Sunday, 30 June 2019

Are phones a necessary evil?

I hate phones.

I hate answering phones. I hate making phone calls. I especially hate doing business by phone. Maybe it's a part of my social anxiety, but I will go to great lengths to not use my phone. (The phone “app” doesn't even live on the homescreen of my phone!)

If I ever have a question for my bank, for instance, I will get in my car and drive to the bank before I'll pick up the phone.

Kim thinks I'm crazy. She's just the opposite. She loves the phone and prefers it to doing business in person. Every week, I listen as she makes two or three calls and uses her charm on customer service agents. I have no charm, and I hate the phone.

Let me give you a more detailed example of why I find phones frustrating.

As a non-phone guy, it makes me sad that some of my friends are very much phone people. If I text them, they phone me back. If I send them email, they phone me back. *sigh*

Welcome to Purgatory

Last autumn, before my trip to Europe, I inadvertently signed up for the Oregon Health Plan. I had been filling out online forms to research an article, and apparently one of the forms that said it was informational only was actually a real, genuine application.

When I returned from Europe, I found that I was enrolled in my state's low-income health plan. Oops.

“You need to call to correct this,” Kim said.

“I know,” I said, “but I hate the phone.”

“Do it anyhow,” she said. I dialed the customer service number. Then I sat on hold for 45 minutes before becoming so frustrated that I hung up and went on to other things. A week later, the same scene repeated itself. And the next week too.

After a third session of waiting on hold, I'd had enough.

“This is why I hate phones,” I said to Kim. “You wait on hold for an eternity. It's like you're in purgatory. When you finally get through, nobody knows the answer. I'm over this. I'm going to go find somebody who can help me.”

I drove twenty minutes to a government office, where a pleasant young woman listened to my story. “I can help,” she said. Ten minutes later, my problem was solved.

I texted Kim: “It took me less time to drive down here and get this solved than it did to wait on hold for nothing this morning.”

And I can almost guarantee you that if I had actually reached somebody on the phone, it wouldn't have been the right person. I would have been shuffled around — and left on hold — several times before somebody would have been able to help. That's how it always goes.

From my experience, it's almost always more effective to speak to somebody in person than it is to handle business by phone. If I have a question for a company or government agency, I do my best to stop by an actual office to ask it. I prefer the face to face contact. It's quicker and produces better results.

Sometimes, though, the phone is a necessary evil.

A Necessary Evil

This morning, I was doing my end-of-month finances. I noticed a charge this week from Avis Rent-a-Car. “That's strange,” I thought. “I haven't rented a car recently. Is this from my rental in France?”

I did a quick search of my transactions to find two recent charges from Avis:

Avis Charges

When I rented the car in France, I did so with Chase Ultimate Rewards points. No cash changed hands. When I returned the car, the man who checked me in told me everything was fine. No damage. I was under the impression that I didn't owe anything else.

That said, it's possible that I inadvertently broke some law or other while driving around Normandy, Brittany, and Paris. Maybe I used a toll road without knowing. Maybe I ran a red light that was photo enforced. Maybe Paris has congestion charges like London. Maybe I was speeding somewhere that I ought not have been speeding. I don't know.

I tried to follow all of the rules. Plus, I drive like an old man. But that doesn't mean I didn't make a mistake.

So, maybe these charges are due to some error on my part. But it's also possible that I'm getting screwed over by Avis. The problem is that other than these two charges to my credit card, nobody has contacted me to let me know what's going on.

With a heavy sigh — and a complaint to Kim — I called Avis.

I'm pleased to report that I didn't have to wait long for a customer service rep. (Maybe because it's early on a Sunday morning?) Unfortunately, all Ed could tell me was that both of these charges are “administrative fees”.

“What are administrative fees?” I asked.

“They could be any number of things,” he said, “but they're usually due to a government fine of some sort. Like a parking ticket. Or a speeding ticket. Stuff like that.”

“Is there any way to find out what my charges are for?” I asked.

“Well, I have a phone number here. You could call,” he said. I shook my head and grimaced. I was glad he couldn't see my reaction. “But you can also simply wait. Generally speaking, you'll eventually be contacted with information about what these fees are for.”

So, that's what I'm going to do. I'm going to wait. Yes, it goes against my advice to always be proactive. But it also means I don't have to use the phone.

With luck, I'll get mail (or email) soon that lets me know how I goofed up on the roads of France. Until then, I just hope these administrative fees don't keep accumulating at the end of every month! More than that, I hope I don't have to make additional phone calls about them.

One of my biggest pet peeves — my biggest pet peeve? — is companies that allow you to sign up for service online but force you to phone to cancel service. When we moved into this house (two years ago today!), I subscribed to the Sunday New York Times. It sounded fun, and the online sign-up process was simple.

Turns out, we never read the paper. When it arrived, it sat on the coffee table for a week or two or three, then it got recycled. (Well, we did read the New York Times Magazine supplement, but that's it.) So, I decided to cancel.

In a total dick move, The New York Times forces you to phone in order to cancel. You have to run the “customer retention” gauntlet to stop service. Utter bullshit. If you can sign up via the web, you should be able to cancel via the web. (And don't give me this stupid “it's for your protection” excuse. Who goes around canceling people's newspaper subscriptions?)

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Friday, 28 June 2019

Depression and me

For much of the past two weeks, I've been wrestling with my mental health. I could sense a crisis coming, so I scheduled some time away. I didn't want to have to be worrying about blog posts while I was worrying about everything else. Thus, my “summer vacation”.

Long-time readers are aware that I've struggled with depression for most of my life.

In sixth grade, I missed five weeks of school with what my father called “parrot fever”. (We had parrots, and he attributed my issues to a parrot allergy.) After our family physician could find nothing wrong with me, Dad took me to his therapist. Hushed conversations followed the appointment. The verdict: I was dealing with depression.

In junior high, I was briefly suicidal but made a deliberate decision to turn things around. In high school and college, the depression was always there, looming in the shadows. As a young adult, it mostly went away…but then it came back as I got older.

In 1999, when I was thirty, I experienced something new: anxiety. At one point, I thought I was having a heart attack. Nope. It was a panic attack. When the second panic attack came a few weeks later, I knew it wasn't my heart. It was me stressing about life.

Interesting note: It was after the second panic attack that my doctor strongly encouraged me to start drinking red wine. For real. Before that, I was a teetotaler.

During my divorce in 2011-12, Kris asked me a favor. “Please see a counselor,” she said. I did, and it helped. My therapist gave me advice for coping with depression and anxiety, plus she diagnosed me with ADD. For a few years, I was able to manage my symptoms.

Last year, though, things got bad. March and April and May were a struggle. In June, I published an article here about my ongoing battle with depression. During the summer, my mental health improved, however, and I forgot about how hard the spring had been.

Tweet about Anthony Bourdain's suicide

A Sneaky Little, Sticky Bitch

In February of this year, my anxiety returned. The depression followed soon after. When my heart-attack scare in mid-March turned up no physical issues (other than high blood pressure), my doctor suggested that the problem was anxiety. She asked me to start seeing a therapist again. So, I did.

Since early May, I've been attending talk therapy once a week. We're exploring why I feel so anxious, and how using alcohol to cope with anxiety is a “maladaptive behavior”. We're exploring other ways to make things work.

The trouble? When I don't drink in the afternoon, I get more anxious.

The frustrating thing is that the depression and anxiety lead me to act like a completely different person.

For instance, I love people. I love spending time with people. Social interaction energizes me. Right now, though? I hate it. I don't want to deal with anyone in any capacity. I don't want to spend time with friends. I don't want to be in crowds. (I make an exception for Portland Timbers games.) I don't even want to go to the grocery store.

Here are some ways this manifests itself:

  • Today, I had a lunch appointment with a colleague and friend. Karl is a great guy and I enjoy spending time with him. Normally. Today, though, all I could think about were the reasons I might be able to cancel.
  • Yesterday, I taped a TV interview with a local station. I wanted to cancel that too. Afterward, I ought to have driven out to the family box factory. But I didn't. I didn't want to spend time with my brother and cousin.
  • This Sunday evening, there's another Portland Timbers game. Kim can't go with me, so I need to find somebody else to join me. I have zero desire to do so. I may end up selling the tickets and skipping the game because of my anxiety.

My medical doctor has prescribed propranolol to simultaneously deal with my high blood pressure and my anxiety. While it seems to be helping the former, it's not helping the latter. (According to wikipedia, it's really only useful for performance anxiety.)

Meanwhile, the depression is even worse. If you look at the symptoms of depression, I'm exhibiting every single one. Some of my symptoms are severe.

  • Fatigue? Have it.
  • Insomnia? You bet.
  • Feelings of guilt and worthlessness? Oh boy.
  • Irritability? Yes, and it's so not me. I'm not an irritable guy — but I am lately.
  • Loss of interest in things once pleasurable? Absolutely, and it's SO FRUSTRATING. Nothing appeals to me. I'm numb.
  • Trouble concentrating, remembering details, and making decisions? You have no idea. Everything is a chore.

The latter is especially difficult to deal with. When Karl asked where to meet for lunch today, I couldn't decide. Why not? That's so simple! Last night, Kim wanted me to make dinner. But I didn't because I couldn't decide what to fix. That's ridiculous!

A Horrible, Terrible, No Good, Very Bad Day

In fact, yesterday was miserable. It might have been the worst day of my entire life.

My head was a mess of negative thoughts and emotions, all of them swirling and swirling and swirling in a never-ending dark cloud of despair. I couldn't focus on anything. I did tape the TV interview (the first segment went very well, but the second bordered on incoherent) but that's the only productive thing I did all day.

On the drive home, I bought — and then consumed — a big bowl of clam chowder, a big bag of potato chips, and an entire package of chocolate chip cookies. Then I sat in the hot tub and played a videogame for five hours. (At least I didn't drink alcohol!)

When Kim came home, she asked, “What's for dinner?” I admitted that I hadn't made dinner — but I didn't tell her how messed up my head had been all day. (She knows I'm struggling but she doesn't know how badly.) While she changed out of her scrubs, I fried some frozen potstickers.

Naturally, all of this makes me feel even more guilty and worthless and depressed. It's a vicious cycle.

I'm sure you can see how this would translate in an inability to get work done, both here at Get Rich Slowly and in my real life.

It's a problem.

What's the solution to the problem? I'm not sure. There must be one. But I don't know what it is. Drink every afternoon? That's what I've been doing, and it works. But, as my therapist says, it's a maladaptive behavior. I think we all know where that road leads.

My therapist is patient. She keeps giving me homework assignments…and I keep avoiding them. Exercise! Meditate! Set goals! These all sound awesome. They're all things I know I like to do. But they also sound like tremendous effort, so I don't do them.

Bringing Gratitude

Instead of canceling my lunch appointment with Karl today, I went. I'm glad I did.

I've known Karl for almost a decade. He's one of the most uplifting, supportive people I've ever met. I love that his work is centered on positivity. He runs a site called Bring Gratitude and he published a book by the same name. (Six months ago, he shared a guest article here at Get Rich Slowly about practicing gratitude with a daily journal.)

As we sat down for lunch, I told Karl point blank about the issues I'm going through.

“I can totally relate,” he said, and he shared some of his own past struggles.

“You know,” I said, “my therapist has been urging me to try meditation. But I don't know how to start.”

Karl nodded. “I meditate. I meditated just this morning. But it can be tough to get going. You have so many thoughts racing through your head. Here's one thing that might work, though. Give yourself one minute. Only a minute. For that minute, meditate on all of the things that you're thankful for.”

“I like that idea,” I said. “I like it a lot. Normally, I'm a grateful guy. I'm a lucky man, and I know it. Usually. Lately, though, I've forgotten how awesome life is. Meditating on the things I'm grateful for would be a great way to remind me of what I've got.”

Thank You

On my drive home, I put Karl's idea into practice. I took back roads. As I drove slowly through the countryside, I thought about all of the things that I'm thankful for.

  • I'm thankful for Kim. She's a not just a wonderful partner in life, but she's a wonderful person. She's a good soul.
  • I'm thankful for my dog. Tahlequah is a handful (a pawful?), and I do get frustrated with her. But I'm also grateful to have such an enthusiastic hound dog in my life.
  • I'm thankful for my health. I haven't taken care of myself much lately, but that's on me. Generally speaking, my body is in fine shape. And with a little work, it could be in great shape once again.
  • I'm grateful for music. I don't mention it much, but music brings great joy to my life. I love music of all sorts. Taylor Swift, yes, but also U2 and Mozart and Styx and ABBA and Public Enemy.
  • I'm thankful for Portland. I love the green of it. I love its quirky die-hard (sometimes absurd) liberalism. I love the food scene and the Timbers and the passion for books. Speaking of which…
  • I'm grateful for words. Books bring me joy. So does writing. I've managed to make a living from my words, and I hope to continue doing so in the future.
  • I'm grateful for life.

Here at home, I had a call with my business partner, Tom. We spent two hours talking about behind-the-scenes details here at Get Rich Slowly. We made plans for the future. But we also took a lot of time to talk about nothing.

It was awesome. It was just what I needed.

When I got off the call, the dog wanted to play. She looked up with puppy-dog eyes and made her little whine that means, “Dad, throw the ball for me.” We went outside into the sunshine and I threw the ball for her. Then, I got down on my knees and wrestled with her. She loves when I wrestle with her.

“I really do have a good life,” I thought after the dog and I were done chomping on each other. I went into the kitchen to put away the clean dishes. “I'm thankful for all of it.”

You know what? I'm thankful for Get Rich Slowly too. And for you, the readers. This site has been a huge blessing in my life — and I'm not one to talk much about blessings. I've put a lot into GRS, it's true, but I've gotten so much more out of it. I've gotten so much from you folks.

So, thank you. I mean it. Thank you for reading. Thank you for contributing. Thank you for everything.

Few and Far Between

As Karl and I chatted at lunch today, I caught a Natalie Merchant song playing on the restaurant's radio. At first I thought it was “Wonder”, but then I recognized it as “Few and Far Between”.

“How fitting,” I thought. Some of the lyrics:

“‘Til you make your peace with yesterday, you'll never build a future. I swear by what I say: Whatever penance you do, decide what it's worth to you, and then respect it. However long it will take to weather your mistakes? Why not accept it?”

So, that's what has been going on in my life lately. It's been a struggle. But I can see a light at the end of the tunnel. And I can see some money articles at the end of the keyboard. (Thank goodness, right?)

What's been going on with you?

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Dividend Investing: The Ultimate Passive Income Source

Dividend investing is one of the best ways to create a completely passive income stream. With dividend stocks, you invest once and earn forever! Passive income, the type of income that you earn even while sleeping, is something desired by many. It can be used to either build your wealth by reinvesting, or help cover [...]

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#money #finance #investments

Wednesday, 26 June 2019

How I Moved Across Canada on a Shoestring Budget

York University offers a professional writing undergraduate degree, which is relatively rare. When I was offered admission, I felt like it would be a waste of valuable entry-fee money not to go. I expected to face a lot of changes. I had moved cities before, and was used to seeing less of loved ones, rebuilding [...]

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Monday, 24 June 2019

eBates Review: I Earned Over $1,000 in Free Money Shopping Online

In this eBates review, I share what’s to love about this free tool to earn cash-back on all your online spending, no matter what bank or credit card you use! eBates Review Summary In a rush? Here’s everything you need to know about eBates: eBates lets you earn cash-back from shopping online you can earn [...]

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#money #finance #investments

Thursday, 20 June 2019

The First Time Home Buyer Incentive Explained

The First Time Home Buyer Incentive (HBI) was announced in June 2019 to help middle-class Canadians purchase their first home. The program provides up to 10% of a home’s value as a downpayment. It will become available to Canadians on September 2, 2019. This program is different than the First Time Home Buyer’s Plan (HBP), [...]

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#money #finance #investments

Wednesday, 19 June 2019

What is the Canada Education Savings Grant?

If you’ve been saving using an RESP, then your child is eligible for up to $7,200 worth of free money through the Canada Educations Savings Grant (CESG). This grant allows funding for a child’s college education, university education, or even an apprenticeship program. The CESG gives RESP savers across the country the chance to open [...]

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Monday, 17 June 2019

Wealthsimple Trade vs Questrade

When it comes to choosing Wealthsimple Trade vs Questrade for your self-directed investing, there’s a lot to consider. From account type to investor preferences, the best fit is up to you… but it’s probably Questrade. Questrade has been the clear leader in Canada for online discount brokerages for years. Wealthsimple recently launched a no-commission, no [...]

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Friday, 14 June 2019

The best rewards credit cards of 2019

If your goal is to maximize rewards, get the best bonuses, and play the points game no matter the cost…

You’re on the wrong page.

We have a different philosophy on rewards credit cards.

It’s the same philosophy that we have for all of personal finance: ignore the small stuff and focus on the Big Wins.

Points hacking is small stuff.

Finding a great rewards card you can depend on and then never thinking about it again is a big win.

Finding the best card for you is pretty simple when your goal is to maximize your rewards with the least amount of effort possible. The main decision you’ll need to make is to get a travel points or a cash back card. We’ve sorted through hundreds of credit card offers to find the best card for both categories.

There are a few other situation-specific cards to consider too. All-in, there are only six cards that are worth looking at.

We’ve done a deep dive on all these cards below.

What makes a great rewards card

The usual advice focuses on how to squeeze out every last percentage point from restaurants, gas, groceries, and 50 other categories.

I disagree.

You see, we need to factor in the effort required to get the rewards.

Some cards have rotating spending categories and all sorts of hoops for you to jump through in order to hit some hypothetical maximum reward.

At I Will Teach You To Be Rich, we’re adamantly against these types of games.

A few extra rewards points are not going to fundamentally change your lifestyle. Automating your finances, getting a great rewards card that doesn’t require ongoing effort, and then focusing on bigger wins WILL change your life.

The best rewards credit cards have rewards programs that are easy to understand, require little to no maintenance, and yield at least 1.5% back in cash or rewards. Add in a few perks and you’ve got a great card.

Should you get a travel or cash back rewards card?

Whether to get a travel or cash back card comes down to one simple question.

What’s more important to you, the value of the rewards or simplicity?

If you want to get every dollar in rewards possible, travel rewards programs always beat cash back cards. For credit card companies, there’s always a percentage of people who forget to spend their points, so they’re able to increase the value of their points over a more straightforward cash back program.

Of course, don’t get a travel points card if you hate to travel. That would be … unhelpful. It’s still worth it as long as you travel once per year.

Maximizing the value of your rewards does come with an extra cost though. You’ll have to manage your points. They’ll accrue in your credit card account and you’ll have to make choices on when and where to spend them. For example, different redemption methods have different values. The American Express Membership Rewards points are worth $0.07 on Amazon and $0.10 on Uber. Every card has its own redemption methods with its own values.

You could use the rule of thumb of always redeeming your points for miles on an airline program. This is a good rule, and it’ll usually maximize the value of your points. But you still have to transfer your points to miles. Each credit card points program will transfer to some airline programs and not others. And once you get your points into the right miles program, you’ll have to deal with whatever points restrictions your airline has (blackout dates, only certain flights being available, etc.). To add even more complexity, some credit card programs allow you to book flights and hotels directly through them, but then there’s a separate set of restrictions and point values that you have to deal with.

Sounds like a pain? It is.

For me, the extra hassle is worth the free international flights that I’ve been able to get.

If the extra hassle of a travel rewards programs sounds exhausting, get a cash back rewards card instead.

Cash back cards still have plenty of benefit without any work:

  • You get a straight percentage back on all charges to your card.
  • The cash back shows up on your statements either automatically or with very little effort. Worst case, you’ll have to log in and hit a button to initiate the cash back.
  • While some cash back cards have maximum payouts, rotating categories, and other nonsense, there’s plenty of cards that keep things ultra simple.

That’s as simple as it’s going to get.

Here’s how to make your decision:

  • To maximize the value of your points, get a travel rewards card.
  • To maximize simplicity, get a cash back card.

How we evaluate credit cards

These are the criteria that we used to whittle hundreds of credit cards down to the few cards that we recommend.

Rewards or cash back program

How many points or how much cash back does a card earn? And under what conditions?

This is where the bulk of rewards value comes from, so when in doubt, choose the card with the better rewards program.

And watch for restrictions on rewards. It’s common to have a points boost of 5X on a spending category combined with a cap or restriction on how that charge is made. Some of the travel cards force you to book through their website in order to get the full points bonus on that charge. To me, that significantly reduces the value of the card. I place a lot of value on flexibility and choice.

Get a deep understanding of your card’s rewards program so you know exactly how it’ll work.

Bonus value

Most credit cards have a bonus offer for new customers. It usually works like this:

Get X if you spend $Y within Z days.

Hit that milestone and you’ll get the bonus added to your account within a few months.

Be careful with these though. If the spending amount is a huge stretch for you, it’s a sign that the card isn’t a good fit for your current spending habits. Whenever I’m looking at a bonus program, I only consider it if I can easily hit the spending amounts that trigger the bonus.

One hack is to get a new card around the same time that you’re making a larger purchase that you already planned and saved for. Furniture is a great fit for this. If you’re already planning on getting a new couch or mattress, that could get you the bonus on its own. Get your new card, make the purchase, immediately pay down the balance with the money you already saved, get your bonus.

While it’s good to look around for the best bonus promo on the card you want, we never choose cards based on the bonus program alone:

  • You’ll be using the card for years, the perks matter a lot more than the bonus.
  • Points are not created equal. One card might offer 100,000 bonus points while another offers 60,000 points. There’s no way to tell which one has the better deal without really digging into the value of their points programs.
  • Just about every great card has a decent bonus.
  • Point hackers will chase bonus programs but we don’t recommend that approach. There are more important things for you to focus on.

We recommend choosing the card you want based on the rewards program and perks. Then accept whatever bonus the card happens to offer.

Perks

There are a number of perks that you might get from your credit card. For some, perks are more important than rewards.

Most credit cards have a host of perks that we all forget about, like car rental insurance and lost luggage protection. Standard perks that come with most cards:

  • Rental car insurance
  • Purchase protection
  • Return protection
  • Extended warranties
  • Trip cancellation insurance
  • Lost luggage replacement

These perks are so ubiquitous that you don’t have to factor them in when choosing the card you want. If one of them is super important to you, double check and make sure the card you’re considering does have it.

There ARE perks that only come with certain cards. These are the perks we get excited about. They include:

  • Uber reimbursement
  • Global Entry and TSA Precheck reimbursement
  • Lounge access
  • Travel reimbursement
  • Hotel upgrades and credits

If a perk is super valuable to you, it could be worth getting a less valuable rewards program just for the perk. Frankly, this is why most people get the American Express Platinum. Access to the Centurion lounges makes flying much more enjoyable.

Fees

Some credit card fees matter more than others.

While we absolutely hate maintenance fees on checking and savings accounts, all the best rewards cards have annual fees. The rewards and perks easily cover the annual fees as long as you’re regularly using the card. Cards tend to fall into three tiers with their annual fees:

  • No annual fee: There are no-fee cash back and rewards cards out there. The perks and rewards will be limited but it is possible to get a no-annual-fee rewards card.
  • $100 annual fee: Most of the good rewards programs start with annual fees in $90-100 range. This is a good level for your first rewards card.
  • $500 annual fee: The best cards are at this level, like the American Express Platinum and Chase Sapphire Reserve. They have perks none of the other cards have.

If cash is tight and you’re watching every dollar, get a no-annual-fee card. Once you’re more financially comfortable, the $100 annual fee cards open up the real rewards programs. And after you’re making $100,000 or more per year, get one of the $500 annual fee cards to maximize your rewards.

There are other fees to look out for too, like the foreign transaction fee.

I hate foreign transaction fees. I travel internationally a few times a year and I only choose cards without them. Traveling is expensive enough — the last thing I want is a 1-3% charge on top of everything.

Even if you don’t travel and you don’t think this is a big deal, you can still get hit with a foreign transaction fee within the U.S. The fee triggers any time a charge goes through a foreign bank. So if you buy something online, even if the price is in U.S. dollars, you could get an extra fee without realizing it.

Plenty of cards still have foreign transaction fees, so watch for this if you travel.

Simplicity

Some folks love playing points games.

I am not one of those people.

I want 1-2 cards that I can always default to. I’d much rather get 80% of the value without having to spend any time thinking about points.

No matter how good the rewards program is, it’s just not worth the effort if I have to actively think about it. I have plenty of more important things that need my attention.

When looking at rewards programs, look out for these common traps:

  • Rotating rewards categories. Cards that change the rules are never worth the extra effort in our opinion.
  • Increased rewards for minor spending categories. I don’t really care if I get 10X points when buying 7-Eleven slushies. Give me a break. I need categories where I spend regularly.
  • Points that get locked up in obscure programs. Yes, a random hotel credit card might give more points per dollar than other cards. But are the points worth anything if you can only use them at a hotel you never wanted to go to?

If a rewards program has too many restrictions, we don’t include it in our recommended cards.

What about the card APR?

I never pay attention to it. I can’t even tell you what the APRs are on my cards because I always pay the balance off every month.

Look, if you don’t pay off your balance every month, it’s not worth doing a rewards program at all. You’ll pay more in interest than you’ll ever get back in rewards. Get out of debt, get ahead of your spending, and build a habit of paying off your balances.

First build the financial habits and stability to pay off your balance every month. Then, and only then, should you get a rewards credit card.

The two best rewards credit cards

So what are the best rewards and cash back cards? Here are our recommendations.

Chase Sapphire Reserve

The best overall rewards credit card

  • “Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
  • Named “”Best Premium Travel Credit Card”” for 2018 by MONEY® Magazine
  • $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year
  • 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants & 1 point per $1 spent on all other purchases. $0 foreign transaction fees.
  • Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $750 toward travel
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Access to 1,000+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select
  • Up to $100 application fee credit for Global Entry or TSA Pre✓®”

If you travel at all, get this card. The perks are phenomenal.

First, you get $300 reimbursed every year on travel charges. I just booked a domestic flight yesterday and I got the whole flight reimbursed.

No foreign transaction fees either. The card’s also a Visa, which is the most widely accepted card internationally. That’s as good as it gets for having a reliable credit card to use internationally.

Global Entry and TSA Precheck were game changers for me when traveling. Half my stress and anxiety when traveling was eliminated. I never imagined how much better I’d feel without having to take my shoes off or my laptop out when going through security. Getting the application reimbursed is an amazing perk. Pro-tip: Get Global Entry, which includes TSA Precheck and is only slightly more expensive.

I spend a lot on travel and food. For racking up points, the Chase Sapphire Reserve is perfect for me. I get 3X on the majority of my spending. If only they had 3X points on cashmere sweaters, I would be in heaven.

There is one big downside: the $450 annual fee. That’s high for a lot of people.

The travel and Global Entry reimbursements do cover most of the fee. With the $300 annual travel reimbursement, the annual fee comes down to $150. We also have the $100 credit for Global Entry or TSA Precheck. These programs last 5 years, so that equals $20 per year. Basically, the real annual fee is $130.

When most travel rewards cards have annual fees of $95, paying $130 for the Chase Sapphire Reserve in order to get 3X points on travel and restaurants is a fantastic deal.

Citi Double Cash

The best cash back credit card

  • “Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
  • Balance Transfers do not earn cash back
  • 0% Intro APR on Balance Transfers for 18 months. After that, the variable APR will be 15.74% – 25.74% based on your creditworthiness*
  • Click ‘Apply Now’ to see the applicable balance transfer fee and how making a balance transfer impacts interest on purchases
  • No categories to track, no caps on cash back, no annual fee*”

I love the simplicity of this card. 2% cash back, no nonsense. Get your first 1% cash back when you spend, get another 1% when you pay down the charge. There’s no cash back limits and no annual fee either.

You won’t get cash back on any balance transfers but that’s pretty reasonable in our view.

There isn’t much in the way of perks, but that’s not why you should be considering this card in the first place.

It’s a no-frills, ultra-simple, maximize your cash back card.

For those of you who want to get a card and never think about your rewards every again, the Citi Double Cash is the card for you.

There is one major downside to the Citi Double Cash card. It has a 3% foreign transaction fee, which is super high. If you travel regularly, the 3% fee will stack up fast and negate any of the cash back rewards that you’ve earned. So only get the Citi Double Cash card if you rarely travel internationally. If you do travel regularly, I have another cash back option for you later on in this post.

Other cards to consider

Depending on your circumstances, there are a few other cards that could be the best option for you. Let’s go through them.

Chase Sapphire Preferred

  • “Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel”

The Chase Sapphire Preferred has a slightly less valuable points program and fewer perks than the Chase Sapphire Reserve. And the Sapphire Preferred comes with a smaller annual fee at $95.

You’ll still get 2X points on travel at restaurants, a great bonus offer, and no foreign transaction fees.

But you’ll be missing the travel credit, Priority Pass™ Select for lounge access, and the Global Entry or TSA Precheck credit. And you’ll only be getting 2X points instead of 3X points on travel and restaurants.

We recommend getting the Sapphire Preferred if the $450 annual fee on the Sapphire Reserve is too much of a stretch. The Sapphire Preferred is a great first step into the world of rewards credit cards that have annual fees. Plus, you can always upgrade to the Sapphire Reserve later.

If you make more than $100,000 per year, you should probably go straight to the Sapphire Reserve card.

Capital One Quicksilver Cash Rewards

  • “One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening
  • Earn unlimited 1.5% cash back on every purchase, every day
  • No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won’t expire for the life of the account and there’s no limit to how much you can earn
  • 0% intro APR on purchases for 15 months; 16.24%-26.24% variable APR after that
  • 0% intro APR on balance transfers for 15 months; 16.24%-26.24% variable APR after that; 3% fee on the amounts transferred within the first 15 months
  • Pay no annual fee or foreign transaction fees
  • See if you qualify for a better offer with Capital One:”

Yes, the 1.5% cash back isn’t as high as the 2% cash back from the Citi Double Cash.

But the Capital One Quicksilver has no foreign transaction fees, which means it’s perfect for folks who travel internationally and want the simplicity of a cash back card.

The annual fee does depend on your credit score. If it’s good enough, it’ll be waived. Otherwise the annual fee is $39.

If you travel internationally once per year and want a cash back card, we recommend getting the Capital One Quicksilver card.

American Express Platinum

  • “Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
  • Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
  • $550 annual fee.
  • Terms Apply.”

The Amex Platinum is all about the perks. If you’re looking to get perks that none of the other cards have, this is the card for you.

The Uber reimbursement is awesome. I easily spend $15/month on Uber rides, so that’s money right back in my pocket.

What’s the Uber VIP status that comes with the card? It’s an exclusive option that will match you with drivers who have a rating of 4.8 and above. It’s certainly nice, but it’s only available in a handful of cities. It also means you could wait a lot longer in order to get a driver with a high enough rating. It’s cool, but I wouldn’t get too excited by it.

The 5X points on flights and hotels booked directly with airlines is a pretty amazing perk. But I wouldn’t use it myself on flights. Honestly, I only book flights directly through airlines. I’ve heard too many horror stories from sites like Expedia or Orbitz. A good friend of mine booked a flight through Expedia and the airline never received the notice, so they didn’t reserve a ticket for him. He didn’t find out until he showed up for his connecting flight and had to buy another ticket on the spot for a crazy price. The worst part is it took him 9 months to get a refund from Expedia. I avoid that nonsense completely by finding the flight I want through Hipmunk or Google Flights, then booking directly through the airline.

One of the best perks of the Amex Platinum is getting access to the Centurion Lounges. These lounges are swanky — some of the nicest lounges out there. Unfortunately, they’re not in that many airports yet. Check to see if your main airport has one there. If you fly out of or through one of these airports regularly, this perk is a game-changer and is worth the annual fee on its own.

What about the 1000+ other lounges?

Credit card companies always inflate lounge access numbers. They’ll include a bunch of third-rate lounges that you’ll never want to go to anyway. Or they’ll add airport restaurants that offer a $20 discount off your meal in order to call that a “lounge.” When looking at lounge perks, I always check the exact lounges that are included in the airports that I fly through regularly.

So don’t assume you’ll be able to walk into any lounge. The majority of lounges will be out of your reach.

American Express Blue Cash Preferred

  • “Earn a $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • 6% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) – that means spending $60 a week at U.S. supermarkets could earn over $180 back per year.
  • 3% Cash Back at U.S. gas stations. 1% Cash Back on other purchases.
  • You spoke, we listened. Over 1.6 million more places in the U.S. started accepting American Express® Cards in 2018.
  • Cash Back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
  • $95 annual fee.
  • Terms Apply.”

Do you have a long commute and spend over $100 per week in groceries?

For families, getting 6% cash back on groceries is amazing. Most families easily spend over $100 per week on groceries, so it won’t be hard to hit the annual cash back limit. You’ll hit it if you spend $115 per week — that works out to $360 in cash back per year on groceries that you have to buy anyway. That’s like getting 3 weeks of groceries for free. It’s too bad there’s a cap. This card would be incredible if there wasn’t one.

The other key perk on the American Express Blue Cash is the 3% cash back on gas. Right now, this wouldn’t do anything for me since I live in a city and rarely drive. But when I was growing up, gas was one of my biggest expense categories. I lived in a small town in Colorado that was 45 minutes from anything. My family and I were filling up our gas tanks every 2-3 days. Getting 3% cash back would have been amazing.

You’ll also get 3% cash back on streaming subscriptions and transit (taxis/rideshare, buses, parking, tolls, trains, etc.). The streaming cash back is nice, but there’s only so much any of us can spend on streaming in a given month. And while I know folks that spend a ton of money on rideshares, they tend to get the Chase Reserve card since they spend even more money on travel and restaurants. The cash back on these categories will help but I wouldn’t expect it to make a major difference in your rewards.

Watch out for the 2.7% foreign transaction fee on this card. I’d avoid using it when traveling internationally.

In other words, if you have a family and a long commute, consider getting the Amex Blue Cash to maximize your rewards on groceries and gas.

Should you get multiple rewards cards?

Don’t even consider having multiple cards until you’re comfortably spending over $3,000 per month.

I do recommend getting two rewards cards sooner rather than later if you want an American Express card. As great as the American Express cards are, plenty of businesses don’t accept them. So you’ll want a backup Visa or Mastercard when you can’t use your American Express. For a backup rewards card, I’d get one with a lower annual fee since you won’t be using it as often.

I might consider getting two rewards cards if my lifestyle covered multiple rewards programs. Let’s say I was spending a lot of money on gas, restaurants, and travel every month. In that case, the Chase Sapphire Reserve and American Express Blue Cash Preferred would be a great combo. I’d put all my groceries and gas on my American Express Blue Cash Preferred and put my travel and restaurant expenses on my Chase Sapphire Reserve. I’d rack up a ton of points and cash back with a system that I could easily remember.

I set a limit for myself of only having 2-3 cards. After that, things get too complicated.

The best rewards credit cards of 2019 is a post from: I Will Teach You To Be Rich.



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The best checking accounts of 2019

My checking account pays me $83 per year for using it.

How?

First, I have an APY that gives me $5 per year. That’s pretty small, but it’s a start.

Then I have an ATM fee reimbursement. All my ATM fees get refunded at the end of the month. If I use the ATM once per month with an average fee of $4, that’s $48 per year.

And finally, my checking account has no foreign transaction fees. I travel internationally twice per year and usually withdraw $500 each time from international ATMs. Some banks have foreign transaction fees as high as 3%. That would cost me $30 for the year. Instead, I pay $0.

Not to mention that I have no minimums and no maintenance fees.

That’s a pretty sweet deal for a checking account.

Our financial lives revolve around our checking account. The majority of our cash and earnings pass through it and we access it all the time. Instead of having a checking account that dings you with fees and limits, get one with the perks that help you live your rich life.

The best checking account for you is largely going to depend on just a few things:

  1. Start with the best default: Charles Schwab checking. This is what I use.
  2. Do you want extra help with saving and budgeting? If so, get Simple.
  3. Do you deal with large amounts of cash or foreign currency regularly? If so, get a bank with a local branch.
  4. Is convenience a priority for you? If so, get a checking account at a bank that you already use.
  5. Do you want a cash back program on your debit card because you’re against using credit cards? If so, get Axos or Discover checking.

The best banks with the best checking accounts

Based on our criteria for what makes a great checking account, we’ve narrowed the options down to this list:

When building this list, we looked at these factors:

User experience

The user experience on a checking account matters a lot.

Unlike a savings account that we might check a few times per year, we’re in our checking accounts all the time. The online and mobile apps need to be decent. Thankfully, most banks have invested in their apps over the past few years, so the overall quality is much higher than it used to be.

We’ve only included checking accounts that have great online and mobile apps.

Fees

I see no reason to ever get a checking account with a minimum balance or maintenance fee. Every bank used to have them. And the big banks were the worst offenders. Then some upstart banks released no-fee checking accounts, which forced most banks to remove their fees.

Nearly all the banks in our list have no minimum balance or maintenance fees. And if they do, we’ve made sure to call them out.

In our opinion, there are too many amazing checking accounts without regular fees to settle for an account that does have them.

Convenience

As you consider the different checking account options, keep convenience in mind. Over time, simplifying your accounts and prioritizing a single bank will become a higher priority.

In the beginning, perks tend to matter more than convenience. Then it tends to flip at a certain point in your financial journey.

Take ATM reimbursements for example. Saving $3-5 every month makes a big difference early on. Then when you reach a certain level, skipping the ATM reimbursement to simplify your life starts to sound pretty appealing.

There’s no right answer here, it comes down to your preference. If you’re not sure, use these guidelines:

  • If you don’t care about having another bank login or you’re setting up your accounts for the first time, maximize your perks. Find the account with the best set of perks.
  • If the thought of managing another account feels like a headache, feel free to sacrifice a few perks in order to get a checking account at a bank that you’re already using.

We looked for checking accounts that either had great perks or other popular offerings that could be bundled together.

Reputation

Right off the bat, we excluded several checking accounts from our list. Mostly from major banks like Bank of America and Wells Fargo.

While not every major bank is horrible, a few of them definitely are. Wells Fargo committed one of the largest banking scandals of all time. And the list of horror stories from Bank of America is seemingly endless.

Some big banks are decent (like Chase), but we didn’t even consider offers from Wells Fargo or Bank of America. These are terrible banks. No matter how good their accounts, we recommend staying away.

Why APY doesn’t matter for your checking account

Lots of checking accounts promote their annual percentage yield (APY). Get another 0.40% return on your cash, sounds pretty amazing right?

Having an APY is completely worthless on a checking account. It’s effectively zero.

I’ve personally used the Charles Schwab checking account for years, which has a 0.40% APY, one of the highest out there.

And yet it earns me only $5 per year.

Why so little? There’s no reason to sit on a bunch of cash in a checking account. Even if you have a relatively high cash reserve (for whatever reason), you’re much better off putting that cash into a savings account, which gets you an even higher APY.

Sacrificing the $5 that you might make from a checking account APY in order to get another perk that’s more valuable is well worth the cost. When you’re looking through checking accounts, don’t even consider the APY. It sounds good in theory but has no real impact on your finances.

Best checking account reviews

Here’s how our top checking accounts all break down.

Axos

Axos has three primary checking accounts, and each has a different set of perks:

Essential

Rewards

CashBack

APY

None

Up to 1.25%

None

Monthly fee

None

None

None

Minimum balance

None

None

$1,500 average daily balance to get 1% cash back up to $2,000 per month

Mobile deposit

Yes

Yes

Yes

ATM reimbursement

Unlimited for U.S. ATMs

Unlimited for U.S. ATMs

Unlimited for U.S. ATMs

Foreign transaction fees

1%

1%

1%

Physical branches

None

None

None

The Rewards and CashBack accounts need a bit more explanation.

First, you can’t get an APY and cash back on the same account. You have to pick one or the other by choosing from one of the accounts.

For the APY on the Rewards account, it’s up to 1.25%. You’ll get 0.4166% each time you meet one of these conditions (do all three for a total APY of 1.25%):

  • Get monthly direct deposits of $1,000 or more.
  • Use your debit card for a total of 10 transactions per month (min $3 per transaction).
  • Use your debit 5 more times for a total of 15 transactions per month (min $3 per transaction).

On the CashBack account, you have to maintain an average daily balance of $1,500 over the month. The 1% cash back will also only apply to “signature-based transactions.” This means that the debit card has to be run as credit. Confusing right? Here’s another way to think of it: if your debit card is run as a debit card and you enter your pin, you don’t get cash back. You have to pick the credit option each time you use the card. And the cash back is limited to a maximum of $2,000 per month.

At first, the cash back sounds amazing. Cash back on a checking account seems like an incredible perk.

The problem is that the cash back will only apply when you’re using your debit card. With the minimum balance and the “signature-based” restriction, it’s not nearly as attractive as it could be. That’s an awful lot of restrictions when you could simply use a cash back credit card instead. By using a credit card, the cash back rewards will be much higher and with fewer restrictions.

I’d only consider Axos if you’re completely against using credit cards and want a checking card that has a debit card with some rewards. In that case, this is one way to get a cash back program without a credit card.

Even the APY Rewards account isn’t that interesting. In order to get the full 1.25% APY, you have to be using your debit card regularly. And if you’re using your debit card, you’re not using your credit card. The extra APY isn’t worth forgoing a credit card rewards program.

Charles Schwab

Perks

  • APY: 0.40%
  • Monthly fee: None
  • Minimum balance: None
  • Mobile deposit: Yes
  • ATM reimbursements: Unlimited
  • Foreign transaction fees: None
  • Physical branches: They do exist but there’s usually only 1-2 per city

For perks, Charles Schwab is the undisputed champion.

There are no monthly maintenance or minimum balance fees, no foreign transaction fees, unlimited ATM reimbursement without any restrictions, and an APY.

If you travel internationally or are looking for the checking account with the best perks, get the Charles Schwab checking account. We can’t recommend it enough.

There is a small catch when opening a Charles Schwab checking account: They require that you also open a brokerage account with them. There are no fees or minimum balance on the brokerage account — it’s completely free. The only requirement is to open the account. You never have to do anything with it. Schwab is hoping that you’ll use them as a brokerage when you’re ready to have one later.

The only real downside to the Charles Schwab checking account is the limited physical branches. If you handle cash or deal with foreign currency frequently, their branches might be extremely inconvenient for you.

As long as you do all of your banking online or get lucky by having a branch near you, get a Charles Schwab checking account.

HSBC

HSBC has quite a few checking accounts to choose from:

Basic Banking

Choice Checking

Advance

Premier

APY

None

None

0.01% on balances above $5

0.01% on balances above $5

Monthly fee

$3/month regardless of balance

$15/month if minimum balance isn’t met

$25/month if minimum balance isn’t met

$50/month if minimum balance isn’t met

Minimum balance

None

None with direct deposit or $1,500

$5,000 minimum balance w/ direct deposit or $10,000

$100,000 across accounts

Mobile deposit

Yes

Yes

Yes

Yes

ATM reimbursement

None, fee of $2.50 when using out-of-network ATMs

None, fee of $2.50 when using out-of-network ATMs

4 times per statement (U.S. only and doesn’t include NY)

Unlimited (U.S. only)

Foreign transaction fees

3%

3%

3%

None

Physical branches

Worldwide

Worldwide

Worldwide

Worldwide

Compared to the other accounts in this list, HSBC’s offerings aren’t great. There are monthly fees that are somewhat difficult to get waived, the ATM reimbursement is limited, and the foreign transaction fees are super high. None of the perks get competitive until you’re at the Premier level, which requires a $100,000 balance.

Why include HSBC at all?

One reason: some folks need a truly global bank. If you’re doing business internationally, have homes in multiple countries, or have an international lifestyle, the support of a global bank could be well worth the extra fees and lack of perks.

For most folks, skip HSBC entirely and choose one of the other options in this list.

Ally

Perks

  • APY: 0.60%
  • Monthly fee: None
  • Minimum balance: None
  • Mobile deposit: Yes
  • ATM reimbursement: Up to $10 per statement
  • Foreign transaction fees: Up to 1% of transaction
  • Physical branches: None

Ally has a pretty solid checking account.

However, it’s not as good as Charles Schwab. First, it has a 1% fee on foreign transactions. That’s a deal-breaker for me when traveling. Second, the ATM reimbursement is limited to $10 per statement. Third, while the APY is higher than the Charles Schwab checking account, the APY doesn’t matter on checking accounts anyway. Lastly, Ally doesn’t have any physical branches at all.

Ally has a good checking account, but you’ll be better off with Charles Schwab.

Capital One 360

Perks

  • APY: $0 – $50,000 is 0.20%, $50,000 – $100,000 is 0.75%, and over $100,000 is 1%
  • Monthly fee: None
  • Minimum balance: None
  • Mobile deposit: Yes
  • ATM reimbursement: Up to $15 per statement
  • Foreign transaction fees: None
  • Physical branches: A couple of branches or “cafes” in a few cities

Getting a 1% APY sounds nice but the Capital One 360 Checking tiers make it completely irrelevant.

Why would you have $100,000 in your checking account anyway? Even if you’re sitting on cash deliberately, it should be in a savings account, which will always have a much higher APY. And with the lower APY of 0.20% on lower balances, the value ends up being minor.

Don’t factor the APY into your decision to get the Capital One checking account.

That said, all the other perks for this account are pretty good. No maintenance or minimum balance fees, no foreign transaction fees, an ATM reimbursement up to $15 per statement, and a couple of physical branches if you’re in a major city.

While it’s not quite as good as the Charles Schwab account, it’s really close.

I’d strongly consider getting a Capital One 360 checking account if I already had a Capital One credit card. Being able to keep my accounts consolidated would be a huge bonus.

Discover

Perks

  • APY: None
  • Monthly fee: None
  • Minimum balance: None
  • Mobile deposit: Yes
  • ATM reimbursement: None
  • Foreign transaction fees: None but good luck trying to get a Discover card accepted internationally
  • Physical branches: None
  • Cash back: 1% on up to $3,000 of debit card purchases

The Discover checking account is a bland account. There’s nothing bad about it, but there’s nothing good about it either.

It does have two main perks: no foreign transaction fees and cash back. The foreign transaction fees are irrelevant. I wouldn’t even attempt to use Discover when traveling internationally, I stick to a Visa card. The cash back at 1% is nice, but you’d have to skip a credit card rewards program in order to use the debit card. This is only valuable if you’ve decided to avoid credit cards entirely. It’s also limited to $30 worth of cash back per month. That’s extremely low.

I’d avoid the Discover checking account unless I was already using Discover credit cards and desperately wanted the extra simplicity from having all my accounts in one place. Or if I was avoiding credit cards entirely and wanted a debit card with a cash back program.

Chase

Chase actually has three checking accounts:

Chase Total Checking

Chase Premier Plus Checking

Chase Sapphire Checking

APY

None

0.01%

0.01%

Monthly fee

$12, waived if you have $500 of direct deposits, a balance of $1,500 at the beginning of every day, or an average balance of $5,000 across your checking and savings accounts

$25, waived if you have an average balance of $15,000 across your checking and savings accounts or a Chase mortgage with linked payments

$25, waived if you have an average balance of $75,000 across your checking and savings accounts

Minimum balance

None

None

None

Mobile deposit

Yes

Yes

Yes

ATM reimbursement

None

4 times per statement

Unlimited

Foreign transaction fees

None

None

None

Physical branches

Lots

Lots

Lots

The hurdles that Chase requires in order to get the monthly fee waived is annoying. This is the main downside of the Chase checking accounts.

However, they could still be the best accounts for you. I’d seriously consider a Chase checking account if I was also planning on getting a Chase savings account and knew that I’d easily hit their balance requirements in order to get the monthly fee waived. We have a deep-dive on all the best savings accounts here.

Once we factor out the monthly fee, the Premier Plus and Sapphire Checking are both decent offers. APY doesn’t really matter anyway, both have mobile banking and deposits, no foreign transaction fees, and ATM reimbursements. Plus, we get the added bonus of being able to walk into a physical branch since Chase branches are in most cities.

Basically, the Chase checking accounts are a competitive checking account with all the benefits of a major bank. And if you have the Chase credit cards, you could get all your accounts with one bank, making everything really convenient.

USAA

Perks

  • APY: 0.01% with $1,000 or more
  • Monthly fee: None
  • Minimum balance: $25 to open the account, then no minimum balance after that
  • Mobile deposit: Yes
  • ATM reimbursement: Up to $15 per statement but there is a $2 fee from USAA on every ATM withdrawal after the first 10 per statement
  • Foreign transaction fees: 1%
  • Physical branches: Branches in Colorado Springs, West Point, Annapolis, and San Antonio
  • Military perks: If you’re part of the military, there’s no initial deposit required, you get a pre-filled 1199A, and you get paid a day early

If you’re in the military, there are a few unique perks that other checking accounts don’t have. But I wouldn’t call them game-changing perks. The 1199A is a direct deposit form. You only have to fill this out once when setting up your new account (unless you switch jobs). This only saves you 15 minutes of time.

Getting paid a day early is kind of nice but only impacts you during the first payment cycle. Then your paychecks will have to last the same number of days as they usually would.

Otherwise, none of the perks are that great. The ATM reimbursement only lasts until $15 and then USAA hits you with a fee after the first 10 per statement. There’s also that 1% foreign transaction fee to watch out for, so you’d want to avoid using this account when traveling internationally.

On the whole, there are better checking accounts to choose from. I’d only consider the USSA checking account if you’re already doing a lot of business with USAA and want to keep your accounts in one place. For example, their car insurance is pretty good.

Simple

Perks

  • APY: 2.02% on “Protected Goals” with a balance of at least $2,000
  • Monthly fee: None
  • Minimum balance: None
  • Mobile deposit: Yes
  • ATM reimbursement: None
  • Foreign transaction fees: Up to 1%
  • Physical branches: None

Simple does things a bit differently than the other banks. Instead of splitting your balances between checkings and savings, Simple has “Goals” and “Save to Spend” sections.

In other words, Simple is more of a combined checking and savings account with an amazing UI that helps you control your spending.

You’ll set up as many Goals as you want and when you want to hit your savings goals. Like saving $2,000 for a trip to Italy in 6 months. Then Simple automatically figures out how much you need to save and regularly reduces that amount from your Safe to Spend amount.

Your Safe to Spend amount is your total balance, minus your Goals and scheduled bills over the next 30 days. Whenever you’re wondering if you can afford something, simply check the Safe to Spend amount and if there’s enough, go for it. This helps immensely with guilt-free spending.

Simple also has a set of reports to track spending across categories over time.

I highly recommend Simple if you’d like an account that makes it easier to save and budget.

Chime

Perks

  • APY: None
  • Monthly fee: None
  • Minimum balance: None
  • Mobile deposit: Yes
  • ATM reimbursement: None and Chime has a $2.50 fee for any out-of-network ATM
  • Foreign transaction fees: No fees on foreign transactions but you do get the $2.50 ATM fee since Chime’s in-network ATMs are only in the U.S.
  • Physical branches: None
  • Early direct deposit: Yes
  • Send checks by mail: Yes, Chime will send the check for you
  • Round-up savings: Automatically round up every transaction to the nearest dollar, placing that extra amount into a savings account

Chime is another bank that combines your checking and savings accounts. It’s similar to Simple.

It has a great UI and a nifty way to help you save. It’ll automatically round up your charges to the nearest dollar, putting the difference in a savings account. Saving a few pennies will add up fast. If you’ve had trouble saving in the past, this will help a lot with hitting your savings goals.

You can also transfer up to 10% of your pay into a savings account. While this is a nice touch, it’s possible to set up an automatic transfer between any checking and savings accounts.

On the whole, we recommend Simple over Chime, since Simple has more features to help you with saving and budgeting.

The 5-step process to finding the best checking account for you

  1. Start with the best default: Charles Schwab checking.
  2. Do you want extra help with saving and budgeting? If so, get Simple.
  3. Do you deal with large amounts of cash or foreign currency regularly? If so, get a bank with a local branch.
  4. Is convenience a priority for you? If so, get a checking account at a bank that you already use.
  5. Do you want a cash back program on your debit card because you’re against using credit cards? If so, get Axos or Discover checking.

Step 1: Start with the best default checking account

If we look at the value of perks across different checking accounts, Charles Schwab beats all the other accounts easily. There are no maintenance fees, no foreign exchange fees, unlimited reimbursement on ATMs worldwide, and an APY.

If you’re looking for the most valuable checking account and the following steps don’t apply to you, we recommend getting Charles Schwab.

For the other options that we’re about to walk through, evaluate those accounts against the Charles Schwab checking account.

Step 2: Do you want extra help with saving and budgeting?

Let’s say that you’re earlier in your financial journey and still developing habits around saving and budgeting.

In that case, I strongly recommend giving Simple a try. It’s a combined savings and checking account with an interface built around helping you save. It’ll also figure out all your bills for you, telling you exactly what you can spend at any given moment, completely guilt-free.

Yes, Simple’s APY on its savings account isn’t as high as other savings accounts. And the perks on its checking account aren’t as valuable as Charles Schwab. But the extra support you get with saving and spending is well worth it in my opinion.

Step 3: Do you deal with large amounts of cash or foreign currency regularly?

As much as I love doing everything online, there are two good reasons to choose a checking account that has fewer perks in order to have a bank with a physical branch nearby.

1. Large cash withdrawals or deposits

If, for whatever reason, you deal with large amounts of cash regularly, you really need a physical branch.

Take my friend for example. One of his main hobbies is gambling. He treats it as an expense and always stays within his budget. He’s in the fortunate position of being able to do this.

He heads out to Las Vegas once or twice a year and withdraws a bundle of cash for the trip. Neither of us has personally tried to see how many consecutive withdrawals we can make from a single ATM, but we don’t really want to find out. In situations like this, a local bank completely solves the problem.

If you need to withdraw more cash than a typical ATM can handle even once or twice a year, it’s worth getting a checking account at a local bank.

2. Foreign currency

If you deal with foreign currency regularly, I’ve found it immensely helpful to have a physical branch nearby.

Years ago, I did a workshop for a Canadian startup accelerator and got paid $4,000 in Canadian dollars. They mailed me a check. While it’s possible to do a mobile deposit with normal checks through my Charles Schwab account, that doesn’t work for checks in other currencies. Luckily, Charles Schwab tends to have a branch in most cities. I still had to drive all the way across the city multiple times to get the deposit sorted out. Thankfully, I haven’t had to deal with this again. But if I did, I’d get a checking account at a large, local bank just for depositing checks in foreign currencies.

Another perk of having a local branch: exchanging foreign currency back into U.S. dollars. After any international trip, I always end up with $50-100 worth of leftover foreign currency. I consider the airport currency exchange kiosks a complete rip-off. Not only are the exchange rates terrible, a lot of them don’t accept smaller bills. Having a local branch completely solves my leftover foreign currency problem. I can simply walk in, give them whatever I have left, and they deposit it into my account at a decent exchange rate. Problem solved.

So if you’re dealing with foreign currency or large amounts of cash even a few times a year, it’s worth getting a checking account with a local branch, even if the perks aren’t as good. Hopefully, one of the banks in our list has a local branch near you. If you’re not sure, start with Chase, since they have branches all over the U.S.

Step 4: Is convenience a priority for you?

Before jumping into a new account, ask yourself how much you value convenience.

Do you really want to manage a dozen different financial accounts? I know that seems like a lot, but when you factor in checking, multiple credit cards, a mortgage, student loans, 401Ks, brokerage accounts, savings, joint accounts, and all the accounts for your spouse, it adds up really fast.

The more time goes on, the more you’ll value simplicity across your accounts. I know multiple people who have gladly paid ATM fees again just to get a few of their accounts under the same bank.

Capital One is a great option for simplicity, since they have great credit card offers and they have a really strong checking account. While Chase’s checking accounts aren’t as good, their credit cards tend to be among the best. And if you use Discover cards, definitely consider Discover’s checking account.

Step 5: Do you want a cash back program on your debit card because you’re against using credit cards?

Generally, you want to use credit cards for the majority of your spending. With all the travel rewards and cash back credit card options out there, it’s free money back in your pocket. As long as you pay off your credit cards every month, there’s no downside.

But what if you’re still against credit cards? Some folks have trouble controlling their spending on credit cards and others are philosophically opposed. Or maybe their credit score is too low to get a credit card.

If that’s you, there are a few cash back programs on debit cards for checking accounts. Axos and Discover both have great options.

Again, a cash back program on a debit card will always be inferior to credit card cash back offers. You will get less money back by going this route. That said, it may still be worth it for you if you’re trying to avoid credit cards entirely.

The best checking accounts of 2019 is a post from: I Will Teach You To Be Rich.



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Summer Vacation!

Well, apparently I need a vacation after my European vacation! I've come home to a Real Life in which I have too much to do and not enough time to do it. The yard needs pruning, the house needs cleaning, my body needs exercise, friends need visiting, and this website needs lots of work behind the scenes.

Rather than try to spread myself to thin — my modus operandi — I'm going to do the wise thing: I'm going to take a break. For the next two weeks, I won't be publishing anything new here at Get Rich Slowly. (I will, however, continue to send out the Friday emails. And I'll continue to update the Spare Change section on the front page with cool links from other sites.)

While this isn't an ideal solution, I think it's best for the long-term. I have a lot of travel coming up later this summer. (I'm basically on the road from August 15th to October 15th.) If I don't make time now to take care of things, I'll wish I had.

So, go outside and enjoy the summer sun! I'll see you again on July 1st.

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How To Financially Prepare For The Climate Crisis

Researchers have concluded that human civilization will crumble by 2050 thanks to climate change. From the looks of it, we’re doomed so all financial preparation is for naught. However, before mankind actually comes to its end, money will be a temporary buffer against the loss of everything we take for granted now.  How to prepare [...]

The post How To Financially Prepare For The Climate Crisis appeared first on Money After Graduation.



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Wednesday, 12 June 2019

3 Quick Tips to Save Big on Your Next Cell Phone and Plan

Canada boasts some of the highest mobile phone and plan costs in the world. Here’s how to score a deal on your next phone upgrade and data plan! If you follow the news at all, or you have been to a mall, you probably know that here in the Great White North we got the [...]

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Monday, 10 June 2019

How to make better (and quicker) decisions

Last week, I wrote about how I've embraced mindful shopping. I'm teaching myself to be more deliberate about the things I own and buy. My goal is to buy less and, more importantly, to own less.

As part of this, I don't want to waste time shopping. I'm trying to train myself to make better decisions more quickly. This is tough for me to do.

By nature, I want to evaluate every alternative, to find the best option in every circumstance. Left to my own devices, I can spend two hours trying to decide which chainsaw is the best chainsaw at the best price.

There's nothing wrong with this, of course. Comparison shopping is a good thing. But there's a fine line. Some comparison can help you avoid purchasing poor products. Too much, on the other hand, becomes a tax on your time and your brainwidth.

I want to find a balance. I no longer feel the need to make a perfect decision. (Is there such a thing?) I'm becoming comfortable with the idea of accepting decisions that are “good enough”.

In short, I'm trying to incorporate lessons I've learned from The Paradox of Choice by Barry Schwartz so that I can take some of the suck out of shopping.

The Paradox of Choice

For those unfamiliar, Barry Schwartz is a psychology professor from Swarthmore College. His 2004 book The Paradox of Choice argues that while life without choice is almost unbearable, having too many choices carries burdens of its own.

“I believe that many modern Americans are feeling less and less satisfied even as their freedom of choice expands,” Schwartz writes. “Having too many choices produces psychological distress.”

This certainly rings true from my own experience. And not just with money decisions.

One of the joys of financial independence is the ability to choose how to spend your time. Indeed, this is a unique luxury. However, it's also a burden. When you have an infinite number of options available, how do you make decisions about what to do with your time? (My answer, as you can probably guess, is to be clear about your purpose, and to make decisions aligned with that purpose.)

Schwartz argues that faced with so many options and decisions, we would be better off if we:

  • Embraced certain voluntary constraints on our choices (instead of rebelling against limits).
  • Opting for “good enough” instead of always seeking the best.
  • Lowering our expectations.
  • Made our decisions non-reversible.
  • Paid less attention to other people.

“A majority of people want more control over the details of their lives,” he writes, “but a majority of people also want to simplify their lives.” Schwartz calls this the paradox of choice. Greater choices creates greater complexity. That's what we think we want. In reality, most folks crave simplicity — and simplicity requires fewer choices.

So, how can we confront this paradox? Is it possible to have the best of both worlds? How do we go about wrestling with the ever-increasing array of choices while simultaneously seeking simplicity.

That's precisely what I've been trying to answer for myself lately.

At the end of The Paradox of Choice, Schwartz shares eleven steps that he believes can help mitigate (or eliminate) the distress caused by so much choice. Let's look at four that I've found effective in my own life.

Learn to Love Constraints

“To manage the problem of excessive choice,” Schwartz writes, “we must decide which choices in our life matter and focus our time and energy there.” Establish personal rules of thumb and follow them. Artificially limit your number of choices. You might, for instance, have a rule that you'll only visit two stores when shopping for clothing.

Here's a real-life example of limiting your number of choices.

For the past six months, I've been in the market for a new vehicle. There are hundreds to choose form, and if I were to let myself look at the entire universe of new cars, I'd never make a decision. Instead, I've created my own “pocket universe” of cars to choose from: compact and sub-compact vehicles that are available in electric or hybrid versions.

Another great way to exercise contraint is to ignore all of the options that are available, especially for products you purchase regularly. Do you need to examine every cheese at the grocery store? Every can of soup? Every loaf of bread? Of course not. You have favorites. You have defaults.

Whenever possible, stick with what you know — especially if what you know already makes you happy.

Satisfice More and Mazimize Less

According to Schwartz, maximizers are those who only accept the best. Every time they make a choice, they want to make the best choice possible. And even after they do make a choice, they worry there might have been a better option.

Satisficers, on the other hand, have learned that contrary to conventional wisdom, good enough often is. They're willing to settle for something other than the best. A satisficer still has expectations and standards, but once he's found something that meets those standards, the search is over.

My cousin Duane is a maximizer. He agonizes over buying decisions — even ordering food in a restaurant.

Duane knows it doesn't make much sense to deliberate over a menu decision, but he can't help it. He can't stop himself. “What if I choose something wrong?” he says, mocking himself. “That's why I like buffets.” With a buffet, he has an “out” if he doesn't like what he chooses. He can go choose something else.

I used to be like this too. Now, though, I take a different approach when dining out. I skim the menu until I find something I like, then I look no further. That first item I find is what I order. What's the point of trying to pick the perfect meal? Will it make me any happier? Probably not. I'm satisfied choosing the first thing that looks good.

I took this approach when buying my chainsaw last week. It worked great! I've invested in the EGO Power+ series of battery-powered tools. I checked to see if they produce an electric chainsaw. They do, and it's highly rated. I ordered it without looking at any other options.

Regret Less

After you've made a choice, move on. Don't linger over other possibilities. Don't second-guess yourself. If you buy stock in Dell instead of Apple, don't continue to track Apple's price. Stick with what you have.

More to the point, don't compare your choices with other possibilities. “Our evaluation of our choices is profoundly affected by what we compare them with,” Schwartz writes, “including comparisons with alternatives that exist only in our imaginations.”

He argues that we can vastly improve our subjective experience by striving to be grateful for what's good about our choices rather than being disappointed by what's bad about them.

It's also important to remember that most choices are complex. There's rarely an option that's clearly superior to all others in every single way. Each choice has its advantages and its disadvantages.

When faced with especially tough decisions, consider using the Jeff Bezos “regret minimization framework“.

Manage Expectations

How we feel about our decisions is strongly influenced by our expectations of the results. You might, for example, build up in your mind that a long-awaited Hawaiian vacation is going to be amazing — then it's not. It's fine, but it's not nearly what you'd hoped.

The problem here isn't Hawaii or the ocean or the hotel. The problem is the expectations you created for the experience. High expectations are the enemy of happiness.

Similarly, it's important to remember hedonic adaptation will occur. Even if your new Tesla is thrilling during the first week of ownership, that thrill won't last. You'll gradually become accustomed to your new normal. Before long, that Tesla will seem mundane.

Schwartz argues that one of the best ways to control expectations and to anticipate hedonic adaptation is to be a satisficer rather than a maximizer. Don't look for (or expect to find) the “perfect thing”. It doesn't exist. If your aim is only satisfaction, your decisions are less likely to fall short of expectations.

Another way to manage expectations is to stop comparing yourself to others. Doing so is nearly always destructive to your sense of well-being. Don't do it. Stop trying to keep up with the Joneses. “Focus on what makes you happy,” Schwartz writes, “and what gives meaning to your life.”

Thinking in Bets

Last year, I read and reviewed Thinking in Bets, Annie Duke's book about making smarter decisions when you don't have all the facts. (Here's my review.) Duke says that we should stop thinking in terms of right and wrong. Few things are ever 0% or 100% likely to occur. Few people are ever 0% or 100% right about what they know or believe. Instead, we should think in bets.

According to Duke, all decisions are bets on the future. An unwanted result doesn't mean we made a poor choice. It just means the bet didn't pay off this one time. If you get a head injury in a motorcycle crash, that doesn't mean wearing a helmet was a bad decision. It was a good decision, but this one result was poor.

“Job and relocation decisions are bets,” she writes. “Sales negotiations and contracts are bets. Buying a house is a bet. Ordering the chicken instead of the steak is a bet. Everything is a bet.”

In the year since I read her book, I've thought of this concept often. Another way for me to make better (and quicker) decisions is to embrace the idea that I'm betting on outcomes. When I buy something, I'm betting whether or not I'll like it because it meets my needs.

Taken together, all of these ideas — those from Duke and those from Schwartz — are helping me spend less time deliberating over decisions and more time enjoying life.

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