the cost.

A regular “gold star” Costco membership costs $55, and it’s required to shop the membership club.

For that price, you can save money buying groceries in bulk, plus enjoy weird discounts on things like engagement rings and coffins!

You can purchase your membership online. You’ll receive a membership card via email within two days, and you can start shopping online or at any Costco location around the country.

7. Save on Your Favorite Books — and Coffee

Do you love a stroll around a good, old-fashioned brick-and-mortar bookstore? (Remember, we’re writers here, so this sounds like a perfect day…)

You can save money on your beloved books — and Starbucks coffee! — with a Barnes and Noble membership. For $25 a year, you’ll receive a membership card that entitles you to a 10% discount on anything in the store.

If you spend more than $250 a year on books, games and music — about 11 hardcover books — this membership will save you money.

Or, if the Barnes and Noble Café is your favorite place to stop for a daily latte, you’ll quickly make your money back in savings — and then some.

8. Get Free Shipping at Hundreds of Retailers

What if your favorite retailer doesn’t offer free shipping? We found a site called ShopRunner that offers a solution.

For a one-time fee of $79, you get a lifetime membership, which gives you free two-day shipping on any orders at hundreds of partner retailers.

You’ll get the benefit when you shop online at retailers like Neiman Marcus, Cole Haan, Toys’R’Us, GNC and more.

Once you’re a member, ShopRunner is easy to use. As long as you’re logged into its site, you’ll be logged in when you shop at any partner site. Otherwise, you’ll see a ShopRunner logo on a product page, which you can click to sign in.

Sign up here to start a free 30-day trial.

9. Steam Music to Save on Records (and CDs and Cassettes…)

If you’re a music junkie (and you can deign to forgo vinyl), you could save a ton of money and space by subscribing to a streaming service.

You can get free access to ad-supported versions of most popular services. But if you want the freedom to download albums, listen to songs a la carte and forgo ads (for the sake of sanity), a subscription is worth it.

Pandora One gives you ad-free listening and better audio quality on the classic streaming service for $4.99 a month or $54.89 for a year.

Spotify Premium is free for 30 days for new users, and $9.99 a month after ($4.99 for students). Premium gives you online and offline ad-free listening, unlimited skips and higher sound quality.

Apple Music is free to new users for the first three months, then $9.99 a month for individuals or $14.99 a month for a family plan for up to six users. The subscription gives you access to unlimited skips on Apple Radio, the ability to save content for offline listening and other unique features.

To decide which would be the best fit for you, read our music streaming service comparison.

Your Turn: What smart splurges do you make to help you save money later?

Disclosure: This one time, Kyle came into the office with $6 worth of Taco Bell that he planned to eat over the course of three meals. By clicking the affiliate links in this post, you help us help Kyle seriously ease up on the Taco Bell.

Advertiser Disclosure: Many of the credit card offers that appear on this site are from credit card companies from which ThePennyHoarder.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). We do not feature all available credit card offers or all credit card issuers.

The post 9 Purchases That’ll Cost You Today — But Save You Money in the Future appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/2fCYyQI

Use Ebates Double Cash Back Today and Spend Black Friday With Family

Black Friday Creep — when Black Friday deals get released earlier and earlier — is real. This year, I noticed stores advertising early holiday sales around the same time Halloween candy started getting marked down.

While it may seem overwhelming to start combing through some of the season’s best deals a few days before Thanksgiving, this is actually a phenomenon I can get behind.

Why? If you shop early, you can spend more time with your family and friends on Thanksgiving and Purple Friday.

And Ebates just made those early Black Friday deals even sweeter. This week, the cash-back shopping portal is offering double cash back for many of its retailers.

Ebates’ Best Double Cash-Back Deals This Week

Check out these Ebates cash-back offers — some of them are even more than double the normal rate!

Belk: 6% cash back

Dell: 12% cash back (usually 2%!)

J.Crew: 10% cash back (usually 1.5%)

Macy’s: 10% cash back (usually 3%!)

New Balance: 10% cash back

Nike: 9% cash back (usually just 1.5%!)

Nordstrom: 6% cash back (usually 2%!)

Old Navy: 8% cash back

The Body Shop: 8% cash back

Ulta: 6% cash back

Under Armour: 8% cash back

Plus, if you’re a new Ebates user, you’ll get a $10 welcome bonus when you sign up!

Your Turn: Will you shop through Ebates this week? Which cash-back offer will you snag?

Disclosure: What would Abe do? Probably pat us on the back for placing affiliate links in this post. Thanks for helping us fill The Penny Hoarder’s beer fridge!

Lisa Rowan is a writer and producer at The Penny Hoarder.

The post Use Ebates Double Cash Back Today and Spend Black Friday With Family appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/2gHC8CK

Want to Make Extra Cash in the Gig Economy? Here’s What You Need to Know

Nearly a quarter of Americans have tapped into the gig economy, thanks to what Pew Research calls “digital earning platforms.”

Yeah, it sounds fancy and technical, but you’ve probably encountered these platforms before: Uber, Etsy, Airbnb, DogVacay… you name it. It’s anything that digitally contracts folks to work flexible gigs.

So Pew released a study last week reporting 24% of Americans have earned money from this digital platform economy in the past year — and this growth isn’t expected to slow soon.

Sounds great, right? Well, there are pros and cons to this trend — plus many aspects to gigs you probably haven’t considered yet, but really should.

The Reality Behind the Growing Gig Economy

Snagging some income by using a digital platform is appealing on so many levels: flexible work schedules, side income, noncommittal terms…

However, Pew emphasizes that while 49% of “gig workers” consider the income “nice to have,” 56% consider the income “essential or important.”

Many who fall into the “essential” category say the work appealed to them because there weren’t any other jobs available — not because of the flexible schedule.

In fact, 25% of those who find the work essential say they work these gigs because of the “lack of other jobs where they live.” Also, 24% say it’s to gain work experience, which makes sense since another 52% say they have a high school degree or less.

In terms of demographics, 57% of those who find the work essential have a household income under $30K, and 36% are already employed full time.

So, while the gig economy might be appealing to those of you who deem the extra income “nice to have,” many rely on this type of work to get by.

What You Need to Know Before Joining the Gig Economy

As mentioned, these gigs are appealing, but consider the following before jumping right in.

I spoke with FlexJobs’ senior career specialist Brie Reynolds, who says the Pew study sheds light on this “prominent and still-growing phenomena.”

She says whether you choose to work as a free agent, a freelancer or somewhere in between, there are some best practices to first consider.

1. Don’t work without a contract.

For those looking to start earning money immediately, a gig is awesome.

However, be sure to set up a contract first. With established platforms like Uber and Airbnb, you’ll enter a contract when you sign up — just be sure to read the fine print.

For other work, though, it might not be so simple.

“If you don’t have at least a basic contract signed between you and the client, there’s a ton of room for issues to pop up,” Reynolds says.

All you need is something basic outlining each party in the agreement, the project and the agreed-upon price (plus timing of payments or anything else of the sort), as well as the deadline.

2. Find a few solid sources for gigs.

Consider multiple gig sources, especially if you’re part of that 25% who considers this work to be essential.

For example, if you drive with Uber, you could consider also signing as a Lyft driver. I know many drivers who do this. That way, if there’s a dry spell for Uber requests, you might be able to keep busy on Lyft’s platform.

If you’re a freelancer of sorts, the same concept applies.

“Finding freelance work can be stressful because you want to make sure you find high-quality, reliable clients, and not people or companies that don’t intend on playing by the rules,” Reynolds explains.

Relationships — and reliable job sites — are key.

3. Create a system for tracking your income and payments.

You knew this was coming…

This is important to be sure you’re getting paid fairly and accurately in a timely manner. Because you’re keeping track, you’ll be able to go your client and ask why you haven’t been paid (though hopefully this won’t be the case).

“Most of the time, clients don’t have nefarious reasons for failing to pay you on time, they just need a lot of reminding,” Reynolds explains. So just keep an eye on things and give a little nudge when needed.

Also consider that taxes might not be taken out of those paychecks. If they aren’t, you’ll need to file them yourself and make an estimated tax payment every three months. Don’t let this scare you — check out our freelancer’s beginner’s guide.

How to Get Started With Your First Gig (or Second or Third…)

We wrote about Pew’s original study earlier this week and gave you some ideas on where to get started in your “digital platform economy” search.

And The Penny Hoarder always loves a good side gig, so you’ll always see us posting flexible jobs on our Facebook jobs page.

Your Turn: Are you taking advantage of the digital platform economy? Tell us your story.

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

The post Want to Make Extra Cash in the Gig Economy? Here’s What You Need to Know appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/2g02KKP

4 Tricks to Get You Cheaper Doorbusters on Black Friday and Cyber Monday

Doorbusters are great on Black Friday and Cyber Monday. It’s a convenient way to check some stuff off of your list for a price much lower than what you’ll find during the rest of the year.

But what if I told you that you could knock those prices down EVEN further?!

If you’re like me and don’t have stacks of cash, deal-stacking is a great way to save some money while still buying the things you need.

Deal-stacking is using multiple coupons, promotions and sales to drive an item’s price down.

Yes, this might sound totally overwhelming. To be honest, when I think about it, I picture those insane couponers I see on TV. My heartrate increases each time a coupon gets scanned. Is this really going to work?!

But I’ve come to learn deal-stacking doesn’t have to be like that—at all.

4 Steps to Save You Even More on Black Friday and Cyber Monday

You can find some pretty good deals when you’re Black Friday shopping and on Cyber Monday (just don’t waste your time on tools).

But don’t just settle for those 60% off tags. Instead, follow these four steps to get even more discounts. (Whew, just saying that makes my heart flutter!)

1. Arm yourself with coupons.

Before you even leave your abode, scope out coupons for your favorite stores. RetailMeNot is a great site to get you started.

It offers more than 500,000 coupons for more than 50,000 stores — all on your screen, aka papercuts! It even offers “leaked ads,” so you can plan your Black Friday shopping before the true rush begins.

And once you’re on RetailMeNot, you might as well check out the discount eGift cards.

Basically, you buy gift cards at a discounted rate. I search “Target” and find a card valued at $41.98 going for $40.51, a 3.5% savings. There’s also a $25 Gap gift card going for $21.35 — saving you 14%.

Plus, these gift cards have no expirations dates, so once they’re in your inbox, they’re yours forever. Bonus: Gift cards don’t come with exclusions!

Final hack: Peruse the site’s cash-back offers. Right now, there’s a $10 cash-back offer for a purchase of $50 or more from Macy’s. It’s all digital, and the money funnels into your PayPal account.

If you’re already spending the money on Cyber Money, might as well, right?

2. Get a cash-back refund.

So, pretend it’s Cyber Monday, and you’ve totally lost all concentration at work. (That’ll be me. Sorry, boss.)

Before you go totally rogue, be sure to hit up MyPoints, a cash-back site that rewards you for shopping online and printing coupons. It’s a simple, instant way to save.

For example, you can get up to 5% cash back on purchases in some categories on Amazon.

Right now, you can get a $10 Amazon gift card, just for signing up. Here’s how:

• Sign up for MyPoints using your email or Facebook account.

• Next time you buy something online, use the MyPoints portal, which is connected to thousands of stores — chances are yours will be on there.

• If you spend $10 at one of these stores, MyPoints grants you 1,740 bonus points, which you can redeem for that $10 Amazon card.

Score! I just bought — and paid for — a new sweater.

3. Share your receipts.

OK, so say I actually did impulsively buy said sweater. I’ll immediately get an email in my inbox — something like, “Order Confirmation.” My natural instinct is to delete it.

But don’t.

Instead, sign up for Paribus. It’s free and scans your email archives for receipts. It might sound scary, but we use it here at The Penny Hoarder.

If it detects purchases from Amazon, Target or one of its other 16 retail partners, it tracks the item’s price and issues a refund as soon as the price drops.

After you sign up, you don’t have to do anything! That’s my kind of money.

4. Pay with a rewards credit card.

Yeah, I’m with you: Credit cards are sorta intimidating.

But I recently signed up for a rewards card, and since I pay off my balance each month, it’s awesome.

Right now, Fidelity is offering a free cash-back card.

Free is emphasized here because usually rewards cards sometimes come with sign-up fees. Instead, when you sign up for this card, you can earn up to $100.

You’ll also get unlimited 2% cash back with each purchase. And this isn’t restricted to gas or groceries — it’s for any purchases you make.

Go ahead and sign up so you can put this sucker to use for Black Friday and Cyber Monday.

So yeah, there are some really great Black Friday and Cyber Monday deals out there, but we challenge you to make then even better!

Your Turn: What’s your favorite Black Friday/Cyber Monday shopping hack?

Disclosure: Here’s a toast to the affiliate links in this post. May we all be just a little richer today.

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

The post 4 Tricks to Get You Cheaper Doorbusters on Black Friday and Cyber Monday appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/2gdgwJq

Get Paid to Evaluate Social Media Accounts From Home (With Flexible Hours!)

We love interacting with our readers — especially when a solid, work-from-home job lead is involved.

A reader reached out on our Facebook jobs page Monday night to ask if we’d ever written about a company called Appen.

“If not, they’re a great company to write about, and they are hiring!” she wrote.

What’s Appen and What Do They Do?

Appen is one of those behind-the-scenes companies that helps technology and e-commerce companies develop and expand to global markets.

“With capability in over 150 languages, Appen’s global network of specialists and in-country virtual teams work together to ensure new products and technologies operate in all the languages our clients need,” the site states.

It’s pretty involved, which means a variety of jobs are available — all work-from-home.

“Appen offers work from home opportunities for exciting, flexible, short-term projects as well as full-time corporate opportunities,” the jobs page states. “We are proud to have been named in Forbes Magazine as one of the Top 100 Companies Offering Flexible Jobs in 2014, 2015, and 2016.”

What Type of Work-From-Home Jobs are Available?

Appen specializes in search, language technology and social technology, as well as project management and crowdsourcing.

Right now, the company’s actively seeking social media evaluators, which is a great place to get started.

Our reader gave us some awesome insight into opportunities for advancement.

“Once you start working for them (and do well) management will pass along your information for other jobs they have that are not posted online,” she writes.

These other jobs include crowdsourcing and web search evaluators.

More About the Open Social Media Evaluator Positions

“Get paid for using social media!” the job posting states.

Unfortunately, you won’t get paid to mindlessly scroll through Twitter or tag friends in viral Facebook dog videos. (That French bulldog getting pampered…)

You’ll need this experience, though, since you’ll be improving a top client’s newsfeed. But don’t worry — you’ll be adequately trained.

You’ll need to be familiar with Facebook, Twitter, Instagram and Pinterest, among other platforms. You should also be able to follow instructions while working independently (from home, remember?) and have a strong grasp of English.

In terms of technology, you should have a computer that’s less than 3 years old, runs Microsoft Windows or a Mac operating system and has a high-speed internet connection.

You should be able to commit to 1-4 flexible hours a day, five days per week (sometime seven), including one weekend day. You’ll work as a contractor, accepting projects along the way.

“It allows for so much flexibility,” our reader says. She works one hour each day. “I get a whole day to work my hour. I can pause any time and come back where I left off, as long as [the project is] completed that day.”

She keeps a stopwatch going to keep track of the time she’s worked.

Pay is described as competitive; our readers says she makes just under $14 an hour and gets paid once a month via direct deposit.

How To Apply for a Job with Appen

You can find the social media evaluator position here, but it’s only available for U.S. citizens.

If you’re interested in other opportunities, check out the site’s job page, which includes international jobs.

As always, follow our Facebook jobs page for more work-from-home jobs. And if you have found an awesome company that’s hiring, be sure to message us and let us know!

Your Turn: Do you work from home for an awesome company?

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

The post Get Paid to Evaluate Social Media Accounts From Home (With Flexible Hours!) appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/2fOsZXb

Break Out the Recipe Box: These 5 Contests Pay Cash Prizes (Up to $5,000!)

I’m certainly not a cook.

My family members, boyfriend and former roommates can all speak to this. But my Southern family sure has some A+ recipes.

Mimi’s sweet potato casserole is incredible. So is her pecan pie (I can actually make that), boiled custard and pound cake.

But little does my Mimi know, she could earn some substantial cash for these recipes. How? Through online recipe contests.

And yes, Mimi is nearly 90 years old, but she’s a seasoned pro on her iPad.

Submit Your Favorite Recipes to These 5 Contests

I’ve never really understood secret family recipes. If it’s that good, why not share the carbohydrate-rich joy?

This is exactly what you can do — and compete for prizes in monetary form.

I found five recipe contests open now until the end of the year that offer up cash prizes. Because why not?

You already have your recipe box out, flipping through index cards searching for the dish your mother-in-law might actually enjoy.

1. The Lucky Leaf “Simple Treat” Recipe Contest

Lucky Leaf makes canned fruit dessert filling. This probably isn’t ideal if you’re a seasoned baker, but it sure does make things a heck of a lot easier.

With this contest, you’ll need to showcase that canned filling within a simple holiday dessert recipe. Really simple — nine ingredients or less.

You’ll submit the recipe and an image, though that’s optional if presentation isn’t your thing.

Here’s all the fine print.

Prize: $5,000 check; nine runners-up receive a $250 Amazon gift card

Deadline: Nov. 26

2. 2016 Kenmore’s Fully Loaded Idaho Potato Cook-Off

I don’t know anyone who doesn’t appreciate a hearty potato — especially when cheese is involved.

This “spudtacular” contest (that’s Kenmore, not me unfortunately) asks you to submit your favorite potato recipes — mashed, baked, frenched, scalloped, whatever your desire.

Along with the recipe, include a photo and a 100-250-word description about the dish’s history and what it means to you.

Don’t be a couch potato; read the rules first.

Prize: $1,500 cash, plus Kenmore small kitchen appliances; second and third places get a small kitchen appliance and a 15-pound bag of potatoes; the social spud with the most likes gets $500 cash

Deadline: Nov. 30

3. Old Croc’s Most “Aussome” Recipe Contest

I have to say, I’m a big fan of the puns these contests are using — and cheese. I love cheese.

Explainer: Old Croc is a brand of Australian cheese. Your task for this contest is to submit your favorite original recipe featuring extra sharp cheddar, sharp cheddar or smoked sharp cheddar cheese.

Submit the recipe and a photo (you’re granted up to five submissions), and you’ll be judged on taste, creativity and visual appeal.

In queso questions, here are all the details.

Prize: $1,000, second place gets $500, third gets $300, fourth gets $200, fifth gets $100

Deadline: Dec. 9

4. Avocados From Mexico Mini Chefs Contest

Use your adorable child (between the ages of 4 and 12) to earn money — featuring the most trendy fruit: avocados.

You can choose an existing recipe or submit your own. Record a short video (less than 10 minutes) of you and your spawn whipping up the avocado-focused treat. Then, submit the video for public vote.

A ripe perk: This is a monthly contest that runs until June, so you have plenty of time to let those avocados ripen, test the perfect recipe and train your child.

Read the official rules.

Prize: $1,000

Deadline: Dec. 14 — or the 14th of each month

5. Taste of Home: Thanksgiving Time Savers Recipe Contest

Do you make some dishes for your big holiday get-togethers before the event? Probably.

If not, you’re something supernatural.

“Taste of Home” — yup, the cooking magazine you see on shelves at the store — is calling for Thanksgiving time-saver recipes. Ideas include a five-ingredient sausage stuffing, cranberry crumble bars and bacon maple cheese spread. (Stomach’s growling over here.)

The recipe must have 12 or fewer ingredients and scream Thanksgiving.

No shortcuts here; read the rules first.

Prize: Up to 12 prizes including a $500 grand prize

Deadline: Dec. 19

Here’s to Contest Cook for showcasing awesome recipe contests!

Your Turn: Which recipe are you submitting?

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. After recently completing graduate school, she focuses on saving money — and surviving the move back in with her parents.

The post Break Out the Recipe Box: These 5 Contests Pay Cash Prizes (Up to $5,000!) appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/2f2TSau

Ask Kyle: Our Founder Reveals All His Best Advice for Black Friday

When it comes to Black Friday, there’s a LOT to know. What to buy, where to buy it, when to go…

Sifting through all the information can get overwhelming — especially when there’s some not-so-good advice out there.

To help set things straight, I chatted with The Penny Hoarder’s founder, Kyle Taylor. He’s the savviest Black Friday shopper I know, so I figured he’d have some excellent advice to share.

And I was right… Keep reading to learn all of Kyle’s Black Friday shopping tips!

Is Black Friday dead?

No, definitely not. Black Friday isn’t dead — it’s just different.

You can still grab some great doorbusters by going in person to the store, but honestly, many of the best deals are now available online. They’re also available before Black Friday itself, occasionally popping up in mid-November or earlier.

Some people are calling this the “death of Black Friday” — I’m calling it more time and more opportunities to score deals!

To me, the more options the better! Because it means you can participate in Black Friday in the way that works best for you — whether that’s going out bargain hunting with your family or cozying up with your laptop at home.

Alright, let’s hear it: What are your tips for getting the best prices?

Well, I LOVE stacking deals. And by that, I mean using multiple discount strategies on a single product.

Say you want to shop at Walmart on Black Friday. Before going, you could use a cash-back rewards card (I love the Barclaycard Rewards MasterCard) to purchase a discounted Walmart gift card at Raise, which you’d then use to do your shopping. That means you’re earning cash back and saving money — before you even leave the house!

If you want more details, check out this comprehensive guide to stacking deals from our very own Dana Sitar.

I also recommend downloading Black Friday apps to help you keep track of the deals, and following your favorite stores on social media — as they often share deals on those channels first.

What’s NOT a good deal on Black Friday?

Simple: If you don’t need it, it’s not a good deal. Don’t be tempted to buy things just because they’re on sale.

More specifically, toys and jewelry are cheaper other times of the year, and you should also avoid off-brand laptops and tablets.

For a full list, check out our post about what not to buy on Black Friday.

Is there a way to earn money instead of spending it on Black Friday?

If Black Friday shopping isn’t for you, there are lots of other ways to spend your day.

I always recommend spending time with family — but if you’re itching to make an extra buck, you could do anything from organizing coupons to starting your side-hustle.

Need more ideas? Here are 25 ways to make money on Black Friday.

I know you love free stuff. Have you seen any good Black Friday giveaways?

Even better than Black Friday, we’re hosting a Purple Friday giveaway here on The Penny Hoarder!

Tell us what would help you spend time, not money on the day after Thanksgiving — and we might just help you do it! We’re giving away 50 prizes, each worth up to $10,000 in value. The deadline to enter is Friday, Nov. 11 at 11:59 p.m. EST.

I can’t wait to read your stories!

Thanks so much for your tips, Kyle! In closing, can you share your No. 1 Black Friday tip?  

It might not be what you’d expect me to say, but here it is: Make a budget and a list.

While I want everyone to get killer deals on Black Friday, I only want people to get deals they can afford.

To help you stay on track, our team’s created an awesome holiday shopping worksheet. Don’t start your Black Friday without it!

Your Turn: Do you have any questions for Kyle? Comment below!

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!

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

The post Ask Kyle: Our Founder Reveals All His Best Advice for Black Friday appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/1P7aERi

Is a £1m pension enough to live the dream?

Rachel Lacey

living-the-dream.jpg

Half of pre-retirement pension savers think that £1 million would be enough to lead a golden retirement, according to research from Investec Wealth and Investment.

Half of pre-retirement pension savers think that £1 million would be enough to lead a golden retirement, according to research from Investec Wealth and Investment.

read more

Source Moneywise http://ift.tt/2gGx81l

13 Black Friday Insider Tips: When, Where and How to Find the Best Deals

It’s hard to believe, but the holiday shopping season will soon be here. It’s time to get ready, because — love it or hate it — the day it officially starts is the day you might find the best deals.

Yup, we’re talking about Black Friday. Though everyone’s heard of it, few know how to make the most of it.

To help you dominate this bargain extravaganza, we enlisted the help of eight Black Friday experts who have years of experience navigating the day’s madness.

We’ve already shared their secrets for preparing for Black Friday — but what about the actual day?

Where do you find the best deals? When should you shop? How do you stay on budget?

To learn the answers to these questions (and many more!), keep reading. Here are 13 insider tips for scoring big this Black Friday.

When to Shop on Black Friday

Timing your Black Friday shopping is crucial. Here’s when you should plan to shop.

1. Shop on Thanksgiving Instead

The bad news? Black Friday is no longer just a single day; it has crept into the weeks surrounding.

The good news? If you want to grab the best deals, you may not need to wait until the day itself.

“We actually see not only the most deals — but the best deals — on Thanksgiving,” says Benjamin K. Glaser, features editor of DealNews.

Though that may sound depressing, take solace in the fact you don’t need to leave your house to score big.

“Almost all these deals have completely migrated online… [So] using Thanksgiving as a shopping day to get the best deals is definitely a worthwhile strategy,” he explains.

2. Create a Schedule

Savvy Black Friday shoppers plan their excursions down to the hour; they don’t only know where they’re going, they know when they’re going.

That’s because stores offer doorbusters (discounts for an extremely limited time) at different times throughout the day.

So once you’ve created your Black Friday shopping list, research the doorbusters at nearby stores to see if any match up.  

Collin Morgan, founder of deals site Hip2Save, says this is also a reason to bring a buddy with you.

“The doorbusters go so quickly,” she warns. “Split off: Maybe break the list in half… It also makes the whole experience a bit more fun.”  

Where to Shop on Black Friday

Want to find great deals? You might want to get creative and look outside the big box.

3. Shop Online

Nearly all our experts stressed that you don’t need to fight the crowds to get great prices on Black Friday.

Most of the deals available at brick-and-mortars are now available online as well. Not only is it nice to shop from the comfort of your home, but it can also save you money (more on that below).

“Don’t go in stores unless you know you really want to and know what to expect,” says Glaser of DealNews. “Almost all Black Friday deals are available online at this point … which is going to be much more convenient and makes it easier to compare prices.”

Of course, if you shop on Black Friday for the experience, then by all means, continue to do so — but don’t feel pressured to go just for the deals.

4. Always Check for Price Matches

Spot a great deal in the local circular? Don’t rush out to grab it; you may find it online at the same price.

“If you find a deal in a local store on a top brand name, many times you’ll find that online sites will price match,” says Jenny Martin of couponing and budgeting blog Southern Savers.

“I’ll open up the Lowe’s Black Friday flyer… and then I’ll pull up Amazon and turns out they have the exact same price.”

She says Amazon is the “best at it,” so be sure to check there before hitting the stores.

5. Think Outside the Big Box

When you think of Black Friday, you probably think of what Rebecca Lehmann, content marketing manager for Brad’s Deals, calls “the big four”: Walmart, Target, Best Buy and Toys R Us.

But Martin from Southern Savers suggests visiting smaller stores in search of nontraditional items.

Drugstores top her list: “CVS, Rite Aid and Walgreens all have freebies every single Black Friday — sometimes upwards of 30 items that are completely free,” she says. “They’re easy to grab and they’re things you need, like free toothbrushes and free toothpaste.”

“A lot of the smaller retailers have really gotten into the Black Friday game,” adds Dev Shapiro, spokesperson for GottaDeal.com. If you have a unique hobby or special interest, he recommends checking specialty vendors like Christian bookstores and model train shops.  

Travel is another nontraditional industry offering hefty Black Friday discounts, according to Martin.

“It’s a huge day for cruises, all-inclusive vacations, hotels, even airlines,” she says. “Don’t get yourself stuck on: ‘We’re just looking for a TV.’ Think big picture; there’s savings to be had on almost anything.”

How to Shop on Black Friday

Alright. You now know when and where to shop — but what about strategies for once you’re in the store?

We’ve got you covered.

6. Maximize Your Online Shopping With Rewards and Coupons

Another big benefit of staying home to do your Black Friday shopping? You can earn rewards and use coupon codes.

A great way to quickly compare the cash-back and travel rewards available from each site is with Cashback Monitor. To find coupon codes, we recommend the browser extension Honey, or the shopping portal Ebates.

7. Carefully Consider Cash vs. Credit

This was one point on which our experts disagreed: Some thought you should use cash only (to control your spending), while others recommended credit cards (for the additional warranty).

“When you go shopping during Black Friday, you get engulfed in all that excitement and stores make everything look like it’s the most amazing deal,” warns Morgan of Hip2Save.

“And so you’re thinking, ‘Well I don’t necessarily need this, but it’s such a great deal I’m just going to buy it,’ and then in turn you’re really wasting money — not saving money. Carry cash — then you have to stick with [your list].”

But if you’re going to purchase electronics, plastic might be the better choice.

“All four major card payment networks — Visa, MasterCard, Discover and American Express — offer similar extended warranties for products purchased with their cards adding up to an extra year to the warranty that came with the item,” states CreditCards.com.

Check their site for a chart detailing the warranties offered by your credit card provider.  

One solution: Use your credit card like a debit card, only spending the amount of cash you have saved up at home.

“Especially with electronics, you do want to pay for those with a credit card, because of the warranties,” explains Lehmann of Brad’s Deals. “We definitely recommend saving up cash for your holiday shopping, but when you’re actually in the store, pay with your credit card.”

But there’s an important next step: “Then, when you get home, pay the credit card off in full. Take advantage of the warranties your credit card offers. Rack up the rewards points.”

8. Wear Comfortable Clothes

If you plan to brave the crowds and shop in stores on Black Friday, make sure your wardrobe is up to the task.

“You don’t want to be wearing heels at three in the morning,” says Morgan of Hip2Save. “Wear workout clothes or something. You can’t be uncomfortable when you’re going from store-to-store and running around trying to find all these doorbuster[s].”

9. Stay Connected

Whether you’re home on the couch or out in the stores, maintaining online access is key to scoring all the latest and greatest deals.

Let the deal sites do the work for you by signing up for price alerts or downloading shopping apps.

“Put your wishlist together; we’ll let you know when those items are coming up for sale,” says Melissa Martin, spokesperson for BlackFriday.com. “You could be out shopping… and [your smartphone] alerts you immediately when that item goes on sale.”

10. Compare Prices in Real Time

Whatever you do, don’t just go to one store or website and call it a day. Use a website or app to help you track and compare prices while you’re out shopping.

“The one thing we know about the holiday is everyone’s participating, and every time you think you’ve found the best price, there’s probably a better one,” says Shelton of FatWallet.

“Don’t make impulse buys this time of the year.” (We’d add to that: Don’t make impulse buys at any time of the year!)

11. Tread Carefully

Black Friday is a huge opportunity for retailers to pad their bottom lines, because they know shoppers are quick to hop on every — and any — deal. So it’s important to do your research.

“Not everything that’s in a Black Friday ad is a great deal,” warns David Varble, manager of BFAds.net. “They definitely sneak in some so-so prices or items that were cheaper even in the off season. … Don’t trust it immediately to be great pricing.”

“Know what you’re buying,” seconds Shapiro of GottaDeal.com. “[The] computers some of these retailers offer, they intentionally don’t put enough RAM in them, and they put a smaller hard drive in them.”

He says it’s important to ask yourself: “Does it have enough processor power to do what I want? Am I going to be gaming with it, or do I just want something to get on the Internet?”

12. If You Can’t Find Something, Ask Customer Service

Can’t find an item you wanted? Don’t despair: That doesn’t necessarily mean it’s gone.

“A lot of people go crazy and come to the register and then decide ‘I don’t want this item,’ so they have carts in the front of the store with all the stuff thrown back in,” explains Morgan of Hip2Save.

“I always go to customer service or I’ll ask if they have any sort of abandoned carts [with] items in them people decided not to purchase.”

13. Stick to Your List and Budget

Lastly, remember to stick to the list and budget you created. You’re bound to see deals that sound appealing, but if you didn’t need it at full price, you probably don’t need it at a discount, either.

“The biggest mistake that people make is just getting caught up in the excitement of Black Friday and buying things that they don’t need,” says Lehmann of Brad’s Deals.

One TPH bonus tip: Don’t stress if you miss a deal or completely sleep through all the Black Friday madness.

“If you can’t get the product, be patient; there are still great deals all the way through the holiday season,” says Melissa Martin of BlackFriday.com. After all, it’s almost Cyber Monday!

“We see it time and time again, people getting in a frenzy and forgetting what it’s all about,” she explains.

Don’t let that be you. The most important thing is to remember the holiday season is about so much more than new TVs and killer bargains.  

Your Turn: How do you prepare for Black Friday? Any insider tips we missed?

Disclosure: Some of the links in this post are affiliate links. We would have shared them with you anyway, but a true “penny hoarder” would be a fool not to take the company’s money.

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

The post 13 Black Friday Insider Tips: When, Where and How to Find the Best Deals appeared first on The Penny Hoarder.

source The Penny Hoarder http://ift.tt/1L4mnrS