When it comes to booking a flight, timing is everything, said the Associated Press. Airfares today “fluctuate so frequently” that many vacationers simply don’t know if they’re getting a good deal or not. Luckily, travel site CheapAir.com has crunched the numbers, and according to its data, 54 days in advance is generally the ideal time to book domestic flights. But other factors can change the equation. For instance, “airfares to popular destinations tend to go up sooner,” which is why the website recommends a “prime booking window” of 29 to 104 days before departure. For holidays such as Thanksgiving and Christmas, five or six months out is a good rule of thumb. But when it comes to bargain international rates, “forget about it.”
Prioritizing student loans
Put the student loan bill aside, said Gerri Detweiler in Credit.com. While many college graduates “may think it wise to do everything you can to pay off your student debt as fast as possible,” paying down debt faster isn’t always “the smartest move.” As long as you maintain timely payments, student loans “will likely be a plus” for your credit score. So before “throwing all your available funds” at your loans, start building an emergency fund. That will help you “in a pinch” and also ensure that “you’ll be able to make the minimum payments on your debts and maintain a good credit rating no matter what life throws your way.” And if your employer matches retirement contributions, make sure to use your available cash to max out your 401(k).
How to stick to a budget
There are some tricks to staying on a budget, said Sabah Karimi in USNews.com. While keeping your spending in line can be challenging, you can “adopt habits that will make you more mindful about your spending choices and shopping routine.” The first tip is to “always shop with a list,” which will help you prioritize purchases and alert you to unnecessary expenditures. Next, keep a daily log of everything you buy, which will help you keep track of your spending habits. And whenever possible, keep your debit or credit card in your wallet. “Shopping with cash can make it easier to manage your budget and be more mindful about how much you spend.” By only spending “dollars you can see,” you’re more likely to become “more cognizant about your purchases.”
Saving enough for retirement
“It doesn’t take a heroic savings effort” to boost the eventual size of your nest egg, said Walter Updegrave in The Wall Street Journal. Setting aside an extra 1 percent of income each year on top of your existing savings can “appreciably boost” your retirement balance. In a recent survey of 3.5 million employees with 401(k)s, the average worker in his 20s reported saving 7.6 percent of his salary. The savings rate rose with age, topping out at 13.4 percent for workers in their 60s. If the average worker in his 20s, earning $50,000 a year, boosted his savings rate by just 1 percent on top of the age-group averages in the survey, his 401(k) balance would increase from an eventual $1.1 million to $1.2 million by age 65. Boost the savings rate another 1 percent each year, and the account’s projected value rises to almost $1.3 million at retirement.
The best back-to-school computer
For college-bound students, choosing between a laptop or a desktop computer can be a tough decision, said Devin Coldewey in NBCNews.com. Each option has its pros and cons. Laptops can be handy for their portability, allowing students to “type out notes in class” or “work from a coffee shop off campus.” But theft is a risk, and when it comes to storage, life span, and entertainment options, a desktop may be a better bet. Students with the means might consider both. These days, “there are inexpensive options that give you the best, not the worst, of both worlds.” A nice Chromebook laptop costs less than $200, while a decent desktop and monitor can be had for $600-$700.
Betting on boomerang employees
Are you interested in returning to work for a former employer? asked Alina Tugend in The New York Times. Though “there is no hard data on how frequently employers rehire workers who’ve left to go elsewhere,” experts say bringing back so-called boomerang employees is a growing trend. Thanks to social media, it’s easier for companies to keep track of former workers, and “it’s often cheaper to rehire them because firms can bypass the search process.” Plus there’s less risk, since “employers know what they’re getting.” But there are pitfalls, and experts say potential boomerangs should consider carefully why they left in the first place. If you had a rocky relationship, were underpaid, or lacked growth opportunity, “there is no guarantee” those problems will be resolved.
The value of vacation days
Don’t bother burning the midnight oil, said Bob Sullivan in Credit.com. While it’s no surprise that American workers often leave vacation time on the table, a new study from the U.S. Travel Association found that clocking more hours at the office isn’t likely to pay off. In fact, “workers who left 11 to 15 days unused during a year were 6.5 percent less likely to receive a raise or bonus than those who used all of their vacation days.” And if you need more motivation to cash in those unused days off, consider this: A separate report from audit firm EY suggests there’s value in heading for the beach. For every 10 vacation hours an employee takes, EY found, annual performance review scores increase 8 percent.
AT&T’s not-so-unlimited data plans
The feds say AT&T’s unlimited data plans come with a catch, said Edward Wyatt in The New York Times. The Federal Trade Commission filed a lawsuit against the telecom giant last week, accusing it of misleading customers by slowing the connections of people with unlimited plans after they used more than 2 gigabytes of data in a month. The FTC said 25 percent of AT&T’s 14 million unlimited data plan customers have been affected since 2011, and that in some cases, downloads were slowed by as much as 95 percent, rendering users’ smartphones unable to access the Internet. “If you make a promise about unlimited consumer service, we expect you to fulfill those promises,” said Edith Ramirez, the FTC’s chairwoman. AT&T, which says it has been “completely transparent” with customers about the usage threshold, called the FTC’s accusations “baseless.”
Car loan market could stall
The auto loan industry may be headed for trouble, said Annamaria Andriotis in WSJ .com. The Treasury Department’s Office of the Comptroller of the Currency “sounded the alarm about lax car lending standards” last week over concerns about a spike in the size of car loans that banks and other lenders are writing off. The average write-off at the end of 2013 was $8,520, up 17 percent from a year prior. At the same time, the total balance of car loans that have been delinquent more than 60 days has surged past $4 billion—up 27 percent from last year. The increase in write-offs has followed “a pickup in subprime lending in the car sector,” with lenders doling out $83 billion of subprime auto loans during the first seven months of the year.
Save on your cable bill
Quit overpaying for cable, said Charles Passy in MarketWatch.com. Believe it or not, cable bills “can be easily bargained down with a relatively quick call to a customer service rep.” If you’re digging for a discount, many providers “will offer you a deal—typically, a lower bundled price or free extras (like a movie channel)—that’s good for half a year.” Their hope is that you’ll forget when the six months are up, but you can always call back to try to renew the deal. And pay attention to the competition. “You’re more likely to make an effective case if you can quote a promotion you’ve been offered by a competing company.” And “if at first you don’t succeed,” call back. “A different customer-service rep may be authorized to offer a different deal.”
A better bead on debit cards
Finding the best deal among prepaid debit cards can be a hassle, said Ann Carrns in The New York Times. It’s often “difficult to determine just what fees the cards charge and what terms they offer.” Each company seems to have a different fee structure, charging for everything from registering for the card in the first place to reloading it and even calling customer service. In a bid to bring more transparency to prepaid cards, the Pew Charitable Trusts is promoting “a simple, uniform disclosure box that card issuers can use to help consumers compare card fees and terms.” So far one bank—JPMorgan Chase—has pledged to adopt the new format for its Liquid prepaid card beginning this spring, and Pew hopes others will follow suit.
The upside of investing abroad
Are U.S. stocks really “safer” than those in foreign countries? asked Brett Arends in The Wall Street Journal. Though stock markets in emerging countries “have been in turmoil lately,” broadening your portfolio might not be a bad idea. No market provides “the best return in all periods,” so the best place to park your money can vary over time. A smart strategy is keeping a “balanced global portfolio and then adjusting it roughly annually.” One expert suggests splitting up your investments equally across several low-cost funds tracking five major indexes: the S&P 500, London’s FTSE 100 index, Europe’s Euro Stoxx 50, Japan’s Nikkei 225, and the MSCI Emerging Markets index. If rebalanced periodically, this portfolio “beats a traditional portfolio by a significant margin over time,” says investment manager Joachim Klement.
Too many choices
Are your investment options overwhelming you? asked Carl Richards in The New York Times. The sheer number of available choices for parking your cash can make your head spin. There are almost 25,000 investment options among mutual funds and exchangetraded funds alone. “Realistically, you could spend your entire life looking for the perfect investment.” Don’t drive yourself crazy; just “use a broadly diversified, low-cost index fund” and call it a day. Excessive choice can be a paralyzing trap in any financial scenario, whether you’re buying a house or a new insurance policy. “We could spend the rest of our lives researching an ever-increasing number of choices and searching for perfect, but to what end? We have better things to do.”
Canceling a gym membership
Consider “getting off your gym’s financial treadmill,” said Lindsay Gellman in The Wall Street Journal. “If the gym is shrinking your bank account but not your waistline—and you don’t see that changing anytime soon—it might be time to cut ties.” But leaving your gym can be tricky. Some clubs charge termination fees, though many will waive them “if you’ve moved away, been injured, or are similarly unable to use the gym as before.” You may need to provide proof of your new address or a doctor’s note, so check the club’s policy. If you’re taking a temporary break, “some gyms offer the option to freeze your membership for a period,” which will suspend your access privileges—but also your dues—“though there may be a nominal fee.”
Safeguard your card data
You have to work harder to make your credit card payments safe, said Byron Acohido in USA Today. “The U.S. stands alone as a modern nation that continues wide use of magnetic striped payment cards.” Other nations long ago switched to chip-embedded cards, which are difficult to counterfeit. While U.S. businesses are slowly shifting, “magnetic striped cards aren’t going away anytime soon,” so you have to protect yourself. Start by having your card issuer set up behavioral alerts, which flag suspicious transactions based on your previous purchasing history. And avoid linking your debit card to your savings account to “reduce your risk profile.” Of course, plastic isn’t the sole risk: Mobile payments are becoming more popular, but they increase the number of “access points” through which attackers can steal your data.
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