I’m going to go out on a limb and guess that you’d love to be featured in holiday gift guides this season. Who wouldn’t want their products featured in big-name magazines or on the morning show circuit? These big players seem to be able to ‘tag’ what’s hot this year and what better way to […]
The post 7 Tips for Getting Your Product Featured in a Holiday Gift Guide appeared first on The Work at Home Woman.
Buying Christmas presents can cost a fortune – but there are ways to bag a bargain. Here are 17 tips, so you can avoid paying full price
The run-up to Christmas can be the most expensive time of year, with UK households typically splurging £726 on festivities – with half of this going on gifts, according to GoCompare Money. Here are our top tips on how to keep costs down but still get into the festive spirit.
Gone are the days when the sales start on Boxing Day or even in January. In recent years, several sale days have crept into the calendar ahead of Christmas, particularly aimed at online shoppers. If you’re savvy, these early-bird sales can offer a great way to bag a bargain.
This US sale day – traditionally after Thanksgiving – is now popular in the UK and lands on 24 November this year.
You can find good discounts, but be sure to track prices of anything you’re planning to buy, though, to make sure you are getting a bargain. Remember, not all discounts will be better than you could have got before – or after – the event. Shopping comparison sites, such as Idealo.co.uk, let you track an item’s price history across a range of retailers. Camelcamelcamel lets you do the same for Amazon.
“Before you out head out to the shops, scroll through your favourite store’s Twitter feed, as it may update it with exclusive deals only available on social media,” says Darren Williams of Promotionalcodes.org.uk.
“Some websites have been known in recent years to launch their Black Friday sales up to a week before the big day, so watch online to see which sites are jumping the gun. Most importantly, don’t buy for the sake of it,” he says.
If visiting the shops on Black Friday is out of the question, Mr Williams recommends waiting until Cyber Monday, which this year falls on 26 November, to grab bargains. “Many online stores wait until this day to further slash prices,” he says.
Give back to your favourite causes on 27 November – the day after Cyber Monday – by Christmas shopping in charity shops.
Research by the Charities Aid Foundation, which runs Giving Tuesday (Givingtuesday.org.uk), found that more than half of us has given away or donated an unwanted Christmas gifts to a charity.
Head to Amazon and search under ‘warehouse deals’ to track down used or warehouse-damaged items from toys to wine. You could find items that are cheaper simply because the box has been opened. We spotted a ghd air hair dryer with ‘a minor cosmetic imperfection’ for £82.66, compared to £99 at Asos.com.
These are where brands go to sell new, end-of-line or refurbished items – and are often cheaper than elsewhere. Argos, Currys, Debenhams, Lakeland, Sports Direct, Superdry and Tesco all have eBay outlets. We found an Acer Chromebook 14in laptop for £179 (plus £3 delivery) at Tesco, saving £41 – complete with a 12-month Tesco outlet warranty.
“This is an Aladdin’s cave brimming with second-hand tat, but some magic lamps,” says Sophie Phillipson of HelloGrads.com. “Keep your eyes peeled for things that are even better vintage than new, such as leather goods, between now and Christmas. Refi ne your search to your local area, so you don’t have to spend money to collect.”
Check out discount codes from HotDeals.co.uk, MyVoucherCodes.co.uk and VoucherCloud.com, which offer anything from free delivery to percentages off items. Also check out for top weekly deals at Moneywise.co.uk/codes.
You can also save time by using free internet browser add-on Pouch (Joinpouch.com), which shows the best voucher codes as you shop online.
Make extra savings by shopping through cashback websites such as TopCashback.co.uk and Quidco.com. Simply click through to your chosen retailer, shop as normal, and you will get a percentage of your money back. With TopCashBack, you can withdraw cashback via BACS, PayPal, Amazon Gift certificate, Love2shop card, M&S e-giftcard or store giftcards.
Subscribe to your favourite retailer’s newsletters in advance. “Newsletters are often laced with special discounts, free delivery codes and sales previews. If you can stomach the frequent emails, they can save you a small fortune,” says Hannah Maundrell at Money.co.uk.
However, make sure that receiving a stream of special offers from your favourite retailers doesn’t tempt you to buy things you wouldn’t have otherwise. If so, you can always set up a separate email address for them so that you only browse through them when you intend to buy something in particular.
If you leave an item in your online basket, many retailers will track your shopping activity and nudge you with an email including a discount code to motivate you to buy. It took just two hours for Buyagift.co.uk to offer us a 15% off voucher when we tried this. Remember to log in when browsing and adding items to your basket, so the retailer can track you.
A tough ask for reserved Brits, but don’t be afraid to haggle when shopping for bargains on Gumtree or in Christmas markets and on the high street. “Buy in bulk to negotiate a lower price, or make the person serving you aware that it’s cheaper online. The most important thing is to be brave. If you don’t ask, you don’t get,” advises Miss Phillipson.
Save a typical 6% by snapping up unwanted giftcards from the likes of App Store & iTunes, Jack Wills, Pandora, Halfords, John Lewis and New Look, using online marketplace Zeek.me. You will be charged a 30p transaction fee.
If you regularly use a card that offers cashback or rewards on spending, check how many rewards points or cashback you’ve accrued and how you can spend it. You may find you have enough to get a gift with your points – for instance, last Christmas I bought stocking fillers with Boots Advantage points. Helpfully, Stocard stores your loyalty cards in one free app so you don’t have to search your wallet at the checkout.
Some banks offer customers cashback deals based on spending habits. Lloyds has everyday offers with up to 15% cashback when customers shop with retailers including Morrisons, Superdrug and New Look. You activate the deals when you log in to your online bank account. Halifax has a version called Cashback Extras and Barclays offers Blue Rewards. To check what is on offer, using Moneyfacts.co.uk.
Visit factory shops for discount prices on fashion, beauty, jewellery, toys, electrical items, to name but a few. Typically, items are seconds or from last season, and up to 60% off. Gretna Gateway in Dumfriesshire houses M&S Outlet, Thornton’s and The Body Shop, while Oxfordshire’s Bicester Village has high-end brands Calvin Klein, The White Company and Mulberry. To find outlets near you, visit Shopping-villages.co.uk.
16 Delivery savers Compare prices and send gifts using discount parcel-delivery services. For example, sending a 4kg medium, signed-for next-day parcel in the UK costs £8.69 with DPD, compared to £16.85 with Royal Mail. With all discount couriers, check the list of prohibited goods and consider paying extra for insurance as it can be hard to make a claim if things go wrong. Meanwhile, Amazon offers free delivery if you spend £20. If your order is a few pence short, SuperSaverDeliverytool.com checks Amazon for filler items to bring up your total, so avoiding delivery costs.
Agreeing present limits with loved ones and sticking to a budget will set you in good stead for this year.
But Karen Barrett, chief executive of Unbiased.co.uk, says it’s essential to budget for next year: “Every year, we’re caught out by Christmas, as if we didn’t know it would be expensive. But whenever you have a known cost ahead of you, you can spread it evenly and make it manageable.
“Make a note of everything you spend this Christmas, divide it by 12 and save that much monthly into a regular savings account. Set up a direct debit to ensure you stick to your plan. That’s every Christmas paid for.”
Finance manager Sharon Greenwood-Mercer (above right), 52, from Buckinghamshire likes to keep a tight hold on the festive purse strings at home as well as at work.
“I spread the cost of Christmas by buying gifts throughout the year from bargains in the Boxing Day sales to deals at discount outlets on our annual holiday in the US,” says Sharon.
“My daughter, Savannah (above left), is 21 and at university so I look out for treats to stash away such as ‘smellies’, chilli oil and socks. My husband Ian is a keen eBayer so he keeps an eye out for unusual presents for my 16-year-old son, Angus. We also like to scour charity shops for gifts. Last year, we got Angus a Wii with a load of games at a snip!”
Sharon says she’s also likes to get crafty for Christmas.
“I got bitten by the jewellery-making and knitting bug a couple of years ago, so enjoy making presents. I recycle unwanted jewellery and wool remnants, so it doesn’t cost me much at all. So far, I’ve knitted cushions, beanie hats and bunting – and made necklaces and bracelets. People like that, as they get a unique, handmade gift.”
Web designer Claire Plant (above), 32, and her husband, Adi, live in Lincolnshire and have a fun approach to saving for Christmas.
“Every month we add £50 to a sealed tin and don’t open it until December, meaning we’ve already got £600 for our shopping. On top of that, we have a cashback competition throughout the year to see who can earn the most money by doing all of their shopping through TopCashback.co.uk, and then pool our earnings to pay for presents.
“Adi is already in the hundreds because he’s offered to do all the big purchases – car insurance, TV package and energy switching,” she says.
Claire and her husband also take a less-is-more approach to living and ahead of the festivities pick out items they haven’t used since last Christmas to sell on eBay to boost coffers.
This year, the couple have also realised how much money they spend on alcohol and have decided to go sober for November. “We plan to use the money we’ve saved for indulgences over Christmas,” says Claire.
What are your best Christmas money-saving tips? We’d love to hear them. Email editor@moneywise.co.uk
Building good credit doesn’t happen overnight, and it can take years to establish a solid credit history. But if your credit score is in bad shape, there are a few things you can do to potentially see a big improvement in as little as a month.
Depending on what your credit report holds, quick credit-boosting strategies might include addressing the issues that are causing your low score in the first place, or adding a lot of positive information at once. These methods won’t turn bad credit into great credit overnight, but they can potentially lead to a noticeable improvement – and fairly quickly.
Here are three legitimate options if you’re looking to raise your credit score fast.
Your credit utilization, which is your credit card balances divided by your credit limits, makes up 30% of your FICO credit score. A high utilization rate can signal to lenders that your debt situation is unmanageable.
To give you an idea of how credit utilization works, let’s say you have three credit cards:
FICO will calculate your utilization rate for each card plus the rate across all of your cards:
While some credit experts recommend keeping your utilization rate at 30% or below, there’s no hard-and-fast rule beyond this one: the lower, the better. And since your credit card companies report your balances every month, paying down one or more balances can cause your credit score to bounce back once the new balance — and lower utilization rate — is reported.
Another strategy for lowering your utilization rate involves being removed as an authorized user from credit card accounts with high balances. If, for example, you’re an authorized user on your spouse’s account, and the card carries a high balance, consider calling the card issuer and asking them to remove you from the account, at least temporarily. Once that goes through, the high balance won’t impact your credit score anymore.
Finally, if you don’t have the cash to pay down your credit card balances, you could consider using a debt consolidation loan to achieve your goal. While you’re not reducing your overall debt load this way, credit scoring models don’t treat installment debt the same as revolving debt (e.g., credit card balances). So paying off your cards with a loan will result in a 0% utilization rate once those new balances are reported.
Whereas an authorized user account with a high balance can hurt your credit, getting added to a card account that’s in good shape can help big time.
That’s because the entire history of the account will be included on your credit report. So if the card has a low utilization rate and a perfect payment history, and it’s older than your existing accounts, it could boost your credit score as soon as the credit card company starts reporting it.
Keep in mind, though, that getting added as an authorized user on someone else’s account requires mutual trust. As an authorized user, you get your own credit card tied to the account, but you’re not legally responsible for making any payments to the credit card company. So it’s important to talk to the primary account holder and decide the terms of the arrangement.
Also, it’s best to ask a family member or friend for an authorized user account. While there are paid services out there that allow you to get an authorized user account from a stranger with good credit, it’s very expensive and occupies an ethical gray area.
Accidents happen, and sometimes creditors or credit bureaus add something to your credit report that’s not correct. Even worse, your credit predicament may be partially due to fraudulent activity with your personal information.
Get a copy of your credit report and review it for any accounts or information you don’t recognize. Keep in mind that there may be some legitimate negative information in your report that you don’t know about, so check with the creditor to find out more.
But if you determine that the item is erroneous or fraudulent, you can dispute it directly with the credit bureaus. While a dispute can take up to 30 days, Experian states that the turnaround time is usually 10 to 14 days.
Once that negative information has been removed from your report, its influence on your credit will no longer exist, and you may see a bump in your credit score.
While these three actions have the potential to raise your credit score quickly, it can still take time to get your credit where you want it. You don’t need a perfect credit score, but to qualify for the best rates on mortgages and car loans or the top-tier rewards cards, you’ll want to get yours to 760 or better. Here are some other things to focus on to achieve your goal over time.
Your payment history is the most important factor in your FICO score. And while late payments and collection accounts may have already done some significant damage, getting caught up can stop the bleeding.
Also, credit scoring models typically give more weight to more recent activity. So as you get caught up on payments and stay that way, your new positive payment history will outweigh past delinquencies over time.
Once you achieve a low utilization rate on your credit cards, it’s essential that you keep it that way. That can be tough if you have a low credit limit, so you may need to primarily use cash and your debit card for a while.
Alternatively, you can use your credit card as normal but make multiple payments throughout the month to keep the balance low. Whichever approach you choose, keep an eye on your balance and make sure it stays relatively low compared to your limit.
Every time you apply for a loan or credit card, the lender runs a hard inquiry on your credit report. For most people, this will only knock a few points off your score. But combined with other negative items on your credit report applying for several credit accounts can still be a red flag.
Also, avoiding new accounts will help improve your average age of accounts, which contributes to your overall length of credit history. That factor makes up 15% of your FICO credit score.
Building credit takes time, and it’s easy to get discouraged if you don’t see immediate results. But the result is worth the work.
Having a great credit score can not only make it easier to get approved for credit with favorable terms, but it can also help you score lower insurance premiums and get approved for a good apartment.
As you establish good credit habits, you’ll not only have a chance to improve your credit score, but it’ll also be easier to keep it that way.
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The post Three Ways to Raise Your Credit Score Fast appeared first on The Simple Dollar.
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. Insurance billing issues
2. Cheapest city-to-city travel
3. Buying new for baby?
4. Husband too frugal
5. Other people’s situation as inspiration
6. Emptying out 401(k)
7. Concern about national debt
8. Burning out on financial improvement
9. Cold brew coffee advice?
10. Roth 401(k) question
11. Money talk at Thanksgiving
12. Thanksgiving leftovers
Like a lot of Americans, Sarah and I and our children plan on sharing a big meal and a lot of quality time with some of our extended family in the coming days. It’s a great opportunity to spend quality time with people that I love but don’t get to see as often as I’d like.
I hope that you have the same opportunity in the coming days. There are times when such gatherings can be challenging. Rather than looking at differences, put them aside for a day or two and look for things you have in common. Everyone wins when we do that a little more often.
My wife and I each have a term insurance policy with [a particular insurance company]. We also have a whole life policy for my daughter. We pay the bills as they come in but all three of us are billed on different cycles. We have tried again and again to get the company to put us all on one billing cycle and customer service says they’ve done it and then we’re still on irregular cycles. I don’t know what to do.
– Charlie
Call their customer support again and immediately escalate to a supervisor. Be extremely clear on exactly what you want – you want one bill on a regular basis for all members of your family. Tell the person that you’ve contacted customer support several times and they’ve failed to do this despite promises to the contrary and you are considering cancelling the term policies and taking them to another insurer.
If it doesn’t happen again, follow through on that threat and start shopping for a new term policy for you and your wife. If they’re this sloppy with their service in this regard, they’re likely being sloppy in other areas, too.
You may want to leave your child’s whole life policy in place, at your discretion.
What’s the cheapest way to get someone from New York to Chicago for several days and back again?
– Darren
You’ve really got to price watch to figure this out. It’s going to depend on if you’re at the right place at the right time to get a good discount.
I wouldn’t just look at airlines, either. I’d check Greyhound (bus) and Amtrak (train).
I priced out several different options and found that a roundtrip Greyhound from NYC to Chicago near the end of December is going to run about $200 round trip, and Amtrak ran about $220.
Looking at airline tickets over a similar timeframe, they were all coming up with a regular price between $400 and $500, with a few in the $300 to $400 range.
My guess is that if you carefully watched some travel websites for discounts, you might be able to get an airline ticket for something approaching the cost of bus or train fare. Note I said “might.”
If I didn’t have time to watch airline tickets like a hawk, I’d probably just book Amtrak, honestly. It’s a pretty pleasant ride.
Having a baby in January and trying to keep costs low while stocking up before baby arrives. What things must be bought new and which things can we buy used?
– Jenny
The only thing I’d absolutely buy new is a car seat. Car seats typically have a lot of plastic components that can become weakened after a lot of exposure to sunlight, becoming a bit brittle and potentially putting your baby at risk. A nice car seat is a great thing to request at a baby shower.
You may need to buy a crib new. If you’ve found an older one, figure out what model it is and research it using Google to find out if it’s well made and up to current safety standards. Older cribs have some serious potential safety issues, depending on the model.
You’ll probably have to buy consumable stuff new – things like formula and baby food and diapers. We did use cloth diapers with our kids, only keeping some disposables on hand for emergencies, and we did this while both of us were working full time, so it can be done.
Baby clothes and blankets should all be bought used unless they’re gifts, in my opinion. You can buy things like baby bottles used as well – just clean and sterilize them thoroughly before using them.
So, basically, the only thing I’d absolutely buy new is a car seat and also the disposable/consumable items. I might buy a crib new if I wasn’t sure about the safety of any used cribs I could find. Aside from that, go used for everything.
My husband and I have been married for twelve years. For the first five or six things were pretty great. We’re both fairly frugal and read personal finance sites like The Simple Dollar and talk about our plans and strategies. Over the last few years my husband has gotten more and more frugal to the point of being uncomfortable. He refuses to ever go out to eat ever even if friends invite us. We’re both readers but he gets really upset if I buy a book and now he won’t even go to the used bookstore across town. We save every scrap of food even stuff that’s basically inedible. I feel like every aspect of our life is obsessed with every penny and I’m pretty careful with my money. It’s all he talks about. I’m not sure what to do. Hoping for advice.
– Kim
If you are genuinely made uncomfortable by his behavior, you should talk to him about it. If he persists in that behavior without compromise or any attempt to shave off the rough edges, then you have to make a decision as to whether you can tolerate it going forward or not.
It really does start with a conversation, though. You’ve got to tell him how you feel about how he’s behaving regarding his extreme frugality. If it’s making you uncomfortable and you feel it’s damaging relationships, you need to make that clear to him.
Although I’m not there to see what’s happening, it may be possible that there is a medical concern going on here. You may want to encourage your spouse to visit their doctor or to schedule a medical visit together, or at the very least, you may wish to consult with someone about his specific behavior.
Do you ever see someone else’s financial difficulties as inspiration to keep improving your own situation? I kinda feel like that when I read the mailbag sometimes.
– Jess
There was a time where seeing other people struggling with their finances drove me forward. Mostly, it would be a stark reminder for me that I never, ever wanted to return to that situation.
Over the years, though, that sense has faded. While some people wind up in financial despair through their own bad choices, there are a lot of people who wind up there due to a series of unfortunate events. Some people simply value things differently than I do – they don’t feel as impacted by their financial state and have less interest in financial independence or security.
I’m still glad I’m not in debt and I still see others as motivation to improve my financial situation, but I see now that it’s often not the result of their own mismanagement, and I also see that other people simply place priority on different aspects of life than I do, and that’s okay.
What are your thoughts on taking money out of my 401(k) to pay off credit card debt? Seems like the 30%+ interest rate on credit cards is a lot higher than the 5-10% I might earn in my 401(k) and even after the tax hit I’m money ahead.
– Alex
This is just an awful idea. Never, ever take money out of your 401(k) to pay off a credit card. Depleting your retirement savings to eliminate non-collateralized debt is bad enough, but given how easy it is to just get into more credit card debt, it’s very likely that you wind up right back where you were with your 401(k) emptied out to boot.
You need to focus on getting rid of your credit card debt without tapping your 401(k). It probably seems hard, bordering on impossible. That just means that there are some big lifestyle changes that you need to make that you’re going to have to think about and tackle.
Treat your 401(k) as off limits. Focus on figuring out how you need to change your lifestyle to make debt elimination possible. If you “can’t,” then paying off your credit cards is useless because you’re going to quickly be right back where you started.
With the US National Debt approaching $22 trillion dollars (https://ift.tt/s7OFL1), I never see anybody write about the implications of our country’s growing debt. In our personal lives this would be disastrous, but our country seems to be OK with it. What are the consequences? Should we care if it goes as high as $40T, $100T or even more?
– Daniel
I think that looking at our national debt in pure dollars is misleading. Instead, I usually look at our national debt as a percentage of GDP. GDP is short for gross domestic product, which is the total value of goods produced and services provided in a country during one year.
The reason I like that comparison better is that GDP is somewhat comparable to a nation’s salary, and someone who makes $15,000 a year and has $100,000 in debt has a major problem on their hands, while someone who makes $1.5 million a year and has $100,000 in debt will be able to pay it off within a month or two. In other words, how much income you have has a lot to do with how big of an impact your debt has on you.
If you look at our national debt as a percentage of GDP, which you can see on this graph with a data-filled chart below it, our percentage of debt has held pretty steady since about 2010 and it was much higher in the 1950s, though it was substantially lower in the 1970s. It should be noted that it bottomed out in 1981, just as Reagan took office, and has largely trended upwards ever since, excepting a dip during the Clinton presidency.
I should point out that I think it’s a good idea for the nation to have some debt, as it gets investors to buy our treasury notes and thus be invested in the US dollar. I think as long as we stay below historical highs of debt compared to GDP, we’re okay in terms of personal finance.
Three years ago I had a “financial armageddon” kind of like your own. I had two kids and lost my job and although I got another one a couple of months later, those months were on the precipice of complete disaster. I was stressed and scared and never wanted to be there again so I went Googling and found your story and your advice.
Last three years my wife and I buckled down. We lived on less than 40% of our savings. In 16 months we paid off all outstanding debts. Six months ago we reached 20% down payment saved up for the house we wanted and started shopping for one and moved in August.
Things are great financially. Only debt is our mortgage with a good interest rate.
But I am burning out. I’m just tired of looking at and thinking about prices all the time and just not doing lots of things I want to do because it costs money. I don’t want to go back to the way things were. I want some balance. But I am afraid that if I cut back on discipline I’ll go right back to how things were.
Did you go through this, and how did you handle it?
– Tom
I most definitely did go through this, and it was at a similar timeframe when you did. I felt burnt out on our financial journey and I wanted to spend freely again, like I used to.
What I did is that I sat down and made a list of things that I really wanted to spend money on that I was keeping myself from spending money on. I missed going to bookstores – that was the big thing for me.
At the same time, I made a list of spending changes I’d made in the last few years that I didn’t regret at all. For example, I didn’t regret switching to store brands for a lot of the things I bought. I didn’t regret giving up golf – I basically realized I was doing it for social camaraderie, which I found in other things.
When I looked at the two lists, I realized that there were an awful lot of changes that I was happy about and a relatively small number that were bothering me. So, I decided that I would basically relent on the things that were bothering me, with the idea that I would be conscious about it and try to spread out my indulgences.
That’s what I’ve done, basically. For me, it’s really key to spend some time reflecting on what I’ve spent. I spend money sometimes in the moment, but then I look back later on when I see that bank statement or credit card bill and I ask myself if that purchase was really fulfilling or not. Am I still glad I did it? Thinking about that has helped me really hone my spending on “wants” down to the point where I’m really in touch with what spending matters and what spending does not. I mention journaling a lot on this site, as well as time spent reviewing purchases and doing mental “after action” reports when I’ve got some downtime (like when I’m driving to pick up my kids from something) and doing “weekly reviews” on Sunday morning. That’s when I do this kind of thinking and review.
Tried some cold brew coffee at my sisters and it was great. Mellow but still really caffeinated and strong. I want to make it at home but I already have a drip coffee maker and the cold brew stuff at Target was all $30 at minimum. Suggestions?
– Alex
You don’t need to buy special equipment to make cold brew coffee. It’s pretty easy, actually. You just need a pitcher and a rubber band in addition to stuff from your own coffee setup.
Just take one of your coffee filters, put about half a cup of ground coffee in the middle of it, then wrap it up and tie it off with a rubber band, turning it into a tea bag of sorts. Make sure it’s nice and tight. If you’re grinding the beans yourself, set your grinder to “coarse.”
Then, put four cups of water into a pitcher and put your “tea bag” in there. Cover the pitcher and put it in the fridge. Wait 24 hours. Remove the “tea bag” and you have cold brew coffee.
Basically, the only advantage of a fancier setup is that you’ll no longer need the filter and the rubber band. They usually just come with a metal filter that you pour the ground coffee into and then you wash everything in the sink or dishwasher when you’re done.
This is pretty much the only way I’ll drink coffee. Most coffee tastes too bitter for me, but I really like dark roast Arabica beans used as a cold brew. It’s really mellow.
My new job offers a Roth 401(k). Or regular 401(k). Either way matching funds go into regular 401(k). Investment options are the same. Which should I choose?
– Devin
Assuming that you don’t have significant additional retirement savings in place, I’d go with the Roth 401(k). That way, you’re balancing your pre-tax and post-tax savings for the future.
You have to pay taxes on the money you put into the Roth now (it’s handled automatically with your check), but all of the money in your Roth will be able to be withdrawn tax free in retirement – even the money earned by your investments while you continue to work. You’ll have to pay taxes on the money in the normal 401(k) when you withdraw it.
While I don’t have a crystal ball, I’m very confident that putting money into a Roth is almost never the strictly wrong choice.
Let’s finish this mailbag with a couple of Thanksgiving related questions.
At my husband’s extended family Thanksgiving meal, people sit around after the meal and talk about their investments, with a lot of people dropping actual numbers and doing financial planning together. I feel really uncomfortable with this. My husband respects my discomfort and doesn’t talk about our money with them but I can tell that this makes him feel awkward. Our numbers are on par with others and to be expected. I am considering letting him talk about it while I excuse myself to do other things. Thoughts?
– Kelly
This is more of a marital issue than a financial one. A family that talks about their finances so openly without hard feelings is one with a pretty strong dynamic and I can understand why your husband wants to be able to take part in it fully.
If this is a compromise you feel happy with, then it seems reasonable to me.
I can just say that such conversations would never happen with my extended family and, if they did, it would devolve into arguing and other negative feelings.
How long is it okay to save Thanksgiving leftovers for? I get different answers from different sites.
– Dennis
In general, I’m willing to keep things in closed containers for three days in the fridge. Anything past that makes me wary.
In the freezer? If it’s well-sealed, it can last a very long time in there, until freezer burn damages it.
If I were in your shoes, I’d eat what I could in the first two or three days after the big meal, then freeze the rest. Ideally, I’d use as much of the remaining ingredients as I could to make a big batch of soup and store it, because frozen soup thaws really well.
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 Insurance, Marriage, Coffee, Thanksgiving, and More! appeared first on The Simple Dollar.
The world of technology is constantly evolving.
As a marketer, you need to stay up to date on new advancements that could benefit your company.
You don’t want to be left behind while your competitors forge ahead by adapting to the new world.
In my consulting work, I often see marketers and business owners who don’t believe these advancements are relevant to their marketing strategies. But this couldn’t be farther from the truth. New types of technology such as AI and machine learning are reshaping marketing.
While the technology is advancing rapidly, the basic concepts behind its applications remain unchanged. Everything is still focused on the customer.
Your marketing efforts need to reach your target audience. Your campaigns must find ways to speak to these people, and you can achieve that by personalizing and improving their experience.
Predictive analysis can make this possible.
Some of you may already be running campaigns and have strategies in place that focus on improving the customer experience and personalizing content.
However, predictive analysis technology will bring these ideas to the next level. You’ll see what I mean as I continue.
Surprisingly, only 23% of businesses are currently using advanced and predictive analysis tools:
That said, about 90% of businesses believe it’s at least somewhat important to implement predictive analysis tactics in their strategies.
What does this information tell you?
Well, it seems as though the vast majority of business owners and marketers recognize the need for predictive analysis, but they just haven’t proceeded.
Since you’ve navigated to this guide, I’m assuming you fall into this category. Or maybe you fall into the 16% of marketers currently evaluating advanced analytics software.
People want to use this technology, but they don’t know where to start or how to apply it. This was my inspiration for this guide.
You need to be able to adapt. In fact, adaptability is one of the top marketing skills you need to survive in the age of AI.
Making the decision to move forward with predictive analysis is the first step.
Now you need to figure out how this technology will improve your marketing strategy. If you apply the concepts I’ve outlined in this guide, you’ll have a huge competitive advantage.
Your customers don’t fall into the same group.
Treating all people the same is not an effective marketing strategy. I hope you’ve already started segmenting your customers.
Marketers have been doing this well before the days of big data. But this can be drastically improved with predictive analysis.
Predictive analysis can make it easier for you to compile demographic data. I’m referring to parameters such as:
Typically, it’s easy to learn this information about your customers. But segmenting them by those factors alone is not enough.
By using predictive analytics technology, you can identify trends for deeper segmentation.
You’ll ultimately pair demographic data with psychographics. This type of information can be obtained from social media, website analytics, surveys, and focus groups.
It doesn’t stop there. You can also collect behavioral data, such as how each customer uniquely uses your service or platform, e.g., your website or mobile app.
When you combine all the demographic, psychographic, and behavioral data about your customers, your predictive analysis model will create segmented groups with greater accuracy than it would if it used only one type of information at a time.
You can create customer personas once the data has been optimized from the predictive analysis formulas:
Once the segments have improved, your customer personas will be more precise and targeted accordingly.
Customer personas and customer segmentation are not quite the same although they’re often confused with each other. Ultimately, the two concepts work together.
With the information you get from your advanced segmentation strategy, you’ll be able to build a customer persona. These personas will be used for driving sales and conversions.
You can eventually use your predictive analysis software to improve lead scoring.
Once someone has been properly segmented, you can send them the right campaign, which will make it easier for them to convert. I’ll discuss lead scoring in greater detail later.
Customer personalization needs to be a key part of your marketing strategy.
But efficiency needs to be a priority as well.
It’s unrealistic for you to manually analyze every customer in your database. Most people leverage basic details with their automated platforms.
They use basic factors, such as the customer’s name, email address, location, and maybe their age.
For example, you could have an automated email go out to a customer on their birthday. This strategy is OK, but it can definitely be improved.
By using your customer segments and customer personas, you’ll be able to have a more advanced automation strategy.
With this type of data, you can create campaigns to show your customers you fully understand their wants and needs. Furthermore, you’ll know how to address those wants and needs.
Once your automation efforts improve, it will be much more profitable for your business.
That’s why such a large majority of marketing executives who have been using predictive analytics to improve their marketing strategies are seeing a high ROI.
If the initial cost of this type of software is holding you back from investing in it, know that you’ll ultimately see a return on your investment.
When businesses focus only on customer acquisition, allowing their retention strategies to become an afterthought, they underperform.
If this sounds like you, you’re making a big mistake. It’s much easier to sell to your current customers than to new ones.
In fact, you can even increase revenue without acquiring new customers.
These tactics should be a priority for your marketing department.
But even customers who have been with you for a while may eventually churn. What are your current churn rates?
We know that 70% of SaaS companies have an annual churn rate of about 10%.
Don’t think that’s a problem? I think that’s way too high.
Those of you with a high churn rate are missing out on much potential income.
If you can reduce your churn, you’ll have more money in your company’s bank account.
Predictive analysis can help show you when a customer will churn based on their behavior. Then, you can have targeted and automated responses in place to prevent that from happening. This will give them an incentive to stay.
You may not realize it today, but your churn rates can be detrimental to your company over time. Just look at this graph:
Notice the difference between the churn rates of 1% and 5%. That’s huge.
Check out the difference between 1% and 2.5%. I’m sure that’s not what you expected, given the small percentage number.
As you can see, improving your churn rate even by a percentage point or two will be a huge advantage for your company. This is especially true as you continue to acquire new customers over time.
With predictive analysis tools, your company can benefit from speeding up the decision-making process.
That’s because you’ll get predictive results in real time.
The longer it takes for you to make a decision based on the information you’re given, the less effective that decision becomes.
Here’s a great visual illustrating my point:
The graph shows the way the value of something changes over time.
Without predictive analysis software, the gap in the analysis latency section is much larger. The gap is the time between when the data is captured and the information is delivered.
Obviously, this delay will make it more difficult for you to act in a timely manner.
Let’s revisit the customer churn problem. If you don’t get that data delivered right away, by the time you attempt to prevent a customer from churning, you might be too late. They already switched to a competitor.
But that’s not the only application for real-time decision-making.
Predictive analysis algorithms could determine when one of your customers might need a specific product you’re selling.
Let’s say they are going on vacation in two weeks. They need that specific product before they go.
If you wait too long to take an action to try to get that sale, you’ll be too late even if you did everything else right.
You identified their need and sent them a personalized, highly targeted campaign. But if that was not done in a timely fashion, it’s useless.
Some of you might be currently using regression models in your marketing strategy.
Predictive analysis will improve this strategy.
Even if you’re not doing this, you can start to do so once you implement predictive analysis software. Regressions can help you measure and compare different variables.
For example, you could try to determine how social engagement relates to your website traffic. Or you could compare email open rates to conversions. And you can relate your page authority to the source of your leads.
Improving the range of regression models was the most important feature according to a recent survey on the use of predictive analysis:
The information gathered from a regression model can help you validate your marketing campaigns.
You’ll have a much better understanding of what’s working and what needs improvement.
In addition to calculating when and if a customer would churn, predictive analysis software can estimate their lifetime value.
Although this value is often overlooked, it’s one of the most important metrics for marketers to track:
Simply put, lifetime value will show you how much a customer is worth over time.
From the very beginning stages of the customer journey, predictive analysis can help identify which customers will be the most profitable.
Segmenting those people accordingly will improve your targeting strategies. Now, you’ll be able to make even more money from your most profitable customers.
Furthermore, LTV will also help you calculate a more accurate ROI of your marketing campaigns.
I see companies make this mistake all the time. They stay away from certain acquisition strategies because they can’t justify the cost.
But that’s because they don’t measure LTV, or at least they’re not doing it accurately.
You need to look beyond the customer’s initial first purchase. Here’s a very simple example.
Let’s say it costs you $50 to acquire a customer based on the campaigns you’re running, but their average purchase is $20. It doesn’t mean you need to abandon those strategies—not if the lifetime value of that customer is $1,000.
Predictive analysis will make these figures much more accurate.
You might be getting a ton of leads right now, but not all of them are qualified.
Qualified leads are more likely to convert, and you need to prioritize them.
But if you allow those leads to get lost in the shuffle, you won’t capitalize on them.
I mentioned lead scoring earlier. Based on your predictive analysis, you can improve your lead scoring system. If you don’t currently have a lead scoring system in place, this will be a great opportunity for you to create one.
Here’s a basic example of what a lead scoring system may look like:
Prospective customers with the highest lead scores get the most attention.
You can even target them with more expensive campaigns and acquisition strategies because they are more likely to convert.
Remember I said not all your customers are the same? Not all your prospects are the same either.
Predictive analysis will take this strategy to new heights.
You’ll get more insight into how to keep these people engaged. You can even learn predictions on their preferred price points and the types of products that will get new leads to convert.
This will help you generate more profits by focusing on your pricing strategy.
By applying predictive analysis to your lead scoring system and qualifying your leads, you will accelerate new leads through the conversion funnel. Ultimately, more conversions translate to more money.
Predictive analysis technology can drastically improve your marketing strategy.
Many businesses haven’t adapted to this yet even though they recognize its importance. This is a great opportunity for you to jump on board now to gain an advantage over your competition.
Your predictive analysis models will help with your customer segmentation strategy.
This software will improve your automation tactics and help you prevent customer churn by identifying it before it’s too late. You’ll also be able to make other important decisions in real time.
Predictive analysis is great for advanced regression models.
Use this technology to help you predict lifetime value of a customer and prioritize qualified leads.
Once you’re ready to start using predictive analysis to improve your marketing strategy, I suggest you apply the concepts I’ve outlined in this guide.
How is your business using predictive analysis to enhance your current marketing strategies?
The National Retail Federation expects us to spend as much as $720.89 billion this holiday season. That’s a lot of dough.
But the annual shopping kickoff isn’t necessarily just about buying holiday gifts. A savvy consumer can boost the bottom line year-round, rather than just the holiday budget, by taking advantage of great deals on Black Friday.
(That is, if they are great deals. More on that below.)
Here are seven non-Christmas/Hanukkah/Kwanzaa reasons to stock up on Black Friday, followed by some smart consumer tactics for shopping on Nov. 23:
If you’ve received save-the-date cards for 2019, Black Friday is all about the affordable presents. Towels, luxurious sheets, small appliances, cookware, and other gift-able items will be available at prices that are sometimes startling.
Some people are nervous about going off the bridal registry. Others figure that they’d really rather not pay $40 for a butter dish. Follow your conscience.
Note: Items like these also make good housewarming presents and are great holiday gifts for a college student who will be moving into off-campus housing or will graduate in June and move into his first apartment.
It’s always a good idea to have an evergreen gift closet, and if you’re a parent then that closet should contain some presents for children. Let’s assume your kids get invited to a dozen parties in the coming year (it might be fewer, but it might also be more). Do the math: 12 presents times retail prices equals a real blow to your budget.
Check the ads for half-price board games, loss-leader stuffed animals, and other items that match your child(ren)’s demographics. Then congratulate yourself as the party invites roll in throughout 2019: I’ve already done most (or all) of the shopping!
Incidentally, if you see something your own kid would love on his next birthday, buy it and hide it.
Your mom might say she doesn’t need anything for her birthday, but she sure was happy with those Dearfoam slippers last year – and you were happy, too, because you got them at 50 percent off on Black Friday.
If your BFF is a reader, bookshops and department stores will discount some (or lots of) titles on Black Friday. For the foodie spouse or sibling, you’ll find sale prices on utensils, spices, teas, and other related items. And so on and so on.
As noted above, having a certain number of gift-able items (preferably bought on sale) on hand keeps you from having to go shopping at the last minute (and usually paying full retail). While some of the best gift-closet shopping happens at post-holiday clearance sales, those Black Friday doorbuster prices will help you plump up your stash.
Bonus: The selection is better at the start of the holiday shopping season rather than at its close.
Two of the four burners on your stove are on the fritz, and the oven’s a bit balky. Go to a site like BFAds.net and look for the best prices on a replacement cooker.
Is one of your winter boots letting in the slush and cold? Check the ads for footwear.
Or maybe you’ve been saving to replace that old, battered sofa. If so, you might find a couch on Black Friday for less than you thought you’d have to pay. (Sure, couches are available at thrift shops and on Craigslist. But with concerns about bedbug and/or flea infestations, as well as odors — cigarettes, pets — that aren’t apparent at the time of purchase, some people aren’t willing to buy soft furnishings secondhand.)
Been curious about the Instant Pot since the appliance first hit the market? It will be a loss leader at more than one retailer on Black Friday.
If you’re a DIYer, places like Harbor Freight and Ace Hardware will have some screamin’ deals on products that will make future projects easier.
The desk chair in your home office is OK, but you tried out a fellow freelancer’s ergonomically correct model and your lower back fell deeply in love.
Sometimes a want can be a need. Use your best judgment, but watch the rationalizations.
As long as the old TV or smartphone or recliner still works, getting a new one isn’t actually a need. But if you’ve budgeted for the purchase, then go ahead and treat yourself.
We’re super-serious about that “budgeting” part. Don’t get into the habit of dipping into savings on the grounds that missing a deal is like losing money. It isn’t.
Before you buy, make sure this really is the best price for your proposed purchase. If you’ve been saving for a big-ticket item, you’ll already have a good idea of what that stove or generator should cost you. If not, then use a price comparison website like PriceGrabber.com or NexTag.com to make sure that your “deal” is worth pursuing.
Cash in rewards points whenever possible. If you’re buying from a big-box store or major retailer (including Amazon), then you can get gift card from a rewards credit card or a program like Swagbucks or MyPoints. It’s a little late in the game to bring this up, obviously. However, if the card or program has an e-gift card option that delivers within a day or two, order them right now. If not, keep this option in mind for next year and cash in earlier.
Use gift cards someone else gave you. So Grandma sent you a Barnes & Noble gift card last month for your birthday, or maybe you were awarded $50 in Amazon scrip as Employee of the Month. Does it feel like a bummer to use this on someone else? Look at it as a way of stretching your giving dollars (maybe you’ll be able to buy your girlfriend a nicer gift than you thought you could afford), or as a boost to your budget at large (one or more gifts you won’t have to pay for out of pocket).
Order discounted gift cards. Again, it’s a little close to Black Friday. But some gift card resellers have e-card options that show up as soon as you buy them.
Ask yourself whether you should even be shopping. That’s the most important caveat of all. For example, if you’ve got student loans and a starter salary, buying gifts for every shirt-tail relative could mean incurring a bunch more debt.
No matter what the reason, if this is a financially tough year you might have to trim your gift list or even declare a gift-free holiday. Instead of shopping, write heartfelt letters about what the recipients mean to you and how you’d give the world if you could – except that you can’t. (People who love you will understand.)
Or utilize tactics like making presents from supplies you already have, re-gifting, or offering to help relatives and friends with holiday tasks. For more ideas along those lines, see this article by The Simple Dollar founder Trent Hamm.
And if we’re talking about buying things for yourself on Black Friday, be extra-ruthless about nonessential purchases. A new pair of shoes because your old ones are so run-down they’re giving you backaches? Good idea. A new smartphone because your current one is just so 2018? Nothing smart about that.
Whether it’s something for your loved ones or a bauble you’ve been eyeing, keep this thought uppermost on Black Friday: If you can’t afford it, then it isn’t a good deal.
The holidays are about celebrating religious beliefs or culture of origin and spending time with people you love. Don’t go into debt to show how generous and successful you are.
Use the Black Friday deals, and subsequent price dips, to make best use of your available shopping funds. And if you don’t have any shopping funds? There’s always those heartfelt letters.
Award-winning journalist and veteran personal finance writer Donna Freedman is the author of “Your Playbook for Tough Times: Living Large on Small Change, for the Short Term or the Long Haul” and “Your Playbook for Tough Times, Vol. 2: Needs AND Wants Edition.”
More by Donna Freedman:
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