Miscellaneous

Buy it Nice, or Buy it Twice: Save Money by not Going Cheap

January 14, 2020 By Trey LaRocca Leave a Comment

Here at Savingadvice, we know that cheaper isn’t always better. This may be a surprise, given most of our subject matter. Regardless, we know that there are some things that deserve a little more attention to quality than price. This balance is summed up by my favorite word: Value. Value is a principal that is built by comparing the quality of something, how useful it is to you, and how much it will cost. If you can snag something great for cheap, awesome; the reality is, though, that there are some items that make this pretty difficult. So in order to get the best value out of your purchases, here are 3 times when you should buy it nice, or buy it twice!

Cars and Trucks

First things first, do not read this as me telling you to go out and buy a new luxury car. New cars are a terrible value proposition, and luxury vehicles can struggle in terms of reliability. What I am saying here is that just because you “don’t mind bumming it” with a beater, doesn’t mean you should grab that $600 Altima with a blown head gasket. Consider paying around $3000 for a real reliable mainstay. As far as new vehicles go, if you just have to have one, don’t buy from brands that are known to break just because they are cheap. I used to work for a car dealer, and across the street was a massive Kia dealership with constant “blowout” sales. Don’t fall for this trap, which is common with brands like Kia, Nissan, and Chrystler. All of these brands have one thing in common: Their cars do not last. If you have to buy a new car, spend a little more for a reputable brand with a good warranty to get the most out of your money.

Furniture

This one is a very circumstantial call. Now, I’m not saying I think cheap brands like Ikea aren’t as bad as everybody says they are. Although, I do think that there is merit in paying a little more if you plan to live in one place for a long time. That is where discretion comes in. If you are putting together a nice looking dorm for a couple years, go ahead and cheap out a little. On the other hand, if you plan to decorate your forever home, buy with quality in mind. Don’t be afraid to look on the used market for good prices,, just avoid anything that won’t last.

Your Home

Whether it be an apartment, a condo, or your first real house, be picky. Low prices aren’t always good prices, and low-end homes can come with high-end issues. Some even come with severe health risks when bugs, mold, or water damage end up in the mix. Do your research, and if you aren’t experienced in doing so, don’t assume you’ll tackle a dirt-cheap fixer-upper. If you can snag a home for way under value, and have enough money to fix all the major issues in the home, go for it. With that said, do not buy too early and skimp out on a home missing major quality-of-life factors like solid HVAC systems or appliances, assuming you’ll “get to it later.”

How to Turn Old Clothes Into Cash

January 7, 2020 By Trey LaRocca 2 Comments

Is your closet getting a little cramped? At a certain point, you just find yourself glancing into the cotton abyss and there are many things you haven’t worn in months. This becomes especially frustrating when you want to buy new clothes, but you just don’t have the space to store them. Even worse, when you have to move and you realize that boxes actually… cost MONEY? No, this just won’t do. So, we find ourselves needing to offload some clothes, and what kind of savers would we be if we didn’t find a few ways to turn old clothes into cash?

OfferUp

One of the best apps for selling anything, OfferUp provides a clean and simple interface to sell your personal belongings. while not specifically geared for clothes, it is one of the most widely used online resources on this list. The best part about OfferUp is that you probably already have the app on your phone. Putting up an ad is easy, quick, and the analytics are very consumable. Definitely the way to go if you are just trying to get rid of one or two higher-priced items.

Poshmark

Now we are into the clothing-focused secondhand apps. Poshmark is a favorite among most of the secondhand sellers I know, as you get to personalize your own online storefront. Not only this, but they make the shipping process super easy. After a purchase is made by a customer, you are sent a prepaid shipping label and you send it off. You can use Poshmark for all varieties of clothing (even menswear) and you’ll get plenty of attention. Poshmark is the perfect upfront fee-less option for somebody who is really trying to empty their closet. One major downside, though, is the 20% cut they take if you do sell something. As a result, it is usually a better idea to post higher-end items here as well.

thredUP

As far as online consignment goes, thredUP is an absolute titan. With thredUP, you can post items for sale, recycling, or even donation. They are the quickest way to get rid of all your clothes, and the process is very simple. You pay your two-dollar fee, receive your bag and prepaid shipping label, and send your clothes off to them. Just like that, you’ve freed up all the closet space you need. After about a month, you will find out exactly how much money thredUP will give you for the ability to resell your clothes. They won’t always be willing to sell everything you send, and you can pay $11 to take back those unwanted items, or just allow them to recycle them for you for free. So, if your primary goal is to get rid of a lot of clothes, and you don’t mind only taking in a bit of cash, thredUP is your play. With that said, keep in mind they only accept menswear as donations.

Unclaimed Airport Luggage Auction: How Does it Work?

December 20, 2019 By Trey LaRocca Leave a Comment

There are plenty of ways to snag cheap goods in bulk online, and the best spots tend to be the lesser known ones. One of the rare gems I have come across recently is the unclaimed airport luggage auction. As is probably obvious, these auctions involve airline luggage that has been left for too long and is subject to sale to make sure the airports no longer have to deal with holding it. Due to the pretty niche nature of these auctions, you can usually find better deals than in more general auctions. So, let’s dive into exactly how unclaimed airport luggage auctions work.

How do they choose luggage to auction?

I’m sure you’ve already gathered what the primary criteria for these auctions are: time. As far as how long it takes, timeframes change depending on the airline. Most often, the average sits around 21 days (three weeks) from the point at which it was left. Not much else goes into the consideration for unclaimed airport luggage auctions, as the quality/quantity of items is pretty random. Obviously, illegal items are not in consideration, nor are weapons due to the lack of licensed FFA dealers at airports. Other restrictions like tobacco products or knives vary by location.

How much money would I need?

As I said before, luggage auctions are relatively unknown. as a result, the prices don’t tend to get all that high. Barring unusual circumstances or obviously valuable pieces, prices tend to hang from $25-120 US. This is great news for bargain clothing shoppers, as the high end of that budget would probably land you a pair of jeans and a nice shirt or two from a discount store. Obviously, you’re saving money due to the gamble, but you never know what bonus treasures you will find. With financial risk being so low, it’s a reasonably worthy proposition.

How do I buy from these auctions?

Aside from pretty general auction sites like Public Surplus, auctioned luggage is primarily available in person. Using helpful sites like this one, you can track unclaimed airport luggage auctions and try your hand. You are typically going to the airport in question on a slower travel day, heading to a meeting place especially set up for the auction, and the rest is fairly simple. As with a typical auction, all sales are final and you usually want to have actual cash in hand for anything you want to purchase.

All in all, if you’re looking for something fun to do on a Sunday that involves a little bargain shopping, go for it! The risk here is low, the “lottery effect” is fun, and it gives you a good reason to get out of the house. Plus, most airports are near city centers, so go get yourself a bite to eat and have some fun at a low-cost unclaimed airport luggage auction!

Different Types of Payment Modes for E-commerce

February 20, 2019 By Susan Paige Leave a Comment

If you plan to set up an e-commerce business, you need to determine the type of payment method that will be best suited for your enterprise. While there are several options to choose from, some help maximize revenue gains.

Some of the different types of payment methods to choose from include:

Credit Cards: These are the most popular and common mode of payment used by customers when shopping online. An online vendor can gain access to an international market through the integration of a payment gateway on its website to be used for payments by credit cards. Credit cards are the most popular in North America, Europe, etc.

Mobile Payments: These are popular in nations that have low banking or credit card penetration, and are a swift solution for customers to make purchases from e-commerce sites. These are commonly used for dating sites, social media platforms, gaming portals, etc. The customer has the facility to make payments through an SMS facility. This is more commonly in use in the Asia Pacific region.

Bank Transfers: Those customers that enroll for Internet backing have the facility to a bank transfer when they make any purchase online. One of the most significant advantages of using a bank transfer is that every transaction requires the customer’s approval and authentication. Only after has the customer approved the transaction will the purchase take place.

E-wallets: E-wallets are growing in popularity and are used to store the customer’s funds and personal data, which are needed to make online purchases. Getting enrolled for an e-wallet is swift and simple, with the customer requiring submission of relevant information just once. Another benefit of an e-wallet is they can work in coordination with mobile wallets using smart technology like Near Field Communication (NFC) devices. All it needs is to tap on an available NFC terminal, and the funds get instantly transferred. Powercash is an excellent example of this type of technology that gains popularity across the US and Europe.

Prepaid Cards: These are used by customers that don’t have bank accounts or minors as an alternative payment method. They come in different values as per the customer’s needs. It’s a preferred mode of receiving payment among online gaming companies. They accept payments in the form of virtual currency that’s stored on prepaid cards and used for gaming transactions. One of the primary factors that influence the use of prepaid cards seems to be the age of the customers, above other factors as per research.

Direct Deposit: Customers make a direct deposit transaction when they send instructions to banks to transfer funds from the bank account to make an online payment. For this, the customer will update the banks as to when to disburse the payments and the sum from their bank account. Generally, a scheduled date for payments is fixed. Direct deposit types of payments are used for monthly subscription services likes Netflix, Amazon Prime, etc.

Cash: This is the most widely used for cash-on-delivery and the purchase of physical goods. While it’s convenient, it does have the risk of getting stolen, among other threats.

These are the various types of payment modes that can be used for e-commerce transactions. Understanding the niche audience, especially their location, can help to figure out the right kind of payment methods to adopt for your e-business.

Enabling Self-Indulgent Adult Children Is Not Good Parenting

February 1, 2019 By David G. Mitchell 117 Comments

About 10 years ago, a woman I know gave up a high paying job in Connecticut because she felt she could not handle the stress. She moved to rural Florida for a few years, lived with a guy she had met in high school in a house that her parents bought, and basically became substantially unemployable – not that she was looking for a real job. She held various low-level jobs until the economy started to slump.

Over the course of the past decade, she has broken off her relationship with her high school “friend” and grown increasingly dependent on her now 70-year-old parents. They started by paying for her home and then her health insurance. Finally, about six months ago, the parents sold the house and had their daughter move in with them. They now cover all of her insurance and living expenses, while she works to earn just enough money to go out with her friends.

The parents are not made of money. Indeed, the recent economic slump has made money a bit tight for them, as their investments have shrunk. Still, they do not stop paying for their daughter’s needs and many of her wants. (It is only recently that she gave up a $500 per month lease on a luxury car!) They even co-signed a loan for the daughter’s ex-boyfriend’s truck but, fortunately for them, he paid off the truck on his own.

When Did Children Stop Taking Care of Elderly Parents?

If we look back at history, the idea of elderly parents taking care of the financial needs of adult children is quite new. Until quite recently, just the opposite was true, and parents could hope for at least a modicum of support from grown children when the parents reached a certain age. Now, it seems that the number of adult children who are relying on parental support is growing by leaps and bounds.

Parents should not have to support adult children who are not disabled. Enabling self-indulgent and selfish behavior in adult children is not even good parenting. An adult who finds a better paying job will enjoy a higher standard of living. An adult who takes a pay cut will need to make sacrifices. Just because an adult wants to take a pay cut, however, should never mean that his or her parents should be the ones to make sacrifices.

Given our current economic climate, there is no justification for an adult child to live off of a parent’s largesse. Supporting an adult child is a very bad decision, especially if the parents do not know if they have sufficient funds to support the child for the rest of his or her life as well as themselves for the rest of their own lives.

If You Have Children, What Should You Do?

If you are a parent supporting an adult child, you cannot show junior to the door without a transition period, of course. Set up a plan so that you can wean your child off of your expense account. Give the child a period of time to find a job, to save some money and then to move out or to start paying their own rent. Offer emotional support and guidance, but cut off the ready flow of funds. Make being a dependant unpleasant, but don’t stop showing your love for the child.

Do you have any other advice for caring for adult children? Share it with us in the comments below!

Parents Need to Learn How to Not Spoil Children
Parents: Teach Your Children about Money Because Schools Won’t
Should Parents Pay for Their Children’s College Education?

(Photo courtesy of Ludovic Bertron)

Part 2: This Is How Much Timeshare Ownership Really Costs

October 12, 2018 By Tamila McDonald Leave a Comment

In 2017, timeshare sales volume hit $9.6 billion in the U.S. That’s a nearly 4 percent increase over 2016 and a 26 percent increase from 2013. But, even if people are buying into timeshares, it doesn’t mean they’re a great value. In fact, as a consumer, figuring out what a timeshare will cost can be a challenge. How much do timeshares cost? Many consumers will be surprised by the answer.

Understanding What You Are Buying

When you own a timeshare, you aren’t actually purchasing the property. Instead, you become one of many buyers who have a stake in the unit.

Timeshare owners buy “intervals” at a specific property. Each interval represents a certain amount of time, usually a week. If you purchase one interval, you “own” the property for one week each year. During that period, you can stay in the unit.

It’s important to note that not all units are sold in one-week intervals. In some cases, the interval is one-tenth or one-quarter of a year, but those aren’t nearly as common as those based on a week.

The Cost of a Timeshare Interval

For 2017, the average sale price of a timeshare interval was $22,180. In the vast majority of cases, this amount is due upfront.

However, not unlike buying a home with a mortgage, financing options are usually available. If that’s the route you choose, it’s important to understand that the interest rates are typically much higher than with a mortgage.

Even though a timeshare is a physical property, it isn’t one that you fully own. If you default on the loan, the lender can’t foreclose on the unit and resell it to recuperate their losses. Since the lender is taking on more risk in these arrangements that other loans associated with physical assets, the interest rate is usually higher to compensate.

On average, 10-year timeshare loans from the resort come with interest rates of 14 percent. However, borrowers with lower credit ratings or loans through specific lenders may reach closer to 20 percent.

If you finance a $22,180 timeshare for 10 years at 14 percent, you’ll pay $344 per month, or $3,440 a year, for the next decade. Over the course of the loan, you’ll pay over $19,000 just in interest. In total, buying the timeshare cost around $41,000.

If you end up with a 20 percent interest rate instead, you’ll owe $429 per month, or $4,290 a year. By the time you pay off the loan 10 years later, you’ll have paid nearly $30,000 in interest alone. That brings the total cost of the timeshare to around $52,000.

But that isn’t all you have to pay for with a timeshare. You’ll have to deal with maintenance fees too.

Maintenance Fees

In 2017, the average maintenance fee for a timeshare was $980. While that may not sound like a lot of the surface, if you consider that most timeshare owners only have access to the property for one week each year, that’s an awfully high price to pay.

Additionally, it showcases precisely how much timeshare resorts make from maintenance fees alone. If every owner has rights to one week a year, that means the property can have 52 owners. If each of those owners pays that $980 fee, that’s a total of $50,960 per year, and that’s only for one unit.

With approximately 1,570 timeshare resorts in the U.S. and 205,100 units between them, the average U.S. resort has about 131 units. Annually, an average resort brings in an astonishing $6.6+ million in maintenance fees alone.

Unlike paying for an interval, maintenance fees are due every year. Additionally, this cost tends to trend upward, so maintenance fees almost always end up more expensive over the long run, not less.

It’s also important to understand that, while the average fee is $980, some maintenance costs are much higher. Some high-end properties have maintenance fees that reach $3,000 or more for one-week interval owners, which many would deem to be unaffordable.

So, How Much Do Timeshares Cost?

Based on the metrics above, while you are paying off a timeshare property and dealing with maintenance fees, the unit costs between $4,420 and $5,270 for a single interval each year. If you only get access to the property for a week (seven days) every year, you are effectively paying between $631 and $752 per night for the 10 years you are paying off the loan on the interval for the unit.

To put that in perspective, the average cost of a five-star hotel in New York is around $362 per night. In Florida, the average is $336 for a five-star hotel, and Nevada, the home of Las Vegas, comes in at $239 per night.

Plus, when you buy a timeshare, you might not gain access to features you would get at a hotel. While the units often have full kitchens, something that may help you save on meals, not all of them do. Additionally, benefits like a continental breakfast aren’t always part of the package.

Housekeeping may also be somewhat limited at timeshares during the course of your stay, and you could be responsible for specific tasks like taking your own garbage to a dumpster on the property or putting used dishes in a dishwasher on your last day. While this isn’t always the case, you have to read the fine print to make sure. Otherwise, you could be stuck with a fine for failing to adhere to the rules.

Concierge-style services can also vary, so the amount of support you get from the organization operating the timeshare property may not rival area five-star hotels either.

Cost Over Improvements

Now, once you spend a decade paying off the timeshare loan, the cost per night at the timeshare does drop to $140, based on current average maintenance costs. However, that amount will likely increase every year, and you may not see any amenity offerings improve over time.

Ultimately, the cost of a timeshare is usually significantly higher than paying for other forms of accommodations, at least during the time you are paying off the loan. Plus, you are often locked into a particular property and possibly even a specific week each year.

If you aren’t able to vacation during that time or at that location, you don’t get your money back. Instead, it was simply wasted that year. If you can’t imagine practically tossing $4,400+ out a window if you can’t make it, then a timeshare probably isn’t right for you.

Stuck in a Timeshare?

If you are stuck in a timeshare and want to get out from under that burden, we recommend contacting Newton Group Transfers at 1-888-549-4154. They are a timeshare exit company with a stellar reputation and have been helping timeshare owners since 2003. They are also A+ rated by the Better Business Bureau (BBB) and were recently named finalists for the BBB Torch Award for Ethics.

How much do timeshares cost? Did you know before reading this article? Tell us more in the comments below.

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