Helpful Tips Regarding Frequent Flyer Programs

                                         

Frequent flyer programs are offered by airlines companies to customers who fly more than the average flyer.  Some programs offer points, upgrades, priority seating, discounts on products, credit for purchasing products from partners and more.

Some frequent flyers obtain miles for personal and business travel.  Avoid confusing business travel with personal travel miles.  Open a separate account for your business travel miles if you can.  If not, be sure to keep track of your personal miles.  Some frequent flyers have been prosecuted and convicted for redeeming business frequent flyer benefits that were used for personal travel.

Frequent flyer programs can be tricky and can prove difficult to get due to all of the restrictions. Some programs you have to travel at least 25,000 miles or more before you can start redeeming benefits.  When looking for a frequent flyer program to participate in consider the following:  

1. Perks
2. Do their fly to your home airport or preferred airport
3. Do your points expire or have to be used within a certain time period
4. Do they provide other options for using points that will soon expire
5. What are the restrictions and guidelines
6. Do they offer points for partner company purchases
7. Does the program match your travel habits

Here are some tricks frequent flyer programs use

1. The number of seats are limited
2. Increased the number of points needed and offer fewer flights
3. May have to book months in advance and settle for an inconvenient flight time

Here are some perks of frequent flyer programs

1.      If you can’t use your miles before they expire use alternatives such as using them for magazine subscriptions, making purchases at airline websites or sites such as points.com, renting cars, gift cards or giving them away.

2.      Trade frequent flier miles or buy miles at another airline using points.com.  Ask friends or family to share miles with you.

3.      Sign up for a frequent flyer miles check card. You may be charged an annual fee but if used frequently you can get a free airline ticket.

4.      Look for partners that offer miles for your frequent flier program. Find airlines which are compatible.

5.      Sign up for email promotions and use them to earn bonus miles. You will get email invitations to take surveys to try out new products which helps you earn bonus miles.

6.      Sign up for dining rewards. 

7.      Open a credit card which is usually free the first year.  Make sure you meet the minimum spending requirements. After your miles post plan your next trip.  This method works best when you use the miles quickly.  You can cancel the card after the first year to avoid the fee charged the second year. 

8.      Purchase layover flights instead of non-stop flights. 

Are You a Victim of Instant Gratification

                                                   

Do you use your credit card or debit card to make all of your purchases? Have you stopped carrying cash? Do you feel lost without your credit card or debit card? You are not alone. There are over 5 billion debit cards in use in the United States. There are over 1.4 billion credit cards in use in the United States. This signal a major shift in the primary form of payment for Americans.

It can be difficult to resist the temptation of the instant gratification culture of America. Retailers and advertisers make it so easy for consumers to buy everything instantly by creating online shopping, instant cereal, instant coffee, instant meals, text messaging and the ability to make credit card or debit card purchases anytime anywhere. Most Americans buy an item immediately when they see it either in a store or online. This bad habit has caused many Americans to overdraw their account, pay overdraft fees, overspend, damage their relationship with their bank and lower their credit score.

Some advantages of using a debit card: it is easier to obtain versus a credit card, can be used in place of checks, accepted everywhere, transactions can be made quicker and can be used to get cash from an ATM or retail store that offers cash-back during a purchase. The disadvantages of using a debit card are: you can spend more than you have in your account; you can incur overdraft fees and can become a victim of identity theft. Here a 10 ways to rein in your spending:

1. Create a budget. Create a budget to track your spending daily or weekly. Set aside a specific amount for extra things you want (wants).
2. Track spending. Take all of your receipts from your credit card or debit card purchases and put them in an envelope. Use pen and paper, an Excel spreadsheet or a software tool to track spending. 
3. Wait. Wait a few days before making a purchase that is more than $50. Go back to the store to see if you still want the item. If you still want the item, comparison shop to see which store offers the best price.
4. Pay your bills first. Put a portion of any extra money left over in a savings account.
5. Alternate payment. Use cash when making purchases. Use credit cards for emergencies.
6. Get a receipt. Get a receipt each time you make a purchase and keep it.
7. Retail therapy. Avoid shopping when you are emotional. This will prevent you from spending more than you have or buying unnecessary items.
8. Leave at home. Leave your credit card or debit card at home unless you know you will make a purchase. This helps to reduce the temptation to make an unnecessary purchase.
9. Influences. Avoid spending time with people who love to shop. Avoid reading magazine catalogues, window shopping and watching shopping television channels.
10. Get cash. Go to the bank and withdraw the amount of cash you need for the week. Once you spend that amount, don’t money withdraw anymore or use your credit or debit card unless it is an emergency.

How to Create a Personal Annual Budget

                                             

Create an annual budget or spending plan for a twelve-month period to show your total income and total expenses. An annual budget helps you adequately manage your finances and project your future cash flow. An annual budget should include expenses, bills, savings goals and debt. 

An annual budget identifies projected expenses, projected income, and areas overspending occurs. An annual budget gives an exact view of what you can afford, areas where you lack funds, and areas where you are overspending. An annual budget also gives an exact picture of money spent on wants and needs such as Starbucks coffees, entertainment, eating out or shopping. 

Compare your total income to your total expenses. If there is no money left over this is a red flag you are overspending and need to improve your spending habits. Review your annual budget at least quarterly and make any necessary adjustments. Here are 10 tips to create an annual budget.

1. Create creating a monthly budget first and track money for one year. Then use the data from the monthly budget to create an annual budget. Create an annual budget by subtracting total yearly income after taxes and total yearly expenses.
2. Include fixed and variable expenses in your annual budget. If the total annual amount leftover is, negative or less than 5% of your total yearly income that is a red flag that you need to make some major adjustments to your budget.
3. Determine if there are some areas where you are overspending. Buy more needs vs. wants and consider buying used versus new items.
4. Create a balanced annual budget:  35% housing, 15% debt (excluding mortgage), 15% transportation, 25% other expenses and 10% savings.
5. Develop at least five financial goals. Create short-term (0-4 years) and long-term (4 or more years) financial goals.
6. Create your annual budget using pen and paper, Word, an Excel spreadsheet or a software tool such as Quicken, Microsoft Money Plus Sunset or Pageonce.
7. Include savings goals in your annual budget.
8. Find ways to reduce expenses. Reduce spending by 30% - 50%. Start small by taking your lunch to work, skipping Starbucks and bringing your coffee from home, use coupons or buy items on sale to save money. 
9. Create an emergency savings fund to cover monthly expenses for 9-12 months.
10. Include some wiggle room in your annual budget to accommodate for unexpected expenses.