How to Throw a Great Summer Party for Eight for Less Than $100

May 28, 2012

You know it’s a good party when you stop for a minute to listen and the sound you hear is the buzz of the many conversations engaging your friends. That is my favorite time – my friends meeting and enjoying each other’s company.  It’s just not the same to meet at a restaurant since you are stuck in your seat only talking with those directly across from or next to you. A party is different – it is alive!  Its ebbs and flows are ever changing and so much more interesting. Continue reading “How to Throw a Great Summer Party for Eight for Less Than $100”

A Tale of Two Choices

May 25, 2012

Over the last few weeks, I have met a couple of young men who are in the early stages of their career.  Both are in their mid-20’s and both make approximately the same amount of money, yet each had very different financial issues to discuss.  The contrast with these two gentlemen is something that I am absolutely going to point out to my kids and hope that they can take a valuable life lesson from it. Continue reading “A Tale of Two Choices”

Which Credit Cards Give You the Most Bang For Your Buck?

May 24, 2012

After a recent workshop, someone asked me if I use credit cards. She seemed genuinely surprised when I said yes.  Credit cards are like fire. If you misuse them, you can get really burned. But if you use them responsibly by paying off the balance in full and on time (you can have the balance automatically deducted from your checking account so it acts like a debit card), you can earn lots of benefits. These come in the form of everything from straight cash to airline miles to some very strange and unique perks like adult band camp and weightless flight.

Personally, my favorite is cash because of the flexibility it offers. Other rewards too often tempt you to get something you don’t really need instead of saving money. The trick to maximizing your cash back is to pick the right card for each kind of purchase. While there are lots of sites that rank the “top” rewards cards, I’ve found that they usually don’t have the cards with the best offers since they’re generally limited to those that pay or share revenues to be on the site. (In that sense, they’re kind of like commissioned stockbrokers.) Here are the best credit cards I’ve found to earn cash back on each kind of purchase:

Gas and Groceries

These are two expenses that we’ve seen rising in price lately. You can at least get some of that money back with the Pentagon Federal Credit Union Visa Platinum rewards card. The card gives 5% cash back on gas purchases, 3% on groceries, and 1% on everything else. Even if you’re not a Pentagon employee, you can become a member of the credit union by signing up with one of a number of affiliated civilian organizations.

Food and Entertainment

The Citi Forward® Visa card provides 5% back (in the form of cash or reward points) on purchases from restaurants (including fast food), bookstores, music stores, video rental stores, and movie theaters. You also get additional points every billing period that you pay on time and stay within your credit limit.

Rotating categories

The Chase Freedom Visa pays 5% cash back on categories of purchases that rotate every 3 months and 1% on everything else. That means you have to keep track of the changing categories to get the most from it. For example, right now the bonus categories are grocery stores and movie theaters until the end of June.

General Purchases

For everything else, there’s the Fidelity Investment Rewards American Express card, which deposits cash equal to 2% of your purchases into a Fidelity brokerage account with no limits or annual fees. You can also get cards that deposit into a Fidelity 529 or retirement account if you prefer. (In any case, having it deposited into any of those investment accounts has the additional advantage of discouraging you from wasting it.) This is the highest general cash back offer I’ve seen so it’s probably the best card for making purchases that aren’t covered by one of the above categories.

Cash back isn’t the only reward you can get with credit cards. Here are a few others that can have a high cash value for certain types of users:

Future GM car buyers

If your next car will be from GM, you may want to consider the GM Mastercard, which offers a 5% rebate on purchases towards a new GM car. Of course, you have to actually want to buy a GM car to make this card worth it. Otherwise, it doesn’t make much sense.

Frequent hotel guests

The Starwood Preferred Guest American Express card won last year’s SmarterTravel® award for “Best Traveler Rewards Card” and is often cited by travel aficionados for a rewards program that can be worth more than 5% if redeemed for hotel rooms.

Future college students and their friends and family members

The Upromise World Mastercard can pay up to 3% on eligible online purchases and 11% on eligible grocery purchases. The catch is that you need a Upromise account since that that is where the money is deposited and you must shop from their list of eligible merchants to earn rewards. You can also have the money go to the Upromise account of a friend or family member.

I’m sure this list isn’t exhaustive. Do you know any other credit cards with rewards over 2% in cash value? (If it’s less than 2%, you might as well go with one of the Fidelity cards I started with.) If so, let us know about them in the comment section below.

Ladies: How to Look Stylish on Your Summer Vacation for Less

May 21, 2012

I think I have spent enough money on clothes to wear on vacations over the years to fund another week long vacation!  Like many people, I am budget conscious and watch the deals like a hawk trying to get the most for my money but then forget about my wardrobe! Last minute, I run to the department store to pick up some things to wear and there are no bargains to be found. Continue reading “Ladies: How to Look Stylish on Your Summer Vacation for Less”

Who’s More Frugal? Me vs. Mr. Extreme Saver

May 17, 2012

Last week, one of our guest bloggers, Mr. Extreme Saver posted a great blog post about how he is able to live in NYC on only a $1k a month of spending. That got me thinking. A lot of spending consists of “trying to keep up with the Joneses.” But what if instead of competing on how much we can spend (which is a lose-lose scenario), we were to compete on how little we spend? Here is my budget and how I stack up to Mr. Extreme Saver: Continue reading “Who’s More Frugal? Me vs. Mr. Extreme Saver”

Financial Lessons From 17 Years of Marriage

May 16, 2012

On Sunday, I sat next to a guy on the plane who was heading to Las Vegas for his honeymoon. Now why I was sitting next to him and not his wife I’ll explain in a moment, but I love meeting young couples that have decided to tie the knot and embark on what I consider one of the greatest journeys known to man. I learned that he and his spouse had actually been married for a year, but this was the first time the two of them were able to get away. The fact that the trip was planned at the last minute because of their busy schedules explains the separation in seats, so I insisted on trading seats with his wife so that the two of them would be together (which landed me in the exit row – sweet!). As I sat back in 9C, I began thinking about how this would probably be one of a thousand challenges they would face together, both financially and non-financially, as a couple. Continue reading “Financial Lessons From 17 Years of Marriage”

How to Solve What Seemed Insolvable

May 11, 2012

I recently had a meeting with a woman who is struggling financially and she was looking for a way to make things better for herself and her kids.  She has had a rough last 12 months and is trying to put the pieces back together and find a way to move her life forward.  This time last year, her husband was killed in an auto accident and that has obviously changed the course of her life.  Unfortunately, he was unemployed at the time and his only life insurance was with his prior employer and he did not transfer it to himself when his company closed their doors for business.  So, she is a relatively young widow who received no life insurance benefits and was the sole income earner for several months prior to that.  She has maintained her sense of humor and can smile and say “Worst year ever!” She knows that she will recover and rebuild, and now she’s ready to.   The only thing she didn’t know was where to start.  So, she started with a conversation… Continue reading “How to Solve What Seemed Insolvable”

Fishing, and Other (Almost) Free Activities for Kids

May 09, 2012

One of the things I enjoy most about this time of year is the chance to take my boys (and daughter, when she’s up to it) fishing at the local pond. What I love about fishing is being outside, away from the video games and television, listening to the birds chirp, the “ker-plunk” of the fishing lure when it hits the water, and the occasional “I got a fish!” when we actually manage to hook one. Truthfully, we can spend hours casting and reeling, but perhaps the best part is that, with the exception of the original purchase of the equipment, fishing costs next to nothing. Now that summer break is right around the corner, I thought it would be a good idea to prepare a list of other (almost) free activities for the kids: Continue reading “Fishing, and Other (Almost) Free Activities for Kids”

Reflections After Tax Day

April 20, 2012

We just got past April 15th, otherwise known as “Tax Day” to many Americans.  Actually, it was the 17th this year, but who’s going to let a mere 48 hours change our perception of April 15th?  In the days leading up to April 17th , it was impossible for me to go more than a few minutes without being asked a question about taxes, asking someone a question about taxes or seeing a tax piece on the news or online.  I felt like I was seeing tax information even while I was asleep. Continue reading “Reflections After Tax Day”

A Tale of Two “Potential” Vacations

April 18, 2012

Last week, Susan and I took the kids on a family vacation to Amelia Island, FL for spring break. The kids work hard in school so it’s nice to be able to take them some place fun when they get time off. While a trip like this can be emotionally and physically welcoming, without a little preparation, it can be financially draining. Here is how we made this trip a memorable experience without breaking the bank.

Continue reading “A Tale of Two “Potential” Vacations”

Learning to Become an Extreme Saver – Part 1

April 12, 2012

We’ve all heard about the many benefits of saving money.  With money in the bank, you can pay for things you need or want without going into debt.  You have an emergency fund to help tide you over in case you lose your job and you have the foundation for a nest egg that can be invested conservatively and grow over time into a substantial amount saved for retirement.  There’s no question that being a saver has several advantages.  But have you ever thought about the advantages of becoming an ‘extreme saver’? Continue reading “Learning to Become an Extreme Saver – Part 1”

Are Your Brackets AND Your Budget Busted?

March 23, 2012

Last weekend, Lehigh beat Duke in the NCAA basketball tournament.  Norfolk State beat Missouri.  Ohio University (a small school), not Ohio State (the behemoth), beat the University of Michigan.  Several serious underdogs beat overwhelming favorites.  These were all David vs. Goliath games and 3 of the little Davids won.  That made a lot of alumni at those schools very happy.  Is there any downside?  Only if you are one of the tens of millions of people in this country who, for entertainment purposes only, fill out an NCAA Tournament bracket.  These games are what basketball fans, and non-basketball fans, who fill out NCAA brackets (for those who are unfamiliar, your bracket picks winners of each game up through and including the championship game) call “bracket busters.”  For example, if you had Duke vs. Missouri in the championship game, your bracket is essentially finished before the action has started.  I had Missouri as a team in my Final Four, so my bracket is toast.  Oh well, there’s always next year…. Continue reading “Are Your Brackets AND Your Budget Busted?”

Married With Debt? How to Manage Your Money When the Honeymoon is Over

March 09, 2012

We just received the following question on our website:

“I’ve recently gotten married and both of us have entered into this marriage with our own debts. We are having a hard time, even with combined incomes, making ends meet. I would like to learn more about money management and what needs to be done to pay bills and still have enough money left for savings and cash reserves.” Continue reading “Married With Debt? How to Manage Your Money When the Honeymoon is Over”

How to Get Free Money With Just a Few Minutes of Your Time

March 08, 2012

We write a lot in this blog about relatively painless way to save money. But what about relatively painless ways to make extra money? No, I’m not talking about some get rich quick scheme, nor do I mean spending the serious time it would take to work a part-time job or start a business on the side. I’m referring to free money that we often literally throw away. Continue reading “How to Get Free Money With Just a Few Minutes of Your Time”

How Much Money Do You Really Need to Be Happy?

March 07, 2012

For some people, the grass is always greener.  I recently read an article about a banker living in New York who earns a  $350,000 annual salary, which covers private school tuition for his two children, a summer home in Connecticut, and a duplex apartment for his family in a very desirable neighborhood.  Yet he still feels it isn’t enough.  “I feel stuck,” he lamented.  “The New York that I wanted to have is still just beyond my reach.” Continue reading “How Much Money Do You Really Need to Be Happy?”

How I Recovered From More Than $30,000 in Credit Card Debt

February 23, 2012

When I was 18, I got my first credit card. What should have been an occasion to mark the beginning of wise financial habits instead began a three-year period of reckless spending and horrible choices. By the age of 21, I found myself in debt to the tune of $30,000 – in addition to nearly $10,000 of personal debt to my parents, who financed my college education. Unfortunately, like many other Americans, I wasn’t able to use credit cards and rewards wisely. Continue reading “How I Recovered From More Than $30,000 in Credit Card Debt”

5 Easy-to-Miss Tax Filing Mistakes

February 20, 2012

Whoops!  In preparing for this blog, I realized that I made one of the easy-to-miss tax filing mistakes I was going to alert you to!  I moved last year and was supposed to inform the IRS by filing form 8822.  If they sent paperwork during the year, I can’t just say, “I never got it – I moved!” That is a bit like saying, “My dog ate my homework” and will just not fly with the IRS.  I sure hope any statements were forwarded by my old post office.  Shoot. Continue reading “5 Easy-to-Miss Tax Filing Mistakes”