4 Common Obstacles to Making a Useful Budget — and How You Can Beat Them

5 Strategies That’ll Help You Beat Uber’s Surge Pricing on New Year’s Eve

After the ball drops and the bubbly pops to ring in the new year, the last thing you want to think about is how you’re getting home.

But New Year’s Eve is notorious for auto accidents, and about 41% of fatalities during the holiday period involve drunken drivers, according to the National Highway Traffic Safety Administration.

I’m not going to tell you not to go out and have a great time with your friends. But New Year’s Eve is one of those events I call an “amateur night”; there’s a lot of alcohol and not a lot of thinking about your own tolerance levels. Everyone’s focused on celebrating. And that’s cool.

But since we know many people are going to get sloppy, it’s important to plan your New Year’s Eve travel before the big night.

You probably know that if you take Uber after the clock strikes midnight, you’ll likely face surge pricing, the increase in standard ride fees that occurs during high-demand periods.

But is paying more the only way to get a safe ride home?

Use these tips to plan what could be the most inexpensive part of your night out — because, let’s be real, you paid way too much to go to that fancy New Year’s Eve party.

1. Play the System

Everyone has a friend who installs every ride-hailing and ride-sharing app imaginable on their phone and flips through them until they find a price they like.

Be that friend on New Year’s Eve.

Download Uber, Lyft, Via, Gett or whichever app floats your boat. Fill ’em up with your billing info so you’re ready to go on the big night, then start scanning the competition. By having multiple options, you increase your chances of avoiding surge pricing.

2. Stock Up on Promo Codes

Have a promo code for a discounted or free ride? Make sure it’s applied to your account before you start cracking open bottles of champagne.

Ride-hailing and ride-sharing companies may black out some referral codes or promo offers on their busiest nights of the year, but it’s always good to be prepared.

3. Plan Your Trips to Anticipate Costs

Historically, the cheapest times to take Uber early on New Year’s Day are right after the ball drops around midnight and again after 3 a.m.

Want to stay out late, but not that late? Wind down the night at a friend’s place so you don’t spend money at a bar until closing time.

4. Walk a Few Blocks

If you’re with group or in a busy, well-lit area, it may be worth walking a few extra blocks to get a ride in a surge-free zone. Use an app like SurgeProtector to see the surge territory near you and whether it’s worth hoofing it a bit.

Be prepared for every zone to be a surge zone at some point on New Year’s Eve and early New Year’s Day, though.

5. Take a Cab

Standing on the curb trying to flag a cab after midnight Jan. 1 will be frustrating at best.

Before the festivities begin, find out if your local taxicab commission has an app of its own. You may not save money by hailing a regular ol’ cab from your phone, but you’ll be able to stay warm while you’re waiting — and you won’t have to shout over the crowd to call dispatch.

Lisa Rowan is a senior writer and a producer at The Penny Hoarder.

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

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 Rewards Good Fitness With up to $10,000 Cash

My Controlling Ex-Husband Wrecked My Credit. How Do I Rebuild?

Dear C.,

After all you’ve been through, I’m sure this news from the bank felt like yet another gut punch. But I want you to know that the worst of this is over. It’s all on the mend from here. Put aside whatever your ex told you about being bad with money. You can’t make the impact of what he’s done go away. But you are taking the right steps to rebuild your finances.

It may sound fishy, but getting a secured credit card can be a great step toward repairing that financial damage.

Unlike a regular line of credit, you put down cash as collateral, and then you’re given a credit limit of that same amount on your secured card. Pay the bill (in full, please) each month as you make purchases on the card, and after a while, you’ll be able to switch to a regular credit card — and you’ll get your original collateral cash back from the bank.

But be sure to shop around for a secured line of credit. Some charge big fees, or don’t help build your credit history. A good secured credit card will report your payments, balance and other activity to the three major credit bureaus.

If you haven’t done so already, be sure to get a copy of your credit report. Review it for any discrepancies, and check whether accounts were opened in your name without your knowledge. You may also want to place a fraud alert with each of the credit bureaus, in case your ex tries to get new credit in your name.

If you run into trouble trying to close or resolve accounts with creditors, reach out to a victim advocate who can provide financial or legal advice based on your situation. The National Domestic Violence Hotline and your local YWCA are two resources that can help you find a victim advocate in your area.

The hardest part of leaving your ex and starting over may be behind you, but there are still challenges to come. It will take years to fully rebuild your finances.

Stay confident that you are good with money. And know that your money is nothing but your own now.

If you need help leaving a financially controlling relationship, call the National Domestic Violence Hotline: 800-799-SAFE (7233).

Have a tricky money question? Write to Dear Penny and you might see your question answered in an upcoming column.

Lisa Rowan is a personal finance expert and senior writer at The Penny Hoarder, and the voice behind Dear Penny.

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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When to Sweat the Small Stuff

One of the big tricks of frugal living is to know when it’s worthwhile to sweat the small stuff and when it’s better to just let it be. There are times when paying attention to a few cents can end up making a big difference, and there are times when paying attention to a few cents is a complete waste of your focus. The challenge is being able to instantly tell which is which.

At this point, I’ve developed something of an “instinct” for being able to tell when the pennies are really worth my attention or not, so I don’t even have to think about it. I just run subconsciously through a series of criteria to decide whether it’s worth my time and attention or not. Here are most of the criteria that I use.

If I have to give away personal information, it’s not worth it. If something is demanding my phone number or my address or, even worse, my Social Security number or my driver’s license number, it’s not worth saving a few cents or earning a few cents in interest. I’m just not going to give my personal data away to a company in exchange for a very small amount of money. Not only does this increase the likelihood of things like spam calls and junk mail, it also raises the risk of identity theft. I’m not on board for any of that.

Thus, I don’t switch bank accounts to get another 0.1% or 0.2% interest on my checking. I don’t hop from credit card issuer to credit card issuer. I’m extremely picky about who I give my info to, and there’d better be a big win in exchange for that data.

If it affects something I do constantly, I’m going to pay more attention. I use electricity almost all the time. I do dishes at least once a day. Sarah or I do a load of laundry at least once a day. I use the fridge constantly. I eat three meals a day. I use the bathroom several times a day. I drink water or some other beverage several times a day. I drive my car at least a few times a week. I exercise at least a few times a week. If a frugal tactic affects those things – or other things I do on a very frequent basis – I’m probably interested, as long as one of the other rules below doesn’t eliminate it.

For example, I drive frequently, so money saving tactics like keeping my tires at the maximum recommended pressure and sticking with the maintenance schedule are big values for me. I drink beverages throughout the day, so training myself to drink lots of water is another big money saver.

If it affects something I do rarely – less than twice a week – I usually don’t pay attention. This is the flip side of the above rule. If this frugal strategy affects something I don’t do very often and it only saves me pennies each time, it’s probably not worth worrying about. I don’t worry about saving pennies on things like coffee shop visits because I virtually never go to coffee shops. I don’t worry about saving pennies on riding the metro because there isn’t a metro near me, thus I virtually never ride it. Those tactics simply aren’t worth my time or energy to investigate further, so I don’t.

For example, I generally don’t pinch pennies when I go out to a coffee shop or a restaurant because I do it so rarely. I generally only go when there’s a good social reason to do so – I’m meeting an old friend or we’re celebrating a perfect report card or something. I don’t pinch pennies when I’m out and about in a new city or country because I do it so rarely. I plan ahead for such trips so that I can explore the new area without being constantly cost conscious.

If a tactic takes very little time investment, meaning it’s just a replacement for another routine, I’m interested. Ideally, if something’s saving me only a few cents, it’s not worth it if it takes much time investment at all. On the other hand, if it requires exactly zero time and energy investment going forward, or such a small amount that it’s trivial (like grabbing an item off of a different shelf at the store), then it’s something I’m interested in.

For example, switching to a store brand takes no energy or effort or time at all, but it saves some pennies every time you’re buying a store brand instead of the regular name brand you perhaps previously bought.

If a tactic only requires a single up-front investment of time to consistently save small amounts of money going forward with no further effort, I’m interested. This is a pretty broad category, as it includes things like making energy efficiency improvements to one’s home, calling around to get your cell phone bill reduced, and doing a zero interest balance transfer on your credit cards. If I can spend fifteen minutes or an hour or even a couple of hours doing something now that will save me money in drips and drops for a very long time, I’ll almost always do it.

For example, I’ll happily make a batch of powdered homemade laundry soap once every few months, enough for 100 loads or so. Each load saves about $0.15 compared to a name brand laundry detergent and about $0.08 for the no-name cheap laundry soap, so the savings doesn’t come immediately, but rather gradually over time. I’ll happily switch to more energy efficient light bulbs everywhere I can, not because it’s cheaper up front (it usually isn’t), but because of the long tail of energy savings and not having to replace bulbs so often.

If a tactic requires continual time, energy, or thought to only save pennies, I’m not interested. Things that require me to constantly remind myself to do certain things or to take on a whole new routine just to save a very small amount of money aren’t things that I’m going to incorporate into my life. It is not worth it to me to take on an extra minute or two of effort every day to save a bit of pocket change.

For example, I’m not particularly interested in washing resealable food bags as a way to be “frugal.” It’s far more cost effective to me to get better microwave-safe and dishwasher-safe containers for leftovers. Another example: it’s not worth it to me to clip coupons, because I save a pretty small amount per coupon I clip as virtually all coupons are for name brands and I buy most things in store brand form, so the savings is often zero and typically only a few cents per coupon.

These principles handle virtually every frugal strategy that comes my way. It’s usually immediately obvious when it falls under one of these rules, and I really only have to think about it when it falls under one “yes” rule and one “no” rule (though usually the “nos” win out).

These rules exist to keep me from investing too much time and energy into frugal tactics that won’t really save me much money. Time and energy have a financial value – I don’t want to invest time and energy and focus into things that don’t give me a good return on that time and energy and focus. In general, if I can’t make a clear case that I’m saving more than at least $10 an hour (and preferably more) for my time invested in it, I’m not going to do it. While I could calculate out the exact amount I’m saving for the time invested, it’s not really worthwhile to calculate every single thing I might be doing. What I’ve found is that these rules help me figure out which little things – the things that return only pennies – are actually worthwhile and which ones aren’t. I’ve applied them so often that they’re now basically instinctual – a frugal instinct, in other words.

That’s the approach you should take with these rules – consider them and use them often enough so that it becomes second nature to just instantly apply them and decide whether a frugal tactic is worth your while.

Good luck!

The post When to Sweat the Small Stuff appeared first on The Simple Dollar.

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How This Woman Paid Off $26K in Debt in Under 3 Years on a Single Income

Barclays sees sense over mortgage for 90-year-old

Moneywise helps a reader who wanted to extend their mortgage

We wrote to you last August about my 90-year-old mother’s problems with her Barclays interest-only mortgage after she suddenly got a letter demanding she repay it in April 2019. She simply wanted to extend the mortgage as she can still afford it – her circumstances hadn’t changed and she wants to remain in her own home. The only way to repay the loan was to sell her home, which would be distressing and create problems about finding somewhere suitable to live. We had lots of trouble getting any sense out of Barclays but once you intervened they started listening and eventually gave Mum a 10-year stay of action, which put all our minds at rest. We are all delighted that Mum is secure in her home and would like to think that we have made the process a lot easier for those who find themselves in a similar position.

Barclays offered to send Mum a hamper and, as a goodwill token, a cheque for £250 for the distress caused. We feel aggrieved that it took up so much of our time to get things sorted and also feel that the mortgage was mis-sold in the first place. But should we simply ignore the mis-selling and other problems and accept Barclays’ offer? The mortgage offer seems to be pretty much what we originally asked for, which Barclays said it initially couldn’t do. Why did it put us all through so much stress?

EF/Kent

• Mortgage lenders are failing to give vulnerable borrowers in arrears enough support, FCA finds

Regular readers will remember me writing about this problem, so it’s great to report that Barclays did see sense and extend the mortgage for another decade.

The bank told me: “We apologise to Mrs F and her family for the distress and inconvenience caused as we’ve taken the time to properly investigate and fix this case. We have worked closely with the family to agree an extension that will allow Mrs F to stay in her property beyond the agreed term of the mortgage and at no increased monthly cost.”

This is a great result and hopefully the bank will rethink its approach to other older people who find themselves in the same position.

• What’s the best way to pay off the capital on our interest-only mortgage?

EF told me: “It has been very stressful and time-consuming dealing with Barclays and we feel your involvement has definitely assisted greatly. The bank has assured me that it will be putting measures in place to prevent others finding themselves in a similar position, which is great.”

But what about the bank’s £250 goodwill gesture? Of course, you feel aggrieved about the lengths you had to go through to get the right result but I would move on now and accept the offer. It’s a gesture, not compensation. Take the cash and use it to celebrate your mum getting peace of mind about her home.

OUTCOME: Mortgage extended, plus £250 goodwill gesture

 

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Jasmine Birtles: What a rip-off!

Velcro – what a rip-off, eh? And I’ll tell you another thing that’s a complete rip-off: the 21st century. Yes that’s right – the whole of it. Not only does everything feel more expensive in this century, it actually is more expensive.

And that’s taking into account our alleged ability to shop around on the internet.

I am still reeling from news from a local radio DJ (so it must be true) that some pepperoni pizzas now include fewer slices of said spicy sausage than they used to. For goodness sake, IS NOTHING SACRED?

• Make your own loo roll: 10 green household tips that won’t cost the earth

Apparently not. According to research by the booking app TrainPal, on average we spend an extra £31.90 every month on rip-off charges and hidden costs, adding up to almost £400 every year. Personally I think that’s a very conservative figure, particularly as it doesn’t even include the invisible rip-offs like being shortchanged on our pepperoni slices.

The app’s research finds that our top five rip-off hates are:

1. ATMs that charge us to withdraw our own money (although, be honest, those are usually only used when drunk)
    
2. Booking fees (my personal pet-hate)
    
3. Train fares (where do I start?)
    
4. Motorway petrol station prices (they’ve got us over a barrel…literally)
    
5. TV and broadband prices that go up during the contract (showing that loyalty really doesn’t pay in this country)

• Speak your mind and get paid for it

But fear not, gentle reader, for I have some sneaky suggestions for getting round these fees and charges. Do send in some of your own…we’re always keen to hear of more sneaky ways to save.

“Male friends of mine are an ‘item’ just to get discounts”

1. Book tickets on two different computers. The internet fairies watch your every keystroke and if you keep looking for the same sort of train or plane ticket two or three times they know you really want to go there. That means they will put the price up for you only. Scotch their black magic by using a different computer – or clearing your cookies – before finally booking the ticket.
    
2. Love posh hotels but can’t afford a room? Go have a pot of tea in the lounge and sit around for hours. Admittedly, the tea will cost between £5 and £10 but you can usually stay as long as you like and they often give you free biscuits or mini cakes.
    
3. Get on the newsletter list for every art gallery in your area. Every time they launch a new collection they hand out free bubbly and nibbles. You can eat for free a few nights a week on them!
    
4. Make sure it’s your birthday every time you go out to eat. A free dessert, free drinks and possibly even a whole cake all for you could be up for grabs.
    
5. Go to New York if you want to go to Manchester. Really, at certain times of the year it’s cheaper to go from Heathrow to New York to Manchester than get a return train ticket. Crazy, but them’s the days we live in.
    
6. Make the most of couples discounts by having a ‘significant other’ (of any sex) to get those double deals. Male friends of mine are an ‘item’ just to get the couples discount at a local gym. Well if they’re going to discriminate against singles what’s a cool man-about-town to do?
    
7. Whinge at your MP a lot. The Chancellor bunged £420 million to deal with potholes at the last Budget, and only gave £400 million more to education, because people make more fuss about potholes than they do about the state of our education system. So if enough of us spend enough time bitching about booking fees, for example, we might even get some legislation to ban them. And, let’s face it, MPs barely have anything to do nowadays. After all, it’s not like there’s some economically cataclysmic event looming ahead of us in the spring that MPs need to put at the top of their agenda. Just bother them about this and make them do some work for a change.

Let me know how you get on!

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Another John Lewis tale of woe

Moneywise helps a reader with a damaged kitchen

The UK’s department stores are struggling. House of Fraser went bust last summer before being bought by Sports Direct, while Debenhams has announced plans to close around 100 shops. Even dear old John Lewis has been forced to issue a profit warning and announce the closure of five of its Waitrose supermarkets.

There are lots of reasons but chiefly because many more of us are buying online rather than on the high street.

How can traditional stores fight back? Having superior customer service is one way to retain shoppers. That’s what John Lewis used to pride itself on, but for the second time on these pages I’m sad to report a case where it has let customers down.

• Estate agent wants £13,500 fee - for not selling my house

This time, the story revolves around kitchen woes. In 2016, GL of Berkshire spent around £20,000 on the design and installation of a new kitchen from John Lewis in High Wycombe.

He reports: “After less than three years the kitchen has been significantly damaged because a plumbing joint, installed by John Lewis and not modified by anyone else, has failed. It is the third time a plumbing joint, installed by John Lewis as part of our new kitchen, has failed.”

He took his complaint to the company last summer, only to be told that the kitchen was outside its two-year warranty.

GL was angered by the response.

He said: “In relying on a recently expired warranty, the company is missing the point: I believe John Lewis is in breach of contract, for failing to carry out services with reasonable care and skill, contrary to section 49 of the Consumer Rights Act 2015, when it designed and installed our kitchen.”

• I don't know why PayPal has closed my account

He said the firm should replace the damaged kitchen panels and pay compensation for the damage to the kitchen floor and for an emergency plumber to be called out. By the time he contacted Moneywise, he was at his wit’s end. “This case has been going on for so long now, John Lewis is treating us like nuisance customers, and trying to fob us off with claiming on our insurance,” he told me. “So much for their reputation for customer care, people should be warned!”

I contacted John Lewis on GL’s behalf and got a swift and positive response. Having looked into the case it conceded the company was at fault and promised to remedy the situation. A spokesperson told me: “We are very sorry about GL’s experience, which was well below the level of customer service we aim to provide. We have apologised to GL and will compensate him for the damage caused to his kitchen. We are working hard to get this resolved as quickly as possible.”

“I believe John Lewis failed to carry out services with care and skill”

That was great news. I told GL, who responded enthusiastically: “That’s amazing – the power of the press!”

As far as I was concerned that was the end of the problem. I was wrong.

A month later, I got back in touch with GL to check that everything had been sorted out. It hadn’t.

He reported: “We have not yet had any resolution. All that has happened so far is that John Lewis High Wycombe has been in touch to ask that we prove there has been water damage with a report from the emergency plumber. We cannot do that because in the heat of the moment, we just wanted him to resolve the problem of the flooding, so didn’t think to get a report.

• A cheeky charge from Plusnet

“Because we can’t get a report from the plumber, John Lewis asked us to claim on our insurance before it will repair the floor. They said they need something to say it’s consequential damage. But I’m not sure how we persuade our insurers to do that.

“There has certainly been no apology, compensation or move to resolve the issue ‘as quickly as possible’ as they stated. It’s been pretty rubbish.”

Back I went to John Lewis. Once again, the company was apologetic and promised to speed things up.

A spokesperson said: “We are very sorry about GL’s experience and the time it is taking to resolve. We are in touch with GL to arrange for a fitter to visit his house to assess the damage and reach a solution.”

As we went to press that was the situation. But I remain confident that John Lewis will keep its promise and play fair by GL. Eventually!

OUTCOME: John Lewis promises kitchen repair and recompense

 

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