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Top 5 Millionaire Habits

Top 5 Millionaire Habits

Posted on by kaitlyntessmer

When you think of the word “Millionaire” what comes to mind? Oceanfront mansions, Lamborghinis, personal jets, and a life of luxury? If those things scream Millionaire to you, you’re not alone. In fact, often times when I think of Millionaires I think of celebrities vacationing on private islands and shopping on Rodeo Drive. Recently, my eyes have been opened to the fact that anyone can become a millionaire. You don’t need a six or seven figure salary to join the Millionaire’s club. You can take steps today to prepare your bank account for a nice pile of cash.

The Millionaire Next Door

If you haven’t read Thomas J. Stanley’s, Millionaire Next Door, you have to check it out. I highly recommend renting a copy for free from your Public Library. But if you prefer your own copy, you can grab it from Amazon, too. A few decades ago Stanley and his colleague, William D. Danko, studied the habits of hundreds of millionaires (people with a net worth of at least 1 million dollars). Their findings will likely shock you. Almost everything they found is counterintuitive to what you and I think when we hear the word Millionaire. If you want to become a Millionaire, keep reading.

Top 5 Millionaire Habits

During their multi-year study, Stanley and Danko discovered several millionaire habits. Surprisingly, a large number of Millionaires have a modest salary. Having a high salary isn’t an indicator that you will become a Millionaire, having self-control and developing good habits are bigger indicators of whether or not you will become a Millionaire.

Millionaire Habit #1: Spend Less than You Earn

This first Millionaire Habit is obvious. Of course, you have to spend less than you earn if you want to build wealth! But the fact of the matter is, 60% of Americans consistently spend more than they earn. Don’t believe me? Take a look at one of the richest men in America, Warren Buffett. Known for his love of McDonald’s, Buffett splurges, only when the stock market is doing well. What’s a typical splurge for Buffett? Spending $3.17 on breakfast at McDonald’s on a bacon, egg and cheese biscuit sandwich.

Millionaire Habit 1 : Spend Less Than You Earn

The first step to living off less than you make is to create a budget. A budget is a great way to guide your spending. Creating a budget doesn’t have to be difficult. In fact, once you create your budget you can easily replicate it month after month. To start your budget preparation, begin tracking your monthly expenses, this will give you a baseline for how much you are spending on food, entertainment, and miscellaneous.

Check out my Foolproof 8 Category Budget for more budgeting essentials.

Millionaire Habit #2: Buy Used

One of my guilty pleasures is watching Reality TV. There I said it. I am a recovering Reality TV addict. One of my favorite TV shows used to be 19 Kids and Counting. You may have heard of the Duggar Family, they’re known for their Conservative Christian values and brood of 19 children. While I don’t agree with everything they believe in, they do have a great saying “buy used and save the difference”. Buying something used saves you money in the short and long term

Millionaire Habit 2: Buy a Used Car

If you are morally against buying used clothes or furniture, I get it. But one area of your life that you should ALWAYS buy used is you car. Cars depreciate 20% the second you drive it off the lot. So that $20,000 new Toyota you just bought is only worth $16,000 the second you drive it off the lot. Ouch! Depreciating $4,000 hurts. The average new car payment in America is just under $500 per month. To throw away money at an item that depreciates in value is insane! Most Millionaires see right past the shiny exteriors and updated navigation systems of new BMWs and opt for a more economically sound used Toyota or Honda.

Check out: How to Drive Free cars for LIFE!

Millionaire Habit #3: Choose a Modest Home

Three times more Millionaires live in homes valued at less than $300,000 than more than $1 million. Why do Millionaires live in modest homes? Housing or rent is going to be the biggest expense in your budget, accounting for 25-30% of the money you spend every month. So, the more expensive your home, the more money you will spend every month to pay for that home. Big houses come with big mortgages, big utility bills, and even more property taxes. The more money you spend every month on your home, the less money you can save and invest every month.

Millionaire Habit 3: Buy a Modest House

Most Millionaires live in modest homes that they’ve owned for decades. Take the richest man in Mexico, Carlos Slim Helú, he’s lived in the same 6 bedroom house that he’s owned for the past 30 years.

Millionaire Habit #4: Stop Keeping Up with the Joneses

You know the Joneses, they’re the people who always seem to have the newest car, newest iPhone, coolest vacation. Stop trying to one-up them. One thing you’ll never know about the Joneses is how they paid for their luxury items. For all you know, the Joneses are in debt up to their eyeballs and have no savings or investment accounts. When you try to keep up with the Joneses you overspend. The comparison trap is real. It’s easy to get sucked into having the latest and greatest and showing it off. But remember, the more you spend on things the less you spend on long-term investments.

Millionaire Habit #4: Stop Keeping Up with the Joneses

The Everyday Millionaire knows how destructive keeping up with the Joneses can be. That’s why they mind their own business. Millionaires create a monthly budget and stick to it. They don’t care what others think about them and they aren’t in the business of showing off. The Everyday Millionaire knows that having a full bank account is going to give him more happiness and fulfillment than the latest and greatest iPhone.

Millionaire Habit #5: Pay Yourself First

I’ve saved the best for last. The #1 Millionaire Habit is to pay yourself first. What do I mean by that? Most people say they don’t save enough money for retirement, invest enough, or have a big enough emergency fund, because they don’t have the money to save more. That’s why most Millionaires pay into those accounts FIRST. They treat saving like a bill.

Millionaire Habit #5: Pay Yourself First

When you pay yourself first you prevent your future self from buying a round of drinks for your coworkers at the next Happy Hour event. If you’re worried that you won’t have enough money to pay the rest of your bills, worry not! Research shows that when people pay themselves first they are more likely to find ways to meet the rest of their expenses. You’ll be more motivated to find a side hustle, sell unused items, or trim the fat off your budget.

Millionaire Habits Summarized

The Millionaire Next Door is a great weekend read. I highly recommend picking up a copy to read in more detail about the habits of the average Millionaire. As counterintuitive as it is, many Millionaires don’t spend on lavish vacations, buy luxury items, or drive the newest sports car. The Average Millionaire understands the importance of Compound Interest. When you create a budget, live within your means, and save at least 20% of your income, you can become the next Millionaire Next Door.

 

 

Compound Interest Explained

Posted on by kaitlyntessmer

The other day I was taking a look at my retirement accounts and was shocked at what I had found. The amount of money I had in my retirement accounts was way more than what I had originally invested. This got me to thinking about the power of compound interest and why it is so important for Millennials. If you work hard to invest when you’re in your early 20s, the payback will be tenfold.

Simple Interest

To understand compound interest you must first understand simple interest. Let me give you an example of simple interest to help me explain.

Simple Interest

Let’s say you deposit $10,000 into a savings account. First of all, good for you! You’ve worked hard and saved $10,000, that’s a big step right there! If you chose a credit union or online bank, like Ally, you are probably earning 1% interest on that account each year. That means every year your $10,000 will earn 1% or $100. After 3 years your initial $10,000 investment has turned into $10,300. Pretty good, right? Let’s take a look at what would happen if you had invested that $10,000 into a mutual fund with compound interest.

Compound Interest

Compound interest is the interest an investor earns on her original investment plus all the interest earned on the interest that has accumulated over time. Woah! What does that even mean? You can think of compound interest as interest on interest. It creates a mathematical explosion.

Let’s say you take your same $10,000 investment and instead of parking it in a bank you decide it into a low performing mutual fund that earns 1% interest compounded annually. Side note: most mutual finds earn way more than 1%. In fact, you have to look really hard to find such a low performing mutual fund. I digress…You still earn 1% interest but that interest is compounded annually. How does that change your total at the end of 3 years?

Compound Interest

After the first year, you earn the same $100 which brings your total investment to $10,100 at the end of year one. The second year you don’t just earn 1% on your original $10,000 investment, instead, you earn 1% on your new $10,100 total. At the end of year two, your total is $10,201. The third year your total investment compounds again. Your $10,201 earns another 1% and your new total is $10,303.01.
I get it, in this basic example, the difference in money at the end of 3 years isn’t very much. With compound interest, you would have earned an extra $3.01. Not a huge deal. But what if we look at the effects of compound interest in terms of retirement?

How Compound Interest Affects Retirement

The longer your money has the opportunity to compound, the greater the effect will be. If you start contributing to your retirement at the age of 25 keep that money invested until the age of 65 you will be blown away at the results.

Simple vs Compound Interest

Simple Interest and Retirement

Let’s say on your 25th birthday your parents gift you $10,000. My, what generous parents you have! You decide to plop that $10,000 gift into an account that earns 10% interest. Unfortunately, you didn’t do your research and the interest isn’t compounded, womp womp. After 40 years you decide to take a look at that account to see the value of your investment. Your initial $10,000 investment has turned into $50,000. That’s a pretty nice birthday gift, mom and dad.

Compound Interest and Retirement

But what would happen if you invested that $10,000 gift into an account with compound interest? Good question, I’m glad you asked! Let’s take the $10,000 your parents gave you and invest it into an account with compound interest. Hold on tight, I promise you will be blown away by the results. Your original $10,000 investment at the age of 25 will have turned into $452,592.56 by the time you are 65.

That is the magic of compound interest, my friends. Even if you never invested another penny into your retirement account you will still retire with nearly half a million dollars. You did nothing except leave that money in a well-chosen account. You never touched the money for 40 years and it has rewarded you by growing exponentially.

The Importance of Investing Consistently

If you have a large pile of cash laying around or you have generous parents who are able to gift you large piles of money, the example above is perfect for you. You are fortunate enough to take your large sum of money, put it in a good investment account and watch it grow.

The rest of us need to invest consistently. If you invest $200 per month between the age of 25 and 65 you will retire a millionaire. You read that right. If you invest $200 per month over the course of 40 years, you will end up with $1.16 million dollars. 

Don’t Have Extra Money to Invest?

If you’re strapped for cash and don’t have an extra $200 per month lying around, let’s take a step back. In fact, let’s break down the numbers. $200 per month is $6.67 a day. How often do you go out to lunch? Do you stop by Starbucks every day? What about Happy Hour, how many days a week do you meet your friends for half priced drinks and appetizers? Somewhere in your budget, you can find a place to squeeze $6.67 a day into your retirement account.

If you’re looking for a way to invest $200 per month into your retirement account and just can’t find a way to make the numbers work, adjust your budget. I use a 7 category budget to help me stay on track. By using tools like Mint and EveryDollar, I am able to easily track my spending and keep it in check.

 

1800 Contacts Shopping Cart

Abandoned Shopping Cart Discount

Posted on by kaitlyntessmer

Online shopping is revolutionizing the retail industry. Now, more than ever, consumers are turning to their laptops to make purchasing decisions. With retailers aware that their brick and mortar stores and USPS mailed coupons are having less of an impact on consumers, they are looking for other ways to stake their claim in the industry. As consumers, you and I are always looking for ways to save money. This is where the concept of online shopping cart abandonment comes into play.

What is Shopping Cart Abandonment?

Every time you go to a retail website and decide you want to purchase a product the first step you take is adding it to your cart. Your online cart serves the same purpose that a physical shopping cart would in the real world. As you continue to shop online you add more and more items to your shopping cart. Just as you would if you were walking through a store and placing more items in your real shopping cart.

Let’s say you’re doing some online shopping at work. Oops! Your boss walks over and you quickly close all of your tabs to avoid having him see what you’re “working on”. You’ve just abandoned your shopping cart. You fully intend to return to online shopping when he walks away but he gives you a giant project with an unrealistic deadline and you are forced to forget about your shopping cart.

How This Affects Retailers

Your boss’s interruption is a huge problem for retailers. In fact, a recent study showed that over 67% of online shopping carts are abandoned. That’s right, for every 100 online shoppers a store has, 67 of them decide they don’t want to make their purchase immediately. Online retailers are losing trillions of dollars each year because you and I forget we put items in our virtual shopping carts.

So, what are retailers doing to try and keep people from abandoning their shopping carts?

Email Recovery Campaigns

As a consumer, email recovery campaigns are going to become your new best friend. Knowing that most consumers abandon their cart before completing their purchase, companies have come up with ways to get you back to their website to complete your purchase. If the company has your email address, they can send you targeted email campaigns encouraging you to complete your purchase. Often times these campaigns include coupons for you. I’ve seen coupons ranging from free delivery to 50% off your purchase.

The Longer Your Cart is Empty, The More You Can Save

Recently, I discovered an online resume building service. Intrigued by what they had to offer, I decided to take a look around their website, and add a package to my cart. Not quite ready to pull the trigger and go through with my purchase, I abandoned my cart. The images below show their abandoned cart email campaign.

Immediately after I abandoned my cart: No discount

Shopping Cart Abandonment Email 1

One Week after I abandoned my cart: 25% off

Shopping Cart Abandonment Email 2

Two Weeks after I abandoned my cart: 35% off

Shopping Cart Abandonment Email 3

There you have it, had I not waited, and just gone through with my purchase immediately, I would have spent an extra 35%. Which, in this case, would have been an extra $100. Having patience and waiting it out saved me some serious money!

Where Shopping Cart Abandonment Works Best

As you’ve probably guessed, abandoning your shopping cart doesn’t work all of the time. There are certain companies, or rather, certain types of retailers with which this shopping trick works best. Because every store has their own marketing strategy, some companies offer bigger discounts than others.

The Amazon Effect

Stores that have to compete with Amazon are going to have a higher chance of offering an abandoned cart discount. Think about it, if you can get anything you want on Amazon, why would you buy it anywhere else? Because you can find a discount! Consumers and businesses alike know that Amazon rarely, if ever, offers discounts. What does that mean for you? At this point, don’t expect to see any discounts in your inbox from your abandoned Amazon cart.

Consumers and businesses alike know that Amazon rarely, if ever, offers discounts. What does that mean for you? Don’t expect to see any discounts in your inbox from your abandoned Amazon cart. But do use your knowledge of Amazon’s impact on retail to your advantage. If a brand is losing more of their market share to Amazon, there’s a good chance they will do everything in their power to keep you as a customer. Often, that means you can expect abandoned cart discounts.

Which stores (Reportedly) Offer Recovery Email Discounts?

Keep in mind, companies are constantly adjusting their marketing strategies. This is, by no means, a comprehensive, or 100% accurate list. However, according to Reddit, these stores have, at some point, experimented with recovery email campaigns.

Best Buy

Home Depot

Zappos

ThinkGeek

Levis

Coastal

Discounts for New Customers Only

Some retailers only offer recovery email discounts to new customers. So, if you’ve shopped with a company before, you probably shouldn’t expect to see an abandoned shopping cart discount. But, as with everything, this isn’t a hard and fast rule. So try it out with a company you frequently shop, you never know when they’ll send you a discount code.

Other Ways to Save Online

If you don’t receive an abandoned shopping cart email discount, there are other ways to save online. My favorite Google Chrome extension is Honey. I’ve saved hundreds of dollars this year alone by using Honey. Honey searches the web for online coupon codes and automatically tries them all so that you can easily score the best deal online.

Not only do you save money immediately with coupon codes. Honey also gives you cash back for every purchase. Just today I redeemed a $10 Amazon Gift Card from Honey because I’ve earned that much in cash back. Check my review for more information on how I use Honey to my advantage.

Be sure to comment below if you’ve ever received an abandoned shopping cart email discount. How much was it for? What company? How long did you wait before you received it?

MoviePass Why It’s Worth $9.95

Posted on by kaitlyntessmer

Calling all Millennials! By now you’ve probably seen many Facebook posts and articles talking about MoviePass, the Netflix of movie theaters. If you’re a  movie lover who is strapped for cash, you need to jump on the MoviePass bandwagon.

Example of a MoviePass card and the MoviePass app

What is MoviePass?

MoviePass was founded in 2011 and was originally designed as a voucher system. Customers could print a voucher at their house and exchange it at participating cinemas to see a movie. The downside to this voucher system was that it was time-consuming and inefficient. So a year later, after many complaints, the company launched a mobile app and prepaid card which could be used at any theater that accepted major credit cards.

Fast forward to 2016, founding Netflix team member and former President and COO of Redbox, Mitch Lowe was named CEO of MoviePass. Since his takeover in 2016, Lowe has tried various pricing models ranging from $20 per month to $100 per month for unlimited movie screenings. Just recently, he slashed prices to $9.95 per month and customers are jumping on board to grab their pass before prices rise.

Which Theaters Can I go to?

According to the company’s website, the pass is accepted at 4,000 theaters or about 91% of theaters in the country. After you subscribe to the service you can see which of your local theaters accept the pass. Although, the fact that you aren’t able to see a list of local theaters before you pay for the monthly subscription has many people upset.

One Reddit user is working to help potential customers find their local theaters by creating a searchable database. However, due to the high volume of people trying to this free resource, the site is often running slow and crashing.

Image of an empty movie theater

Paying for the Monthly Subscription

The great benefit of using MoviePass is that there is not a long commitment. You don’t need to sign a yearly contract and there are no early termination fees. In fact, aside from the $9.95 price, the second greatest benefit is that you can cancel at any time.

AMC Controversy

MoviePass is revolutionizing the film industry. With remarkably low prices and easy to use service, theaters should expect to see more traffic in the upcoming months. Unfortunately, not all movie theaters are happy with the monthly subscription service. In fact, AMC has threatened to sue the company. The conflict between AMC and MoviePass has been longstanding since its founding in 2011. While you can still use your Moviepass card at AMC theaters, AMC is looking into ways to prevent customers from using the service.

As for now, we’ll just have to sit back, grab a bucket of popcorn, and see how this story unfolds. Plus, check out my MoviePass experience, to hear what I think of using the affordable monthly subscription. 

Social Security Scam August 2017

Posted on by kaitlyntessmer

The summer is winding down and scam artists are running rampant. There’s a new scam out targeting Social Security recipients and if you or anyone you know receives a Social Security check you need to be extra cautious.

Scam artists are always looking for ways to gain access to your valuable information. Your address, mother’s maiden name, and the holy grail of all personal information: your Social Security Number, are all prized possessions. With this information, scam artists are able to call the real Social Security Administration and change the direct deposit bank information. Suddenly, victims stop receiving Social Security checks because the money is being deposited into the thieve’s bank account.

What’s the latest Social Security Scam?

In the latest scam, thieves are calling Social Security recipients and promising them an increase in benefits if they verify their information. According to the U.S. Office of the Inspector General:

Scam artists target Social Security recipients and pretend to be employees of the Social Security Administration (SSA). Thieves tell victims they are “due for a 1.7 percent cost-of-living adjustment increase in benefit.” Victims just need to verify personal information including SSN, name, date of birth, parents’ name, etc. over the phone. Then, with this information in hand, scam artists contact the official Social Security Administration. Next, they change the victim’s direct deposit banking information to reroute Social Security checks to the scammer’s bank.

Signs this is a scam

It can be hard to know what is real and what is a scam these days. With modern technology making it easier than ever for hackers to access your personal information it is easy to become a target.

The Social Security Administration will (Rarely) Call You

One tell-tale sign that this is a scam is the fact that these scam artists are calling you and asking you to verify your information over the phone. As with most government entities, the SSA will rarely call you over the phone. The SSA will mail you a letter requesting action. They will only occasionally call you over the phone after they have sent you that letter.

If the SSA does, in fact, call you they will not ask you to verify your information over the phone. They may ask you to verify information if you call them on their toll-free phone number 1 (800) 772-1213 but they will not contact you to verify your information over the phone.

If you’re a Victim

If you were targeted by these scam artists but did not provide them with your personal information, file a report with the Office of the Inspector General. Make sure to keep your guard up. If you do notice anything suspicious with any of your Social Security checks or bank accounts, contact your local authorities.

If You’re a Victim of this Scam

The first thing you should do is file a report with the Office of the Inspector General. Next, contact the SSA and inform them of what happened. You will want to make sure scammers haven’t changed your bank account and contact information. If they have you will need to change that immediately. Once thieves were able to have one or many checks deposited into their own bank accounts it is highly unlikely you will ever see that money again.

Top 3 Apps to Save Money on Flights

Posted on by kaitlyntessmer

And as we all know, holidays can be some of the most expensive times to travel so using apps with algorithms that have figured out airlines pricing schedules are really going to help you save, especially during those high traffic times, like holidays. No longer do you have to spend your precious time comparing airline to airline hoping you find the best deal. These 3 apps will make sure you save major money on your next flight.

Hopper

So the first app that I always use when I’m looking to book travel is the Hopper app. The Hopper app has actually figured out the airline algorithm for pricing tickets. Hopper will tell you when to wait or buy your tickets.

Log in to the app, type in where you are traveling from and where you want to go, the dates, and then from there, you can set an alert to let you know when prices are going to go up or down. Easy as that. You don’t have to check flight every day and manually see when prices are going up or down, hopper takes care of that for you.

With Hopper, you can even exclude flight routes that have long layovers, Basic Economy fares or choose to only receive alerts for nonstop flights. You can even see how much of a difference you would end up paying for a nonstop route vs. a route with stops.

I get alerts from Hopper every day for my upcoming trips that I’m going to book and it lets me know when it’s time for me to book my ticket. I actually just came back from Cancun a couple of weeks ago and scored an awesome deal on nonstop flights to Cancun. I ended up saving about $300 on them by setting an alert on the Hopper app to let me know when the prices were going to drop.

Hopper is by far my favorite app for booking travel way in advance. I would recommend downloading it right away and setting alerts for your holiday travel now so that you can score the best deal on Thanksgiving and Christmas flights. According to Hopper, I should purchase my Christmas tickets in the next few weeks.

SkipLagged

My second favorite app that I always use when Iook to travel is the SkipLagged app. If you’re willing to live on the edge, travel light (just a carry-on) and buy separate one-way tickets, you NEED to check out SkipLagged.

SkipLagged uses a little trick the airline industry calls “hidden city ticketing”. Hidden city ticketing is an airline loophole where you buy a ticket and instead of going to the end destination, you get off the plane and exit the airport at the layover city. This is completely legal but airlines hate this loophole, for obvious reasons.

To give you a better example, let’s say you want to go from San Francisco to
Los Angeles. You look at ticket prices and see that flights are $200. You check SkipLagged and see that a trip from San Francisco to San Diego with a layover in Los Angles is only $100. With SkipLagged you would book that San Francisco to San Diego route and instead of switching planes in Los Angles, you would just walk out of the airport.

A couple of things to keep in mind when booking with SkipLagged, these warnings are directly from SkipLagged’s website and they ensure that you have read them and agree to the terms before completing your booking.

  • You have to pack light which means only bringing a carry-on. Remember, you’re not actually going to your final destination, only your layover city. If you check your bag, it’ll end up in your final destination, not your layover destination.
  • You have to book a one-way ticket. Airlines have the right to cancel your return trip if they find out that you didn’t actually go to your final destination. If you will need round-trip tickets and still want to use SkipLagged, buy two separate one-way tickets.

Skyscanner

My third favorite app is the Skyscanner app. A lot of people have heard of Skyscanner, it’s a really great database of airline tickets and like all other websites airline search databases, you type in where you’re coming from, where you’re going, and the dates. And with that, if you have specific flights that you want to take, you can set alerts from there and it will alert you when the price of that ticket is either going to rise of drop so you know exactly you should buy.

The best feature of the Skyscanner app is the “anywhere” feature. If you love to travel for the sake of visiting new places and don’t have a preference of where you want to go check out the “anywhere” feature of Skyscanner’s app. This feature will show you the best domestic and international deals available right now. Check it out and indulge your inner wanderlust.

Top 5 Reasons Your Credit Card Application Was Rejected

Posted on by kaitlyntessmer

Getting denied for a credit card sucks and can really be a blow to your confidence. I was recently denied for the Citi Double Cash Credit Card and didn’t understand why Citi Bank would deny my credit card application. After doing a lot of research I discovered why my credit card application was rejected and put together the top 5 reasons your credit card application was denied. I hope you find these tips for reversing your credit card application denial helpful and are able to implement them and get approved for the credit card you want!

You Didn’t Fill Out The Application Correctly

The first reason your application may be denied is if you didn’t fill it out correctly. If you forgot your Social Security number or you made a typo in that, your application is probably going to be automatically get denied. The great thing is that if you get denied for either misfiling out the application or because your credit is frozen, it’s a super easy fix, all you have to do is call the company that you applied. If you applied for a Citi credit card, call Citi up, explain to them what happened, tell them you were surprised by the denial and they’ll usually explain to you that there was some sort of error on your application. They can go ahead and process it again and hopefully get you that approval.

You Don’t Earn Enough Money

The second reason you may be denied that credit card is because you don’t earn enough money. Most credit card companies don’t list what the minimum income that they require but if a $500 credit limit is going to put you in major debt, it’s likely you’re not earning enough money to be able to afford that credit card. Although credit card companies prefer for you to carry a small balance (so they can charge you interest) they want to avoid having you default. If the credit card company feels you may have trouble paying back the balance it makes you a pretty big risk and they will likely deny your credit card application.

The best thing you can do if you get denied because you don’t earn enough income is to wait, get a second job or a promotion or some extra way to earn money and then go ahead and apply again once your income is higher.

You Have a Negative Mark on Your Credit Report

The third reason your credit card application may have been denied is because you have something negative on your credit report. So if you’re denied because you have a negative mark on your credit report, the first thing that you need to do is to go ahead and check your credit reports. You can actually get a free report from each of the 3 credit bureaus: Equifax, Experian, and Transunion every single year (thank you federal government for making this a law!).

To access your free credit report,  go to annualcreditreport.com and request your free report. Keep in mind, you only get one free report every year and they don’t show your actual credit score on those reports. If you want to see your actual credit score, you have to pay for that with each of the 3 bureaus. Getting your free credit report will show you what credit card companies are seeing when they pull your report and will show you if there are any negative marks.

If you’re denied because you have something negative on your credit report, you can call the credit card company’s reconsideration line. Every major credit card company has a reconsideration line and you can call them up and try to explain the negative mark and see if they will go ahead and approve your application after talking with you.

Credit Card Reconsideration Lines (Phone Numbers)

American Express Reconsideration Phone Number

1 (877) 399-3083

Bank Of America Reconsideration Phone Number

1 (866) 458-8805

Barclay’s Reconsideration Phone Number

1 (888) 232-0780

Capital One Reconsideration Phone Number

1 (800) 625-7866

Chase Bank Reconsideration Phone Number

1 (888) 270-2127

Citi Bank Reconsideration Phone Number

1 (800) 695-5171

Discover Reconsideration Phone Number

1 (888) 676-3695

US Bank Reconsideration Phone Number

1 (800) 947-1444

Wells Fargo Reconsideration Phone Number

1 (866) 412-5956

You Have Too Much Debt

The fourth reason your credit card application may have been denied was because you have too much debt. When a credit card company looks into you and decides whether or not they want to extend you credit they’ll look to see how much available credit you have and how much of that credit you’re actually using. If you have $10,000 of available credit and you’re using $5,000 of it, your utilization ratio is 50% and that’s a really high ratio for credit card companies. Most credit card companies want to see your utilization ratio below 20%.

If you’re denied because your utilization ratio is too high and you have too much debt; wait, pay off your debt, and apply again. One thing to note, credit card companies keep your application open for about 30 days. If you’re able to pay off your debt to get your utilization ratio below 20%, call the credit card company’s reconsideration line and see if they will reconsider your application without requiring you to apply again.

Your Credit History Isn’t Long Enough

The fifth reason your credit card application may have been denied was because your credit history isn’t long enough. If you’re just starting out and you’ve never had any credit cards or loans, car loans, student loans before you have zero credit history and that’s really worrisome to these credit card companies. You’re a really high risk because credit card companies don’t know how you’re going to behave.

It is nearly impossible to have a credit card company reconsider your application if you were denied because your credit history isn’t long enough. Trust me, I’ve tried. You’ll have to apply for an easier to obtain a credit card.

If you’re a student, student credit cards are pretty easy to come by and that could be a great option for you. These days student credit cards even offer you cash back and actually have pretty good rewards. Check out ValuePenguin’s list of the best credit cards for students. If you’re not a student and you still have no credit history or your credit history isn’t long enough, try looking into a secured credit card. Check out NerdWallet’s list of the best-secured credit cards of 2017.

Justfly.com Review: It’s a scam

Posted on by kaitlyntessmer

Summer is here which means BBQs, beach days, and for many a vacation. But don’t let your vacation turn into a nightmare, protect yourself from travel scams, like Justfly.com when you’re booking vacation travel.

What is Justfly.com?

In a nutshell, Justfly.com is a discount airline booking website. According to the About Us section of their website, “Justfly was created by a team of technological experts with many years of experience in the travel industry. We believe our platform is second to none when it comes to issuing low-cost tickets efficiently in a user-friendly environment. We have partnered with over 400 airlines to deliver the best prices possible to our customers. Our team of travel agents is ready to assist you on the phone you can rest assured we’re with you every step of the way to make sure your vacation is flawless.”

This all sounds great, after all, who doesn’t want to get the best deal? So what’s the problem with Justfly? According to the BBB, and several financial experts Justfly.com is a major scam and should be avoided at all costs.

Why is Justfly a Scam?

It’s hard to say if the issues many have been having with Justfly are due to unintentional mistakes or if the company is intentionally trying to scam hardworking Americans out of their vacation savings. Considering the BBB has received 872 complaints in the past 3 years, we have to lean towards the latter.

Lack of Customer Service

Most people don’t hold strong opinions of a company until they have to deal with the company’s customer service. How customer service handles a situation will often make or break your view of that company. Considering 676 of the 872 Justfly.com complaints are due to customer service issues, it’s safe to say you won’t have an easy or pleasant time dealing with Jusfly’s customer service. What kinds of issues have people reported having with Justfly’s customer service?

  • Mistakes being made by booking agents, such as the name and spelling of the passenger’s name. Adjustments to the booking result in significant fees to the consumer from both the airline and justfly.com
  • Not receiving email booking confirmations as promised
  • Being on hold for excessive periods of time when calling into the customer service department. Some people have even reported being hung up on

Keep in mind, these are only some of the complaints that people have reported with Jusfly’s customer service. There are likely many more issues that are going unreported.

Hidden and Added Fees

Even worse than a company with terrible customer service is a company that charges you more than they say they will. Pair that with an awful customer service experience and you’ve got a recipe for disaster. Beware: customers have reported the following complaints:

  • Differences in the quoted price as opposed to what is actually charged on the consumer’s credit card after booking
  • Being charged more for a cancellation fee than was originally quoted

Other people have said that Justfly’s “price guarantee” insurance has been added onto their final bill without them approving it.

No One Knows Where They’re Located

As reported on the BBB’s website, Justfly.com provides an address in Summerside, Prince Edward Island, but BBB has confirmed that the business is not actually located there and mail for Justfly.com is being forwarded to an as-yet-unknown location. Having a business located in an unknown location screams scam to us at Living Well Publications.

What About FlightHub?

According to the Better Business Bureau, FlightHub and Justfly are owned by the same parent company. With this in mind, we recommend avoiding both websites until they get their act together.

How to protect yourself

Armed with this information, what can you do to protect yourself from scams like this? First of all, never book a flight with Justfly.com or Flighthub.com,  but that should be obvious at this point, so what else can you do?

Book with a Credit Card

When you book your travel with a credit card you have more rights than if you book with a debit card. If you find yourself in a situation where you are noticing added fees and charges, call your credit card company and dispute the charges. Many credit card companies will be on your side when it comes to unwelcome charges from these sites. The beauty of credit card companies is that they have the funds and infrastructure to refund your fraudulent charges and prosecute these companies themselves. This saves you time, money, and hassle.

If a website doesn’t allow you to book with a credit card, run for the hills! It’s 2017, any legitimate company is going to accept and welcome payments by credit cards. This goes without saying, any company that wants you to wire money with Western Union, or a similar company, to secure your trip is most probably a scam and should be avoided at all costs.

Check the Airline’s Website

Websites that pull price and flight information from multiple like Orbitz and Kayak are great to help you determine which airline to book your travel with. However, often times these sites show you the lowest price that the airline charges and that price is often the same as what airlines charge directly on their websites.

So after you’ve decided on a particular flight with an airline, head over to that airline’s website to see what price they are charging and book with the airline directly if the price is the same or at least within the ballpark. You’ll have more rights and often receive better customer service than if you book with a 3rd party website.

Consider Fees and Extras

A lot of times these discount websites will lure you in with an incredibly discounted price but that sticker price isn’t what you pay. If you find that the price advertised and the price at checkout are different consider: taxes, baggage fees, seat selection fees, etc. A lot of times 3rd party companies will advertise the base cost for booking the flight and not include taxes and fees associated with purchasing a plane ticket. When you book with an airline directly, 9 times out of 10 they will include taxes and fees in their advertised price. Plus you have the peace and mind that you are not getting scammed.

 

Happy booking! If you’ve had any experience with Jusfly or FlightHub, comment below and share your opinon.

Mystery Shopping 101

Posted on by kaitlyntessmer

Getting a second job, or a side hustle is a great way to put a little extra cash in your wallet. One of the easiest side hustles out there is mystery shopping. Yes, mystery shopping is a real thing and yes you can earn upwards of $100/month. Sounds like a great deal, right? Before you get started there are a few things you should know to make sure you don't get ripped off because there are people who will try to scam you.

Anyone can become a mystery shopper

Yes, that's right, to sign up with most companies you just need to be at least 18 and provide a Social Security number (for tax purposes). That's it. For each company you sign up with, you will answer a few questions about your demographic and lifestyle. Key questions include: where you live, how far you are willing to travel, how old you are, if you have kids, and if you have a club membership (like Costco or Sams Club). The way you answer these questions will help determine the types of shops you are offered. For example, if you are in your 20s you will likely be offered a lot of shops in which companies want to make sure their employees are checking your ID before they serve you alcohol. If you are a parent, your shops will likely revolve around shopping for kids items. You get the idea.

Choose a reputable company

There are a lot of mystery shopping companies out there. Some are better than others when it comes to customer service, payments, and the variety of shops. Keep in mind that while many of these companies are nation-wide some of them have a stronger influence in the northeast while others have a strong presence on the west coast. Do your research. Sign up with and try a few companies out to see which one you prefer. A few that we have tried are Confero and Intelli-shop.

Learn to spot a scam

You will need to pay for items upfront and be reimbursed when you are paid for the shop (typically within 1-2 months). So keep that upfront cost in mind when you're signing up for mystery shops. With that in mind, here are a few things red flags that scream SCAM:

  • Don't pay to become a mystery shopper. Any reputable mystery shopping company will allow you to join for free. Any company that is asking you to pay before they allow you to complete a shop is a red flag.
  • Don't wire money. Ever. You've probably heard about people who sign up to become mystery shoppers and their first assignment is to evaluate Western Union. They receive a check with instructions to deposit the money in their account and then withdraw that amount in cash and transfer it to a third party. The check ends up being fake and the mystery shopper loses a lot of money.
  • Don't get certified. This isn't a scam, per say, but it isn't necessary and is often a waste of money. Anyone can become a mystery shopper and you don't need a certification. Save your $100 and do a few easy mystery shops. This will boost your shopper rating which will open up more lucrative shops (the same thing a certification will do).

Brace your inbox

You are going to get a lot of emails. When we say a lot, we mean between 50-100 per day depending on how many companies you register with. You'll want to create a separate email account just for your mystery shopping emails. You could also turn off your notification settings in your mystery shopping accounts to reduce the number of emails you receive.

Be honest and don't exaggerate

Companies are paying you for your honest review. They're not paying for you to lie or stretch the truth. Make sure you read the instructions about the shop before you complete it. This will help you to know what to look for. It helps to type out notes on your smartphone before the shop and review them before you go into the store. As you notice the cleanliness of the store and the name of the person you interacted with, take notes on your phone, it will look like you're texting but will help you when you're filling out your report.

Final thoughts

Mystery shopping is a great way to bring in extra cash. It doesn't require a lot of money upfront and anyone can get started. Be safe and only shop with companies that have a good reputation. Let us know what your mystery shopping experience has been like in the comments below.

Insurance Fraud: How to Protect Yourself

Posted on by kaitlyntessmer

In 2017 it is more important than ever to double check your medical bills after procedures and hospitalizations. A 2014 TransUnion Health Care survey showed that 54% of people are confused by their medical bills and 62% are confused by out of pocket costs. A growing number of people are being ripped off at the doctor, whether that is happening intentionally or unintentionally is up for debate. This post will give you tips to prevent insurance fraud and avoid getting ripped off when you go to the doctor’s office.

What is insurance fraud?

At a high level, insurance fraud is when someone provides false information to an insurance company to receive a higher payout. In the healthcare sector, it often happens with inflated billing. That means charging for exams or procedures that never happened or miscoding exams and procedures. Each procedure and exam at the doctor’s office, ER, and the hospital has a specific code and is billed differently. For example, a visit to your general practitioner (GP) is going to be billed and charged differently than a visit to a specialist, like a Dermatologist.

Can I be a victim of fraud?

The short answer is yes, anyone who visits the doctor can be a victim. In fact, it is a fairly common occurrence. Under the Affordable Care Act (Obamacare) several exams and procedures are covered under Preventive Care. This means that when billed correctly, your insurance will cover the procedures and exams completely and you won’t have to pay out of pocket.

It happened to me

Last year I went in for a routine Well Woman visit and my doctor performed a routine exam and Pap Smear. A month later I received a bill for a few hundred dollars for the exam and test. I was wrongly charged for these procedures and they should have been covered in full by my insurance, without me having to pay a copay.

After I received the bill I called my insurance company and explained the situation and they agreed that the bill should be covered under preventive care. Unfortunately, I had to take matters into my own hands and call the doctor’s office and again explain the situation, that I was misbilled. The doctor’s office had agreed that they had miscoded my visit and procedure. The billing assistant edited the bill and resubmitted it to my insurance company. This is where I hoped the story would end.Unfortunately, I wasn’t that lucky. My insurance company received the bill again however instead of editing a past bill, the insurance company thought the doctor’s office was trying to submit the exact bill again. The insurance company didn’t realize that it was indeed a new bill with the new codes. So, my insurance company ended up denying that bill and again I was billed by my doctor’s office for the balance of a few hundred dollars. I had to call the doctor’s office again as well as my insurance company to get this taken care of. Unfortunately, it ended up taking 6 months to ultimately have my insurance company except for the newly coded bill.

Unfortunately, I wasn’t that lucky. My insurance company received the bill again however instead of editing a past bill, the insurance company thought the doctor’s office was trying to submit the exact bill again. The insurance company didn’t realize that it was indeed a new bill with the new codes. So, my insurance company ended up denying that bill and again I was billed by my doctor’s office for the balance of a few hundred dollars. I had to call the doctor’s office again as well as my insurance company to get this taken care of. Unfortunately, it ended up taking 6 months to ultimately have my insurance company except for the newly coded bill.

Key takeaways

The first step towards protecting yourself against insurance fraud is making sure that you understand your insurance coverage and plan. When you understand your plan you’ll know what’s covered and what’s not covered especially when it comes to preventative care. So, take the time to read through your insurance documents and be sure to ask your HR specialist at work if you have questions on what’s covered and what’s not. You can also call your insurance company, from my experience their customer service team is usually pretty helpful and from what I found and will answer thoroughly your questions regarding your plan.

The next step is to make sure you review all of your bills from the doctor to ensure that your being charged properly and things are being properly coded. It only takes a few minutes to pick up the phone and call your doctor’s office to ask them a question if something looks off to you. The small amount of time you take to learn and understand your coverage and bills could end up saving you hundreds, if not thousands of dollars throughout your lifetime.