Harlan Vaughn's Blog, page 65
June 25, 2015
Airbnb: Us and Them
Also see:
I rented an Apartment to Airbnb in NYC
Airbnb First Month By the Numbers
Airbnb by the Numbers: Q1 Update
In Praise of Humble Beginnings
Many strong opinions
I’ve been meaning to talk about this for a while because it seems like there’s a lot of opinions about Airbnb these days.
Specifically, I’d like to talk about what it’s like being an Airbnb host, how it’s been staying at Airbnbs as a guest, and all the others that think it’s a great thing… and a terrible thing.
The users
People who book lodging on Airbnb tend to be millennials who aren’t looking for a traditional hotel.
The downsides:
You won’t receive points for your stay
There may or may not be a “welcome amenity”
There are NO “upgrades” – WYSIWYG
There may or may not be breakfast included
You’re at the mercy of an individual
The upsides:
If you need multiple beds or rooms, it’s much cheaper than a traditional hotel suite
You can stay in real neighborhoods as opposed to tourist areas, and feel like a local
When it’s good, it’s great. People I’ve met are open and kind, and I didn’t miss the hotel experience
It’s usually more private. No elevators and desk areas to pass through
More negotiation is possible, especially in the off-season or for longer stays
Lots of obscure locations where there might not be hotels – get a unique experience
Now, if your host doesn’t show up to let you in or leaves you hanging… that’s a pretty bad scenario. Fortunately, Airbnb has lots of verification systems, and heavily encourage reviews.
Bleep happens of course, but when you’re coming off a long flight, you don’t want an excuse, you want to get in and settled.
Most hosts I know have a Plan B. And a Plan C. And a… yeah.
When I’ve stayed at Airbnbs, I’ve never had an issue getting in.
Be communicative, give a heads up if you’re delayed, and stay in touch. It’s all about the little things, but they go a long way.
Considering a suite in a hotel can be over $1,000, you can save yourself a bundle of money by booking an Airbnb. Especially in expensive cities like New York or San Francisco.
The hosts
There are a lot of motivations for someone wanting to become an Airbnb host. Including the most obvious: money.
Good vibes
When I stayed at an Airbnb in Honolulu, it didn’t take me long to run some quick calculations in my mind and mumble “Holy hell” to no one in particular.
Same when I visited a friend at an Airbnb in Munich for Oktoberfest. The host was a friend of his and he knew the “financials” of the apartment.
I was finally getting into a situation where I had some liquidity. And I thought, holy crap, I could do this in New York!
As with all brilliant ideas, a zillion people were already doing it. There was a subculture, even. A big one.
My motivation is to pay off my student loans, nagging debts, and become financially independent.
My intention is create places where anyone would feel welcome.
I figure if others are doing it, I might as well throw my entry into the pot. And I can try to make something really nice out of it.
Those who are “they”
Finally, there’s everyone else.
Politicians who support and do not support
Landlords who don’t like profiteers and don’t mind one way or the other
People who use and abuse the system
People who hate it and want it gone
People who think it’s totally legal
People who think it’s completely illegal
Supporters who think it’s the best thing ever
All kinds of users
All kinds of hosts
So there’s lots of room for…
Arguments
Airbnb is ruining the housing supply
New York is crowed. The vacancy rate is below 1%. You’re seriously taking an apartment off the market?
Yep.
New York is crowded. But there are plenty of market-rate apartments out there.
A simple search on Streeteasy shows me over 200 apartments in the price range of what I have – within an 8 to 10 block radius. And that’s just what’s listed.
The argument is… if everyone did it, then there wouldn’t be any more apartments left for people to live in. The housing supply would diminish.
That’s very true. At that point, it will probably become way more regulated.
New York is a city in constant flux. People are in and out all the time. I think we are far off from Airbnb threatening the housing supply.
But what about rent-stabilized apartments?
A-ha. This is a good one.
Because it really does take away a valuable resource from the housing supply.
But landlords of rent-stabilized (or controlled) buildings are far more aggressive about their lease terms. In the few instances where a rent-stabilized apartment has been found on Airbnb, it’s been shut down pretty quickly.
I don’t agree with this at all. I’m paying market rates for my apartments.
None of them are rent stabilized and none of them are special housing.
While this does happen from time to time, it’s usually found out and dealt with quickly.
Isn’t Airbnb illegal in New York?
It’s actually a huge gray zone. Technically, you’re supposed to have written permission from the landlord before you can list an apartment on Airbnb.
Because the laws are outdated and vaguely worded, it’s hard to enforce them one way or another.
It really depends on the landlord… that is, if you’re renting your apartment.
If you own it, you can do what you want with it (within the bylaws for condos and co-ops).
But renting is a different animal.
If you’re dealing with a luxury apartment or a co-op building, Airbnbs are not gonna over well.
The other issue has to do with taxes. I’m paying business taxes to the government, but not hotel taxes to the city… yet. That legislation is being worked on every day.
I’m a hotel. But I’m “hotel-like.” This is where politics and the law can’t decide what’s what or how to treat it.
If laws are passed, we’ll of course have to follow them. Until then, we’re not breaking the law if there’s nothing to break.
Permission is permission.
You’re profiteering
This is the thorniest part.
There are lots of ways you can profit from your apartment. You can work from home and write it off your taxes. You can store supplies for your small business. You can have clients over to pay you for your services.
If all the landlord wants is the market rate for an apartment (because that’s his or her investment) and all you want is the market rate as an Airbnb (because that’s your investment), there’s generally not an issue.
And it’s not like the landlord can’t Airbnb their own apartments. Most of them are hands-off and hire supers or property management companies to deal with the day-to-day.
But if they’re very involved, they’re either going to think, Whatever, or, I don’t care.
Or they’re gonna be pretty miffed that you’re making money off their property that they’re not making.
In short, it comes down to the arrangement you have and what the landlord thinks about it.
I keep my Airbnb apartments cleaner and more maintained than the one I actually live in, so my landlords love it.
It’s spotless, and I’m always making little improvements. I’m observing the campsite rule after each guest, and improving it.
It’s dangerous
All those transients coming in and out all the time…
For all the people I’ve hosted, I’ve never had anything go missing or broken. OK, one guest broke a cup, but you get the idea. No bad experiences.
Airbnb has a great peer review system. I only allow people to book that have good reviews from other hosts. Airbnb also keeps your ID on file, and you are linked to your reservation.
Most hosts also require a security deposit. So if something is missing or broken, we can use it to pay for anything damaged.
It’s no more dangerous than any other place where people are coming in and out all the time.
As with anything, there have been horror stories.
My personal experience has been great. Just like living in New York, I say, use common sense, don’t do anything stupid, and if it doesn’t feel right… don’t do it.
Moral, ethical, legal issues
What happens if a guest trips and gets hurt in your apartment?
In your building?
That can be pretty scary for all involved, especially if you were sued.
What about other potential legal issues, like fines? Or eviction? Airbnb has stood by their hosts in the past, but what’s to say the worst thing couldn’t happen?
Is there a moral and ethical stance to take with Airbnb? Is it wrong? Or is it just another part of the “sharing economy”?
You can rent out your bike, your car, your services… why not your apartment? Where’s the line?
As always do what you are comfortable with.
It’s complex and might not last
There are too many issues at hand. Too many interests.
This all might change tomorrow. If it does, that’s OK by me. I’ve had a great time hosting people and am thankful for the experience.
If the laws change one way or another or if something drastic happens… I’m ready to fold, OR keep going.
Some say it’s a legal hotpot waiting to boil over, and that lawyers are going to make a killing when everyone finally gets sued.
Others say if it’s too good to be true, it probably is.
Like Uber, it’s shaking things up. But judging from the company’s incredible growth and the huge demand for alternative hotel arrangements, people seem to like it.
I’m caught in this zone where I’m enjoying myself and also kind of waiting for the other shoe to drop.
I just hope I can get my student loans paid off before that happens. Until them, I’m going to try to do my best to be a good host to visitors.
Bottom line
I personally love the service and platform of Airbnb (that’s my link, btw. If you sign up, you get $25 off your first booking of $75+). It’s helping me to dig myself out of student loan debt. And I love meeting guests from all the world, and having positive spaces to share with them.
Perhaps I’m inviting the devil in for tea, but I’d love to hear what you think about Airbnb. Love it or hate it? Or somewhere in between?
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Is Living In Cities Worth It?
I recently discovered a blog called Financial Samurai that got me thinking. Particularly the articles about living in cities:
Living In An Expensive City Can Make You Richer, Happier, And More Diplomatic
East Coast Living – Is It Really That Bad?
What If You Don’t Want To Eat Dog Food And Live In The Middle Of Nowhere In Retirement?
How Do People Live A Comfortable Life Making Less Than Six Figures In Expensive Cities?
I’ve mentioned before that living in New York forever might not be in the cards for me as part of my path toward FIRE.
It’s simply a shift in priorities.
The Good Things About Living in Cities
Note: you can replace “New York” with any international city. I just say New York because I’m here.
These streets will… inspire you?
Don’t forget the car
If I leave New York, I’d have to buy a car. I lived in Phoenix about a decade ago, and by far my biggest non-housing expense was my car.
Granted, I was younger and my insurance was higher. I didn’t have credit or the money to buy a car outright, so I got a terrible interest rate because I financed.
My car also overheated all the time (120+ degree heat I guess does that) and I had to get it repaired at least 3 times every summer.
And gas to get to and from work.
My rent in Phoenix (this was back in 2003, I’m sure it’s higher now), was ~$600 a month for a 2 bedroom apartment (my half was $300).
I’ll never forget about much my car payment was because I saw that number monthly for 5 years: $238.11.
My insurance fluctuated, but was about $150 a month.
And gas was around $50 a month, too.
So my car cost me $400 a month and rent was $300 a month.
But now that I’m in New York, my 1 bedroom in far-out Brooklyn is $1450 (my half is $725).
And a monthly MTA pass is ~$117.
Rounding up, that’s $850 per month.
So I’m really only paying $150 more for rent + transport in New York City in 2015 than I was in Phoenix in 2003 (kinda crazy when you think about it).
And there are many more opportunities here in New York. Average salaries are higher.
Also, I don’t miss driving. At all.
My Airbnbs
I now have 4 apartments listed on Airbnb.
I’m getting ready to write my Q2 update now that it’s almost over, but suffice it to say it’s better than my Q1 update.
It’s fun being on the other side
I couldn’t pull in those prices anywhere else, except maybe San Francisco.
I checked Airbnb prices in Chicago, and don’t think it holds a candle to operating them in New York.
It’s a valuable opportunity that is helping me with my FIRE.
Trust me, I’m not wasting it.
Food + Drink
Financial Samurai thinks all beers in New York are $5 and all lunches are $15+.
Not quite. I know plenty of bars with beers for $2 or $3 and lots and lots of $7 (and under) lunch deals. Keep in mind that New York is saturated with restaurants and that they must compete with each other in the form of special deals – and quality.
You can get great lunches for not a lot of money, if you know where to look.
#summer #margaritas #nyc #les #yassss
A photo posted by Harlan Vaughn (@harlanvaughn) on Jul 13, 2014 at 11:29am PDT
I also shop at Costco, which has little variance in cost nationally – even in NYC. So I don’t feel like I’m spending that much more than the average person on groceries. Or restaurants.
Airports!
I have to get out often. Fortunately, most of the world is reachable by 1 or 2 flights from New York. I love love love having such an easy exit when I need it. I don’t look forward to regional airports and an extra connection.
The Not-So-Good Things About Living in Cities
Home ownership can be out-of-reach
If you want to buy something in Manhattan, you need to have at least half a million dollars. And preferably over a million. Oh, and there’s no FHA loans here – you’ll need that 20% down payment. That is, if an all-cash buyer doesn’t beat you to it. And if you can find a bank that’ll give you a mortgage on a condo or co-op. Now, there are 1 bedroom co-ops in my neighborhood that start around the $300K mark. I’d still need $60,000 dollars for a down payment and around 3% more in closing costs. In short: there is an extremely high barrier to entry here. Especially considering that $300K can get you a lot more house in… well, pretty much anywhere else. Ah, but homes don’t appreciate in other places quite like they do in New York City. It’s worth it to have your home equity in New York. But man, is it an expensive headache to get started. I can understand why others would rather just buy a nice place somewhere quiet. Heck, I might be one of ’em!
The commute is painful
It is. I swear the MTA hikes fares and reduces service on purpose. My “commute” is about 35-45 minutes during the day. Not bad. But it can take over an hour if the trains bleep up or run behind schedule (which happens all the time).
Worst commute ever this morning… Stuck on a packed train with sick passenger. No D or B trains. #NYC pic.twitter.com/dVkGutC5dP — Craig Elimeliah (@CraigElimeliah) January 30, 2015
Driving on a crowded highway isn’t exactly great, either. And it can be a lot more stressful than riding the subway for an hour.
Although after 10+ years of living in cities, I’d say that’s up for debate.
I miss fresh air and hiking
I do. Breathing the air here in New York I’m sure has taken 5 years off my life. And I miss seeing mountains in the distance. And being able to drive away for the weekend.
Renting and car and driving out of the city is such a monumental hassle.
Competition is fierce
This maybe shouldn’t be under “Not-So-Good” because competing makes you better.
It also makes you tired as hell.
This is one where a healthy, positive attitude can make all the difference.
Living in New York, you must understand:
Someone else is always more skilled than you
Someone else is always makes more than you
Someone else is always younger than when you started
You are completely, 100% replaceable at any organization, at any level
Someone is waiting for you to mess up so they can take your place
Pressure = Stress = Death
So what?
But with all that considered, who cares? Your own happiness is up to you.
I focus on doing my work and pay little attention to anything else. This is good and bad, too. This is the thing you really must make clear in your mind about where you want to live.
I get tunnel vision. I forget what I’m working for sometimes. Balance is needed everywhere, but especially here. I’ve seen New York go through a lot of people.
Also, there are opportunities at every level. The upward mobility is here. Lateral career moves are here. Who wouldn’t want to do the same job for more money?
I say get as much as experience as you can and leave when you need to. Anywhere else, you’ll get to be “that guy (or gal) from New York (or Chicago or San Francisco or LA or wherever).”
Priorities are always changing.
It’s NOT About the Money
All things being equal, the money evens out. Yes, homes cost more in cities. You make more, too.
For me, it comes down to everything else.
What kind of life I want
How much house I want
What I want my commute to be like
If I want to give up work opportunities for other interests
Joni Mitchell said it best:
“I’m gonna make a lot of money and then I’m gonna quit this crazy scene.”
I want to enjoy my opportunities a little longer. And then reassess.
Bottom line
So, is living it cities worth it?
Yes, if you prioritize opportunity over everything else.
Not to say there aren’t opportunities in other places. But there are more of them in cities.
And when you’re done prioritizing opportunities and shift into personal interests or a slower pace or bigger home or family, leave. Simple as that.
People I know that live in rural areas are just as busy as I am in New York. Don’t fall into “The Busy Trap.”
It just goes to show you: life is what you make of it.
And life goes on.
What’s your take on living in cities? Is it worth it… or nah?
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June 24, 2015
Get FREE Airline Lounge Memberships Through Business Programs
Also see:
Review: US Airways Club @ CLT / Charlotte
Free Admirals Club Membership Through Business Extra? Yes, please!
I love going to the Admirals Clubs. And I also love not paying for them.
I’ve written about this before. But now my membership has expired, and I’m about to redeem for another free year of Admirals Club membership.
I don’t have the Citi AAdvantage Executive card or the Citi Prestige card. They’re fine in their own right, and I’ve had my eye on the Citi Prestige for a sec, but I won’t need it for its lounge perk.
The Admirals Club @ CLT can be a nice place to hang and get some work done
I’ve been doing this since the Amex Platinum Card nixed the benefit at AA Admirals Clubs a couple of years ago.
If you book travel for other people (who don’t care about the points), you can easily build up enough to get a free membership yourself.
All the award opportunities
You can redeem for flights, upgrades, status, or lounge access via Business Extra.
You’ll need to sign up and earn enough points before you can redeem awards.
Not only can you redeem for Admirals Club memberships, but also for any flight that’s available as a normal AAdvantage award. So that’s good to know if you ever need to do it that way (though you’ll have to call to book it).
Redeem for flights, upgrades, status, or lounge access
For what it’s worth, Gold status is 2,400 Business Extra points.
Might be nice to be Gold until you can fly enough to earn a higher level
But I like the Admirals Club memberships.
The value of Admirals Club
These are real memberships that are ordinarily $500 if you don’t have any status.
Admirals Club membership rates
You can bring in 2 guests each time you visit.
You can bring 2 guests
I’ve used the lounge access many times to bring in friends and family. Having a drink and using the free wifi is a nice perk before you head to the gate.
All you have to do is give the desk agents your AAdvantage number when you go in, and that’s it.
You don’t need a boarding pass
You don’t need to be flying AA or have any type of status
And you don’t need to be flying in a certain cabin
It’s a really nice benefit that I’ve gotten a lot of use out of. (Ended that sentence with a preposition, sorry.)
How to redeem
After logging in to Business Extra, hover “Earn & Redeem Points” until the drop-drown menu appears, and then click “View Awards/Redeem Points.”
When you have enough points, click “View Award/Redeem Points”
Select the award you want from the menu at the top. The Admirals Club membership is under the “Admirals Club” tab.
Enter in your AAdvantage number and click “Confirm.”
You’ll assign the award to an existing AAdvantage member
To make this step easier, you can add the person as a traveler in your account so their info will already be saved.
Obviously, make sure they have an AAdvantage number before you do this. Or make sure you have it so you can assign it correctly.
Once you click “Confirm,” that’s it.
It’s literally 1 step.
After that, you’ll get a confirmation number.
It is done
The membership starts on the day the award is redeemed in AA’s system.
But you do NOT have to wait for a membership card. You can start using the membership on the day they process it.
It usually only takes 2 or 3 business days for the membership to become attached to your AA number.
Here’s what AA has to say about it:
They say up to a week, but it’s usually faster
After that, it’s good for a whole year.
Other airlines that offer this
Delta
Update 6/24/15: Reader, Brian, commented:
SkyBonus from Delta Air Lines is only available to those small businesses which have a minimum spend of $5,000.00 — otherwise, the account is suspended or closed.
Good to know. Thank you, Brian!
Delta also offers SkyClub memberships through their SkyBonus program.
I never needed to redeem for it because I’ve always have the Amex Platinum Card. But this could be useful if you need a supplementary membership for a partner or spouse since they’ll charge you $27 per guest when you enter with the Amex Platinum Card.
SkyClub membership is 100,000 SkyBonus points
United
United also offers United Club memberships through their PerksPlus program.
United’s PerksPlus program can get you lounge membership, too
So if you book travel for others on American, Delta, or United, be sure to rack up extra points… especially if the travelers are not interested in using the points.
Bottom line
I’ve gotten a few years of free lounge membership at Admirals Clubs without having to pay annual fees on a credit card or pay for the membership outright.
It’s a nice little shortcut that you should take AAdvantage of (see what I did there?) if you can.
Have you used the airline business programs for any other redemptions? Would love to hear about them!
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June 23, 2015
State of the Game: Is MS Worth It Any More, Cashback, Chase, and More
Also see:
State of the Game: What I’m Looking Forward To (MS, Points/Miles, & Status)
If you want a laugh, check out my previous “State of the Game” post. In it, I talk about looking forward to REDbird, loving Club Carlson, and wondering how Evolve Money would play out.
And now, REDbird is so, so over, I declared Club Carlson dead to me, and haven’t messed with Evolve Money since they started charging a 3% fee on credit card bill payments.
I also lamented the loss of Vanilla Reloads and Amazon Payments, and was just switching from Bluebird to Serve.
Manufactured spending
Dude. MS is DONE. Right? What is left?
I read on the FlyerTalk forums about people MSing $20K-$50K a month… HOW?!
People aren’t talking about what they’re doing. And I don’t know how to do it either.
The only ace in my little MS hole is buying PayPal My Cash card at CVS to pay rent on RadPad.
RadPad with PayPal debit card… S’all I got
I hear people still MS with Bluebird. But there are no Walmarts here in New York, so I can’t mess with that. I don’t even have a Bluebird card any more anyway.
We kinda thought for a second that Evolve would be a good way to liquidate PayPal My Cash cards by using the PayPal Business Debit MasterCard, but nope. They charge a 3% fee on that, too.
So I don’t know what the next thing is or what people are doing… is MS even worth it any more?
Cashback bonanza
Ever since getting FIREd up, I’m loving the Fidelity Amex more and more each day.
I’m also thinking about getting the Discover It card and taking advantage of double cash back on the first 12 months… including quarterly category bonuses, portal shopping, and regular spend.
I might Discover… It.
Frequent Miler had a post about it that put me over the edge. But, I’m going to take his advice and get it in late July to get the best categories repeated next year at this time. I haven’t had a nice app-o-rama in a while anyway.
Tsk, tsk about Chase
Speaking of app-o-ramas, it looks like Chase is going the way of the dodo.
Chase Bank, extinct since June 2015
I wonder if other banks will start following suit.
If it becomes more difficult to open new cards, and if manufactured spending is difficult, what is left?
Man, the recession was great for the points and miles hobby. Airlines and hotels were throwing points out like candy. And now that flights are full and hotels are doing fine, they don’t need to have great loyalty programs or incentive spend.
The hobby will march forward, but to where? And when?
Until the “next thing” pops up, I’m gonna stick to loading up my Roth IRA for free.
Thank you for being a friend
I have plenty of AA miles and a nice Ultimate Rewards balance. Until I get another travel goal in mind, I’m going to focus on my FIRE (financial independence, retire early).
Airline status
Remember when I said I was going to do the AA Platinum Challenge again this year? I… didn’t.
While the extrAA miles are nice (and I do think AA is still the best airline program, for now anyway), I simply don’t have that many paid flights these days.
I consider myself a free agent when it comes to AAirlines. I’ll fly whAAtever gets me there the cheapest when I pay, and whAAtever I have the most points with when I redeem. Easy as that. (K, I’ll stop with the AA thing now.)
I’m still waiting on the other shoe to drop with American anyway. 2016 is gonna be a bloodbath a la United, Hilton, and Club Carlson, I think.
Hotel status
Speaking of other shoes to drop, I’m looking at you, Hyatt.
American needs a hotel partner like United has Marriott and Delta has Starwood, and Hyatt or IHG look like the best options right now (or Hilton since both have credit cards issued by Citi… hmm?).
American and Hyatt sittin’ i a tree…
I love Hyatt, but I suspect they’ll devalue soon too.
In fact, I expect IHG to do something shitty in 2016 (though I recently got an IHG card), and for SPG to make some changes (not that I ever liked Starpoints, anyway).
Until the next recession, of course. Then they’ll all be printing points and miles like crazy again.
But now that I’m done trying to like Club Carlson, I really want to like Hyatt. It’s a trepidatious loyalty. Because I keep expecting them to do something crazy.
Bottom line
It’s a barren, battered landscape out there right now.
Mars? Nah, that’s just the points and miles wasteland right now
In lieu of everything, I’m going to down, focus on my FIRE, and get some cashback while I drain my current balances. Points accounts are NOT savings accounts (but they can be insurance). Earn and burn, baby!
So talk to me.
Tell me about:
Your predictions
How you liquidate PayPal My Cash cards (or if you use RadPad)
MS if you care to share
How you see things playing out in points and miles land
Or, if you want, come tell me in person at the points and miles Meetup tonight.
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A Few Apps + Sites I Like to Save Money
Also see:
Ibotta: Get Cash Back When You Shop
Use Paribus to Get Money Back If There’s a Price Change
I’ve been posting these piecemeal but wanted to get them all on the same page.
Yep, save real money
As you guys know, I’ve been getting into FIRE (financial independence, retire early) and am try to cut costs wherever possible.
So I’ve been exploring new websites and apps beyond the usual points and miles stuff, and wanted to share them.
Ibotta
Link: Ibotta
Link: My Review of Ibotta
Love this app. There’s more on there than you’d imagine. I’ve only had the app for a couple of weeks and have already transferred $30 to my bank account for buying things I was going to buy anyway.
It was also kinda like turning over a rock and seeing a bunch of ants that you didn’t know were there. Cuz I found like 20 of my Facebook friends and no one ever told me about it.
So now I wanna tell you about it.
Ibotta is pretty fun
You select products you’re planning to buy anyway, and watch a short video, take a survey (it takes 5 seconds, literally), or answer a question. Then your discount is “unlocked.”
After that, you select your store, click “Redeem,” and take a picture of your receipt.
Ibotta then has 24 hours to put the money in your account. But they’ve gotten me my cash within a few hours, usually.
Lots of rebates on common household items, from lots of stores
Best of all, there are frequent bonuses to earn even more money. So they turn it into kind of a game.
I use it to buy things I need for my Airbnbs. And then I get the cash back via Venmo.
Real cash money in my bank account
Easy to use and really fun. I’m… kind of addicted.
Paribus
Link: Paribus
Link: My Review of Paribus
A service that scans your email for items you’ve bought, and then submits price adjustment requests for you when a price drops.
How Paribus works
Some people didn’t like the email scanning part of it (see comments on that link).
But I use a separate email for online shopping, so it doesn’t bother me. And I’ve already gotten a few bones back from them, too.
It’s all automated, so it happens without any action on my part. Can’t complain about getting easy money.
They send an email when you get cash back. Those are nice emails to get.
SaveUp
Link: SaveUp
Loving this. A site/app that turns saving money and paying down debt into a game of sorts.
They give you “credits” that you can use to win prizes. Who knows if you’ll ever actually win or not, but whatever. I love the positive vibe of the website. It encourages saving and bill payment, and it’s a fun little thing to do each day.
Enjoying the motivation as I move toward FIRE
I look forward to getting my credits and using my 5 plays per day, ha! I wouldn’t bet that I’ll ever win anything, but it’s free and… you never know.
A few of SaveUp’s prizes
Plus, it’s nice to feel motivated about saving and getting out of debt.
So what’s the downside? Exactly.
Bottom line
It’s always good to save a few bucks. Especially if it’s free or automated, like SaveUp or Paribus. And on stuff you’re gonna buy anyway.
Ibotta does require your engagement, but I rather like it. Plus, if you join through my link, you’ll be on my “team,” which could be fun. Just don’t judge how much beer I get each week. 
June 22, 2015
Tomorrow: NYC Miles and Points Meetup! 6pm in East Village!
Grab a drink and mix
If you’re in New York, come geek out for a few hours with other points and miles aficionados.
We talk about our trips, routing rules, best redemptions, the pros and cons of various business/first class products, and other awesome topics.
I’ve always had a great time and look forward to meeting new peeps!
The 411:
Professor Thom’s, 219 2nd Avenue, New York, NY (between 13 & 14 St)
Tuesday, June 23rd, 6-9pm
If you can’t make this one, join the Meetup group and come to the next one!
Bottom line
Come grab a brewsky and introduce yourself to other people who love points and travel!
Say hello if you see me!
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Hotel Review: Radisson Blu, Limerick
Also see:
Hotel Review: Radisson Blu Royal, Dublin
Hotel Review: Radisson Blu, Galway
Special Guest Review: Exploring Ireland’s Radisson Properties
After an underwhelming experience at the Radisson Blu in Galway, we hopped in our rental car and drove the ~2 hours to Limerick.
Through Shannon to Limerick
It was a pretty easy drive, except for the zillion confusing roundabouts. And the fact that I don’t really know how I got to the Radisson Blu in Limerick other than dumb luck and some hairpin turns.
It’s literally one weird turn off the highway and then a narrow road into a parking lot that also randomly has a hotel in it. There seemed to be nothing around, but apparently it was only 15 minutes into downtown Limerick.
We didn’t end up going into the city because there was a marathon going on that day. Traffic was terrible and there was no parking. Instead, we drove to Killarney National Park for a day trip (though I could’ve spent several days there).
In a forest in Killarney #Ireland
A photo posted by Harlan Vaughn (@harlanvaughn) on May 3, 2015 at 2:31pm PDT
Anyway, we got to the Radisson Blu in Limerick and had a bite to eat and put our things down before we left again. But it was a fine crash pad.
Irish beers at the bar
Arrival and check-in
Unlike the Radisson Blu Royal in Dublin and the Radisson Blu in Galway, we were not upgraded to a business class room. So, no free breakfast in Limerick. Which was fine. It’s nice when it’s unexpected.
We checked in with a friendly desk agent and the GM of the hotel. You could tell he really enjoyed running all the moving parts of the hotel. Super nice guy.
He gave us some driving tips, showed us the restaurant and bar in the hotel, and offered to help us with our bags. Very welcoming staff here.
Lobby of the Radisson Blu Limerick
It’s not the most updated or modern hotel in the world. Some of it’s not… run-down but just… well-maintained older stuff. But it doesn’t really need a refresh. Does that make sense?
It’s not really near anything, so I wondered how this location was strategic for the Radisson brand. Who are they trying to reach?
Since there’s nothing near the hotel but the highway you can either drive, pay $50 for a taxi round-trip into town, or deal with their food options. If you’re tired and don’t want to pay for a taxi, you’re a captive audience.
Lobby seating
Like the Radisson Blu in Galway, the “spa” part of the “Hotel & Spa” was a separate but attached building.
Kind of isolated and bizarre, but whatever. We got back onto the highway and explored more of Ireland.
The room
Your basic hotel room. Nothing over-the-top, but a fine place to sit and type, and crash in the evenings. Good, fast wi-fi. Clean. Some things a bit dated.
But I kinda liked that somehow. It fit the feel of the place.
Hallways of the Radisson Blu Limerick
Room 304
View upon walking in
Safe, fridge, and tea selection
Closet and hangers
The bed
See what I mean so far about the “not modern but not dated either” thing?
Desk
Sitting area
The surroundings of the Radisson Blu Limerick (View from the window)
View of the room from the window
Bathroom
Shower
This Works toiletries
Overall, a fine room to serve as a base for Limerick and Shannon.
If you want/need to be in the center of things, this is NOT the place for you. It’s pretty isolated, and a bit difficult to find (especially if you’re still getting used to driving on the left side).
There are signs that point to the hotel, but they come at you pretty fast, so pay close attention and go slow if you can. For what it’s worth, the directions I pulled off Google maps ended up not being accurate. So without those signs, I would’ve definitely been up the creek.
Bottom line
I can’t speak much to the property, spa services, or breakfast as I was only there for 1 night.
The reason I booked here and not in Cork was because I was in Ireland for an odd number of days, so couldn’t use Club Carlson BOGO for 1 of the stays.
Because this one was only 15,000 Club Carlson points, I decided to bite the bullet and not get the award night free. (Note: this feature is has since been removed. RIP, Club Carlson Visa.) It is still 15,000 points per night though as a Category 2 property. Not a bad redemption.
This would be a good place to stay if:
You’re flying into Shannon and want somewhere to crash for a night (the Park Inn Shannon Airport is 28,000 points per night)
You want to see Limerick and don’t want to deal with the traffic or parking overnight
Like me, you’re driving from one part of Ireland to another and just want a breather
You want to use points to fill in a gap between other stays
I can’t really say anything bad about this hotel, but I can’t rave either. It was fine for what it was, and I’d stay there again if it fit into my travel plans.
I highly, highly recommend seeing some of southern Ireland (Dingle Peninsula, Killarney National Park, County Cork). My god, it was beautiful.
Oh yeah, and if you couldn’t tell, I now have the gift of gab. 
Kissing the Blarney Stone!
Cheers!
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June 15, 2015
In Praise of Humble Beginnings
I was reading an article called “How to invest even if you’re treading water financially” via Get Rich Slowly and a certain part jumped out at me (bolding and links mine):
“Don’t despise small beginnings.
The first steps in any endeavor are humble. Gustave Eiffel, famous today for his tower in Paris and the Statue of Liberty, started as an unpaid assistant in a foundry. Setting aside $10 a month might feel meaningless: “What difference can that ever make?” That’s wrong. It makes a difference in many ways:
It breaks the ice. You’ll never again wrestle with the question: Should I start?
It forms a base: It is easier to add a dollar to an existing savings account than it is to start with just one dollar.
It creates a habit.
And best of all, it sets in motion the power of compound interest.”
Start somewhere
Even the title of the article made an impact with me. Because I do slash DID feel like I’m treading water. But I refuse to wallow in it. Instead, I’m going to create small, actionable steps that I know will work.
When I started using Evernote, I was overwhelmed with it.
Even Evernote took some warming up to
Even though I signed up in August 2013, I didn’t actually create a note until September 2013. And I didn’t really start using it until mid-2014, 9 months later. And now I use it all day every day for a steady stream of uses.
Seeing my savings account in online banking would make me feel kinda shitty.
A free account that I never used… until 7 weeks ago
When I opened my Chase checking account in college, they threw in a savings account, too.
And I let it sit there for 4 years with nothing in it.
I didn’t have a use for it. Because I wasn’t saving.
And over time, seeing the $0 balance started to make me feel bad.
Then I resolved to start saving 10% of everything I make. I mean EVERYTHING.
Adding the first $20 felt anti-climatic.
But remember like attracts like.
Now I have over 13,000 notes in my Evernote account.
And I’ve saved nearly $3,000 since March 17, 2015. That’s already 5% of my $60,000 goal. In just ~8 weeks!
Just start
Don’t wait for a “day”
When I wanted to start saving 10% of everything in mid March, I thought, “Nah, I’ll wait until the 1st. Easier to track.”
And then I followed that with, “You know what. NO. I’m starting today. Today is a good day to start.”
People (including me) often say they’ll wait for:
New Year’s Day
Their birthday
The 1st or 15th of the month
Some holiday
Next check
Next time
No.
Forget all of that. What’s today? June 15th? June 15th is a great day to start. So is every other day.
Growin’ up
My socioeconomic background isn’t exactly the most thrilling. I’m from a small town in rural Mississippi. My parents were/are not exactly affluent.
My beginning
I have $80K in debt that I’m going to erase.
I’m not bummed about it any more. I’m cutting expenses, earning more with my side hustles, and throwing every cent I can toward it.
I’m also saving, paying down my student loan, AND maxing out my Roth IRA.
Because like attracts like:
The money I have in my savings account is attracting more money into it
What I’m putting into my Roth IRA is attracting more opportunities to contribute
Every time I erase a debt, all of my debts are zero
So I’m going to keep plugging away.
This is despite where I “should” be in life, based on my upbringing.
Anyone can start saving. Start with 1% ($1 for every $100!) and go up from there.
The travel angle
This applies to mileage accounts too! And it’s in line with setting a goal.
There are so many ways to earn miles here and there. And like everything else, humble beginnings are OK. I praise them!
Because soon enough, you’ll wind up with thousands of Evernote notes, or money in a bank account… or miles in a mileage account.
Really, setting a goal and making up your mind to stick to it sends a powerful message into the universe. And you instantly start attracting your goal to you.
Bottom line
We all gotta start somewhere, right?
And that’s OK.
It feels silly to put $1 into a savings account. Or only have 1 note in a notebook. Or 1 mile in a mileage account.
But once you get your machine working, you’ll soon have more than enough – to the point of abundance. Abundance is the goal. And then you can start sharing with those you love.
Do you have a goal you’re starting right now? Or a big goal you’ve completed?
Would love some inspiration as I grab a shovel and start digging out!
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June 14, 2015
Getting FIREd Up
Also see:
Gratitude / Life Changes
The Climb to Pay Off Debt and Be Financially Independent
I have an out-of-control flaming emergency, according to Mr. Money Mustache
I recently wrote about life changes that I thought might happen… soon.
Well, even though Mercury was retrograde, nothing stopped chugging along. In fact, everything got a swift kick in the butt. And now life is different.
I’ve been getting used to the new rhythm. It feels so different. And it’s given me a chance to review where I’m at and how I want to move forward.
What is FIRE?
FIRE stands for “Financial Independence, Retire Early.”
It’s a long-term goal with actionable short-term steps. Right now, I’m focusing on those short-term steps.
Moving forward
I started Out and Out in March 2013 to chronicle getting out of debt slash things about finances, collect positive thoughts… and write about points and miles.
It’s mostly been a nice mix of all those things but with a slant toward points and miles.
Now the other stuff is coming back into play in a bigger way.
I have debt
Time to get the machine up and running
In the beginning, I felt more comfortable writing about points and miles because it’s what I knew the most about.
I’ve been reading a few personal finance blogs and reviewing where I was this time last year. And the year before that. And I’ve already started to take action.
In The Climb to Pay Off Debt and Be Financially Independent, I wrote about how I wanted to eliminate all of my debt and save up money. That was dated August 13, 2013. Since then, I haven’t made any headway.
The desire was there but the mindset was not.
Now I’m still in the same position I was in, but now it’s time. It’s really time.
My debt is an out-of-control flaming emergency.
What happened?
AKA “make excuses?” I really don’t want to. So I won’t.
I got lazy
I didn’t prioritize a payoff plan like I should’ve
I didn’t have the right mindset about a payoff plan… or about money
But I did start reading (a lot of personal finance blogs).
I think I’m somewhere between:
Afford Anything
Mr. Money Mustache
Healthy Crush
Ramit Sethi
But not as extreme as Jacob from Early Retirement Extreme.
These are the blogs that have spurred me into action.
Next steps
I plan on updating my progress from time to time.
To keep myself accountable. To keep on track. And to simply share my progress.
I also want to become more comfortable talking about money.
I was raised thinking about asking someone about money was taboo. But I’ve been sharing my FIRE plan with my friends and have gotten such good feedback about savings accounts, where to invest, interest rates, and the little actionable steps along the way.
So I want to keep talking about it. And learning more.
The site’s tagline has always been:
Investing. Positivity. Oh, and travel.
Time to get back to it!
Bottom line
All good stuff here. June’s been a rollercoaster so far and it’s only the halfway mark.
I’m curious to hear how others meld the points and miles hobby with their financial goals. How are they related?
Looking forward to sharing more details about FIRE, staying positive throughout, and traveling as always.
Stay scrappy out there!
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June 7, 2015
Use Avios for Connecting Flights to Save Money
I’ve been thinking about taking a trip down to New Mexico recently and it got me thinking about fare constructions and how to get to regional airports as cheaply as possible.
There’s still lots of value to be had from Avios
The idea here is to fly on Oneworld into a hub city or cheap destination, and then use Avios for the (usually) more expensive, shorter leg of the itinerary.
LGA-DFW-ABQ
Now, this first example is for getting from NYC to ABQ. But it could work for a heap of smaller regional airports like:
Indianapolis (from ORD)
Memphis (from CLT)
Missoula, MT (from SEA, on Alaska)
Albuquerque (from DFW or LAX)
St. Louis (from ORD or DFW)
And lots of others. (Feel free to alert me to more in the comments!)
To fly from LGA-DFW-ABQ on June 26th would cost $423.
LGA-DFW-ABQ
Of that, it costs $282 to fly the DFW-ABQ segment.
DFW-ABQ
I could pay $152 to fly from LGA to DFW…
LGA-DFW
…and then use 4,500 British Airways Avios to fly the same DFW-ABQ segment.
DFW-ABQ with Avios
By not paying for the DFW-ABQ leg of the segment, I’m saving $271 off the original fare construction (LGA-DFW-ABQ was $423, but I’d just pay $152 to fly LGA-DFW).
By saving that $271, I’m getting a phenomenal value of 6 cents per dollar out of each Avios point. Best of all, I can still take the same flights and arrive at the same time as I would’ve if I’d paid cash.
What this means in application
I played around with this a bit. It’s really incredible how much cash you can save by flying into the closest major hub to the regional airport you really want to fly into, and then using Avios for the last leg.
Since Avios award flights price segment-by-segment anyway, you can wring some great value out of the program.
I usually focus on flying to nearby places with Avios from NYC, like Montreal, Toronto, Boston, etc. But then it occurred to me that I can position myself to a hub, and save money on that last expensive leg.
Another cool thing is that… if I want to fly from NYC to ABQ, there aren’t any direct flights on Oneworld anyway. (There is one on United.) But by paying less for the longer leg, I come out ahead because I pay less cash and earn more miles. Win-win.
ORD-IND
Just quickly, here’s the ORD-IND example mentioned above. I decided why not, and looked it up real quick.
It would cost $337 to fly from ORD to IND on June 26th.
ORD-IND
But, this exact same flight is available for 4,500 Avios.
ORD-IND with Avios
If you wanted to go to Indianapolis, you could find a cheaper ticket to ORD instead, and then use Avios to get to IND, which is where you really are trying to go. Or, if you’re in Chicago and just want to fly down to Indy, well, you’d still get a whopping ~8 cents of value per Avios point.
Bottom line
I always like to find creative ways to use Avios to wring value out of the program. It really is a little gem.
It’s too bad the Chase British Airways Visa is useless and that they’re slashing transfers from Membership Rewards by 20%. I have a feeling Chase got testy and pressured Amex into reducing the transfer ratio, in a roundabout way.
But when you think about it, the Chase Freedom card is offering 5 Ultimate Rewards points per dollar for dining through June 30th. Or, 5 British Airways Avios per dollar, if you transfer them. Then you could get 6 to 8 cents of value out of them by using them to pay for the last leg of an itinerary, as described here. That’s a pretty sweet bargain no matter how you slice it.
Has anyone else used this trick to shave money off an itinerary? Are there any other routes or fare constructions that are prime for this?
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