
Source: thepointsguy.com
Source: thepointsguy.com
Foreign transaction fees are irritating little charges that every traveler has faced, and most credit card users have questioned. They are the bane of a frequent flyerâs life and if not managed carefully, could result in some serious charges. But what are these charges, why do they exist, whatâs the average fee, and how can you avoid them?
What is a Foreign Transaction Fee?
A foreign transaction fee is a surcharge levied every time you make a payment in a foreign currency or transfer money through a foreign bank. These fees are charged by credit card networks and issuers, often totaling around 3%.
For example, imagine that youâre on holiday in the United Kingdom, where all transactions occur in Pound Sterling. You go out for a meal and use your credit card to pay a bill of £150. Your credit card issuer first converts this sum into US Dollars and then charges a foreign transaction fee, after which the network (Visa, MasterCard, American Express) will do the same.
If we assume that £150 equates to exactly $200, this will show on your credit card statement first followed by a separate foreign transaction fee of $6.
When Will You Pay Foreign Transaction Fees?
If youâre moving money from a US bank account to an international account in a different currency, thereâs a good chance you will be hit with foreign transaction fees and may also be charged additional transfer fees. More commonly, these fees are charged every time you make a payment in a foreign currency.
Many years ago, foreign transaction fees were limited to purchases made in other currencies, but they are now charged for online purchases as well. If the site youâre using is based in another country, thereâs a good chance youâll face these charges.
It isnât always easy to know in advance whether these fees will be charged or not. Many foreign based sites use software that automatically detects your location and changes the currency as soon as you visit. To you, it seems like everything is listed in dollars, but you may actually be paying in a foreign currency.
Other Issues that American Travelers FaceÂ
Foreign transaction fees arenât the only issue you will encounter when trying to use American reward credit cards abroad. If we return to the previous example of a holiday in the UK, you may discover that the restaurant doesnât accept your credit card at all.
In the UK, as in the US, Visa and MasterCard are the two most common credit card networks and are accepted anywhere you can use a credit or debit card. However, while Discover is the third most common network in the US, itâs all but non-existent in the UK.Â
Discover has claimed that the card has âmoderateâ acceptance in the UK, but this is a generous description and unless youâre shopping in locations that tailor for many tourists and American tourists in particular, it likely wonât be accepted.
There are similar issues with American Express, albeit to a lesser extent. AMEX is the third most common provider in the UK, but finding a retailer that actually accepts this card is very hit and miss.
Do Foreign Transaction Fees Count Towards Credit Card Rewards?
Foreign transaction fees, and all other bank and credit card fees, do not count towards your rewards total but the initial charge does. If we return to the previous example of a $200 restaurant payment, you will earn reward points on that $200 but not on the additional $6 that you pay in fees.
How to Avoid Foreign Transaction Fees
The easiest way to avoid foreign transaction fees is to use a credit card that doesnât charge them. Some premium cards and reward cards will absorb the fee charged for these transactions, which means you can take your credit card with you when you travel and donât have to worry about extra charges.
This is key, because simply converting your dollars to your target currency isnât the best way to avoid foreign transaction fees. A currency conversion will come with its own fees and itâs also very risky to carry large sums of cash with you when youâre on vacation.Â
Credit Cards Without Foreign Transaction Fees
All credit card offers are required to clearly state a host of basic features, including interest rates, reward schemes, and annual fees. However, you may need to do a little digging to learn about foreign transaction fees. These fees can be found in the credit cardâs terms and conditions, which should be listed in full on the providerâs website.
To get you started, here are a few credit cards that donât charge foreign transaction fees:
Summary: One of Many Fees
Foreign transaction fees are just some of the many fees you could be paying every month. Credit cards work on a system of rewards and penalties; youâre rewarded when you make qualifying purchases and penalized when you make payments in foreign currencies and in casinos, and when you use your card to withdraw cash.
Many of these fees are fixed as a percentage of your total spend, but some also charge interest and you will pay this even if you clear your balance in full every month. To avoid being hit with these fees, pay attention to the terms and conditions and look for cards that wonât punish you for the things you do regularly.
What is a Foreign Transaction Fee and How Can You Avoid It? is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
Only a decade ago, people called a taxi company when they needed a ride. The same act is now as simple as hitting a few buttons on your smartphone.
Ride-share companies like Lyft make getting a ride to almost anywhere a breeze, and the service may cost a lot less than you think.
If you charge your Lyft rides to a credit card that doles out points or miles, thatâs even better. In this guide, weâll go over the absolute best credit cards to use when you ride with Lyft as well as other ways to maximize your ride-share dollars.
See related: Everything you need to know about maximizing rewards on ride-shares
Chase Sapphire Reserve®: Best for Lyft discounts
There are a handful of credit cards that can help you earn rewards each time you ride with Lyft. Here are your best options:
See related:Â Best cards for Uber, UberEATS
In January 2020, the Chase Sapphire Reserve began to offer a one-year complimentary Lyft Pink membership. For a $19.99 monthly fee, Lyft Pink offers passengers 15% off all car rides, in addition to priority airport pickups, special discounts and more flexibility in cancellations, among other benefits. The Reserve is also offering 10 points per dollar on Lyft purchases through March 2022.
Besides these perks, the card comes with a 3-point-per-dollar rate on restaurants and travel, including Lyft, after the $300 annual travel credit. Speaking of the credit, it applies to most travel purchases, including rides with Lyft.
The Chase Sapphire Reserve card is one of the best travel credit cards on the market, but it also comes with a rather high price â the card charges an annual fee of $550. If you donât travel often enough to justify the fee, you might want to look into cards that have a lower annual fee or none at all.
Here are more details:
exciting new benefits for its World and World Elite credit card members. This includes a $10 Lyft credit for World Elite cardholders, which will be automatically applied to your next ride after you take five Lyft rides within a calendar month. The most popular World Elite Mastercards include the Capital One® Savor® Cash Rewards Credit Card*, the Citi Prestige® Card and the Barclaycard Arrival Plus World Elite Mastercard.
Similar to the Chase Sapphire Reserve, the Chase Sapphire Preferred rewards cardholders for eating out (or ordering takeout) and traveling and offers 5 points per dollar on Lyft through March 2022. The base rewards rate is lower at 2 points per dollar on dining and travel and 1 point per dollar on other purchases, but the annual fee is also lower at $95.
If youâre not ready to shell out $550 per year that the Reserve charges, the Preferred can be a better alternative. Plus, it offers a higher sign-up bonus than the Reserve â youâll get 60,000 points after you spend $4,000 in the first three months (compare with a 50,000-point sign-up bonus if you spend $4,000 in first three months on the Reserve).
Take a look at the card details:
Another credit card that offers rewards for travel and transit (including ride-shares such as Lyft) is the American Express Green Card. While it doesnât offer the luxury travel perks other Amex cards are known for, it can be a good choice for budget-minded travelers. With this card, you can get 3 points per dollar on dining, travel and transit, and 1 point per dollar on everything else. The Amex Green also comes with perks such as up to $100 in annual statement credits for LoungeBuddy purchases and up to $100 per year for CLEAR membership.
The Platinum Card® from American Express (up to $15 per month) and up to $120 on the American Express® Gold Card (up to $10 per month).
Hereâs what the card offers at a glance:
If youâre looking for a credit card that would earn you rewards on Lyft rides and not charge an annual fee, the Wells Fargo Propel American Express is definitely an option worth looking into.
The card earns 3 points per dollar in numerous categories, including dining out, gas stations, transit, flights, hotels, homestays, car rentals and select streaming services â and ride-shares. All other purchases earn 1 point per dollar. You can choose to redeem your rewards for flights through Go Far Rewards or statement credits.
Hereâs a closer look:
While using the right credit card can help you score more rewards each time you ride with Lyft, there are other ways to make the most of your ride-share spending. Here are some tips that can help you maximize each dollar you spend, save money and even earn airline miles:
To find the best cards for Lyft to share with you, weâve compared all cards that offer benefits and perks related to ride-sharing and Lyft specifically. These cards can help you maximize your potential earnings and savings on Lyft rides, and if you use Lyft frequently, one of these products can be a great addition to your wallet.
*All information about the Capital One Savor Cash Rewards Credit Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. Capital One Savor Credit Card is no longer available through CreditCards.com.
Source: creditcards.com
Credit cards for foodies are the latest trend, with more and more rewards programs and additional card benefits catering to both dining in and eating out. Restaurant and grocery bonus categories are becoming commonplace â letting cardholders rack up a few extra points or cash back on those purchases.
But what about those who prefer to order delivery? If you like to take advantage of popular food delivery services like DoorDash or Uber Eats or simplify cooking with a meal kit subscription, there are plenty of credit card rewards and benefits you can leverage to save a little money.
Finding the best card for your favorite food delivery or meal kit service depends on a variety of factors, including the cardâs yearly credits, special perks or rewards rate. For example, many dining cards offer bonuses that are tailored to a specific delivery service, as a monthly Uber credit.
See related: Food delivery perks on luxury travel cards
For meal kit services, matching rewards is a little more complicated. You could opt for a rewarding grocery card, as many meal kit brands are now partnered with major supermarkets â so you can buy them in the store.
Alternatively, a card that earns rewards on dining or online shopping can help you get rewards on both food delivery and meal kits. Earning dining rewards can be complicated, as not all delivery services have a merchant category code that qualifies for a point or cash back bonus. You can test it by making a small charge to your card and seeing what rewards you earn.
Online shopping rewards, on the other hand, are much more flexible. They apply to both web and app purchases, so whether your order from your phone or computer, you can rack up bonus points or cash back.
With all this in mind, here are some of our favorite cards for some of the most popular food delivery and meal kit subscription services.
Delivery service | Card | Rewards rate | Why we like it |
DoorDash | Chase Sapphire Reserve |
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Uber Eats | The Platinum Card® from American Express |
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Instacart | Capital One Savor Cash Rewards Credit Card |
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Grubhub/Seamless/Boxed/Instacart/Uber Eats | American Express® Gold Card |
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HelloFresh | Blue Cash Preferred® Card from American Express |
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Home Chef | Blue Cash Everyday® Card from American Express |
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Other delivery services | Bank of America® Cash Rewards credit card |
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If you donât have a delivery service you prefer â or if you like to switch back and forth based on restaurant availability â a card with rewards on online shopping is your best bet.
Ordering food can be expensive, but using the right rewards card can help you alleviate some of that cost by racking up points or cash back. With some cards, you might even get a few extras that cover your next couple of meals.
Source: creditcards.com
Most travel has been on halt since the COVID-19 pandemic started, and earning and using travel perks has been a challenge.
Fortunately, credit card issuers and rewards programs have been introducing limited-time offers to help customers retain and enjoy travel benefits, even in the pandemic. For instance, last year, Southwest gave all Rapid Rewards members a âboostâ of 25,000 Companion Pass qualifying points and 25 flight credits toward Companion Pass status.
This year, new Southwest Rapid Rewards cardholders can get the Companion Pass for free as a part of an intro bonus.
The Companion Pass allows you to take a designated companion on any flight you book for just the cost of taxes and fees, as long as your Companion Pass is valid.
Normally, youâd need to earn 125,000 qualifying points or take 100 qualifying one-way flights in a calendar year to earn a Companion Pass.
Through March 10, 2021, if you sign up for the Southwest Rapid Rewards Plus Credit Card, Southwest Rapid Rewards® Priority Credit Card or Southwest Rapid Rewards Premier Credit Card and spend $5,000 on purchases in the first three months, you can earn the Companion Pass, valid through Feb. 28, 2022, and 30,000 Rapid Rewards points.
See related: Southwest credit cards: Which Rapid Rewards card is best for you?
The length of the Companion Pass you can receive as a part of the new sign-up bonus offer is shorter than what youâd get if you earned it in a traditional way â the Pass is typically good for the remainder of the year in which you earn it, and the year after that.
Still, considering that getting the Companion Pass provides a lot of value but requires quite an investment, the new offer from Chase is an excellent deal.
That said, itâs understandable that many continue to avoid traveling. Still, the vaccine is continuing to be distributed, offering hope for the return of safe travel, and with the new offer from Chase, youâll have plenty of time to use your Companion Pass before it expires.
Source: creditcards.com
He makes significantly more than I do (between four to five times as much), and he worries that my low income means Iâll be a burden on him when we get older if we decide to marry. The way I see it, I am very responsible with the money I do make. I donât have any debt, and I pay all my own bills.Â
This may be a painful discussion. You may not like the answer you hear. But I suspect a likelier outcome is no answer at all â just a bunch of hemming and hawing. If thatâs what you get, then you have your answer.
Do you have any advice for us? This is one neither of us knows how to navigate.
One thing I have to wonder about based on what you told me is whether this is about money at all. Imagine your salary were to quadruple tomorrow. Do you think your boyfriend would be enthusiastic about your future together? Or do you think heâd find another hang-up?
Iâm a 35-year-old female whoâs divorced, and my boyfriend is 38 and never married. Weâve been dating for two years, and itâs been wonderful. Recently, weâve been having talks about our future, but money is a bit of a hang-up for him.Â
Source: thepennyhoarder.com
That doesnât sound wonderful to me. That sounds cruel.
Your value goes way beyond your salary. Please donât waste your time trying to build a future with anyone who doesnât recognize that.
Paychecks change. Thereâs no guarantee your boyfriend will always be a high earner. And just because you have a low income at 35 in the midst of a pandemic doesnât mean youâll always have a low income. Thatâs not to say that thereâs anything wrong with not having a high salary. But I donât want you defining your potential by what you earn right now.
Dear R.,
Most couples encounter this situation to at least a degree. Few people will marry someone whose salary is identical to theirs for their entire careers. Youâre marrying a person, not a paycheck.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to AskPenny@thepennyhoarder.com.
It sounds like this is a topic the two of you have been dancing around for some time. This is going to require a brutally honest conversation. Your boyfriend needs to decide whether he can treat someone who makes way less than he does as an equal partner and back it up with action. Until then, any discussions about how to handle finances are premature.
Iâm not asking him for anything, although I do understand that at this rate my retirement savings will be meager while his will be substantial. That could lead to problems if he wants to travel and not feel bitter about having to pay for me for everything later on.Â
Ultimately, this is your boyfriendâs hang-up. Youâre living within your means. Thereâs nothing wrong with you just because you canât afford to live within his means.
But youâre not ready to have that conversation yet. Thatâs because of a problem that, at least as youâve described to me, exists entirely in your boyfriendâs head. It doesnât sound like thereâs a concern about whether you can afford a life together. He has no reason to worry that youâll run up debt or drain his bank account. Is he seriously worried that the bitterness heâd feel over money would overshadow his happiness should he build a life with you? You really need to establish that now so that you can move on if the answer is yes.
Is he willing to shoulder a greater share of the bills for the privilege of building a life with you? Or is he willing to adapt to your more frugal lifestyle so he can have the peace of mind of knowing he never contributed an extra cent? His call.
For some people, money is very much a dealbreaker. But other people get really antsy when they start talking about the future. So they look for a dealbreaker â any dealbreaker â to make you think that youâre the one with the problem, not them. Iâm not saying thatâs necessarily the case here, but itâs fodder for you to consider. You need to know if youâre dealing with a cheapskate or a commitment-phobe dressed in a cheapskateâs clothes.
But the control factor also worries me here. If you got married and he paid most of the bills, could he still approach this as a true partnership of equals? Or would he make you feel like a child asking a parent for allowance money?
Winter always seems to sneak up on us, year after year. Because most climates experience the most dramatic change in weather during the colder months, it’s important to understand what apartment winter maintenance or preparatory tasks you’ll be responsible for at your rental property.
While some tasks fall on the shoulders of your landlord or property manager, there are certain steps you can take as a renter to ensure a safe and comfortable winter at home.
Before the winter hits, touch base with your landlord if you’re unclear on what are tenant responsibilities and what are landlord responsibilities. Who’s responsible for removing snow and ice at the property, and what are the expectations?
Some states have local snow and ice removal regulations regarding public sidewalks or other public areas. Discuss acceptable de-icing measures to make sure you aren’t causing damage to any surfaces.
While it’s your landlord’s responsibility to have heating and cooling systems serviced regularly, it’s helpful to turn on the heat a bit early for a short period of time to make sure everything is functioning properly.
It’s always better to learn about any issues ahead of time instead of discovering a winter maintenance problem in your apartment when the cold temperatures set in.
Cooler weather and more precipitation means bugs, rodents and other pests are looking for a warm place to call home. An easy way to attract unwanted pests is by providing them with a food source, so be sure to take a few preventative steps, especially now that many of us are cooking at home more than ever before.
Store your dry, perishable food items inside air-tight containers that pests can’t chew through. Try to take trash containing food scraps out as soon as possible instead of letting it sit. Aim to wipe down countertops at least once each day to get rid of crumbs and food remnants.
Be sure to follow all of your landlord’s instructions to avoid frozen or burst pipes due to cold weather. Most landlords or property managers will provide guidance on temperature levels and other preventative measures to avoid this issue.
If you’re leaving on vacation or will otherwise be away from your rental for a period of time this winter, give your landlord a heads up and ask if they want you to set the temperature at a certain point or leave a couple of faucets on a slow drip.
Of course, you want to be comfortable in your own home, but keeping a few things in mind when it comes to turning on the heat can have a dramatic impact on your monthly bill. Experts say you can save up to 10 percent on your yearly heating expenses by turning down the thermostat just 7-10 degrees for approximately eight hours per day, like while you’re at work or while you’re sleeping.
Ceiling fans are an excellent tool to help distribute heat evenly. Many models have a switch that forces blades to spin clockwise, which will push warm air down into a room.
If you live in an area where winter weather and storms are a frequent occurrence, it’s wise to make sure you’re prepared ahead of time for any worst-case scenarios. Sign up for weather and emergency alert systems to stay informed about any potentially threatening storms and actions should take. In general, stay indoors during major storms and avoid road travel until it is safe to do so.
Common winter issues like ice dams, frozen pipes or issues with the heating system can quickly spiral out of control. It’s important to keep tabs on your home and alert your landlord of any potential issues as soon as possible so they can be taken care of as quickly as possible.
Whether you’re dreading winter or it’s your favorite season, taking the time to prepare your apartment for winter maintenance will help set you up for success as a renter. Come to a clear and established understanding of what your responsibilities are and what your landlord is responsible for, and make sure to hold up your end of the bargain.
The post 7 Apartment Winter Maintenance Tips for Renters appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Source: apartmentguide.com
Paying the annual fee on a credit card doesn’t mean you’re wasting your money.
In fact, the top travel and rewards credit cards offer welcome bonuses that are worth considerably more than their annual fees, and that’s on top of the cardholder perks and benefits you can receive.
Case in point: The Chase Sapphire Preferred Card* charges $95 per year, yet the sign-up bonus of 60,000 points is worth $750 on its own. Meanwhile, the more luxurious Chase Sapphire Reserve charges a $550 annual fee, but the sign-up bonus is worth $750 in travel, and you get perks like a $100 Global Entry/TSA PreCheck credit every four years, Priority Pass Select membership (valued at $429), a $300 travel credit and more.
Still, a problem can arise when you can’t use the benefits your card offers – or when you cannot (or don’t want to) pay the annual fee anymore.
In that case, you should know credit card issuers can be surprisingly receptive to cardholders who may not be excited about paying their credit card’s annual fee another year. With this in mind, you have some options that can help you avoid annual fees, get something in return or switch credit cards altogether.
See related: When is a credit card annual fee worth it?
According to Howard Dvorkin, CPA and chairman of Debt.com, it’s always worth it for consumers to negotiate their credit card fees or terms. Whether a consumer will get their fees waived is another question, but “it never hurts to ask,” he said.
This is especially true in light of the coronavirus pandemic. As we all know, credit card issuers have been fairly generous when it comes to offering struggling customers relief, with some extending options for deferred payments or waived fees. As an example, a March 2020 statement from Capital One CEO Rich Fairbank noted that the bank was offering assistance to its customers, such as “waiving fees or deferring payments on credit cards or auto loans.”
Dvorkin says consumers can improve their chances of getting their annual fee waived if they have a history of responsible credit use. In some cases, it may be possible to have an annual fee waived altogether, while in others, an account credit may be offered to take the sting out of the fee.
Some credit card issuers even have their own “retention offers” meant to entice you into keeping your card. For example, American Express is known for offering a set number of points for customers who agree to renew their card and pay an annual fee for another year. Sometimes a specific amount of spending is required on the card as well.
On the FlyerTalk website, you’ll even find a running guide of retention offers from several different card issuers, including Amex. After you dig through it, you can find that, as recently as January 2021, at least one person was offered 50,000 Membership Rewards points to renew their Platinum Card from American Express.
See related: Which cards earn American Express rewards points?
But how do you make sure you have as much leverage as possible? We interviewed the experts to find out their best tips for negotiating credit card fees:
Lending expert John Li of Fig Loans says you’ll have the best chances at negotiating your credit card’s annual fee if you use your card frequently.
“At the end of the day, doing so makes the bank money, and a steady flow of transactions puts you in front of the credit card issuer as a worthy customer to build a long-term professional relationship with,” he says.
Dvorkin recommends keeping a level head before you pick up the phone. Take the time to state your case, but don’t fly off the handle if you don’t get your way.
“Credit card issuers get angry calls from cardholders all the time, so it helps consumers to be positive when calling to get a fee waived,” he says.
While some card issuers like American Express have an online chat feature, you may have better luck negotiating with a customer service agent over the phone. In fact, phone agents can usually perform more services on your behalf versus agents you speak to via online chat.
Nishank Khanna, CEO of business lender Clarify Capital, says you’ll have a better shot at negotiating if you have a compelling reason for not wanting to pay an annual fee.
“If you’re having this conversation with your lender to begin with, you’ll want to be able to articulate a logical reason for why you deserve to have the fee removed or reduced,” he says. “Customer service representatives are often receptive to legitimate reasons and may have a policy in place to help accommodate customers with specific concerns or circumstances.”
Khanna also says you can point to other card issuers that may have a better deal right now. Have competitors waived their fees? If you’re looking to knock off a fee on a travel credit card because you haven’t been able to use the card during the pandemic, for example, you should find out how other card issuers are handling the situation.
Persistence can pay off when it comes to negotiating credit card fees and terms. Not only that, but you don’t have to accept the first “no” you receive. If you don’t get the answer you want, you can always try the famous “HUCA” method, which asks you to hang up and try again. You may be connected to a different agent who is more agreeable.
See related: Does applying for a credit card by phone boost approval odds?
If you are trying to negotiate an annual fee but can’t seem to make any progress, keep in mind that other options may make just as much sense.
For starters, Dvorkin says consumers who find they cannot negotiate their card’s annual fee should consider opening a credit card that doesn’t have an annual fee and closing their old one.
Note that closing a credit card can lower your credit score by reducing your overall available credit. Depending on how high the card’s credit limit is and what balances you have on other cards, this could raise your credit utilization ratio and lower your score. But this may be a risk worth taking if you can no longer afford your card’s annual fee.
Also, keep in mind some card issuers might let you downgrade your credit card to another card they offer that doesn’t charge an annual fee. You will probably earn a lower rewards rate and get fewer perks if you take this route, but moving your line of credit to a different card won’t cause damage to your credit score like closing an account can.
*All information about the Chase Sapphire Preferred Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. This offer is no longer available on our site.
Source: creditcards.com
Recent data from the U.S. Census Bureau shows that home sales were up more than 17% in June 2020 from the month before, and up more than 13% compared to the year prior. Those who have the means to buy a second home are wise to take on mortgage debt (or reorganize their current debt) in todayâs low interest environment.
Those who have the means to buy a second home are wise to take on mortgage debt in todayâs low interest environment.
With low 30-year mortgage rates, owning a rental property that âpays for itselfâ through monthly rental income is especially lucrative with a significantly lower mortgage payment. If youâre curious about buying a second home and renting it out, keep reading to find out about the major issues you should be aware of, the hidden costs of becoming a landlord, and more.
The issues involved in buying a rental home varies dramatically depending on where you plan to purchase. After all, buying a ski lodge in an area with seasonal tourism and attractions might require different considerations than buying a home in a major metropolitan area where tourists visit all year long.
But there are some factors every potential landlord should consider regardless of location. Here are a few of the most important considerations:
Before purchasing a second home, take time to run different scenarios using realistic numbers based on the rental market youâre targeting. From there, the following steps can guide you through preparing your property for the short-term rental market.
First, youâll want to have a general understanding of the rental market youâre entering. How much does the average short-term rental go for each night or each week? What is the average vacancy rate for rentals on an annual basis?
Research your local rental market, the average price of rentals in your area, various features offered by competing rentals, and more.
Action Item: Dig into these figures by using AirDNA.co. Just enter a zip code or town, and youâll find out the average nightly rate, occupancy rate, revenue, and more. Although some of the siteâs features require a monthly subscription, you can find out basic information about your rental market for free.
You need to know an array of real numbers before renting your second home, including the following:
Youâll use these numbers to figure out the average monthly operating cost for your second home, and the potential income you might be able to bring in. Without running these numbers first, you wind up in a situation where your short-term rental doesnât pay for itself, and where youâre having to supplement operating expenses every month.
Action Item: Gather every cost involved in operating your specific short-term rental, and then tally everything up with monthly and annual figures that you can plan for.
If you plan on using your second home as a short-term rental, youâll need to buy vacation rental insurance. This type of homeowners insurance is different from the type youâd buy for your primary residence. Itâs even unique from landlord insurance coverage since you need to have insurance in place for your second home and its contents.
Some vacation rental policies let you pay per use, and they provide the benefits of homeowners insurance (like property coverage, liability, and more) plus special protection when your property is rented to a third party.
Action Item: Shop around for a homeowners insurance plan thatâs geared specifically to vacation rentals. See our top picks for the best homeowners insurance companies out there.
If you live near your second home, you might want to manage it yourself. Thereâs nothing wrong with this option, but you should plan on receiving calls and dealing with problems at all hours of the day.
Many short-term rental owners pay a property management company to communicate with their tenants, manage each rental period, and handle any issues that pop up. Property managers can also set up cleanings between each rental and help with marketing your property.
Action Item: Create a property management plan and account for any costs. Most property managers charge 25% to 30% of the rental cost on an ongoing basis, so you canât ignore this component of owning a short-term rental.
Make sure you appropriately market your space, which typically means paying for professional photos and creating an accurate, inviting listing on your chosen platforms. Your property manager might help you create a marketing plan for your vacation rental, but you can DIY this component of your side business if youâre tech- and media-savvy.
Action Item: Hire a photographer to take professional photos of your rental, and craft your rental description and listing.
Becoming a landlord isnât for the faint of heart. Thereâs plenty that can go wrong, but here are the main risks to plan for:
A short-term rental can be a viable business opportunity, depending on where you want to buy and the specifics of the local rental market. But there are a lot of factors to consider before taking the leap.
Before investing hundreds of thousands of dollars, think over all of the potential costs and risks involved. Youâll want to ensure that youâve done comprehensive research and have run the numbers for every possible scenario to make an informed decision.
The post How to Buy a Second Home that Pays for Itself appeared first on Good Financial Cents®.
Source: goodfinancialcents.com
Do you want to learn how to make money on TikTok? Here’s how Tori grew from 0 to 350,000 TikTok followers and made $60,000 in just 6 weeks.
Unless you’ve been living under a rock, you have probably heard something about TikTok. TikTok is one of the most popular social media networks currently, and it is growing like crazy.
There are already over 500 million active monthly users on TikTok around the world.
So, you may be wondering if you can learn how to make money on TikTok, and any TikTok tips so that you can see success too.
That completely makes sense!
Today, I want to introduce you to Tori Dunlap.
Tori Dunlap is a nationally-recognized millennial money and career expert. After saving $100,000 at age 25, Tori quit her corporate job in marketing and founded Her First $100K. She has helped over 200,000 women negotiate salary, pay off debt, build savings, and invest.
I met her a couple of years ago in person, and she has built an amazingly successful business. I’m in awe of what she has done, and I enjoy her creative ways of helping people improve their money situation.
I asked Tori to take part in an interview on Making Sense of Cents about her explosive TikTok growth. She went from 0 to over 350,000 TikTok followers, and made $60,000 in just 6 weeks on TikTok.
In this interview, you’ll learn:
And more! This interview is packed full of valuable information on how to earn money on TikTok.
I know so many people have questions about TikTok, such as how to grow on TikTok, how to make money from TikTok (including, how much money do TikTokers make?), and more, so hopefully you will find this interview both interesting and informative!
You can find Tori on TikTok here.
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I’m nationally-recognized millennial money and career expert. After saving $100,000 at age 25, I quit my corporate job in marketing and founded Her First $100K to fight financial inequality by giving women actionable resources to better their money.
I’ve helped over 350,000 women negotiate salary, pay off debt, build savings, and invest — and I firmly believe that a financial education is a woman’s best form of protest.
A Plutus award winner, my work has been featured on Good Morning America, the Today Show, the New York Times, PEOPLE, TIME, New York Magazine, Forbes, CNBC, and more.
Before becoming a full-time entrepreneur, I led organic marketing strategy for Fortune 500 companies—with clients like Amazon, Apple, Facebook, Nike, the NFL, and the Academy Awards—and global financial technology start-ups. For almost five years, I specialized in social media, SEO, content, and influencer marketing to grow community and increase awareness.
I now travel the world writing, speaking, and coaching about personal finance, online businesses, side hustles, and confidence for millennial women.
I only really started doing TikTok for my business in the last 6 weeks (and gained almost 350,000 followers in the process, which is wild.)
I knew that you could see accelerated growth on the platform — it’s the only main social platform that currently has more people consuming content than creating it — and it fit well with my brand.
I’m passionate about financial education as a form of protest, and making money conversations inclusive — meeting people where they are on TikTok seemed like a perfect way to do that.
To me, going viral and gaining 350,000 followers in such a short amount of time is proof that Gen Z is craving personal finance advice.
I was shocked by the growth, and I’ve never seen a platform that is so creator-friendly (Facebook, for example, has become more and more business-focused.)
In terms of followers, it took me 3 days to do on TikTok what it took me 3 years to do on Instagram. But I was ready for it — I have an established, global business, credibility, and products to sell. As a former social media manager, it’s a reminder that consistency, credibility, and serving before selling are what grows your account — not paid ads or manufactured authenticity.
The big shift was a video that went viral (as of this writing, it has 3.5 million views and over 730K likes.) Having gone viral multiple times before, this was next level — I was getting 100 followers every 5 minutes.
It’s more than doubled my website traffic, increased my sales, and grown my credibility.
Tori’s TikTok
I make money through promoting my own products (like my resume template and side hustle courses) and my affiliate partners.
For example, I might talk about high yield savings accounts and send folks to the link to my affiliate bank partner.
In the last 6 weeks, I’ve made over $60,000 just from TikTok.
Now that I have a substantial following, I’m also monetizing my platform with brand partnerships, and showcasing products I believe in.
Related: 10 Easy Tips To Increase Your Affiliate Income Free Guide
Just like the rest of my content, I focus on creating actionable resources for my followers.
Most of the questions I answer in my videos or advice I give comes from someone asking me about it, which guarantees I’ll have consumers of that content because I know it’s valuable for them.
Your audience will tell you what they want to see!
One of the smart things I did was waiting to become a creator. I was a consumer on TikTok first, sharing and enjoying videos before I started creating my own. Doing so helped me understand trends, what content well, the way the videos were shot. I got to know the landscape and followed creators doing good work.
So much of TikTok is collaborative creation, so I’ll often duet with another creator and offer my two-sense, or will be inspired by a trend or sound I see elsewhere.
Your phone is the biggest thing you need. I also invested in a ring light/tripod to make it easier to shoot content, and to make sure the lightning was decent.
If you want to do more advanced videos, you might need editing software, a more professional camera, or props.
There is a learning curve with understanding how to shoot videos, and I was too intimidated to start for a while.
Don’t let that scare you: just like anything, it’s easy once you get the hang of it.
Some of Tori’s TikTok videos.
Batching content has helped me save time, so I make about 5-7 videos in one session.
Because we’re still in quarantine, I often shoot without camera-ready makeup, which I think adds to the spontaneity and authenticity of the video.
I’ve also made the decision to not change clothes for every single video, it just seems like overkill.
My 15-second, talk-to-camera videos take about 10 minutes — 3 to shoot, 7 to add text and a caption.
More in-depth videos — with green screen effects or lots of text that moves — can take about a half hour.
I try to intersperse content — not only for variety’s sake, but also to keep myself sane.
Instagram has started to feel more and more like work, while TikTok allows me to be more creative.
As a theatre major, it’s a perfect platform for me to make weird faces, perform, and showcase my personality in addition to my advice.
I’ve also found TikTok a more welcoming environment. You’ll always have trolls and hateful comments, but I’ve found there’s more support and encouragement from people who aren’t following you on TikTok than on other platforms.
I really love and engage with Instagram Stories, and TikTok doesn’t have a feature like that (yet.) Stories are a good way for your audience to learn more about you and your business in a less polished way, so I think it’s harder for someone to get to know you on TikTok.
Captions are also WAY shorter, and you cannot post your hashtags in the first comment, so any explaining you need to do through text needs to be in the actual video.
YES!
More than any other social platform.
Instagram, for example, is very saturated. It’s almost impossible to discover a new account within the platform, unless a friend directly shares it with you. You’re really only seeing posts from people you already follow.
TikTok has a following tab, and also a “For You Page” tab, where they show videos they think you’ll like.
I’ve never seen an algorithm as responsive as TikTok’s, so you’ll find content that actually connects with you and your interests.
Content that does well is at least one of the following: aspirational, educational, or entertaining.
You have travel vloggers showcasing their Airbnbs in Paris (aspirational), vegan chefs walking you through a recipe (educational), or a thrill-seeker trying a new stunt (entertaining.)
I found my niche between aspirational (talking about how I left my 9-5 job and built my business) and educational (how to pay off debt, invest, etc.)
Like any social platform, consistency is key. TikTok is like Twitter — you have the option of posting 7-10 times per day (and not being punished by the algorithm.) I usually try to put out 2-3 videos per day, some more complicated than others.
Don’t invest in TikTok unless you know your audience is there.
For example, if your potential customers are men in their 50s, they’re probably not on TikTok.
When I worked in marketing, it was easy to chase platforms or trends. It’s easy to feel like you need to be everywhere in order to make sure you’re relevant.
But if the audience you’re looking to target is largely not on a platform, don’t invest time and money in it.
Do you want to learn how to make money on TikTok and how to grow on TikTok?
The post How I Make Money On TikTok – How I Grew To 350,000 Followers and Made $60,000 In 6 Weeks appeared first on Making Sense Of Cents.
Source: makingsenseofcents.com