Edit: Now they let you bring your own phone. Also receiving calls has been terrible.
Are you an iPhone user? Well, I may have a good phone plan for you. Previously, I wrote about phone plans that were good deals and I still think those are good choices. However, something new has arisen since then that may be worth looking at if you are an iPhone user. My wife an I are in America for the summer and she was living on wifi until I found the Virgin Mobile USA Inner Circle.
What’s Inner Circle
Virgin Mobile USA has gone to all iPhones and if you join before the end of July you can get a year of service for $1. You have to buy a new phone and port your number, but that is a good deal for an unlimited plan. This could be a great deal because if you pay even a low $30 a month you can save $360 less the cost of the phone. The downside is that after a year it is $50 a month, at which point I will move on to the next deal I find.
You’ll need to buy a phone from them or the Apple store, but since Virgin Mobile has good deals you might as well buy from them. You can get a new iPhone SE for $280, and iPhone 6 for $320, all the way up to $970 for iPhone 7 Plus 256GB. This is a much better deal that Freedompop which charges $390 for a refurbished iPhone 6. Plus you can get the phone unlocked. It is unclear exactly when, after 14 days or after 12 months, but either way you will have a very low bill.
Switching phones can be a bit of a pain, but think of an amount of money that you would do it for. If you could save $200 to go through the pain would you? For us that was an easy calculation, rather than $30 a month with the T-mobile Walmart plan, we bought an iPhone 6 32GB and sold our iPhone 6 16GB. The savings were $360 (plan fee) – $320 (new phone) – $1 (new plan) + $190 (sold old phone) = $219, but most people will probably save even more. Finally, it was good to do because now we are down to three phones.
I hope you got a lot of good ideas from my last article and won’t be spending much money on airfares in the future. Being able to travel for only a small amount of money can be life changing. However, even with free flights you need a place to stay and that’s where hotel points come in. If you are going to visit and stay with a friend then you are all set and you can stick to earning airline miles and cash back, however if you want to venture to new places, let’s see how we can go about it.
What are hotel points?
Hotel points are a reward system that entices you to be loyal to a hotel. I find hotel points a bit simpler than airline miles because the rules are more straight forward. You collect them each time you stay at a property and redeem them for hotel stays. Just like airline miles you can earn a huge amount through a credit card sign up bonuses.
Choosing a program
I chose Marriott at first and later added Starwood which worked out well because now they are merged and you can transfer points between the programs. Other programs include Hyatt, Hilton, Best Western, Choice, IHG, and some other smaller ones. Each program has its own number of points you need to redeem for a hotel which will be a smaller amount for less high end properties and more for properties that are in good locations as well as the luxury ones. For instance, Marriott redemptions run from 7,500 points for Category 1 properties up to 45,000 a night for Category 9 properties.
I’m going to start a series on traveling for nearly nothing. I hear lots of people say how they would like to travel but are often held back because it costs a lot. And indeed, it often does, so let’s find ways to reduce the costs. Short of finding money on the ground, the best way is through accumulating points. It is crazy to think I only started collecting points after I got married. My parents did set me up with a United and American accounts back in the day, but I think all I got were some free magazines occasionally. In fact, a few months before I took a trip to Singapore on China Airlines and didn’t bother earning the points for it. Well, it isn’t that hard and I’ll explain it to you as best as I can so you get to traveling for close to free.
What are airline miles?
Airline miles are a type of reward system that entices you to be loyal to an airline or an alliance. Each program has their own rules for how to earn miles and how to redeem them. But almost always you can earn them by flying with the airline or its partners and you can redeem them to get a ticket. Airline rules will vary on how much you earn for each flight as some are based on the distance you fly, but now most are based on how much you spend, your status in the program, and the class of service you are flying. The amount of miles needed for a free flight vary by the region you start from and are going to and each airline sets their own number of points.
Here is an example of the chart for American Airlines if you are flying from the lower 48 states in economy class.
You’ll notice that there are up to four different prices just for economy class. That is because the number of miles to redeem for a ticket also varies upon when you are flying. If you want to fly right before holidays you’ll have to use more points.
Didn’t think beverages were so powerful did you? Well, they have the power to destroy net worth, so I think they are rightfully called Personal Finance Weapons of Mass Destruction. So get someone to hold your beer while you read this article. Let’s go!
While on the trip in New York City I bought a big bottle of water for $1.80. Water is definitely something that we shouldn’t be buying. It is practically free, just open the facet. However, without preparation I had to pay. If you’re in America, practically all the water from the sink is potable, so take advantage by filling a bottle up and taking it around. Cities have made it even easier by providing drinking fountains. If you are drinking from water bottles you are spending money you don’t need to.
You mean soft drinks? Yeah, that is a ridiculous way to call them, softer than pure acid I suppose. Despite this negative take on the drink I must admit that occasionally I drink them. Often it will be when I am at a party and it is available for free. I probably have two to three servings a month. If you are drinking soda regularly, I’d advise stopping to save money and lots of sugar.
This weekend I took a group of 24 people to New York City. I charged a commission and got to go for free, NOT. It would have been fair, but I paid along with all my classmates, so our incentives for a cheap trip were aligned. So of course we headed to one of the most expensive cities, but with my skills it wasn’t going to cost a fortune.
We were going for the budget trip, so the cheapest ride was the bus. The ticket to get from Boston to NYC was $35, but the return trip only cost $15. By not buying a roundtrip ticket we were able to save $20. Alternatives were the train or plane, but that probably would have ended up saving an hour or two total.
We stayed at a hostel in Chinatown. The best rooms were the ones with 4 bunks and a bathroom, but I booked all of those so some people had to stay in double beds. The double beds were only $45 a person per night.
I only stayed with the group for one night because one night we used a Ritz-Carlton free night certificate. This was one of three that came as a sign up bonus for the Ritz credit card. The hotel was nice, but I wouldn’t spend $350 for a hotel.
Right now I’m studying at MIT which is a really great experience. When we arrived my program provided us with $750 in TechCash. This currency can be used for food at MIT, at the student store, and a few other places. For one month, a $750 allowance is quite a lot. I felt quite rich and was eating many $10 prepackaged sushi boxes. I was also able to use the money at a coop grocery store. I went kind of crazy there buying all sorts of groceries and totaled around $100. I bought packages of nuts, figs, and even Naked Juice (with a coupon). This put my first week total spend at $150, but at this rate I would still have $150 left over at the end, so I purchased a sweatshirt.
After a week, someone figured out that you can buy gift cards at the student store! I had seen the rack of gift cards at the student store, but my experience in gift cards had taught me that stores don’t accept gift cards to purchase gift cards. However, this person went for it and had success. Furthermore, it was possible to buy a Visa gift card. As soon as I heard this was possible I went to the student store and bought a $500 gift card and paid $504.95 using my TechCash. Then an interesting thing happened. Even though I was better off (having a Visa to spend anywhere) I didn’t feel as rich. I no longer wanted to spend on luxuries like Turkish figs.
I just bought my wife a pair of Nike Cortez shoes for $80! Of course the story doesn’t end there, but as you can imagine I’m not one to shell out a bunch of money for shoes. In fact, my last pair I got for $35 worth of Sears points. So what caused this purchase? Airline miles, it was their fault! It was alright because my wife has been telling me that she was ready for a new pair of these shoes. However, this week is triple miles on British Airways shopping portal. Overstock.com was giving 21 points per dollar, so I’ll get 1,680 which is pretty good. Furthermore, I used 3 $25 gift cards I got using $60 of Discover rewards. So $64.90 with $16.80 worth a points, not terrible for some fancy pants shoes.
I love airline miles and they have enabled me to travel all over for so little cash. I went to Taiwan on miles, came to and will move from Lisbon with them, and just dropped 400,000 miles on a future trip, to be revealed later. Yet, we still have 750,000 of them. I think I need to as good at using them as I am collecting them.
Quick, how many screens do you have? How many things do you own that need charging? Guess, then start to catalog and I bet you guessed a smaller number than what you own. It can be pretty crazy how many devices we end up with. There are wires running everywhere and we have to make sure we have the right charger. Today you can see an inventory of our electronics and I can share the stories of how we acquired them.
S0ny a6000: Purchased the body used for $375 and a used fixed lens for $270 both on eBay.
The camera was a killer deal and only had a shutter count of 373. The camera is for my wife because I’m fine with taking pictures from my phone. In fact, I thought I was cool back when I had a 1.3MP phone.
iPhone 6: Bought this used on eBay for around $400 in late 2015.
Amazon Fire Phone: Brand new $125 including a year of Amazon Prime from eBay.
Galaxy Note 2: New for $99 from Freedompop.
$20 Android Phone: This was an add on in cart option when I was buying the Galaxy Note 2, I went for it.
Four phones for two people may seem excessive, but the total cost was under $650 which you can’t even get a new iPhone for, especially the rumored $1000+ iPhone 8. Each Android phone was several generations behind the current one. In fact, I got the Note 2 when the Note 6 was out. My wife had an iPhone 5C before this but due to an extremely lucrative Discover card deal WE NEEDED an iPhone. It was 20% cashback on purchases with Apple Pay.
The iPhone and Fire phone get used abroad and the other two are maintaining our numbers and collecting voicemails and text messages. Our phone plan in Europe is $4 a week per phone and on Freedompop it is $2.49 a month.
I originally started this article a year ago, but yesterday my classmate who used to market Gillette razors mentioned that some of their marketing efforts were geared toward getting people to trade up to more expensive products. Well, time to share my thoughts on shaving cause if you just listen to commercials you’ll end up with a half-dozen bladed device with sonic pulsing action that has a mirror to see behind you, doubles as a weapon, and triples as a flashlight. But, we don’t need that, or do we?
Disposable, reusable, or subscription
Disposable razors are used and thrown away. They are cheap, but not so cheap that you should buy them. I also don’t like throwing away so much stuff. Instead of managing your purchases, there are subscription services like Dollar Shave Club. I don’t see any use on having someone else dictate how fast you replace your blades. Replace them as you need and stock up when blades are cheap.
What I’ve tried
My current razor is a Gillette Mach 3. I would recommend it and see if you can get blades near or under a $1 a piece. Amazon sometimes has good deals, but beware of Costco, despite seeming like a good deal with a large quantity the blades can often be as much as $2 each. Introduced in 1998, the Mach 3 is still a great product and it better be because it cost $750 million in R&D. Someone please tell me how is this possible? Maybe they had to test it on animals first and in order to do so they needed to train monkeys how to shave. However, prior to that they would have needed specialized animal trainers as well as geneticists that could modify monkey DNA so that monkeys could grow facial hair.
I recently rented a car for 3 days to go to the south of Portugal. The price was $8.77 total. That was the second cheapest option because they also had a $6 one. One thing that was additional was the collision damage waiver which reduces or eliminates what you have to pay in the case of an accident. However, there are many credit cards that have this benefit. Two that I have are the SPG card and the Chase Sapphire Preferred (CSP).
Check the fine print and exclusions
Both had similar wording, but the SPG terms said that you have to be a permanent resident of the US. I think I am, but since I am in Lisbon for school at the moment I was not sure. However, I read the CSP terms and they did not include such language so I booked with that card.
The booking conditions said you do not need an international driver’s permit if your license is in the Roman alphabet, but you would need one if you are from USA or Canada. However, I had read information that you wouldn’t need one. So I called to make sure and they said just my license would be fine.
What I did neglect to read was there was a $25 fee for a full gas tank. Fortunately it was only $25. However it brought my rental to $34, not bad, but maybe not as good as I could have got.
A couple years ago I came to the realization that robots will start to displace humans faster than we can create new jobs for humans. In fact, it may already be happening. This is a highly debated topic, so don’t take my word for it. If you remember I spoke of basic income when I said Uber and Lyft are playing for the long run when they can replace all the drivers with automated cars. Well this article is going to be scary because the future often is, but hopefully you will be enlightened. Rise of the Robots is a book about how robots will replace us at such a rate that we will have to rethink our relationship with work. Many manufacturing jobs have been eliminated by robots, but so many other jobs we once considered safe are going away as well.
Articles are already being written by robots. One company, Quill provides services to automate articles. It can easily write articles about sports, take in information to make reports, and likely is writing things we already read, but believe are written by a human. One example would be a report for an earthquake. A human would need to be present to feel the earthquake, wake up, look up details, and then quickly publish something. A computer can always be tracking the earth’s vibrations and once a threshold is passed it can submit an article with graphs and be the first one to report it.
You may have heard that the majority of stock transactions are performed by high frequency traders. These are algorithms programmed to profit by making split second decisions. Fractions of a second are so valuable that the firms have tried to get as close to the exchanges as possible. The algorithms compete with each other and even try to deceive each other to the point where what they are doing is incomprehensible to humans.
Tax day came late this year, April 18th. Fortunately, I have submitted everything. And there was a whole lot to submit this year with earnings from Lyft, internet reselling, and bank bonuses. One new thing this year was that I was able to itemize deductions which was another form but reduced my taxes.
How donations work
People sometimes say ridiculous things like of course she donates, she can write it off on her taxes. Well, what does this mean? If you donate $1 do you save $1? Obviously not, otherwise we could all donate our entire incomes and still have the same amount of money. What the donation does is lower your taxable income. Say your income was $80,000 and your tax bracket is 20%. If you donate $1 then your taxes will go down by 20 cents. Therefore it “costs” you 80 cents to donate a dollar. In some people’s extreme tax situations they may be at a 50% effective rate and therefore donating $1 “costs” 50 cents. Donating is still coming out of your pocket and is not done selfishly.
Tax mechanics of donations
Donations are considered under itemized deductions. The government allows you to take either itemized or a standard deduction. The standard deduction is $6,300 per person. So even if you donated $6,000 you would still take the standard deduction and therefore each $1 is “costing” you $1. However, there are many things also included in the itemized deduction such as mortgage interest. If you have a sizable mortgage then you may be better off with itemized deductions. Either way, calculate both ways and take the larger amount.
Cash is obviously deductible, but so is giving stuff away. Last year we donated so much stuff to the Goodwill because we moved at least twice including to Taiwan and Lisbon. One good thing about moving is you get rid of a ton of stuff, sell some, and then throw out your back moving everything else. Having a Kindle is great because I can stop collecting books.
Donations may not help reduce your taxes, but they will likely help the organization you give to. One such group I support is Compassion which helps poor children. I even get to write to and receive letters from to the child in Peru I sponsor. However, whatever organization you plan to give to please research so you know how your gift will be used. As an American I have so much and feel that sharing the abundance with others much less fortunate is a great use of my money.