STROUDSBURG —If the Pennsylvania Department of Transportation proceeds with its plan to expand Interstate 80 from four to six lanes, dozens of homes and businesses will be lost.The proposed I-80 expansion project calls for additional lanes, new entrance/exit ramps and the removal of 51 businesses and 40 homes to make way for it all, according to information at http://ift.tt/2yaRO6R. PennDOT plans to start acquiring properties in 2019, with construction on the highway [...]
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الاثنين، 23 أكتوبر 2017
Think the Time You Send That Job Application Doesn’t Matter? Think Again
Applying for jobs is fun — said no one ever.
Those who have applied to dozens of positions without any luck can attest to the fact that job searching can be downright miserable.
You spend hours scouring the internet for a position that matches up with your skill set and desires. You craft the perfect resume and cover letter tailored to the specific company. You fill out the online application, which asks you the same exact information you’ve already included in your resume.
And then you send it out and wait.
And wait.
Aaaaaaand wait.
You start to wonder if your application got lost in the sea of others. Honestly, it just may have.
The Early Bird Gets the Worm
TalentWorks recently analyzed over 1,600 job applications that were sent online at random times and found that applying between the hours of 6 a.m and 10 a.m. correlated with the highest chances of getting an interview.
Only a 13% chance… but still the best outlook of the day. Those who applied for jobs before 10 a.m. were nearly five times more likely to score an interview than those who applied in the evening.
Job seekers filling out applications on their lunch breaks may also have a better advantage over nighttime applicants. The data showed the odds of scoring an interview increased slightly around lunchtime — peaking to about 11% around 12:30 p.m. before dropping again.
The worst time to apply for a job was found to be around 7:30 p.m. when the chance for an interview drops under 3%. So much for applying for a new job after getting off from your current 9 to 5.
What to Consider When Up Against the Clock
It’s important to note that the data was based on the employer’s time zone, not the applicant’s. So if you’re on the East Coast applying for gigs on the West Coast, you could apply by 1 p.m. EST and still be in that sweet spot when applications have a better chance of leading to interviews.
The day you apply (relative to when the position was posted) also matters: TalentWorks found applying to jobs two to four days after the opening was posted made applicants up to eight times more likely to land an interview.
Keep those considerations in mind to give your applications an added advantage, ideally ending that soul-crushing job search sooner rather than later.
Nicole Dow 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.
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Hooters Is Saying Thanks to First Responders With Free Food This Saturday
First responders, listen up: Hooters wants to let you know how much it appreciates your everyday heroism.
So, you can head to your favorite location and snag a free meal this weekend — just by showing your ID or arriving in uniform.
Because what better way to say thanks than a steaming plate of Hooters food?
Hooters Is Celebrating National First Responders Day
If you’re an active EMT, firefighter or police officer, you can get free food at Hooters this Saturday, Oct. 28, just by showing your ID or arriving in uniform. No purchase is necessary.
Choose from the following menu options:
- Buffalo chicken salad
- Buffalo chicken sandwich
- Hooters burger
- 10-piece traditional wings (of course)
- 10-piece boneless wings
I’m not nearly cool enough to be a first responder, but if I could take advantage of the deal, I’d obviously go with the wings. Hooters is famous for them for a reason!
The deal is part of Hooters’ support of National First Responders Day, which, shockingly, doesn’t yet exist. You can, however, read more about the movement to create this much-needed celebratory day — and sign the petition.
Meanwhile, grab all of your favorite first responders and head down to Hooters for some free eats. You deserve it!
Remember, this deal may vary by location, so you may want to call your local Hooters before stopping by for your freebie.
Jamie Cattanach (@jamiecattanach) has written for VinePair, SELF, Ms. Magazine, Roads & Kingdoms, The Write Life, Barclaycard’s Travel Blog, Santander Bank’s Prosper and Thrive, and other outlets. Her writing focuses on food, wine, travel and frugality.
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.
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College Students: Amazon Prime is $5.49/Month (Plus How to Save Every Time)
Are you a young person with commitment issues?
Same.
Amazon understands, too. Last week, the online shopping giant announced a new monthly offer for college students: $5.49 a month for Prime Student.
Yes, you’ll still get your first six months of Prime Student for free. That’s always been a thing and hasn’t changed.
But after that, you can opt out of the $49 annual fee and choose to pay $5.49 a month. No more annual commitment or yearly lump fees
Heck, that’s cheaper than Netflix.
To take advantage of Prime Student, you’ll need to attend a two- or four-year college and provide your .edu email address.
(Note: You’ll actually save $16.88 if you just pay the annual fee. But not everyone can afford that, especially students.)
Is Prime Student Worth $5.49 a Month?
If you don’t buy stuff on Amazon, then, no, it’s probably not worth it. But if you’re a big fan of immediate gratification — say, a package appearing at your apartment within 48 hours of clicking “submit order” — then it could be.
Plus, you might even be able to cancel other subscriptions. (Think: Netflix, Spotify, Pandora, etc.)
Let me explain.
Here’s what you’ll get with Prime Student:
- Unlimited free two-day shipping on more than 50 million items. That includes textbooks, electronics — even last-minute Halloween costumes.
- Prime free one-day and same-day shipping options in more than 5,000 cities.
- Prime Video, which includes hits such as “Good Girls Revolt” (a personal favorite), “Boardwalk Empire,” “Girls,” “Downton Abbey” and “Curb Your Enthusiasm.”
- Twitch Prime, which gets you pre-release boxed games and free in-game loot, for example.
- Prime Music, an ad-free service. It’s like Pandora or Spotify.
- Prime Photos, which will probably come in handy when you get that “Storage Almost Full!” alert on your phone. You guessed it: Prime Photos offers unlimited storage for photos.
- Prime Reading, which offers free access to a rotating selection of electronic and audio books and magazines.
- Early-bird “Lightning Deals,” which lets you save money before anyone else.
How to Save Even More on Your Amazon Purchases
Those early-bird deals are great and all, but there are so many ways to save even more money on your Amazon purchases.
In fact, if you know what you’re doing, you could even pay off your monthly subscription fee by earning cash back with Ibotta.
First, download the app. Then search for cash-back offers on Amazon. Right now you can earn 3% back on home and kitchen supplies, 4% back on groceries and 3% back on fashion.
Once you score your first rebate, you’ll get a $10 bonus.
Offers are always changing, and I can tell you it can add up quickly. I started snagging cash-back offers in May, and, to date, I’ve earned almost $85, which would more-than pay for that subscription.
Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. She loves the power her old .edu email address possesses.
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.
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Here’s What You Need to Know Before Applying for Handmade at Amazon
The world’s largest retailer — the one that works their employees to the bone and wants to deliver your purchases by drone — has a section of its site that’s about as far from high-tech as you can get: Handmade at Amazon, an online platform for artisans to sell their handcrafted goods.
“We are focused on genuinely handmade products. … The handmade experience we’ve created is unique with the Amazon feel customers know and love,” says Amazon spokesperson Erik Farleigh.
If you’re an artisan who wants to reach the masses, you’re probably wondering if Handmade at Amazon is worth your time. Who’s eligible? How is it different than Etsy? What’s the application process like?
We talked to three Handmade vendors to get the scoop on the platform:
Can You Sell on Handmade at Amazon?
First, it’s worth figuring out whether you’re even eligible to sell on Handmade.
Your products must be “made entirely by hand, hand-altered, or hand assembled (not from a kit)” and “handmade by you (the artisan), by one of your employees (if your company has 20 or fewer employees), or a member of your collective with less than 100 people,” according to Amazon.
Wondering why this is spelled out so clearly? Perhaps so Handmade can differentiate itself from reigning handicraft empire Etsy, which came under fire for letting vendors outsource their manufacturing.
In addition to being completely handmade, your products also must fall under one of the following categories: jewelry, home products, beauty and personal care, pet supplies, party supplies, stationery, accessories, baby, sporting goods or toys and games.
Tim Strayer owns Locust & Plum, which specializes in industrial decor. He opened his Etsy store in February 2015 and was invited via mass email to join Handmade. In his opinion, the odds of your application being accepted are good.
“I believe, as long as you are selling something that fits within their current handmade categories, they will green light you,” he says. “I’ve heard of several shops not getting in and each time it was because their category was not available yet.”
Amazon’s Farleigh declined to say when Handmade would add new categories, but you can fill out this form to get an alert when your category opens.
What’s the Handmade at Amazon Application Process Like?
The application is fairly straightforward: Besides basic information and multiple choice questions about your production practices, you must describe your production process in detail and provide photos of the products you create.
Once you submit your responses, “Each application is reviewed by a member of our team to ensure that the artisan and their items meet our definition of handmade,” Farleigh says.
All the vendors said the application took less than 30 minutes to complete, but they emphasized the importance of professionalism and quality.
“Take your time on the application; make sure you submit really great product photos,” suggests Courtenay Madsen, a creator of hand-stamped jewelry. “Do it right the first time.”
It took four to six weeks for the vendors to hear back from Handmade after submitting their applications, but that timeframe may be different now that the platform is up and running.
Should You Apply for Handmade at Amazon?
If you already have your own website or Etsy store, is it worth applying for Amazon Handmade?
After all, Handmade’s fees are higher than Etsy’s: It charges a 15% commission and $1 minimum referral fee, while Etsy charges a 20-cent item listing fee and 3.5% commission.
Artisans who sell more than 40 items non-handmade items in different categories will be charged $39.99 per month.
Other issues include limited metrics and analytics for your store.
“There’s no way to see how many people are actually viewing [your] item,” Strayer says. That’s been frustrating for him, since he’s used to Etsy, which “gives you all kinds of information” so you can “tailor your listings.”
He also wishes Handmade products would show up in Amazon’s main search engine.
“You have to specifically select Handmade to even look for [our] stuff,” he says. “If somebody doesn’t know anything about Handmade at Amazon, then they’re not going to even bother looking for [it].”
At this point, though, Strayer is willing to “play it by ear.” He says you might as well get on “as many platforms as possible, just so you can get as many views as you can.” And other vendors seem to agree.
Madsen sold her jewelry on Etsy for three years. A year and a half ago, she closed shop because she was tired of spending nearly $1,000 per month to rank in Etsy’s searches.
She’s had luck focusing on her own site since then, but she joined Handmade because she “thought it would be nice to be back on a larger platform.”
She’s happy to be an early adopter. “You’re the first to get people’s feedback ratings, their sales, that kind of thing,” she says. “Eventually there’ll be more competition, but I feel like by [that time]… I’m hoping to be more established.”
Tiffany Bobb, who designs jewelry made with semi-precious healing gemstones, says she joined Handmade “to reach a wider base of customers” and to take advantage of Fulfillment by Amazon, which handles her product distribution.
In her first few weeks in the marketplace, Bobb sold 10 pieces ranging from $35 to $95.
“I’m definitely not making huge money yet,” she says. But with Amazon’s reach, who knows what the future holds?
Click here to visit Handmade at Amazon and fill out an application.
Susan Shain, freelance writer, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.
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.
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Questions About COBRA, Disney World, Subscription Boxes, and More!
What’s inside? Here are the questions answered in today’s reader mailbag, boiled down to summaries of five or fewer words. Click on the number to jump straight down to the question.
1. Health care COBRA suggestion
2. Homemade food is too expensive!
3. Feeling rich while cutting spending
4. Bodyweight exercise suggestions
5. Retirement investing 101 question
6. Local economy vs. frugality
7. Credit card crisis
8. Saving money at Disney World
9. Best services for cord cutting
10. Eggs in the refrigerator?
11. Razor subscription services
12. Subscription boxes worth it?
My extended family lives just far enough away so that a weekend road trip to visit them for a family event is possible, but it’s long enough that it’s absolutely exhausting to pull it off.
This past weekend, I did such a trip solo to attend a wedding. I made it to the wedding and reception just fine, but I found myself in an exhausted daze during the reception and I woke up the next morning dreading the return drive. I’m very glad I went – I got to see a ton of family members and friends – but it was a tiring trip.
In many ways, it would be nicer to live somewhat closer, but doing so would mean walking away from a lot of friends. In some ways, it would actually be easier to live further away, because flying might be a more sensible option for such events and I could be somewhat more selective about them.
For now, it’s Monday morning and I’m already tired. Not the best way to start a week.
Q1: Health care COBRA suggestion
read your recent Simple Dollar post about the soon-to-be divorced woman asking advise about health insurance. She needs to see if her soon-to-be ex-husband’s insurance has COBRA continuation, and of course the cost. My experience is that the divorced spouse (she) would be eligible for 36 months of COBRA continuation, whereas her spouse, if he retired, quit, or was fired, would be eligible for 18 months. COBRA is expensive if the company was subsidizing the employee’s plan, but if he was paying the full cost of the plan, she would pay only 2% extra for administrative costs. My former husband received 36 months of coverage once we divorced since he was already retired (under Medicare age) and covered by my policy only (and I am covered for only 18 months now that I am retired). Why does the divorced spouse get longer coverage? Most certainly to protect that spouse, who would be more likely to be the non-wage earning spouse. I’m not an expert on health insurance, but have picked up this knowledge.
– Mari
This is a great idea and well worth looking into for a solution for the next few years. Here are the details on COBRA.
COBRA is well worth looking into if you find yourself leaving a marriage or find yourself with a sudden job loss (due to something other than gross negligence) or even if you resign from your job. It will enable you to continue your health insurance plan as you transition to the next stage of your life.
Q2: Homemade food is too expensive!
I don’t know where you get that making homemade food is so cheap!? It is super expensive! Tried to make burgers the other night and they were 2x as expensive as McDonalds! Made pizza and it was way more expensive than Dominos! Silly advice!
– Stephanie
For one, the volume of what you made at home likely greatly exceeded what you could get at those places. Your homemade burger almost assuredly had more actual meat on it than anything comparable at McDonalds, for example, and the pizza was likely much thicker than a comparable Dominos pizza.
For another, the quality of your food at home is likely much higher than those options, too. Your burger likely was made entirely of meat, for one. You also have the option to choose exactly the toppings you want on both the burger and the pizza. Buy the cheapest hamburger meat possible and the cheapest buns and, even then, you’re probably getting high quality stuff than McDonalds.
Furthermore, you can make those things really cheaply at home. Make your own pizza crust instead of buying a premade one. Shred your own cheese instead of buying bags of pre-shredded cheese. Make your own sauce – in fact, make a lot of it and freeze some for future use. You’re also probably using far more cheese on your pizza than Dominos uses, so if you’re trying to match Dominos, cut back on the cheese.
People often make a far higher quality version of an item at home and then directly compare the price of that item to the cheapest pre-made example from a restaurant, which is a throughly unfair comparison.
Q3: Feeling rich while cutting spending
For me the biggest struggle in cutting spending has been losing a sense of feeling rich. I used to feel like I could have luxurious experiences whenever I wanted and now I feel like those things have been cut off.
– Amy
My solution to this is an easy one, because it’s what I do myself: try doing lots of different things that are financially sensible and see which ones make you feel good. Collect lots of those experiences.
For me, there are a lot of cheap things that make me feel luxurious and happy. A long walk in the woods does it every time. Making a killer meal at home does it, especially when we use our nicest dishes for the meal. A big block of pure free time does the trick. Making a snack from scratch and enjoying it does it for me. A dinner party at our house with several friends does it, too.
Just find those things for you. Try lots and lots of things and note the things that leave you feeling happy and luxurious. Good luck!
Q4: Bodyweight exercise suggestions
What do you do for bodyweight exercise at home?
– Tony
I’ve mentioned several times before that I use bodyweight exercise to keep myself in shape. When I actually keep up with it, it does a wonderful job; unfortunately, sometimes I lack the internal motivation to keep progress going.
Since starting taekwondo with my family, I’ve picked it up again and am using it as a supplement to the classes. My preferred bodyweight exercise is to simply do the workout of the day at Darebee.com, which I check out each day. I struggle with some of the more intense ones. I also have several saved offline that I can use in the event that I don’t have internet access.
I couple that with a lot of walking and with some basic exercises that are used in taekwondo. I do 100 jumping jacks. I do 2/3rds of my max Hindu squats (these are squats where your fingertips brush the ground when you’re dipping) and then re-check my max every few weeks by doing them until I simply have to quit. I do 2/3rds max stomach crunches. I do 2/3rds max push-ups, too. I also do 2/3rds max length planks. I find that doing the “max” every day makes it miserable and I also don’t seem to “grow” all that much, either. Usually, 2/3rds max is the point where it starts to get really hard and not as much fun, but interestingly, my max seems to grow and grow if I use that approach.
Q5: Retirement investing 101 question
What is a Fidelity fund for retirement? I am trying to make sense of what the retirement guy was talking about at work but it didn’t make sense when he was talking and the notes don’t make sense either!
– Donna
Your sentence there breaks down into three parts.
“Fidelity” is the name of an investment company. You can think of them as being like a bank – think of whatever bank you use to do your banking.
A “fund” usually refers to a mutual fund. A mutual fund simply means that a lot of people are pooling their money together to invest and that having so much money in one pool makes it easier to do it at a large scale and take advantage of lower costs that come with such a big scale. Different funds have different objectives, so you have to investigate a fund at least a little to figure out what it’s specifically doing.
So, a “Fidelity fund” just means a mutual fund run by Fidelity. They simply pool together a bunch of money from a bunch of their clients and invest that all together.
The “for retirement” part is giving you a clue as to the purpose of that fund. That particular fund that the person is talking about is probably geared for the goal of retirement in some way. There’s a good likelihood – though not a guarantee – that he’s talking about a target retirement fund, which is a fund designed for people retiring at a certain time. For example, a “target retirement 2035 fund” would be investing for the sole goal of producing the highest likelihood of good returns for someone retiring in 2035.
Usually, funds for retirement are used within a retirement account, like a 401(k) or a Roth IRA. Those are just specific account types with specific rules, like a checking account or a savings account. Within a retirement account, you choose how you want your money invested.
So, for example, this person at work is probably talking about an option within the plans offered through your workplace. The plan there is likely either managed by Fidelity or offers Fidelity investments and he’s pointing toward particularly good ones to choose within your retirement plan.
Q6: Local economy vs. frugality
Isn’t it damaging to the local economy to be frugal? If you eat all of your meals at home and grow your own vegetables and then send your money to some investment firm you take money out of your local economy and send it elsewhere.
– Dave
This is an interesting question. Is it damaging to the local economy to be frugal?
Personally, I never worry about such issues. I think it is the responsibility of businesses to create and sell products and services compelling enough to get me to spend my money. If they don’t, I don’t feel an obligation to spend my money there.
When I do decide to buy something, I do prefer local options if they’re available at a reasonable price.
However, the simple desire to “buy local” alone is not convincing enough for me to just go buy products that I don’t need and don’t really want.
Q7: Credit card crisis
I am 32, my wife is 30. About three weeks ago we maxed out our shared credit card which had a limit of $14,000. My wife then opened up another card and we already have a balance of over $1,000 on it. We decided something needs to change. Started doing Google searches and found your site.
What do we do first? Do we need credit counseling services? Not even sure where to start but it is ridiculous to have $15K in debt and be paying $500 a month in interest for nothing.
– Andy
The flat out truth, Andy, is that every debt management or credit counseling tool is going to tell you the same thing – you have to get your spending in check. That is the hardest part of all of this. You have to cut your spending until you’re spending significantly less than you earn each month or the debt problem isn’t going away.
How do you do that? Cutting back on little stuff helps, but it takes a lot of those changes to add up to a big number. Often, what works best is pairing one or two big changes with lots of little changes.
For example, you might consider continuing to drive your current cars until they’re ready to fall apart rather than trading them in every few years (I don’t know if you do that, but it’s a common thing that many people do), or consider getting rid of a car. You might consider moving to a smaller place with less expensive rent or lower mortgage payments. You might consider completely ditching cable or satellite service and using just Netflix and over-the-air signals for home television.
Couple those changes with smaller ones like cutting back to eating out once per week or making your own coffee at home before you leave or buying only store brand products at the store.
The key with all of those changes is to not simply convert them into other spending. Instead, use that saved money to eliminate that debt, then build up a cash emergency fund in a savings account, then start funding a Roth IRA for each of you. Use that savings to build a strong financial platform so that you don’t have continual money worries.
Q8: Saving money at Disney World
Do you have any suggestions for making a Disney World trip cheaper? We’re planning one for next summer and saw that your family went there a few years ago.
– Nina
Stay off-site in a non-Disney resort or hotel, preferably one that has a shuttle to Disney World. You can do a ton of shopping around for a great price. I like using hotels.com as their prices are pretty solid and their customer service has come through for my family twice in a pretty serious pinch (they managed to move around “non-refundable” reservations due to car trouble).
Bring some empty water bottles and some sealed snacks into the park with you. Fill up the water bottles in the park and use them for your primary beverage. Eat the snacks to tide you over so that you can get away with eating only one meal a day in the park. Be sure the food you bring in is sealed.
Eat breakfast before you go to the park. If your hotel offers a free or discounted breakfast, take advantage of it and fill up before you go so that you’re not tempted by the bevy of food options.
Drive instead of flying if you’re traveling with a full family. The cost of flying and car rental adds up incredibly fast and unless you’re coming from the west coast, you’re probably not saving as much time as you think.
Accept that, even after those tips, it’s still going to be expensive, and plan accordingly.
Q9: Best services for cord cutting
What’s the best bang for the buck that a cord cutter can get for television services? Assume we don’t care about sports and only want to spend $30 a month.
– Angie
First, buy an over-the-air antenna and mount it on your roof, if possible. This will give you a lot of channels for free with no monthly cost.
The best bang-for-the-buck services are Netflix (because of the sheer breadth of programming) and Amazon Instant Video (because it’s part of Amazon Prime). The total cost of those two packages will be somewhere around $25 per month, depending on the version of Netflix you choose.
The other streaming options each have a drawback. For example, HBO NOW has a ton of great stuff on there, but there’s not a whole lot of new stuff added regularly. The other services tend to simply not have a lot of content compared to Netflix and Amazon and mostly just rest on one or two well known original shows. They’re not worth it, in my opinion, other than maybe a single-month subscription to binge watch like a madman.
Q10: Eggs in the refrigerator?
Do you really need to keep eggs in the refrigerator? My mother in law is from Bosnia and she keeps hers on the counter in a bowl. She says they’re fine and I’ve actually eaten them several times and never been sick. Are eggs in the fridge a waste of fridge space?
– Bill
This is a trick question, actually. Once an egg has been washed refrigerated, it has to stay that way because of the “sweat” that occurs when the egg warms up. However, an egg that has never been refrigerated can stay at room temperature and be just fine. Another catch: once you thoroughly wash an egg, you need to refrigerate it because the outer cuticle has been damaged.
So, if you buy your eggs at the store, you need to keep them in the fridge. If you get your eggs from a farmer directly who doesn’t refrigerate them or you harvest them yourself from chickens, you don’t need to refrigerate them.
If your mother-in-law is buying them at an ordinary grocery store in the US, she should be refrigerating them. If she’s doing this outside the US or if she’s getting them from somewhere outside this normal supply chain in the US, she’s fine.
Q11: Razor subscription services
What are your thoughts on razor subscription services like Harry’s and Dollar Shave Club?
– Dennis
If you are committed to using a cartridge razor, both of those services are reasonably well priced. You’re essentially buying good quality cartridges in bulk through the mail, with the total package being inexpensive enough that it’s cheaper than buying similar cartridges in the store.
However, cartridge razors are about the most expensive way there is to keep your face shaved. Using an ordinary safety razor is far less expensive, though it does require some significant care to use one and the technique is rather different than a cartridge. I can shave myself in the shower quickly with a cartridge razor; I can’t do that at all with a normal safety razor.
If you’re going to stay within the expensive cartridge razor genre, then Harry’s and Dollar Shave Club are both worthwhile. They do compete on price and are similar enough in quality that I’d choose whichever one is a bit cheaper. All things being completely equal, I’d give a slight nod to Harry’s – I’ve used both, and I like Harry’s handle better.
Gemma had a somewhat similar question, which is a good place to finish off the mailbag this month.
Q12: Subscription boxes worth it?
What do you think of subscription boxes and such things? Are they worthwhile? What about as gifts?
– Gemma
I have no interest in ever buying a subscription box for myself. I think that they’re almost always overly expensive for what you get and you’re completely losing out on the ability to actually choose what you’re getting. You’re typically paying for an overpriced box of stuff in the mail each month. “Surprises” can be fun, I suppose, but not at a premium price.
They can make for a fun gift for someone, though such gifts can be pretty expensive. My children and I got my wife a coffee box subscription for one year for Mother’s Day and she seemed to thoroughly enjoy it, though the volume of coffee was more than she could use. My wife and her sisters and her mother got her father a subscription to a monthly craft beer selection a few years ago which was similarly enjoyed.
In other words, I think they make sense as gifts if they’re heavily targeted toward the person receiving them, but they’re overpriced in terms of buying one for yourself. I’ve often wondered about whether or not it would make sense to “roll your own” gift box – for example, one might choose six craft beers and put them in a six pack container each month for a friend for a year.
Got any questions? The best way to ask is to follow me on Facebook and ask questions directly there. I’ll attempt to answer them in a future mailbag (which, by way of full disclosure, may also get re-posted on other websites that pick up my blog). However, I do receive many, many questions per week, so I may not necessarily be able to answer yours.
The post Questions About COBRA, Disney World, Subscription Boxes, and More! appeared first on The Simple Dollar.
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Bargain hunting: Would you bend the rules?
We look at the wily ways consumers find to cut costs and ask the lawyers whether this is just shrewd shopping or breaking the law.
Nine in 10 British consumers consider themselves to be honest, but it seems that we are more than happy to let small indiscretions fall by the wayside if it means we can land a good deal.
According to the Integrity Study, published by cashback website Quidco.com in October 2016, four in 10 shoppers would consider keeping extra change if they were given it by an unwitting cashier, while half of us unapologetically sneak our own treats into the cinema. These days, consumers are willing to do what’s necessary to get the most from their money.
But when do the lines become blurred between a spot of shrewd bargain hunting and actual criminal behaviour? Or is it one of those grey areas where the companies are either not bothered, or are effectively turning a blind eye to what’s happening?
“Bargain hunting can be an incredibly satisfying pursuit when you bag a great deal and make a saving, but when that pursuit turns into rule-bending, consumers can risk getting into hot water,” says Cathal Wogan of Quidco.com.
“Retailers and service providers could not only withdraw services if terms of use, legal regulations or other rules are not met, but there could also be legal consequences for fraudulent behaviour or breaking other rules,” she adds.
Sharing online memberships and using the prepaid envelopes that you receive in junk mail for personal post are both widely practised. But the law is clear: it states that those who makes a false representation, knowing that it is untrue or misleading and do so with the intention to gain from it, or to cause someone else loss, are committing an offence under the Fraud Act 2006.
“Arguably then, when you sign up for an online account under different names to take advantage of the introductory offers, you are engaged in fraudulent activity,” said Robert Conway, a director of the criminal defence team at law firm, Vardags.
But it doesn’t seem to be as cut and dry as that. Stuart Helmer, senior associate at law firm CMS, argues that there’s quite a high bar for fraud which requires, among other things, dishonesty.
“Generally, simply taking a trader’s offer at face value, whether it is for goods at an implausibly low price or to participate in a sales promotion, won’t be enough for that,” he said.
Here we look at the clever ways consumers are cutting costs – and look to the experts for the lowdown on whether these tricks just bend the rules or are illegal.
Car insurance – don’t ‘front’ for a child
When applying for car insurance, some drivers may be tempted to be flexible with the truth. In fact, figures from Quidco.com found that a fifth of motorists are happy to fi b on their application with some tweaking their job description or naming extra drivers in order to get a cheaper deal. But this dishonesty can mean you are left with a policy that won’t pay out, and even a criminal record.
“People should choose the occupation that best fits their job title and to always be truthful when completing insurance quotes,” said Chloe French, spokesperson for Direct Line car insurance.
“While we wouldn’t penalise someone for inadvertently misrepresenting the truth, if there was evidence that this was deliberate then we would look to take action, such as cancelling their policy.”
However, fronting is one lie that the insurance industry will not overlook. This is when in order to secure a lower premium, a policy is taken out in the parent’s name with them as the main driver and the young driver as a named driver, when in reality the young driver will have the main use of the vehicle.
“Although fronting may seem like a harmless attempt to save money, it is actually fraudulent activity which could put them in an even worse position by having this on their record,” says Ms French.
“If fronting is proven, the penalties can include the cancellation of the policy with no refund of any premium, any claims may not be paid and the customer may have difficulty obtaining insurance in the future.”
Price glitches – the ultimate bargain
Most shoppers get a real adrenaline rush when they have secured the ultimate bargain – and price glitches are the perfect example. These are company errors that make something unusually cheap – for example, a £1,099 TV offered for £199.
Many people who buy price glitches do so knowing there is a high risk the majority will be cancelled. But that is not always the case and savvy shoppers can get their hands on a good deal if they are fast.
It’s quite common for consumer brand owners to make mistakes in their offers to customers and generally it will not be fraudulent for a savvy consumer to take advantage of these, says Mr Helmer.
“It is well established that even if a trader offers goods at a mistakenly low price, they don’t generally have to honour any sales,” he says.
Offering goods for sale in a retail environment is known as an “invitation to treat”, but the contract won’t be formed unless the consumer offers to buy at that price and – this is key – the trader subsequently accepts.
“The mere fact of coming to the till, or clicking ‘buy’ on a website, doesn’t in itself form a binding contract,” says Mr Helmer.
Ecommerce terms will make clear that a contract is not formed until the trader accepts the consumer’s offer to buy, often by sending an email or by delivering the goods, giving the trader the chance to retract the mistaken price.
Some retailers reserve the right to cancel an order up to the point of delivery, so carefully check the retailer’s terms and conditions. That said, some traders feel bound by moral pressure to honour a low price offered in error.
Online contests and freebies
Another area where wily consumers can catch a trader out is in sales promotions such as free gifts and prize draws.
Sales promotions must be governed by written terms and conditions, and careful traders will limit the availability of promotions by geography and time, as well as by availability, by participant and a range of other criteria. For example, if the promotion is only available to students or pensioners, the terms will say so and then the trader can exclude people who don’t qualify.
“Attempting to participate if you don’t qualify will be a breach of contract, allowing the trader to disqualify the consumer from the promotion,” says Mr Helmer.
“The trader might even be able to sue for their losses, though suing consumers for minor losses often won’t be worthwhile. However, there are many examples of traders getting this wrong and finding that they have a contractual obligation to fulfil a promotion in circumstances they did not intend.”
What is more, the trader will be faced with the uncomfortable choice of incurring the cost of fulfilling the promotion or of incurring the bad PR of trying to withdraw – and here, a trader will usually be in breach of contract if they don’t honour the actual promotion terms as published, mistakes and all.
Sharing online subscriptions – a grey area
We teach our children that “sharing is caring”, but when is this actually stealing?
A third of consumers access video streaming services online, but according to a survey by price comparison site Broadband Genie, a quarter of us are sharing login credentials with people living outside our homes.
And it’s easy to see why – take Netflix, for instance. With three tiers of service (stipulating how many devices can view concurrently and starting at £5.99 a month), the streaming giant is unique among its rivals in supporting different user profiles that track distinct viewing histories and give different recommendations. This is a great feature, but one that really wouldn’t be necessary unless multiple people were permitted to use the same account.
The sites themselves do not make it abundantly clear whether this is allowed or not. Some violations of online terms of service could potentially break the terms and conditions, but the language used in those agreements can be ambiguous, to say the least.
However, Mr Conway argues that sharing login information for this use is a legal grey area.
“When you sign into Netflix under someone else’s name, you are engaged in fraudulent activity,” he says.
However, Mr Conway admits that there is no need to jump behind the curtains at every siren sound you hear.
He says: “It seems that in an era of stretched resources and a proliferation in more serious economic crime, few companies pursue this sort of low-level offending, even if it did ever come to light.”
“I’m ‘faking it’ as a student to get discounts”
Blogger Emma Bradley (pictured above), aged 41, from Gloucester has saved a fortune by using her NUS extra card from the National Union of Students, despite never having paid for a course of study or spent any time studying.
Emma, who blogs at Mumssavvysavings.com, simply signed up for a free online digital marketing course with Shaw Academy, which enabled her to qualify for the discount card.
Over the past year, she estimates her savings have exceeded £450 from discounts at restaurants such as Prezzo and Zizzi and half-price memberships to Spotify and Amazon Prime.
“When shopping online it is easier than ever to make use of pretending to be a student,” she said. “You can avoid eye contact, but still get a bargain or discount."
Emma says that she feels that she has simply “played the system a little”, rather than having broken the law.
“I like to stretch my hard-earned money further and don’t feel guilty as these are big international companies and if they can afford to give some groups in society a discount they can afford to give us all one,” she says.
Lawyer Stuart Helmer agrees. “Signing up for a course without the intention of actually doing the course is unlikely to qualify as fraud, especially as it would be difficult for the NUS to show that the potential student had actually acted dishonestly when they might have just changed their mind or stopped attending lectures after getting the card,” he says.
However, Mr Helmer warns that anyone who has obtained or sought to use an NUS card without being a registered student at all, could potentially be liable for fraud if they presented the card to obtain a discount on goods or services, because they would be dishonestly representing that they were a student.
“I’ve bought a £500 sofa for £30”
Charlotte Burns( pictured above), a London-based blogger (Lottyearns.co.uk), says making the most of price glitches has paid dividends. She has saved money on everything from food to furniture and saved hundreds of pounds in the process.
The 28-year-old explains: “Over the years, I have managed to score £500 sofas for £30, Thornton’s chocolates, a Citizen watch for £28 and Yankee candles delivered for a few pounds.”
Charlotte says that consumers should always keep an eye out for short-lived deals and glitches on social media. “Facebook groups such as Skint Dad deals, Latest Deals, Luxury on a Budget and 10 Ways all post the latest glitches when they happen.”
“I’ve often suspected that brands do it for PR purposes as a glitch will get a lot of traffic,” she says. “If you look at it this way, it is a win for both sides involved, so why not make the most of it?”
While some shoppers will complain online if they don’t get the advertised ‘wrong’ ultra-low price, Charlotte says: “It’s really fair enough. As much as I like a bargain, I wouldn’t want to see a company get into financial trouble because of a mistake.”
Have your say Have you ever returned a used item or discovered a way of using retailers’ discounts to your advantage? Email editor@ moneywise.co.uk
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How to Leverage Customer Surveys to Skyrocket Your Email List Engagement
Has your email list come to a standstill?
Unfortunately for some businesses, the marketing campaigns designed to grow their email lists don’t always work.
The methods grow stale, and businesses have trouble adding new subscribers.
If this is happening to you, don’t get discouraged.
I’ll show you how to add subscribers and increase engagement with customer surveys.
Focusing on customer surveys will be a great decision for your brand.
You’ll find out valuable information about their levels of satisfaction and buying habits.
Surveys can help alter your marketing strategy, products, or services based on the results.
Asking the customer for their opinion is a great way to show how much you care about them.
Nearly 70% of customers said they left a brand because they did not feel the brand cared.
Don’t let this happen to you.
Keeping your customers happy is a great way to add subscribers to your email list.
You can even send customers a survey through an interactive email.
In this post, I’ll show you how to use surveys to explode your email list.
First, come up with ideas for a survey
What’s your survey going to be about?
Before you can build a survey, figure this part out.
You can’t have a “one size fits all” questionnaire.
You’ll need to come up with a few different ideas here.
Here are a few examples to guide you in the right direction.
You can create a survey about:
- The shopping experience on your website
- A recent product purchase
- How the customer felt after visiting your store
- Their latest interaction with a customer service representative
Just make sure your questions focus on the customer experience.
If your customers are experiencing an issue with your brand, products, or process, a survey can help you identify these problems.
You can’t resolve an issue unless you identify it first.
Build your survey
Now that you’ve decided what your survey should be about, it’s time to construct it.
If you’ve never created a survey before, don’t worry.
It’s super easy, and I’ll show you how to do it.
Here’s a step-by-step guide to building a professional customer survey.
Step #1: Select a platform like SurveyMonkey
SurveyMonkey is a top option, but it’s not your only choice.
I like it because it’s easy to use and it’s free.
You can also check out other sites:
All of these will get the job done.
But for simplicity and consistency, I’ll continue explaining how to create your survey on the SurveyMonkey platform.
Step #2: Sign up for an account
SurveyMonkey makes it easy for you to create a profile.
You can create a unique username or just sign in through your Facebook or Google accounts.
I think it’s easier to just click the Google button.
But it’s a quick process no matter which option you choose.
You can’t proceed until you create your account.
But again, it’s free, so you don’t have to give any credit card or billing information.
Step #3: Choose your template
You’ve got some different options here.
You can build your survey from scratch or choose one of the predesigned templates.
I’d go with one already designed.
It’s much easier to just plug in your questions into their designs.
But if you want to be adventurous, feel free to start one from scratch.
Step #4: Select “Customer Feedback” from the “All Templates” menu:
For our purposes, the templates in the customer feedback section are the most relevant.
Remember, we are designing our surveys to:
- Enhance the customer experience
- Grow our email list
This is the best spot to get started.
Step #5: Navigate to the “Question Bank” to add questions
After you select a template, you’ll advance to the “Design Survey” tab.
From here, you can customize your questions from the question bank in the left column.
You can use their existing questions, modify them, or write your own.
For example, take a look at the question in the above example.
I could change the words “our company” to “Quick Sprout” to make it less generic.
Step #6: Collect responses from your customers
Now that you’ve customized the survey, it’s time to distribute it to your customers.
Click the “Collect Responses” tab to proceed.
Now, the logical distribution method would be email, right?
Well, yes and no.
Here’s what I mean.
Yes, you want to send this email to your existing subscriber list.
That’s a no brainer.
However, this won’t necessarily help you build your email list.
All these customers are already subscribed.
Their responses are still valid, and you definitely want to hear them.
You’ll get more opens, clicks, and engagements by sending this out.
But remember, you’re trying to blow the top off your email list.
To do this, you’ll have to distribute the survey on all of your platforms:
- your website
- social media pages
- mobile application
I’ll explain how you can use different resources to grow your email list.
Share your survey on social media pages
You may have fans and followers on social media who haven’t subscribed to your email list yet.
You can target these followers by distributing the survey through social platforms.
It’s a nice change of pace from your promotional messages.
People will unfollow your page if you post only promotional content.
A survey is a great way to mix it up.
Your customers may have been waiting for a long time to tell you how they feel about your company.
This survey is an opportunity for them to voice their opinions.
Once they complete the survey, say thank you.
Now’s the perfect opportunity to get them to sign up for your email list.
Here’s how you do it.
Before they get started, offer an incentive to your followers to complete the survey.
They will be more inclined to share their opinions if they get something in return.
Here’s the twist.
To receive their free gift or discount, they need to join your email list.
Look at the way Blue Apron accomplishes this:
Your social media followers will be happy to join your email list if they are getting something in return.
Make sure the deal is worth it.
Giving them 5% off may not be enticing enough.
I’m not saying you need to give your products away, but the offer needs to be appealing.
Converting your followers into customers by sharing your survey on social media can do wonders for your business.
Take a look at the process. Consumer:
- takes the survey
- signs up for your emails to receive their discount
- activates the promotion and makes a purchase
Now, you’re growing your email list and generating revenue.
All because of your survey.
Social media is a great distribution method for your survey because customers are more likely to buy from brands they follow.
Targeting people for your email list who are more inclined to purchase from your company is an excellent strategy.
Leverage your survey results to boost your brand’s reputation
Let’s take this a step further.
You can use the results from your survey to grow your email list as well.
There are two main ways to accomplish this:
- make changes to improve the customer experience
- use social proof of concept to get subscribers
Let’s play out a hypothetical example here.
You’ve obtained some new information from your latest survey results.
Customers don’t think you’re running enough promotions.
They want more discounts than you currently offer.
Adjust your business model accordingly.
Make a point to give your customers a sale or promotional discount at least a few times per month.
How do they receive this discount?
By subscribing to your email list.
Start promoting more content that looks like this:
Your survey results may be telling you that your current sign-up strategy is inefficient.
What’s the current incentive that your subscribers receive for signing up?
If you’re advertising that they will be the first people to get notified whenever you write a new blog post, it may not be exciting enough to them.
Switch it up.
Give the customers what they want, based on how they responded to your survey.
You can also use social proof to leverage your survey results.
This is another great way to grow your email list.
Here’s how social proof influences decisions:
It’s power in numbers.
Use this psychological tactic to grow your email list.
In addition to surveys, you can ask your customers to write reviews for your company.
According to studies, 82% of customers conduct research online before they make a purchasing decision.
What information are they going to find about your company?
If you can encourage customers to review your company online, it will generate social proof.
Ask your customers to write reviews on platforms such as:
- Google Local
- Yelp
Obviously, you’ll want to see positive reviews here.
But don’t be surprised if you find some unfavorable comments as well.
The more people you can get to write reviews, the greater the power of social proof will be.
Here’s an example of Yelp reviews of some coffee shops in my Seattle neighborhood:
These places have 930, 755, and 1469 reviews, respectively.
When a customer is researching your brand online, seeing lots of reviews can influence their decision.
Reviews can also help grow your email list if they say something like, “I subscribed for weekly emails, and they always send me great discounts.”
Highlight surveys, and review results on your website.
Here’s a great example from Legal Zone:
They proudly display this information on the homepage of their website.
How did they find out this information?
By conducting customer surveys.
Sharing the survey results on their website will create social proof for the prospective customers conducting online research.
This information can help influence more people to subscribe to receive emails.
Conclusion
You should always be trying to grow your email list.
But sometimes the tactics that worked for you in the past just aren’t cutting it anymore.
It’s time to start thinking outside the box to add subscribers.
Customer surveys can make a huge difference in your subscriber rate.
Your surveys should focus on the customer experience.
It’s hard to make changes to the company if you haven’t identified any problems.
The survey results will help you see what areas of your business need improvement.
Build a survey.
Use a platform like SurveyMonkey, and follow the step-by-step guide above.
Distribute your survey on as many channels as possible, including your social media pages.
It won’t cost you billions of dollars to do this.
Social media is a great place to share your survey because your followers are more likely to buy from your brand. It’s only logical that you should target them to join your email list.
Offer a reward, prize, or discount to consumers for completing your survey.
That’s how you can add more subscribers.
To claim their reward, the customer needs to join your email list.
Your survey results can also grow your list.
Use the knowledge gained from the results to make the changes the customers asked for.
Offer these changes through your email list.
Leverage your survey results to add subscribers, capitalizing on the concept of social proof. Display the favorable results of the survey on your website.
When people see that other customers are happy with your brand, they will be encouraged to submit their email addresses to receive more content and promotional information.
What platform will you use to create a survey that will help you grow your email list?
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Five Tips for Applying for Credit Cards in a Post-Equifax Breach World
It’s been almost two months since Equifax announced a data breach of personal information. Since then:
- Millions of us have taken steps to protect our credit.
- Their website was compromised (again!) redirecting to malware.
- A no-bid contract from the IRS to have Equifax provide identity verification services for taxpayers was put on hold.
Within this swirl of information, more and more questions have been asked, including: Can I apply for a new credit card after the Equifax hack?
The answer is: Yes, but you need to protect yourself.
So, if you’ve been eyeing one of the best cash back cards or the best balance transfer cards, you can still apply. In fact, research firm SSRS found that 81% of respondents said “the breach has not affected their decision to sign up for a credit card in the future.”
How to handle credit cards post-Equifax
The Equifax data breach was massive — the personal data of more than 145 million Americans may have been exposed. Hackers took information including names, birth dates, Social Security numbers, driver’s license numbers, addresses, credit card numbers, and more.
However, you can still safely use existing accounts and apply for new credit cards. Here’s how you can protect yourself and your credit card information:
Make sure you’re on a secure website
Before you enter any information, make sure the website is legitimate and secure. You can do so by looking for the lock icon in the URL bar, making sure the URL has https for secure, and checking that an SSL certificate is available.
Be wary of credit card offer emails
Think twice before signing up for a credit card offer you receive via email since it may be a phishing scam. There’s a chance hackers stole your email address to encourage you to “sign up” with your personal information. Verify offers directly on the card’s secure website.
Set up two-factor authentication
Once you’ve opened a new account, set up two-factor authentication for your logins. This provides an extra layer of security beyond just a username and password. For instance, your bank may ask you to enter a unique code texted to your cellphone to login.
Sign up for alerts from your bank or card issuer
Another layer of protection is to sign up for email or text alerts warning you about potential signs of someone hijacking your financial information. Your bank or card issuer can alert you when your checking balance is low, when an ATM withdrawal is made, when a transaction exceeds a certain amount, and more.
Don’t ignore your existing accounts
While credit card fraud in the form of opening new accounts is increasing, you’re still more likely to find fraudulent charges on existing accounts. To keep existing accounts safe, update and strengthen passwords, and consider two-factor authentication and alerts for them as well.
In addition to these safeguards, you may also want to check your credit report, monitor your credit, and/or freeze your credit.
How do I check my credit report?
You can visit AnnualCreditReport.com to request a free copy of your credit report from one or all three of the credit bureaus once every 12 months. When reviewing your credit report, keep an eye out for any red flags — your name doesn’t match, there are inquiries from lenders you don’t recognize, there are accounts you didn’t open, and more.
How do you monitor your credit report?
As mentioned above, you can request a free copy of your credit report once every 12 months. Alternatively, you can sign up for a credit monitoring service to track your credit reports and alert you if there are any significant changes.
Keep in mind that credit monitoring is reactive — if something is found, you’ll need to take steps to remove or correct it. If you’ll be applying for several cards or other finance-related items that require a credit report (such as renting an apartment, getting a car loan, or signing a mortgage), credit monitoring is a way to keep tabs on your information without freezing it.
Many credit card companies offer some form of credit monitoring. Here are a few examples:
| American Express CreditSecure® | Capital One® CreditWise® | Discover Credit Scorecard | |
|---|---|---|---|
| Credit reports | ✔ | ✔ | ✖ |
| Credit score | ✔ | ✔ | ✔ |
| Credit monitoring | ✔ | ✔ | ✖ |
| Credit report alerts | ✔ | ✔ | ✖ |
| Fraud representative | ✔ | ✔ | ✔ |
| Score simulator | ✔ | ✔ | ✖ |
| Financial calculators | ✔ | ✖ | ✖ |
| Free to use | ✖ | ✔ | ✔ |
How do I put a freeze on my credit?
The next step up from credit monitoring is to freeze your credit. A credit freeze pulls your credit report out of circulation and allows no one (including you) to view it until you unfreeze it.
While a credit freeze is an excellent protection option, it may not be the best step if you’re interested in a new credit card. When applying, the issuer needs to review your credit report. If it’s frozen, you’ll need to pay to unfreeze it, wait to be approved, and then freeze it again.
Additionally, don’t limit protections to yourself since the Equifax data breach may have also included the Social Security numbers of minors. If you think your child’s information may have been compromised, you may want to consider a credit freeze for them.
Protection is key
With nearly half of all Americans affected by the Equifax data breach, there’s a strong chance you or someone you know may have had their personal information compromised. While that’s a scary thought, it doesn’t mean you have to go off the grid just yet. It is still safe to apply for a credit card — as long as you take steps to protect your current and new accounts.
The post Five Tips for Applying for Credit Cards in a Post-Equifax Breach World appeared first on The Simple Dollar.
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How This Mom Left the Corporate World For the Comfort of Home
Lisa Kanarek left the corporate world over 20 years ago and has been working from home commute-free, boss-free, and annoying-co-worker-free ever since. For the first five years, she didn’t let anyone know that she worked from home because she wanted to seem professional and definitely not the small, one-person business that she was. But after […]
The post How This Mom Left the Corporate World For the Comfort of Home appeared first on The Work at Home Woman.
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Even the Experts Can’t Beat the Market. Why Would You?
There’s this idea out there, perpetuated by financial professionals and online “experts” alike, that if you take the right approach, do the right research, and put in the right amount of effort, you can pick stocks that beat the market.
There are, of course, the people who are pretty obviously scam artists, promising crazy returns if you just follow their “system.”
But there are a lot of other people who sound a lot more rational. People who talk about things like dividend investing and value investing. People who talk about taking a defensive approach or who emphasize their expertise in a particular industry.
Many of these people explain their ideas in simple terms that make sense, and they occasionally seem to have the data to back up their claims.
Their pitch is appealing. They make it sound like it’s pretty simple to beat the market if you have the right information and the right discipline.
Unfortunately, most of it is garbage. And I have the data to prove it.
Even the Experts Can’t Beat the Market
Every six months, S&P Dow Jones Indices produces something called the SPIVA US scorecard. This report compares the performance of actively managed mutual funds to their benchmarks over various time periods to see just how effective professional investment management actually is.
The most recent report is the Mid-Year 2017 Scorecard, which includes performance data through June 30, 2017. You can also review past scorecards, and scorecards for other regions of the world, here.
There’s a lot of information in this scorecard, but here’s the main headline: Whether you look at the past 3, 5, 10, or 15 years, only about 15% of all professional mutual fund managers were able beat the market.
That’s less than 1 in 6 professional investors. These are people who are trained, paid, and spend their careers looking for best investment opportunities.
And given that index investing allows people to invest directly in those benchmarks they’re being compared to, the only way they can justify their jobs (and the fees they’re charging) is to outperform.
And fewer than 1 in 6 can do it.
On top of that, their average underperformance over the past 15 years was 1.1%. That is, they lost to the market by 1.1% per year for 15 years.
That may not sound like much, but it would have cost you $13,342 if you were investing $5,500 per year (the current IRA contribution limit) for that entire 15-year period, assuming 7% market returns. If you continued to receive that same underperformance for another 15 years, you’d end up losing a total of $103,452 compared to the market.
And remember, these are people who devote their lives to this. They’re smart, well-trained, they work hard — and the vast majority of them still underperform the market by a wide margin.
If that’s the case for the professionals, it’s unlikely that you or the person pitching you their stock-picking strategy will be any different.
The Best of the Best?
The logical counterpoint to the data above is that there is still that one professional investor out of every six who is able to beat the market. If you can find that person and either invest with them or mimic their strategy, you’ll be able to beat the market too.
Unfortunately, there’s another report that lays that argument to waste as well.
S&P Dow Jones Indices also produces The Persistence Scorecard, which tracks whether the mutual funds that beat the market over one time period continue to beat the market over subsequent time periods.
After all, if there’s genuine skill involved then we should see the same professionals and the same mutual funds outperform time and time again.
The truth is that we see pretty much the exact opposite.
This most recent report looked at all the mutual funds that finished in the top quartile (top 25%) for returns in one year and tracked how they performed over subsequent years. It found that just 1.94% of those funds were able to maintain that top-quartile performance over three years, and a measly 0.34% we able to keep it up over five years.
Those percentages are less than what you’d expect from pure chance, and the results are the same even if you look at longer periods of performance to try and account for random year-to-year variation.
When these same mutual funds are evaluated over two consecutive five-year periods of performance, only 39.86% of the mutual funds that outperformed over the first five years continued to outperform over the second five years.
Again, random chance would expect 50% of them to continue their outperformance, so these professional investors are less consistent than a coin flip. In fact, the report concludes that “the data show a stronger likelihood for the best-performing funds to become the worst-performing funds than vice versa.”
All of which is simply to say that there is no consistency to the performance of these professional investors. The vast majority of those who are outperforming are doing so out of pure luck and are more likely to significantly underperform the market going forward than they are to continue beating it.
What Does All of This Mean for You?
It’s not impossible to beat the market. In fact, all of the data above show that a tiny percentage of professional investors are able to do it with at least some degree of consistency.
It is possible for you to find one of those professionals and invest with him or her, or to be one of those investors yourself.
But it’s incredibly unlikely.
What the data really say is this:
- Almost all of the people who try to beat the market fail to do so.
- They typically fail by a significant margin.
- Even if you’re lucky enough to beat the market over one period, you will almost certainly fail to do it again.
In other words, stop trying to beat the market!!! It’s basically an impossible goal, and it’s especially unnecessary when index investing exists as an easy and readily available alternative that research has shown time and time again to produce better results.
The experts can’t beat the market and you don’t need to try. Your future self will thank you if you don’t.
Matt Becker, CFP® is a fee-only financial planner and the founder of Mom and Dad Money, where he helps new parents take control of their money so they can take care of their families. His free book, The New Family Financial Road Map, guides parents through the all most important financial decisions that come with starting a family.
Related Articles:
- Are You Ready for a Stock-Market Crash?
- Eight Questions to Ask Yourself Before Investing in Anything
- Why Do You Want to Beat the Market?
The post Even the Experts Can’t Beat the Market. Why Would You? appeared first on The Simple Dollar.
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Why is Logging the Most Dangerous Job in America?
While many of us believe we are giving too much of ourselves — our time, mental exertion and personal freedoms — to our jobs, we likely have it better than workers in riskier career fields. In fact, there are several careers that put their workers’ lives in danger every day just by the nature of the job: police officers, fishermen and pilots, to name a few.
But what is the job with the single highest fatality rate? Logging, by a mile.
According to the most recent data from the Bureau of Labor Statistics, 67 loggers died on the job in 2015. While more truck drivers (885) and farmers (252) died that year while on duty, loggers had the highest number of deaths per 100,000 workers: 132.7. That is more than double the second highest, fishermen, at 54.8 per 100,000 workers. The American average, for reference, is 3.4 per 100,000, making logging 39 times more dangerous than the average job in the U.S.
So what is it that loggers do on a daily basis, and why does it make them so prone to on-the-job fatalities? And more importantly, what safety regulations are in place to protect them, and is it enough? I turned to Jeff Wimer, a senior instructor and manager of the Student Logging Training Program at Oregon State University (OSU) and chairman of the Western Region of the Council on Forest Engineering, to find out.
What Do Loggers Actually Do?
Loggers harvest timber from forests, making their line of work essential for our way of life. Trees provide materials for our buildings and furniture; their sawdust becomes our paper; their fibers can be used to make asphalt. Heck, we even owe a debt of thanks to trees and the loggers who fell them for baby food and toilet seats.
What Dangers Do Loggers Face?
“The dangers to loggers are the same as they have always been,” Wimer says. The terrain of the Pacific Northwest, for example, is rugged and steep. “The majority of this ground still requires workers who have a much greater exposure to hazards than someone in a machine.”
According to the Occupational Safety and Health Administration (OSHA), some of those hazards come from the very tools loggers rely on. Equipment such as logging machines and chainsaws, while they have come a long way from the days of homemade choppers, still pose a threat.
Add the force of Mother Nature to that. Per OSHA, the incredible weights and unavoidable momentum of trees as they roll and slide can quickly lead to injury or death.
This is only made worse when dangerous environmental conditions arise, such as uneven, unstable or rough terrain; inclement weather, including rain, snow, lightning, winds and extreme cold; and remote work sites far from health care facilities.
How Is the Logging Industry Responding to These Dangers?
With fatalities so high, and on the rise since the beginning of this decade (in 2010, there were 91.9 deaths per 100,000 loggers), I wanted to know what the industry was doing in response.
What safety regulations are in place currently, and why aren’t they working as well as loggers would like?
I came across a 1995 publication from the National Institute for Occupational Safety and Health (NIOSH), which detailed six logging deaths and how they could have been prevented. It also included revised regulations from OSHA that had been released earlier that year. These regulations included more job and first-aid training, more protective equipment, more requirements for the equipment used and “comprehensive manual felling procedures.”
So why aren’t those regulations working?
Wimer says much of the dangers come down to working outside of a machine. “The best solution is to get a worker into a machine,” he says. “He is 10 to 20 times safer while operating machinery.”
Unfortunately, ground-based machinery can only be used on a maximum 50% slope (26.57 degrees), and loggers frequently come across slopes that are much steeper and must tackle the challenge sans machinery.
Jeff, as an active member on a committee that advises Oregon OSHA, is looking forward to a new technology called tethered assist, which will allow loggers to work a machine on slopes approaching 100%, or a 45-degree angle.
Tethered assist technology takes an old piece of machinery, like a bulldozer, renovates it and attaches a purpose-built winch to it, which would be tethered to the newer piece of machinery that will actually navigate the slope. Per Wimer, “In essence, when the machine on the slope needs to move, the tethering machine provides enough tension on the cable to allow the tethered machine to navigate the steep slope.”
So what’s the holdup with this tethered assist machinery? The first problem is safety.“The industry wants to ensure that we are not putting anyone at risk in operating these machines,” says Wimer. “Our hope is that this technology will greatly decrease the exposure to the man or woman on the ground.”
Perhaps an even bigger hurdle? “Economics,” says Wimer. “These systems will cost in the $1.2 million range. The question is how to make that much capitalization pay for itself. How can we increase production enough while maintaining a safe work environment to make these systems cost-effective?”
What Does the Future of Logging Look Like?
The importance of logging to our way of life is clear, but how do we move forward in this industry while battling these safety issues? Wimer believes pushing for more safety regulations and improving machinery is our best bet.
“We have to create a safer work environment if we want to attract young people to our industry,” says Wimer, who offered some advice to anyone considering a career in logging:
“Be diligent,” he says. “Don’t let up. Our industry has a terrible safety record.These young [loggers] need to be leaders when it comes to safety in our industry. Logging can be dangerous, but with proper training and awareness, we can greatly reduce the accidents and fatalities that occur all too regularly.”
Jeff Wimer currently works as an instructor at OSU and manages the student logging training program. He has worked as vice president for Wimer Logging Company, served as president of the Oregon Logging Conference and is the incoming president of the Pacific Logging Congress. His career in logging safety spans 20 years and includes investigations into more than 25 logging fatalities and three books on logging safety.
Timothy Moore is a writer and editor based out of Nashville, where he lives with his partner and their two dogs.
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.
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