Capital One 360 is one of the oldest online banks. In this review, we look at the savings products it offers, the interest rates, and the fees.
Banking Deal: Earn 1.75% APY on an FDIC-insured money market account at CIT Bank. Savings Accounts OfferedCurrently, Capital One has three true savings account offerings, as well as some IRA and CD options. Since this review is focused on pure savings accounts, we’ll skip these latter two options. The savings accounts include:
We’ll break out the features and fees associated with each account, and then talk about which one might be right for your particular needs. 360 Savings AccountThis fee-free account offers a 1.00% APY. It’s not the highest in the market for online accounts, but it’s also not the lowest. And the fee-free account with no minimum deposit makes it a good option for those who don’t have a ton to put into savings right away. Of course, the account is FDIC insured, as well, so you know your money will be safe. One thing that’s nice about this account is that you can set up an automated savings plan. The account will pull money from your main checking account on a regular basis, whenever you set it. Automating your savings is a great way to become a better saver, so this is a wonderful feature. Other features include:
Speaking of that last feature, Capital One is known for its great mobile app. It lets you do all of your account management conveniently on your phone. 360 Money Market AccountUnless you already have a chunk of change to put into your new Capital One 360 account, skip the Money Market option. Its 1.50% interest rate looks attractive. That is until you realize that you need at least $10,000 to get that rate. Less than that, and you’ll only get .85% APY, which is significantly less than you’ll get with the 360 Savings account. The other account features are similar, though, including the fee-free structure and the mobile savings tools. But your best bet here is to use the 360 Savings account until you have a $10,000 balance. You could then transfer that money–maybe part of your emergency fund–to the 360 Money Market account to take advantage of the higher interest rates. But until you’ve met that balance threshold, don’t bother. Kids Savings AccountThe Kids Savings Account is a great option if you want to teach your kids to manage their money. It’s very similar to the 360 Savings option. It has the same 1.00% APY, no fees or minimum balances, and online savings tools. You can, for instance, schedule your kids’ allowance to come into their account from yours on a regular basis. Kids can also use the My Savings Goals tool to save for specific things. The main difference between this account and the adult version is that the app includes parental controls. Adults can sign into the account with their own PIN to manage the account details. And you can keep tabs on how your kids are saving or using their money. Opening Multiple AccountsOne of the great things about the Capital One 360 system is that its set up to let you easily open multiple linked accounts. You can have up to 25 accounts between 360 Savings and 360 Money Market. This is a great option for saving for specific goals. You could have one account for emergency savings, another for shorter-term savings, and a few more for specific savings goals. Managing multiple accounts is easy with the Capital One 360 online tools and app. So you don’t have to worry about getting confused as to where your money is or how to access it. You can just sign on online and see where you are on your various savings goals at any given time. Bottom LineThe bottom line on the Capital One 360 accounts is that they’re a decent option, especially if having multiple savings accounts will help you reach your goals. It doesn’t have the absolute best APY around. If you want that, check out options like Barclays Online Savings, which has a rate of 1.50%. However, Capital One has become known for its easy-to-use apps and online tools, which is nice. So if you’re looking for an easy way to set up multiple accounts to manage multiple goals, Capital One 360 could be an excellent place to begin. function getQueryStringVariable(variable) { var query = window.location.search.substring(1); var ni_ad_client = ‘636953’; https://www.nextinsure.com/ListingDisplay/Retrieve/?cat=11&src=636953 The post Capital One 360 Savings Account Review appeared first on Consumerism Commentary. Capital One 360 Savings Account Review syndicated from https://internetowyportfel.wordpress.com/ via Tumblr Capital One 360 Savings Account Review
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The best money market rates today pay interest in the top 5% of all deposit accounts. These rates come from online banks. Here’s our list of the top 5. I’ve never been a big saver. And that’s especially when it comes to putting money into an online savings account or money market. During the adult period of my life, where I had disposable income, rates have been terrible. Over the last 18 months, however, rates have steadily been on the rise. And today there’s good reason to put money away in an online money market account. Why should you open a money market account?
Below you’ll find a list of the best money market accounts the internet has to offer. If you think there’s a bank out there that can compete with the offers you see below, feel free to leave a comment and we’ll see if they deserve to be added. Best Money Market Accounts
But I did say it’s a little restrictive. Currently, there is no debit card associated with the account (although they are coming in the future). Also, there is no check writing available (and it will not become available). To access your funds, you can send an electronic transfer to another bank or send a wire transfer. You can also use PeoplePay to send money to anyone with a bank account or PayPal account or request a check through the mail. Six withdrawals are allowed per month and additional withdrawals cost $10.
For that high dollar requirement, you are provided quality account features. UFB offers free mobile deposit, free “myDeposit”, an app that allows you to deposit checks and free postage paid envelops to mail checks if you need to. Also, a free Visa debit card is included, to make your withdrawals or pay for things from your Money Market account.
The excessive transfer fee is $10, cashiers check fee is $10 and the returned deposit fee is $10. EverBank provides you with a debit card that can be used for any purchase or cash withdrawal. EverBank has a wide variety of other deposit products that include the Yield Pledge guarantee. There is a mobile app that allows you to make check deposits and if you live in the Jacksonville area, you can go to a branch if needed.
Cap One will issue a debit card for purchases and withdrawals and provide access to their mobile app. While I personally do not have an account with Cap One 360, my wife does. I have to say the mobile app is far and away the best of any bank. Easy to use, fast, and it allows you to move your money in a variety of ways. Depositing checks with their mobile check deposit feature is also a snap. Minimum deposit to open an account is $1
Discover is straight forward about their fee structure. No ATM fees, no check fees, no account closure fees but there is a $10 monthly maintenance fee for balances of less than $2,500. There’s also a $15 excessive withdrawal fee and a $30 fee for outgoing wire transfers (but nothing to make ACH transfers).
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In 2011, for instance, I was on a panel at the International Game Developers Association summit, which is a conference for videogame designers. (How perfect for nerdy ol’ me!) My colleagues and I spent an hour discussing the “gamification” of personal finance — learning to manage money using techniques more commonly associated with games. Think of your favorite games — especially video games. What makes them fun? What makes you want to play again? How can these elements be extracted from game design and used in real life? In this case, for promoting smart personal finance? Over the past few years, I’ve seen this idea discussed a few times, but nobody’s ever really taken the time to explore the idea at length. Until now. Today, former GRS staff writer Kristin Wong released her first book, Get Money, which is all about applying game-playing principles to money management. “This book gamifies personal finance so that you’re motivated to take control of your money,” Wong writes. “Most books have chapters, but being more action-oriented this book has ‘levels’ that you must ‘beat’.” I love this concept, and I love this book.
Stage I – Power UpWong groups Get Money‘s “levels” into three stages, the first of which covers core financial topics. She begins where I’ve learned to begin with people new to money management: She asks her readers to “define their mission”. In every good game, you have a clear objective that you’re trying to complete. To win at the game of money, you need clear objectives too. “The secret to successfully managing long-term,” Wong writes, “is to think of money as a tool to support what matters to you, then give your money an actionable mission.” After you have a plan, your first assignment is to build an emergency fund to cope with unexpected expenses. Why is this so important? Wong writes, “As unnecessary and as much like overkill as it may seem, an emergency fund is a crucial first step toward getting your money in order for one simple reason: it empowers you.” Next, Wong walks readers through the thrill of thrift and budgeting. Okay, thrill might be stating it a little strong. But Get Money does a great job of explaining why frugality is a virtue, how it’s a practical tool that allows you to cut costs on the unimportant things so that you can spend more on the stuff that matters. Wong also explains how budgeting doesn’t have to be restrictive. Done right, a budget helps you create a plan to achieve the mission you’ve set for yourself, a way to “win” the game of money. To trim spending, Wong encourages readers to consider the budgeting inverted pyramid: When you make cuts, start at the top of this pyramid and work your way down. Start by trimming “variable wants”, then move on to “fixed wants”, and so on. I had never heard of this concept before, but I think it’s valuable. (And, in fact, I intend to incorporate the idea into a workshop I’m doing in June!) The final “level” of Stage I is thinking about how money affects your relationships. Stage II – OptimizeAs with any game, after you’ve mastered the basics, it’s time to move on to more difficult (and more rewarding) challenges. Once you’ve learned how a game’s controls work and what the essential mechanics of gameplay look like, then you’re ready for more interesting obstacles. In the game of personal finance, that means learning how to optimize and upgrade your actions and accounts. If you havne’t already done so, for instance, Wong recommends taking the time to research the best bank accounts and credit cards. If you’re stuck with a Wells Fargo checking account that charges you a $10 per month service charge, it’s in your best interest to find a free checking account — and a savings account that pays more than 0.01% interest. If your credit card doesn’t offer perks and rewards that work with your life, find a better one. For those with debt, gamification is a perfect way to pay it off. Instead of letting the process drag you down, turn debt reduction into a “mini-game”. That means doing things like using the debt snowball, sure, but it also means looking for ways to “supercharge” debt repayments: taking advantage of windfalls, selling the stuff you no longer want or need, and looking for other ways to earn more money. But optimization isn’t just about paying off debt and building a better credit score. Wong spends an entire chapter teaching how to “de-consumerize your brain” by overcoming emotional spending, avoiding cognitive biases, and making mindful decisions with money. Stage III – GrowThe final stage of Get Money‘s financial gamification challenges readers to grow their wealth snowball. “Concepts like budgeting, frugality, and conscious consumption are important,” Wong writes, “but nothing will turn your finances around better than simply making more money.” In this final section, she covers three essential topics:
By the time a reader has worked his way through Get Money, it’s Wong’s hope (and my belief) that he will not only be well on the way to winning the game of personal finance, but that he’ll move forward with a sense of financial confidence. She wants readers to feel more in control of their money. “When you feel in control,” Wong writes, “you’re more likely to make decisions that maintain your control, and that sense of power becomes a self-fulfilling prophecy.”
Game OverOften, reading a money book is passive. The author gives you stats and concepts, but never asks you to act. Get Money is not passive. Every chapter explores a key financial concept, then asks the reader to put the ideas into practice. Wong spends a lot of time urging readers to negotiate, for instance. She provides detailed instructions on when and how to do this, then asks readers to set aside an afternoon to actually put these negotiation skills into practice by haggling for better deals on every monthly bill. Get Money contains dozens of exercises like this. Plus, it’s packed with advice from subject-matter experts (like tax advice from a tax expert) and links to supporting material and further reading. It’s very much a book intended to help readers actively take control of their financial lives. When Wong applied to be a GRS staff writer in 2012, I was impressed with her ability to communicate complicated subjects. She was able to take boring stuff like frugality and saving, and make those topics relatable to the average person. Plus, her articles were funny. Unsurprisingly, Wong exhibits these same strengths in Get Money. Most money books tend toward boring and stale. Not this one. Get Money is both funny and wise, packed with practical tips for how to play the game of money — and win. If you want to take your financial life to the next level, you need this book! The post Book Review: Get Money appeared first on Get Rich Slowly. Book Review: Get Money syndicated from https://internetowyportfel.wordpress.com/ via Tumblr Book Review: Get Money Nothing is more important for your safety than a reliable smoke detector. To help you make a wise choice, here are the best smoke detectors for your money. Having adequate and working smoke alarms in your home isn’t just a personal preference. These gadgets are easy to take for granted. But they can mean the difference between life and death for you and your family, as well as neighbors and others around you. So which smoke detector is the best for your money? There are many different brands, models, and types of smoke alarms on the market. This makes picking the right one for your home confusing, especially if you need to stay within a budget. Luckily, we are making the process easier for you. We have combed through the options to bring you the best of the best in each possible smoke detector category, based on consumer reviews and features available. That way, you can ensure that your family is safe, no matter how much you can afford to spend. What Your Home NeedsThere’s no question: smoke detectors save lives. In fact, over 60% of fire-related home deaths between 2009 and 2014 involved houses without a working alarm. So, it’s easy to understand how using the right alarms can not only save your home but also your family in case of a fire. The National Fire Protection Agency (NFPA) recommends each home have a smoke detector on each level, in each bedroom, and outside each sleeping area, at a minimum. For an average two-story house with three bedrooms, this would mean at least 5 alarms. Depending on the configuration of your home, whether you have a basement, the height of your ceilings, and other factors, you may want to consider installing even more than that. The NFPA recommends you install interconnected smoke alarms. That way when one alarm goes off, they all go off. Otherwise, you could have a fire in your basement but still not be alerted to the smoke in time because you couldn’t hear the alarm from the top floor. Even the most affordable smoke alarms today can often be programmed to connect with one another.. You should test your smoke alarms monthly to ensure that they are working properly and that the batteries are in good order. After 10 years, you should replace the detectors altogether, even if they seem to still be working fine. Optional FeaturesToday’s smoke alarms offer a variety of additional features. The most common are carbon monoxide detection, WiFi connectivity, mobile and/or voice alerts, and home automation interface to work with systems like Amazon’s Alexa or the Nest system. In 2010, fire departments in the U.S. responded to an average of nine calls per hour where homes had detectable levels of carbon monoxide (CO). Called the silent killer, CO is most often found in homes that burn fuels for heating or cooking. However, it can also spread from areas like the garage, where vehicles emit the odorless gas. The NFPA recommends that each home have one carbon monoxide detector on each level, as well as one outside each sleeping area and any area where you use natural gases, wood, or other fuels for heat or cooking. Because of this, it’s often useful to purchase a smoke detector that is also a combination CO detector. This saves you both money and time for maintenance/installation/testing. In addition, it saves you wall and ceiling space! Smoke detectors with mobile alerts will let you know when an alarm event has occurred, regardless of where you are. Even if you don’t have a smoke detector system through your home security system, you can still be in the loop with what’s going on in your home. You can even alert the fire department if there is a fire while you’re away. This can potentially save your home from serious damage! Alarm systems with voice alerts will not only sound a shrill notification, but a voice will sound letting you know why the alarm is going off. This is useful if you have a combination smoke/CO detector. That way you know which alert is setting off the alarm. It’s also helpful if you need to decipher between an actual alert and a low battery notice. Lastly, WiFi connectivity is popular. This allows you to connect your alarms to a system like Nest or Alexa, remotely monitoring your home in yet another way. You’ll get notifications when batteries are low, monitor alerts remotely, and silence false alarms from within the system’s smartphone app. The Best Detectors on the MarketSo, which smoke detectors are the best available? And which one will meet your needs and budget? Here are our favorite values based on the features offered, consumer reviews, and, of course, the price tag. Nest Protect–Best Performance & VersatilityWhether or not you utilize the Nest home automation system, the Nest Protect smoke alarm is a great value. It’s a top-of-the-line detector that alerts you to the presence of both smoke and carbon monoxide. It has optional WiFi connectivity and gives voice alerts when it has low batteries or detects an event. You can also link the Nest Protect system to Amazon Alexa, Google Home, Nexia, Vera, or Wink. No matter which home automation platform you prefer, this alarm is likely compatible. You can hardwire Nest Protect or power it by battery, depending on your preferences. If you download the app, you can also control your alarms in addition to any other Nest products you may own. You can remotely monitor the alarm’s status and even conduct your monthly tests directly from your phone. No more climbing up a ladder just to push test buttons! Lastly, and most importantly, is the fact that Nest Protect receives excellent ratings for its smoke and CO detectability. This alarm offers not only a user-friendly experience, but the peace of mind that you need for your family and your home. You can purchase the Nest Protect for $119 from Amazon. First Alert 3120B–Best ValueIf you’re looking for a smoke alarm that is both affordable and has excellence performance ratings, look no further than the First Alert 3120B. This alarm offers both ionization and photoelectric sensors. This means it detects both smoldering fires and fast-spreading, high burning ones. It can connect to other units, creating a system of alarms that will all sound when one senses danger. The detector is hardwired but also includes a battery backup. Its lightning system offers additional information after an event. This lets you know which smoke detector sounded first in an emergency, or which alarm has a low battery that needs changing. This system is much more affordable than the Nest Protect. While it doesn’t have voice alerts, Wifi connectivity, or an app, it offers protection from two different types of fires for a fraction of the cost. You can purchase the First Alert 3120B for $32 from Amazon. Kidde Combination Smoke/CO Detector–Best Combo Alarm ValueIf you’re looking to stay within budget but want a combination smoke/carbon monoxide detector, this Kidde alarm is perfect for you. For a fraction of the cost of a smart detector, you can install the Kidde alarms throughout your house to protect against fires and CO poisoning. The alarm offers voice alerts so you’ll know which event has triggered the system. And you can connect multiple units to one another through your WiFi network. The detectors are run entirely off of battery power, too. So they don’t need to be hardwired. While this means that you definitely need to stay vigilant about your monthly testing (and regular battery replacement), it also makes for a much easier installation process. You can purchase the Kidde Combination Smoke+CO detector for $32 from Amazon. First Alert P1010–Best DesignIf you’re looking for a reliable smoke detector system with a more modern aesthetic, look no further than the First Alert P1010. These neat little alarms have a unique design. They move away from the ordinary flat detectors of the past few decades. Plus, they come in a number of colors and finishes. So you to match your decor while still protecting your home. The P1010 isn’t just a pretty face, though. The detector comes with a slew of features. First off, it comes with an installed, 10-year lithium battery. This means that you don’t have to worry about constantly changing out 9V batteries from a step ladder. Instead, the battery will signal with an “end-of-life” tone after you’ve reached the end of its years. This tells you to replace the entire alarm. The P1010 is also notorious for helping you avoid nuisance alarms, such as those caused by normal cooking smoke or even steam from showers. Its SmartClip system makes for easy installation. And an advanced smoke entry system gives you peace of mind that the detector is protecting your family against true threats at all times. You can purchase the First Alert P1010 for $22 from Amazon. We all know how important smoke detectors are in our homes. They constantly protect our families from smoke and fires. And today’s systems can even alert us to the danger of carbon monoxide. No matter whether you choose a basic alarm or a smart detector that interfaces with a home automation system, it’s imperative to choose one that has great ratings and the features you need most. Then, be sure to install at least the minimum number recommended by the NFPA and test your alarms monthly. The post The Best Smoke Detectors for Your Money appeared first on Consumerism Commentary. The Best Smoke Detectors for Your Money syndicated from https://internetowyportfel.wordpress.com/ via Tumblr The Best Smoke Detectors for Your Money The best money market rates today pay interest in the top 5% of all deposit accounts. These rates come from online banks. Here’s our list of the top 5. I’ve never been a big saver. And that’s especially when it comes to putting money into an online savings account or money market. During the adult period of my life, where I had disposable income, rates have been terrible. Over the last 18 months, however, rates have steadily been on the rise. And today there’s good reason to put money away in an online money market account. Why should you open a money market account?
Below you’ll find a list of the best money market accounts the internet has to offer. If you think there’s a bank out there that can compete with the offers you see below, feel free to leave a comment and we’ll see if they deserve to be added. Best Money Market Accounts
But I did say it’s a little restrictive. Currently, there is no debit card associated with the account (although they are coming in the future). Also, there is no check writing available (and it will not become available). To access your funds, you can send an electronic transfer to another bank or send a wire transfer. You can also use PeoplePay to send money to anyone with a bank account or PayPal account or request a check through the mail. Six withdrawals are allowed per month and additional withdrawals cost $10.
For that high dollar requirement, you are provided quality account features. UFB offers free mobile deposit, free “myDeposit”, an app that allows you to deposit checks and free postage paid envelops to mail checks if you need to. Also, a free Visa debit card is included, to make your withdrawals or pay for things from your Money Market account.
The excessive transfer fee is $10, cashiers check fee is $10 and the returned deposit fee is $10. EverBank provides you with a debit card that can be used for any purchase or cash withdrawal. EverBank has a wide variety of other deposit products that include the Yield Pledge guarantee. There is a mobile app that allows you to make check deposits and if you live in the Jacksonville area, you can go to a branch if needed.
Cap One will issue a debit card for purchases and withdrawals and provide access to their mobile app. While I personally do not have an account with Cap One 360, my wife does. I have to say the mobile app is far and away the best of any bank. Easy to use, fast, and it allows you to move your money in a variety of ways. Depositing checks with their mobile check deposit feature is also a snap. Minimum deposit to open an account is $1
Discover is straight forward about their fee structure. No ATM fees, no check fees, no account closure fees but there is a $10 monthly maintenance fee for balances of less than $2,500. There’s also a $15 excessive withdrawal fee and a $30 fee for outgoing wire transfers (but nothing to make ACH transfers).
The post 5 Best Money Market Rates for 2018 appeared first on Consumerism Commentary. 5 Best Money Market Rates for 2018 syndicated from https://internetowyportfel.wordpress.com/ via Tumblr 5 Best Money Market Rates for 2018 Capital One 360 is one of the oldest online banks. In this review, we look at the savings products it offers, the interest rates, and the fees.
Banking Deal: Earn 1.75% APY on an FDIC-insured money market account at CIT Bank. Savings Accounts OfferedCurrently, Capital One has three true savings account offerings, as well as some IRA and CD options. Since this review is focused on pure savings accounts, we’ll skip these latter two options. The savings accounts include:
We’ll break out the features and fees associated with each account, and then talk about which one might be right for your particular needs. 360 Savings AccountThis fee-free account offers a 1.00% APY. It’s not the highest in the market for online accounts, but it’s also not the lowest. And the fee-free account with no minimum deposit makes it a good option for those who don’t have a ton to put into savings right away. Of course, the account is FDIC insured, as well, so you know your money will be safe. One thing that’s nice about this account is that you can set up an automated savings plan. The account will pull money from your main checking account on a regular basis, whenever you set it. Automating your savings is a great way to become a better saver, so this is a wonderful feature. Other features include:
Speaking of that last feature, Capital One is known for its great mobile app. It lets you do all of your account management conveniently on your phone. 360 Money Market AccountUnless you already have a chunk of change to put into your new Capital One 360 account, skip the Money Market option. Its 1.50% interest rate looks attractive. That is until you realize that you need at least $10,000 to get that rate. Less than that, and you’ll only get .85% APY, which is significantly less than you’ll get with the 360 Savings account. The other account features are similar, though, including the fee-free structure and the mobile savings tools. But your best bet here is to use the 360 Savings account until you have a $10,000 balance. You could then transfer that money–maybe part of your emergency fund–to the 360 Money Market account to take advantage of the higher interest rates. But until you’ve met that balance threshold, don’t bother. Kids Savings AccountThe Kids Savings Account is a great option if you want to teach your kids to manage their money. It’s very similar to the 360 Savings option. It has the same 1.00% APY, no fees or minimum balances, and online savings tools. You can, for instance, schedule your kids’ allowance to come into their account from yours on a regular basis. Kids can also use the My Savings Goals tool to save for specific things. The main difference between this account and the adult version is that the app includes parental controls. Adults can sign into the account with their own PIN to manage the account details. And you can keep tabs on how your kids are saving or using their money. Opening Multiple AccountsOne of the great things about the Capital One 360 system is that its set up to let you easily open multiple linked accounts. You can have up to 25 accounts between 360 Savings and 360 Money Market. This is a great option for saving for specific goals. You could have one account for emergency savings, another for shorter-term savings, and a few more for specific savings goals. Managing multiple accounts is easy with the Capital One 360 online tools and app. So you don’t have to worry about getting confused as to where your money is or how to access it. You can just sign on online and see where you are on your various savings goals at any given time. Bottom LineThe bottom line on the Capital One 360 accounts is that they’re a decent option, especially if having multiple savings accounts will help you reach your goals. It doesn’t have the absolute best APY around. If you want that, check out options like Barclays Online Savings, which has a rate of 1.50%. However, Capital One has become known for its easy-to-use apps and online tools, which is nice. So if you’re looking for an easy way to set up multiple accounts to manage multiple goals, Capital One 360 could be an excellent place to begin. function getQueryStringVariable(variable) { var query = window.location.search.substring(1); var ni_ad_client = ‘636953’; https://www.nextinsure.com/ListingDisplay/Retrieve/?cat=11&src=636953 The post Capital One 360 Savings Account Review appeared first on Consumerism Commentary. Capital One 360 Savings Account Review syndicated from https://internetowyportfel.wordpress.com/ via Tumblr Capital One 360 Savings Account Review There’s a lot to be said for shopping online. The Internet is basically the biggest shopping mall the world has ever seen, with every product you could ever imagine available for sale – and it’s open round the clock. You can compare prices easily, search for coupon codes, and have your purchases delivered straight to… 8 Things You Should Never Buy Online is a post from Money Crashers. 8 Things You Should Never Buy Online syndicated from https://internetowyportfel.wordpress.com/ via Tumblr 8 Things You Should Never Buy Online There’s a lot to be said for shopping online. The Internet is basically the biggest shopping mall the world has ever seen, with every product you could ever imagine available for sale – and it’s open round the clock. You can compare prices easily, search for coupon codes, and have your purchases delivered straight to… 8 Things You Should Never Buy Online is a post from Money Crashers. 8 Things You Should Never Buy Online syndicated from https://internetowyportfel.wordpress.com/ via Tumblr 8 Things You Should Never Buy Online Whenever you make a choice, there’s a cost. By choosing to buy one item, you pass on the opportunity to purchase other items. By choosing to do one thing, you pass on the opportunity to spend your time on anything else. Opportunity cost is what we give up in order to have the thing we choose. Let’s look at an example. Imagine you own a delivery company. You have $10,000 to spend on new equipment. You could buy a new truck to add to the fleet, but then you wouldn’t be able to replace the ten-year-old computers in the main office. But if you buy new computers, you won’t have as many trucks available to make deliveries. No matter which option you choose, something is lost. That’s opportunity cost in action. While this concept is applied constantly in business, it’s often overlooked in personal finance. When you use money for one thing, that money can’t be used for anything else. If you purchase a home with a $1500 monthly mortgage payment, for instance, you can’t use that money to travel or to fund your retirement. Opportunity costs are neither good nor bad. They’re simply the price you pay to have what you choose. The problem comes when the choices you make aren’t intentional — when you make them out of reflex or habit. Every time you spend money, there’s an opportunity cost associated with it. But you’re not just sacrificing other choices in the present; you’re also sacrificing your future freedom. The Magic of CompoundingAmerican statesman Benjamin Franklin is credited with having said, “A penny saved is a penny earned.” In reality, a penny saved is two pennies earned — or more. When buy something, you spend after-tax dollars. If you were to purchase a new $23,000 Mini Cooper, for example, you’d use money left over after paying the government. But in order to get that $23,000, the average American would have to earn $30,000. The other $7000 — in the form of 5-½ weeks of work — goes to taxes. One dollar saved is worth more than one dollar spent. In the United States, where the tax burden is low compared to other countries, the average worker must earn $1.33 to have $1.00 left over. (In some countries, a worker might have to earn $2.00 to have $1.00 remaining.) But it gets worse! If you spend one dollar you could have invested, you don’t just lose that dollar but any future return you might have earned on it. Assuming typical stock-market growth, that dollar would have a value of $1.93 ten years from now — and $7.20 in thirty years. (This effect is called “compounding”, which Einstein reportedly called “the most powerful force in the universe”.) Now, watch what happens when opportunity cost and compounding come together. The Wealth SnowballYou have to earn more than a buck to have a buck; and if you spend that buck, you’re also spending its future value. On average, when you include taxes in the consideration, each dollar an American spends represents $2.57 of value in ten years or $9.57 in thirty years. (If you live outside the U.S., the consequences of spending that dollar are probably even greater.) The bottom line? The opportunity cost of spending one dollar today is ten dollars you could have had in retirement. In fact, this single concept is the cornerstone of billionaire Warren Buffett’s vast fortune. He recognized the idea when he was ten years old and it’s guided his decisions ever since. Here’s a quote from a recent Buffett biography:
This idea is so central to Buffett’s philosophy that the author named the book after it: The Snowball. (It’s a great book, by the way. I recommend it.) A lot of experts urge people to use the “debt snowball” method to quickly pay down what they owe. Here at Get Rich Slowly, I want you to apply the same concept to life after debt. Your goal, like Warren Buffett, should be to create a wealth snowball. When you look at things like Warren Buffett, it’s easier to see that saving is not sacrifice. When you save, that money’s still spent. It’s just not spent on a Mercedes or a big house. It’s spent buying your future. The opportunity cost of starting late, a foolish purchase, or a bad investment isn’t lost income or lost compounding. It’s lost time – lost experience and lost life. I’m not arguing that you should live like a monk. Far from it! But it’s important to consider the opportunity costs of every purchase you make. When you buy something, you should do so intentionally because the opportunity cost of buying on impulse is enormous. Mindful SpendingI endorse a concept called conscious spending, which I learned from Ramit Sethi, author of I Will Teach You to Be Rich. “Being a conscious spender is about making your money match up with your values guilt-free,” Sethi says. “It’s about spending extravagantly on the things you love while cutting costs on the things you don’t.” (Some experts use the term “mindful spending” to refer to the same concept.) Conscious spending means actively choosing to spend on some things and not on others. Contrast this with how most people spend. We buy things because we’re expected to. We spend to have what other people have. We sign up for gym memberships that we never use, subscribe to magazines we never read, and pay for golf clubs that get buried in the garage. We make impulse purchases at the grocery store–or even on large items, like computers and cars. In other words, we often spend without thinking. The opportunity costs of these unconscious purchases are significant. We’re sacrificing our futures for lesser pleasures today. But with conscious spending, you evaluate every purchase, asking yourself:
Mindful spending forces you to become more aware of every purchase you make. You Pay the Price for the Lifestyle You ChooseFor a long time, I was willing to spend $200 each month on gym and fitness programs because doing so helped me to lose fifty pounds and become fit. I made an active, conscious decision to spend that money, and I made certain that I derived value from it. I recognized that I was sacrificing a great deal in the future, but I believed my improved health was a worthwhile reward. On the other hand, I’m unwilling to own a new car. Financial considerations aside, I don’t care enough about features and flash to make such a purchase worthwhile. For somebody else, though, the car might be a worthwhile purchase and the gym membership a waste of money. “There are things we love, and it’s okay to spend on them,” says Sethi. “But you can’t afford to have everything. So ask yourself what you don’t care about when it comes to spending. Choose to spend your money on what you love instead.” My colleague Todd Tresidder, the Financial Mentor, once explained it to me this way: “Decide the level of comfort that’s right for you. There’s no right or wrong. You just have to be willing to pay the price for the lifestyle you choose.”
That’s opportunity cost in action. Neither option is correct, but you can’t have both. It’s up to you to decide what matters most. Truthfully, there’s a balance to be had. When you spend, be sure it’s aligned with your purpose and mission. The post How to think like a billionaire: Opportunity costs and conscious spending appeared first on Get Rich Slowly. How to think like a billionaire: Opportunity costs and conscious spending syndicated from https://internetowyportfel.wordpress.com/ via Tumblr How to think like a billionaire: Opportunity costs and conscious spending Capital One 360 is one of the oldest online banks. In this review, we look at the savings products it offers, the interest rates, and the fees.
Banking Deal: Earn 1.75% APY on an FDIC-insured money market account at CIT Bank. Savings Accounts OfferedCurrently, Capital One has three true savings account offerings, as well as some IRA and CD options. Since this review is focused on pure savings accounts, we’ll skip these latter two options. The savings accounts include:
We’ll break out the features and fees associated with each account, and then talk about which one might be right for your particular needs. 360 Savings AccountThis fee-free account offers a 1.00% APY. It’s not the highest in the market for online accounts, but it’s also not the lowest. And the fee-free account with no minimum deposit makes it a good option for those who don’t have a ton to put into savings right away. Of course, the account is FDIC insured, as well, so you know your money will be safe. One thing that’s nice about this account is that you can set up an automated savings plan. The account will pull money from your main checking account on a regular basis, whenever you set it. Automating your savings is a great way to become a better saver, so this is a wonderful feature. Other features include:
Speaking of that last feature, Capital One is known for its great mobile app. It lets you do all of your account management conveniently on your phone. 360 Money Market AccountUnless you already have a chunk of change to put into your new Capital One 360 account, skip the Money Market option. Its 1.50% interest rate looks attractive. That is until you realize that you need at least $10,000 to get that rate. Less than that, and you’ll only get .85% APY, which is significantly less than you’ll get with the 360 Savings account. The other account features are similar, though, including the fee-free structure and the mobile savings tools. But your best bet here is to use the 360 Savings account until you have a $10,000 balance. You could then transfer that money–maybe part of your emergency fund–to the 360 Money Market account to take advantage of the higher interest rates. But until you’ve met that balance threshold, don’t bother. Kids Savings AccountThe Kids Savings Account is a great option if you want to teach your kids to manage their money. It’s very similar to the 360 Savings option. It has the same 1.00% APY, no fees or minimum balances, and online savings tools. You can, for instance, schedule your kids’ allowance to come into their account from yours on a regular basis. Kids can also use the My Savings Goals tool to save for specific things. The main difference between this account and the adult version is that the app includes parental controls. Adults can sign into the account with their own PIN to manage the account details. And you can keep tabs on how your kids are saving or using their money. Opening Multiple AccountsOne of the great things about the Capital One 360 system is that its set up to let you easily open multiple linked accounts. You can have up to 25 accounts between 360 Savings and 360 Money Market. This is a great option for saving for specific goals. You could have one account for emergency savings, another for shorter-term savings, and a few more for specific savings goals. Managing multiple accounts is easy with the Capital One 360 online tools and app. So you don’t have to worry about getting confused as to where your money is or how to access it. You can just sign on online and see where you are on your various savings goals at any given time. Bottom LineThe bottom line on the Capital One 360 accounts is that they’re a decent option, especially if having multiple savings accounts will help you reach your goals. It doesn’t have the absolute best APY around. If you want that, check out options like Barclays Online Savings, which has a rate of 1.50%. However, Capital One has become known for its easy-to-use apps and online tools, which is nice. So if you’re looking for an easy way to set up multiple accounts to manage multiple goals, Capital One 360 could be an excellent place to begin. function getQueryStringVariable(variable) { var query = window.location.search.substring(1); var ni_ad_client = ‘636953’; https://www.nextinsure.com/ListingDisplay/Retrieve/?cat=11&src=636953 The post Capital One 360 Savings Account Review appeared first on Consumerism Commentary. Capital One 360 Savings Account Review syndicated from https://internetowyportfel.wordpress.com/ via Tumblr Capital One 360 Savings Account Review |
About UsI am a general Writer and Blogger. I have worked mainly in the corporate financial industry and I used my past experiences in banking to write on financial matters sometimes. Being a past Banker and Financial Adviser, I hold credentials in the field of Business Management. I extend my writing genres to other industries such as health and science.
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