Planning a trip abroad? Fight fees with one of these debit cards

I must admit for my next holiday I am in rather a favourable position. Yes, as I come to you with this column I will be sunning myself quietly by a pool in Cape Town. And while I chill out, my money will be working for me.

Some destination tips

Right now, things could be better with the pound. Since the EU referendum in June 2016, it has languished somewhat.

But that doesn’t mean you can’t find destinations that let your money stretch further.

Firstly, there’s my favourite, Cape Town. The Rand hit a five-year high of R15.51 against the pound in March 2017. Now, though, the exchange rate is markedly better at R19.45 (at the time of writing).

The most monumental dropper, for the Tango lover, is the Argentine Peso. A year ago, the Peso sat around ARS$22.70. Since then, it has lost a colossal amount of value and now sits around ARS$48.86.

Even New Zealand is getting cheaper. Twelve months ago, it was NZ$1.85. Now you’ll get NZ$2.03. That might not look like much but represents a 9.7% drop in value against the pound.

• Travel more, spend less: top holiday money-saving tips

Don’t let the plastic spoil your tan

Looking for countries where your money will go further is all well and good, but the benefit is limited if you then overpay for accessing your holiday money.

One of these debit cards can be a good option

Starling Bank charges zero fees for spending or cash withdrawals worldwide. It also has a handy app, which you can use to block your card if you lose it and communicate with customer support if you need help.

These apps will help you stick to a budget and give you zero fees

You can get your hands on a card by opening a current account in the app. It doesn’t do a full credit check, so won’t affect your rating if you don’t request an overdraft.

Starling will exchange your money at the Mastercard rate, so you’ll get near the true rate when you use your money abroad.

Another top pick is Monzo. Like Starling, it has a snazzy app with in-built security and customer service. The benefit of this is two-fold. These apps will give you up-to-date notifications of your spending on your phone, helping you stick to your budget, while they do the job of giving you holiday money with zero fees.

• Revealed: the real cost of holiday spending

Monzo also gives fee-free spending on debit cards worldwide. However, it is more restricted with cash withdrawals, only allowing £200 fee free every 30 days. Above this, the bank will charge you 3% on cash withdrawals. Like Starling, it uses the Mastercard rate to exchange your currency. Another benefit of these cards is they are both UK-regulated current account providers, so your money is protected by the Financial Services Compensation Scheme (FSCS) by up to £85,000.

Revolut is another option to consider. Revolut offers currency exchange at the ‘interbank’ rate, which is the rate that banks offer each other, even better than the Mastercard rate, and yonks better than what you’ll get at a Bureau de Change. Revolut, like Monzo, offers fee-free card spending, and fee-free cash up to £200 a month.

There are a couple of caveats with Revolut, however. It is not a licensed UK bank so therefore your money is not protected by FSCS deposit insurance. It also charges a mark-up at weekends on the exchange rate of 0.5% to 1% depending on the currency, so better to take out cash Monday to Friday to avoid those charges.

To get a hold of any of these cards, just download their respective apps on iOS or Android.

FEATURED PRODUCT

Starling Bank Current Account

Fee-free worldwide spending on debit card and cash withdrawals, this product has little in the way of drawbacks, offering the Mastercard exchange rate on all currency transactions. It comes with a handy app to manage spending and digitally control your card.

 

 

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My money lessons: A freelance illustrator shares her story

Niki Groom (pictured), 42, is an award-winning fashion, beauty, food and lifestyle illustrator based in Bristol. Here, she shares her experiences of managing her money as a freelancer and the recent lessons she has learnt that help her to sleep better at night.

Until recently, I felt uncomfortable talking about my finances. I’ve always been very British about it, and it’s something I believed was best kept private.

We didn’t grow up having lots of money and as someone who wanted to go into an art and design-related career, I knew that having too much of it would never be a problem.

But now I see that the idea of financial planning isn’t only for those people who are drowning in cash. Getting my finances in order and being realistic about my future has given me a feeling of security that I didn’t expect.

• British workers get their biggest pay rise in a decade as wage growth speeds up to 3.2%

In my late 20s, people I knew discussed being mortgage-free by the time they were 50 and I would glaze over, happy that I was living in the now. I felt that money almost wasn’t for me, that I needed enough to pay my rent and go on holiday occasionally but otherwise I didn’t have the desire to earn a huge amount. What was more important to me was following a career that I loved.

I graduated with a degree in fashion design in 1999 and, as I received a full grant and worked in the holidays, my student debt amounted to just £7,000. I paid that off slowly over a number of years and then put a small amount of money in Cash Isas for the years that followed.

Niki-Groom-2.jpg

Photographer: Fiona Finchett (www.fionafinchett.com)

I felt a sense of financial freedom from not having commitments such as a mortgage. I believe that’s why I felt able to make the move from being a full-time employee to a freelancer in 2010. In the early days, I was a freelance fashion designer working on a day rate here and there, but eventually I was contracted on an ongoing basis as a head of design at a clothing company, so while I was freelance I still had security.

In my late 30s, I moved out of London and bought a small house in Bristol. I used all of my savings from the previous 18 years as the deposit and left myself with nothing. Soon after that, I made the huge leap to follow my passion for illustration, something that had been just a hobby until I joined Instagram and started getting commissions.

The first couple of years went well, but 2017 was a dreadful year for me. I can’t pinpoint any one reason. I think it’s just the nature of being freelance. I earned £24,000 over the year, and my outgoings accounted for a large percentage of this. One month, I only invoiced for £300, but my mortgage repayment was more than £900. I lived with a low level of constant stress, and was in debt for over 12 months. On top of that, I saw a few friends get ill and their partners having to take on extra work to pay the bills. As a single woman, it really made me wonder how I would cope should the same happen to me.

• Five ways you could boost your income courtesy of... the taxman!

So I finally bit the bullet and asked to meet a friend who is a financial adviser. He already knew I was terrified of discussing my lack of savings and a pension and understood than my earnings vary wildly from year to year. Instead of frightening me into paying for insurance I can’t afford or encouraging me to commit to large pension contributions, he talked through my options and let me offer amounts that I felt were realistic. Thankfully, I’m having a brilliant 2018 and have extra money that I can put away.

I’ve decided to go ahead with critical illness insurance. I expect to pay around £30 a month for the next 20 years, and should I get a serious illness within this time, I’ll get a one-off payment of £50,000. Hopefully, I won’t get ill but if I do it will be a relief to focus on getting well rather than working out how to pay my bills.

I will also put £100 or so into an investment Isa every month. This will at some point mean I have a rainy-day fund for when work goes quiet or my roof caves in (please don’t let my roof cave in).

Niki-Groom-3.jpg

I’ve also discovered a small pension from working at Monsoon over 10 years ago that I’d forgotten about. I only paid in to it for a year or two, so was so surprised to see that my £4,000 had grown to around £20,000 without me doing anything. I will add £50 a month to that pot for now.

I certainly won’t be buying a yacht in my later years, but it might just help out with an electricity bill or two.

Money still doesn’t drive me, but getting on top of things has replaced my underlying fear with a sense of freedom and security. I find that when I’m not anxious about my finances I have great ideas and brilliant projects seem to come in. Right now, I feel confident I can continue to support myself as a freelance illustrator for years to come, with a little planning.

I would really encourage any freelancers who have their head in the sand about their financial future to seek out the right adviser for them and have a chat.

It might not be the most exciting hour of your life, but it might just turn out to be the most useful.

Niki Groom, Missmagpiefashionspy.com, Instagram.com/miss_magpie_spy

Do you have a lesson you’ve learnt about money you’d like to share? Please email editor@moneywise.co.uk

The first picture of Niki in this article was taken by Remco Merbis

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She Ditched Her Debt Collectors — and Raised Her Credit Score Nearly 200 Points

Tabatha Pankop spends long days on her feet. She waits tables, sometimes working double shifts for 15 hours at a time. Like most hardworking Americans, she has dreams of financial stability and homeownership.

There was just one problem.

“I just never thought having a low credit score would really impact your everyday life,” the 31-year-old Tampa server says.

Some old, and apparently unpaid, bills had hurt her credit. They included an old cell phone bill and an old power bill, among others.

“I guess a deposit or some type of rent that I thought I paid off, but I didn’t,” she says.

With her credit score dropping into the low 500s, she and her boyfriend were living in an older apartment, because that’s all her credit would allow. Pankop dreamed of buying her own townhouse, but that looked out of reach.

The aggressive phone calls from debt collectors didn’t help, either.

“Debt collectors — ah, man, they just literally harass you,” Pankop says. “They will say things that are inappropriate, and sometimes they can make you cry because they will say things that are very rude.”

That’s when a co-worker told her about Collection Shield 360, a credit repair service that helps people clean up their credit reports and deal with collection agencies.

Quick Results: ‘My Credit Skyrocketed.’

She decided to give it a shot and signed up. She quickly saw a dramatic difference in her credit score.

“Within a few weeks — maybe three months at the most — my credit skyrocketed,” she says. “Before I started with Collection Shield, I was at [about] 520, 530. Now I’m almost at 700. It’s just amazing.”

Collection Shield 360 offers two membership options:

• Basic membership provides free credit-repair services with no cost to sign up.
• Premium membership provides faster results and includes automatic monthly updates of your TransUnion credit score and collection accounts. You can sign up for premium for $1 for a two-month trial; then it’s $9.48 a month.

Here’s what it does:

• Contacts your debt collectors to have negative marks on your credit report removed.
• Provides you with credit bureau dispute letters that can help scrub your credit report.
• Connects you with consumer attorneys who provide free legal services to help you remove negative items from your credit reports.

In Pankop’s case, it helped her deal with lingering bills from T-Mobile, Bright House Networks and Verizon.

Now, Pankop has just signed a lease on a new apartment she never imagined she could get into. Next, she’ll start looking for a nice little townhouse to buy.

Then she’ll go to nursing school.

“With having great credit, I’m able to get student loans with a lower interest rate,” she says. “I plan on getting my RN within the next few years.”

For her, it’s like a breath of fresh air.

“This has put me in a position where I’m becoming an adult, instead of that young girl figuring out her life.”

Mike Brassfield (mike@thepennyhoarder.com) is a senior writer at The Penny Hoarder. He knows what it’s like to get calls from debt collectors.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.

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Tulsa Is Offering Remote Workers $10K (and Working Space) to Move There

Leave New York and D.C. to the Amazon rat race. At least, that could be the pitch for a smaller city like Tulsa, Oklahoma, which is skipping the middleman — or giant corporation — and offering its incentives directly to the workers.

Oklahoma’s second largest city is offering to pay remote workers to relocate there within the next six months. The only requirements are that you must be 18 years old, eligible to work in the United States and, you know, want to live in Tulsa.

Here’s what you get for saying OK (-l-a-h-o-m-a):

• $10,000. That includes some money upfront for relocation expenses, plus a monthly stipend. You’ll receive the rest of the money when you’ve finished the first year. And since Oklahoma is among the states with the most student loan delinquencies, the extra income could come in handy.
• Space at 36 Degrees North, a coworking space in downtown Tulsa.
• Discounted price on a new, fully-furnished apartments in the Tulsa Arts District — and your utilities will be free for the first three months.
• The opportunity to sing about how the land you belong to is grand.

Tulsa joins the nationwide race to attract the young and tech-savvy by offering money to move there. Back in June, Vermont offered $10,000 to remote workers to relocate to the land of maple syrup.

Hoping to boost its college-educated quotient, Hamilton, Ohio, has a “reverse scholarship,” which pays recent graduates $5,000 to move to the small city outside of Cincinnati — paid out in 25 convenient $200 installments.

If you’re ready to hitch your wagon for the Sooner State, fill out an application at Tulsa Remote.  

Tiffany Wendeln Connors is a staff writer with The Penny Hoarder. She knows all the words to “Oklahoma!”

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.

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Best Home Security Systems For 2019

Stone walls, crocodile-filled moats, Rottweilers — our ancestors found some pretty creative home security solutions!

Today’s home security systems feature a more tech-savvy approach, but the goal remains the same: to keep your family, your property, and your stuff safe from outsiders.

Recent innovations have fueled a new surge in home security sales.

As you shop around and compare systems, consider your home’s security challenges, your lifestyle, and your budget.

Chances are good you’ll find the system you need, whether you’re a new homeowner or just new to the home security market.

Here’s what we cover below:

1. Tech Changes
2. Monitored vs. Unmonitored
3. Which To Buy
4. Best Systems
5. Best Services
6. DIY
7. Regional Options

How Security Systems Have Changed Over Time and Recently

Believe it or not, tech-driven security systems have been around nearly two centuries. Augustus Russell Pope of Boston combined electricity, magnets, and a bell to create a burglar alarm in the 1850s.

Marketing the invention proved difficult, though, because people feared electricity as much as they feared intruders. As the decades passed, the world caught up with Pope’s idea.

By the early 20th century, electricity had grown safer and more common. The burglar alarm started to catch on.

By the 1970s, home security systems featured motion sensors. Off-site monitoring caught on in the 1980s.

Prices started to fall in the 1990s, making systems accessible for more homeowners. Now the internet has changed the industry again.

For a few hundred dollars in hardware and installation fees — or perhaps less if you install the system yourself — you can monitor your own home from your smartphone from work, school, your commute, or even while on vacation.

These new systems have drawbacks, too, so before you jump in, make sure you’re getting the security your family needs.

Monitored Vs Unmonitored Security Systems

This has become the first question to ask when shopping for home security: Should you pay more for a system with professional monitoring included?

For decades, monitoring fees prevented a lot of homeowners from getting a home security system.

Even the lowest fees can become cost-prohibitive when you pay them month after month and year after year for the indefinite future.

For those homeowners, unmonitored systems may offer the only way into the home security market. If you have a choice, though, give this question some thought.

Monitored systems come with some advantages you may like.

Advantages of Professionally Monitored Systems

Just like with cars, computers, and houses, you get what you pay for with a home security system.

A monitored system costs more, but consider these advantages:

• More seamless responses: With an unmonitored system, it would be up to you to contact fire or law enforcement officials when you get an alert about an intruder. When you’re out of town, calling 911 probably won’t work as quickly since you’d have to be transferred between areas of jurisdiction. Someone monitoring your home should be able to contact officials more quickly.
• Someone else deals with false alarms: When you’re at work or out shopping and you get a security alert from your unmonitored security system, it’s up to you to assess the risk. If the FedEx guy triggered the alarm by delivering this month’s dog food, you’d feel relieved. But when something like this happens several times a day, it starts to get distracting. A monitored system can take care of these distractions, saving your attention for when it really matters.
• Equipment may be included: Customers who buy an unmonitored system tend to be responsible for maintaining and upgrading their own security equipment. A monitored system would more likely include the equipment and, naturally, its maintenance and upgrades. In a fast-changing industry, your gear can get outdated pretty quickly.
• Protection isn’t dependent on cell service: Most of us always know where our phones are. But what happens when you’re in an area with poor service or when you lose your phone on the Slinky Dog ride at Disney’s Hollywood Studios? (I’m not judging!) You may not have access to your at-home security system alerts when most needed. A monitored service can contact authorities to protect your home even when you aren’t in the loop.

Advantages of Unmonitored Systems

Unmonitored, also known as self-monitored, home security systems have become the fastest growing segment of the market for a reason. Advantages include:

• The cost, of course: Since you could use a self-monitored home security system without paying monthly fees, you can save a lot month to month and year to year. Even if you pay a professional to install the system’s panel or cameras, you can still avoid that monthly bill.
• A perfect fit if you’re renting: The home security market has traditionally ignored renters since they don’t have the authority to install hardware or enter a long-term contract. An unmonitored system offers exactly what a renter needs: flexible service with no long-term commitment.
• Having more control: When you’re making all the decisions about whether to call for help or whether it’s a false alarm, you’re automatically controlling the response level. Since you know better than anyone what’s normal at your home, this can prevent some confusion. For example, the monitoring service may not know your brother has a spare key but does not know the alarm code. Since you know this, you can automatically filter out the police response as a viable option (unless you really have it in for your brother).
• Integrating additional home systems: Some of the best self-monitored systems are an extension of WiFi-enabled home automation. Along with feeling more secure, you can also lock or unlock doors, change your thermostat, turn certain lights on or off, and even control the garden sprinklers (and lawn mowers!), all from an app. (Traditional monitored services have started adding these features, too.)

Can You Get the Best of Both Worlds?

Wouldn’t it be nice if you could combine the best aspects of professionally monitored and self-monitored systems?

Well, the industry has been moving in that direction.

Here’s why: The rapid growth of self-monitored home security systems has grabbed the attention of the traditional home security companies.

The leading monitored services are compensating by adding modern conveniences such as app-based customer control and, in some cases, acquiring smaller, self-monitored home security companies.

And it’s not a one-way street: Some self-monitored services have added the option to have your home professionally monitored, but with a twist. You can get add-on monitoring for a fee only when you need it. That way you could still avoid the contracts and flat monthly fees.

As the market continues to evolve, I’d expect to see less separation between these two categories.

But full-time monitoring will continue to be a separator. It simply costs more money to have someone monitoring your home and responding to problems all day every day.

And in many cases, professional monitoring equals a more secure home.

Should You Buy a Monitored or Unmonitored Security System?

This gradual merging of monitored and unmonitored home security features could, ironically, make it harder to decide what kind of service to buy.

If you like the control an unmonitored system offers, you don’t necessarily have to opt for an unmonitored system anymore. You can find a monitored system with similar capabilities.

Or, if you want a monitored system because you’re out of town a lot, you no longer have to choose from only traditional security service providers. You may be able to find an unmonitored service with added-on monitoring periods without a contract.

If you can’t decide for sure, take a look at your home, your lifestyle, and your personal preferences. They can tell you a lot about your needs.

What Type of Home Do You Have?

The kind of home you’re protecting should help drive the kind of protection you buy.

Makes sense, right?

Well, it’s easy to forget such obvious things once you start comparing features, prices, contracts, apps, and customer reviews.

Take a look around your home. If you have two full floors full of windows and doors, along with a garage door and windows to consider, you’ll need a lot of equipment installed and maintained.

You’ll also have a lot more sensors to trigger false alarms. A monitored system could be worth the cost.

On the flip side, if you live in a 2-room apartment with just a few windows and only two doors, your up-front equipment investment will be less, and you’ll have fewer trigger points to keep an eye on as you monitor things while away. A self-monitored system could do the job.

How Connected Are You?

If a home security system sends an alert to your smartphone but no one is around to hear it, does it make a sound? We could debate that question for hours, and if your phone happens to be off, someone could be stealing your stuff as we contemplate.

With an unmonitored system, you’re on call around the clock via your smartphone. If you’re the kind of person who likes to unplug after work or while on vacation, you may want to lean toward a monitored security system.

If, however, you and your phone are inseparable — if you sleep with the phone beside you on the pillow — you’re likely set up well to monitor security alerts.

That said, I’d suggest using a different ringtone for home security alerts. You wouldn’t want to ignore a serious problem thinking it was just a reminder to pick up your sister’s cat from the vet tomorrow.

How Connected Is Your Home?

Most of us have WiFi at home now. Most does not mean all, though.

People without WiFi at home will have a hard time using all the features of a self-monitored home security system.

In that case, a landline-based, traditional system would be a better option.

If you have WiFi, the quality of your surveillance will depend a lot on the quality of your Internet connection.

As more devices and appliances get online — thermostats, washing machines, tablets, phones, TVs, refrigerators, lawn mowers — there’s more demand on your network. For many of us, a DSL connection just doesn’t cut it anymore.

If you have a gigabit-per-second coming across fiber into your home, your unmonitored security features should work just fine.

How Busy Are You?

A lot of us can add tasks to our regular schedules without a lot of stress. People in the gig economy or with a couple side hustles may have just the kind of schedule flexibility they need to assess threats from their smartphones.

Sure, you may have to re-arrange a few things or tell a client to hold on a second while you check the alert on your phone, but it’s still possible. People who teach school, run meetings, perform surgery, or preside over class-action lawsuits may not have time to check their phones every couple of hours.

Just like any other commitment you take on, consider the time demands of an unmonitored security system.

I’ve been in more than one meeting where someone had to check on a security alert. (Usually, something like leaves blowing onto the porch or a delivery from Amazon triggered the alert.)

Do You Own Your Home?

I referred to this earlier, but it bears repeating. Traditional home security firms more or less ignored renters for years since they didn’t have permission to install a system anyway.

With no wires to run behind walls, a tenant can usually install an unmonitored system without changing the property.

Mounting a camera in the corner is hardly different from hanging a picture, and it’s a whole lot simpler than installing a wall-mounted TV.

Plus, when you move on to a new home in a new city, you could take a lot of the system’s components with you to use at the new rental house. Of course, check your lease agreement to make sure you have permission to make the changes an unmonitored system would require.

And, by the way, if you’re a renter who would like a traditional monitored system, ask your landlord about it. He or she may be fine with the idea, especially since a system could reduce your landlord’s homeowners insurance rates.

Best Security System Providers For 2019

We’ve chewed on a lot of theoretical stuff, so let’s get into what really matters. How do systems compare to each other, and which one should you get?

A year or so ago I would have made two best security system lists: One for monitored security systems and one for self-monitored systems.

The features of these systems have blended so much I think one list will better serve shoppers. I’ll be sure to indicate whether you would need a contract to use each service.

While convenient features are important and worth weighing into the equation, the quality of the system itself still matters most.

So I’ll be giving the quality of your home security system first priority in these comparisons while giving conveniences and customer flexibility a little less importance.

Frontpoint

Contract required: Yes
Professional monitoring: Yes
Length of contract: At least one year

Remember earlier when I suggested the future of home security will likely blend the features of monitored and unmonitored systems?

I had Frontpoint in mind when I said that.

This company has led this confluence of features, offering professional monitoring plus the conveniences do-it-yourself systems introduced.

Yes, Frontpoint requires a contract and you’ll be paying for 24/7 professional monitoring. But you’ll also have a user-friendly app that can control your locks, lights, and thermostat.

With Frontpoint, you install the equipment yourself since it’s wireless, lightweight, and easy to position with included adhesive strips.

Essentially, Frontpoint offers the best features of monitored and unmonitored services in one package: professional monitoring, quality equipment, convenient features, and a do-it-yourself approach.

That’s why I’ve listed Frontpoint first.

I also like the 30-day, risk-free guarantee. If you’re unhappy with the service, Frontpoint won’t bill you and you can return all the hardware. You won’t be on the hook for the rest of the contract.

I also like the one-year contract. Most companies require a three-year commitment.

Frontpoint offers three price points. If you’d like to access recorded video surveillance from your property, you’ll need to go with the most expensive plan.

Best for: A homeowner who wants mobile control, full-time professional monitoring, and more contract flexibility than usual.
Avoid if: You don’t want to enter at least a one-year contract.

ADT Pulse

Contract required: Yes
Professional monitoring: Yes
Length of contract: At least three years

ADT, a leader in home security for almost 150 years, has also started offering the conveniences of unmonitored security in its ADT Pulse system.

Like Frontpoint, ADT Pulse still bases its services on contracts, but it has bulked up its app to give customers more control over their security equipment. In fact, you can probably incorporate your own cameras and sensors into ADT’s system since it supports many third-party hardware brands.

Unlike Frontpoint, ADT Pulse includes professional installation (and a corresponding $99 set-up fee). The result is another best-of-both-worlds approach for the customer who is willing to enter into a contract.

In ADT’s case, the contract will last at least three years, and you’d be billed a hefty termination fee to get out of it.

ADT will let you out of the contract if you’re not happy with the service, but it’s not a no-questions-asked policy. ADT will try to resolve your issues, which is a good thing if home security is your priority.

Best for: A homeowner who wants a time-tested, trustworthy home security partner with professional installation plus modern mobile-based control.
Avoid if: You’re not sure about entering a long-term contract.

ProtectAmerica

Contract required: Yes
Professional monitoring: Yes
Length of contract: At least three years

By now you’re sensing a trend: Traditional, contract-based home security companies that have adopted modern conveniences are dominating the top of this list.

And for good reason: Ultimately, a home security system should provide the best home security for you and your family, and professional monitoring tends to offer more security.

ProtectAmerica makes this list for those reasons and because of its flexible pricing options. The company has five price points.

I’d stay away from the company’s less expensive, landline-based options. They do not offer the control and integration you’d get from Frontpoint or ADT Pulse (unless you want a traditional, landline-based system). 

ProtectAmerica’s broadband and cellular-based options deliver a lot. You can even integrate the system with your Amazon Alexa or Google Home smart device for voice control.

And when an alarm goes off, you can also get a voice prompt from the system telling you which sensor or camera triggered the alarm. When you’re half asleep, this simplicity can pay off! There’s also a panic button which will automatically call for help.

Best for: A homeowner or renter who wants the conveniences of tech-based security with fewer potential complications.
Avoid if: You’re shy about a three-year contract.

Vivint Home Security

Contract required: No, unless you’re financing equipment
Professional monitoring: Yes
Length of contract: At least 42 months (but only when financing equipment)

If you’ve been looking for a no-contract home security solution that still delivers professional results, consider Vivint Home Security. Vivint offers monitoring for a monthly fee, but it doesn’t require its customers to commit to more than one month at a time.

However, if you cancel your account while you still owe money on your equipment, Vivint will bill you for the balance. So even though you wouldn’t have an official contract, you’d still be compelled to keep the service or pay a lump sum to end your connection to the company.

It’s not exactly a no-strings-attached situation, but customers do have more control month to month, especially if they pay up front for the equipment.

Vivint makes this list because of this potential flexibility and because of the flexibility of the company’s equipment.

You can essentially build your own home security and home automation package the way you want. Rather than choosing from a package, you can combine different kinds of surveillance equipment including outdoor monitoring, and different safety features such as smart lighting and thermostat control.

You can manage your system through a Google or Amazon smart speaker or you can use a more customized control panel.

Best for: A homeowner who wants to customize a security solution.
Avoid if: You don’t want to pay up front for equipment. If you don’t pay up front, you’ll have a de facto contract.

Link Interactive

Contract required: No, unless you’re financing equipment
Professional monitoring: Yes (by a third party monitoring center)
Length of contract: N/A unless financing equipment

Link Interactive rounds out my top 5 because, once again, it blends traditional and unmonitored features to give customers the best of both worlds. Link Interactive stands out because it has embraced broadband and cellular networks more thorough than most other providers.

As a result, you can talk with a professional monitor through your control panel at home during an emergency. Sometimes just knowing what’s going on and finding out easily when help will arrive can alleviate stress. 

But you should know that Link Interactive uses a third party, which doesn’t always equal a loss in quality, but it does mean the company has less control over the monitoring process.

Still, lots of Link Interactive customers have been satisfied with their service according to TrustPilot and Better Business Bureau reports, which tend to lean toward the negative for security systems.

Link Interactive lets you pay month to month instead of committing to one to three years. However, as with Vivint, if you owe money on your home security equipment, you’d have to pay the balance if you canceled service.

So unless you pay up front for the equipment or pay the balance down enough to make more affordable, you’d likely be sticking with the service for a while.

Essentially, it’s a contract by another name. Link Interactive does stand by its 30-day grace period. If you change your mind or don’t like the service, you can cancel without obligations.

Security matters most, and even though I’ve listed a couple concerns, Link Interactive has the experience (about 70 years’ worth) and the equipment to serve its customers well.

Best for: A homeowner who wants a reliable partner with the best modern conveniences.
Avoid if: You don’t plan to stick with the company for at least until you’ve paid off the equipment.

Best Self-Monitored Home Security Services For 2019

I know — I listed my five top choices for home security, and not a single one offers a completely self-monitored system.

I alluded to the reason earlier but here it is again: Professionally monitored systems simply provide better security across the board, and we’re looking for the best home security systems.

In most cases, security tends to be better because you have a staff of monitors at the ready to respond to a crisis at your home.

Most, of course, doesn’t mean all. You may have just the right work-life balance to handle a self-monitored system. Or you might just prefer to self-monitor your home security, either to save money or because you like the control.

If so, you have a lot of choices.

Let’s take a look at a few of my favorites.

Ring Alarm

You’ve probably seen this one on TV. It looks simple, efficient, and affordable.

Overall, it lives up. For only $200 or so up front, you can get a pretty solid set-up and install it yourself. Pricier packages offer more components for larger homes.

You can opt for professional monitoring (for $10 a month or $100 a year) or for self-monitoring, which is free. Ring connects to Z-wave, which means you can incorporate a wide variety of home management and security equipment.

Amazon owns and sells Ring systems, so if you’re a frequent Amazon shopper you’ll know pretty much what to expect.

Best for: A low-cost but useful alternative with professional monitoring available.

Honeywell Smart Home Security

Honeywell, whose name you may have seen on thermostats somewhere along the line, has expanded its business into smart home connectivity, including home security.

You’ll pay more, over $1,000 most likely, to get your system going, but after that, you can do a lot, including arming and disarming the system with a key fob and even integrating facial recognition.

Honeywell’s system works seamlessly with Amazon Alexa, and the system should soon also offer Google Assistant and Apple HomeKit integration.

Honeywell also syncs with Z-wave, which means you can use all sorts of wireless equipment to manage and monitor your home.

Best for: A do-it-yourself alternative that still has top-notch gear and accessibility specializing in self-monitoring.

SimpliSafe

SimpliSafe has grown in name recognition and market share. The company offers a lot of options. About 16 to be precise. They all vary slightly in the number of components and price.

Set-up fees range from about $290 to about $550 depending on how much equipment your home needs. The equipment is easy to install and use. You can go without professional monitoring and keep using the security equipment.

It tends to be harder to incorporate third-party equipment, though. So if you get SimpliSafe don’t assume you can use existing gear from previous systems.

Best for: An all-in-one system for homeowners new to security systems.

Nest Secure

If you use Google products — Google Assistant and the Android operating system, for example — Nest Secure could offer a sensible extension for your home automation and security needs.

Naturally, the service integrates nicely with Google Assistant and your Android phone or tablet. You can spend up to $500 or so getting the equipment set-up.

You can add professional monitoring on a contract or month-to-month basis.

Best for: Customers who already use Nest home automation products. Nest is part of Alphabet, Google’s parent company.

Going Cheap? Create Your Own System And Go Full DIY!

Even though the home security market has changed a lot with the success of self-monitoring systems, customers still have two basic choices:

• Enter a contract of some sort to get professional monitoring and pay less up front.
• Buy a do-it-yourself system, spending $300 to $1,500 up front, and have the freedom to self-monitor and avoid the contract.

Some customers wonder why they can’t just buy some cameras and door sensors and connect the gear to their smartphone. That may be possible, and if that’s your thing, you could save compared to buying a pre-packaged deal.

But, for the majority of consumers, I do not recommend this approach for a few reasons:

• It depends upon your ability to connect and maintain the equipment.
• You couldn’t add professional monitoring if you wanted to.
• It’s more difficult to self-monitor without an app to centralize the camera feeds and sensor data.

Regional Security Firms May Offer a Lot

I tried to limit this post to companies offering nationwide service. Some regional companies offer great equipment and great service, too.

If you’re considering a regional firm in your area, make sure to check on the following issues:

• Who monitors the company’s security systems? Is it local or third party? If third party, try to find out response times for the monitoring service.
• Are you as the customer responsible for maintaining the equipment or will the company keep it up to date? If you’re responsible, work that into what you’ll be paying.
• Does the system’s control panel have a battery backup during loss of electricity? What about backup for the WiFi connection? If not, the system could leave you vulnerable.
• If you have the ability to self-monitor, can you integrate components you already own via Z-wave or another similar service?
• What do local law enforcement officials think about the firm? Cops know a lot about home security. They may know the value of a local or regional home security outfit.

Need Proof of Results? Ask Your Insurance Agent

Our homes are personal. Having a stranger violate, steal, or destroy our homes, our property feels like a personal attack even if we’re not home and deal only with the aftermath.

People who have experienced that feeling know it can change the way you look at the world for a while.

It makes sense for homeowners (and renters) to seek some kind of protection against this danger. No system can guarantee your safety and the safety of your family.

But home security systems do get results. For proof, just ask your homeowners insurance company.

Many insurers will give you a discount on your home insurance premiums if you have a professionally monitored home security system. Insurers give this discount because they know a quality home security service will likely reduce the likelihood of a personal property insurance claim.

As you compare systems, consider what kind of security you need and whether what you’re buying fits your home. 

Security is personal. It’s up to you to make sure you’re getting a system to match your life.

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Plan Ahead to Snag the Best Travel Deals on Cyber Monday With These Steps

Best Home Warranties Available For 2019

We expect our cars and appliances, and even our coffee makers and toaster ovens, to have warranties.

But what about our homes?

Wouldn’t it be smart to have some backup when a pipe bursts or the roof starts leaking?

A lot of new homeowners think so.

There are several ways to protect yourself from unexpected repair costs. A home warranty may or may not be your best option.

Here’s what we’ll cover below:

1. Warranties vs. Insurance
2. Why Warranties Are Important
3. What They Cover
4. Types of Plans
5. Key Considerations
6. Pros & Cons
7. How To Shop
8. Best Providers

The Difference Between a Home Warranty and Homeowners Insurance

It’s easy to confuse a home warranty with a homeowners insurance policy.

Both products help protect your real estate investment from unexpected losses.

Understanding the difference can help ensure you have the right kind of protection, and it’ll help you know which resource to use when something goes wrong.

A homeowners insurance policy: protects your investment when bad things that happen to your property: fire, theft, injury, hail damage — you get the idea.

A home warranty can help pay for repairs when something at your house wears out:

• your HVAC system
• your hot water heater, or
• the sump pump in the basement

Here’s another way to think about it:

1. If a tree falls on your air conditioning unit, you could call your insurance agent to file a claim.
2. If your AC unit needs a new capacitor because the current one wore out, find your home warranty contract.

And cross your fingers while you check to see if your warranty will replace it.

Why a Home Warranty Is Important

One more key difference between homeowners insurance and a home warranty:

While helpful, a home warranty isn’t essential, unlike a homeowners insurance policy. You should always maintain adequate homeowners insurance coverage.

In fact, your mortgage lender probably won’t finance your home unless it’s adequately covered by insurance.

And if your insurance policy lapses, the lender may buy a policy for you (and send you the bill for the premiums).

Why is homeowners insurance so important? It protects you from a total loss if disaster strikes.

If a fire destroys your house, for instance, your policy could pay to rebuild. A home warranty, on the other hand, can help pay for home repairs, and not everyone needs this kind of support.

A homeowner who has enough money to pay for repairs as they come up, for example, may not need a home warranty.

But for homeowners on a tight monthly budget who worry about paying for unexpected repairs, a home warranty can offer an extra layer of security, especially considering the way one problem with a house can lead to another expensive problem.

As an example let’s say the brass fittings in your furnace’s gas manifold wear out. Not a huge deal, of course, but you’ll need a few hundred dollars to replace them.

If this expense won’t fit in your budget and you have no savings (and if it’s winter time), you may need to go without the furnace a few weeks while you get the money together.

Going without central heat could lead to frozen pipes or structural problems from contracting wood which you’d also need to pay for. So not having a few hundred dollars to fix the furnace could lead to needing hundreds more for other repairs.

If it turned out you needed an entirely new HVAC system, you’d have to come up with $8,000-$10,000 or more to pay for it.

To solve these problems, some homeowners on a tight budget may turn to credit cards or other high-interest loans, exacerbating an already precarious financial situation.

A home warranty could possibly shield you from these scenarios.

What Does a Home Warranty Actually Cover?

I say a home warranty “could possibly” shield you from home repair costs because it’s not a certainty.

Yes, the idea of a home warranty can give new homeowners some peace of mind.

Unfortunately, many new homeowners buy into that peace of mind without fully investigating the details about the warranty they’re buying.

When that happens…

• You may learn the hard way that your warranty doesn’t cover, say, roof damage from a shingle that shifted when you were cleaning the gutters last fall.
• You may find out the warranty doesn’t cover your broken washing machine drain pump since the warranty excluded that particular component from protection.
• You may learn your warranty’s contract disqualifies systems from coverage if you didn’t perform regular annual maintenance.
• Or, even for covered systems and components, you may have reached your warranty’s annual or lifetime cap on spending, meaning it’s time to start paying out of pocket.

All of this helps define the primary limitations of a home warranty: They have your back only when you’ve kept up your end of the contract — not just paying premiums, but also following the rules.

What Parts of My Home Will a Warranty Cover?

Home warranties pay for repairs (or replacements) when specifically covered systems in your home wear out.

“Systems,” though? What a broad term. Think about all the systems within a home:

• Heating and air
• Clothes washing and drying machines
• Dishwashing machine
• Attic ventilation
• Hot water heater
• Garbage disposal
• Roof, gutters, other rain diversions
• Drainage systems in the yard or basement
• Pavement in the driveway or sidewalks
• Refrigerator and freezer
• Garage door opener
• Stove and oven
• Windows and doors
• Foundation
• Electrical circuits
• Plumbing.

Before buying a home warranty, you’ll want to know exactly which systems and appliances the warranty covers.

Types of Home Warranty Plans

Most warranty companies offer a few different levels of coverage, all of which cover a specified collection of systems or appliances.

Here’s a common approach:

• Appliance Plan: Covers only appliances, including repairs or replacements as needed. Which appliances covered can vary. Some warranties may exclude well pumps, central vacuum motors, etc.
• Systems Plan: Covers only systems such as HVAC, plumbing, electrical, and so on. Which systems covered can vary. Some plans may not include less common systems such as hot tubs. A systems plan usually costs more than an appliance plan.
• Combo Plan: Can cover both appliances and systems, and should be the most expensive and thorough plan.

So how do you know which level of coverage to buy?

Matching Your Warranty to Your Home

With apologies to speculative fiction enthusiasts, no one can predict the future — at least not consistently.

If we could, a lot of our decisions would be easier. You’d know who to date and what jobs to apply for.

You’d also know the furnace in the house you just bought won’t make it through the winter.

You could see yourself there, in the future, on the morning after Christmas maybe, shivering as you dial up the HVAC repair guy who will call the system a total loss.

If you knew about the vulnerable furnace, you’d definitely get a home warranty that would replace your furnace, right?

A systems plan or a combo plan, most likely?

Well, it turns out you can learn a lot about the future of your new home from a document you may already have paid for: a thorough home inspection.

Before you buy a house, an independent home inspector should check it out, from the top of the chimney to the pillars in the basement and everything in between.

If the inspector discovers major structural or safety issues you shouldn’t buy the house.

But, if the inspector finds an expected amount of wear and tear for the age of the home, it’s probably okay to proceed with the purchase.

Key Considerations When You Buy a Home Warranty

You’ll be busy moving in, but be sure to hold onto that inspector’s report.

Before buying a warranty, go through the report, item by item, taking note of potential problem areas:

• Age: If the inspector had concerns about the age of the house’s kitchen appliances, make sure your warranty covers them.
• Plumbing: If the inspector’s report says the home’s plumbing system still has some ancient, clay-lined pipes, try to find a warranty with coverage for your plumbing system.
• HVAC: If the inspector noted the HVAC system is 20 years old, a warranty with HVAC coverage may be a must. In this case, you should also be sensitive to spending caps. A plan with a $500 cap on HVAC costs will be very little help if you’re facing a $10,000 replacement bill.

Some home warranty companies will want to conduct their own inspection of the systems or appliances you want to cover before entering into a contract with you. This is a separate inspection done for the purposes of your warranty company.

Another thing about choosing a level of coverage: If your new home doesn’t have a sump pump or an attic fan, for example, try not to pay for a warranty to cover those items.

This sounds like a no-brainer, but you’d be surprised what can happen when shoppers either don’t read the fine print in the warranty they’re buying or they buy a warranty before knowing the structural details of their new home.

Is a Warranty Right For You? Here’s The Pros & Cons

Even the best-educated guesses about which home systems your warranty should cover can be wrong.

If that happens, you’ll need to pay out-of-pocket for a repair on top of having already paid hundreds of dollars for a home warranty that didn’t help.

Talk about a frustration.

This is exactly why a lot of people have no interest in home warranties.

Here’s my take: Like so much else in your financial life, there’s no one-size-fits-all approach to getting a home warranty.

Analyze your specific situation. Become the expert on what you need. Then you’ll have a pretty good idea of whether you need a warranty.

When a Warranty Makes Less Sense

While I can’t decide for you whether to get a home warranty, I do have some thoughts about when a warranty makes less sense:

• When you’re buying new construction: When everything in your home is new, including the appliances and HVAC system, repair costs should be minimal over the first few years. You may decide to buy a home warranty later. And please understand even new things can break; we’re just thinking about generalities here and assuming your newly constructed house meets codes.
• If the systems you’d like to cover have their own warranties: If your water heater and your washing machine still have their manufacturer’s warranties (and they’re the systems you’re most concerned about) a home warranty may not be necessary. Many HVAC companies, for example, offer lengthy warranties and service contracts on their equipment.
• If you can save your own money for repairs: Rather than paying, say, $60 a month to a home warranty company, you could put that (and hopefully more) money in the bank each month, earmarked for home repairs. You’d be risking a repair cost before getting enough money saved, but after some months and years pass, you could have your own self-funded warranty.

When a Warranty Makes More Sense

On the other hand, some situations would make me lean toward getting a warranty:

• If you’re buying an older house: An older home has a lot of charm, but it may also include a lot of outdated systems. Older systems are more likely to wear out. And when they wear out, they’re less likely to be successfully repaired. If your new house is 20 years old or older, give a warranty some serious thought.
• If the mortgage will already be a strain: Will your new house payment already stretch your family budget to the limit? Facing an unexpected repair on top of the mortgage payment could wreak havoc. The right warranty could help a lot.
• If one or two specific home systems have you worried: Do visions of visiting electricians dance in your head every time you open the breaker box? Your sense of concern may be telling you something. A warranty could shield you from the bill if you needed a costly overhaul. Just make extra sure the warranty covers the system you’re worried about.

How to Shop for a Home Warranty

The most important thing now will be to make sure your new warranty matches you and your home.

The best warranty will address the home systems you’re most worried about, will most likely come through when you need it, and will fit within your budget.

Finding such a warranty can be a challenge.

How (Most) Home Warranties Work

Unlike electronics or small appliances, you can’t take systems in your home back to the store or have the manufacturer simply ship you a new one.

You probably need a specific part repaired or replaced to get your system up and running again.

So here’s how home warranties tend to work:

1. You buy a warranty and pay its monthly or annual premiums. The warranty company may want to do an inspection.
2. When a home system covered by the warranty breaks down, you find your home warranty documents and call the number.
3. The customer service rep determines your eligibility and sends out a technician.
4. You pay the technician a service fee, usually $60 to $125.
5. The technician fixes the problem and sends the bill to your home warranty company.

It seems simple enough, but sometimes things don’t go as planned. Sometimes you discover (or your customer service rep discovers) language in the fine print excluding from coverage the exact repair you need.

Other times the warranty company may not be able to find a technician to fix your problem.

In that case, you have to find someone, pay for the fix, then try to get reimbursed.

There’s a lot of potential for frustration.

Knowing Where to Find Warranty Offers

Buying a house opens the floodgates for home-related product offers.

You’ll soon have a mailbox full of ads for mortgage insurance, pest control contracts, lawn care companies, and, yes, home warranty offers.

For the most part, I’d ignore all of those and do some independent research of your own.

 See which companies operate in your state. Check out their online reviews.

But don’t stop there:

• If you liked your home inspector, ask him or her which warranties to consider.
• If you live in a neighborhood where the houses are similar, see how your neighbors’ properties have fared and if they recommend a specific warranty company (or if they advise staying away from a specific company).
• See if your realtor has any insight from previous customers who bought warranties.
• Call a few local contractors or home repair experts. They’ve probably worked with warranty companies before and know which ones work well.

Online Reviews: They’re Usually Really Bad!

Few home-related products incite more anger than a home warranty that would not pay for a necessary repair.

Look no further than online forums which are filled with 1-star reviews, horror stories about loopholes allowing warranty companies to avoid payment, and tales of unsympathetic customer service reps.

Of course, people who had bad experiences post more reviews than people who felt like everything went OK. Such is the nature of online reviews.

They’re helpful, but not exactly representative of the entire spectrum of customer experience.

So you’ll need to mix in some research of your own, which means reading the fine print and calling to ask questions before signing a contract.

Read the Contract Before Making it Official

Once you’ve narrowed down some companies to consider, ask for some detailed information from each company on your list.

A company should be willing to give you a copy of the contract with all its fine print so you’ll know exactly what you’re agreeing to.

If you have trouble getting details from a company, move along to someone else. A company that won’t cooperate with potential customers may be even less helpful once you’ve signed up.

Be sure you find out:

• Whether the company has a wide network of technicians in your area capable of making repairs quickly.
• How you can go about getting reimbursed for a repair if ever necessary.
• Whether the company has 24-hour customer service or if help will be unavailable after hours or on holidays and weekends.
• If specific components of any covered systems are excluded from protection.
• If there’s a waiting period after signing the contract before you can file a claim? If so, how long? (Hopefully not more than 30 days.)
• What are the annual or lifetime caps on your warranty’s payouts? If they’re too low, the warranty will more likely be a waste of money.
• Will the warranty company want to do its own inspection?
• Will the contract require you to pay for regular maintenance in order to maintain compliance?

Best Home Warranties: Our Top Five Choices

We expect to be happy customers when shopping for books, shoes, lattes, and smartphones. If we’re not happy, we’d probably take the merchandise back.

Yet when shopping for a home warranty, shoppers may hope only for a product that doesn’t make them feel angry or cheated.

It’s a low bar, so we sought to raise it. We looked for companies that would offer the flexibility and reliability you’d need to build a warranty matching your home’s needs as we’ve been discussing.

To save time, we didn’t consider companies unless they had a standard contract posted on their site or quickly made available after a phone call. (We also didn’t consider companies without an online sample contract because a potential customer shouldn’t have to call and ask for this kind of standard information.)

We compared contracts and assessed the pros and cons, but we didn’t actually buy or try to file a claim with a warranty.

Every situation is different, but here’s the deal: If I were buying a new home and needed a warranty, these “best companies” would be where I’d start.

1. American Home Shield

All our “best home warranty” companies hold up well to scrutiny based on their contract, terms of service, spending caps, and customer service experience.

So why put American Home Shield at the top of the list?

Because of its “build your own” warranty option.

Remember how we talked earlier about making sure your warranty covers specific areas of concern in your new home?

American Home Shield’s customizable approach breathes new life into this goal. You can choose up to 10 systems or appliances to be included in your warranty.

Many companies’ preset levels of coverage cannot be customized, making it harder to match a warranty to your exact needs.

For example, what if you could get by with a cheaper appliance-only plan except for your concern over the older pipes in the basement? In that case, you’d usually have two traditional choices:

1. Get the cheaper appliance plan and hope for the best.
2. Upgrade to a combo plan that would include the plumbing but also add in systems you weren’t worried about.

American Home Shield’s “build your own” warranty introduces a third choice: a plan allowing you to include only what you need.

Let’s be clear: It’s not truly a la carte. You can’t pay a lower price if you choose only five systems or appliances to cover, for example. But by mixing elements of an appliance plan and a systems plan, you can build a more precise warranty.

And customization isn’t American Home Shield’s only strength.

Its payout caps exceed what many customers have come to expect from a warranty. The warranty will pay up to $3,000 for most systems it covers.

The company offers an easy-to-understand contract by industry standards and has an easy-to-use Web site for online claims filing and tracking.

American Home Shield serves customers in all states (except Alaska) and has an adequate network of technicians in most cities.

Monthly costs start at $35 for a basic plan and about $40 for the build-your-own plan.

2. TotalProtect

While TotalProtect doesn’t offer a customizable warranty, its generous caps on repair costs got our attention.

In fact, TotalProtect does not have any caps at all on many major categories such as kitchen appliances.

So if you ran into a string of bad luck and three major appliances gave out the first year, you could still avoid paying out of pocket for repairs or replacements.

Other strength of TotalProtect:

• Its network of about 40,000 certified technicians around the country, about 25,000 more than American Home Shield.
• Its 180-day guarantee on parts and repairs for covered systems and appliances. This means you wouldn’t need to pay a second service fee for the same problem if it re-occurred within 180 days. Many companies offer only 30- or 60-day free recall periods.

TotalProtect’s most comprehensive warranty usually costs about $5 more than American Home Shield’s in most markets, which may be worth it if you like the 180-day guarantee and the more extensive network of technicians.

3. Sears Home Warranty

Sears Home Warranty also has a 180-day free recall period and a high cap on expenses.

Except for repairs on the most expensive line of appliances — a professional, high-capacity clothes washer, for example — Sears will pay up to $10,000 on repairs.

What gets Sears onto our list is its extra features. Warranty customers can get a free HVAC check every year, which can prevent breakdowns at awkward times such as holidays or during extreme weather.

Sears Home Warranty customers can also get discounts on oil changes and tire rotations at Sears Auto Centers. This bonus is available mainly on the East Coast, Michigan, and California.

Sears still has some significant name recognition around the country and an extensive team of qualified home repair technicians. Its warranties also tend to cost more, plan for plan, than American Home Shield’s.

4. America’s 1st Choice

America’s 1st Choice Home Warranty allows for some customization that caught our attention.

You can’t simply build your own plan as with American Home Shield, but you can add on specific systems or appliances to a preset plan. This could help avoid a full upgrade to the next highest plan.

Caps for payouts fall below the previous companies on the list, but they’re still higher than many other plans. Typically, America’s 1st Choice would cap appliance repairs at $1,500 and systems repairs at $2,000.

But the premiums also run a little lower, and the warranty features a uniform fee of $60 for service calls. Other plans have different fees for different kinds of service calls that may range all the way up to $125.

America’s 1st Choice has been in business for only about a decade, but so far it seems to be a solid choice, especially if you’re looking for a reliable but lower-cost option.

This combination of solidity and value placed it on our list.

5. Choice Home Warranty

Choice Home Warranty makes this list because of its flexibility.

Like America’s 1st Choice, Choice Home Warranty allows customers to adapt preset coverage levels to make them fit their specific needs.

Choice Home Warranty does not cap overall annual expenses but it does impose a $1,500 cap on each individual appliance or system within the warranty.

You can find a plan for about $30 a month, and the warranty has a uniform $60 fee per service call.

We also like Choice’s always-open customer service. You can call any time of day, any day of the week, even on holidays. We also like the online claims process.

Choice’s per-system or appliance caps are lower than many of its competitors, and we’re not huge fans of that, but premium costs and service costs are also lower.

The combination of flexibility and value helped secure Choice Home Warranty a place on this list.

Other Companies to Consider

I’ve stressed it so many times now, but it’s worth saying again: Your home warranty should match your home.

This need for flexibility helped propel several companies onto the above list of Five Best Home Warranty Companies.

Several other companies also provide reliable coverage.

I’ll include them here as honorable mentions:

• Select Home Warranty: Throws in free roof coverage and also has customer service reps available all the time. Select Home Warranty offers sign-on specials throughout the year if you’re trying to save.
• The Home Service Club: Works hard to provide good customer service and it shows in their positive online reviews. Premiums are higher than their competitors. So are service fees which can range up to $125 per visit.
• Total Home Protection: Offers the first month free and does not limit your number of claims. Total Home Protection offers flexible options and has many qualities of a Best Five company, but it lacks experience. The company started in 2016.

Become an Expert on Your Home and Your Contract

A warranty supporting the systems or appliances you’re most concerned about in your home can protect your monthly budget from big hits.

Since you’re the expert on your home, you’ll know what systems or appliances need the most support. (If you’re just moving in, check that home inspector’s report.)

You probably aren’t an expert on the home warranty contract you’re looking over, though.

Before signing it, read it thoroughly. Become an expert. Take note of what the contract requires of you, the homeowner.

If you don’t hold up your end of the bargain, or if you’ve exceeded the plan’s spending caps, the warranty won’t help when you’re facing a huge repair bill. This is the source of some, but not all, of the frustration which customers have with home warranties.

If you already know you won’t do what the contract requires, such as annual check-ups on all the covered systems and appliances, don’t sign it.

You’d be better off saving those premiums toward repairs or finding a warranty with fewer requirements. More importantly, though, when you become an expert on the contract you can use it to your advantage.

If a customer service rep thinks the repair you need isn’t covered, you’ll know better.

You’ll know what questions to ask and what answers to expect.

At that point, you’ll know you have a home warranty in place as a line of defense against out-of-control and unexpected home repair costs.

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Filing for Bankruptcy Could Cost You Nothing With Help From This Nonprofit

Bankruptcy can provide a fresh start for people who are overwhelmed by their debt.

But deciding to throw up that white flag is one thing. The actual process of completing the bankruptcy can be a huge barrier for people who are already feeling down and out.

That’s why a Brooklyn-based nonprofit wants to make it easier and cheaper for people to file for Chapter 7 bankruptcy — while working to chip away at the stigma against bankruptcy, too.

Upsolve was developed by Rohan Pavuluri and Jonathan Petts, who opened a brick-and-mortar legal aid clinic in 2016 before realizing that a software product could help far more people than they could accommodate in their office. At the time, Pavuluri was still a student at Harvard.

So far, several hundred people have filed their bankruptcy forms via Upsolve. The website has helped forgive more than $10 million in debt.

And the organization hopes it’s just the beginning.

How Upsolve Makes It Easier to File for Bankruptcy

Those considering bankruptcy can visit the Upsolve website and answer 10 questions to find out if they’re a good fit for Chapter 7 bankruptcy — the kind Upsolve facilitates.

Pavuluri explained that people seeking Chapter 7 bankruptcy, commonly referred to as liquidation bankruptcy, are often not just down on their luck. They’ve usually faced long-term economic disadvantages.

He said all of Upsolve’s users are also under the median income; if you have a higher income or hold considerable assets, Chapter 7 bankruptcy is likely not a good fit.

Next, the website asks another series of questions, inviting users to upload photos of their pay stubs and other necessary documents to populate bankruptcy-filing forms. An Upsolve staff member reviews these forms before the user files them with their local bankruptcy court. Then, the user comes back to the Upsolve site for credit and savings education.

Credit counseling is legally required for individuals filing for bankruptcy. But Pavuluri said that component of the process (although provided by certified organizations) lasts just an hour or two.

And Pavuluri said that just isn’t enough.

“We don't just help people get back on their feet, but [we] make sure that they stay there and thrive postbankruptcy,” he said. “So our real mission isn't just to help people file for bankruptcy, it's to financially empower people and rehabilitate them when they're in severe financial distress.”

The cost? Zero dollars for each and every user, instead of the $1,000 — or more — an attorney may charge to assist a client filing for bankruptcy.

But after users started returning to Upsolve to ask how they could contribute, the team began suggesting a $25 donation for those who have been satisfied with their experience.

“It's a good way for us to be accountable to our users,” Pavuluri explained. The nonprofit has supplemented fundraising sources with this very tangible (but optional!) feedback from users.

Should Filing for Bankruptcy Be Any Easier?

More than 472,000 people filed Chapter 7 bankruptcy in 2017, according to government data. That number has been dropping since hitting its peak of more than 1 million per year in the period immediately following the recession.

But a recent study analyzing data from the Consumer Bankruptcy Project found that the number of bankruptcy filers age 65 and older has increased almost 500% since 1991. And Pavuluri said that an estimated 5 million to 10 million people in total could benefit from the fresh start bankruptcy provides.

“We think it should be easy for people who are in financial distress and need to be able to access their lifeline to be able to get a fresh start,” Pavuluri said.

He said the access to that fresh start could help people struggling with debt to become more involved participants in the economy.

“Bankruptcy improves people's credit,” he said, “because [they] now all of a sudden have higher credit scores post bankruptcy, and bankruptcy rehabilitates. So they can all of a sudden now be active members of the economy where they can get access to credit they didn't previously have access to.”

But Leslie Tayne, a debt-relief attorney based in New York, said bankruptcy filers won’t see those benefits immediately. “Your credit score will certainly go down” upon the filing and reporting of bankruptcy, Tayne said. “However, how much it drops will depend on where the score started.”

Chapter 7 bankruptcy remains on your credit report for 10 years, although your score can bounce back over time. “How much and how quickly the score rises will depend on the individual and specifics to that person’s credit,” Tayne said.

But Pavuluri stands behind his primary fight: to reduce barriers to bankruptcy filing.

One of the major challenges for Upsolve is the persistent stigma of admitting financial failure through bankruptcy, some of which was developed by lenders who remind borrowers that it’s immoral to dip out on your debt, Pavuluri said.

“People are embarrassed to file, and they should not be,” Pavuluri said. “Bankruptcy is one of the lifelines… available, and people should be happy to take advantage of it in the absence of adequate government support.”

Lisa Rowan is a senior writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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An Iterative Approach to Improving Your Finances (and Your Life)

My previous career (before “freelance writer”) was in software development. I worked in a research lab where I wrote custom software solutions for research scientists who wanted nice interfaces to do basic data mining tasks into a pretty large database of scientific information. This required me to not only know how to code, but to have a pretty robust understanding of the data and what kinds of questions the researchers were asking.

This was a big project, and I was pretty much the lone programmer working on it (there was also a “data farmer” who did a lot of the data collection and organization). The scale of the project was far beyond what I had ever learned about in computer science and software development classes, so one of the things I had to teach myself was software development strategies. How do you even manage a project like this?

One core component of the system I ended up using was known as the Deming cycle, or PDCA. PDCA is short for plan-do-check-adjust, and actually represented the constant cycle of how I worked. It was basically a four step cycle that I did again and again and again and again in the workplace.

Plan simply meant that I learned about a new feature that a researcher wanted (or I wanted to improve some internal aspect of the software to make it run faster or to make it easier to do other things). I’d sit down with the problem I wanted to fix, think about it, and come up with a solution described in general terms (not code, but written English or a diagram). This usually started with emails or meetings and ended with a bunch of diagrams and writing on a whiteboard. I would intentionally focus on small steps here – rather than promising some big transformative change, I would break up that big change into the smallest bits I could that would be evident to the people who were interested and then work on one bit at a time.

Do meant that I implemented that idea from the whiteboard. I’d sit down and actually write the code for it. This would be done on our “test” environment, where I could write new code and roll out adjustments without actually changing the main software that anyone was using.

Check meant that I’d go back to the researcher and ask whether or not this was the solution that they wanted. I’d point them to the test environment that had the changes that I thought they wanted and they’d use it and we’d talk about whether I nailed what they wanted or something different was needed.

Adjust meant that I worked on the tweaks they wanted (at which point I jumped back to “do” or possibly briefly to “plan”) or I moved the changes to the production server, at which point I moved back to “plan.”

My entire job centered around this cycle, and over time, it meant that the software that I had written got better and better, small step by small step. It moved from being a bunch of junk code that I wrote for the earliest demos to gradually being a well-commented and organized library of tools and functions behind a nice interface.

One good term for that kind of bit-by-bit improvement is iteration. Iteration simply means that you’re making small improvements to something over time by repeating a process, with each repetition of the process making the core thing you’re working on slightly better.

Over the course of a year, I went from nothing to a pile of functional but not-very-elegant code (think of something held together by duct tape), then over the next few years, I sculpted that rubbish into something pretty worthwhile. As far as I can tell from the outside, a lot of the code that I wrote seems to still be in use today. That was all accomplished with an iterative PDCA approach.

Great, so what does this have to do with personal finance?

The topic of PDCA came up again recently in a conversation I had with a relative who is in the computer programming field. As I was describing some of the ins and outs of my own home-brewed PDCA strategy, I began to realize that I actually use PDCA in a lot of aspects of my life today, including personal finance.

I’ll use a few very tangible non-financial examples to show what I mean.

Taekwondo As I mentioned before, my entire family practices taekwondo at a school that focuses on defense and balance and agility and general fitness. I really enjoy it, but I’m not very good at it. I’m using PDCA to get better at it.

Plan I go to class and notice something that I’m doing wrong or could be doing better, so I talk to a black belt about how I could improve it. They usually give me a handful of suggestions, like working on my strength or my balance or my flexibility, usually with specific suggestions about how to work on it outside of class. I plan to work on those suggestions daily at home until the next class.

Do I take that suggestion and work on it at home. It might be something like doing a lot of planks or holding a particular stance as if it were a yoga pose. I do it a bunch at home, as instructed.

Check I go back to class and do what I practiced at home with a black belt watching me. Theoretically, the practice helped raise my kicks or improve my balance a little bit, though the benefit is usually incremental.

Adjust They either point out room for additional improvement (at which point I go back to “do”) or note that I seem to have figured it out (at which point I go to “plan”).

Daily routine My daily routine pretty much follows this pattern, particularly on work-heavy days where the children are in school.

Plan I do this in the morning, where I write in my journal and come up with my objectives and tasks for the day. I’ll dump out a few pages of thoughts onto paper, extract some things I should be doing from those writings, and transfer them to my to-do list. I’ll also check over things left over from yesterday and new things that are due in the near future or are part of ongoing projects. This makes for a fat to-do list.

Do I spend a large chunk of the day just knocking stuff off of my to-do list. I want to take that fat to-do list and make it disappear – or at least make it very thin.

Check I go back through my to-do list and make sure I haven’t missed anything, particularly anything important. I also make sure that there aren’t any completed items that imply new things I need to do in the next day or two.

Adjust Usually, this involves me deleting things that weren’t really important and moving things that are really important to tomorrow’s to-do list, which brings me right back to “plan.”

Marriage I even take the same approach to our marriage, believe it or not, even though the approach might not always be a conscious one. In this case, what I’m really iterating is my understanding of Sarah’s “love language” – what exactly makes her feel loved and secure? Am I doing that consistently?

Plan I reflect regularly on the state of my marriage and try to look for instances where there are problems or where I might have been just taking something for granted. How can I fix that problem before it goes from minor to major? How can I show appreciation for something I may have been taking for granted?

Do I move forward on that idea. Maybe it’s something like writing Sarah a sweet note and slipping it into her work bag. Maybe it’s doing a few chores that she loathes. Whatever my idea is, it’s execution time.

Check I watch and see how Sarah reacts to it. I don’t just assume that it’s the perfect thing or even a wholly positive thing. Maybe it’s meaningful or maybe it isn’t. It’s all about honing in on her “love language.”

Adjust If this worked well, I incorporate it into how I speak Sarah’s love language. If it didn’t, back to the drawing board. In either case, it’s back to “plan.”

As you can see, I take an iterative approach to almost everything I do in life. Sometimes it results in seemingly transformative change. Sometimes it results in really minor changes that will barely be noticed. Always, however, it results in either some sort of improvement on how things were or, at the very least, a realization that the way I was doing things was actually the best way.

You can adopt this same iterative approach to your finances as you slowly migrate toward your own financial best practices. Here are a few ways you can use an iterative PDCA approach with your own personal finances.

Monthly budgeting Many people view a monthly budget as being a static document, something you set up once and follow as if it were law. Unfortunately, that’s a route to failure, because your initial efforts at budgeting are likely to be a poor reflection of your actual spending. An iterative approach is much better, where you use the PDCA cycle to constantly improve your budget.

Plan by making an estimate of how much you actually spend in each budget category using the data you already have. What have you spent in each category in recent months? Use that as your initial budget, with some gentle cutbacks in a few areas.

Do your best to live by that budget for a month. Try to keep your spending reined in to match what you budgeted in each area. Pace yourself by keeping spending low early in the month so you don’t “hit the wall” halfway through.

Check to make sure that you’re not going over your budgetary restrictions and that those restrictions make sense. Did you come up with a realistic target for your food spending for the month? Your entertainment spending? Your clothing spending? How about household supplies?

Adjust your budget for the next month based on what you observed when you checked the outcome of your budget for the prior month, and then go right back into “plan” and “do.”

Investing also follows this pattern quite well. It starts with a clear investment plan, which you implement, check, and adjust regularly. Here’s how that works.

Plan by figuring what your goals are, how you plan on reaching those goals, and what you can do step by step along the way to get there. How aggressive will your investments be? Think through the options carefully.

Do this by simply putting the plan into action. Set up an automatic investment plan to pull money out of your paycheck or your checking account regularly and invest automatically according to the plan you set up.

Check your investments once in a while to make sure that you’re matching your asset allocation and that the investment is behaving as desired.

Adjust if you notice that your asset allocation is starting to slip or you’re unhappy with your investment performance. In general, this is done by altering your contributions rather than moving investments around, so you head back to the “plan” part and adjust your plan accordingly, then move on through the cycle from there.

Meal planning uses this iterative approach really well, too. Doing a bit of meal planning can save you a ton of money going forward. This cycle focuses heavily on the “plan” section, with checking and adjusting mostly serving to help you create a better plan for future cycles.

Plan by figuring out what meals you want to have over the next week. You can do this by looking at what you have on hand, what’s on sale at the grocery store, and which days leave you with some breathing room to cook and which days do not.

Do by going to the store, buying the groceries on your list, taking them home, preparing meals throughout the week according to your plan, and enjoying them (hopefully).

Check to ensure that you actually followed your plan. Did you make the meals you planned? Did you have all of the ingredients? Did you enjoy the meals? Did it save money compared to eating out? Could you have saved more money? Are you meshing things well with your calendar? Are you doing meal prep days?

Adjust your meal planning strategy going forward by integrating new meals into your regular roster, dropping meals that weren’t a hit, and trying new techniques to make sure you’re not just re-buying food you already have. This cycles right back to the meal “plan” for the next week.

Routine spending also falls under this umbrella. Almost every single thing you spend money on can be iteratively adjusted until the spending is actually meaningful or it’s dropped from your routines.

Plan by considering what you’re actually going to spend money on today (or this week, or whatever time period you’re considering). Decide what purchases and expenses are actually meaningful and which aren’t, and choose to drop the ones that aren’t.

Do it! Stick to those spending ideas! Simply don’t spend money on the things that you’ve decided aren’t meaningful. Save your spending for the things you decided are meaningful and worthwhile.

Check and make sure that the things you spent money on over the last week were actually meaningful and worthwhile. Were they? Did you not buy things that you now regret skipping over?

Adjust your expectations for spending accordingly. If there were things you missed out on that actually matter to you, bump up that spending. If you spent money on things that were unimportant, downgrade or delete that spending. Then, cycle right back to the “planning” for the next week.

The thing to remember is that an iterative approach to things in your life means that you’re going to gradually inch toward the best way of doing things for you. You might start off with someone else’s ideas or models, but eventually, you’ll adjust them until they fit you like a glove.

In general, iteration is a process that doesn’t end. As long as you’re doing something and you want it to be better, this type of iterative process will continue helping you refine it. Over time, however, the refinements will be smaller and smaller and will become merely reactions to the other changes going on in your life.

The thing to remember here is that the core of iteration – particularly this type of iteration – is reflecting on your life and then translating that reflection into a small amount of change that you actually execute. This isn’t about radical transformation in a week or a month (though your first approach or two might be radical). Iteration is powerful in that it takes a routine that somewhat works and nudges it into something that’s nearly perfect for you and your specific requirements.

For me, iteration is incredibly powerful and it has resulted in some powerful changes in my life. I notice that when I use an iterative approach on specific areas of my life for a long period, that part of my life winds up in a much better “default state” than before, where my routine is simply better.

The thing is, there’s only so many iterative processes you can really handle at once. Use this kind of process on just a few specific things in your life and buff them to a shine, then move onto other areas. Don’t try to tackle everything at once or else you’ll be spending all of your time planning and checking with little time for actually doing. “Do” is the key; “plan” and “check” and “adjust” are the refinements of “do.”

Good luck!

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