Milking the Dollar$

To follow up on my post regarding Bing.com, I would like to mention that right now this site is running a promotion called “Double Savings Days.”  During this time, cashback at most stores will be doubled!  Thus, you can potentially receive up to 50% cashback on your purchases before it ends on September 1st. 

After some investigation, I have found that there is some significant cashback to be had in with this promotion.  For example, last time I checked Footlocker and Eastbay were offering 50%!

For more information on Double Savings Days, visit the FAQ page at Bing.  If you find any great deals, please post them below to share with the group.  Happy hunting!

Unless you’ve been living under a rock, you’ve probably heard about Bing.com.  Being familiar with it, however, isn’t enough, because if you’re not utilizling its cashback program, you’re wasting money!  Thus, today I’m going to give a little introduction to Bing, as well as a real life example of  one way I recently saved money using it.

Bing.com

Bing has been around since June 1st of this year.  Before that, it was Live.com, which was rebranded due to its lack of success.  It is a search engine like Google and Yahoo, but with the added benefit of earning cashback.  When you search for a certain items, an icon (see below) will appear next to participating merchants, including the percentage you can earn.

To earn cashback from Bing you must have a paypal account and sign up at their main page, both of which are quick and easy to do.  Before recently, you could use Bing 12 times/year on any given account, but they recently changed that to 20 times per email account.  Thus, if you want to use it more (like I will), you will have to register another email account every time you use your given 20. 

I realize my description of the program is a little vague, but I am just trying to break it down and make it simple for you to get started.  If you still have questions, post them below or read the “FAQ” section of your account.

Just this week, I used Bing to earn cashback on a purchase I made on eBay.  Given that I don’t advocate blowing your cash, you might be wondering why I would be so excited about a shopping tool.  However, as you will see in this example, I use it to save money at places I purchase everyday items.  Hopefully, you will be convinced to give it a try, because it has already saved me a few hundred dollars this year alone.

Bing in action

My most recent use of Bing was at eBay for a $500 Wal-Mart gift card.  Bing works on eBay only if you use the “Buy it now” option, so I had to do some searching for the right opportunity.  Thus, I started by going to Bing.com, signing in, and searching for “wii” which brought up a hit for Ebay with a 10% cashback icon.  Once the icon popped up, I clicked on it and went to eBay’s main page.

Unfortunately, it took me a few tries to find a gift card worthy purchasing.  Eventually though,  I found a powerseller who was selling a $500 Wal-Mart gift card for $510 with free shipping.  Before I clicked the button, however, I logged into my Mr. Rebates account to “double dip” for another 3% back.  After that was finished, I finalized the purchased through paypal and closed the window.  That’s all it took!

Like I said, I use Bing to save money on the things I already buy, and since I spend about $100-$200 at Wal-Mart/month, this discounted card will allow me to save a pretty penny over the next few months.  Below is breakdown of how I combined Bing with other cashback opportunites to get the most out of my purchase:

$510 (purchasing price) – $51.00 (10% Bing) – $15.30 (3% Mr. Rebates) – $5.10 (1% Chase Freedom) = $438.60

As you can see, I got a $500 Wal-Mart gift card for only $438.60!  That will equal over a weeks worth of free groceries by the time I spend it all!

Final thoughts

In the end, saving $61.40 won’t change my life; however, little things add up.  If I end up doing this a few more times by the end of the year, I will have potentially saved a couple hundred dollars!  That’s just one step for me in saving myself thousands of dollars on the stuff I already buy over the course of this year.

If you don’t end up using Bing (I don’t see any reason why you should not?), at least take home the lesson that you can alway find new ways to save money.  Thinking outside of the box and acting upon a savings strategyis what seperates us from America’s indebted.   Remember, your laziness and lack of initiative will cost you money, so register for Bing now, double/triple dip with other programs, and start saving money!

Someone posted a sweet deal on Fat Wallet this morning for extra-virgin coconut oil.  Right now, you can get 20% off of any product from Nutiva’s website, which offers free shipping for all items over $30.  Given that they are already having a sale on their coconut oil, you can use the promotional code “FAN” to get an entire gallon of the oil for only $31.99 tyd!

The original poster did a good job of explaining how to use the code, so I won’t rehash it here.  Just follow the link back to Fat Wallet and follow his instructions.

I just received an email from CallingMart with a promotional code for 7% off Page Plus refill cards.  If you need to put more money on your account, now is a good time to save a few bucks.  With this code, the $80 card will only cost you $74.40.  This offer is good till 8/24/2009, so don’t hesitate!

CallingMart Code:  Bk2Scol09-2

Once again, I have come across an article in Women’s Day by Mary Hunt that I feel is worth sharing.  In “10 Ways to Use Credit Cards Wisely,” Ms. Hunt details what she believes are the best ways to manage credit cards.  Not only does she give her tips, but each suggestion comes with an “action plan” on how to best follow her advice.

Although I believe she has some good ideas, I don’t agree with everything Ms. Hunt has to say.  From reading it, it appears Ms. Hunt’s is coming from the suggestion that the reader has problems managing his or her credit.  I (on the other hand) feel like those that read my blog are already financially savvy enough that they don’t need babysitting.  Thus, I have added my own suggestions on how to get the most from whatever is in your wallet.

Mary Hunt’s 10 ways to use credit cards wisely

1.  Micromanage your account:  I probably go overboard on this!  However, it is important to register your account online and check it ever so often.  Issuers have been making a lot of changes recently, and it’s best to stay on top of your current agreement with them to avoid any fees.

2.  Keep your balances low:  If you are using almost all your limit every month, you are hurting your credit score.  The author suggests never using more than 30% of your available credit limit.  If this is impossible, it would probably be a good idea to request a limit increase.

3.  Watch when you pay:  This is one of your credit card company’s dirty tricks – changing closing and due dates without warning.  My solution to this has always been to schedule a payment for the complete balance on the the day my statements normally close.  By doing this, I never forget to make a payment and can notice early on if they have changed the due dates.

4.  Think twice before transferring:  I have never done a transfer, so I can’t really comment on this.  The author, however, notes that you will likely pay a fee of 3-4% on the  balance, as well as lower your credit score.

5.  Request a limit increase: This is a good idea if you are constantly charging up to your credit limit, because otherwise you will start lowering your credit score.

6.  Don’t apply for credit cards you don’t need:  This is good advice, because at a certain point, the number of credit lines will start to hurt your credit score.  Also, although it wasn’t mentioned the article, it is important to note that most issuers do a “hard pull” of your credit history during the application process.  Unfortunately, this will also lower your credit score.

7.  Keep accounts open:  The author makes the point that once an account is open, the damage has already been done.  Thus, she suggests keeping them open to prevent your credit score from being lowered.

I have done this myself on a store card I never use.  I wish I had never opened it to begin with, as I will never use it again; however, I don’t want to close it now, because I will lose that credit history.  Therefore, my solution was to cut it up, but keep the account number and contact information just in case I someday need it.

8.  Keep accounts active:  This is really important in this day and age.  As the author mentions, a closed account is never a good thing.  I would also add that you are likely to get your limit cut if you don’t make some occasional purchases with any given card.

9.  Lower your rate:  The author suggests calling your card’s customer service to request a lower rate.  She argues that if you are paying over the average rate (14.3%), you need to request that they lower it.

I don’t agree with Ms. Hunt on this point.  In fact, since I suggest you always pay your balance in full every month, it’s always best to focus on getting the most lucrative rewards programs available instead.  Personally, I have no idea what the percentage is on any of my cards, and frankly, I don’t care, because I don’t pay interest!

10.  Get the right rewards card:  Unfortunately, there is not a lot of choice today, as major card issuers are cutting back on their rewards programs.  However, I suggest you choose more than one, so that you can maxmize your rewards in every situation.  For example, I carry a Chase Freedom for everyday situations, a Discover Open Roads for when I purchase gas, and an Amazon Visa for purchasing books.  These 3 allow me to get between 1-5% cashback on every purchase I make.  Remember, it’s all about those nickels and dimes!

My credit card advice

Unlike many of my fellow Americans, I absolutely love credit cards!  They are invaluable tools if used with caution.  In my years, I have noticed that the people that hate them are usually the ones who have abused them and then subsequently refused to take responsibility for their actions.

In my mind, I like to think of a credit card as “the ring” from Lord of Rings.  It’s powers are immense, yet it corrupts the weak-willed.  With this in mind, here are some tips to help you better wield your card’s power:

1.  Never spend more than you can pay off at the end of the month!  To me, this is a no-brainer, but some people just can’t seem to control themselves.  Credit cards offer some of the worst type of loans you can get, so don’t use them as such!  Instead, consider them interest-free monthly “floats” which allow you to keep your cash in high-interest accounts while borrowing theirs. 

2.  Focus on the rewards program offered and ignore the interest rate:  If you follow the above advice, there is no reason to ever worry about the interest rate.  Instead, select the cards which will provide you the most rewards and start racking them up!

3.  Put every purchase you can on plastic:  After I have fulfilled my monthly rewards checking obligations, I put every purchase possible on my credit cards.  Not only does this allow me to earn hundreds of dollars every year, but it also affords me certain buyer protections that cash does not.

4.  Schedule a payment as soon as your statement posts:  I am a busy guy, so I tend to forget things.  Thus, I make it a habit to schedule a payment for the full amount on the day my statement closes.  This routine has kept me from paying interest and/or late fees due to forgetfullness.

5.  Schedule you payments in a way that allows 1 business day before the due date:  Scheduling my payments for the next to last minute allows me to get the most of the interest-free float provided by credit card companies.  However, I wrote “next to last” for a reason, as I like to leave 1 business day to correct any mistakes and to ensure sure my payment does not post on the next day.

6.  Carry more than one rewards card:  I mentioned this before, but it’s worth repeating.  The percentage on rewards cards usually varies depending upon what and where you are purchasing.  Thus, whether you are picking up clothing, gas, or groceries, you will always be prepared to get the most mileage out of your dollars.

I am happy to announce yet another addition to The Money Bloggers network, Brain Dead Simple! Financial Organizing!  If you have time, please give this site a visit.   Susan puts a lot of effort into her posts, and I’m sure you’ll enjoy them as much as I do.

Another week and yet another great round of posts by my partners!

Ben at Banker, Saver discussed how to develop a CD ladder.  This is a good strategy to keep part of your money liquid, as your CD’s mature at different times.  As always, Ben does a great job of explaining how a CD ladder works.  However, at the current rates CD’s are yielding, I suggest looking a putting your cash into a rewards checking account instead.

There was a post Thursday on Debt Loans about how to make credit card debt history.  The author put his own twist on what is practically a “tried and true” method.  I like how he reminds readers to keep reading financial blogs, because that is a great way to learn personal finance!

Olivia at Independent Beginnings made note that Student Bloggers was giving away an HP laptop!  The winner was announced on Saturday, and (like always) I didn’t win:(

My Life Finance posted a very interesting article titled “Swoopo: The Auction Scam.”  In case you aren’t familiar, Swoopo is kinda like eBay on crack cocaine.  From what I hear, the auctions are cutthroat and kinda confusing?  To learn more, read the original post because the author does a good job exposing it.

Wallet Wise featured a post on positive signs in the housing market.  This has been in the news a lot recently.  I personally feel that most markets are still way overpriced and further correction is needed.  However, never underestimate the ability of the real estate industry to re-inflate the bubble.

Here is an article by Jeffrey Strain about 6 simple ways to save yourself thousands of dollars! It is just one part of a larger series; however, I found it to be the most important segment.

Overall, I found it to be excellent and all 6 “moves” to be great ways to save money. Even though they are all pretty simple ideas, don’t discount their effectiveness.

6 Moves

1. Get organized: I have been doing this myself the last few years. It has been an ongoing process, but I finally feel like I am getting to where I want to be.

You might wonder how this will save you money? The answer is simple: the less “crap” you have the less house you can live in. Small housing is cheaper in rent and utilities which equals to hundreds in saving.

Just a few years ago, I could have never fit all of my stuff in my 395 square foot apartment. However, lately I have really worked on divesting myself of stuff I didn’t need. Now, not only do can I fit in a sub-compact space, but I have room to spare!

2. Start a part-time business: For many, home businesses often lead to full-time careers. The author himself started writing as a side gig, and now that is how he makes his living.

Opportunities are everywhere. I suggest you assess your personal skills (as well as your passions), if you are interested in starting a side business. Once you have an idea where your heart is, you can start focusing on how to monetize your hobbies.

As you know, I blog as one of my pseudo side-businesses. I knew I liked personal finance and making money, but for years I just read what others had say instead of posting my own ideas. Eventually, however, I decided it was time to turn my interest into an income generator. Whether or not I sink or swim in this venture, I know I’ll feel good about it, since at least I tried. Nothing feels worse than wondering what might have been?

3. Anticipate big purchases: This cannot be repeated enough! Simply put, time allows you to search out the best bargain, whereas waiting for something to finally die usually doesn’t leave you with that luxury.

For example, if I were to replace a major appliance. I would personally try to wait till Black Friday to find the best deal. Alternatively, I might just wait till I find a “going-out-of-business” or other clearance sale. Even just waiting for Bing.com cashback to hit its high point would likely result in significant saving.

4. Take a tax class: I have never done this; however, I have always reread the tax rules when doing my own taxes. Having knowledge of all the available credits and deductions for which you qualify can easily save you thousands!

Don’t think you already know what credits are available to you. Tax rules change, as well as life situations. If you get comfortable in a tax routine and fail to keep yourself educated, you will likely miss out on huge saving as your circumstances evolve.

5. Drop a habit: I know what you’re thinking: “but I don’t drink or smoke?” “How can possibly save from this tip?”

The author makes a good point that it’s not only the deadly habits that cost us money. He was able to wean himself of a soda/sports drink habit that cost him $1,000/year. That’s right; he put an extra $1,000 in his pocket by just switching to tap water!

6. Trash your TV: The article notes that the average American watches 30 hours of TV every week! Not only is that spending money on cable, energy, and equipment, but more importantly, it is wasting time that could be spent on developing skills or working a side gig. Over the years, I have noticed that most of the broke/indebted people I know watch an excessive amount of television.

Final thoughts:

Without a doubt, I think this is one of the most important articles I have come across in awhile. The author has done a wonderful job of finding easy ways to really turn around a personal financial situation.

Everyone is probably guilty of a few of these, including myself. The goal here is not to be perfect. We are only human remember.

In place of seeking immediate perfection, set a plan to meet your own goals and work towards them one step at a time. For example, instead of drinking 10 sodas/week, cut back to 6 at first. Instead of watching TV 5 hours every night, settle for 2. Not only will your wallet become fatter, but you also likely start living a more fulfilling life.