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SmartyPig®: December 2009 Archive

The following posts were made in December 2009. You may subscribe to the RSS feed for this archive if you would like to take your time reading through our posts.

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December 28, 2009 • Posted by Michael Ferrari

Five Super Easy Financial Resolutions

Each year begins with lofty goals. But if you are anything like us, resolutions can be hard to keep. We've learned over the past few years that rather than attempting a lifestyle change overnight, people seem to be more successful when they set small, attainable goals. Often times, just thinking about how to approach your family's finances can really stress you out. So this year, we wanted to share five super easy resolutions that anyone can use to put finances on track.  (A couple of them can be accomplished in five or ten minutes!)

• Know your credit score
. Good credit is the foundation for achieving your financial goals. It's crucial to stay on top of your score. Services such as Equifax can tell you where you stand. (A good score is anything north of 700.) If outstanding debt has lowered your score, start paying it down, prioritizing high-interest debt first.  A word of caution: While it may be tempting to go all out in your crusade to eliminate debt, it's more important to leave some cushion. Don't wipe out your savings to pay off your credit cards, if it means that you have nothing to fall back on in an emergency.

• Define specific savings goals
. General savings accounts are great, but experts say that saving is easier with specific goals because you visualize the prize rather than the process. Whether saving for a wedding, a vacation, a flat-screen TV or home improvements, SmartyPig makes it easy to set up several savings accounts and track progress. With a competitive interest rate (2.01% APY), cash boosts of up to 12%, and the option to invite friends and family to contribute to goals, you can end up with significantly more money for your money.

• Cut up credit cards
. According to Experian, the average consumer carries 4.5 pieces of plastic — 4.5 potential paths into debt! By eliminating extra cards, you limit opportunities to spend money you don't have. Start with cards that have high rates, low limits or punitive fees. But use scissors! Cancelling cards can impact your credit score. Cutting them up makes them just as inaccessible.

• Increase your 401K by 3%. You already know that you should contribute as much as possible to your 401K retirement savings plan — especially if your employer matches. An easy way to boost that savings is by increasing your contributions by a minimum of 3% each year. As your career progresses and your salary increases, it's unlikely you'll miss the money.

• Make a date with your finances. Most of us are too busy to tackle anything but the most necessary financial assignments. Bu you should really set aside time for crossing items off your financial To-Do list. Do what works for you whether it's annual, quarterly or monthly appointments, though it helps most to schedule this time when banks and other institutions are open. Time spent finding high-yield savings accounts, better insurance plans, and no-fee cards results in more money in your pocket.

The SmartyPig Team
@smartypig
facebook/SmartyPig

 

Tags: smartypig   •  resolutions   •  credit score   •  401k

0 Comments | |

December 25, 2009 • Posted by Michael Ferrari

Happy Holidays from SmartyPig!

To all our SmartyPig friends and family we would like to wish you and your loved ones Happy Holidays and offer our sincere thanks for your support. Since launching SmartyPig in Spring of 2008, we've had the pleasure of getting to know many of you. We've heard your stories. We've shared your successes. We've watched you set goals and put yourselves on a path to achieve them. And we cannot thank you enough for letting us be part of that process. Your reaching for a better way using SmartyPig is truly inspiring.

We're really looking forward to an exciting 2010 and a host of new initiatives we cannot wait to share with you.

Until then, warm wishes for the holidays and a happy new year!

The SmartyPig Team
@smartypig
facebook/SmartyPig

 

Tags: smartypig   •  happy holidays

2 Comments | |

December 23, 2009 • Posted by Michael Ferrari

Financial Health Beats Out Physical Health for Resolutions

As December gives way to January, our thoughts turn from holiday indulgence to New Year's resolutions. Typically, a list always begins with something weight or fitness related, but this year finances are top of mind. We guess we're not alone.

This year, more than any other, Americans are more focused on their financial health more than their physical health with "saving more" named as the top New Year's resolution for 2010 (cited by 36%) according to a recent survey by Putnam Investments. Old standbys such as "exercise more" (34%) and "lose weight" (34%) trail closely behind. All in all, people know 2010 is finally the year to finally get their act together. Not because, as in years past, they wanted to, but because they simply have to. To make ends meet. To dig out from under their debt. To get away from plastic once and for all. To simply start over or start off right.

We're behind you 100%, and we're very interested in your resolutions.  What are you hoping to accomplish in 2010, and how can SmartyPig help you get there? We'd love to know what's on your mind.

Thanks, Team SmartyPig

@SmartyPig
facebook/SmartyPig

 

Tags: smartypig   •  new year's resolution   •  putnam investments

0 Comments | |

December 15, 2009 • Posted by Michael Ferrari

Orman Urges Consumers to Embrace "Cash Only"

Long supported by famed financial advisor Dave Ramsey, the "Cash Only" movement recently gained another bold-named convert, Suze Orman. SmartyPig Savers, you were at the forefront of a growing celebrity trend!

On her CNBC show she encouraged viewers to join her, "Let's go back to the good old days," she said. "Let's go back to the times when you literally paid cash for everything. That's right. Cash. Stop using your credit cards altogether."

Ms. Orman was inspired to jump on the "Cash Only" bandwagon in response to predatory credit card companies, a topic we recently covered in our blog.  Moving away from credit cards en masse would send a powerful message to credit card companies that have resorted to extreme tactics such as sharply raising rates and closing accounts after brief periods of inactivity, targeting even those who use credit cards responsibly by paying bills on time and not carrying balances. If credit card companies are going to treat us as if they don't value our business, maybe they don't deserve our business.

A shift to cash only requires some initial planning. SmartyPig can be a helpful tool for saving up for specific goals. General savings accounts are great, but experts say that saving is easier with defined goals because you can visualize how the money will be spent. Simply put: you focus on the prize rather than the process. And SmartyPig makes saving easy, social and rewarding: With a competitive interest rate of 2.01% APY (currently the highest no catch rate), cash boosts of up to 12%, and the option to invite friends and family to contribute to goals, you can end up with significantly more than you personally contributed.

If you are going on a cash-only diet, we recommend that you cut rather than cancel your cards. Cancelling cards can impact your credit score, cutting them up makes them just as inaccessible. Recent stats from Experian indicate that the average consumer carries 4.5 pieces of plastic — 4.5 potential paths into debt! (Not to mention that now they can lead to sudden hikes in interest, and hidden fees.)  By eliminating extra cards, you limit opportunities to spend money you don't have. It goes without saying that you should aim your scissors first at the cards that have the highest rates, lowest balances or most punitive fees.

We'd love to hear your thoughts on whether or not you already have or will be moving away from credit cards, and any tips you have for SmartyPig customers who might be considering a cash-only diet.

For additional reading on this topic, check out this post on GetRichSlowly. Staff writer Adam Baker talks about how he and his wife decided to make the move away from credit, sharing the list of pros and cons that helped them ditch the plastic.

Thanks, The SmartyPig Team
@smartypig
facebook/smartypig

 

Tags: smartypig   •  suze orman   •  get rich slowly   •  adam baker   •  dave ramsey   •  cnbc

7 Comments | |

December 9, 2009 • Posted by Michael Ferrari

“Gaming� SmartyPig: Turning a Profit by Shopping

A new customer recently shared her plot to beat the SmartyPig system. It was so genius, we had to share it.

I had heard about SmartyPig before, but when I read about the new redemption program recently I decided to check it out for myself. Holiday bills were already piling up, so I signed on for a SmartyPig savings goal to cover next year's gifts. But it was while tooling around the site, I realized I could actually "game" the system THIS CHRISTMAS by depositing money into a goal and taking it out on gift cards a few days later.

So I started a goal, deposited $500, waited for the money to clear and then loaded up on cards.

My gift list:

• Mom and Sister—$100 Macy's gift cards - I get $24 back in cash for getting them through SmartyPig
• Brother—$100 GameStop card - I get $3 back
• Dad—$100 at Sears - I get $4 back
• Niece—Baby Gap $100 Gift Card - $5 for me!

I "earned" $36 in free money and finished shopping for my family all at once! Plus, I've still got the account set up for next year's gifts, so no headaches there. I'm also opening up a spend account for the ordinary stuff I have to buy, like socks and underwear. Since I already shop at Macy's I might as well buy them there and make a profit.

We applaud the creativity! After all, our goal is to wean customers off plastic and stoke their love of saving by making the process easy, social and rewarding. If you can also get some real cash in the process, why not do that too? It sure beats paying 18% in credit card interest. Whether it's gifts this holiday, next summer's vacation, a down payment for your dream house, or regular purchases of underwear and socks, we're here to help you make it happen, and rewarding you with cash incentives for the things you want and need most.

It's the SmartyPig difference. And we always love to hear from you! Thanks!

- The SmartyPig Team 

 

Tags: smartypig   •  gaming the system   •  macy's   •  gamestop   •  sears   •  baby gap   •  gifts

5 Comments | |