By Dawn Berryman Many industries and fields have their own jargon. Marketing is no different. To a new business owner, the terms can be somewhat overwhelming. Throw in acronyms, and it becomes even more difficult to decipher what’s being said. Even to a seasoned business owner, some online terms may seem foreign. Below is a […]
The post 20 Common Marketing Acronyms You Need to Know appeared first on The Work at Home Woman.
Auto sales in the U.S. are in a freefall, and industry experts can’t seem to pinpoint exactly why.
No matter what the reason, one thing is clear: the auto industry’s loss is our gain.
There could be several reasons car sales are dropping.
Some say it’s because car prices are too high. Others blame it on subprime auto loans.
Some industry experts theorize that dealerships backed themselves into this corner. They say so many people took advantage of great dealer incentives over the last two years that there aren’t many interested buyers left.
It’s also possible that because gas prices are cheap and the labor market is strong, people simply aren’t replacing their cars as often as they used to because they’re built better than they once were.
“Vehicles made in the past 15 to 20 years are vastly more reliable than their predecessors,” suggests Bloomberg’s Kyle Stock. “The U.S. auto industry is in a pickle, in part, because it did too good of a job.”
On the other hand, Jalopnik’s Raphael Orlove says people place too much stock on the idea that today’s cars are manufactured to a higher standard and are therefore more dependable.
“What we really need to think of isn’t the car itself, but the owners. Reliability is a myth. Who owns a car and how it is maintained is what keeps cars alive,” says Orlove.
In other words, we’re taking better care of our stuff so we don’t have to replace it as often.
Let’s also not forget to consider:
We could speculate all day why auto sales are declining but, in the end, here’s what really matters.
“Companies like Ford and GM have many levers to pull to avoid a disaster — namely, a mix of lowering production and raising incentives to lure drivers back to the dealership,” says Stock.
In an effort to prop up the bottom line, dealers are offering deep discounts to lure car shoppers — in some cases, as much as 10 percent off the sticker price.
Used car prices could drop as much as 50 percent. (If you decide to check out pre-owned vehicles, start with sedans and subcompacts.)
Whether you decide to shop at a dealership or an auction, check out these five tips to save even more money on your next set of wheels.
Lisa McGreevy is a staff writer at The Penny Hoarder. She loves helping readers save a buck or three so look her up on Twitter @lisah if you have a hot tip to share.
This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.
Add anything Disney to the list of apps that are most likely spying on you.
While you may not enjoy playing Elsa or Olaf on your iPad, your kids probably do — and a new class-action lawsuit claims Disney is hijacking their information as a result.
Do you know if your children are being safe while they play online?
On Aug. 3, Amanda Rushing filed a complaint against Disney and its marketing counterparts on behalf of her child. The lawsuit claims Disney is violating the privacy of children who use Disney apps on smartphones and tablets.
The lawsuit states that Disney and three of the software companies that develop its apps have collected personal information from children, some of whom are under 13, while they interact with the programs. This collection of information violates the Children’s Online Privacy Protection Act (COPPA), the lawsuit alleges.
The software embedded in the apps is allegedly used for advertising purposes, and the lawsuit says the data collected could contain identifying information. It also alleges the apps violate COPPA by not having disclaimers outlining how they use the collected information or requiring parental consent before data collection begins.
The lawsuit, which aims to represent users in 35 states, includes 42 apps. You can see a full list of the affected apps on page 17 of the lawsuit.
This isn’t the first time Disney has faced legal backlash for alleged COPPA violations. In 2011, the company paid $3 million after the Federal Trade Commission found that one of its subsidiaries registered 1.2 million users for online games, most of whom were children.
The lawsuit asks for the amount of damages to be determined in a trial.
Disney denies the allegations of any wrongdoing, saying it has a “robust COPPA compliance program” in a statement on Monday.
“We maintain strict data collection and use policies for Disney apps created for children and families,” the statement, as reported by The Washington Post, read. “The complaint is based on a fundamental misunderstanding of COPPA principles, and we look forward to defending this action in Court.”
Kelly Smith is a junior writer and engagement specialist at The Penny Hoarder. Catch her on Twitter at @keywordkelly.
This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.
Let’s say you’re in the checkout line at the grocery store picking up a few items for the week. Your total comes to $25, but you only have $10 in your checking account.
It might feel a little embarrassing to put some items back or insert your card and have the store decline it. That’s the moment when overdraft protection can lend a helping hand.
According to the Consumer Financial Protection Bureau, while that protection could save you a little embarrassment, it costs you big bucks. On average, people who overdraft their accounts often — more than 10 times each year — waste an extra $450 every year in bank fees when they sign up for overdraft protection in comparison to overdrafters who don’t.
And those people likely can’t afford it.
A recent CFPB study found that “most of these frequent overdrafters are financially vulnerable, with lower daily balances and credit scores than people who do not overdraft as often.”
Now the CFPB wants banks to make it clearer just how much in fees you could owe if you use overdraft protection.
The CFPB created four prototype forms banks could use to replace their current fee disclosure forms. The new CFPB forms highlight the fees, and make it clearer to consumers when they will incur fees and how much those fees will cost.
The CFPB’s forms include the calculation from the grocery store example above.
In the example, the CFPB lays out two options. If you opt out of overdraft protection, the store will decline your card, and you won’t incur any fees. Your pride might be slightly bruised, but you will still have the $10 you started with.
For those who choose overdraft protection, the form lays out what will happen next. The $25 charge will be approved at the register. This will drain the $10 you had in the bank and put you in the hole to cover the $15 balance of your purchase, plus a $34 overdraft fee.
That means you get to take your groceries home now, but you will owe $49 to your bank.
And if you don’t realize you’re overdrawn right away, your card could get approved up to six times in a day before it is declined. That would mean $204 in fees plus the cost of the items you bought.
Finally, the example also makes it clear that if you can’t pay the balance in full within five days, the bank will charge you $5 every five business days until you pay it off.
“Our study shows that financially vulnerable consumers who opt in to overdraft risk incurring a rash of fees when using their debit card or an ATM,” said CFPB Director Richard Cordray in a statement. “Our new Know Before You Owe overdraft disclosure prototypes are designed to help consumers better understand the consequences of the opt-in decision.”
While the CFPB isn’t overtly telling people to opt out of this protection, it does want you to know what you’re getting into if you use it.
Currently, 18% of the banking population pays 91% of the overdraft fees to banks every year, helping them rake in an extra $11 billion in fees. But you don’t have to be one of those people.
We’ve got some ways you can protect yourself and keep your budget intact.
First, opt out of overdraft protection, and turn off your automatic bill pay feature. It might be a bit embarrassing to get your card declined unexpectedly, but it’s better than the financial pain of paying outrageous fees that can add up quickly.
Paying your bills manually also gives you control over when they come out of your bank account.
From there, start an emergency fund. Putting away just $10 each week will give you $520 over the course of a year. You can dip into this fund when unexpected expenses come up.
Finally, use online banking apps and text notifications so you always know your balance.
Signing up to get a daily text alert from your bank will ensure you always know exactly how much money you have. You can also set limits and receive notifications when your bank balance drops below a certain threshold or check your balance throughout the day using your bank’s app.
This will ensure a low balance never surprises you and a store never declines your card for insufficient funds if you opt out of overdraft protection.
Desiree Stennett (@desi_stennett) is a staff writer at The Penny Hoarder.
This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.
Well, when you need one. But if you’re looking for an upgrade instead of an immediate replacement, it pays to plan your purchase.
A new analysis from Consumer Reports proves what most of us have suspected for some time: It’s worth shopping the Black Friday sales.
Consumer Reports and market research company Gap Intelligence conducted a yearlong analysis of prices for four key product types: ranges, refrigerators, dishwashers and televisions.
Comparison shoppers will love how the Consumer Reports charts track prices over 12 months — and will take note of occasional price dips outside of the “just go shop on Black Friday” lesson.
“Sometimes the big-picture data can hide some counterintuitive buying advice. Average TV prices peak as new products launch starting at the end of February, but that’s also one of the best times to get a great deal on the previous year’s hot sets,” the report explained.
Here’s the takeaway from each of Consumer Reports’ categories:
Ranges: Prices saw their first big dip around July Fourth and saw several deeper cuts around each shopping holiday, including Labor Day, Black Friday and Cyber Monday. More expensive models saw greater discounts.
Refrigerators: The lowest prices came during Black Friday sales, but Consumer Reports also noted dips on certain models around July Fourth and Labor Day. The diversity in models and price trends indicates “plenty of opportunity for an attentive shopper to save money,” Consumer Reports noted.
Dishwashers: Again, Black Friday sales are the winner if you’re looking for a new machine.
TVs: Prices drop in November during Black Friday promotions. There’s also a dip ahead of the Super Bowl and into March, which is when new sets come out and prices drop significantly on the previous year’s models.
Remember, bargain hunters, there are only 108 days until Black Friday.
Lisa Rowan is a writer and producer at The Penny Hoarder.
This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.
It seems like every year a new type of individual savings account (Isa) is launched. But, while plenty has been written in the wider media about Help to Buy Isas and Lifetime Isas, Innovative Finance Isas (IF Isas) have been largely overlooked, partly because few companies have offered them until now.
A recent survey by Crowdstacker found that more than half of us have no idea what an IF Isa is. Despite this, a lot of money is being invested in IF Isas by savers who understand that by taking on a little more risk they can massively increase their returns.
IF Isas were launched in April 2016 and allow you to invest up to £20,000 a year into peer-to-peer lending via a tax-free Isa wrapper. Peer-to-peer lending allows savers to lend their money out to individuals or companies to earn a higher return than they could get if they put their cash in a standard savings account or cash Isa. You get a bigger return on your savings but run the risk of the loan you make not being paid back.
With returns of up to 14%, millions of pounds have poured into peer-to-peer since it first appeared in the UK back in 2005. IF Isas are proving equally popular with providers reporting that the number of accounts being opened has far exceeded their expectations. When it launched its IF Isa in February 2017, Lending Works reported that £1.5m was invested in just 24 hours.
“Peer-to-peer investing sits nicely on the risk curve between lower risk savings products and higher risk equity investments, providing investors with greater choice when building an investment portfolio,” explains Mike Allen director of operations at LendingCrowd.
That is why he believes IF Isas are proving popular. “The fact that these investments can now be wrapped in a tax-free earnings product only further improves returns and legitimises the sector as a valid alternative investment strategy,” he says.
“LendingCrowd is seeing Isa transfers from both Cash Isa investors looking to move up the risk curve for higher potential return and from Stocks and Shares Isas investors seeking to diversify and potentially reduce the volatility of their returns.”
“With £17.8m having been put into Lending Works Isas so far, this now makes up roughly 50% of our consumer lenders’ portfolios,” says Nick Harding, CEO of Lending Works, which won best P2P lender for savers category at the Moneywise Customer Service Awards 2017. “We have almost 1,479 active Isa customers, which again equates to roughly half our total number of lenders.”
Mr Harding also points out that a large amount of the Isa money flowing into Lending Works is coming from other types of Isas.
“Roughly 60% of all Isa capital lent through our platform has come from customers transferring Isas from other providers to Lending Works. It pleases us to see transfer after transfer coming from banks and investment platforms that are quite simply not providing Isa customers with what they want – a fair return on their money.”
According to Crowdstacker, 4% of all potential Isa money is expected to be invested in IF Isas in the 2017/18 tax year. With around £80bn invested into Isas each year that means roughly £3.2bn is expected to be paid into IF Isas this year.
“Customer interest in IFIsas is small but growing,” says Kris Koik, managing director of peer-to-peer lender, and IFIsa provider, Flender. “The UK government and P2P lending industry could both do a better job of making people aware of the opportunity that IFIsas offer.”
The people who are investing in IFIsas are also putting more in on average than is paid into traditional cash Isas. Crowdstacker’s statistics show that the average annual investment in an IF Isa is £7,013 compared to £5,810 for a cash Isa.
The amount being paid into IF Isas is likely to increase substantially this year as the big players finally launch their tax-free accounts. There has been a drag on the success of IF Isas because so few providers have offered them. At present, there are fewer than 40 IF Isas on the market – compared to more than 350 Cash Isas.
This is because to offer IF Isas peer-to-peer lenders must have regulatory approval from the Financial Conduct Authority (FCA), and getting that paperwork in place has meant big delays.
“Regulatory hurdles aside, the IF Isas are relatively complicated for P2P platforms to deliver,” says Mr Allan. “It requires technical and operational change to calculate and record Isa subscriptions, to manage Isa transfers, to set up HMRC reports and to have processes in place to deal with HMRC.”
It has been the smaller firms that have managed to get regulatory approval first and adapt their systems to offer IF Isas. This means it is relatively unknown names offering IF Isas at present, which could put off some potential investors.
A recent survey by peer-to-peer firm Flender found half of people wanting to invest in an IF Isa were waiting for bigger firms to launch accounts. That is now starting to happen with bigger names such as Lending Crowd, Lending Works and Zopa all launching IF Isas this year.
“We’ve seen a high level of interest from investors since launching our IF Isa in June this year,” says a spokesperson for Zopa, which won Most Trusted P2P Provider at the Moneywise Customer Service Awards 2017.
Just remember, FCA approval doesn’t mean your money is safe – peer-to-peer lending still isn’t covered by the Financial Services Compensation Scheme.
Smaller firms led the charge in offering IF Isas, with Landbay, Abundance, Crowd2Fund and Crowdstacker amongst the first to launch the tax-free accounts.
But the number of peer-to-peer lenders offering IF Isas is steadily growing and, finally, one of the biggest firms – Zopa – has launched a tax-free account. However, Zopa is limiting its IF Isa to existing customers for the moment.
When you are looking for an IF Isa read the small print carefully. Some providers only allow you to invest your full Isa allowance – that’s £20,000 this year. Here are four of the better-known firms that offer IF Isas.
A couple of days ago, I decided to simply go through my day and make a list of everything that I did that was “frugal.” By “frugal,” I simply mean that it’s a more inexpensive version of something that I used to do. Whenever I noticed myself doing something “frugal,” I wrote it down in my pocket notebook. I’m sure that I missed lots of little things.
By the end of the day, I counted twenty two distinct “frugal” choices that I made. I thought I’d share that list with you so you can get an idea of how a typical person uses frugality to lower the cost of ordinary life while still enjoying a very nice lifestyle, and perhaps get some money-saving “everyday living” strategies along the way.
Let’s dig in!
I made scrambled eggs and toast for breakfast for my family of five. I did this early in the morning. I simply cracked a dozen eggs together into a bowl, added a bit of salt, beat them thoroughly, and let them sit for fifteen minutes while I went out back and cut some chives to mince into the eggs. I heated a skillet, added just a bit of butter and melted it, then added the eggs and scrambled them. I cooked a few pieces of toast along with it and everyone had an easy breakfast together. The total cost was about 50 cents per person, as we went through about six pieces of toast, a little bit of butter, and a dozen eggs. That’s a pretty cheap breakfast, and a pretty tasty one, too. Make simple, tasty meals at home from basic ingredients.
I turned the leftover eggs and a tortilla into a breakfast burrito for the next morning, stored in a container in the fridge. There were about two heaping tablespoons of eggs left over from the scrambled eggs, so rather than tossing them, I looked in the cupboard and found a tortilla. I tossed in a bit of shredded cheese, spooned the eggs onto the tortilla, and wrapped it up. That tortilla will make for a quick breakfast for someone in the next day or two. Save leftovers, and find ways to remix them.
I watched our neighbor’s children for an hour or so; later that day, my own children went to the neighbors for an hour while I ran errands. Our neighbor needed to run some errands, so she sent her children over to our house for a couple of hours while she did her thing. Our children played together in the basement while I took care of a few tasks around the house. Later in the day, I’ll send our children over there so I can take care of a few errands. The total cost of all of that child care is nothing. Share child care duties with friends so that you all save money.
I turned off the air conditioning and opened the windows when I learned that the forecasted high was just below 80 F. The weather outside was within fifteen degrees of our ideal indoor temperature, so the energy saving solution here is to simply turn off the indoor climate control and open the windows to allow our home to adjust to the natural climate. We typically do this when the outdoor temperature is between about 55 and 85 or so, give or take a few degrees due to variations in humidity and our activity levels. Within that outdoor temperature range, there’s really no reason to spend the money running the air conditioning or furnace, especially at daytime costs. Don’t run the air conditioning or the furnace on a nice day.
I cleaned up a pretty big spill in the kitchen with several reusable cloths. Most of a gallon of milk spilled across the dinner table. I was on it like a flash, but not with paper towels; instead, I grabbed some cheap microfiber rags from our rag drawer to mop all of it up. I wrung these out in the sink and tossed them into the laundry to reuse later. It doesn’t take many washings for the cost of such a rag to get lower than the cost of a few paper towels. Don’t use paper towels when rags will do the trick just fine.
I listened to several podcasts while doing housework. Podcasts have become my preferred form of audio entertainment. I subscribe to a couple dozen podcasts and I listen to them when I’m doing things like housework tasks or driving to and from errands. It took me a long time to find a healthy roster of shows that I enjoy; many of them are actually just rebroadcasts of NPR and American Public Media programs such as On Being with Krista Tippett. Here’s my earlier introduction to podcasts, for those interested. Find quality free entertainment so you can be more selective in terms of what you actually pay for.
I made a lunch entirely of leftovers from the previous day’s meals. When lunchtime came around, I simply looked in the fridge for leftovers before doing anything else and I found enough leftovers to cover everyone in the family for lunch. We had leftover pizza slices, leftover grilled potato slices, and leftover bean burritos. Everyone simply made a plate from the offerings that I sat out on the counter. It was incredibly easy and incredibly cheap. Leftovers make for a practically free meal.
While doing laundry, I used a spoonful of homemade laundry soap. I use a really simple mix for my own homemade laundry soap. I simply have a big sealed container in the laundry room with equal amounts borax, washing soda, and soap flakes in there. When it runs low, I just add a cup of each to the container and shake it. When I need to do a load of laundry, I add a tablespoon of the mix to the washer – I just leave the spoon right in the container. It takes about thirty seconds to add to a batch of soap and I only need to do it every fifty loads or so. The best part is that this powdered laundry soap is about 10% of the cost of Tide or other name brands – it costs me between two and three cents per load, whereas they cost twenty to thirty cents per load. Over the course of a year, that adds up to a lot. Homemade laundry soap is simple to make and incredibly cheap to use.
I hung up most of a load of laundry to dry in our laundry room. Rather than running the dryer for a small load, I simply hung up most of the items on a line stretching across the laundry room. If I don’t need the items very soon, allowing them to dry on a line will save a dryer load, which not only reduces electricity usage directly, but also doesn’t add any heat to the house on a summer day. Hang up some of your laundry so you can give your dryer a break and save on electricity and cooling, too.
I read a library book. In the early afternoon, I spent an hour or so reading a book I checked out from the library. The direct cost of that book for me was nothing at all, yet it provided an hour of thoughtful entertainment (paired with several hours on earlier days and a few more hours on later days). Libraries have an abundance of free resources for people to borrow, from books of all kinds to audiobooks, DVDs, CDs, magazines, and sometimes many other offerings depending on the programs of the local library. It’s worth your while to check out your local library. Library books are a spectacular free form of entertainment.
I took a nap. I felt a little tired and I knew that I’d be going to the store later, so I took a nap for an hour or so. The reason is simple: a rested mind is better able to make good buying decisions. If you go shopping when you’re tired (or hungry), you’re more likely to buy things you don’t need. Taking a nap before you’re going to make spending decisions is almost always a good choice. A rested mind makes better financial decisions.
I made a meal plan that tapped a bunch of items we already had in the cupboard. After I woke up, I wrote up a meal plan for the coming week. While doing so, I looked extensively at the items we had on hand already, as well as the grocery store flyer. My goal was to use lots of items already on hand, so the meal plan ended up being largely based on what was already in the pantry along with a few fresh items from our garden and from the produce section at the grocery store. Using up items you have on hand means they won’t go bad and it means that your grocery bill will be lower this week.
I made a grocery list from that meal plan. Once the meal plan was set, I wrote down a grocery list consisting of all of the additional items we needed to pull off that meal plan. Mostly, it revolved around fresh vegetables and a few fruits, so the list happened to be pretty short. Making the list straight from the meal plan ensured that I was only writing down things we needed for our planned meals and not a lot of extra stuff. Having the actual list in the store gives me something to focus on so that I’m not buying extra things that aren’t on the list. My list is efficient, and I’m efficient in the store – both save me money. Making and using a grocery list keeps you from buying unnecessary items at the grocery store.
I rode my bicycle to the grocery store and to the post office for errands. After I had my grocery list in hand, I grabbed my backpack and hopped on my bicycle for a two mile ride that took me to the post office to mail a package and to the grocery store to pick up the items on the list (which easily fit in my backpack). Doing this provided some nice exercise while also getting the errands completed without firing up our car, using gas, and putting miles on it. Riding your bike for nearby errands saves gas and wear on your car while also providing free exercise.
I traded for a board game rather than buying it. One of the packages I mailed was a board game, which cost just a few dollars to mail. This was done to fulfill a trade by mail with another board game player. He had a game I wanted and I had a game he wanted that I didn’t think I would play again, so we organized a trade. This effectively brought a new game I was excited to play into my possession for just a few dollars while also getting rid of a game I was doubtful I would play again. Bartering and trading is a great way to refresh your hobby collection at a very low price. Trade and barter items rather than buying them.
I poured the remaining ounce or two of a bottle of liquid soap into the new bottle. Whenever I finish a bottle of soap, I turn it upside down and leave it in the bathroom closet for several days while the new one is being used. Once the new bottle has been emptied a little (and I happen to notice it), I’ll pour the contents of the old bottle into the new one (since it’s been upside down for several days, I can usually get a surprising amount out of it). This helps to stretch out the use of liquid soap and it takes only a few seconds to do it – you just take the lid off of both containers and pour the remnants of the mostly empty one into the other one. Easy as can be! Don’t throw away the last little bit in a container; pass it forward instead.
I made an amazing potato salad using preserved lemons I made myself, six leftover potatoes, and a bit of mayonnaise and mustard and salt. About a month ago, I made a batch of preserved lemons when lemons were on sale at the store. It was easy – I just coated several quartered lemons in salt, let them sit in the fridge overnight, then pushed them tightly into a jar. Now, when I want to add a great flavor to a marinade or to a potato salad, I just take a couple of preserved lemon quarters, chop them finely, and mix them right in. By using those lemons, chives from our garden, a few potatoes on hand, and some condiments, I made a killer potato salad for very little cost that served as a side dish for dinner and will serve as a side for meals going forward. Making simple foodstuffs and even ingredients can save money and vastly increase your meal variety.
I grilled hamburgers and veggie burgers purchased on sale and frozen until ready to use. The main course of our dinner was cooked on the grill and it consisted of hamburgers and veggie burgers made earlier and frozen, pulled from the freezer for a final grilling. The beef and beans were purchased at the store when they were on sale; the patties were stored in freezer bags and separated by wax paper for easy separation. Thus, the burgers were very inexpensive because they were originally heavily discounted and saved by us until we were ready to eat. Stock up on sale items that you’re sure to use later.
I played checkers with my son using an old checkers set. After dinner, my son and I played a game of checkers using an old inexpensive checkers set picked up for a few bucks at some point in the past. We played a few games, so it provided most of an hour of entertainment and thinking and conversation for the two of us. Games are a great way to pass the time and use some parts of your brain that you might not always exercise. Find entertainment in what you have on hand already.
I made a small campfire using broken wood pieces from another project. We have a fire pit in our back yard. Whenever I find some scrap wood from almost anything that isn’t pre-treated wood, I’ll save it with the intent of using it in our fire pit for a backyard campfire on a nice summer or fall evening. This night was no different – the fire mostly consisted of extra broken boards from our children’s taekwondo classes along with some discarded wood I found several days earlier. Don’t throw away items that have a clear use later on.
I used junk mail to get that campfire going. Rather than using purchased fire starters or even my own homemade ones, I actually just used some junk mail to get the fire going. We had some junk mail that had accumulated over several days which I separated out when sorting the mail and held onto because I knew we would have a campfire that evening. Junk mail – especially newspapers and flyers – catches fire easily and burns hot enough to get small pieces of wood burning, which is all you really need for a backyard fire pit. Junk mail is great for kindling.
I turned off a bunch of lights and electronic devices before bed during a final walkthrough of the house. Just before bed, I walked through the house and turned off any electronic devices and lights that I found still running. The family computer was turned off. A handheld video game console was turned off. At least a dozen lights were turned off. All of those moves save us on electricity usage during the nighttime hours, which cuts down on our energy bill. Turning off unused energy eaters saves money on your energy bill.
What’s the point of this story? The point is that frugality isn’t something “special” that you do; instead, it integrates naturally into your life so that you spend less money in the course of doing the normal things you’d normally do. Frugality isn’t about devoting hours to scrubbing Ziploc bags for a second use or diving into dumpsters for moldy bread. It’s about finding more cost-efficient ways of doing the things you’re already doing and integrating them into your normal day-to-day life so that you have more money left over at the end of the month. If trying to be “frugal” is causing you frustration and angst, you’re going about it the wrong way – let go of the things that are causing negative feelings and instead find new ways to just do the things you normally do, except with less spending.
Good luck!
The post 22 Frugal Things I Did Today appeared first on The Simple Dollar.
Moneywise’s Helen Knapman meets Rory Powe, fund manager of a new addition to the Moneywise First 50 Funds list, the Man GLG Continental European Growth fund.
It focuses on continental Europe, so it’s not a pan-European fund. This means it excludes the UK, although it can invest up to 5% in UK companies.
We run a reasonably concentrated portfolio of between 30 and 40 equities [shares in companies]. The fund is a stockpicking fund, it’s success depends on stock selection. We stick our neck out compared with the benchmark – our active share (the amount that doesn’t overlap with the benchmark index) is 95%.
We also take a long-term approach – a three-year view – on the firms we invest in. Our aim is to deliver returns of at least 10% annualised on a three-year rolling basis.
We want to invest in Europe’s strongest companies, so one key feature we look for is a strong market position that is sustainable for many years. Moreover, this competitive advantage needs to be widening.
We also look at whether a company has sustainable prospects for economic expansion, and we prefer firms whose fortunes aren’t reliant on factors such as the price of natural resources or interest rates.
We probably replace one third of the portfolio each year. Portfolio turnover was 72% last year. I’d prefer it to be lower – the dream would be 0% turnover, as then you have a portfolio you’re extremely happy with. But we make mistakes. We get stocks wrong, and then we need to get rid of them.
Also I don’t think I’m capable of knowing more than about 40 companies properly (today we have 37 positions). For me, conviction is the holy grail, and if I don’t know companies well enough, I’m more likely to wobble in the face of share price weakness. I don’t want to invest in firms I don’t understand.
Ferrari is quite a big new position, as is Gestamp [a manufacturer of car parts] and Vitrolife [IVF products].
Ferrari was offered to the public for the first time in 2016. Its share price was quite volatile, but we were extremely impressed by the efficiency of its production when we visited the company earlier this year. Ferrari is one of the most powerful brands in the world, it has a market share of more than 25% and we think there is enough headroom to double production in a few years.
We’ve reduced our holdings in Geberit [toilets], Essilor [lenses for glasses and contact lenses] and Assa Abloy [security solutions], all of which have been among our top 10 holdings. They’ve all performed well, but their room to grow has lessened significantly.
We sold out of Intrum Justitia [credit management services]. It did well, but the share price was overcooked because of a proposed takeover of Lindorff [a debt collection firm], which has now gone through.
Novo Nordisk. It’s the world leader in providing insulin for people with type 1 diabetes and serves a market that’s sadly growing. It has an outstanding track record and is one of Europe’s best companies. But we underestimated how difficult pricing would become in the key US market. The share price was weak as a result. We sold half our holding in August 2016 and the rest in autumn 2016.
Ryanair. Its share price in 2014 was about €¤7 (£6); it’s now about ¤18. The firm has a 15% market share of European short-haul flights. Excluding fuel, its cost per passenger is less than ¤27, while the figure for Wizz Air, which has the second-lowest cost, is about €¤40. The average age of the planes in Ryanair’s fleet is six years, so maintenance costs are low. A seat occupancy level of 94% and fast turnaround of planes also keeps costs down.
Compared with 12 months ago, Europe is in much better shape. Right-wing parties did badly in recent elections in the Netherlands and in France, Emmanuel Macron is intent on reforming France’s labour markets and we think Angela Merkel will win out in September’s election in Germany. The European economy is recovering, and the European Central Bank has forecast eurozone growth of 1.91% in 2017.
Don’t take tips, particularly stock tips. If you want to invest in single stocks, do your research and take a long-term approach, as the rewards from equity investing principally come from compounding.
Otherwise, invest in funds run by a manager with a good track record and a disciplined approach.
Visit Moneywise’s First 50 Funds for beginners.
Key stats
Launched: 1998
Fund size: £693 million
Ongoing charges: 0.9% (professional share class)
Source: Man GLG fund factsheet, 31 May 2017
Rory Powe has managed the Man GLG Continental European Growth fund since July 2014. He also manages the Man GLG
Pan-European Equity Growth fund.
Prior to this, he founded Powe Capital Management (PCM) in 2001 and for 12 years managed its European funds. Before founding PCM Rory was a global partner at Invesco and ran its flagship continental European strategy for 10 years.
He graduated from Trinity College, Oxford University, in 1985 with a BA (Hons) in modern history.
Let me make this clear: I am a frugal person. I save vegetable scraps to make broth, and soap scraps to turn into lumpy new Frankencleanser bars. Of 1,095 annual meals, probably 1,085 are made at home, from scratch. I can (and do!) go several years without purchasing any clothing except an annual new-to-me pair of jeans from the thrift store.
Why, then, did I drop $40 on Powerade and overpriced over-the-counter medications at a hotel gift shop? Because sometimes it’s worth it to pay more—but that doesn’t mean it was easy.
Backstory: I was speaking at a conference in San Diego, having driven in from Phoenix with my daughter, fellow personal finance writer Abigail Perry. She started feeling sick almost as soon as we arrived. That first day I drove to a drugstore for juice and OTC meds, getting lost (and ragey) in San Diego rush-hour traffic.
But as Abby grew sicker, I couldn’t leave her for long. So down to the hotel gift shop I ran—and ran, and ran—hoping to find the One True Med that might help. My frugal alarm blared each time I shopped: Seriously? Three bucks for a Tums roll shorter than a preschooler’s fingers?
To stay calm, I would chant this mantra: You have an emergency fund. This is an emergency. QED.
I would have done anything to make my daughter feel better. Yet I have to say that paying inflated prices rankled.
That’s the painful truth about your emergency fund: While you should be glad you have the money, you’re not.
That’s because the need to tap your EF means something bad (or really upsetting) just happened: Maybe you’re in shock due to job loss, or infuriated that some nimrod sideswiped your parked car and kept going. Watching your cash cushion deflate just adds insult to injury.
Saving that fund took time, patience, and, yeah, sacrifice. Now it was all leaking away, one $7.39 box (a really small box) of Gas-X at a time.
Maybe that’s why some people avoid saving for emergencies in the first place. Nixing a couple of lattes or a movie ticket each week means they might have to consider the unpleasant stuff that could happen to them. Much more fun to think “YOLO” instead of “uh-oh.”
Who wants to consider that some day—maybe as soon as tomorrow—you could find yourself in deep financial poop? Especially since those painstakingly saved dollars could vanish faster than you can say “deductible.”
Emergencies happen, and as a nation we’re not saving for them—which I consider an emergency, too. According to the Federal Reserve, 47% of U.S. residents would be unable to cover an unexpected $400 expense without borrowing money or selling something.
It took me quite a while to set aside my rainy day fund. Now here I was, paying for Powerade that cost 10 times more than gasoline ($23.92 per gallon—I did the math in the elevator) and having to anticipate an indefinite stay in a strange city.
Did any of that really matter? Not once my daughter was hospitalized with a terrifying diagnosis: Sepsis, which can be fatal. All I wanted was for her to get well—and having that financial cushion meant I could be by her bedside with (relative) peace of mind, instead of saying, “Gotta go. Hope you feel better!”
Those pricier-than-petrol Powerades looked pretty cheap compared to what I shelled out for four extra days in San Diego, costs including but not limited to lodging, rental car, hospital parking, and my rebooked flight. All told, I spent about $1,000 more than I’d planned on the trip even though I did what I could to minimize costs. (Did I mention shopping for sandwich makings at a nearby supermarket? Or finding and booking a 67%-cheaper hotel room through the Mr. Rebates cash-back shopping site and earning a $6.57 refund in the process?)
Sometimes you just have to suck it up and pay it out. I’m a freelance writer, so that extra grand did hurt. But it would have hurt a lot more had Abby’s illness popped up when I was cash-cushionless.
An emergency fund isn’t meant to be adored like a golden calf. It exists to take care of things when your normal income can’t.
Had unexpected expenses of your own? Sorry for your troubles. Now: Start stuffing whatever money you have into that cushion. Even if your budget is tight, a little creativity could help you shave off a few dollars here and there to be banked against future areyoukiddingme? moments.
Even a small emergency fund will make a difference. While it may not cover every unexpected expense, even a modest emergency fund at least cuts down on the amount you’ll have to borrow or finance.
Then, be prepared: After a crisis, the sacrifices you have to make to rebuild that fund might feel painful. But having the money will feel like a blessing the next time life plants a surprise in your path.
That said, when you travel you should probably bring your own Tums.
Veteran personal finance writer Donna Freedman is the author of “Your Playbook for Tough Times: Living Large on Small Change, for the Short Term or the Long Haul” and “Your Playbook for Tough Times, Vol. 2: Needs AND Wants Edition.”
The post The Painful Truth About Your Emergency Fund appeared first on The Simple Dollar.
For many people, going to college is expensive, and tuition is just one reason why.
College costs also include room and board, a meal plan and textbooks. Anything extra is a perk.
When I was a in college, I was lucky enough that my parents paid for all the necessities. However, I knew I would have to get a job and save money if I wanted to pay for any additional expenses outside of the “typical college experience.”
I recently graduated with a double major, and I did it without sinking into any major money pits. These eight tricks — all of which I learned early in my college career — helped me.
On-campus clubs often spend the first few weeks of the fall semester recruiting students. While meeting new people is a perk on its own, the promise of free snacks always helps get people in the door.
Be on the lookout for flyers around campus, as this is how many organizations spread the word about meetings. Clubs hold their meetings on different days of the week, so in theory, you could plan an entire week of meals based around those meetings.
Once you see the pizza, go for it. Organizations don’t often plan to feed 100 people during their first meeting. When the pizza is gone, you’ve missed your chance.
The dollar menu is readily available at dining establishments such as McDonald’s, Wendy’s, Burger King and Sonic Drive-In. These will be your friends when you need emergency late-night meals after coming home from a party cramming for an exam.
While spending $2 on a burger and fries on occasion won’t kill your budget, if you’re ordering food on Ubereats every day after your 7 p.m. class because it’s more “convenient” than going to the dining hall that’s a five-minute walk away, your bank account will likely not thank you by the end of the month.
Although an unlimited amount of food sounds great when you’re a starving college student in need of an ice cream fix, you may be overpaying for the amount of food you’re actually consuming.
If you eat four meals a day and can get endless coffee refills, the unlimited plan might be a great way to save money. However, if you don’t eat breakfast and you fix yourself a PB&J for lunch every day in the cafeteria, you can save a lot of money by getting a small meal plan and making food at home.
Knowing your eating habits can help you find the best value when it comes to meal plans.
Eating out is expensive. Save money by DIYing your meals.
I’m not saying you have to meal plan every week while in the dorms, but it’s a great idea to have some staples on hand in case you’re running late or you need a snack after the dining areas shut down for the night.
Some of these staples can include granola bars to eat while walking to class, a piece of fresh fruit before hitting the gym or even a PB&J while studying in the library.
I know Starbucks is on your campus a la carte plan, but once the free cash runs out, you may face withdrawal from your iced coffee habit — and you may end up spending your hard-earned cash on that addiction luxury.
That one “treat yourself” drink can suck up your cash faster than you can place your order. Save yourself some time and money and just make your coffee at home.
You can even buy syrups and flavors of coffee in bulk from your local Walmart, Costco or some Starbucks locations.
Dorms are not meant to be Pinterest-perfect rooms with floor-to-ceiling windows and draped canopies over beds. Dorms are places to eat, sleep and study as you try to to pass that 8 a.m. personal finance class.
The majority of the decorations and storage you purchase for your dorm will either be donated or tossed in the next couple of years. Spending a ton of money on a twin-XL comforter is not cost effective when twin-XL beds only exist in dorms.
Additionally, college decorations have a habit of disappearing every time you pack up for the year. Instead, invest in a few decorations like these, which will make your room feel like home without breaking your budget.
While you may initially think you should buy all your textbooks from the bookstore as soon as you get the list, wait until after the first few days of class before you go stand in that massive line outside the campus bookstore.
By postponing your textbook purchase, you’ll find out if you need the latest edition or could get by with an older version, if you can buy a less-expensive version from a book-trading website or if you can just borrow the book from a friend who has already taken the class.
College is a great opportunity to meet new people and try new things, but mix some of those expensive nights out at the Tourist Spot in Nearest Big City with an inexpensive game, crafting, or movie nights on campus or a fun workout in the park.
There are always free events on college campuses, so check the bulletin board and ask your resident assistant.
If you do find yourself with some extra cash to splurge on a fun activity, check Groupon or your town calendar to find the best deals in the area.
Haley Gonzalez (@haleykgonzalez) is an editorial assistant at The Penny Hoarder.
This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.
