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Apple Pay Will Make You Pay

By Frugaling 8 Comments

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iPhone and Macbook for Apple Pay
Photo: William Iven/Unsplash

Apple’s agenda should scare you

Last week, Apple held their 2016 Worldwide Developer Conference (WWDC). Like always, it was a smorgasbord of updates to operating systems and apps, developer fandom, and hooplah over Siri’s special powers (now she’ll work across devices!).

Cue the applause.

However, I had this weird problem when I went to stream the keynote. You see, Google Chrome was blocked from being able to watch the event. The website told me I needed to be in the Safari browser on a Mac or iOS device (i.e., iPhone or iPad).

I thought nothing of it at the time; except, “Well, this is inconvenient.” But really, why should I care? I simply switched to Safari and then streamed every remaining second of it. My mind spit out whatever I was doing beforehand in favor of all things Apple. I was jacked in.

But in that moment — that blip of inconvenience due to Apple’s desire to withhold information from any Android or PC user, something distasteful festered. My head kept picking at it like a stubborn cuticle. It felt uncomfortable to be forced to switch. Why should I need to? There’s something arrogant about it. Apple was a pioneer in technology; surely, they knew how to present the keynote address across multiple browsers, right? The intentionality felt hostile — a confrontation to openness in the Internet Age.

The cost of being a user

Many people have talked about Apple as a “walled garden.” What they’re implying is that the company is protective of their devices, operating system functions, and who can play in the iOS world. For developers and consumers, the effects have pros and cons. Apple’s devices are more secure, but they’re also more expensive.

You’ve got to pay up to belong, but membership has its… privileges. The devices are beautiful and the operating system is solid. But paying up – in more ways than one — is quickly becoming Apple’s specialty. For starters, their devices have some of the largest margins in the industry. As most of the hardware industry has dwindled, Apple’s pushed on to become one of the largest companies in the world.

Now, their financial acumen goes beyond the machines they manufacture. About two years ago, the company made moves into the financial industry with Apple Pay. It used to be limited to restaurants, groceries, gas stations, and other retailers that accept plastic credit cards. Those retailers employed Near-Field Communication (NFC) devices that could then accept iPhones and Watches via Apple Pay. Users could rid their wallet of the extra plastic in the process. How easy!

You’ll pay for updates to Apple Pay

This year’s WWDC contained a little nod to Apple Pay in the form of a button that could be placed on websites that accept credit transactions. They dubbed it, “Apple Pay on the Web.” This new button would take the place of filling out forms and spending countless hours of your life punching in 16-digit numbers, expiration dates, CVV codes, full names, addresses, phone numbers, your blood type, your cousin’s maiden name, and your favorite fruit.

Apple’s making a value proposition. Essentially, they’re saying, “We know you value your time. That’s why we’ve created an ingenious solution that’ll solve the hassle and time it takes to shop online.”

Behind this “solution” is a masterclass in consumption. First, Apple Pay will only work with Macs; at least, to start. You’ll need a Mac running Safari. As always, Apple’s computers have a large profit margin built in. That means you’re paying a hefty amount over comparable systems just to pay for things online (are we noticing a consumption loop here?).

Second, Apple is pairing Apple Pay on the Web with iPhones. That phone is going to cost you, as well. Heck, a new iPhone costs about $700 off contract. The phone will be used to “confirm” transactions — press your thumb (or any other digit of your choosing) to your TouchID sensor. Et voila! You’ve purchased… something.

Third, all this “innovation” is to help you consume, to pay more, to think less, to spend more time mashing your thumb against a sensor. It’s made for businesses more than consumers. And while it’s awesome to have autofill forms, instant transactions, and secure payments, shouldn’t we weigh the potential costs of this so-called progress?

Reduced friction = increased spend

The convenience of online retailers contains a risk for some spenders: reduced friction. Friction occurs when you rub your hands together — feel that heat? Friction is the reason I’m burning so much gas in my car, too. Just read the company’s description about Apple Pay:

Customers love the simplicity of Apple Pay, and you’ll love the increased conversion rates and new user adoption that come with it.

Apple Pay for the Web will reduce time spent critically making important decisions that directly affect your wallet. Will you spend or save today? Even more, the method continues to encourage the Apple-everything mindset in the face of lofty price points. They’ve created a system to reduce friction for a small subset of the population — those that can pay up to have at least two Apple-branded products at all times.

Today, I see a modality that shouldn’t be encouraged. For Apple, by Apple. They’re creating a world where nobody else can play; unless, you’re an Apple owner, then you’ll pay.

Filed Under: Save Money Tagged With: Apple, apple pay, internet, iPhone, Macbook, NFC, Online, reduced friction, Shopping, TouchID, Walled Garden, web

The Frugal Guide To Buying A Used Car

By Frugaling 10 Comments

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Volkswagen VW Jetta Used Car Buying

I have a confession to make, but I’m a bit embarrassed to admit it. I bought a used car. Please don’t judge me for this news update. Would you allow me to explain why a frugal guy like me did this and how I made it as frugal as possible? Pretty please?

For starters, I’m moving out of Iowa City this year to another city nearby. The rents are cheaper there, but it’ll require a little commute. Without a car, the move would be impossible. There’s no regular, public transportation available. I wouldn’t be able to make it to school and work each day.

I fretted over this decision for quite some time. I remembered how stressed and awful I felt with a car. It encouraged me to be lazy — driving instead of biking or walking. Additionally, the car loan I had left me nearly penniless each month. I couldn’t save much.

For the last year-and-a-half, I went without a car. I sold it, paid off the remainder of my car loan, and began saving hundreds of dollars by biking everywhere. The commutes to grocery stores, school, and work were tiring, but I was saving every pedal of the way. In fact, over this last 18 months, I saved thousands of dollars.

Now, I’m re-entering the world of car ownership. To make this purchase, I needed another car loan. I paid off about two-fifths of the total price and financed the rest of a $10,000 2014 Volkswagen Jetta. Let’s dig a little deeper into why I chose this car and how I made it as frugal as possible.

Make time for the search

When someone finally decides to buy a car, two pressures tend to take hold: I want it now and I need it now thinking. The want it now has extra time to find a good value, but feel compelled to be zooming around in one as soon as possible. The secondary, need it now group has not left enough time to thoroughly search. They don’t have the luxury of looking.

If at all possible, plan for a car search. Begin it as soon as you get an inkling you’ll need a car. For me, I knew about 6-7 months ago a car would be needed. I started browsing Craigslist, eBay Motors, and dealers’ websites for more information about what was available, pricing, and distance from me.

Then, for every car that sparked my interest and seemed like a good deal, I researched price expectations, reliability information, ratings, and true cost of ownership. Around the same time, I visited my car insurance’s website to calculate expected monthly costs for every possible iteration. By the end of my 6 month search, I knew my stuff — I just needed the car.

Use a credit union for financing

Big banks have one motivation: big profit. When it comes to financing, they’re usually a last resort — regardless of credit history, score, or income. Unless you are immensely wealthy, big banks can’t help save you money on a car loan.

When I was gearing up to buy my first car a few years ago, the first trip I made was to Wells Fargo. I’d been a banking customer with them for 6 years at the time. Curious to know what they’d offer me, I asked the loan officer and was told I should expect double-digit interest on any loan duration or amount. I laughed out loud at the absurdity, and asked if those were the final offers. They were.

I found solace at a credit union; PenFed, to be more specific. Credit unions run on shareholders, much like banks do. The key distinction is that shareholders are credit union members. If you open an account, you usually become a shareholder. You can vote on new board members, propose programs, and advocate for fairer pricing. Credit unions are motivated to help their members succeed. They’re not in it solely for the profit.

With my used VW Jetta, PenFed was able to give me a 2.49% car loan for four years. Even though I’m spreading the remainder of the car over four years, the payments add up rapidly. Fortunately, little will be going back to the bank as interest.

Find rental/fleet vehicles

When you look at the price I paid versus the expected price for a 2014 VW Jetta (upwards of $12,000 for one in this condition), you might wonder, how the heck did he do it?! The key was finding a rental vehicle in this instance.

There’s an underlying assumption that rental and fleet vehicles get driven harder than personally owned vehicles. In fact, it’s pervasive if you look into buying rental cars. Commenters and “experts” weigh in to tell you what they think, but the best advice I’ve seen comes from Bankrate.com:

While we all know rental cars have somewhat of a bad reputation as cars that have suffered abuse by their renters, there’s no guarantee any used car you buy hasn’t been abused in the same way unless you personally know its history.

It simply comes down to logic and critical thinking on this one. All used cars get driven, right? When we buy a used vehicle, we assume either the individual owner or dealer is telling the truth. Some rental vehicles get driven hard, and some non-rental used cars get driven hard, as well. There’s really no way of knowing.

Amidst the murkiness, you can often find a good deal. Whether true or not, people tend to discount these cars and the dealers usually do, too.

Find a friend — don’t go alone

Whether you go to a dealer, a Craigslist creeper, or your neighbor, scoping out used cars can be tricky. It’s hard to check over an entire car at one look, and oftentimes test drives don’t allow the potential purchaser to spot the defects. This is a simple instance where four eyes and two brains are better than yours alone.

When I went shopping, I tried to bring a good friend of mine who also happens to know cars. That allowed me to assume a role when at dealerships and individual’s cars. I could play stupid, as my friend checked under the hood, around the brakes, inside the wheel well, etc. This team effort allowed me to focus on what the seller was saying to pay careful attention to the words shared.

Additionally, having two people present makes a more convincing argument. When you’re negotiating a final offer, having an “expert” around can help convince someone to lower the amount. It’s a game of triangulation against the seller, and if you can perfect it, the prices can become much better.

Alright, now I’d love to know what secrets you have to securing a good value when shopping for used cars. What tips do you have?

Filed Under: Loans, Save Money Tagged With: buying, car loan, Guide, Interest, Shopping, used car

$200 February Food Budget Results

By Frugaling 36 Comments

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Food Budget Meals Salmon

My food and drink budget was broken

A couple months ago I would’ve been ashamed to show you my food and drink expenses. They were atmospheric. I’d regularly spend over $400, with the occasional $500 or $600 month here and there. It was my one budgetary weakness, but something moveable and malleable. I decided to aim right at it.

In January, both to celebrate the New Year and form a resolution, I decided to set my first hardcore food and drink budget. I wanted to reduce everything: eating out, eating in, drinking out, and drinking in. I wanted to get down to $200 for anything food or drink related. I wanted to prove it to myself, and feel the budgetary benefit; frankly, I needed this change.

As the month came to a close, I reflected on what had worked, what I bought, and how much I spent. I was over budget — big time. My expense tracker showed a glaring total: $362.69.

What I learned from last month

While I had significantly reduced my food and drink budget compared to prior months, I was bummed. Here I was, trying to shape up and save. Heck, I’m the guy who runs a site about frugality and simple living, and even I couldn’t reduce these expenses enough.

Despite overshooting my budget by about $160, January provided some important lessons.

First, go to the store and buy strategically.

If you constantly go to the store and are exposed to new stimuli and purchase options, you’ll spend more. Go when you need to and bring a solid list of must-haves — not wants. This lesson is harder for me to implement, and you’ll notice how many trips are made because of it. I tend to go whenever I can, as I carpool with friends to the store.

Second, reduce date expenditures and eating/drinking out.

I’m a single guy, and in January I went on a few too many dates. Both of these killed my budget, but when decreased, they’d be an opportunity to save in February.

Third, with dietary restrictions, look for common products before speciality options.

I don’t eat entirely gluten-free, but I’m low-FODMAP, which often means less gluten-laden products. In January, I bought gluten-free pretzels and other assorted products that were made to taste and feel like normal foods. Buying naturally gluten-free items would save me a lot.

February’s results are in — drumroll please!

February is the shortest month of the year. I only needed to stay at or below $200 this month for 28 days. As the days rolled on by, I could feel it, I was going to be close.

Day 1: $54.81 (Groceries for self and hosted a party)
Day 2: $0
Day 3: $0
Day 4: $37.53 (Groceries)
Day 5: $0
Day 6: $0
Day 7: $24.52 (Groceries)
Day 8: $0
Day 9: $5.57 (Groceries)
Day 10: $0
Day 11: $0
Day 12: $1.77 (ARGHH, SO HUNGRY! Clif Bar)
Day 13: $28.50 (Groceries)
Day 14: $33.79 (Groceries)
Day 15: $0
Day 16: $3.66 (Coffee drink)
Day 17: $10.47 (Groceries)
Day 18: $0
Day 19: $0
Day 20: $4.32 (Groceries)
Day 21: $0
Day 22: $0
Day 23: $0
Day 24: $0
Day 25: $0
Day 26: $7 (Groceries)
Day 27: $0
Day 28: $0

Today, I’m happy to report I spent only $211.94! While that’s about $12 over the intended budget, I could not be more content. Woo!

Over the last couple years, I’ve cheated and procrastinated away thousands of dollars in food and drink expenses. I’ve rationalized the spending every time (“Oh, my week is difficult, I’m tired, and need some food.”).

Looking at the past, with $400-600 months of spending, I feel guilty and saddened. I was trying to save and build a better future, but one of the weakest parts of my budget stayed untrained. I was spending too much, and needed to do more than admit it — I needed to share it with you all.

Important strategies going forward

1. Get creative with social opportunities

Don’t be afraid to host and create social gatherings! Bring on the friendships — these are too important to miss out. Instead of going out on the town, stay in-house and when possible, make them potlucks. Likewise, game nights and good ol’ conversation doesn’t cost a thing.

2. Bring protein-heavy snacks to reduce cravings in a pinch

This particular strategy was vital to my success this month. If you don’t like protein powder, then I’m sorry, this tip doesn’t apply. For me, it’s a terrific mood and nutrient source. Protein makes you feel fuller, longer. By having dry powder on hand — ready to mix — I was able to stave off cravings, which could’ve led to outsized spending. Nowadays, I carry it nearly everywhere I go.

3. Intentionally cook and plan for leftovers

In past months, I’ve opted to cook for a single sitting. I totally exploded this mindset, and made more than enough every time. The extras went into tupperware to go. Lunches were constantly pre-planned and packed the night before. It made procrastination a difficult excuse, as it was too easy to cook more than enough.

4. Living simply means cooking simply

These days I’m living simply. I don’t have a car, rarely travel, and run to and from work. I’m trying to live within my means. But even greater, I’m trying to embrace these moments. This simple living includes basic meals. I’m not cooking anything fancy or with exotic ingredients — just wholesome, healthy foods. My tummy and budget love it!

5. Wealth can actually help decrease food budgets

Buying in bulk, storing foods, and planning for the store are all privileges. As a commenter noted in January, those in poverty and/or forced to stick strictly to $200 for one month would have it more difficult. I was able to buy more than enough every time, and the average month-to-month allows me to save more money. This is yet another example of how wealth and space can provide unique advantages.

This March I’ll be continuing the $200 food budget, and I’d love for you to join me again! The adventure begins today. Who’s with me?

Filed Under: Save Money Tagged With: Budget, Food, groceries, market, Monthly, Shopping, Store

Frugal Articles of the Week

By Frugaling 2 Comments

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Reading Nook Photo

Today I wanted to feature a few frugal articles that caught my eye this week. Curl up in your favorite reading nook and enjoy. Hopefully these encourage you to live frugal lives!

It’s Impossible To Stay Retired Once You Retire Early by Sam “The Financial Samurai”
The Financial Samurai has been writing for years about personal finance. His style is unique in a world of tired financial advice. He goes beyond that 5 tips to save money on groceries. In this article, Sam reflects on his time as a retired man, and why he just can’t quit working. Brilliant story!

The Cable Diaries – Final Chapter by J. Money
When he looked at his $170 per month cable bill, J. Money decided to take action to reduce it. In this running series, J. shows readers how he has saved money. He introduces every product and necessary component to help you switch away from cable.

What A Year Without Clothes Did For Me by Mrs. Frugalwoods
Using the funny moniker, Mrs. Frugalwoods, this adventurous budgeter decided to go without clothes. Well, not quite without any clothes! She made a pact not to buy any new clothes for 2014. Read on to see how she did!

Slow Cooker White Chicken Chili by Beth at Budget Bytes
I’ve been following Beth’s recipes for years now. She runs one of the best frugal-friendly websites out there for saving money and eating well. Her recipes are broken down by total cost and serving size. This Chicken Chili looked fantastic!

Filed Under: Save Money Tagged With: articles, Budget, Cable, Clothing, Cooking, Financial, Frugal, groceries, Recipe, Retirement, Shopping

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