Pro Tip: Create a "Bills" Calendar on your Computer/Smart Phone

A while back I created a calendar called "Bills" on my computer. This calendar syncs with my iPhone and now I know when all of my bills are due. I have automated the majority of my bill paying but have a few that are not for various reasons.

Regardless if you automate or not this is a useful tool. I have reminders pop up and I can go check to be sure that the automatic payment went through or I just simply make the payment when it is time. This forces me to be aware of my money while still keep it 90% automated and less prone to mistakes.

I also use this to keep track of irregular payments such as insurance. I pay my life, auto, and homeowner's insurance once per yer to get the lowest rate. They are all due in different months. This calendar also reminds me when to send these payments which could be easily forgotten other wise!

Because of this system have virtually eliminated all late fees and associated stress. I don't pay the insurance company's "lazy tax" by getting on a monthly plan. That is just not frugal at all! It took me about 30 minutes to set up and I don't have to worry. Get an new bill? Add it to the calendar. Drop/or change a bill? Adjust as needed!

Making My Credit Card Bonuses work: Business Class to Asia!

I have been focusing lately on some credit card bonus deals so I can get my flights to Asia this year in business class so I only have to pay taxes. I am working 2 deals where I will have enough miles for a one way on Star Alliance (Continental, United, etc) and the other way on One World (American, British, Cathay Pacifc, etc) in business class both ways!

I am doing my first mileage run in May that will boost me up to the miles I need to cover the Star Alliance half. Once I hit $4,000 in spending on my American Airlines card a big bonus should come in and I can star searching and booking both halves of my trip. It will be nice to fly in business for a 24+ hour journey and actually get some sleep.

It will be nice if I can work deals like this every year where I get enough points to keep going on my overseas extended vacations and not have to pay a lot out of pocket! Only time will tell if this will happen but I will take what I can get!

Why Pay to Watch/Read Advertisements?

The title of this post is to make you think. People are spending around $100 USD per month on cable or satellite TV. They are essentially paying to be forced to watch the ads and relentless marketing that makes you buy more stuff. This is a very good scam in my opinion.

The same goes for magazine subscriptions. You are paying for them to mail you ads to read. Sure there may be a couple of interesting articles. But you are slammed with ads for the 20 pages between the articles you read. How else could they afford to send you the magazines for $3 per year?

The point is to ditch cable and magazines. They are 100% unnecessary and are a drain the money away from your true goals in life. If you must watch shows find alternate sources such as Netflix, Hulu, or the particular TV network's website. If you are a sports fan (which is also overrun by marketing) then I suggest looking for streaming online packages for the games you want. I promise they are less than $100 per month!

Start today! Cut the cord and move on with life!

How to use a United Airlines paper voucher

A friend of mine had some United Airlines paper vouchers, valued at $100 each, that he gave to me in exchange for a flight in the future using my miles. I needed this vouchers to purchase my upcoming flight to Boston for my Boston - San Diego - Boston mileage run.

I did some digging around online and also called United trying to figure out how to use the vouchers. Once I found out the steps it was a relatively simple process. I will explain the process in plain words for all to understand!

First you must call United reservations line. You cannot book tickets from paper vouchers online. I found it was best to find the flights you want online then call. You will be connected to India call center.

Rules:

• Only good for United flights on United planes. No partner airlines' flights. 
• You forfeit any leftover value (In my case the flights were $264 but I sent in $300 in vouchers)
• You must go to the airport within 24 hours or mail the vouchers by the 2 week deadline.
• You can book for flights past the expiration date of the voucher. You only need to book before it expires.

 The agent will hold the reservation for you and you can view it, change seats, etc. online. I played it safe and used priority mail with delivery confirmation. It got there in 2 days and my flight was confirmed paid via email. My only cost was postage!

I must say this is a far cry from Delta where I simply enter in the numbers of my paper vouchers and can book my flight right then and there. It is a lot more efficient this way and I am sure cuts way down on overhead. I am unsure why United makes it so difficult (except that maybe they don't want them redeemed!).

Make sure to use your vouchers! It does not matter whose name is on them as they can be used to book a flight for anyone going anywhere. You can also mix vouchers and cash to pay. When you send in the voucher you have to include a copy of the ID of the person traveling as well as a copy of the ID of the voucher owner. In my case I had to send my ID as well as my friend's ID.

It is a but if paperwork, red tape, and hassle but well worth 30 minutes of my time for a free flight!

Tip: Avoid the US Mail if possible!

First off I want to say the mail has its uses. Good for sending letters, documents, checks, and so on. On the flip side they do a horrible job with packages and their tracking is horrible.

Long story short I ordered a new Garmin GPS unit to replace the one I stupidly left in a rental car. I put in my home address for billing and work address for shipping so I could be present to sign for it. I put the wrong zip code on the shipping address. It got sent out anyway--via US mail.

It is now nearly 3 weeks later and the item eventually went back to the shipper. I credit this problem to a few things:

• I made a mistake. I will take some of the blame.
• The website I purchased from did not cross-check the city/state and zip code. The zip code I entered was for a different city! A lot of online retailers do this check in background and ask you if something looks off.
• The post office couldn't make any changes. They just sent it back. If I make a mistake with Fedex or UPS all I have to do is call to get the address corrected. For almost a week the tracking said it was in "Atlanta, GA". I called the postal service and by the time I got a call back the item was already returned the the person didn't tell me any information I didn't already have.

Bottom line is I will use the mail as a last resort. They are the most archaic and inefficient shipping service in the world. I would rather pay more for UPS or Fedex and know it will get there within a reasonable amount of time and have someone to call if things go wrong somehow. If I have no other choice then I will mail it but I will purchase delivery confirmation or even certified mail to be sure it gets there. The people who work at the US Mail have zero incentive to improve and that is why it is so bad in the first place.

Shipper/Receiver beware! US Mail is a gamble at best!

My top 5 most useful financial tools

I use multiple tools to keep track of all of my financial life. They all make my life easier and automate as much of it as I feel comfortable with. I am the type who checks everything on a daily basis and watches every dollar. I have a good budget built for how I live and it works well for me.

Here are my top 5 financial tools:

1. Online Banking -- I bank with ING Direct. They have one of the best (in my opinion) online banking systems. I can send money electronically to anyone's bank account. I have free bill pay. I earn interest on my checking account. This is definitely my most useful tool!
2. Mint.com -- I use mint to help me keep track of my monthly budgets and it gives me a good "big picture" view of my current financial situation. It is about 90% automated now. I can log in, adjust the categories for a few transactions, and see where I stand at any time!
3. Microsoft Excel -- I use excel to create and adjust my budget (and update Mint if I need too). I also use excel to track all of my non-budgeted items like car repairs and extras that are not specifically in my budget. I do monthly tracking so any "surplus" gets moved to savings and not spent. I also track my Net Worth in Excel monthly (and I post that here too!)
4. iPhone - I make notes to myself related to finance such as budget adjustments I need to make, non-budgeted expenses and income, and ideas to research later. I have a calendar with my schedule of payments and reminders, I have online banking apps, and much more! Very handy.
5. Annual Financial Review - I review my entire big picture once per year in April to look at my budget, taxes, investments, savings, and estate planning each year. I make sure I am still on track for my lifelong goals and make any adjustments that I deem necessary. This step is the most important!

Having the above 5 tools at my disposal makes keeping my finances in order and in line with my goals much easier. I am to the point where I can manage my finances from anywhere that I have internet access. This is important since I plan to live overseas at some point and need to be 100% online if at all possible. 

Happy St. Patrick's Day!

Today is considered a "drinking holiday" in the USA with everyone wearing green, drinking green beer, and packing full all of the Irish pubs nationwide. Today I am wearing a green shirt and will certainly be at an Irish drinking establishment after work today.

Have fun everyone and be safe!

"Everyone is Irish on March 17th!"

It's okay to splurge on Stuff: If you can afford it.

I read this post over at Get Rich Slowly and it got me thinking. Even on my blog I am a big proponent of experiences, especially travel, as well as great ethnic food and being super frugal. That article allowed me to a step back and realize that sometimes we want to splurge on stuff (such as an LCD TV).

I began thinking of my own habits and find that I do tend to use most of my splurge money on travel. That is my choice as that is what I enjoy. I tend to shy away from buying more stuff as it adds clutter to my house, is not that important to me, and I am working hard to reach lofty savings goals. Stuff just takes a very low priority in my life.

I also realized that given the above goals I still splurge on stuff from time to time. I recently ordered a new GPS system for my car. My iPhone works fine for navigation but I like the ease of use, the ability to stay on the low data plan, and my battery doesn't die as fast. The GPS System has more advanced navigation features that I also really like.

Personally when I am buying stuff I try to direct my money to things that I need now but can also help me in travel later. The iPhone is a great example as I can get a lot of things done from anywhere and it will also prove useful on the road later. I am trying to mold my buying habits in such a way where I think to myself: If I buy this item today I will have to carry it around with me all the time. This cuts out a lot of fluff and I end up with things that are mobile.

I realize that even though travel is very important to me someone else may value a 7,000 inch plasma TV more. Once we make sure we are on track for our goals it's ok to spend some money any way you see fit. I may say that travel and experiences are much more important but that is my opinion. Do what you want with your money! (Assuming all of your vital goals are on track first!)

March 2011 Prosper Update

It is the middle of the month again and it is time for my update on prosper.com lending. It has been another quiet month with business as usual. I have 1 very late loan and 3 more have paid off completely.

I have decided to completely abandon Prosper. They have gone to a fixed rate system and that does not appeal to me at all. My ability to earn extra interest (arbitrage) has been eliminated. I will continue reporting on my experience until I have emptied the account.

I "write off" all loans in collections as a loss.

Here are my stats as of today:

Outstanding Loans:

Late: 0 (< 30 days)
In Collections: 1 (written off)
Current: 32

Closed Loans:

Charged Off: 10
Paid Off: 25

Open Bids:0

Total currently invested: $591.02 (Principal Value)
Cash in Account: $46.65

Total Principal: $637.67

Priceline.com Success: 3-star hotel for $75!

I have to use Priceline at work a lot for our business travel hotels. Today I booked my hotel in Portsmouth, NH for my upcoming travel and used their famed "name your own price" tool.  It worked and I landed a $140 room for $75.

I have had good success with this tool in the past. I have used it for myself to get a hotel room in New York City for $99 on multiple occasions. My company has used it nationwide to book rooms all over. It really is a money saver!

When I begin my search I try to see what the going rate for lower level rooms are (I always go for under $100 per night everywhere). I then submit a bid at the lower level room rate ($75 in this case) for a 3+ star hotel. Sometimes I get it. Other times it suggests a higher bid or gives your a "one time offer" of the price they really wanted.

Overall I think priceline is excellent for hotel deals. I personally believe it helps to "name your own price" when it is closer to your travel time as hotels like to fill otherwise empty rooms. If you are a week out from the travel they know that it is unlikely they will fill the room at the full rate anyway in a short time period. This is where you win!