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EPISODE 15 ~ SAVE MORE: PMI: Petition To Drop Private Mortgage Insurance and Save BIG

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Private mortgage insurance isn’t for you.  It protects the lender in case you stop paying your mortgage.  Lenders are required by law to stop charging you for private mortgage insurance when you have 22% equity in your home, but some have been known to conveniently forget.

To complicate things, if you reach 22% equity not through payments, but because real estate prices have gone up, and your house is now more valuable, you’re going to have to prove your case.  The key is to ask your bank what proof it requires.  You may have to gather comparable sales figures for other homes sold recently in your neighborhood or you may need to hire an appraiser to determine the new value of your home.  Whatever it is, Do it! 

Dropping PMI is worth it.  PMI varies, but it often costs about 1 percent of the original loan amount —PER YEAR.   So if your total mortgage was $500,000, you could be paying $5-thousand dollars —a year— in private mortgage insurance.  Ouch.  Of course, dropping PMI in this example saves you 5-thousand dollars a year —And that’s EVERY year— for the rest of the years you have that loan.

But, there’s a way to roll this savings into another strategy that saves you even more money!  When your bank drops the PMI premium, keep paying that amount –but instead of paying it toward PMI, put it toward paying extra toward your mortgage principal. You are used to paying this amount anyway, so it’s a great painless strategy.  Paying extra toward the principal on your loan saves you money, because soon there’s less principal to charge you interest on.  You also end up paying your loan off early.

Let’s say your PMI payment was $100 a month on a $225,000 loan.  If you prepaid that $100 a month —just a hundred dollars— as extra toward your mortgage principal each month, you would save $24-thousand dollars over the rest of the loan.  That is the power of reverse compounding and it is one of my favorite save BIG strategies.

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EPISODE 14 ~ SAVE MORE: Contests & Giveaways: Use This System To Win Everything You Might Have Otherwise Bought

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There’s an easy way how to win cash, cars, trips and more instead of paying for them.  I know, it sounds impractical, but here’s the key: volume.  If you enter a lot of sweepstakes and contests, you will win some. Carolyn Wilman, but she’s better known as “The Contest Queen”, actually has a system for entering sweepstakes that makes it easy and fun.  She’s also the author of “How to Win Cash, Cars, Trips and More.” 

Let’s get people’s attention right away.  Carolyn, please list off the 10 most impressive prizes you’ve won.
MY TOP 10 PRIZES ARE:
10) Free pizza for a year. (I taught my daughter “What’s better than pizza? FREE PIZZA!”)
9) A portable blender (Left the first one I won in the divorce. It bugged me, so I won a replacement one when the sponsor hosted the same contest the next year.)
8) The Kindle I won after I took a break from the hobby. It made me feel like I was still the Queen J
7) Theatre and concert tickets allowing me to take my daughter to her first musical and first concert. (They were The Sound of Music and Rihanna.)
6) A huge basket of Elizabeth Arden cosmetics. (I needed new make-up and this win just up’ed my beauty regime.)
5) The $2000 shopping sprees I won. Yes, that is plural. One at Roots and one at SportChek.
4) A 2-week tour of Europe. (If it’s Tuesday it must be Belgium. – what a whirlwind vacation!)
3) Going to the Winter Olympics.
2) Attending Hogwarts. (Yes, the real Hogwarts. Flew to London for the weekend to attend a party on the set.)
1) Meeting Sting.

OK, I think people are listening now.  Carolyn, you are a “sweeper” also called a “contestor.” Tell us what that is.
Americans enter sweepstakes so you are called sweepers. Canadians enter contests so we are called contestors and in the UK they enter competitions so they are called compers. It’s a fun way to describe someone who enters to win as a hobby. I didn’t learn about sweepstakes clubs until I began researching my first book. In Canada we didn’t have clubs. I was kindly invited to be a guest at a few American meetings and I knew I had to bring the experience to Canada. There are only a few here, but dozens in the United States. Plus the clubs get together annually for a massive sweepstakes convention. This year it’s on a cruise out of Miami FL, and next year in Charlotte NC. To me this is the best part of the hobby. All the friends I have made I would never have met otherwise. Some are even lifelong.

Why do companies give away lavish prizes?  I know people worry it’s too good to be true.
That is exactly why most people don’t enter. They think it’s a scam, but last year companies in the United States spent $3-4 billion dollars running legitimate promotions. Companies chose to spend that much on sweepstakes as they deem them to be a viable marketing tool. A way for them to connect with consumers. No one give away prizes out of the goodness of their hearts. If they felt they were not seeing corporate benefit from running giveaways, they would stop, but that’s not the case. It’s only grown exponentially since social media has taken hold.

What’s the difference between sweepstakes and contests?  And which do you prefer?
The difference is a sweepstakes is luck and a contest is skill. I prefer sweepstakes as they are randomly drawn. That said, I did win third place in a Superbowl Chili cook-off for a local paper. Contests are perfect for anyone with a honed skill as they can win big. If you are an avid photographer or prolific writer you could win entering your pictures or essays as those are generally judged, plus get fewer entries due to the skill set required.

Since entering lots of different contests and sweepstakes is the key, how can people find out about them?
Sweepstakes Advantage and Sweepstakes Fanatics are two popular sweepstakes aggregate websites (sites that gather legitimate giveaways in one place and sorted by entry frequency and prize type). SweepSheet and IWINCONTESTS are two popular sweepstakes newsletter aggregates. (similar to the above but in a newsletter format with an online presence) Most are ‘FREEmium’ sites. There is a free level of use, but I believe in investing in your hobby. The price of a subscription is negligible compared to the amount you will win in any given month or year. Prices range from as little as $30, up to $52. Just by becoming a free member, you will get access to hundreds of free sweepstakes right away. The reason you would want to pay for a premium membership is access to better odds giveaways, local sweeps, text sweeps, etc.

Since volume is the key, technology is really helpful.  First tell us about sweeping software.  How much does it cost and what does it do? 
There is only one program left that I use for entering sweepstakes, RoboForm. The ones I wrote about in my first book have all but virtually disappeared as technology moves forward and changed.
The benefit of using a program like RoboForm is 1) it allows you to fill out forms with one click and 2) removes the margin of error

for typos. It also helps those with typing issues such as those with arthritis. Sponsors prefer it if entrants use any tool that there disposal, because errors are frustrating for them also. The key to winning is being organized and saving the pages for daily or weekly sweepstakes allows you to go back and increase your odds of winning.

You’ve gone beyond the basic sweeping software and created your own online winning system.  What’s that all about?
When I first started entering contests and sweepstakes, I would often get confused and enter one that was already over or enter more times than was allowed.  So I created an online winning system to keep things straight.
•First you create one-time, daily, weekly and monthly folders in your browser or within RoboForm.
•Whenever you find out about a new contest, first read the rules and see if you qualify and which of the folders it belongs in.  Then file it in the proper folder with the contest end date.
•You then know when to enter or re-enter that contest based on the folder it is in.
•If you chose to enter for additional people such as family members of friends, add in their initials to the file name.

You mentioned the importance of reading the rules.  You learned that yourself in a very colorful way.  Tell us your story.
I skimmed the rules. I know. I know. I say read the rules and I don’t follow my own advice! Well, I learned my lesson the hard way! I received a call one day from a local paper that I had won Silver Grandstand passes to the Indy race. However, to win the grand prize I had to have a sumo off with the other 3 winners. When I arrived only one other contestant was there. He was bigger than me and had sumo’d before. It was 104 degrees, humid, the suit was sweaty, too big for me and in the end I was smunched! UGH!

How many hours a day do people need to spend entering contests in order to actually win?
I recommend spending 1-2 hours a day entering contests and sweepstakes.  That’s enough to win plenty, but not so much you cut into work, family time, and other obligations.  Sweeping should be a hobby and enhance the quality of your life, not reduce the quality of your life.  Also keep in mind that it will take about 90 days before you begin to win because the sweepstakes you enter today will not be drawn for a few weeks. I do know some people that spend 3 or 4 and others that spend 8+, but I believe 1-2 is the perfect balance.

Besides volume, what are some other ways for people to increase their chances of winning?
•Stagger your entries.  If multiple entries are allowed, enter at various times during the entire contest period.
•Short entry periods: Sweepstakes that are only open to accepting entries for a 2-week period, for example, will garner far fewer entries, increasing your odds.
•Entry limitations.  SImilarly, promotions that are limited by zip code, city, state or even age-range also narrow the field and increase your odds.
•Many prizes: Look for sweepstakes that offer multiple different prizes along with or instead of a grand prize.  Fewer people enter to win the secondary prizes, so once again your odds are better.
•Harder to enter: Sweepstakes that require you to mail in your entry, or require an essay, photo, video, caption, etc, draw fewer entrants.
•Prizes that are worth it.  Focus your efforts on really valuable prizes or things that you really care about.

Entering contests is a hobby, but you’ve also parlayed that knowledge into a career, right?
The reason I was able to come up with my Online Sweeping System is I used my business background to quickly figure out what I was doing wrong and how I could improve it. I took Business Management in college with a Marketing major. I worked in every aspect of sales and marketing in the IT (Information Technology) industry for 15 years before I started sweeping. Around the same time I started entering I became a stay-at- home mom, and when I was ready to go back to work I decided to shift careers. In 2004 I took my knowledge of the hobby and launched my marketing company to help sponsors and agencies run better sweepstakes. I like to say I want to work myself out of my hobby (as those parties affiliated with running a sweepstakes are ineligible to win)

And, finally, to prove, anyone can do this… that it’s not just you who’s lucky… please list off some of the prizes won by people who you have coached.
—Wendy won a house
—Delaney won a Ferrari
—Sandra and Michael won their choice of a trip to outer space or $80,000 in cash.

Carolyn Wilman is the author of “How to Win, Cash, Cars, Trips and More”. She has also written a guest blog post with even more detailed advice on contest winning.

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EPISODE 13 ~ SAVE MORE: Home Appliances: Save Money By Knowing When to Repair Or Replace Your Appliances

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Get this: Other than houses and cars, home appliances can be the biggest investments we make. Not nearly as glamorous either. First, I’ll give you the over-arching rule of thumb: If the repair will cost more than 50 percent of the price of replacing the appliance, you should get a new one. I could end it there, but that would be a pretty lame segment. Plus, I know you may be in denial that you actually have to pay to replace one of these big machines in your house. I went through it myself with my dishwasher.

So here’s the other info that can help you say sayonara to old appliances: their average life span. That’s right, the National Association of Home Builders did a study and actually figured out how long most appliances typically last before they conk out for good. Here goes:

Air Conditioners 15 years
Dishwashers 9 years (mine lasted WAY less)
Dryers 13 years
Furnaces 15-20 years
Garbage Disposals 12 years
Microwaves 9 years
Refrigerators 13 years
Stoves 13-15 years
Washers 10 years
and
Water Heaters 10-20 years

Where your appliance falls in those ranges will depend on the brand and how well you maintain it. Think of your appliances like a car. They need tune ups. The number one steps you can take for a few key appliances are to: never overload your washer, remove lint from your dryer trap AND vent, keep your dishwasher drain and filter clear, and vacuum your refrigerator coils (I need to do that —or nag my husband to!)

OK, so you can save by biting the bullet and replacing instead of repairing.

And there are ways to save on the repair itself. First of all, be sure to check your warranty before paying for repairs. My furnace went out recently and the technician told me it was going to be a $600 repair. But I had this fuzzy memory that we had somehow extended our warranty just by registering the unit with the manufacturer when we bought it. I insisted that the local company check and, sure enough, we got the repair for free.

If you do need to pay for a repair, be the hunter, not the hunted. In other words, do business with a repair company you seek out, not one that goes door-to- door offering free inspections. That’s a come-on to get in your door and find expensive faux problems.

Next, insist on a written estimate. Reason being, some states require the company to get your permission if the cost is going to go up more than 10 percent.

Finally, pay little or nothing up front. Fly-by- night appliance contractors have been known to get their money in advance and then disappear without doing the work. Established firms will be happy to get paid at the end of the job.
Know these rules of thumb and you can avoid overpaying for appliance repairs or repairing them this year only replace them next year.

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EPISODE 12 ~ SAVE MORE: Cheap Hotels: A Secret Technique For Scoring Luxury Rooms At Deep Discounts

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Let’s talk about how to save big on hotel rooms —luxury hotel rooms. Consumers’ Checkbook, which studies services, has scrutinized online
travel booking services and says it has figured out THE strategy for scoring rock bottom rates on 4 and 5 star hotel rooms. The answer?
Priceline. But NOT using it the regular way. Checkbook’s editors spent years experimenting and Executive Editor Kevin Brasler is here to reveal their “system.”

OK, I’m going to name the step and you explain why it’s important, alright.

Number 1: Go to Priceline’s “Name your own price” tool.
With Priceline’s “Name Your Own Price” option, you don’t know which hotel you’re bidding on. Instead, you enter the city where you will be traveling and the dates for which you will need a hotel room plus the neighborhood you prefer and the star level. The system then tells you whether your bid was accepted and which hotel accepted it. It’s less expensive because you don’t get a choice.

Next you click the bubbles to only look at 4 and 5-star hotels. Why is that important?
If your price is accepted by any hotel that meets the conditions you set, that’s where you’re booked. Because you don’t get to choose, Priceline bidding works best if you bid only on four- or five-star hotels—so you can be reasonably sure of ending up at a nice place.

Third, step: Study the different neighborhoods in your destination city, called “geographic zones,” and choose your favorite one that DOES have 4 and 5 star hotels available. Why?
In order for our strategy to work, your preferred zone has to contain Priceline four- or five-star hotel options. Deselect all other zones, select only your preferred zone.

Fourth, Make an opening bid of $60 for any 4 and 5 star hotels in that neighborhood. Why $60?
We found that’s about the lowest rate Priceline will accept for high end hotel rooms. Ignore the warnings that your bid is probably too low and wait to see if it’s accepted. Sometimes it is.

If your bid isn’t accepted you go to step 5 and this is the REAL beauty of your system: you raise your bid. But Priceline doesn’t usually let you try again for 24 hours. How do you get around that?
Priceline DOES let you try again if you add another geographic zone to your search. But — and this is key– you add a zone that does NOT have any 4 or 5 star hotels. Then you increase your bid by $5. Since your search is still limited to only 4 and 5 star hotels, Priceline will search your original target destination again, not the added destination!

And the final step is?
You repeat the process as long as you need to. Each time you bid, request your preferred zone and a different combinations of secondary zones that do NOT have 4 or 5 star hotels. Then add another $5. In this way, $5 at a time, you will identify the very lowest rate you can get for a room.

How many tries does it usually take?
We find that we usually have to rebid only two or three times to obtain a great price from Priceline.

Does this ALWAYS work?
Almost always, but In some scenarios, Priceline’s “Name Your Own Price” won’t generate lower rates than other sites. For events such as the Super Bowl, the NCAA Final Four, New Orleans’ Jazz Festival, and other times when hotels expect to be almost completely booked, you’re very unlikely to find a deal on Priceline. But it’s still worth a shot.

These are Priceline’s own star ratings. Do you find them reliable? You might disagree with Priceline’s hotel-rating system. For example,
Priceline gives three or four stars to Crowne Plaza properties; in our experience, that often seems a bit generous. Since you can’t exclude specific hotels from the Priceline bidding process, you might get stuck in a hotel for which a four-star rating is a stretch. If you’re truly worried about that, you could use our method and just search for 5-star properties.

Give me some examples of the savings Checkbook has been able to snag.
Boston: Hyatt Regency Boston Normal: $169 Checkbook: $99 New York Roosevelt Hotel Normal: $159 Checkbook: $88 Minneapolis Radisson Plaza Normal: $188 Checkbook: $98 Orlando Marriott World Resort Normal: $194 Checkbook: $97

Checkbook’s Priceline method is a lot to absorb, especially if you’re driving or jogging as you listen to Easy Money, so Checkbook has provided a guest blog post to walk you through its Strategy in detail. Be sure to check it out at EasyMoneyShow.com/12.

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EPISODE 11 ~ SAVE MORE: Diminished Value On Your Vehicle: Get Compensated For Car Accident Damages

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Here’s something I wish I had known about when another driver plowed into my five-month- old car: it’s called diminished value. The other driver’s insurance company paid to fix my vehicle, but just the fact that it had been in an accident diminished its value and I—and you—should be compensated for that loss.

After all, your car is no longer as sound. One former car dealer says he used to automatically offer thirty percent less for a trade-in if it had frame damage.

Many people don’t think about the new, lower value of their vehicle in the aftermath of an accident. Instead, we just worry about how long it’s going to take for the body shop to fix the car so we can get back to our lives.

If you have a newer vehicle or an expensive one, you must ask to be compensated for diminished value. The other driver’s insurance company won’t offer. It’s important to pursue a diminished value claim right away, because most states have a statute of limitations on property damage claims, often three years.

If the other driver’s company resists, consider small claims court to collect diminished value. It should be a fairly easy case to prove: What was your car worth before the crash? How much less is it worth now because it was in an accident? You can also find a bunch of law firms online that specialize in getting people paid for diminished value.

Some of those firms estimate that the average value lost when a vehicle is in an accident is 33 percent. So let’s say you owned a car that was worth just 15-thousand dollars. If you were able to win a 33% diminished value claim, you’d get a check for $5 grand. That’s real money. And, more importantly, it’s money you deserve to put toward your next car.

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