As I travel, I often find myself bored out of my mind. I know that many of my colleagues go our for a drink ($$) or a movie ($$$). Here is something that can help entertain you and your family while traveling, take in a movie. Wait a second! I thought going to the movies was expensive? It is, but not my way.
I have my Android table with me on this trip. I also have a HDMI cable. I noticed that all the hotels that I stay in have a TV with an HDMI port so…I use it. On Google Play, I simple select a movie that I want. Usually for far less than a single movie ticket. I start the download and then take care of a few things. Once I’m ready, I sit down or lay back in bed and watch the movie. Best of all, I do not have to deal with teenagers and their cell phones or have to drive back to the hotel. So, for a family of 4 the cost of tickets alone is around $23.00. Seeing a movie my way, $1.99 – $3.99. Makes good financial sense to me and you still get to see a movie that you want to see.
Friday, August 31, 2012
Tuesday, August 28, 2012
Rent cars for Less
As a business owner, I need to be on the constant alert for potential money saving opportunities. This is especially true while traveling. My travels times are usually set so it is difficult to use a bidding site for my flights. Recently, I decided to start using Priceline for my rental cars.
Priceline only uses the 5 major car vendors for their bidding process. Alamo, Avis, Budget, Hertz, and Enterprise. For the airports that I frequent, these vendors are generally on the airport property which makes them convenient. You get unlimited miles and road side assistance.
To get your starting bid, go to Hotwire.com and see what the going price is. If you have at least a week to bid (You have to wait 24 hours to rebid on the same type of car) start your bid at 30% below Hotwire. If not, start at 20% below hotwire.
Unless you have a very specific need, there is little different between Mid-Size/Compact and Compact/Economy. Each is usually a dollar a day apart. I start with the Compact. If that bid is refused, I will look more carefully at my travel needs and bid either on the Economy or the Mid-Size. If not, I wait until the next day and bid a dollar higher.
These bids do not include insurance. Check with you insurance provider to make sure your are properly covered. Most insurance programs will not cover the extra panic insurance that they try to sell you. Check with your insurance company to see what they cover. Don’t worry, the car rental places have extra fees they will charge you that insurance will not cover. Hence, the panic insurance they sell you. I rent so often that if I were to pay “Loss-of-use” insurance on every rental, I would be out of business. For the casual traveler, this may be something to consider.
Priceline only uses the 5 major car vendors for their bidding process. Alamo, Avis, Budget, Hertz, and Enterprise. For the airports that I frequent, these vendors are generally on the airport property which makes them convenient. You get unlimited miles and road side assistance.
To get your starting bid, go to Hotwire.com and see what the going price is. If you have at least a week to bid (You have to wait 24 hours to rebid on the same type of car) start your bid at 30% below Hotwire. If not, start at 20% below hotwire.
Unless you have a very specific need, there is little different between Mid-Size/Compact and Compact/Economy. Each is usually a dollar a day apart. I start with the Compact. If that bid is refused, I will look more carefully at my travel needs and bid either on the Economy or the Mid-Size. If not, I wait until the next day and bid a dollar higher.
These bids do not include insurance. Check with you insurance provider to make sure your are properly covered. Most insurance programs will not cover the extra panic insurance that they try to sell you. Check with your insurance company to see what they cover. Don’t worry, the car rental places have extra fees they will charge you that insurance will not cover. Hence, the panic insurance they sell you. I rent so often that if I were to pay “Loss-of-use” insurance on every rental, I would be out of business. For the casual traveler, this may be something to consider.
Sunday, August 26, 2012
Teach your kids how to use a credit card
One of the worst mistakes that you can do is to accidently convince your kids that a credit card is free money. Here is what you can do to teach them the dangers of using a credit card.
Give them an allowance. Make sure they earn it of course. Then when they want something that they do not have the money for, explain to them how a credit card works and give them a credit card issued by the Bank of Mom and Dad. Have a 15% annual interest rate and a $10 monthly fee for not paying off the card. Set a reasonable credit limit. Each month, hand them a bill with a 30 day grace period.
Now, when they are late or cannot pay the bill off in full, charge them the penalties. They will see that the more they charge, the less money they have. The less money they have, the less they can buy or the further in debt they go. When they hit their credit limit, cut them off. Now they cannot afford anything and must focus on paying off their debt. Harsh lesson for a teen on a Friday night.
This will take will power from the parent. Keep that credit limit to around $100. If you are working with teen agers, make it a bit higher if you think it is appropriate. Once they go a year without missing a payment, offer them 12% APR. If they go a year paying off their card in full each month, Give them a one time bonus in their allowance to help encourage them to spend their money wisely. The idea with the bonus is, do they spend it on garbage or think about how to invest it.
Saturday, August 25, 2012
Do You Really Need It?
Here is a good question. “Do you really need it?”
In our society, we are brainwashed into confusing needs and wants. Let me clarify these two items.
Need:
Focus first on the real needs. I would love a Lexus SUV. but I think I’ll settle for a more reasonably priced vehicle. I would love to have a large home on the west coast, but I think we will settle for something inland and a bit smaller. Your debt is a result of you deciding to give your hard earned money to somebody who absolutely does not care about you, as long as you come back and give them more money.
Need new clothes? What is wrong with last years fashions? Seriously? How many people actually hang around social circles where they look at the labels on your clothes? For those of you who do, are they really your friends? Here is an idea, buy off the clearance rack. I have a full bag of clothes for the fall that I have never worn. I purchased them at 80% off at the end of winter. I’ll start wearing them this November when it gets cold. Try it, your friends will never know.
Once again, when you are about to purchase something ask yourself “Do I really need it?”
In our society, we are brainwashed into confusing needs and wants. Let me clarify these two items.
Need:
- Shelter
- food
- clothing
- Reasonable transportation to work.
- 5,000 sq foot home for the two of you in Beverly Hills.
- Lobster 2 nights a week.
- The latest fashions from Paris
- $50,000 SUV that can transport 7 comfortably, and you only have 2 kids.
Focus first on the real needs. I would love a Lexus SUV. but I think I’ll settle for a more reasonably priced vehicle. I would love to have a large home on the west coast, but I think we will settle for something inland and a bit smaller. Your debt is a result of you deciding to give your hard earned money to somebody who absolutely does not care about you, as long as you come back and give them more money.
Need new clothes? What is wrong with last years fashions? Seriously? How many people actually hang around social circles where they look at the labels on your clothes? For those of you who do, are they really your friends? Here is an idea, buy off the clearance rack. I have a full bag of clothes for the fall that I have never worn. I purchased them at 80% off at the end of winter. I’ll start wearing them this November when it gets cold. Try it, your friends will never know.
Once again, when you are about to purchase something ask yourself “Do I really need it?”
Saturday, August 11, 2012
Start Investing
At what age should you start investing? If you are asking this, you are already behind. As a 20 something, I did not get serious about investing. Once I hit 30, I had no idea what to do. A good financial advisor would do you wonders. The earlier you start, the better your retirement will be.
Let’s say you invested in a mutual fund that gives to a 5% return annually. Your initial investment is $2,000 and you are ago 20 with retirement at age 65.
| Start Age | One time investment | Percentage rate | Total at age 65 |
| 20 | $2,000 | 5% | $18868 |
| 30 | $2,000 | 5% | $11583 |
| 40 | $2,000 | 5% | $7111 |
Can you see how delaying your retirement can cost you big time? The 20 year old would have $7285 dollars more than the 30 year old and $11757 more than the 40 year old.
This is the magic of compound interest. Let’s take another look at the same scenario, but this time you invest and extra $100 per year.
| Start Age | Initial Investment | Annual investment | Percentage Rate | Total at age 65 |
| 20 | $2,000 | $100 | 5% | $35737 |
| 30 | $2,000 | $100 | 5% | $21167 |
| 40 | $2,000 | $100 | 5% | $12222 |
The $20 year old make a total investment of $6,600. The 30 year old would invest $5,600 and the 40 year old $4500. The 20 year old would have $14570 more than the 30 year old and $23515 more than the 40 year old.
The sooner you start investing, the better. Remember that the market is volatile. That means you will have gains one day, and losses the next. Investing is a long term practice. Take a look at your investments every month, but not every day. The myth of the day trader getting rich is nothing more than a myth. If anybody can do it, then all of us would be rich. A steady consistent approach and good financial advice will set you off on the path to a rewarding retirement. Just don’t wait any longer.
Sunday, August 5, 2012
Save on Airport Food
Have you ever taken notice of the marketing efforts at the airport? Food,food, and more food. I travel very frequently. As a matter of fact, I'm sitting in the United airlines gate area in Indianapolis right now. I took a look at the food establishments along the walk to the gate. The biggest thing that I noticed is the markup in prices. Some of the markups appear to be around $2 for counter service per entrée.
Here is an idea. Eat before you get to the airport. Have a good meal before leaving home. My wife packed a couple of snacks for me before I left. TSA allows small snacks to pass through security now. My travel time with one 45 minute layover from when I left my house till I land is 6 hours. By the time I'm ready for dinner, I'll already be checked into my hotel and looking for the grocery store.
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