Interview Series – Cash Money Life

Ryan Guina shares his experiences with money bullies in this edition of the interview series. In case you missed the explanation of the series, I’m interviewing the speakers at the upcoming Financial Bloggers Conference.

As you’ll read in his answers Ryan is a former military man and now runs a site called The Military Wallet where he covers financial topics for those who serve our country and move wherever in the world Uncle Sam asks them to go.  He also runs the personal finance website Cash Money Life that covers personal finance and career topics for the rest of us civilians.

Thanks to Ryan for taking the time to share his experiences with money bullies, hopefully you get something out of the way he handled the situations.

1) Describe a time that a person or company tried to take advantage of you financially and what you did to stop them.

I don’t have much patience for bullies or people who try to take advantage of me in any form. If someone resorts to bullying, I simply leave. My time isn’t worth putting up with that in any form. And to be quite honest, I don’t want to give that kind of person or company my patronage.

Things are different when you are working though. When I worked in a grocery store during high school someone came in and tried to play the “change game” with me. I don’t know the exact name for it, but that’s when a con man buys a small item and tries to confuse you by mixing multiple transactions into one with the ultimate goal of getting back more money than he gave you.

I eventually cut him off, took all the store’s money back and told him to go to the customer service counter to get change. Of course, the change wasn’t as important to him at that point and he left the store. Here is a YouTube clip of something similar in action (use this as a line of defense only!).

 

2) Describe a time you were bullied into a financial decision (by a person or a company).  How did it end up impacting you and if you could go back in time how would you handle it differently?

I can’t say I’ve ever been bullied into making a major financial decision that I regretted, but I’ve had people try to strong arm me or bully me into making financial decisions that weren’t right for me. The example that first comes to mind (and most infuriates me) is when I was car shopping several years back. I was 25 at the time, and still in the military. I was thinking about buying a used BMW and I found two fairly comparable models in terms of year and mileage, but there was a large price difference.

I asked the salesman at the dealership with the more expensive car if they were willing to come down on the sticker price, and he acted as though he would be doing me a favor if he sold me the car for sticker price! Then he pulled all the standard tricks, the four-square model, talking trades, financing, etc. My response to his charade was to ask him for a firm price on the vehicle, and then we could work out the other details. Of course, he wouldn’t name a price.

He practically called me a liar when I quoted the sale price of the similar car (same year, similar miles, a new set of brakes, and a few thousand dollars cheaper) at the nearby BMW dealership. He stopped short of actually using the word liar, but he said I must have read the number incorrectly, there were hidden fees, they would rip me off on my trade in, or a dozen other reasons.

As I was getting up to leave he asked me to stay and he brought his manager in to talk prices with me. His manager claimed he was an Army veteran and he would treat me right. He didn’t. It was more of the same, and he too practically called me a liar when I quoted the price of the comparable vehicle. But since we were both veterans, he decided he would “hook me up with a deal” on their car and he knocked $500 off the price and handed me a sheet of paper to sign indicating it was a done deal. He tried the bullying tactic with me again and I got up and walked out. They called me multiple times over the next few days until I told them I bought the other BMW.

In the end I actually bought a Mazda, but I wasn’t going to give them that satisfaction!

I don’t respond well to strong arm tactics or high pressure sales. My time is just too short, and my self-respect too high. But I guess some people do respond to these tactics, because they continue to occur.

The only thing I would have done differently would have been to leave the dealer ship much sooner.

To tie these two questions together, I think the most important thing to remember is to be assertive with your money and your financial decisions. There will always be someone out there looking to take advantage of you in some way or another.  It’s up to you to be proactive and be on the lookout.

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TradeKing Promotion $100 Signup Bonus

This month’s TradeKing promotion earns you $100 for opening a new account with the online broker. The number of people using the online brokerage has been growing quickly over the last few years, not due just to the TradeKing promotions but also because they make it cheaper and easier for their customers to invest their money in a number of ways.

Low Trading Commissions

With $4.95 trades and $0.65 per option contract and no account minimums TradeKing is one of the best options when it comes to low cost trading commissions.  Of course the TradeKing bonus where you earn a $100 signup bonus don’t hurt either, basically they’re equivalent to 20 free stock trades.

Options Trading Education

Low cost trades have an impact on your returns but TradeKing also offers a ton of trader education videos and webinars on stocks, bonds, and options that can help you with your investment decisions.  I’ve gone through the first few options trading webinars and have been working my way through their Options PlayBook, written by their options expert, Brian Overby.

Another kind of trading education are the forums and groups, called the Trader Network, where you can interact with the experts who do the webinars, as well as other TradeKing members.
If you’re looking for ideas and strategies for your portfolio or even to understand some of the concepts the pros use to analyze and evaluate their investments you can get answers in the forums. I haven’t taken advantage of this feature myself but this promotion reminds me I need to spend some time there.

If you don’t have a TradeKing account and want to try out their training and trader’s network you can earn the $100 bonus by signing up here.

Online Stock Trading Tools

Another feature I haven’t made good use of yet are their calculators, reports, and screens.  For example, here are some of the tools I’ve been meaning to spend more time with:

• MarketGrader Research Reports
• Probability & Profit and Loss Calculators
• Stock and Option Screeners
• Technical Analysis Tools

TradeKing also provides the Maxit Tax Manager to help sort things out with your accountant or tax software come tax time.

Customer Service

Those kind of tools are something you’d expect of any online brokerage but one cool thing about TradeKing is that they’re willing to help you out with questions you have about them.  Their online broker chat option lets you ask questions when you’re stuck or trying to figure something out; I’ve also gotten fast email responses to my inquiries.

I’ve never called in so I can’t speak to their telephone hold times but SmartMoney and Kiplinger’s rated TradeKing tops for customer service in recent online broker surveys.

TradeKing Promotion

The TradeKing promotion runs through the end of the month, after you open an account with $2,500 and make your first 3 trades, you’ll earn the $100 bonus.  There’s no promotion code needed but you do have to sign up through the following promotion link to earn the bonus – Click Here for Bonus

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Saving Big Money in the Big City

Whether you are moving to the big city, embarking on a journey of a lifetime, or simply visiting for a few days, you should know that there are many ways to save money while fully enjoying the benefits of city life.  This post will explore some of the ways you can save money when visiting or living in a big city.

Find a Roommate

Obviously this only applies to those making the big move.  Finding a roommate means cutting down on your monthly costs while possibly living in a nicer place than you could on your own.  In some cities–New York comes to mind–it may be impossible to live “downtown” or even “near the town” without earning an extremely high salary or being willing to take on a roommate or two.

For those of you just visiting for a day or two, the same theory applies…travel as a group so costs can be split and group rates, where applicable, will apply.   There are also some websites devoted to helping people find apartments rather than hotels for extended trips or vacations.

Public Transportation:

Be smart, taxis are convenient but also costly.  Become familiar with local bus routes and any underground transportation that might be available to you.  If you are staying for longer periods of time, spring for a multi-ride card as opposed to paying each individual fare…you’ll save in the long run…on time and money.  Most of all–WALK.  That’s one of the biggest benefits of living in a big city.

Free entertainment

Major cities boast cultural experiences and many of them are free.  Think movies in the park, gallery openings, Sunday museums and local sporting events.  Take in the sights and sounds without the cost by researching city websites.  Most offer calendars with upcoming events, many of which are free to the public.

Passes

Many museums, theaters and venues offer memberships with reduced rates.  Also, numerous cities offer City Passes that, for a flat purchase price, include admission to multiple city attractions at drastically cheaper prices.  A City Pass is also a convenient way to experience a city because they often include a list of every location it is accepted, many of which you might not of known about or had thought of trying.

Car share programs

Car share programs are popping up across the country.  The central idea is that owning a car and paying car insurance and parking fees are astronomical for someone living in a major city (and likely not using their car all that often anyway).  The alternative…sell your car and join a car share program.  Each is run a little differently but most are either pay as you drive or pay a monthly fee.  You can go to any pick-up location, use a car and return it whenever you are finished, paying for the gas you use.  Drop-offs/pick-ups are scattered throughout the city, making travel convenient.

Part time job

A part time job does not have to be just for the money–or too help defray those big-city expenses.   Many people work because of a specific benefit it provides them.  Can’t afford a gym membership? Get a part time job at the local gym in exchange for a membership.  Need work-appropriate clothes?  Take on a part time job at your favorite clothing store, pending it offers great employee discounts.

Free Wi-fi

Coffee shops, libraries, ball-parks, pretty much everywhere offers free WiFi.  Take advantage of it when you are out and about.  You might find that between internet access at work and around the city, you may be able to forgo that costly monthly internet bill.

Conclusion

So, whether you are touring a big city or making a life changing move, experiencing all that your city has to offer does not mean you have to break the bank.  Take advantage of the programs sponsored by the city for the public.  Become a smart traveler.  Or work for benefits other than money.  In the end, you will be left with wonderful experiences and hopefully a little money in your wallet.

Other than my years in college, I’ve mostly been a boring suburbanite myself, so feel free to add some comments about ways to save money in the city, that I may have inadvertently left out or failed to address.

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Interview Series – Go To Retirement

If you’ve ever been to a conference before, you know it’s kind of neat to get a chance to talk to the speakers afterwards and pick their brain.  Usually the people who speak at conference are not only knowledgable but more importantly enjoy talking about their area of expertise and sharing their stories and insights.

This week I’m starting with Mark Patterson of Go To Retirement to kick off a series of short interviews with speakers at the upcoming Financial Blogger Conference.  His site focuses on the issues people face as they go through retirement planning and try to figure out what that phase of life will be like and how to prepare for it.  Mark also shares his personal approach for planning for retirement income over at Fail Safe Retirement.

I didn’t ask the speakers questions relating to their presentations because you may not care about things like the “Intellectual Property Aspects of Blogging” or the many other conference topics that will be covered.  Instead I asked all the speakers the same two questions.  I think they’re general enough that we should get a wide range of answers, hopefully some that are helpful examples to you.  Here they are:

1) Describe a time that a person or company tried to take advantage of you financially and what you did to stop them.

15 years ago we applied for a combined construction/permanent loan to finance the construction of the house we now live in.  We already owned the lot but were paying interest on the lot loan. 

After 6 weeks of “we are working on it” responses to my request for approval of the loan, I escalated my concerns up the chain of command.  I was finally told by a bank official that “we don’t make construction/mortgage loans in situations where the lot is already owned by the applicant.”  This apparently was a bank policy. 

It made no sense to me but either way I was furious about not being told that by the loan originator when we applied weeks earlier. We immediately applied for a loan at another bank and were approved in 48 hours. Meanwhile, I demanded that the first bank pay us the $800+ in loan interest it cost for us to wait around for 6 weeks while they said nothing.

When they refused, I sued the bank under a variety of legal theories. Soon thereafter, they paid us our lost interest plus court costs.

2) Describe a time you were bullied into a financial decision (by a person or a company).  How did it end up impacting you and if you could go back in time how would you handle it differently?

It is very hard to bully me about money but 6 years ago we installed new HVAC systems in our home. We were offered a 10 year warranty on the equipment.

When the installation was complete and the final bill presented, I discovered that the so-called ‘warranty” was actually an extra-charge maintenance agreement that required annual maintenance (at additional cost) of the equipment. I should have raised an objection then and there but rolled over and paid it.

If I had to do it over again, I would have insisted on an actual warranty as it was explained to me, not a maintenance agreement. Now, I am super-skeptical about any promises of long-term warranties and cross-examine the salesman to be sure it is not a maintenance agreement in disguise.

Thanks to Mark for sharing his experiences!  It’s not always easy to look back on something you regret and talk about it …. but I’m glad Mark did.  Now if you ever run into a similar situation you’ll know to ask more questions.

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Best Cloud Data Storage For Your Money

The best cloud services for your data was the topic of a recent research article by Gizmodo best way to store stuff in the cloud.

They provided a great summary chart of the various cloud storage services they reviewed and how much data you can store in each.  The thing I was looking for was a way to easily search them by price instead of by available storage. So I enhanced the charts I used in my credit card bonus comparison post and put the cloud services into another table where you can filter the services based on a combination of cost and space available.  Here’s an example of how you can use the filter.

In the filter example image above, I set the Cost slider from $0-40 and the space slider from 20–30GB to find the services that offer at 20–30GB of space for under $40 a year.

Checkout the cloud storage comparison table below, play with the cost and storage filters to find the right mix for you. It only shows 10 services at once, you can use the arrow below the table to scroll back and forth if your current filter settings return more than 10 cloud data providers. You can also click the column headers to sort the options. The default view is showing all the free cloud storage options first.

Cloud Space vs Storage Price
You know what they say about how long it takes to complete a task, the time necessary will expand to fill the amount of time available.  Well, I think something similar applies to how much storage space you need to save your data. The less you have, the more carefully you manage it, the more you have, the more casual you are about filling it up.

It is nice to not have to worry about running out of space, but I also like to keep the cost in mind when choosing a service. I know when comparing prices and space my first instinct is to sign up for a plan with more space than I think I’ll need.  That way I won’t run into a space limitation at an inconvient time and have to hassle with upgrading or changing services.

On the other hand, I hate paying for something that I’m not using.  Granted strage space isn’t that expensive but recurring expenses have a way of creeping up on you over time and adding up to more than you’d planned to spend. Of course it depends on what you’re using the space for – whether it’s your only copy of the files or its serving as a backup.

Obviously, you don’t want to cheap out and not have enough space for what you’re storing – particulary if it’s something really important or is your only copy. So if you’re short on space and end up not storing everything you could cost yourself a lot more than you save on the cheaper plan. The time and cost of recovering your files can be pretty high.

Best Cloud Data Storage

That’s one thing I liked about the Gizmodo article, they picked out their favorite cloud storage servcies based on how you’re using the cloud. The budget winner was Google Docs (if you’re looking for the most space for your money), the free winner was Microsoft SkyDrive (25GB at no charge), and for ease of use they liked Dropbox. Their favorite overall was SugarSync – 5 GB free, good features, and reasonable prices.

Hopefully the chart above will let you filter down the services to the price and amount of storage space you’re looking for.  If nothing else, I’d recommend signing up for one of the free services and giving it a try.  The main thing I hope you take away from this post is that you have lots of options and the pricing on most of them is quite reasonable.  It’s much better to spend a little time now and backup your data in the cloud than to lose it to a corrupt hard drive or a broken mobile device a few months down the road.

Cloud Upgrades & Free Trials

Something else to keep in mind is that many of the services that do provide free online storage make it easy for you to upgrade to a paid account if you find yourself needing more disk space than the free version offers.  This is nice because it lets you stay with the same service, you don’t have to spend time opening a new account and re-uploading your data.

If you’re using a free service then this doesn’t apply, if you want to try out one of the paid cloud storage companies, most of them offer a free trial or discounted first month.

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10 Ways to Get Ahead at Work

Many of us are looking for ways to get ahead at work. Whether it’s looking for a promotion, or whether you are looking to get a new job, or whether you just want better job satisfaction, there are things you can do to enhance your marketability. If you want to advance further in your career — and in your life — here are 10 ways to get ahead at work:

1. Know What You’re Good At and Play to Your Strengths
One of the best things you can do for your career is to understand your strengths and play to them. Know what you’re good at, and find ways to integrate your skills into your work. When you can use your skills, you will be happier in work, and you will be more likely to excel in your job.  Definitely consider this when you’re looking a new job, look for one that best matches your skill set.  Here are some interview tips that can help you highlight this in an interview.

2. Improve Your Skills
Constant improvement can help you perform your job better, and get you more noticed at work. It can also result in a pay raise, or in the ability to change careers.

3. Develop New Skills
Find out what skills are desirable in a certain job or career field that you want, and make an effort to acquire those skills. You can go through a certification program, or work on a degree. Know what your employer, or what a potential employer, is looking for, and then do what you can to achieve the requisite skills.

4. Know Your Worth
You should understand your worth. Find out what, generally, those doing similar work are paid, and what is reasonable to expect for someone with your skill set and experience level. There are a number of sites, including Payscale.com and Salary.com, that can help you figure out what is average for your location. Know what you’re worth, and don’t be afraid to ask for it.  One good way to help demonstrate your value is to build a work portfolio.  If you didn’t know this already, chances are your company thinks you’re overpaid.

5. Consider the Worth of Benefits
Another thing you can do to get ahead at work is to consider how much your benefits are worth. In some cases, these can be more beneficial than a small raise in pay. Plus, if you are willing to be flexible about pay so that you can see an improvement in benefits, you can present yourself as a team player, and as someone who thinks outside the box.

6. Tend Your Network
Who you know can be as important as what you know when it comes to your career. Make sure to keep your network current, and include contacts in your own company. You never know when a contact in another department can provide you with the inside track on transferring, or when you can get an in at a new company because of who you know.  It never hurts to earn points by helping to refer a friend for a job either. Put effort into maintaining a network, and you could have access to more opportunities. 

This comes in handy, not just when you’re looking to change or upgrade jobs.  One of the best ways to prepare for a layoff is to build your network.  If a pink slip shows up, one of first things to do is hit the phone and ask former co-workers if they know of any job openings.

7. Practice the Golden Rule
We’ve all been told to treat others as we would like to be treated. Remembering the Golden Rule can help you get ahead at work as well. Help others when you can, and be willing to mentor others. Also, be willing to provide good advice, and help others as part of their networks. When you can build mutual respect, you will have more success in your job efforts. 

8. Find Useful Things to Do During Downtime
If you have downtime, find something useful to do at work. Whether it’s working on an idea to help improve efficiency, getting ahead on some other work, or cleaning up your workspace or doing some extra preparation for a meeting, your commitment to being useful and industrious will be noticed — and that can help you get ahead at work. Surfing the net at work is probably not the sort of “useful” thing that will get you noticed in a good way.

9. Behave Professionally
This means that you don’t gossip about your co-workers, or badmouth your old boss in a job interview. Professionalism in your manner, as well as in how you dress and the speed and competency of your work, can go a long way toward helping you get ahead in your career. Do your best to carry out your duties in a professional manner, and you will gain a reputation for being someone others want to work with. This also applies when you’re leaving a job.  Avoid burning any bridges and be sure to give your two weeks notice.

10. Pay Attention to Your Online Profile
Be aware of what you are posting online, and how it might affect your career. Your employers and coworkers may see what you are doing online, and it could hurt you at work. If you want to stay ahead, be careful about what you post on social media — especially if it is about work. It can also pay to be strategic about building your personal brand online so future employers like what they see when they Google your name.

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10 Money Mistakes To Avoid

Sometimes it’s hard to keep track of all the things we’re “supposed” to do with our money.  If you’re feeling overwhelmed, it can help to start by focusing on a smaller list of things that you shouldn’t do. The following money mistakes can cost you dearly whether they impact you immediately today or slowly over time. Avoid them and you’ll be better off.

1. Spending More Than You Earn
The root of most financial problems is the inability to control spending. No matter your income level, if you spend more than you earn you will be broke and in debt. Whether you have $10,000 in income or $1,000,000 in income, you must spend less than you earn.

2. Not Doing an Annual Review of Your Finances
It’s “okay” to make a money mistake for a little while if you are unaware of it. Real problems start if that mistake sustains itself for years on end. Sitting down at a specific time every year to review your finances can ward off these problems.

You might notice an extra fee on your cable bill due to a data entry error. Or you can make it a habit to comparison shop your car insurance and home internet costs in order to negotiate for the best rate. They say ignorance is bliss, but it can cost you dearly.

3. Over Paying for Convenience
It’s easy to justify spending money when it is convenient. You don’t plan out your meals and find nothing in the fridge to eat, so you go out to a restaurant and spend enough money to feed you off of groceries for a week. You need your coffee in the morning, but instead of getting up a little bit early to make it for pennies per cup you spend $5 at Starbucks. Paying for convenience is fine, but do it all the time and in excess and you will always wonder why you never got ahead financially.

4. Avoiding Tough Decisions
Sometimes life is tough. Sometimes your income goes down or disappears. Sometimes your bills go up dramatically. During those times you have a choice: you can try to finance the gap between what you make and what you spend, or you can start cutting items from the budget.

Having an argument with your spouse and whether to cut cable or not isn’t fun, so you avoid the conversation even though you could really use $100 per month to buy groceries. At the end of the day if you have the necessities of life: food, water, shelter, clothing on your back, your health, and a way to generate income to live, you’ll be okay.

5. Not Protecting Your Credit Score
A bad credit score can cost you thousands of dollars in interest. People with bad scores are seen as credit risks, there’s no doubt your credit score impacts your interest rates. It might cost you $1,000 on a car loan or $40,000 on a home mortgage to have a bad credit score. That’s a mistake when you can improve your credit score by making your payments on time and lowering your overall debt utilization.

6. Spending Impulsively
A big mistake many people make is buying impulsively. They see something they want (or think they want, thanks to clever commericals), and it is right in front of them so they buy it. A few weeks later they discover they don’t really use what they thought was so important, and have wasted money.

Before making a big purchase, sleep on it. Your emotional craving for the item should die down after a while and you may come to your senses with the realization you didn’t really need it in the first place.

7. Avoiding Preventative Maintenance
Doesn’t it make sense to spend a few dollars now in order to save hundreds of dollars later? Avoiding maintenance is one of the easiest mistakes to make because it doesn’t usually immediately impact you. You avoid some car maintenance and it saves you $300 now, but the engine blows up a year from now costing you $3,000 for it to be rebuilt.

Or maybe you live an unhealthy lifestyle and don’t exercise. It doesn’t cost you much today to sit on the couch, but when you have a heart attack or stroke earlier than you should the cost will be real. Spend the time and money necessary for preventative maintenance and avoid the major costs on the back end.

8. Thinking Everything is an Emergency
It is wise to have an emergency fund handy for when things go wrong. Having 6 to 12 months of living costs set aside really protects you from unemployment or big disasters. But even if you’ve been smart enough to build an emergency fund, you can start to think everything is an emergency. That’s a mistake that can whittle your emergency fund down below what you really need, and when the actual emergency comes along you aren’t financially prepared.

9. Letting Compound Interest Work Against You
Compound interest is a beautiful thing if you are the one with the money being lent out. If you deposit funds into a savings account, you are letting the bank borrow from you to lend to others. They pay you interest for this privilege. On the flip side if you are carrying a balance on a credit card or taking out payday loans, compound interest works against you.

10. Paying Your Bills Blind
A simple mistake to make is to simply pay your bills without looking at them in detail. Every bill you receive has a summary of the charges and then a breakdown showing what you were charged. It is easy for companies to have data entry “mistakes” that throw an extra charge in on your account. If you don’t review the bill it can easily slip past you. While setting up online billpay and automatic payments is a good thing because it helps you avoid late fees, be sure to check the actual statement to make sure you were charged the right amount.

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What Keeps You Up At Night?

Falling asleep has never been a problem for me but a few weeks ago I went to bed worrying and was up all night tossing and turning. The next day I started thinking about all the things we spend money on to help us sleep at night.  Not mattresses and sleep aids but the big things that can really keep your mind racing all night long.

These mental burdens go beyond any money problems – they’re a constant worry about the health, safety, and happiness of you or your family.

Although money can’t buy health, safety, or happiness – we can use it to help us protect those precious things.  When it comes to watching out for your personal well being or the ones you love there are countless ways you can spend money to help yourself sleep better at night.

For example, paying for a gym membership can help keep you healthy and live a longer life.  Paying for health insurance gives you the comfort of knowing your family can get treatment if they’re sick or hurt.  Writing a check for career training could lead to a higher salary or more secure job you can use to provide for yourself or your family.

Spending money on these things makes us feel safer, more prepared for the unknown, and more secure about the future.  The price tag for all of these things can certainly add up, part of the trick of affording them is to anticipate the costs.

This is one of the reasons that I’ve been asking those of you who are newsletter subscribers to share what keeps you up at night. I’ve been blown away, not just by the number of responses but also by how open and honest you’ve been with your answers.  I try and be pretty candid about our money and based on the comments I’ve seen so far, I’m glad that you feel comfortable doing the same.

Thanks for trusting me with your worries.

If you haven’t had a chance to share what keeps you up at night, now’s your chance:

http://MoneySmartLife.com/go/WhatKeepsYouUp

I’ve spent many hours going through your responses and I’ve noticed something that I’ll tell you about next week.

Let’s see if you’re facing the same demons as everyone else, leave your thoughts:

http://MoneySmartLife.com/go/WhatKeepsYouUp

 

Thanks!

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10 Ways to Get Out of Debt

If you want to get out of debt–particularly a lot of debt–then you have to really want it.  I’m talking about flashing Rocky Balboa levels of intensity.  You have to make debt busting your second job.  Like losing weight, you’ll quickly learn that it’s hundreds of times harder to get out of debt than it was to get into debt in the first place.  Whether you sneak up on debt little by little or go all in, it’s going to hurt.  There will be sacrifices, and I’m not just talking about that morning latte.  If you’re reading this post, then you must be serious about getting out of debt.  If so, then get ready for ten serious ways to get out of debt.

Without further ado, here are my top ten ways to get out of debt.

1. Start a Business – Why do you think I spend all of my free time on writing about personal finance?  Sure, I enjoy my writing business, love my clients, and often times find my work to be in many ways a privilege.   But all that said, I am working a second job for a reason: to pay off my oppressive student loan debt.  Now you don’t have to start a freelance writing and copy business like me; in fact–there’s enough competition already– so please don’t!  But I’m sure there is a specific talent and/or interest you have that can be easily monetized.

As a teenager, most of us made a few extra bucks cutting grass for neighbors or babysitting.  At a bare minimum, that is the type of “business” that you should be able to start with little trouble.  When starting a business to pay off debt, you may want to put more of an emphasis on low-overhead/low-risk businesses.  The last thing you need when you’re trying to make extra money to pay down debt is to end up saddled with even more debt should your business be unsuccessful.

For some people perfect “side business” is doing something online, like running a blog.  Although online businesses take time to start generating cash, they are an easy “first business” that require relatively low initial expenses.

2. Work Part-Time – Although a part-time job may not be as sexy, creative, or as good for your soul as starting a side-business, it’s still another way to generate additional income that can be used to pay down your debt.  Remember that the faster you pay off your debt, the less interest you will end up paying overall.  Paying off my debt is almost as difficult as dropping a ring in Mount Doom, so I’ve at times worked part-time, full-time, and run a business simultaneously.

3. Getting a Raise/Working More Hours – Of course, all this talk of additional income sources is nice, but let’s not forget about what is likely our major income source: our full-time jobs.  Now proceed with caution when asking for a raise, particularly during tough economic times – you don’t want to make an enemy of your boss during layoffs.  However, with the right amount of research, planning, and preparation you can make a good case for a raise or promotion.

If you currently have some trepidation about asking for a raise, then perhaps you can figure out a way to work more overtime.  Now if you’re a salaried employee like me–and therefore not legally entitled to overtime–then this won’t help.  But there have been years where I’ve seen my dad generate 50%-75% more income than his base pay merely from overtime (he gets time and a half for overtime).  It won’t be fun working all those additional hours, but being in debt isn’t exactly a day in Disneyland either.

4. Avoid Debt – I know, I know.  What a cheater!  I’m writing a top ten list about ways to get out of debt and now I’m taking the easy (or as I like to call it, the “Ashton Kutcher”) way out and saying something as stupid as “avoid debt in the first place.”  But here’s the thing, even assuming you’re already in debt, it remains key to avoid additional debt.  If you’re working day and night at your freelance graphic design business to pay off your student loan debt, but then you’re also simultaneously generating credit card debt, then that’s the very definition of being counterproductive.

5. Sell Stuff – If you want to go with one of the laziest ways to make extra money, then simply sell some of your stuff.  Who hasn’t sold some old textbooks or made a few extra bucks with a yardsale?  Ok, probably most rich people, but they likely don’t have a ton of consumer debt, either.  If you want to join them in the trust fund arena, then you can’t be too proud.  So go out and sell that old stuff— it might be tough if you’re bit of a hoarder, but it’s worth it to pay off debt.

6. Cut Out Major Unnecessary Expenditures – Sorry, you probably shouldn’t be going on a fancy vacation when you have six figure student loan debt.  (hypocrite alert: my wife and I totally just did that ourselves).  Upgrading your car that works fine but no longer looks cool, buying a big screen television, or redoing your kitchen are also probably not options right now.

I never said being in debt is fun.  I’d rather have someone wake me up each night with a solid punch to the stomach than have the six figure chain around me that is my student loan debt.  But unfortunately, I’ve yet to find a way to trade my debt for midnight sucker punches.  So instead I have to deal with an outdated kitchen and feel like a huge hypocrite for going on one vacation in the past three years.  As will you, although hopefully not that second part.  It shouldn’t be hard to have more willpower than I do.

7. Cut Out Minor Unnecessary Expenditures – In personal finance circles, it’s often referred to as the “Latte Factor.”

We all like to believe that if we simply give up our morning coffee, then all of our personal finance problems will instantly be resolved.  That’s not the truth (unless your debt is so minimal that I have to question why you’ve made it this far in the article in the first place); but it won’t hurt either.  I’ve traded in Cable for Netflix (may have to soon trade back), I’ve given up fancy cell phones and gummy bears at the movie theater (matinee, too, by the way…and definitely no 3-D glasses).

I’m still as in debt as ever, but again, it can’t hurt even if it doesn’t help as much as we perhaps like to believe.

8. Become a Budget Monster – Most people from my generation will remember the seminal pioneer/avatar death of your friends game Oregon Trail.  A big part of that game, besides diphtheria and floating oxen across rivers, was the allocation of resources.  Any board game nerd will know that resource allocation is also the basic theme of games such as Monopoly and Settlers of Cataan. Budgeting (i.e. the allocation of resources) is a key part of paying off your debt.  You need to make sure you have as much money left over as possible to pay down your debt.  You accomplish this through budgeting.

9. Research the Tools Available to You – Consolidation, loan forgiveness, bankruptcy (hopefully not, but hey it’s sometimes the only option), credit agencies, and on and on.  There are a lot of tools out there to help you should your debt get out of control.  Just make sure you do your research and don’t get scammed. Being in debt can make you feel desperate and there are plenty of con-artists out there looking to take advantage of you.

10. Fight Back – There are plenty of companies you have relationships right now that find ways every month to get you to pay more money than you need to for the products or services they provide. It’ll take some time to research your options and to work the phone but there are ways you can cut hundreds of dollars of expenses by fighting back against companies that overcharge and under-deliver.

Conclusion

What have I left out?  How else can you get out of debt?

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Top 10 Ways to Beat Your Bills Big Time

Don’t let your bills get the best of you. You can save money, get a better deal, and still enjoy many of the things you enjoy in your daily life. Here are 10 tips on how to overcome your monthly bills.

10 Ways to Save on Monthly Costs

1. Don’t Have Bills
The easiest way to beat you bills? Don’t have them. If you have extra cash left over each month then you have more freedom to splurge on monthly bills. But if you are drowning in debt you need to cut back to the basics: a roof over your head, food for your family, clothing on your backs, and transportation to continue to earn income. That may mean selling your financed car and buying a beater to drive while you get out of debt. It may mean living without cable for a while. These sacrifices can accelerate your journey out of debt and into your financial future.

2. Cut Back on Services
If you can’t force yourself to completely eliminate a bill, you can try cutting back. Maybe you need the internet to be able to earn income at home as a freelance writer. Instead of getting the maximum speed plan, cut back to a slower speed. You’ll be able to keep the functionality of the service while saving money on a monthly basis.

3. Avoid Fees: Set Up Auto Pay
Companies want to keep you as a customer, but they also want to get paid. Late fees are essentially a short term extension of credit so you have time to get the funds together to pay a bill. But if you calculate the annual interest rate you are paying with a $15 late fee on a $100 monthly cable bill, it is astronomically high. Setting up auto pay can help you track those bills that come in at various times at the month. With auto payment your bills are guaranteed to be paid on time. This should cut out all the fees that are hitting you from service providers.

4. Don’t Let Auto Pay Fool You
While setting up automatic payments for your bills can help you avoid late fees, it can also be an easy mental trap to fall into. You might not notice an extra maintenance charge that the service provider slips into your monthly bill because you aren’t paying as much attention to your bills. It is a lot easier to “set it and forget it” with your bills, which can end up costing you over time.

5. Negotiate a Better Deal
If you’ve been coasting along on automatic payments for a while, your bill has inevitably edged higher ever so much. Call the company and ask for a discount. It really can be that simple. If the customer service representative gives you push back, ask to be transferred to customer retention or to the cancellation department. These departments have the tools to get you a “new customer deal” in order to keep you as a customer. You could cut your bill by 25 to 50% just by asking. If they call your bluff, cancel! You can always get cable from someone else or come back in a month or two.

6. Pay in Full, Not in Installments
American society is built on installment payments. Everything can be made in “14 easy payments” or costs “only $9.99 per month!” While it is certainly easier to only have to pay a certain amount per month for an item, it is never the better financial choice. When you pay in monthly installments one of two things happen: you either pay interest to the firm, or you lose all negotiating leverage and end up paying full price. Worse yet, you might pay interest and pay full price. The alternative is to walk in to a store knowing you can buy the item for cash that instant. The company won’t have to worry about collecting your payments, and you won’t risk defaulting on the balance. You can usually negotiate a better deal by paying in full up front.

7. Become a New Customer
It’s ironic: to attract new customers, service providers give the best discounts to someone that isn’t a customer. Their loyal customers of 5 years pay full price and don’t get any discounts. If you try to negotiate in step 5 and it doesn’t work, simply cancel your service and become some other company’s new customer. There are more than enough businesses out there waiting for your call. They’ll cut you a deal to get your business just like your service provider did originally.

8. Get Rewarded for Payment
Do you write paper checks and mail them in for payment? Are you able to control your spending on credit and pay off your balance every month? If so, ditch the checks, save the cost of stamps and envelopes, and start earning credit card rewards for your monthly bills. You could earn points to be redeemed for gift cards, miles for your next plane ticket on a vacation, or my favorite, straight up cash back that can be used or saved wherever you like.

9. Research Before Buying
The best time to save money on a monthly bill is before you agree to a contract. Really dig in and do your research before signing on the dotted line. Do research online about the quality of the service, if other users feel they have been scammed, or if the company really is legitimate. A lot of headaches can be avoided by not buying from a company. The headaches start after they have your cash.

10. Read the Fine Print
Likewise, if you are ready to buy, do yourself a favor and read the fine print one last time. Keep the mentality of “What’s the catch?” Is there an early termination fee? Are you signing a long term contract? Is your price guaranteed for a short period of time before jumping up? All of these details will be included in your customer service agreement or contract. Read it!

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