الاثنين، 17 ديسمبر 2018
85 Million Americans Could Have Credit Report Errors. Here’s How to Find the Mistakes
Your credit score is important. The better your score, the better deal you’ll get on a mortgage, car loan or credit card. We’re talking big money here.
Even if you’re not buying a house anytime soon, a lousy credit score means you’ll get hit with a high security deposit whenever you rent a car or move into a new apartment.
But did you know your credit score could be inaccurate? One out of four credit reports have an error, according to a study by the Federal Trade Commission.
To keep a closer eye on your credit, get your credit score and a “credit report card†for free from Credit Sesame. It breaks down exactly what’s on your credit report in layman’s terms, how it affects your score and how to address it.
Because it simplifies everything, you should be able to spot any errors. For instance, if you find an “unpaid†credit card that you know you paid, or a bill in collections you know never existed, you can dispute the incorrect information and raise your credit score.
James Cooper, a motivational speaker, raised his credit score 277 points using Credit Sesame. Now he talks to high school students about the importance of having good credit and uses what he’s learned through Credit Sesame as a blueprint for his lessons.
“We want to touch the Z Generation,†Cooper says “We’re not in the business of fixing credit. We want to get to you before you have to fix your credit.â€
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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Here’s a Quick Way to Find out Exactly How Much Debt Is in Your Name
OK, you’ve come to terms with it. You have debt. And you’re ready to do something about it.
To pay off all your debt, you have to know how much you owe.
Um, duh?
Seriously though, when’s the last time you looked at all your debts and their interest rates to devise a payoff plan?
That’s what I thought.
A really easy way to do this is to get a “credit report card†from Credit Sesame.
Let This Tool Give You an Overview of Your Debt
Credit Sesame is like your favorite teacher from high school — without the pop quizzes.
It gives you a free credit score, plus lays out your credit history so you can see exactly how much money you owe and to whom. It even tells you your monthly payments and interest rate, as well as which debts (if any) are in collections.
And you don’t have to stay home to do it. The Credit Sesame app lets you keep track of your credit score and ways to improve it — on the go!
For example, it might recommend a mortgage lender, credit card or debt refinancing, based on your needs and chances of being approved.
James Cooper, a motivational speaker, raised his credit score 277 points using Credit Sesame. Now he talks to high school students about the importance of having good credit and uses what he’s learned through Credit Sesame as a blueprint for his lessons.
“We want to touch the Z Generation,†Cooper says “We’re not in the business of fixing credit. We want to get to you before you have to fix your credit.â€
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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You Might Be Overpaying by $720/Year for Car Insurance. Here’s How to Fix It
You’re probably overpaying for car insurance. And how would you know, really?
Have you shopped around lately? Have you compared rates from the 20 largest auto insurers that do business in your area? That sounds kind of difficult and time-consuming, doesn’t it?
Fortunately, a service called Gabi will do it for you, and you don’t even have to fill out any forms. Simply link your insurance account and provide your driver’s license number, and Gabi will go to work.
Once you link your insurance account to Gabi, it will:
- Scan your existing insurance plan.
- Analyze what coverage you have.
- Compare the major insurers’ rates for that same coverage.
- Help you switch on the spot if it finds you a better rate.
Gabi says it finds an average savings of $720 per year for its customers.
Single mom Lourdes Robles-Velazquez was actually able to save nearly $1,000 a year on her car insurance by comparing rates through the site.
It is a true apples-to-apples comparison at the same coverage levels and deductibles you currently have. Once you sign up, you never have to shop again. Gabi’s software has your policy on file and keeps on monitoring for savings as your life changes.
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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This Free App Tries to Lower Your Bills by Calling The Companies for You
On the phone with your cell phone or internet provider, trying to haggle a lower monthly bill?
Go ahead and hang up. (We know you’re probably listening to crappy music while sitting on hold, anyway.)
Get a Free Assistant to Negotiate Your Bills
Download TrueBill, an app that’ll negotiate your bills, cancel unwanted subscriptions and refund your bank fees.
After downloading the app, create an account and link your bank account and/or credit cards. Turn on the bill negotiation and outage protection features. Boom. TrueBill is already searching for potential refunds — it might get you a refund even when you didn’t know an outage occurred.
On average, Truebill says it helps customers save more than $700 a year by lowering their bills, canceling necessary subscriptions and getting refunds.
The app will also remind you of all those sneaky subscriptions you’ve signed up for through the years, so you can cancel what you don’t use and reclaim your monthly budget.
Signing up and using the service is free, though there are some paid premium services that are totally optional — but could totally be worth it.
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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New Yorkers Can Get a Free $20 Amazon Gift Card for Supporting Green Energy
Did you know you can use your energy bill to support renewable energy — no matter where you live?
With renewable energy company Arcadia Power, you can offset your monthly energy consumption with 100% renewable sources in about two minutes.
Arcadia Power matches each kilowatt-hour of power you use with a kilowatt-hour of wind energy. Basically the company purchases certified renewable energy certificates in your name, so others can take advantage of clean energy in their area.
And, because you’re such a good person, the company will throw in a free $20 Amazon gift card.
Eric Hanson wanted a cleaner energy source, but didn’t have the option in his area — and didn’t want to install pricy solar panels.
So he went with Arcadia Power, which offers him a way to drive the demand for sustainably sourced electricity, even though it’s not available in his area yet.
“On a fundamental level, the power that I use in my house is coming from renewable sources,†Hanson says. “By providing financial support for renewable energy sites, I can disrupt the market. I’m willing to support green growth.â€
Bonus: Arcadia lets you see an online dashboard to track your power usage  — and New Yorkers can sign up for price alerts to find the cheapest energy rates available.
You can sign up to qualify for your free gift card in about two minutes.
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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How a Single Mom Earned $1K by Giving This Company Access to Her Emails
It turns out deleting your emails could be costing you money. Intrigued?
In the past two years, single mom Aimee B. has recouped $1,000 while shopping online.
Her secret weapon is called Paribus — a tool that gets you money back for your online purchases. It’s free to sign up, and once you do, it will scan your email for any receipts. If it discovers you’ve purchased something from one of its monitored retailers, it will track the item’s price and help you get a refund when there’s a price drop.
Plus, if your guaranteed shipment shows up late, Paribus will help you get compensated.
“My time is worth a lot,†Aimee says. “An hour of my time saved is absolutely worth its weight in gold.â€
Or, at least, $1,000 back in her bank account.
Disclosure: Paribus compensates us when you sign up using the links we provide.
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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This Company Will Give You Free Lottery Tickets When You Download Its App
There’s something so satisfying about those gas station scratch-off tickets, but we know it’s better to avoid them because, well, that’s not Penny Hoarding.
Instead, try scratching for free using an app called Lucktastic. Each day, it releases a new assortment of digital scratch-off tickets. Lucktastic says instant wins range from $1 to $10,000. You can also earn tokens that you can exchange for free gift cards to retailers including Amazon, Walmart, Kohl’s, Sephora and more.
Oneil Campbell got into the app in early 2018 and loved how much easier it was compared with entering sweepstakes and contests. He recently won $5,000 he’ll use toward a down payment to buy a home for himself and his beloved 5-year-old daughter, Annika.
“This is something good that happened to me at the right time — when I can really use it.â€
Lucktastic is supported by advertising, which allows it to keep the payouts high and the games free.
For more info, check out our full review.
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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I Need a Will, but I’ll Have Nothing Left After Attorney Fees
Dear Desperate,
I’m sure you’re losing enough sleep already. It can’t help to be worrying about your children’s financial futures at the same time you’re trying to rock them to sleep for the sixth time in one night.
But you’re right: It’s time to get a will. I mean, have you seen this season of “House of Cards� Half the plot revolves around the contents of someone’s will. You don’t want your kids to be in that sort of situation, even if you don’t have as many enemies out for your untimely demise as the characters on that show. (And I hope you don’t have that many skeletons in your closet.)
The reason getting a will drawn up can be so expensive is that it takes people power. It takes attorneys who know the local law inside and out and can personalize their services to your needs.
But remember, it’s still an exchange of money for services. And that means you can shop around. Don’t feel pressured to sign up with the first lawyer who gives you a free consultation. Ask direct questions about pricing and what it includes. If you don’t get direct answers, feel free to move on until you feel comfortable.
This process takes time, and I’m sure you already feel like your time is limited. That’s why the online options can seem tempting. I know I’m more likely to fork over cash for a service that requires me to speak to zero human beings, for better or for worse.
The catch with online services (LegalZoom, Rocket Lawyer, Willing, Nolo … I could go on) is that you typically don’t get the individualized service that an in-person attorney can provide. You save a bundle, but there’s a risk that once you get to the point of needing the will, the document could cause extra headaches for your heirs.
If you choose an online service, be sure to read reviews and ask any questions before you pay up, just like you would with other services like car repairs, home renovations or medical care. Don’t get overwhelmed and forgo your research because you’re tired and panicking about not having a will. Take your time. Make an informed choice.
But do make sure you have a will drawn up sooner rather than later — and then review it frequently to ensure it’s accurate. No matter how young and healthy you are, it’s important to have that safety net in place in the event of the worst-case scenario.
Worried you’re not making the right money moves? Write to Dear Penny at https://www.thepennyhoarder.com/dear-penny/
Lisa Rowan is a personal finance expert and senior writer at The Penny Hoarder, and the voice behind Dear Penny. For more practical money tips, visit www.thepennyhoarder.com.
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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Questions About Crowdlending, Prayer, Christmas Trees, Chess, Beans, and More!
What’s inside? Here are the questions answered in today’s reader mailbag, boiled down to summaries of five or fewer words. Click on the number to jump straight down to the question.
1. Investing for child’s future
2. Crowdlending investments
3. Shorter workweek thoughts?
4. Struggling to improve at work
5. Last minute holiday gifts
6. Praying for financial help?
7. Child care suggestions
8. Christmas tree suggestions
9. Learning chess for cheap
10. Keeping beans fresh
11. 401(k) help
12. I never want to retire
I get two or three requests a week from a reader asking to reprint an article I’ve written for some purpose. So, here’s my policy on that.
If you wish to reprint an article of mine for a print publication or an email newsletter, not a website, you have permission to do so provided that you attribute the article to Trent Hamm at The Simple Dollar and include the URL of the site, https://ift.tt/ADac4J. If you are interested in a reprint on a website, ask me first.
Make sure that the article was actually written by Trent first, however, by visiting that article on the website and verifying that Trent was the writer of that specific article. Some portion of articles that appear on the site were written by other writers and you’ll need to ask them individually for permission.
On with the questions.
Q1: Investing for child’s future
I have a young kid (6 years old) and I’d like to invest a little bit for him in a set and forget fashion. I realize I’m pretty lucky to be living in an expensive place (Seattle, WA) while being able to max out my 401k, my Roth IRA and my wife’s IRA. We don’t have any loans, pay off out credit card monthly and just have a home mortgage with low interest.
I am still able to put a little bit of money regularly on a brokerage account and a 529 for my son (although I don’t want to put too much for a few of reasons: I don’t know if he’ll go to college here (expensive) or in France where I’m from (cheap), I value community college highly and don’t necessarily aim for him to go to ivy league schools and finally I don’t believe in taking at my charge all his higher education expense.
My only downfall here is that I feel a bit behind on retirement because I moved to the US AT 26 for a temp job that became permanent at 32 and only understood 401k since I was 34. I’m been maxing out ever since. I definitely have the saving mentality that we find Europeans!
In essence, we live on about 40% off a single about 110k/year (my wife works for a non profit and brings an income that pretty much only pays for her laptop, cell phone, car gas and child care once in a while for us to go on a date). With that in mind, what could be our next smart moves (I feel that is not often addressed for people that are able to to reach all the conventional goals we see out there but don’t fit in the high income category where advance money placement and tax schemes can be beneficial).
So my questions are two folds:
– what is the next smart move for us (just keep investing in the Vanguard Total Market Index Fund?)
– what can I do to invest long term for my son? I was hoping for an IRA but he is not earning income. Is the anything else?
– Bob
First of all, a 529 might still be useful for you even if your child goes to school in France, provided that he’s attending a college or university that’s eligible for Title IV student aid. There are hundreds of overseas universities and colleges that are, so you’ll have to research the ones he’s considering.
If you’re not strictly saving for education for your son, however, your best bet is probably what you’ve already stumbled on – gifting your child a certain amount each year below the gift tax exclusion limit ($14,000 a year) and then investing that money in a taxable account in your child’s name while again gifting your child enough to pay any taxes on dividend income. This is of course assuming that your child is not earning an income of some kind via modeling or acting or something akin to that.
For us, our savings for our children’s future is strictly in the 529 plans. Once they move out and go to school, their 529 plans are our financial support for their education. We hope to have enough in each account to cover in-state tuition for a few years at a state university (like Iowa State U or University of Iowa), though they can make other choices in terms of where to go to school should they wish too.
Q2: Crowdlending investments
What do you think about crowdlending investments?
– Carly
Crowdlending refers to any program in which individuals can lend money to other individuals or businesses, supplying the capital for the loan and earning a return on that money in the form of the borrower’s interest paid on that loan. Typically, many people provide small amounts to make up the capital for that loan – for example, someone might want to borrow $10,000 and that loan is made up of 100 people lending $100 each. A number of businesses exist to help facilitate this, such as Lending Club and Prosper.
It really comes down to the riskiness of the borrower. Someone with a high rating as a borrower represents pretty little risk and you’ll almost always get your money back and more. A high risk loan might net you a very nice return, but you have a real risk of losing your balance.
In general, I would not invest money I needed going forward in a crowdlending investment. It’s a good place to put money that you don’t need if you’re seeking a nice short term return on it and you’re willing to pay a lot of attention and take on some significant risk. Remember, if someone defaults on a crowdlending loan, that means you’ve probably lost most (if not all) of what you’ve invested.
Q3: Shorter workweek thoughts?
What do you think about this article that argues that people 40 and over work better if their workweek is shorter? It matches my own experience. This one?
– Jenna
I frankly agree with it. Speaking from my own experience, I find that the vast majority of my work gets done during three days a week. I tend to have about three days each week when I can really slip into a writing zone, and my “work” on other days is often just busywork.
I think this is honestly true of most information and creative jobs. For every day of really great mental performance, I think people of all ages need at least a day of rest to recharge fully. If you demand mental performance day after day, that performance is going to degrade fairly rapidly and eventually result in burnout.
The trick for me is in properly preparing for a three day week and getting it reliably without interruption due to personal or family illness or some other interruption. Part of why I write for a living is the flexibility of it, which means I can’t just sit down and lock down three specific days of writing each week. Often, I have to break it up more than that.
Q4: Struggling to improve at work
I currently work as a bank teller. Went in for a performance review in October and read your advice about asking what I need to do to get a raise or promotion. Boss was great and gave me a list of things to work on. Thing is I’m always busy and rarely have the chance to work on a lot of those things. I feel like I’m not making progress on any of those things and can’t find time for them. Not sure what to do.
– Bailey
The best thing you can do is find opportunities to work on those skills in the course of your regular tasks. Without knowing your regular casts and the things that your boss suggested that you work on, I can’t offer specific advice on that. However, there are probably at least some of the elements on that list that you can work on while doing other tasks.
If there’s new material to learn, do your best to learn it when you’re not at work. If there are topics you’re supposed to know about, spend time when you’re not working learning those things.
You should also try to get into a routine of having regular scheduled one-on-ones with your supervisor just to talk over how things are going and build a stronger relationship. If you’ve not really communicated in any way with your boss in two months, you might want to strengthen that relationship a little. Just ask for a regularly scheduled meeting once every two weeks or once a month and go over the things on that list. This gives you a deadline to push toward a little more effort on those things, and it shows your boss you’re consistently trying to work for the brass ring.
Q5: Last minute holiday gifts
So my mom got sick and asked if I could host family Christmas and I said okay. In the past we did a name drawing for gifts but she also got everyone something small and she’s not doing that this year but I want to do it so I am looking for good ideas for last minute small holiday gifts under $5.
– Amy
What kinds of things did she give out?
At that price point, I’d probably go for consumable items. Get people nice bars of chocolate or a bottle of craft beer or something like that. You’re not going to go fancy at $5, but you can find something the recipient would enjoy.
Just make a list of everybody who’s attending and try to identify one food or drink item each one of them would like. There’s your shopping list, and that’s exactly what I would do in your shoes.
Q6: Praying for financial help?
I pray and pray for financial help and it never seems to come. We never make ends meet. I try to follow your advice and things always turn out badly.
– Jaime
A simple suggestion: rather than praying for financial help, pray to have the strength and wisdom and focus to make the difficult choices needed to put you and your family on a better financial path.
Don’t pray for money to be dropped on your lap. Instead, pray that you’ll have the foresight and wisdom to not spend money on foolish things. Pray that you’ll feel lower stress and that you’ll be able to lower the stress of those around you. Pray for the creativity to make your meal budget stretch a little further.
Most of us already have the financial answers we need already in our life. We just need someone (or something) to take the scales away from our eyes so that we can see those answers. That change often comes from within, not from money from outside sources. Money drops into our lap more often than we think it does – what matters is how we use it.
Q7: Child care suggestions
Moved to new city and starting school in January. Have a three year old. Thought there would be child care support through school but all slots are full. Program will subsidize child care but everything within subsidy is kind of scary. Suggestions?
– Danielle
I have helped Danielle many times over the last few years. For some background, she was engaged to be married but her soon-to-be husband ghosted her and she can’t find him for child support. She moved in with her parents for a brief while, then found an apartment on her own. She applied for a bunch of scholarships to go back to school and then I hadn’t heard from her in a while until this question popped up. She has been using many different programs to help give her kid a great life and working her tail off, so I do have some real sympathy for Danielle’s situation.
Danielle, you absolutely need to check and see whether your state has some sort of child care assistance offered through their Department of Human Services. Given your situation, it’s very likely that you’re eligible for some help through such a program, which is available in a lot of states.
Another approach you might want to consider is whether or not you have a close friend or relative you trust who could move in with you and provide child care in exchange for free rent. Do you have a sibling or close friend who might be interested in such a situation that you’d trust?
Those are the two best options I have in mind, other than making sure you’re on the waiting list for child care options through your school. This will get somewhat easier when your child reaches school age, as you’ll both be able to go to school!
Q8: Christmas tree suggestions
Is a real Christmas tree worth it? We usually only decorate for a few days before Christmas and the twelve days after taking things down on January 6. Used a tiny artificial tree for the last few years and we’re considering a real one this year.
– Arne
It depends on how you define “worth it.” Real trees are messier and take more work (because you have to water them) and need to be disposed of after the holidays; artificial trees have none of that. Plus, real trees have to be replaced every year.
From a purely financial standpoint, real trees aren’t “worth it.” However, real trees have an enormous aesthetic advantage. They smell wonderful. When properly cleaned up, they look better than artificial trees (in my opinion, assuming you don’t buy one that’s half dead).
Is the work and the (eventual) extra cost worth it to you? For some people, it is. For some, it isn’t. We had a real tree for a few years when I was growing up and while I appreciated it in my teen years, it wasn’t life changing for me. As an adult, I probably would not have a large real tree unless my children were genuinely excited about the concept and brought it up frequently.
Q9: Learning chess for cheap
My five year old was taught chess by his cousin at Thanksgiving and now he wants to play chess all the time. I can fumble through the moves but he is finding stuff on his tablet about openings and stuff that I have no idea about. I want to get better at chess and also help him find things to help him get better at chess. What tools are cheap/free?
– Andy
It really depends on your goals with this. If you’re just wanting to get a bit better and assume that this is a fad that’s going to burn out, I’d just get an inexpensive chess app for his tablet and for your phone and just play lots of games. Most games have a feature where they suggest good moves and point out bad ones and over a lot of games, you can gradually learn from that.
If you really want to start learning openings and stuff, there’s almost nothing better you can do than visiting your local library that has a selection of chess books, picking out a few, and then going through them at home. My local library has a couple dozen chess books on the shelves and can reserve hundreds more via interlibrary loan.
Take them home and then just try an opening during a game with your kid. Pick one that looks like fun, memorize the first three or four moves of it, and bust it out with your son. Tell him what the opening is and then see whether or not it looks like you’re in good shape.
I have an eight year old that loves to play chess constantly but really has zero interest in actually learning the game. If your son is into openings, play into that and use it as an opportunity to learn together.
Q10: Keeping beans fresh
You mentioned cooking beans early in the week and keeping them in the fridge all week to use for meals. How do you keep them fresh and not just turn to mush? Every time I do it they get mushy.
– Blair
First of all, don’t cook them quite all the way to completion. I try to aim for beans that are not quite all the way cooked, just done enough so that they wouldn’t be annoying in the dish but clearly could use just a bit more cooking. They’re really firm at this point but definitely edible.
I drain them and let them slowly cool down to room temperature. This usually cooks them just a bit more so they’re pretty close to exactly what I want. I drain them and rinse them again so that they’re close to dry, then I put them in a sealed container in the fridge. I aim to use them within four or five days.
Most of the time, I add these beans late to something else I’m cooking, like a soup. If I’m using them in a salad or something, I might cook them just a bit more in some simple fashion, like with a bit of water in the microwave, but I’ll usually just toss the beans right into the salad.
This works for all kinds of beans. My personal favorite is black beans, which I’ll use for pretty much anything I can get away with.
Q11: 401(k) help
I just signed up for my company 401(k) and there are only a few options available and none of them match up with anything you have ever mentioned. They have names like “aggressive growth” and “moderate” and “safe.”
– Alex
Likely, the options you see are ones that whoever runs your 401(k) have pre-chosen for you and given “friendly” names that actually make it harder to figure out what they actually include. The first retirement plan I signed up for was very similar in that regard.
You can ask the HR representative that deals with the plans whether or not you can pick your own funds, but it’s likely that you don’t have such control, so you probably just have to choose one of these options.
The honest truth? In a situation like this, it’s really hard to pick the “best” option for you because you don’t really know what’s going on underneath the options. In your shoes, if I was more than ten years from retirement, I’d choose the most aggressive option available. If I was less than ten years, I’d choose a moderate option. That is, assuming I couldn’t see anything more about the plans than such vague descriptors.
Q12: I never want to retire
I don’t like reading about retirement talk because I never want to retire. I love what I do (nursing) and I want to keep doing it in whatever aspect I can for as long as I can until I’m shoved out the door and straight into a retirement home (or a casket). Why should I worry about retirement?
– Dinah
Never retiring is a marvelous idea in theory, but it often doesn’t quite pan out that way. Many career paths nudge people out the door when they get to a certain age, regardless of whether those people want to keep working or not, and sometimes health conditions pop up that continue to allow a mostly full life but cut off certain career paths.
Another reason to save for retirement is that it opens up the possibility of a second career or a different kind of job later on. You may end up taking on a position that uses your nursing skills in a very positive way but it doesn’t pay nearly as much as your current job; a retirement savings plan can help offset that loss in income.
You really should save for retirement no matter what career you’re in and no matter how much you love it. It’s “cover all your bases” money, because you simply can’t predict what the future holds.
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.
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How to Drive Sales by Implementing a Friendly Return Policy
What’s your company’s return policy?
I’m sure you’ve been asked this question before by both current and prospective customers.
But think about when this question gets asked. It’s not just when someone wants to return an item. Customers want to know what your return policy is before they buy.
This holds true for in-store and ecommerce purchases. In fact, 90% of consumers read return policies before making a purchase online.
Obviously, you don’t want to get frequent returns.
But knowing that returns are easy and hassle-free will make it more likely that customers will complete the purchase process.
Friendly return policies will improve your customer service. It shows everyone that you stand behind your products.
If everything you’re selling is a final sale, it’s an unreasonable and questionable business practice. This will make customers think twice before buying.
Some of you may not have thought of these ideas before you came up with your existing return policy. That’s why I created this guide.
Whether you’re developing a return policy from scratch or wishing to change your current policy, you’ll benefit from these tips.
The adjustments will make your product or service more desirable for consumers to buy.
Provide free returns
I realize that returns can potentially cost your company some money. But you need to weigh that expense against the price of potentially losing a customer.
Do not charge customers for returns even if they need to ship an item back to you.
That money isn’t worth losing a customer over.
Put yourself in the shoes of a consumer. There’s a reason why they are returning an item.
It was unsatisfactory in some way. Maybe it was damaged, or it looks different from what they saw online. You could have made a mistake and potentially sent the wrong item.
Regardless of the reason, they are already inconvenienced. Don’t make them pay to give it back to you.
Free return policies encourage shoppers to buy products online.
As you can see from the graph, this was a top motivating factor, second only to free shipping.
Studies show that 27% of consumers say they would buy an item that costs more than $1,000 if the store offers free returns.
Just 10% of buyers would do the same without free returns.
Think about that. These customers are willing to spend $1,000 or more. You want to make sure you keep their business and encourage them to buy.
If they want to return something and it costs you a few extra bucks, so what?
The value of that customer will make up for it over time.
Offer a free trial
Usually, free trials are associated with subscription services. But you can implement this strategy even if your business sells physical products.
Here’s how it works.
Rather than having someone buy something and then return it, let them try it free and leave it up to them whether they want to keep the item or not. It’s not exactly the same as a free trial you’re used to, but the concepts are the same.
Basically, it’s a risk-free way for consumers to experience your product.
Here’s an example from Warby Parker:
Glasses need to be tried on before a decision about them can be made.
In most instances, it’s difficult to order well-fitting glasses online without trying them on in person. But Warby Parker makes this easy for its customers.
It allows people to order five different frames, shipping them to the customers’ homes at no cost.
Customers can test them to see which ones fit and look the best. Then, they send back the ones they don’t want and get charged for whatever they keep.
It’s brilliant.
This strategy will result not only in more sales but also in increase in the average order value of each purchase.
The customer already has products in their possession. At this point, they may end up wanting two pairs instead of one.
The main benefit of shopping in stores compared to online is getting to see, touch, feel, and try on products. But if you can provide your customers with the same experience from the comfort of their homes, it will give you a huge advantage.
I definitely recommend this strategy, especially to ecommerce shops.
Make the return process as easy as possible
You should apply the same concepts to your return procedure as you do to your checkout process.
The fewer steps a customer has to go through, the higher your conversion rates will be.
Again, it’s not like you want to have lots of returns. But they are bound to happen.
In fact, 30% of products ordered from ecommerce shops get returned compared to just 9% to those from physical stores.
And 92% of consumers will buy from a store again in the future if they experience an easy return process.
Here’s Zappos’ return policy:
The return process consists of three simple steps.
The website includes a picture and description of each step. Zappos even has an option for people to find the nearest UPS shipping center to drop off the package they are returning.
This added value goes a long way.
Even though the customer physically has to go to a UPS center to return their order, the friction has been reduced.
Otherwise, the customer would have to open a new browsing window, search for UPS, and find a location nearby. That’s three extra steps.
If you can eliminate the hassle in your return process, people will be more likely to buy.
Don’t restrict return methods
Give your customers as many options as possible when it comes to returning items.
Let’s say you have multiple store locations. If a customer buys something at one location, they shouldn’t have to go back to that exact store to make a return.
Your system should make it possible for returns to be accepted at every location, regardless of where something was purchased.
It’s for the customer’s convenience. You don’t know the circumstances behind the sale.
Customers could be traveling away from home or be on vacation. In this case, it would be unrealistic for a customer to return to an exact store if they live hours away or potentially in another state.
In this case, they would be less likely to buy something if they knew it could only be returned at one location.
Let’s take this concept one step further. Online orders should be accepted as in-store returns as well.
Maybe the customer doesn’t want to deal with shipping, even if you made the process easy as in the previous example.
But the fewer restrictions you have, the easier it will be for your customer.
People will be more likely to buy knowing they have options if they decided to return something.
Showcase your return policy
I already talked about the fact that customers will review a return policy before making a purchase online.
Don’t make them hunt for your policy on the website. If your return policy is buried somewhere, it’s going to be difficult to find.
I’m not saying you need to have the return policy displayed in its entirety on every page, but at least highlight the benefits.
Here’s an example of how Lululemon does this on its homepage:
Remember the graph you saw earlier about the top two factors that encourage people to buy online?
Free shipping and free returns.
As soon as a visitor navigates to this website, they know returns are free.
They can click on it to review the policy in greater detail, but at least they don’t have to go searching for it.
That’s how you design a homepage that converts.
Stand behind your product
What happens when one of your products has been opened, had the tags removed, or had been worn or used? Can the customer still return it?
If the answer is no, you might have a harder time generating sales.
Sometimes, consumers won’t know whether they are happy with an item until they had the chance to use it.
If you stand behind your product and offer returns on used items, consumers will be more likely to buy.
Here’s an example from SAXX:
I’m not saying you should accept an item after it’s been used for a year and is now worn out.
But the comfort guarantee from SAXX is very reasonable and something you might want to consider implementing in your business.
30 days, or your money back.
This gives its customers a chance to try the underwear, which is the only way someone can truly know whether they are happy with it or not.
If someone is unhappy, SAXX will exchange the item or refund the purchase.
Obviously, you would prefer a product exchange, but you should still offer a refund as an option. Don’t make it seem as if you’re holding their money hostage.
Provide easy access to customer support
Before someone wants to return something, they may have questions that can be answered by your customer support team.
The customer may want to learn more about the policy, find out what their options are, or just talk to someone about their dissatisfaction.
Regardless of the reason, you want to make this process as easy as possible.
You need to understand what people want when it comes to customer support:
Customers have different preferences.
You need to be available through as many communication platforms as possible, such as:
- phone
- live chat
- social media
- in person
Further, you don’t always have to stick to your exact return policy. Exceptions can be made. Let me explain what I mean.
The fans of the TV series Seinfeld may be familiar with an episode in which Jerry wants to return a jacket he bought.
The customer service representative asks why he wants to return it, and Jerry says he’s returning it out of spite because he doesn’t care for the salesman who sold it to him.
So the store manager tells Jerry that spite doesn’t meet the conditions for a return.
Obviously, it’s a show and meant to be humorous. But let’s look at a more realistic example.
If you have a return policy similar to the earlier SAXX example, customers can return an item within 30 days of the purchase, even if it’s been worn.
Well, what happens if someone contacts customer support on day 33 asking for a return? Is the answer no?
Exceptions can be made. Hear them out.
Maybe they are just now trying it on for the first time. Instead of refunding their money, at least give them a store credit or offer an exchange.
Your staff needs to be trained accordingly to handle these circumstances.
As I said before, it’s not worth it to lose a customer over this.
They want to return something that was used and cost $50. I get it. This is not ideal for your company.
But if that customer is going to spend more than that in the future, it’s worth it to make an exception by providing customer service that’s reasonable and easily accessible.
Extend the return deadline
This is similar to my last point.
You can avoid the above circumstances from arising if you extend the return deadline to begin with.
Here’s a great example from Target:
Customers have 90 days to return items.
Target extends its return policy during the holiday season. It recognizes customers are buying for other people, and items might not be seen or opened by the final user right away.
The policy starts on 12/26 if an item was purchased between 11/1 and 12/25.
This is a great way to drive sales during the holiday season.
Do you remember I said you should make exceptions? Well, Target has a separate section of its return policy that addresses exceptions:
One of my favorites is the first one on the list, which is shown above.
You can bring back anything within one year and get an exchange or refund if it’s a Target-owned brand item.
This type of extended policy makes it really enticing for a customer to buy from the store.
Conclusion
Your return policy is much more important than you might think. Customers take this into consideration when deciding whether they’re going to make a purchase or not.
That’s why you need to offer free returns.
Set up a trial system allowing people to try products you sell online before the sale is finalized.
Returns need to be as easy as possible. Give customers lots of options so they can choose a return method convenient to them.
Your return policy should be easy to find on your website.
Stand behind your products. Make sure it’s easy for people to reach a customer service representative.
Extending the deadline of returns from the purchase date gives customers an added incentive to buy.
You don’t want to encourage returns. But changing your return policy will help you generate sales. Use this guide as a reference to implement changes.
What return policy does your business offer, and will you make changes to it in the near future?
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Dreaming of some financial TLC in 2019
Christmas is approaching and another New Year beckons. Bring it on. For me, on Christmas day it will be turkey, Christmas crackers and the odd tipple or three with my dearest mother
Time to reminisce about Dad, visit his memorial plaque at the crematorium, lay some flowers and say a few words – and maybe even go for a painful jog around the Brabazon golf course, made famous by epic Ryder Cup battles lost (once), won (twice) and drawn (once).
Then it will be straight back to London, for work, New Year’s Eve and a pyrotechnic display to end all displays in central London. I shall watch from my 3ft square balcony while Barry Manilow purrs away on my retro record player (for some inexplicable reason Copacabana is a New Year’s Eve favourite of mine).
Like everyone else at this time of year, I will take time out to reflect on the year just gone – and think about what 2019 will bring.
A marriage in the family? Maybe: the middle of my three ‘boys’ – now aged 26 – has just got engaged and he seems happier than I have ever seen him.
Freedom from a mortgage at long last? (50/50). A visit from Agent Million of National Savings & Investments telling me I am its latest Premium Bond ‘millionaire’ prize winner? No way, I have more chance of travelling to the moon while holding hands with Sir Richard Branson and persuading him to sing Copacabana than Agent Million rattling my front door.
In fact, when it comes to Premium Bonds, my middle boy never seems to stop winning.
At this time of year, I also always look back and forward from a personal finance perspective (yes, I know, it is somewhat sad but it is what most money geeks like me tend to do).
Don’t forget to listen to Barry Manilow on New Year’s Eve
Looking back, I feel somewhat indifferent about how things have panned out on the family finance front in 2018. Of course, it is heartening that 10 years on from the 2008 financial crisis we seem at long last to be creeping out from the long jaws of austerity.
But the economy is hardly bouncing along – more trundling – and stock market wobbles are a regular occurrence as interest rates start to rise (for the record, equity markets do not particularly like it when interest rates are on the march). There may not be a banking crash on the horizon, but do not rule out a severe market correction in the months ahead.
A further bank base rate hike to 0.75% in August this year should have brought a little joy to savers. But some naughty building societies and many naughtier banks decided to act Scrooge-like four months early by passing on little of the rate rise to savers. Unimpressive behaviour. Despite welcome entrants into the savings market such as Goldman Sachs (trading under the Marcus brand), earning a half decent return from cash will remain a challenge for the foreseeable future.
Of course, while savers are suffering from the parsimony of the banks and building societies, borrowers continue to enjoy competitive loan rates. I am currently in a fixed-rate mortgage and if you are a homeowner I implore you to follow suit. I can think of no better financial protection for the challenges that lie ahead – post Brexit and beyond and that includes the possibility of a free-spending Labour government.
If there were one wish that I could have granted this New Year’s Eve, it would be for the personal finance industry to become more welcoming and embracing. It still amazes – and annoys – me that most financial companies are not interested in cementing long-term relationships with customers. It’s behaviour that often results in loyal customers being discriminated against in favour of new ones – across a broad spectrum of product areas including broadband, insurance, mortgages and savings.
Maybe the super complaint that Citizens Advice has recently lodged on this issue with the Competition and Markets Authority will help change behaviour. I hope so because it is illogical and unfair.
So I wish for a 2019 where TLC (tender loving care), not QS (quick sale) becomes the mantra in financial circles, where loyalty is routinely rewarded by financial companies that are built on a commitment to customer service. Dream on I hear you chirp? Maybe, but you have got to aim high.
All that remains is for me to wish you a super remaining 2018, a wonderful Xmas and prosperous New Year. And don’t forget to play Copacabana on New Year’s Eve. You will go into 2019 with a smile on your face. It’s 100% guaranteed – a bit like NS&I (100% guaranteed by HM Treasury).
Jeff Prestridge is the personal finance editor of The Mail on Sunday. He won the Contribution to Personal Finance Education category at the Santander Media Awards 2016. Email him at columnists@moneywise.co.uk.
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Empty properties: how to bag a bargain
Given the focus on the shortage of affordable housing, it’s surprising that there are thousands of empty properties around the UK, many of which could make great homes. Here, we explain how to find one, bag a bargain – and even get money towards doing it up
There are around 700,000 empty homes around the UK. While a good proportion of these are just temporarily vacant, the estimated figures for long-term empty properties – those that have been empty for over six months – are still high at approximately 271,390. In England, there are 205,293; in Scotland, 37,135; in Wales, 27,000; and in Northern Ireland, 1,962.
There are several reasons why homes are empty. Chris Bailey, campaign manager for charity Empty Homes, says that while some expensive flats bought solely for investment purposes by overseas landlords or investors are left empty, the vast majority of properties are empty because of ordinary financial concerns.
“One of the most common reasons that properties are empty is because the owner cannot raise the money to do the property up to let it out, or sell,” he explains.
“Perhaps they previously rented it out and it now needs more works done to it or maybe they inherited it. Then there are those bought unseen at auction as investments; these can prove challenging and may require more working capital for refurbishment than the buyer has available.”
For those seeking to find a cheap property to buy, it’s certainly worth considering such properties. With so many spread around the country, there is a good chance that there is an empty property near you. Moreover, with no residents or tenants, it is likely to need some remedial work and may therefore be priced to reflect this.
“You may need a broker to find a lender willing to lend on an empty home”
How do you find empty properties?
You will have to be prepared to do some research to find empty homes in your area. If you live near an empty property, there may be a gardener or occasional visitor whom you can approach. Alternatively, a neighbour may know something about it. You can even drop a note through the letterbox giving your contact details, explaining that you are potentially interested in buying the property.
Estate agents are also worth contacting as they may know of a local flat or house that needs rescuing or have one languishing on their books that needs work.
Alternatively, you can try to obtain information from the local council about the property. Many have an empty property officer, who may be able to tell you more about an empty property you’re interested in or about other empty properties in the neighbourhood. If the property is embroiled in a planning dispute, the local authority planning office should have a record of any planning applications registered to that address.
As many local authorities have schemes to try to get empty properties back into use, they may be able to trace the owner and pass your details on to them. However, there are limits to what they can do for you as there are data protection guidelines that need to be adhered to.
Once you’ve identified a potential property in England or Wales, you can carry out of a search for the empty property’s owner on the Land Registry’s website. For only £3, you can then download a Title Register providing this information. For properties in Scotland, you need to contact Land Searches Scotland. Strangely, in Northern Ireland you need to physically visit a Land & Property Services customer information centre or write in.
Online auction catalogues are also a good place to find empty properties for sale. For instance, Savills Auctions publishes its catalogues two weeks before a sale and allows those interested to attend a viewing before the auction.
“Online auctions are a good place to start”
Buying the property
It’s crucial to make a proper assessment of any property before you buy, as Mr Bailey points out: “If it’s cheap, there is a reason.” Therefore, it’s advisable to get a full structural survey done, as it should pick up costly defects such as subsidence.
Some councils, such as Kent County Council, provide interest-free loans to help get empty homes refurbished or converted into good-quality residential accommodation. Rhondda Cynon Taf County Borough Council in Wales even provides grants of up to £20,000 for owner-occupiers to renovate an empty property they’ve purchased – an invaluable aid to first-time buyers.
Getting a mortgage
Cash buyers obviously have an advantage when buying empty properties requiring work, but if you need to borrow funds there are many options available.
If the property is run down but habitable (has a working bathroom and kitchen) and needs only minor improvements, a standard mortgage is an option. However, many lenders may only lend up to 80% to 95% of the current value of the property and may withhold some funds as a ‘retention’ until works are complete.
If the property is not habitable, you may need the help of a mortgage broker to find a specialist lender willing to lend against it. David Hollingworth, London & County’s spokesperson, advises that owner-occupiers contact a lender such as the Ecology Building Society or Buildstore Mortgage Services.
“A stage-payment mortgage is most suitable if the property is not habitable, or you need help to fund the property purchase and improvement works,” says Rachel Pyne, director of financial services at Buildstore Mortgage Services.
“Your borrowing capacity is not limited by the current value of the property. You can potentially borrow 85% to 95% of the property purchase and improvement costs, up to a maximum of 85% of the expected end value of your home when works are complete,” she adds.
Saffron Building Society offers buy-to-let mortgages for properties that are not immediately lettable and require light refurbishment (new kitchen, bathroom, rewiring, central heating or general decoration within three months of completion but not structural works).
Mr Hollingworth adds that investors can also consider a bridging loan to secure short-term funds for renovation works on a buy-to-let property. These are available from specialist lenders, such as Precise Mortgages or Shawbrook Bank.
Mr Bailey points out that if you’re taking on your first refurbishment project it’s worth bearing in mind:
“It’s crucial to do your research, expect some cost escalation and check the local market for comparative cost estimates by talking to reputable local builders, such as one that is a member of the Federation of Master Builders.”
Given the huge number of long-term empty properties in the UK, it is certainly worth keeping an eye out for a potential property bargain.
“We couldn’t afford to have the house lying empty”
A frequent reason for a property lying empty is a change in family circumstance, such as a death or marital breakdown.
When Ms Jones and her partner split up in early 2017, both moved out of their three-bedroom semi-detached property in Enfield, north London. Within a couple of months, the property was up for sale for £539,000. After a year empty, they agreed to switch estate agents and dropped the price, with the property selling in September for £440,000.
She explained: “The buyer definitely got a bargain as similar properties in the area go for much more, but we were forced sellers. With a mortgage and council tax to pay, we couldn’t afford to have the property lying empty.”
“Being focused on our end goal gave us the strength to carry on”
Victor Evans and Robin May (pictured left to right) both live in Dover and learnt from an estate agent of a local property that had failed to sell at auction.
They had previous experience of refurbishing properties and liked St Martins Yard in Lorne Road, Dover, so much that in 2010 they took out a £190,000, 100% mortgage with NatWest to buy it. The building, formerly used for car sales, had been derelict for 10 years.
Their aim was to transform the site over 18 months to provide family homes and flats for sale.
However, things didn’t go according to plan as obtaining planning permission from Dover Council took far longer than expected. Permission was only granted in 2012 for five houses and seven flats on the site.
By then, the original development loan from NatWest for a further £650,000 had expired. Fortunately, Kent County Council’s (KCC) ‘No Use Empty’ initiative stepped in to unlock phase 1, with an interest-free loan of £125,000 to develop the five houses.
After the houses were completed in June 2016, KCC then approved another loan of £425,000 at 5% interest to ensure the project completed, creating a further seven much-needed flats.
The homes, which are currently rented out, are now valued at £1.6 million and the KCC loan of £550,000 in total, is due to be paid back in March 2022. In addition, there is still around £160,000 of the original NatWest mortgage remaining.
Victor and Robin did 90% of the work themselves and spent £100,000 of their own money on materials over the years to complete the mammoth project.
Despite all the ups and downs, Victor told Moneywise: “Being totally focused on our end goal gave us the strength to complete the site.”
FIND OUT MORE…
- No Use Empty: No-use-empty.org
- Empty Home Charity: Emptyhomes.com
- Land Registry (England & Wales): Eservices.landregistry.gov.uk/eservices/FindAProperty/view/QuickEnquiryInit.do
- Land Registry (Scotland): Scotlandlandregistry.co.uk/contact/
Chris Menon is a freelance financial journalist and runs the investing blog Safestocks (Safestocks.co.uk)
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