Farnoosh Torabi's Blog, page 48

Daily Deal Remorse? Here’s How to Cash In

[image error]LivingSocial, Groupon, Gilt, Eversave. Daily deal sites are springing up all around us, often with super discounted prices for restaurants, entertainment and activities. But what happens when you can’t redeem your vouchers?

There are thousands of vouchers purchased every day via daily deal sites but, according to a study by researchers at Rice University, 21.7% of people never redeem them.

The solution? New websites that make it easy to turn your coupon back into bucks. Sites including CoupRecoup and CoupFlip are now a part of the daily deal resale universe, allowing consumers the opportunity to buy and sell secondhand deals via their platforms.

So you’ve got a deal that you want to unload? Here’s how to get started.

Review The Return Policy

First, you might be able to negotiate a refund through the site where you originally purchased the voucher. Groupon, for example, guarantees returns within 7 days of purchasing a Local deal and will refund the full amount paid within 72 hours. LivingSocial’s policy also outlines conditions for refunds. Their various deal types are eligible for refunds based on the respective deadlines from their purchase dates. Other sites make exception for refund if your voucher hasn’t expired, so be sure to check before going elsewhere. Now, if your deal has expired, by law, the voucher is still valid indefinitely at the merchant for the amount paid.

List It With CoupRecoup

Maybe you can’t do a direct return. Well, the process of reselling your voucher via CoupRecoup is fairly simple. The site serves as a listing service, much like Craigslist, to resale your daily deals. Set your price and add a deal to the marketplace. Other users will search it out and you complete the transaction using Paypal, which charges a small fee of 3%. But be aware: while you can set your price with CoupRecoup, listings are on average 30% to 65% off of the original deal price.

Sell It To CoupFlip

Finally, the largest secondary market for daily deals is CoupFlip. Instead of listing your voucher on the platform and waiting for a buyer, as with other sites, CoupFlip provides the opportunity to sell your unwanted deal immediately. You sell your deal to the site, up to 70% of the price you paid, and they handle the work of reselling it later. And after a sale, CoupFlip will transfer money to your account in 25 days.

Photo Courtesy,  Tax Credits.

Local Chiropractor Scores at Olympics

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Dr. Carlson (center) worked with Olympic silver medalist Jaime Espinal (left) and Olympic gold medalist Jake Varner (right) at the 2012 London Olympics.

Last summer, Dr. Jon Carlson proudly attended the London Olympics where two of his client athletes made the podium. The 30-year old chiropractor works alongside world class wrestlers from Team USA and Team Puerto Rico at the Nittany Lion Wrestling Club in State College, Pa. He was contracted by Team Puerto Rico to go to London after his success at the 2011 World Championships in Istanbul, Turkey. “My goal was to work with an Olympic wrestling team. I never expected it to happen so quickly,” he says.

Maybe there are lingering what ifs from his own injury-laden career as a wrestler that make the young doctor’s success so hard for him to believe.

What if he hadn’t torn his MCL in his sophomore year of high school?

What if his shoulders hadn’t separated and his rotator cuff hadn’t torn during a match his Sophomore year in college?

Whatever the reason, there came a point when the Lycoming College biology grad developed a career-defining aversion to prolonged cycles of rehabilitation and decided to get into the business of injury prevention. “As an athlete, I knew there were benefits to treating injuries before they occurred,” he says.

It was with his goal of working with the world’s most competitive athletes on its biggest stage that the small town chiropractor built his modest practice. In 2009, a month removed from completing his tenth and final trimester at the Logan College of Chiropractic, the newly minted doctor opened All Star Chiropractic and Sports Rehabilitation on a side street in the small downtown area of Emporium, Pa., where, according to the 2010 Census, the median income across 956 households was just $32,468.

Many would be quick to dismiss Dr. Carlson’s business address as the perfunctory move of a doctor that lacks the common business sense to succeed. But Emporium’s extremely low rents have given Dr. Carlson the financial flexibility to take his work around the world. “If I take a week off work, my business won’t go under,” he says.

Keeping costs low is a key part of Dr, Carlson’s success. For now, he handles all of his own billing, documentation, and administration. He has gotten the most out of his initial $10,000 small business loan by buying basic, yet pricey equipment used. “My monthly overhead is a fraction of what my other chiropractor friends pay,” he insists. “Basic equipment works as long as you know how to use it correctly. Besides, my focus is on function. My goal is to take care of problems before they become problems.”

While he hopes to return to the Olympics in 2016, Dr. Carlson’s focus has come full circle. To compete with larger health like care providers like UPMC trying to stake their claim locally, he is working with Penn Highlands Health Care to introduce an integrated sports medicine program that mimics the US Olympic Committee’s model to athletes in rural Pennsylvania. His goal is to minimize injuries in high school sports while helping student athletes realize the upper limit of their potential.

“Athletes in the area are somewhat hindered because they don’t have everything that the big cities have,” notes Dr. Carlson. “I have seen what everyone else has and how what they have has been critical to their success.”

Money Discussions Every Couple Should Have

While a majority of couples say they discuss their finances on a weekly basis, money is still a top cause for arguments. Here are some of the most important money conversations to have. Read more here.

What are some money issues you’re dealing with in your relationship? Connect with me on Twitter@Farnoosh, and use the hashtag #FinFit.

Credit Score: The New Dating Litmus?

[image error]Lenders, landlords and even some employers look closely at your credit history before deciding whether to enter a relationship with you — so why would a potential dating partner feel any differently?

How you handle your money says a lot about you: how dependable you are, and how organized.  Personally, I could overlook the errors of someone who racked up a bit of debt in their 20’s, as they learned the financial ropes of living on their own, particularly because I learned these lessons the hard way myself.  But to find out on a first date that someone hadn’t been able to responsibly wrangle their finances by the time they hit their mid-30’s?  Call me cold – but it’d make me think twice about going on a second date.

Apparently, I’m not alone. When The New York Times interviewed more than 50 daters under 40 from around the country, they found that many of them regarded a good credit score as a prerequisite for a good date.  And according to a survey by MyFico.com, when asked what personal traits have helped sustain their relationships, respondents said they’re twice as likely to choose financial responsibility (22%), over sexual compatibility (10%).  The same poll also found that learning about a potential partner’s sense of humor, job, and credit history ranked above finding out about their family, interest in children, education, clean driving record, or even kissing-compatibility.

Now, let’s not get it twisted: we’re not talking how much money a person makes, what car they drive, or even their willingness to spring for a blow-out romantic gesture.  Nor am I downplaying all the RIGHT reasons to date someone (I really shouldn’t have to list these). This is simply about evaluating a person’s ability to live within their means, and keep tabs on their own fiscal health.  To some, navigating the choppy waters of the dating pool these days, a simple financial indicator like a credit score could help weed out the riff-raff.  It might even rank up there with personal values, or physical health. As the NY Times reported:

“Credit scores are like the dating equivalent of a sexually transmitted disease test,’ said Manisha Thakor, the founder and chief executive of MoneyZen Wealth Management, a financial advisory firm.  ‘”It’s a shorthand way to get a sense of someone’s financial past the same way an S.T.D. test gives some information about a person’s sexual past.”

This is because much like an STD, your partner’s sordid financial history could come back to bite: if the relationship leads to marriage, your future spouses’ credit problems will become your own. Though you may not be responsible for paying off their debt, you’ll be negatively affected when it comes time to jointly apply for those goals most couples strive for: a home loan or a new car.  And so rather than fall for someone who will only bring you down financially, isn’t it better to nip any potential obstacles in the bud before your love interests’ poor saving and spending habits start rubbing off on you?  For those being honest with themselves about their true desired qualities in a partnership…. the writing’s probably already on the wall.

Probing these sorts of questions earlier rather than later not only seems pressing, it’s a rising trend.  There are even online dating sites dedicated to matching up like-minded, creditworthy people.

As reported on ABCnews.com, Diane Mapes, author of How to Date in a Post-Dating World, says it’s not surprising that people are seeking romantic partners with a good work ethic, and who aren’t lazy.  The difference is that now, people are more willing to talk about it.

“Right now everybody and their brother is out of work, or losing a job or knows someone who is out of work. The topic is in the air…” Mapes said. “As the screws tighten financially on all of us, these [issues] come up more.”

So how do you broach a conversation like this with a new love interest?  If this once-taboo topic is now fair game, how do you make the right decision for your relationship AND your financial well-being — without coming across as a materialistic maniac?

Not on a First Date (or Even the Third)

While there’s something to be said for heading off disaster before it strikes, I think the real disaster would be to judge someone (based solely on a rather abstract, clinical number) before you get to know them and understand the context.  Assume your date will get offended — or at the very least think it’s a little petty — to inquire about their personal finances before it’s clear you’re connecting on other levels.  That said…

Use Other Clues

If the relationship seems like it has potential, money matters that do come up should be fair game for analysis. Without having to come right out and ask a person’s credit score, perhaps there’s other financial red flags to pay attention to like whether or not a person has health insurance, has ever been evicted from a home or an apartment, if they have debt collectors calling their home, etc. Of course, as things get more serious and there’s talk of moving in together, now it’s really time for a larger discussion, one with full-disclosure.  But before you do…

Know What You’re Talking About

If you’re going to have the conversation, at least know what it all means: a credit score is a complex calculation of your debts and payment history, often called your “FICO score” (so named because the major credit bureaus use a software developed by Fair Isaac and Company). FICO scores are provided by the three major credit reporting agencies: Experian, Equifax, and TransUnion.  A low score can keep you from getting a loan, or could be used as a justification for charging you a higher interest rate.  Anything above 750 is considered stellar and anything below 660 is considered a big, red flag.

Is There More to the Story?  

Before you judge too harshly, understand  that credit scores can get blemished over the slightest error, and because each credit bureau calculates a different FICO score, hidden “trouble spots” could exist that you (or your partner) didn’t even know about.  Even for someone who’s never been late on a payment, if there was a billing error in the past that went unnoticed, it could be causing the score to suffer.  If you learn your partner has a tarnished credit record and doesn’t know how it happened, encourage them to dig into the reasons why so they can get it fixed. Order a free copy of the credit report, one from each of the three major credit reporting agencies, at annualcreditreport.com. This way you’ll see first hand if they are any false reports or mistakes.

Move to Improve

Perhaps most importantly, know that a poor FICO score doen’t have to be a game-changer. There are steps you or a partner can take to remedy bad credit. First, know that you actually have to use credit, to build credit. Every so often, make sure to use your credit card(s) and then try to pay down the balance immediately. Never charge more than 30% of your credit limit (as your debt-to-credit ratio is a key variable in calculating your score, the lower the ratio the better), and keep tabs on your score by ordering a three-in-one credit report by contacting TransUnion.  If you know your score needs some boosting, try myFICO.com’s Fitness Challenge or, visit Debtadvice.org (they can also be reached at 800-288-2227).

Photo Credit courtesy of: pixabay.com/photo/2012/04/24/17/56

5 Household Items Worth the Splurge

As the saying goes, you pay for what you get and that includes household products. For those items that go through far more wear and tear, it makes sense to pay a little bit more upfront for better quality and durability. Here are five household items worth the splurge. Read more here.

As always, we want to hear from you. What’s been your most value household splurge? Connect with me on Twitter @Farnoosh and use the hashtag #finfit.

Get Money Clarity with DailyWorth

[image error]Women today control an estimated $14 trillion in personal assets. One program is asking what you’re doing to maximize your piece of that pie and offering ideas.

Many of us miss the boat financially because of a failure to manage our money properly. In fact, a poll conducted this summer by the National Foundation for Credit Counseling found that the number one financial regret is overspending, instead of putting our money where it can do us the most good.

To help remedy that, personal finance site DailyWorth is launching its Money Clarity classes for four weeks, beginning February 4, 2013. The price tag is just $99 and with that you receive the Money Clarity workbook, instructional emails and videos to guide you banking and investment options, and access to a private Facebook group to interact and share with fellow classmates.

Don’t know where to start? Money Clarity will guide you through funding the bank, retirement, and investment accounts that are best for you.

 The program is the brainchild of – and led digitally by – DailyWorth founder Amanda Steinberg, who started the site after realizing she made $200K a year but had so mismanaged her money that she couldn’t afford her mortgage payments. Steinberg took control of her finances and created Money Clarity to pass on the tools and tips she used.

Learn more about Money Clarity through DailyWorth. Registration closes January 30. Sign up for classes today and receive a 10% discount.

Prepare for New Credit Card Fees

Used to paying with plastic? You may want to rethink that practice. Over the weekend, new policies went into effect allowing retailers to charge customers more at the register.

For years, card issuers made money from “interchange” fees, or a a small surcharge to retailers whenever they processed a payment using a card. All of that changed in November however when, as part of a settlement between card companies and retailers, a judge decided that retailers would no longer be responsible for the fee – they could pass it on to customers. Starting Sunday, they can charge you up to 4% on every transaction to cover the cost of processing your plastic payment.

“This outrageous, new fee should make every shopper think twice before plunking down a credit card,” said Edgar Dworsky, founder of ConsumerWorld.org.  “If a national sales tax of 2, 3, or 4 percent were being proposed, everyone would be up in arms.” He said. “Any seller that implements a surcharge is doing so at its own peril…We are advising consumers to simply shop elsewhere to avoid having to pay any extra fees.”

The good news is while passing the fee off onto the consumer is now legal, many consumer experts say it’s not likely, with most retailers afraid it’ll drive away business. But just in case, here’s what you need to know about the new policy.

New Rules

Debit cards and prepaid cards will not be subject to a surcharge.

Retailers can only charge customers for the actual costs of processing card transactions, typically 1.5% to 3%, up to 4 %.

Stores have to let you know about the surcharge TWICE: once, with a sign on the door (or homepage, if they’re an online retailer) and at the point of sale (i.e. the register.)

Sales receipts will have to itemize the exact amount of the surcharge.

Online sellers only have to disclose that a surcharge will be imposed on the page of the website where credit cards are first mentioned. In a typical online transaction, however, selecting the form of payment is usually the final step before completing the transaction. Consumer advocates believe this late a disclosure will turn off shoppers who may feel they were hoodwinked into almost completing the buying process before being advised that a credit card surcharge applies.

American Express customers needn’t worry. AMEX has an agreement with participating retailers that prohibits surcharges applied to its cards.

Finally, shoppers in California, Colorado, Connecticut, Florida, Kansas, Maine , Massachusetts, New York, Oklahoma and Texas can relax. Their states have already passed laws prohibiting or restricting credit card surcharges.

Photo Courtesy,  401(K) 2012.

Closing a Credit Card the Right Way

Studies show that most Americans are satisfied with their credit cards. But despite being pleased with rates, rewards and customer service, a significant numbers of cards users still worry about the threat of credit card debt.

There are roughly 610 million credit cards held by U.S. consumers and the average credit card debt per household with credit card debt totals $15,956. Even more, a recent study conducted by researchers at The Ohio State University found that millions of young Americans, people in their late 20s and early 30s, will be outlived by their credit card debt.

With that in mind, it’s no wonder why plenty of consumers might consider canceling their cards and if you’re thinking about ditching yours, you should do it in a way that doesn’t hurt your credit. For one,canceling cards can effectively reduce the amount of credit in your name, which has the potential to lower your credit score. The history of that account will also eventually get wiped from your credit history (not right away, but down the road). So, if it’s a substantially old account, this could also ding your score, as credit score calculators give you extra points for cards with lengthy, positive histories.

I tapped Ben Woolsey, director of marketing and consumer research for CreditCards.com, for his advice on how to make the process a bit easier and safer. Here’s a step-by-step guide to canceling a credit card:

Consider Your Debt to Credit Ratio

Your debt-to-credit ratio is equal to the total amount of revolving credit you’re using versus the total amount of credit in your name. It’s a significant variable in calculating your credit score (accounting for about 30% of your score, in fact); the lower the ratio the better for your score. For example, if you have two cards (Card A with $0 outstanding balance and $1,000 limit and Card B with a $5,000 outstanding balance and $14,000 limit), your debt to credit ratio is $5,000/$15,000 or 30%. Should you close Card A, your debt to credit ratio inches slightly higher to 36%. If you plan to apply for more credit or a loan in the near future and desire a low interest rate, note that this could do more damage to your credit reputation. Note: Consumers with the best credit scores in this country have debt-to-credit ratios of approximately 7%.

Consider the Age

The age of your account is key, according to Woolsey. “If the card you’re considering canceling is your oldest and you have many years of history on it, it’s best to pay it off then put it in a drawer just to maintain that length of credit because that’s a factor in your score,” he says. “Then use it once a year or so to keep it active.”

Prepare to Pay in Full

You can’t completely close a card until the balance is paid entirely. You’ll need to first pay off the credit card in full or, if you can find a balance transfer card with better terms, transfer the balance (watch out for transfer fees). Tip: If you don’t want any more charges added to the card until the balance is paid, you can contact the issuer and ask that the card be frozen until the balance is cleared and the account is closed.

Contact the Appropriate Representative

To begin the process of closing the account, call the customer service number found directly on your credit card, monthly statement or the issuer’s website. Inform the rep that you are canceling the card.  Some companies will allow you to cancel without speaking to a representative but other may be less obliging. “Be prepared to have the customer service rep try and talk you out of closing your account. They will be very convincing, so if this is what you have decided, politely let them know you want the account closed immediately,” says Woolsey.

Send a Letter

If you need added insurance that the card is caput, write a short cancellation letter to the card issuer to request written confirmation of the account’s closure. “This is a must, and is to be done in conjunction with the phone call,” says Woolsey. The letter should include your name, address, phone number and account number and details from your phone call. Also, state that you want your credit report to reflect that the account was “closed at the consumer’s request.” It is very important to report that the account was closed in good standing and not the result of nonpayment or a settlement, as it could damage your credit.

Keep Excellent Records

Finally, as you go through the process of canceling your credit card, keep notes of your correspondence: to whom you spoke, what they said and when. It’ll come in handy if there are any discrepancies in the process.

Photo Courtesy, Andres Rueda.

Aspiring Filmmaker Pursues Dreams, One Rental at a Time

Exterior, Artist Housing

In 2009, prompted by a hard-hit real estate market and some promising entertainment connections, real estate consultant Kelvin Xuna left his gig in Miami to pursue his Hollywood dream.

After his TV pilot went unsold and subsequent writing jobs proved to be unprofitable, however, the Harvard Housing and Urbanization grad found himself in a financial bind: “I got to a point where I needed something to pay the rent.”

So what’s a cash-strapped film entrepreneur to do? He took an even bigger risk. “I leased the biggest place I could afford,” says the 30-year-old.

This was not the first time Kelvin has found himself in a money crunch. Back in high school, he moved into the basement of the 5- bedroom house his mother bought in the aftermath of his parents’ divorce. To make ends meet, they rented the four spare bedrooms to students from the University of Colorado at Boulder where Kelvin ultimately earned his undergraduate degree in architecture. “I helped out with everything,” he explains. “I showed and leased the rooms. Cut the grass in the summer, plowed the snow in the winter. Handled maintenance requests. I even evicted people.”

Interior Living Room at Artist Housing

And so it was from a 3-bedroom duplex that Kelvin leased in 2010 that his business, ArtistHousing.com, was born. The struggling real estate market helped him score a deal leasing the property, which he furnished and quickly re-leased by the room to fellow artists for a profit. He did the same in the duplex next door. “My properties are more than just a bed and a roof,” he says. “They are environments conducive to the creative process and places for artists to collaborate and grow and become successful.”

Today, Kelvin plays the role of landlord to nearly 50 tenants across a growing number of properties in the Los Angeles area. He offers month-to-month leases on a variety of spaces that range from a shared bedroom ($400) to a warehouse loft space ($4,200). His rooms come furnished or non-furnished at no extra cost and share access to amenities that vary by property, but can include: home theater systems, backyard fire pits, hot tubs, production space and equipment, and free laundry facilities.

His unconventional formula has proven to be one of the few success stories to come out of the recent housing crisis. His choice to lease kept his startup costs low, while eliminating the risk of falling property values in a bearish housing market that has yet to fully recover. His strategic focus on LA’s large, yet often underserved community of starving artists has also been a huge factor in his success. “Paying the rent is no longer a problem,” say Kelvin.

Kevlin Xuna opened ArtistHousing to help fund his filmmaking pursuits.

In spite of all his real estate success, Kelvin has not abandoned his Hollywood dream. He frequently collaborates with tenants on film and music projects. And his goal of building a four-story mixed use live-work artist space with studios, stages, and equipment is now within reach.

ArtistHousing.com serves two purposes for the aspiring filmmaker:  It pays the rent and it gives Kelvin the opportunity to work in a creative capacity with his growing network of artist-tenants.

Hollywood is full of starving artist roommate success stories. From Hackman and Hoffman to Sandler and Apatow to Damon and Affleck, success has proven time and again to foster success.

With a sweeter setup and a wider network, ArtistHousing.com just takes the established Hollywood roommate formula to the next level.

Company Benefits You Wish You Had

Good News for 9-to-5 workers: a survey by job search giant GlassDoor.com found that corporate perks are on the rise. The best perks come from companies you might not expect. In fact, some of the most innovative, and indulgent, benefits come from lesser-known brands, start-ups and forward-thinking employers demonstrating lots of goodwill toward their workers. Jealous? Here are some company benefits you wish you had. Read more here.

And, as always, we want to hear from you. What are some corporate perks you have and love? Connect with me on Twitter @Farnoosh and use the #FinFit.