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الاثنين، 5 أكتوبر 2015

5 Techniques to Get 5 Stars: How to Get More (and Better) Online Reviews

ratings

Everywhere you go, you see reviews.

Whether it’s a physical or digital product, if it’s worth talking about (in good or bad ways), it has reviews.

Some of this feedback is simply comments on blogs and forums.

But mostly, reviews exist on large e-commerce sites where companies sell their products.

The most important thing about reviews is that people care about them.

About 30% of Internet users check out reviews on Amazon before buying a product. And that’s just Amazon.

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Another 13% head to Google.

Before, people would ask their friends about products. But now, they rely on online reviews.

People trust reviews to inform them about their decisions, and reviews play a huge role in people’s purchasing decisions. 

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Although there’s no way to definitively say that reviews are good for business, just about every study or anecdotal case suggests that they are.

For example, Capterra analyzed the effect of adding reviews for software products and found that conversion rates increased significantly as more reviews were added.

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Furthermore, a more general analysis found that conversion rate could more than double if you had a large enough number of reviews.

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Although there is a mini-plateau after 20 reviews, conversion rate begins to increase again soon after.

You don’t have to be a big e-commerce site to add reviews to your personal website store.

Adding reviews increased Figleaves.com’s conversion rates by 35% and eSpares.co.uk’s by 14.2%.

These are massive increases in conversion rates that can result in tens or hundreds of thousands of dollars per year.

Potential buyers trust reviews for a few reasons:

  • They represent a real use situation
  • They are less likely to be biased (than a sales page)
  • They give visitors confidence to buy, proving there won’t be any issues with the purchase

Getting reviews is hard: If you’ve been selling online, you’ve probably noticed that it is difficult to get customers to leave reviews.

People want their products, but they don’t really want to do any extra work. Writing a good review can take 5 to 15 minutes without providing much of a benefit to the reviewer.

People typically leave a review for one of three reasons:

  • They hate the product
  • They love the product
  • They’re somewhere in-between but would like to clear up any confusion around the product for other potential buyers (essentially just doing something nice)

The first two reasons are pretty self-explanatory.

Obviously, you don’t want people leaving reviews if they hate the product. That’s how you get negative reviews and one-star reviews that actually decrease your conversion rates.

So, how do you prevent it? Simple: have a great product along with great customer service.

If you create a product that everyone loves, you’ll get tons of reviews.

In reality, most products have customers that fall into all three camps.

What you need to do is focus on the people who already love your product and the ones that like it. A solid three- or four-star review can still help your conversion rate.

And that’s what the rest of this post is all about.

I’ll go over the best ways you can maximize the number of reviews you get from your customers.

You might not like this, but it’s what you have to do…

Most business owners love to create products.

But only some business owners love to sell those products.

Selling often feels like you’re doing something wrong and imposing on the people you genuinely care about.

Asking for anything can be difficult.

But it needs to be done.

You need to start by realizing that selling doesn’t have to be underhanded. If you create a truly valuable product, sales is simply letting people know about it.

If your product is great, people will buy your product and thank you for the opportunity.

After you make the sale, however, you need to ask customers to review it.

If you don’t ask, most will never even think of doing it, even if they don’t mind.

Although it might seem like you’re imposing on them—asking for something without giving something in return—you aren’t.

Most happy customers are glad to help you spread the word of your product so that other people will also give it a shot.

So, stop thinking that you’re taking advantage of your customers and realize that you’re helping each other.

Ideally, you want to ask for reviews as soon as you can after the purchase is made and your buyer had the time to receive and test the product.

If you ask too early, customers can’t review the product because they haven’t had the chance to use it.

If you ask too late, they’ll have forgotten about it and are less likely to review it (although late is better than early).

Amazon typically sends an email reminder asking you to review a recent purchase a few days after you’ve received it:

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Customers don’t hate giving reviews—if you ask right…

It’s important to carefully approach the subject of reviews with customers.

First, you want them to receive the product and be happy with it.

The more satisfied they are, the more likely they are to not only leave a review but leave a positive one.

Before asking for a review, I recommend contacting customers and asking them if they had any problems with their order.

If they have had problems, they’ll let you know, and you’ll have the chance to fix them.

If they haven’t had any problems, some will let you know, but the others just won’t reply. It’s safe to ask any of these customers for reviews.

Finally, the way in which you ask for reviews is important.

Being persuasive with your request can double or triple the number of reviews you end up getting.

Tip #1 – Be appreciative: To be frank, reviewers don’t really get much out of the process. It’s just a nice thing they can do for other people reading reviews in the future.

However, many reviewers will do reviews if they know that they are important to you.

After all, you’ve just created a great product for them.

Even though they have paid for it already, many customers will feel that they should have paid more. This leaves them feeling indebted to you.

Many customers will leave a review if you tell them how important they are to you because then they can consider the two of you “even.”

For example, RealSelf is an online medical professional directory. It publishes reviews on all types of cosmetic doctors so that you can find one you can trust.

After you have found a doctor through the service, RealSelf asks you to contribute a review to the site.

There are two parts of the email in particular that make it work so well:

  1. “…would love for you to share your experience…” - They’re not just asking you to leave a review for the fun of it. They’re making it clear that they appreciate it and value it.
  2. “…will also help others make informed decisions” - Since the customer was just in the tough situation of trying to make a good decision, they are likely to be empathetic to other people in the same situation. Some customers will leave a review just to help others.

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Tip #2 – Make it simple: So we’ve established that most reviewers leave reviews because it’s a nice thing to do.

However, there is a limit to how much most people are willing to give to be nice.

If you make customers jump through hoops to leave a review, most aren’t going to bother.

The solution is easy: make leaving a review as easy as possible.

First, if you’re asking for a review on any third-party sites, always link directly to the review forms on the specific sites:

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Alternatively, if you’re asking customers to leave a review on your site, let them start the process by clicking on a star rating within an email. All the biggest sites do this for a reason. It works.

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The other benefit is that it makes it really clear that you’re looking for the customer to leave a review (they know what stars represent).

Tip #3 – Do NOT offer an incentive: Want to get every customer to leave you a review? Just offer them $100 if they do.

Incentivizing reviews is a gray area.

It has obvious moral issues. In some ways, you’re essentially bribing your customer for a good review.

Even if you don’t intend your incentive to be a bribe, most people feel compelled to provide good reviews if they’re being compensated for it (without any other potential buyers being aware of it).

A potential problem that might be even bigger is that you could be fined huge amounts if caught by the FTC (if you do any business in the United States).

Not all countries have these rules, so it’s up to you to check if there’s an equivalent organization in your country and determine if you’re morally okay with incentivizing.

If you are going to offer an incentive, you should ask your reviewers to disclose that fact in their reviews. If the review discloses the incentive, not only is there no moral argument, but it’s also not violating any laws.

Tip #4 – Be clear about what you’re looking for: If you just have one textbox that says “your review,” customers could write about anything, even irrelevant things.

However, if you break down the review into descriptive fields, your reviewers will have a much better idea of what to include:

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One way to improve the above form would be to add a description into, above, or beneath the “review” box.

You can prompt the customer to talk about certain aspects of the product that you believe influence buying decisions (shipping, packaging quality, durability, etc.).

Speaking of great reviews…here’s what’s in them

You can dictate the contents of a review by prompting your customers to think about certain topics.

This is important because most people don’t know what a good review consists of. They’ll often leave reviews like “great product” even though that’s not really very useful.

Instead, you want to prompt them with any (or all) of the following:

  • including their background situation
  • any special features of the product or buying process
  • their overall impression
  • would they buy again?

When you send your review request, just tell your customers that they can include any information they’d like. However, they should consider things like…(pick from the above list).

Part #1 – A quick background: Not everyone buys a product for the same reason or knows as much about a specific type of product as others.

The best reviews include a quick statement about why a customer bought a product. If another potential buyer is in a similar situation, they will automatically become more interested (it resonates with them).

Additionally, any mention of expertise also makes the review more credible (e.g., “I have purchased x types of product”).

Here’s an example:

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Part #2 (optional) – A brief description of product and buying process: Unless you’re selling your products through a well-known fulfillment service like Amazon, shipping speed and safety are still big concerns for online shoppers.

They affect almost every purchase:

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You should obviously make your shipping information very clear on your sales pages.

But people also want to know how fast and secure your shipping is in real life, not just in theory.

If a potential buyer sees multiple reviews praising your shipping process, they’ll feel assured.

Part #3 – The overall result: The most important part of any purchase is how good the product is. That’s going to be the focal point of any review.

If you’ve done your job right on the product creation end, customers will have great things to say about your product:

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However, you can still guide what they mention.

You could include a question in your email or on your review form like: “How did you like X feature of product Y?”

They will be more likely to take some time to think about that specific feature.

Part #4 – Would you buy again? Customers can often find at least a few good things to say about a product. Nice people leave nice reviews—it’s that simple.

However, the ultimate test of a great product is if it earns the loyalty of a customer.

When customers say that they will definitely buy from you again in the future, anyone reading the review will know that the reviewer is serious when they praise the product:

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Get automatic reviews with a system

Getting reviews shouldn’t be something that you try to do periodically. It should be something that you do with every single customer.

To maximize the number of positive reviews you get, you need a foolproof system.

We already looked at Amazon’s system:

  1. You buy a product
  2. You get the product
  3. You get a request to leave a review on Amazon a few days after

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They’ve done their own internal testing and determined that this particular timing worked best for the majority of their customers.

However, your customers may be different, so always test.

Timing is important: Why are customers different when it comes to this? Most of it comes down to the type of customer you have and the product.

First, certain people expect online shipping to be faster. They want their product right away so they can start using it. This is typically true if you have a young demographic.

Secondly, some products take longer than others to test thoroughly enough to leave a good review. A frying pan only takes a few minutes to test, but a large book can take weeks to read.

If your product takes a longer time to test properly, give your customers a bit more time.

How to get consistent results: The only way to ensure that your customer gets your review request “X days” after they’ve purchased something is with an autoresponder.

After they buy something, add them to a new list just for customers:

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Then, set up your autoresponder to send out an email asking if everything went well.

Finally, send your review request sometime after that first message.

I recommend trying different time delays to discover which one produces the most reviews.

The best way to get great reviews if you’re starting from scratch

Every business faces its own unique challenges when it comes to getting online reviews.

The hardest stage is right at the beginning when you have no reviews.

When you have no reviews (or very few), potential buyers are hesitant to be the first buyers. They want to see that other people have bought your product and liked it.

To make things worse, people often don’t want to leave the first review. Unless they are an expert on your product, they don’t want to leave an opinion and look stupid if they’re wrong.

Instead, they’d rather look at other reviews first, get a general consensus, and then leave a review if their own opinion matches everyone else’s. This is also why it’s important to get off to a good start with a few glowing reviews.

Do not get fake reviews: Incentivizing reviews is a gray area, but buying fake reviews is clearly over the line.

If you go on Fiverr or Google phrases like “buy 5 star review”, you’ll find a ton of people willing to write you a five-star review without even seeing your product.

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Even without considering the ethics of doing this, it’s obvious that these reviews won’t be very useful.

Sure, you’ll get five-star reviews, but they’ll include no actual information that your potential buyers will care about.

In addition, most fake reviews are extremely easy to spot. And if a potential buyer sees multiple fake reviews, their warning bells will go off and cause them to buy someone else’s product instead.

So although you could buy reviews, you are better off focusing on earning them.

To do so, follow these steps.

Step #1 – Pick a site to focus on: There are tons of third-party sites that aggregate reviews on products or businesses.

For example, both Google and Yelp focus on local businesses, while Amazon obviously focuses on physical products and e-books.

To start with, pick just one review site to focus on. You can always expand to other sites once you’ve gotten some traction.

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Step #2 – Offer a free sample or product: As I said, you need to earn your reviews, which means getting them from actual customers.

This is where it’s a good idea to offer a discount, sample, or even free product in exchange for a review.

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Wait, what? “Didn’t you just say NOT to offer incentives?”

If you remembered that, well done. That means you’re paying attention.

Incentivizing reviews is murky territory, but only if you don’t disclose it. If you do, they are perfectly compliant with the law and just about anyone’s ethical code.

And when you need those first few reviews to get the ball rolling, a few reviews that aren’t perfect are still extremely valuable.

Additionally, just because your customer needs to disclose that you offered them something doesn’t mean the review will suck.

Here’s an example of what one might look like:

As one of the first customers to buy (product name), I was lucky enough to be offered a free sample to try.

I received the product after 3 days in perfect condition. Since then, it’s worked exactly as expected.

In particular, the (feature) is better than every other (type of product) I’ve tried.

I’ll definitely be buying more in the future.

Obviously it’s not a perfect review (since I’m dealing with a non-existent product), but if you could get started with 5-10 reviews like that, you’d be set.

The disclosure reads naturally and doesn’t really take away from the rest of the review as long as the reviewer is being honest.

Step #3 – Provide instructions: Figuring out how to leave a review is easy for you and me. However, for the non-tech-savvy person, leaving a review might be a head-scratcher.

To make sure that customers have no problems leaving a review, provide detailed instructions on how to leave a review:

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Even if they shop on a well-known platform like Amazon, most people have never left a review before. You need to walk them through it.

Step #4 – Make sure their experience is amazing: This is something we’ve already noted, but I want to re-iterate it.

To earn a great review, you need to provide a great experience.

The buying experience is composed of many different parts:

  • the branding
  • the packaging
  • the shipping process
  • the product itself
  • follow-up/customer service

Too many businesses make a great product but ignore the rest of the buying experience.

Then, they get three-star reviews saying the product was fine, but the shipping sucked, or they couldn’t get fast replies from the company when they needed help.

It’s not hard to make sure these other parts of the buying experience are great, but you need to spend some time and effort making sure that they are.

If you do that, the quality of the reviews will take care of itself.

One other great source of reviewers you should use

Let’s say you are starting from absolute scratch. I’m talking zero previous customers.

It’s hard to get customers to leave reviews to encourage more people to buy your product when you have no customers in the first place.

In this case, you can go for paid advertising to get your first customers. This is great if you have a budget and a little PPC expertise. However, it can get costly since not all customers will leave reviews.

Otherwise, if you have a tight budget, you’ll probably be going the content marketing route, which can take months to draw any customers.

However, there is one more opportunity that you can take advantage of to not only drive sales but also reviews.

Here’s the basic procedure.

Step #1 – Look for reviews of competitors: For this series of examples, let’s pretend that I just created the best keyword research tool ever.

Since there aren’t stores where you can sell this particular type of tool, I need to get some reviews to put on my sales page.

To start, I need to assemble a list of all my established customers.

This is pretty easy. Just Google “best (type of product)”.

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Ideally, you’ll find a big expert roundup that has all your competitors in one spot. Alternatively, you’ll just have to go through the first few pages of search results and record down competing products.

In my case, I was able to easily find the 10 most popular keyword research tools right away (lucky me):

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For each of these tools, I’m going to find people who have reviewed them and then approach them to get them to review my product.

To find reviews, just Google “(product name) + review”:

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Then, make a list of all the reviews you can find (which can be up to 100 for each product).

Step #2 – Contact the bloggers and make a proposal: Now that you have a large list of reviews, you need to get in touch with the reviewer.

Important note: Bloggers get pitches all the time through their “contact” forms, and most of them are terrible and just get ignored. To stand out, the best strategy is to join the blogger’s email list.

When you join an email list, you obviously get emails from that blogger, which contain their email address.

Then, you can create a personalized message that will definitely get to their inbox.

If you can’t find an opt-in form on the review page itself, go to the homepage:

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You’ll usually be able to find an obvious opt-in either front and center on the homepage or near the top of the sidebar:

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When you get an email from them, you can send one back, requesting a review of your product.

A template like this will work:

Hi (blogger name),

I came across your review for (competing product) today and was impressed with how detailed you were.

I actually just released my own keyword research tool, called (product name). I’m not sure if you’ve heard about it yet.

Considering how great your previous reviews have been, I wanted to see if you’d be up for giving my product a try. (I’ll provide you with a free license, of course).

The reason why I believe (my product name) stands out from all the others on the market is because of feature X: (describe feature).

If you’re interested, just let me know.

Thanks for your time,

(Your name)

Again, you are incentivizing the blogger to create a review, but as long as they include a disclosure somewhere on the page, there’s no issue. Most blog readers are used to such disclosures by now and don’t consider them in their decision-making.

Once you get a review, you can then publish the appropriate parts of the review on your website and attribute them to the blogger (let them know about it).

The results of different reviews: If you get a review done by a popular blogger, you can drive some serious sales.

That being said, popular bloggers are the toughest ones to get reviews from since they get pitched so frequently.

I’m not saying don’t go after them, but be aware that you will face a lot of rejection.

Lesser known bloggers, on the other hand, will be more receptive to your approaches. If all you want are reviews (and you’re not too worried about sales), target these bloggers first.

Conclusion

If you sell anything online, remember that reviews are one of the biggest factors that affect your sales, so don’t ignore them.

First, come up with a plan of attack to determine what type of reviews you need.

Next, optimize your sales funnel to maximize the number of customers who leave you reviews—and not just any reviews, great ones.

Finally, if you’re starting from scratch, use one of the methods I’ve laid out to start generating reviews for your new product.

Have any other ideas or questions about reviews? I’d be happy to discuss them in the comments below.



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Cars We Remember: Readers recall Crosley as American-built small car

Q: Hi, Greg. I want to let you know I was born in 1935 and was a “motorhead” by the age of 15. Your column on the first small and compact American cars brings back my memories of the two-passenger Crosley, which was very small and came with a two-cylinder engine. I owned a 1951 Crosley Station Wagon that by then had grown up a little and came with a four-cylinder engine with room for four passengers. I drove my Crosley for a year and remember this car was [...]

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Silvio Calabi: Honda repackages its Odyssey for value

Honda Odyssey owners — the two we encountered recently, anyway — seem to fizz with enthusiasm for their vehicles. Sports-car people do this, too, if not to the same degree. It’s expected of them, while Odyssey drivers may feel they have to overcompensate slightly. As in, She may not be Miss Universe, but boy can she cook!Forgive the gender-ism and stereotyping, but the point is that owners quickly realize that the Odyssey is more than just a breadbox family [...]

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Buying a House? The USDA Might Give You a Loan, Even If You’re Not a Farmer

Buying a house can be daunting.

Socking away enough cash for a down payment, choosing from a wealth of lenders and learning about the real cost of home ownership could send anyone’s head spinning — and that’s on top of finding your dream home!

But if you’re willing to let go of big-city living, consider a lender you might find surprising: the United States Department of Agriculture.

Where Can You Live?

Unless you plan on keeping chickens and cows, or living in the boondocks, you might think a loan from the Department of Agriculture won’t work for you.

As it turns out, the “rural” requirement isn’t as limiting as you might think. Check out the eligibility map at USDA’s website — lots of qualified territory is downright suburban, especially in the Northeast.

How Does It Work?

Aimed toward low- to middle-income households, USDA loans are a great option for those with an imperfect (or nonexistent) credit history. They require a low (or no) down payment, and you don’t even need to be a first-time home buyer!

The USDA began the loan program in 1991 to stimulate rural home ownership, but since “rural” means very different things for Massachusetts versus Montana, you might be able to use the loans toward a home in your area.

Plus, the loans have low interest rates and payback periods of up to 38 years. Curious yet?

Are You Qualified to Receive a USDA Loan?

There are two types of USDA loans — Direct and Guaranteed — with varying qualifications and restrictions, but if you earn lower-than-average income for your area, you probably qualify.

Holly at The Simple Dollar does a good job breaking down the differences between the two. Here’s a quick summary:

Direct loans are just that — loans directly from the USDA, intended for lower-income home buyers making up to 80% of the median income in their area.

The qualifications are a little more stringent on this type of loan. For instance, you must be without decent, safe and sanitary housing.

Guaranteed loans are procured through an approved third-party vendor and backed by the USDA, and are therefore more flexible.

You might qualify even if you make up to 115% of the median income in your area, and you’re allowed to use the funds for a larger variety of restoration and upgrades.

Even if you’re not sure you’re qualified, it could be worthwhile to check. The USDA might make an exception for you or present other options for assistance.

How to Apply

Head on over to the USDA’s website and locate a service center in your area. Once you find your contact, pick up the phone or shoot an email to being your homeownership journey.

Your Turn: Would you give up the urban lifestyle to score a loan for a more rural home?

Jamie Cattanach (@jamiecattanach) is junior writer at The Penny Hoarder and a native Floridian. She’s passionate about learning, literature, chocolate and finding ways to live the good life as cost-effectively as possible.

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Questions About Ally Bank, Savings Rates, Old Laptops, Tidying Up and More!

What’s inside? Here are the questions answered in today’s reader mailbag, boiled down to five word summaries. Click on the number to jump straight down to the question.
1. Defining frugal goals and projects
2. What is a “savings rate”?
3. Enjoying life without going out
4. Tiered accounts at Ally
5. Personal finance acceleration
6. Repackaging generics at home
7. Life-Changing Magic of Tidying Up
8. Uses for old laptops
9. 4% withdrawal rate question
10. Everyday carry and identity theft
11. Kitchen needs in the city
12. Collectibles and getting ripped off

Many readers have asked for updates on the health of our daughter. She’s recovering well from her ordeal. As you read this, she should be returning to school with some limitations on her activity and might possibly be doing only a half day today depending on her energy levels. The school has been great to work with on this matter, as have her doctors.

Honestly, she’s doing about as well as we could have hoped at this point. I was pretty certain early last week that there would be little chance of her returning to school already, but she has just done tremendously well the last few days and we think she’s ready for it.

Thank you so much to all of the readers who contacted me in various ways. It means a lot.

Q1: Defining frugal goals and projects

In March while doing my taxes I came to the realization that I needed to fix some things financially in my life. I had little savings and when I came up with some taxes owed I did not have the means to pay them. I had zero progress toward retirement or any other goal I had for the future.

Six months in and things are going well. I have a savings plan in place for retirement hopefully early and for replacing my car. I have eliminated about half of my credit card debt.

I am a very planning and project and goal oriented person and those things fit well with that. What is harder is finding projects that center around cutting my spending. It seems to me that frugality is mostly “tactics” in that it is how you make it possible to save more and move toward your other goals.
– Adam

For the most part, you’re correct. Frugality, at least in terms of the money it saves you, is often “tactical,” meaning that it is a very immediate move you make that will contribute to your bigger plans, like saving for retirement or paying off your debts. Choosing to not go out for dinner and instead make something at home is a tactical choice as part of the overall strategy of paying off your credit cards.

However, there are most certainly larger projects and goals that one can set that are purely frugal. I often have frugality-related projects and goals in the works. Right now, for example, I’m working on a project to fill up all of our Gladware containers with frozen make-ahead family meals and individual meals. That’s a big project, one that will easily take a couple of weekend days to pull off and a few weeknights of planning, too.

Another example of a project is the roughly annual purging of my closet. I often pick up things on sale or at Goodwill that I think I can easily flip for a profit and I stick those in the closet. Every so often, I go through that closet, pull out a ton of items that should be sold off, and then conduct those sales. To me, that’s frugal – I’m maximizing the value that I get from various sales.

There are many things like this that you can do. Go through all of your clothing, get rid of what’s worn, and also get rid of stuff you’ll never wear. Clean out your pantry and reorganize it to be as convenient as possible for food preparation at home. Learn how to prepare your, say, ten favorite dishes at home, and learn how to do it so well that it seems silly to go out to eat in comparison.

Q2: What is a “savings rate”?

What do you mean when you talk about saving 10% of your income? Before or after taxes? Do you include things like investment gains in that number?
– Tommy

Personally, when I talk about my savings rate, I am talking about the percentage of money that I put into savings and investments as compared to my gross income as reported on my taxes before any deductions.

So, let’s say, for example, that Sarah and I made $60,000 per year combined gross from our work. (After taxes, that might be something like $48,000.) If we contributed $6,000 per year to our investments and savings, I would simply divide $6,000 by $60,000 to get our savings rate – 10%.

Now, let’s say that we earned $3,000 in dividends and interest from our investments. That means our true gross income was actually $63,000. Of course, we just chose to roll those dividends and interest over into the accounts they were in, so we actually saved $9,000 this year – our $6,000 in cash contributions plus our $3,000 in rolled-over interest and dividends. Our savings rate then would be $9,000 divided by $63,000, which gives us a 14.2% savings rate.

I do not count any changes in balance within tax-advantaged retirement accounts or educational accounts when looking at these things, and the same is true for things like 401(k) matching from an employer. Once our money is in a Roth IRA or a 401(k) or a 529, I don’t consider any growth in there to be part of our savings rate. My savings rate consists of the portion of my taxable income that I choose to save or invest, and Roth or 401(k) or 529 earnings are not taxable income as long as it’s in that account.

Q3: Enjoying life without going out

When I look at the fun things I do with my wife they’re all straight off of your list of things that are giant money wasters. We go out to eat and enjoy delicious varied foods. We go to bars and have a few drinks and actually have fun. There isn’t much else to do in this relatively small college town. I guess we could sit at home and be bored but what is the point of life if you’re just sitting around waiting to die?
– Markus

For starters, I don’t actually find either of the things you mention to be particularly enjoyable. I vastly prefer preparing my own meals at home rather than going out to restaurants because I have far more control over what I’m making, from the ingredients to the flavor. I find it deeply engaging and enjoyable and satisfying to make meals at home. I also don’t enjoy the bar scene unless I’m drinking a craft beer with some friends, in which case I’d still rather be at my home or their home because it’s cheaper, not nearly as noisy, and there’s space available to do other things like play a game.

For another, I don’t know what “bored” is. I haven’t been bored since I was a teenager. Right now, I feel like there are more interesting things that I want to do than I will possibly have time for over the rest of my natural life. There are books to read, trails and wilderness to explore, friends to make, things to learn about, games to play, projects to tackle… my list of things I’d like to do would fill up a book. I haven’t spent a moment of my life “sitting around waiting to die,” and I don’t plan to.

I can’t make you want to spend your free time on things besides going out to eat and going to bars. That’s your own choice. But to say that the only other option out there is to “sit at home and be bored” while “waiting to die” is ludicrous and childish. Just because you chose to pass on the tens of thousands of other things you could be doing with your time without spending much money (or any money) is your choice.

Q4: Tiered accounts at Ally

I got an email notice from my bank (Ally) that talks about moving to tiered accounts. I use Ally for savings and a local bank for checking and earn 1% on my balance there which is way better than my local bank. This tiered account thing has me worried as it sounds like it’s just an excuse to cut interest rates and make more money for them and not for me. Thoughts?
– James

I’m pretty sure James is talking about this announcement from Ally Bank where they discuss moving to tiered savings accounts. A key quote:

“At Ally Bank, we’re committed to banking in your best interest, including offering consistently competitive rates. As part of that commitment, we’re introducing the following balance tiers on November 7, 2015.

Our new balance tiers reinforce our commitment to adding value to customers’ online banking experience and enhance savings. For dedicated savers, balance tiers may help you earn more as your balance grows.

What are balance tiers, and what does this change mean? A tiered rate account is an account that may provide a different interest rate based on the balance of an account. Ally will offer three tiers:

account balances less than $5,000
balances from $5,000 – $24,999
balances over $25,000

Our rates are determined by several factors, including conditions in the marketplace and the competitive environment. If rates eventually rise, balance tiers will provide Ally Bank with the flexibility to potentially offer customers a different rate based on account balance.”

If this change is in any way comparable to the tiers offered by other banks, what it means is that the interest rate you have on your account is now tied to the balance you carry in that account. Typically, that means that accounts with a higher balance will earn a higher interst rate – I’ve never seen it work differently than that.

Since they don’t provide any specific information in this notice, my guess would be that the lowest tier – balances below $5,000 – will see a drop from the current rate offered on Ally savings accounts (which seems to be 1.00% at the moment). The middle tier and higher tier remain to be seen, but my guess is that the middle tier will likely be fairly close to the current rate and the top tier will either match the current rate or be a bit higher.

So, is Ally still a good online bank? I think it won’t make much difference to people with a balance over $5,000. For those under $5,000, I expect Ally won’t be as good as it once was, at least in terms of a competitive interest rate.

However, I generally find that the most valuable thing that a bank provides is customer service, and Ally has a pretty good track record in that department. I’ve had some miserable experiences with banks in the past, so I am happy to forego a little interest to have a bank that has great customer service.

If you have a low balance, you may want to start shopping around and watch what the specific rates are when they are announced. If you have a higher balance, this probably won’t mean much of anything for you.

Q5: Personal finance acceleration

I would encourage you to tell all of your readers about how one’s finances start to accelerate as you start turning things around. Your net worth goes up so slowly at first abut as time goes on it goes up faster and faster and faster. For me that’s really motivating seeing it go up faster now and knowing that it will keep speeding up as I stick with the plan!
– Shawn

This is something that often comes as a surprise as people are turning their finances around. It all accelerates! At the start, you might only see your net worth improve by $100 a month or so, but it won’t be long before it’s jumping upwards by thousands a month even if you don’t add to your income.

How? Every time you pay down a debt, you’re being charged less interest in future months. That reduction in interest basically means an increase in your net worth because you’re sending less to the bank in the form of interest (and theoretically more as a payment on your actual debt principal).

It’s also true with investments. The bigger your balance is, the more money you gain when there’s a 1% increase in the value of that investment. Also, you gain more when there are dividends if you own more of it. Let’s say you buy one share a month, for example. After three months, three shares will produce dividends; after six months, six shares will, meaning you’ve doubled the money you’re earning in the form of dividends.

It all starts to accelerate. Even if you don’t change a thing about your earnings or about how much you’re spending, your net worth will start going up at a faster and faster rate the longer you stick with it. It’s just barely noticeable at first, but it slowly gets faster and faster and faster. It’s invigorating!

Q6: Repackaging generics at home

When I was a little girl my mother used to buy a lot of store brand products and we used them at home without any problem. Recently, in order to save a little money and get rid of our student loans a little quicker, I bought a bunch of store brand items (Up and Up, Archer Farms, Market Pantry from the Super Target down the block). My husband got really upset and said that he wasn’t going to feel poor in his own house. I think the reaction is silly but you’ve got to pick your battles. So, my idea was this – why not just save some packages of name brand items and refill them with the generics? He eats Cheerios a lot of mornings, so I could just buy store brand Cheerios and replace the bag inside the box.
– Maggie

It’s kind of a silly game to play, but it would save you a bit of money. I think most of it comes down to subconscious brand preferences drilled into our heads by a lot of years of advertisements. If it’s a simple tactic that allows you to “pick your battles,” then go for it.

When I was a kid, I had a friend whose mother did this exact thing. She would buy a lot of generics at the store and either refill blank containers at home (she had flour jars and past jars and so on) or actually store stuff in name brand containers even if it was generic. I think she was self-conscious for some reason about having generic brands in her house.

At our house, we don’t care. In fact, we sometimes actually point this out to our kids when we’re buying them at the store. “Look at these two boxes of cereal. Can you tell the difference other than the box art? Well, here’s the difference – this box is $2 cheaper. Now which one should we buy?” Our kids always choose the cheap one because we strive to eliminate their brand preferences.

Q7: Life-Changing Magic of Tidying Up?

Have you read The Life-Changing Magic of Tidying Up by Marie Kondo? I was reading it and thought that most of it could be an article on The Simple Dollar! The idea that really stood out to me from the book is that you should look at each item you own and ask yourself whether or not that item gives you a spark of joy in the here and now (not just the memory of a joy that you’re repeating). It’s like something you would write!
– Amy

Someone sent me a copy of that book shortly after it was published, and while I couldn’t really think of how to incorporate it too much into The Simple Dollar, the ideas in there really did strike a chord with me.

The “spark of joy” idea has a deep connection with how I decide what possessions to keep and which ones to sell off when clearing out my closet. While I follow more of a “have I used this in the last year?” philosophy when deciding, I’ve found that I sometimes bend that rule both ways based on my sense of a “spark of joy” from that item.

If you really take that book seriously, though, it can really become a strong call to minimalism. If you truly get rid of everything in your life that doesn’t bring you a “spark of joy,” I think you’ll wind up with a surprisingly small set of possessions. I know I would.

Q8: Uses for old laptops

A local university sold some old used laptops to the public recently for $100 each. They were in really good shape and I bought one but it turns out that there is nothing installed on them whatsoever. It starts and shows a Dell logo and asks for a disc. I am wondering what your recommendation is for this. I would like a machine to do nothing more than look at websites and do email. Thanks in advance!
– Ron

I would install Ubuntu on it. Ubuntu is a free and very user friendly version of Linux, which is an free and open source operating system. Using Ubuntu is actually a lot like using Windows, provided you don’t dig in too much.

To do this, you’ll need a bootable CD. If you have another computer and a blank CD, it’s pretty easy and this page will explain how in the “Easy ways to switch to Ubuntu” section.

I have an old laptop that I’ve installed Ubuntu on not that long ago. It’s great for doing things like web surfing and it’s pretty much impossible to get spyware on there. It is a little different than Windows and there isn’t nearly as much third party software available, but it’s free and it has everything you need for things like web surfing and email.

Q9: 4% withdrawal rate question

For several years now I have been planning to retire when I can live off of a 4% withdrawal rate from my investments. I figure that when Social Security kicks in later it will be enough all together to get me through the rest of my years. Lately though I have become worried about that 4% number. Do you think it is enough?
– Mark

Mark is sharing a number of ideas here all at once, so let’s spread them out a little bit.

First of all, he’s referring to a 4% withdrawal rate from his investments to live on. In other words, he’s saying that if he withdraws 4% of whatever the balance of his investment is on the day he retires, and he withdraws that same exact amount each year, he plans on living out his years on that amount. So, let’s say he retires on the day his investments add up to exactly $1,000,000. His plan would be to withdraw $40,000 a year, every year, for the rest of his life, and his investments would hold out.

That 4% rate is backed up by a very well known study called the Trinity Study, which says that if you use a 4% withdrawal rate, your investments are pretty much a mortal lock to last at least 30 years and quite likely to last longer than that.

Mark is also taking note of Social Security benefits. Let’s say, for instance, that Mark gets $10,000 a year from Social Security. In that case, he would only need to withdraw $30,000 a year at that point from his investments, which means that they would last even longer.

But is that enough? For me, it depends on how close you are to starting Social Security benefits and also whether I intend to do anything that might earn some income after “retiring.” The closer I was to Social Security age – say, 58 rather than 40 – the better I’d feel about making the leap. Similarly, the more likely I was to earn at least a little in “retirement,” the better I’d feel about making that leap.

If I were far away from Social Security (say, 40 or 45 years old) and didn’t have any good prospects for earnings post-“retirement,” I would not feel confident in “retiring” with a 4% withdrawal rate. I would want 3% at the bare minimum, and probably closer to 2%.

Q10: Everyday carry and identity theft

I’ve been rethinking all the stuff I carry in my wallet like my ID and credit cards and stuff. I recognize that if I lost it or it were stolen, I would be in a real pinch for a while. What is the best practice for choosing what to carry every day to balance identity theft risk and daily ease of use?
– Tommy

Personally, I carry just my driver’s license and one single credit card most of the time. I usually leave my bank card at home, along with almost every other card I have. I keep them all in a fairly well hidden place in my home where my risk of losing them is extremely minimal. With just those items, it’s easy to keep them in a front pocket, which means that pickpocketing, while not impossible, is pretty tough.

Regarding things like customer rewards cards, I’ll grab them if I know I’m going to use them, but most of the time I leave them at home. If there’s not much chance I’m going to that particular store, I just don’t bother with the card. Most of the time, there’s not much “reward” to them anyway.

I guess I’m just a minimalist in terms of everyday carry. Most of the time, all you’ll find in my pockets are my driver’s license, a credit card, a pen, a tiny notebook, my keys, my phone, and a pocket utility knife.

Q11: Kitchen needs in the city

I am about to move from the suburbs to urban living. My girlfriend and I are planning on renting a townhouse or apartment. The things that I do presently for recreation (gardening, hunting, fishing, hiking, etc.) are obviously going to change significantly. What amenities should I be looking for in an apartment or townhouse to keep our recreation bills down so we don’t just go out to eat or drink all the time?
– Alex

The first thing I would do if I were you is look at your food preparation situation at home. What space do you actually use for food preparation? What equipment do you use? A stovetop? Oven? Microwave? Do you have a refrigerator? A freezer? Then, look for an apartment or townhouse that has those features that you use so that you’ll feel fine prepping food there.

As for food sourcing, I’d look primarily at things like discount grocers (like Aldi) and farmers markets for your food. Again, it doesn’t sound like you go out to eat very much right now and that you source a lot of your own food through gardening, hunting, and fishing, so you’re mostly just going to replace your sources of ingredients more than anything else.

There is a large jump in price from buying food staples to going out to eat all the time. While you will be losing the advantages of food from gardens and hunting and fishing expeditions, those weren’t exactly expense-free either.

Q12: Collectibles and getting ripped off

How does a person avoid getting ripped off when it comes to collectibles? It seems to me that if you just take them to a dealer to sell them that the dealer is going to lowball you as that’s just good business practices for the dealer. The only other option I see is to invest a ton of time researching which reduces the value you might get from them.
– Darren

The best route is to hire a dealer or some other expert for appraisal of your collection. Make it clear that you are not going to sell, but are simply appraising for insurance purposes. I’d usually suggest getting multiple appraisals just to be clear.

Once you have a clear appraised value of a collection and perhaps some appraisals of individual items, then you can move on to deciding what to sell and how to sell it.

It’s worth noting that some collectibles, such as comic books and trading cards, have professional grading services that will help you accurately determine the condition of high-value items, making it easier to trade and sell them. This is good for establishing the actual value of a great item, as many people won’t buy them without a very clear indication as to the condition.

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 Ally Bank, Savings Rates, Old Laptops, Tidying Up and More! appeared first on The Simple Dollar.



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5 Economic Myths of 2015

These common statements by politicians and the media aren’t true.

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How to Be a 'Money Queen'

Financial planner Cary Carbonaro wanted to help her girlfriends make better money decisions. 

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4 Times You Should Talk to HR – and a Bunch of Times When You Shouldn’t

What the human resources department can (and can't) help you with. 

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3 Ways to Fix Your Investment Portfolio Before January

The new year will be here before you know it.

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Where to Find Opportunity When Monetary Policy Tightens

These two sectors offer opportunities for profit as interest rates slowly increase.

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Work Around Your Class Schedule: 20 Online Jobs for College Students

Working through college is a good way to offset the high costs of school. But it can be tough to find a decent-paying job you can balance with classes and extracurriculars.

Instead, look into the hundreds of ways to make money online. If you want this to be your primary, consistent source of income, however, tricks to make a quick $100 won’t suffice.

For a regular paycheck and work-at-home schedule, check out these ongoing online gigs.

1. Social Media Manager

Managing a company’s social media accounts can be a fun way to make money on a flexible schedule. It’s also a cool way to connect with businesses you love.

A social media manager serves as the voice and face of a business on a number of engagement platforms. You’ll promote deals and content, and interact with followers.

How to Get Started

You could post your resume on random job boards, but it’s better to contact local companies directly. Better yet, connect with a business you already patronize.

Focus on social platforms you love and know inside-out to boost your pay. If you’re a Twitter fiend, talk up your experience. If you spend all your free time on Pinterest, put your pinning skills to use.

Then, get creative: Outline a plan to connect with customers via Snapchat or Periscope. Smaller companies might not have thought about exploring these newer platforms, making you an integral part of the team.

2. Professional Tweeter or Instagrammer

You read that right. If you’re savvy at building a following on social media, why not put it to use for some extra cash?

Popular Twitter or Instagram accounts can partner with ad agencies, individual businesses or affiliate programs to share sponsored content.

Unless you’re a celebrity, your personal account probably won’t demand a high rate per tweet. But, you could grow a following for a theme, joke or parody account.

Use a sponsored tweet site to get paid a flat rate to send out specific tweets, or become an affiliate to recommend products to your followers and earn money per click or purchase.

Even if you don’t grow a huge following, you can try these tricks to leverage your social media accounts for extra money or free stuff.

How to Get Started

Sign up as an advertiser with your social media account(s) through these sites:

Find products and services to promote through an affiliate marketing network like ShareASale. See if companies or blogs you follow offer affiliate programs for their products, or reach out to them directly to negotiate a joint venture. I suggest only recommending products you actually know and love.

3. Online Tutor

Take your academic strengths and knowledge online to start your own tutoring business.

Offer peer tutoring for fellow college students or connect with K-12 students in home-school programs.

And it’s not just academic: Focus on your extra-curricular talents, and offer tutoring or consulting in things like music, art, social media, fashion or nutrition, too.

How to Get Started

Market your tutoring services online at sites like Wyzant or Tutor.com. Or, do all the work up front and create an online course to sell through Skillshare, Udemy or your own site.

4. Data Entry Clerk

These aren’t the best paying online jobs, but they also don’t require a ton of skills or experience. Typically, all you need is a computer and an Internet connection.

How to Get Started

Find online data entry jobs through these sites:

5. Resume Writer

Know someone about to graduate or look for a new job? Offer to help polish their resume to make it job-search-ready.

How to Get Started

Find online resume writing jobs through these sites:

But you’ll face a lot of competition and submit many unanswered applications. Instead, try reaching into your existing network for potential clients, like friends looking for summer jobs and internships.

6. Turker

Amazon’s Mechanical Turk is an online service that connects contractors with easy tasks to make some money on the side. You’ll select from a list of Human Intelligence Tasks (HITs), some of which take just a few minutes to complete.

You won’t pay rent doing these tasks, but you can work as much or as little as you want and earn around $50 a week. That should cover your groceries and maybe a beer fund for the month!

How to Get Started

To make MTurk worth your time, you want to find HITs with a high payout. Lucky for you, there’s a Reddit community to help you sort through the noise!

7. Search Engine Evaluator

Earn between $12 and $15 an hour cleaning up search engines, such as Google, Yahoo! and Bing.

Despite constant updates to their algorithms, search engines are still riddled with errors. They rely on real humans to look at search results and offer feedback on quality, accuracy and usefulness. That’s where you come in.

How to Get Started

Find search engine evaluator jobs through these sites:

8. Niche Blogger

Choose a topic that offers clear value to readers. By focusing your efforts on becoming an authority, you can make money blogging.

If you create a go-to source of information in your niche, you can earn money through relevant advertising, affiliate marketing and sponsored posts. With good planning and time management, you can write for and promote your blog in your spare time, and earn passive income all day when readers visit your site.

How to Get Started

Follow our guide to starting a blog to get up and running.

9. Freelance Writer or Editor

This is how I made my living for four years while I traveled and moved around the U.S. It can be lucrative, flexible work.

You can make your own schedule, pick your own gigs and set your own rates. The best part is you get paid to write about almost anything! Get paid to research and write about your existing hobbies and passions — beats a barista gig at the campus coffee shop, right?

You can also try freelance proofreading or copyediting. These gigs are good way to keep your foot in the door of the writing world when you don’t have the time or energy to dedicate to composition.

How to Get Started

A quick search will show you there’s no shortage of freelance writing work online. It’s hard to sift through, so here are our tips on finding the best gigs:

10. Micro-Freelancer

Could you cut into your debt, or even make a living, $5 at a time? If you get creative, you might be able to do just that with Fiverr!

Turn your weird ideas and unique skills into gigs on Fiverr. If you don’t want to wait for takers, look for a requested service, and pick up a few bucks from someone who needs help with a quick, simple task.

Copycat sites offer similar opportunities. Try Gigbucks for tasks ranging from $5 to $50, and TenBux for gigs from $5 to $10. TaskRabbit also connects you with real-life and virtual odd jobs that can bring in extra cash or even become a full-time job.

How to Get Started

Read our overview of what you could sell on Fiverr to get an idea of the hidden gems and talents you might possess! But make sure you’re valuing your time; if you’re only earning $4 an hour, it might not be your best bet.

11. Virtual Recruiter

Put your skills and connections in your industry to use by connecting employees or freelancers with the right jobs.

As a virtual recruiter, you’ll work as a liaison between a company and potential new hires. You’ll do things like post available jobs, screen resumes, conduct preliminary interviews and negotiate salaries.

How to Get Started

This is freelance work, so you can start by perusing virtual recruiter job listings on LinkedIn or these freelance sites:

12. PowerPoint Presentation Designer

Did you master PowerPoint for a project last semester? Turn that skill into a moneymaker!

When businesses or keynote speakers don’t have time to create presentations for their events, do it for them.

How to Get Started

Set up your own virtual storefront, like this professional slide designer, or list your services on freelance sites like Upwork or Freelancer.

13. Genealogist

Yes, people will pay you to put together their tricky family trees.

Are you already a hobby genealogist or studying the subject in school? You could charge between $70 and $700 per request, and take on as much or as little work as you can manage.

How to Get Started

Set up your own virtual storefront, like this professional genealogist, or list your services on freelance sites.

14. Survey Subject

This is easy and flexible work, but you’re not likely to make more than $7-8 per hour. But, if you put in an hour or two each day regularly, you could bring in an extra $50 a week to boost your grocery or entertainment budget.

How to Get Started

Here are our nine favorite survey sites.

15. Amazon Reseller

This gig could earn you some serious income if you learn the tricks of the trade.

The job: Scour the web for good deals, and purchase products at deep discounts. Then, list your products and ship them off to an Amazon Distribution Center. Through the Fulfillment by Amazon program, Amazon takes care of the storage, sales, shipping and customer support.

Reselling will require a few hours of legwork each week, but you can do it on your own time. And, if you’ve got a knack for spotting a good deal and understanding what will sell, you can earn a lot more from these hours than you would from a more demanding part-time job.

How to Get Started

Read our guide to getting the most out of Fulfillment by Amazon to get started!

16. Etsy Store Owner

If you’re crafty, try selling your handmade goods on Etsy. (Even if you’re not, you can sell simple, in-demand jewelry.)

Knit while you watch course videos, and string beads while you study. Crafting can be time-consuming, but if you’re clever, you can make money while multitasking.

How to Get Started

Check out these tips from Etsy store owner Alicia Shaffer, who makes up to $70,000 per month selling fashion accessories through her shop, Three Bird Nest.

17. Ebook Author and Publisher

Like crafting, writing an ebook can be time-consuming. But a bit of creativity can make the process efficient and lucrative.

Can you create a digital product for a business, composition or marketing course you can sell later? How about using what you learned from a research paper to create an informative ebook?

This is great for flexible income. How much money you make depends on how much time you’re willing and able to put into marketing the book once it’s available.

Or, if you don’t want to publish your own book, offer a freelance service to help businesses or bloggers publish books to sell on Amazon or their own websites.

How to Get Started

Read our guide on how to publish your own book.

If you want to write ebooks for other people, set up a website to promote your services, or list them on freelance sites.

18. Virtual Assistant

Get paid to use the organization and communication skills you’ve developed to stay on top of schoolwork, classes and extracurriculars.

VA gigs vary in pay, hours and the actual work. You might help people and businesses with data entry, social media management, website maintenance, research and customer service.

With more and more professionals diving into freelance jobs and self-employment, these positions are increasingly in demand.

How to Get Started

Find virtual assistant jobs through these sites:

19. Stock Photographer

Get a head start on a photography business while you’re still in school by selling stock photos. Microstock sites make it easy for hobby and amateur photogs to make money selling photos online.

More into videography? You can also make money licensing videos with GoPro’s stock video site.

How to Get Started

Here are some of the most popular sites that pay for stock photos.

For more options, check out stock photographer Eliza Snow’s chart of microstock sites

20. Transcriptionist

Transcribing requires little to no prior experience, and offers flexible hours and workloads.

The work sounds easy: Listen to audio and type what you hear. But it can be repetitive and requires a lot of attention to detail.

With that said, the flexible work hours fit well around an academic schedule. And the pay is a pretty good selling point: Earn around $15 to $25 for general transcription, and more if you learn to specialize in the legal or medical fields.

How to Get Started

Find transcriptionist jobs through these sites:

Your Turn: Have you worked any of these online gigs in the past? Will you pick up one to earn money this school year?

Dana Sitar is a Staff Writer at The Penny Hoarder. She also writes about writing, work, life and love for blogs and books, and sometimes things people care about, like Huffington Post and that one time she had an article published in The Onion. Follow along on Twitter @danasitar.

The post Work Around Your Class Schedule: 20 Online Jobs for College Students appeared first on The Penny Hoarder.



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End of the road for raunchy brand?

THE racy clothing brand founded by a man who allegedly wore his underpants around the office has filed for bankruptcy. So is this the end for American Apparel?

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The Best Money Moves for Fall 2015

Take these four steps to finish the year with more money in the bank.

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How My Cheese Addiction Taught Me to Automate My Savings

cheese market

Sigh… I guess that’s enough cheese. Photo: Catriona Savage

I wouldn’t consider myself an overly indulgent person. I generally eat two well­-balanced meals a day. I don’t drink very often and I walk a lot. I’m in good shape. I don’t pay for cable and I don’t wear fancy clothes. I’m a pretty simple guy.

Yet, if you put me around cheese, I will morph into a ravenous POW who has just been released from a hard labor camp. I will eat and eat and eat until you think I’m part of some kind of hidden camera show that aims to shock and awe through cheese-induced gluttony. Multiple people have commented on my cheese eating prowess.

“Dude, is that healthy?”

“Is that a hunk of cheese on your plate? Good lord, I thought it was a large piece of fish.”

“Does that affect your digestion?”

And on and on. It’s kind of embarrassing. Or, it would be, if I could pull myself out of the cheesy euphoria long enough to care what those people thought.

After a recent trip to Costco in which I tried and failed to convince my girlfriend that it was a cost saving measure to buy $90 worth of cheese in bulk, I finally had to accept that I had a problem. She pointed out that whether I bought $90 worth of nice Gouda or $10 worth of cheap cheddar, I ate it in the same amount of time.

That floored me. It was true. Having gobs of cheese around made me feel like Leo DiCaprio in Wolf of Wall St.

Cheeeeeese party! Give me a heaping portion at every meal! Put it on my cereal! Dip it in my coffee! I had infinite cheese and I would live forever!

Except I didn’t and I won’t. It was time to accept that I was consuming way too much cheese. I had to make a change.

The solution was simple: I put my girlfriend in charge of buying the cheese. If she goes to the store and comes back with none, I have to live with it. If there is a sale, she might grab a reasonable amount (say, 16 ounces, as opposed to the platter meant for corporate parties that I would be inclined to shove in my cart).

I automated my cheese consumption. The decisions are now made by an outside party and I don’t have to waste an ounce of effort thinking about it.

This experiment got me thinking. What else do I use way too much of if it’s always around?

Ding ding ding! Money.

Like I said before, it’s not like I’m a spendthrift. But, when I recently got a raise, my first thought was, “Maybe I can get a bigger apartment now.” It wasn’t, “Start building up your emergency fund, you dummy.”

Spending is easy. There is marketing all around us using sophisticated psychological tactics to get us to part with our hard­earned money. It’s difficult to fight against all the powerful marketing. Thankfully, automation can help us get over this hurdle.

Many banks offer to automate your savings. Chase, Wells Fargo, US Bank, and Bank of America all have their versions, and they are all good in their own right. But, for someone like me who likes banking from my phone and is always looking for the next best app with the newest features and slickest interface, there is Digit.

Digit is an online bank with an app that links to your checking account, studies your spending habits and analyzes your cash flow. It then uses an algorithm to take money out of your checking account at times when it will seem the least intrusive. This money is stored in a savings account to be accessed at any time.

You can even text the app commands for what to do with your money, such as, “I want to save a little more.” No more excruciating hold times waiting to talk to a frustrated call center employee who sounds like he’s on the edge of a mental breakdown. Just a simple, easy to use app.

While it’s a little odd to think about a bank snooping through my spending history (I don’t want to get angry alerts every time I break down and sneak a piece of string cheese), it’s also comforting to know that someone incredibly smart is monitoring my saving so I don’t have to.

I fully embrace the app revolution, and the fact that Digit is backed by so much smart venture capital money gives me peace of mind. I like knowing that I can spend money without worrying about saving because Digit’s got my back.

To paraphrase legendary basketball coach John Wooden (and tweak it to make it even more corny):

“If you fail to plan to automate, you’re planning to automatically fail.”

Do yourself a favor and take willpower out of the equation. It is not to be trusted. Before you know it, you’re $90 poorer and in a cheese coma. Automate, my friends.

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How to Run a Home Staging Business – Interview with Debra Gould

Tell us a little bit about yourself and your entrepreneurial journey. I am an internationally recognized home staging expert, president of the Voice of Possibility Group, and the creator of the Staging Diva Home Staging Business Training Program. An entrepreneur since 1989 and author of several guides, I have staged millions of dollars worth of real estate […]

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13 Careers You Might Not Have Considered That Pay More Than $71,000 a Year

When you think about high-paying jobs, do you think of becoming a doctor or lawyer, or hitting it big in the tech industry?

You don’t have to go to medical or law school, or move to Silicon Valley, to earn a high salary.

If you’re a student or you’re considering a career change, consider one of these professions.

1. Air Traffic Controller: $118,780

If you’re detail-oriented and love all things aviation, consider going into air traffic control. This high-responsibility career pays off with a mean annual wage of $118,780.

You’ll be responsible for guiding some of the 87,000 flights in the U.S. skies each day and following policies and procedures to ensure flight safety.

To head into this field, you must be a U.S. citizen, start the FAA Academy by your 31st birthday, and be able to pass background checks and medical exams.

You’ll also need three years of higher education as well as some work experience — but you don’t need a college degree.

2. Accountant or Auditor: $73,670

Analytical skills are key to a successful career as an accountant or auditor. In this field, you’ll prepare financial statements, interpret records, give advice and help individuals and businesses with their costs and budgets. You’ll also examine financial records and make sure people and companies pay their taxes correctly and on time.

To pursue this career, which comes with a mean annual wage of $73,670, you’ll need a bachelor’s degree.

Many accountants also pursue certification as a Certified Public Accountant. Earning a CPA has a number of career advantages, including typically earning a 10% higher salary than people without the license.

Each state has different fees associated with the exam and licensing procedure, and many people opt to take a preparation course or purchase self-study materials. In Minnesota, it can cost more than $2,900 to become licensed.

3. Healthcare Administrator: $103,680

Ensure hospitals provide quality care by going into healthcare administration. This field pays around $103,680 per year and you’ll need a bachelor’s degree, typically in healthcare administration or management.

Many administrators also go on to earn a master’s degree in a related field to boost their qualifications and become even better candidates for high-ranking positions.

4. Dental Hygienist: $71,970

If you’re detail-oriented and don’t mind peering into patients’ mouths every day, you might do well as a dental hygienist.

This career, which pays an average salary of $71,970 per year, involves cleaning and examining teeth as well as educating patients about how to take care of their pearly whites.

You’ll need an associate’s degree and a state license. Each state has different licensing rules, so be sure to check with your state for up-to-date requirements.

5. Packaging Engineer: $85,110

This specialty within the engineering field is a blend of industrial engineering, industrial design, material science, marketing and logistics. Expect to work from broad design conceptualization right on through product placement.

You’ll need at least a bachelor’s degree, but you can expect to earn $85,110 a year if you pursue a degree in this field.

6. Data Scientist: $124,150

Working with data to mine information, spot a variety of different trends and work to help businesses succeed is what data scientists do each day. For this, they earn a median wage of $124,150.

However, in supervising roles, they can earn quite a bit more. Data scientists leading a team of up to three earn $140,000 a year, while those leading 10 or more earn $232,500 per year, according to a Burtch Works 2014 salary study.

7. IT Manager: $120,950

Spend your days planning, coordinating and managing computer activities for a median salary of $120,950 per year as an IT manager.

You’ll generally need a bachelor’s degree in computer or information science and work experience, and many IT managers also have graduate degrees.

8. Business Operations Manager: $116,090

This lucrative field helps companies manage day-to-day and long-term business performance. Expect to spend your time switching between managing policies, materials and personnel.

You’ll typically need a bachelor’s degree in business or logistics, and you can earn an average yearly salary of $116,090.

9. Physician Assistant: $97,280

Work with doctors to diagnose patients, write prescriptions and help patients recover from illnesses and injuries. You’ll need a master’s degree from a physician assistant program, but you’ll earn a mean annual wage of $97,280.

10. Information Security Analyst: $91,600

Work with companies to maintain computer security, respond to security breaches and viruses, and help preserve digital privacy.

These pros earn a mean annual wage of $91,600 for their efforts keeping companies digitally safe. You’ll generally need a bachelor’s degree in a related field to get this gig.

11. Construction Manager: $94,590

Spend your days managing construction projects, coordinating and supervising personnel, sticking to a budget, and making sure you’re on track to complete projects on time.

You’ll earn a mean annual salary of $94,590 in this field. Many people earn this job by working their way up the ranks from entry-level construction positions.

12. Actuary: $110,090

If you love working with data and statistics, consider a career as an actuary. You’ll spend your days analyzing data on accidents, mortality, disability and retirement statistics, and use that information to forecast risks and liabilities.

You’ll need a bachelor’s degree and to pass a series of qualifying exams. Actuaries earn a mean annual salary of $110,090.

13. Political Scientists: $104,000

Spend your days analyzing political systems, including their origins, development and operations. You may even use your expertise to conduct public opinion surveys and analyze election results. Expect a mean annual wage of $104,000 in this field.

Many political scientists work for the federal government, research agencies, or colleges and universities. Others are consultants or work for local government offices.

Your Turn: Are you a student or career changer interested in any of these fields? Let us know in the comments!

Kristen Pope is a freelance writer and editor in Jackson Hole, Wyoming.

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Lloyds Banking shares to be offered to the public

We knew it was coming, but now the Treasury has confirmed the timing of its sale of Lloyds shares to retail investors.

With the news the government is to finally sell its stake in Lloyds Banking Group, Interactive Investor's Lee Wild talks us through the plan.

Lloyds Banking firms up retail share offer
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It's confirmed. The government will sell its remaining stake in Lloyds next spring. Of course, we kind of guessed that. Getting a sale away before Christmas would have been tight, and equity markets are hideously volatile currently. Far more sensible to leave it until next year when, hopefully, markets will be on more of an even keel, we'll have avoided a China-led recession and the UK economy is strong enough to support a first rise in interest rates, typically a good sign for the bank sector. "It is the government's intention to fully exit from its Lloyds shareholding in the coming months, and as part of this at least £2bn of shares will be sold to retail investors," the Treasury said Monday. "Members of the public will be offered a discount of 5% of the market price, with a bonus share for every 10 shares for those who hold their investment for more than a year." Much of that we already knew. The government, which owns £6.5 billion of Lloyds shares after taking its stake to less than 12% last month, had also told us that benefits from the bonus share scheme will be capped at £200 per investor, and that those people applying for investments of less than £1,000 will be prioritised. However, the amount of Lloyds shares being made available to Joe Public is only half the figure mooted in April ahead of the general election. Already boasting a huge army of shareholders following the acquisition of Halifax-owner HBOS, rubber-stamped in 2009, demand for this retail offer is expected to be high. "Whilst unlikely to capture the imagination of investors in the same way as Royal Mail, the offer still looks set to deliver a good opportunity for retail investors, in particular those who are new to the market," says Rebecca O'Keeffe, head of investment at Interactive Investor. Although the discount being offered is hardly generous, the extra shares are certainly an incentive for longer term shareholders, and the investment case for Lloyds shares has looked more convincing in recent months. In a massive research note on the banks published four weeks ago, JP Morgan suggested the shares could be worth as much as 120p, assuming a strong pickup in loan growth in the UK, on-going rise in the property prices and higher interest rates. Even in a less bullish scenario, the broker thinks they should hit 105p in time. And the lender has begun paying dividends, too, so there's also something here for incomes seekers. Lloyds currently trades on a prospective yield of over 5% and rising. Over the summer, Barclays ran the numbers and now believes Lloyds could afford to pay back as much as £25 billion to shareholders over the next three years - £14 billion by way of ordinary dividends, with the rest made up of share buybacks and special divis.

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