Category Archives: Business

Trump’s push for all-American cars will kill American jobs, auto suppliers say

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Employees install parts on a Mercedes-Benz GLS-Class SUV as it moves down the production line at the Mercedes-Benz U.S. International factory in Vance, Ala. (Andrew Caballero-Reynolds/Agence France-Presse)

The car you drive might come from Detroit. But the rearview mirror could be a product of China. The speaker could be Japanese. The dashboard camera? Potentially Korean.

The Trump administration is arguing that the international anatomy of our vehicles is killing American jobs. The country’s auto suppliers, however, dispute that point, stressing that curbing access to foreign materials could actually hurt factory workers.

The debate is expected to heat up this week in Ottawa, where the president’s team is meeting Canadian and Mexican leaders for a third round of trade talks. The United States appears to be preparing to demand that duty-free goods under the North American Free Trade Agreement be made with more domestic parts.

We cannot forget that the point of a free-trade agreement is to advantage those within the agreement — not to help outsiders,” Commerce Secretary Wilbur Ross wrote in a column Friday for The Washington Post. “Instead, NAFTA has provided entry into a bigger market for outside countries, and the United States is paying the price.”

As of today, NAFTA-approved products must be made with at least 60 percent North American materials. For cars, the share is 62.5 percent.

President Trump wants to raise those thresholds, though the administration has not introduced a target number. Ross and U.S. Trade Representative Robert E. Lighthizer have also said they want to increase the minimum requirements of American-made content, the commerce secretary wrote, “especially in autos and auto parts.”

Ross pointed to a Commerce department report released Friday that found that the U.S.-made content of Canadian imports fell to 15 percent in 2011 from 21 percent in 1995, the year after NAFTA went into effect.

The share of American-made parts in products imported from Mexico, meanwhile, dropped to 16 percent from 26 percent.

This shift suggests that products from other foreign markets have flooded the mix. (Automobiles make up 27 percent of total imports from Canada and Mexico.)

Hundreds of thousands of Americans go to work every day in the automobile manufacturing industry,” Ross wrote. “The declining U.S. share of content in imports from Canada and Mexico puts those jobs at risk.”

Ann Wilson, senior vice president of government affairs of the Motor and Equipment Manufacturers Association, a national trade group, disagreed.

Over the last five years, she said, jobs in American motor vehicle manufacturing have jumped 19 percent. The industry now directly employs roughly 891,000 workers.

Sourcing cheaper parts from abroad while pouring resources into high-tech design has fueled this growth, Wilson said. Applying tougher regulations could deliver unwanted consequences and endanger jobs, she said.

“If you are no longer able to use a global supply chain to find the best value, you’ll no longer able to compete against a vehicle that is made in Europe or Asia,” Wilson said.

Brett House, an economist at Scotiabank in Toronto, said tighter content requirements could increase the cost of American car production, which could push operations to Mexico or out of the continent entirely.

“Producers might decide that qualifying for duty-free access no longer makes sense,” he said.

He said the growing reliance on imported components was a function of advances in technology, including touch screens, sensors and automatic brakes.

The electronics content in North American cars has grown by an average of 12 percent each year since 2010, House said, and 40 percent of those products come from overseas.

Scott Paul, president of the Alliance for American Manufacturing, said he doesn’t think the United States should rely on other countries for such goods.

“This is a part that could have been produced in the U.S.,” he said, “and so, when you have a weaker rule of origin, it’s an open door for other countries to free-ride.”

Increasing the NAFTA-content thresholds, he said, could encourage more innovation and create more jobs on domestic soil.

Read more:

Republicans suddenly seem to like unions again
Job growth slumped in August
No, millennials aren’t killing stable employment

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What If You Just Don’t?

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I’ve caught myself getting into a nasty habit lately – spitting.

For some reason, any time I’m near water of any kind (sink, bath, shower) my body automatically wants to unload the saliva in my mouth as if I’m in a spitting competition with the world’s feistiest llama.

llama spitting competition

It’s been going on for a few years now, but yesterday for whatever reason I decided I finally wanted it to stop and had a weird thing happen the second I had the next urge:

I literally told myself – out loud – to just “don’t do it” as if that would magically do the trick. And it worked! It just came out of my mouth without thinking and I haven’t slung spit since!

Of course, 24 hours is way too early to tell if I’m cured or not (and more than likely, it’s only working because the physical act of saying the words out loud prevents me from spitting in the first place – hah), but it reminded me a lot of shopping and how it’s actually pretty easy to just stop that too and start saving if you really wanted to.

As my friend Derek Olsen likes to say (who recently stopped blogging – dang you!), it’s pretty simple figuring out how to save money: just get rid of the “how to” 🙂

how to save money funny

Silly, yes, but effective. In order to save money all you have to do is not go out of your way to spend it! A lazy person’s wet dream! In fact, “going out of your way” might even be an understatement.

Here’s a list of what’s actually involved any time you pick up something from a store:

  • first, you need to go out and earn enough money to buy the thing (factoring in 30%+ on top of the purchase price since your paycheck is after-tax)
  • then, you need to research the thing and find out where the best deal and quality is
  • then you need to drive to the place to pick up this best deal/quality thing
  • then you need to find the thing in the store
  • then you have to wait in line to purchase the thing
  • then you need to drive all the way back home to unwrap the ting
  • and then, finally, you get to enjoy the thing!

For 5 minutes…

  • then you have to maintain the thing
  • and then forget about the thing as it transforms to clutter
  • then get annoyed by the thing as it turns to emotional clutter
  • and then, eventually, sell/donate/trash/box up the thing where it’s finally gone from your life forever!

Until you pick up the next thing.

Or, you could have just not bought the thing in the first place and saved the hassle & money 🙂

A simplified breakdown, yes, but something to think about if you’re serious about stacking cash.

What if you just stopped shopping? What would change? How would you feel? What would your bank account look like?

If it’s too much to ponder for the long term, try it out for a day. For the next 24 hours don’t buy a single thing and see what happens. If you succeed, try it out for another day and keep going until it stings!

This money stuff really isn’t that complicated. Sometimes the answer is literally just doing nothing.

(TBD on the spitting though)

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GOP leaders circulating plan that could end as massive tax cut for the wealthy

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President Trump speaks about tax reform on Sept. 6 at the Andeavor Mandan Refinery in Mandan, N.D. (AP)

White House officials and Republican leaders are preparing a set of broad tax income and corporate cuts while also looking for a way to keep their plan from being a massive windfall for the wealthiest Americans, two people familiar with the plan said.

Party leaders are quietly circulating proposals to lower the corporate tax rate from 35 percent to 20 percent and lower the top individual income tax rate from 39.6 percent to 35 percent, according to the people familiar with the plan.

White House advisers are divided over whether to cut the top individual tax rate, and Republican leaders, aware the plan could be construed as a huge giveaway to the wealthy, are trying to design features to the package that would ensure that the rich don’t get too large a share of the plan’s tax relief.

Top White House negotiators and key GOP leaders have agreed on those targets, but apparently President Trump has not. On Sunday, as he was about to board Air Force One in New Jersey, Trump told reporters he hoped to see the corporate tax rate lowered to 15 percent, a level that his own negotiators had privately dismissed weeks ago.

“We’ll see what happens, but I hope it’s going to be 15 percent,” he told reporters. “But it’s going to be substantially lower so we bring jobs back to the country.”

The lack of agreement, even days before the plan is set to be unveiled more broadly, underscore the difficult Republicans face in uniting behind a tax bill.

GOP leaders, including House Speaker Paul D. Ryan (R — Wis.), have said it is impossible to cut the corporate rate to 15 percent without adding too much money to the federal debt. As it stands, the tax cut is expected to add at least $1 trillion to the debt, and potentially much more.

As part of the package of tax cuts, the White House and GOP leaders are hoping to convince their Republican colleagues to cut the rate paid by thousands of businesses that pay taxes through the individual income tax code from 39.6 percent to 25 percent, said the people, who spoke on the condition of anonymity because they were not authorized to speak about the private discussions.

GOP leaders plan to unveil specifics of their targets with their colleagues on Capitol Hill this week, and the details could change as negotiations go forward.

Republicans plan to push for collapsing the seven existing income tax rates to three new brackets, with the top bracket being 35 percent. It is unclear what income level they want to qualify for that tax bracket. Trump made additional comments on the tax brackets on the tarmac on Sunday, but it wasn’t clear exactly what he was referring to and the White House didn’t immediately clarify his intention.

“We’re going to bring the individual rate to 10 percent or 12 percent, much lower than it is right now,” he said.

Among details that have become public, the plan’s benefits would accrue largely with the wealthy, an awkward position for a president who promised his administration would be an economic boom for working-class and middle-class households.

Even the tax cut Trump is hoping to advance for companies that pay individual taxes would help thousands of upper-income business owners in a way critics have said could be gamed to lower their taxes even more. White House officials have said they would create “guard rails” to prevent against this but they have not explained how.

Many contours of the talks are similar to what Trump proposed back in April. The Tax Policy Center, a nonpartisan group that reviews tax proposals, found that roughly 50 percent of the cuts from that plan would benefit the top 1 percent of U.S. households. The Tax Policy Center found that each one of those households would get an average annual tax cut of $175,000.

External estimates, based on initial reports of the plan and not full details, found that it would cut taxes by $5.5 trillion over 10 years. Some Senate Republicans are trying tailor the tax cut so that it only reduces revenue by $1.5 trillion over 10 years.

That means the White House and congressional Republicans would have to find $4 trillion in tax breaks to eliminate, something that could prove very difficult if they insist on keeping tax rates low for the wealthy. While rate cuts are broadly popular, many tax breaks are either also popular — such as deductions for charitable giving or for interest paid on a home mortgage — or enjoy support from the powerful industries and lobbying groups.

Some details of the plan were reported Friday night by The Washington Post and others were first reported by Axios on Saturday.

The latest plan in many ways meets the tax rate levels set by House Republicans months ago, although they would have raised an additional $1 trillion by charging higher taxes on certain imports. That import tax proposal proved too controversial and has been scrapped, making it harder for Republicans to craft a tax proposal without adding a large amount to the government’s debt.

The tax cut plan has gained momentum in recent weeks but it will still prove difficult to pass such a giant tax cut into law.

The White House and Republicans have said a giant tax cut will help boost economic growth, make the U.S. more competitive, and raise wages. Republicans in Congress have fought for years to balance the budget over 10 years and eliminate the deficit, but they have pivoted away from that demand during the tax talks because many of them believe tax cuts will deliver a needed jolt to the economy.

Many Democrats, meanwhile, have said the details of Trump’s tax plan so far would skew largely toward benefiting the wealthy and add trillions of dollars to the federal debt, potentially dragging down the economy with giant interest payments that overshadow any prospects for growth.

Abby Phillips contributed to this report.

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Consumers loved ‘all-natural’ — until Trix cereal lost its neon-bright glow

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A bowl of Trix cereal made with artificial colors and flavors, left, and a bowl of a reformulated version, made with natural flavors and colorings, right. (General Mills/AP)

The latest development in the Trix cereal saga conclusively proves at least one thing: Consumers remain deeply divided on the definition, and the importance, of eating healthfully.

Cereal-maker General Mills announced this week that it would re-introduce a discontinued version of the 63-year-old cereal, complete with the neon-bright, artificial colors that it removed in a company-wide makeover less than two years ago.


[The real reason General Mills will cut fake flavors from cereals like Trix and Lucky Charms]

The change, which replaced chemical dyes with vegetable and fruit juice and turmeric extract, didn’t necessarily hurt Trix sales. In fact, the company’s technology director, Erika Smith, told an industry conference in July 2016 that the new Trix had “exceeded expectations.”

Instead, the company — which has been besieged by complaints by some customers — found that current trends toward more “natural” products are far from universal.

“We made this decision because our fans were split,” said Mike Siemienas, a General Mills spokesman. “Some really liked it, and some really wanted the old Trix back.”

That finding contradicts the now-dominant narrative about what modern consumers want from their food. According to the market research firm Nielsen, 61 percent of global consumers, and 50 percent of North Americans, are avoiding artificial colors, most of them because of health concerns.

In response, more than a dozen major packaged-food companies have, over the past three years, announced plans to root out artificial colors, flavors and preservatives in everything from banana peppers to Baby Ruths.

But in the process, many are discovering that the market for their products is actually quite fragmented, and that different groups of consumers are looking for different — even opposite — qualities in the exact same foods, said David Portalatin, a food-industry analyst at the research firm NPD.

“The days of the one-size-fits-all blockbuster brand are probably over,” Portalatin said.

As Portalatin explains it, the consumer definition of healthful has undergone a radical shift over the past decade. Where the term was once widely understood to refer to measurable qualities, such as calorie or nutrient content, consumers increasingly judge the healthfulness of their foods according to a lengthy, flexible and highly personalized list of attributes — from the lack of artificial additives to the way it was grown to the presence of GMOs, MSG or gluten.

Many of these attributes have not been shown to have any effect on a food’s nutrition. (Trix is just as sugary without artificial colors, for instance, as it is with them.)

Many of consumers’ food preferences aren’t set in stone, either, Portalatin said: Someone who avoids artificial colors in their regular diet, for instance, might expect it in their nostalgic Trix breakfast.

This has posed a real problem for packaged and processed food companies, such as General Mills, which have seen their sales slide in recent years. While the industry has sought to adapt to changing consumer health preferences, there’s some confusion as to which preferences they should adapt to — particularly when they run up against other things consumers care about, such as taste and price.

Kraft Heinz faced a backlash in 2016 when it introduced an organic version of its Capri Sun beverage. While the drink was meant to appeal to customers who value organics, it also came with more sugar and calories.

Consumers also revolted in 2014, when Coca-Cola replaced the crystalline fructose in Vitaminwater with stevia, a plant-based sweetener. Despite stevia’s “natural” and no-calorie credentials, many complained that it lacked the sweetness of sugar.

For Trix, the experience was much the same, said Siemienas, the General Mills spokesman. The company released its reformulated version of the cereal in January 2016, after testing 69 natural replacements for the bright yellow, orange, purple, red, blue and green dyes found in the original product. While the flavor and nutritional content of the new Trix was much the same, that iconic red was duller, and because the company’s scientists couldn’t find a good replacement for blue and green, it had to get rid of them.

On social media, the company faced an immediate onslaught of criticism. That prompted General Mills to rethink the reformulation.

“Clearly consumers have different food preferences,” said Siemienas. "We believe in giving consumers choices."

Portalatin, the industry analyst, believes that’s the right attitude for major food companies. He believes that brands may need to begin offering several versions of their product to accommodate various consumer niches.

To start, General Mills will soon begin shelving its newer, naturally colored cereal alongside the older, brighter “Trix Classic."

“Today’s consumers are accustomed to a high degree of personalization,” Portalatin said. “For companies, it’s a real conundrum.”

Read more:

The origins of pumpkin spice and how it became the flavor of fall

Never change, Twinkies: Why Hostess should keep making unhealthy snacks

Why our schools can’t get kids to eat fruits and vegetables

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Here’s a list of medical groups opposing the Cassidy-Graham health-care bill

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Republican senators at the Capitol on Tuesday. (J. Scott Applewhite/AP)

The Senate is having yet another go at repealing Obamacare, this time via legislation known as the Cassidy-Graham proposal. The bill was on life support Friday after Sen. John McCain signaled he would oppose the bill, lengthening the already long odds for its passage.

Among other things, the bill would remove protections for preexisting conditions, make deep cuts to Medicaid and end the Affordable Care Act’s tax credits and cost-sharing subsidies.

The net result, according to a Brookings Institution analysis released Friday? Thirty-two million more people uninsured by 2027, relative to the current baseline.

One factor in the bill’s apparent (although not yet certain) demise: Cassidy-Graham has mobilized nearly the entire American health-care community in opposition. Dozens of national advocacy groups representing patients, doctors, insurers and hospitals have issued strongly worded condemnations of the proposal.

The American Medical Association warns it violates doctors’ oath to “first do no harm.” Kaiser Permanente says that any changes to health-care law should “increase access to high-quality, affordable care and coverage for as many people as possible” and that “the Cassidy-Graham bill does not meet any of those tests.”

In the view of the American Hospital Association, “this proposal would erode key protections for patients and consumers and does nothing to stabilize the insurance market now or in the long term.” The American Heart Association, March of Dimes and 14 other patient and provider groups urged the Senate to “oppose this legislation.”

Strikingly, The Washington Post was unable to identify any medical associations that support the measure. Some antiabortion groups, such as the March for Life and National Right to Life, do support the bill, but they are not primarily medical or health-care-oriented in focus. If you know of any such groups that support the measure, please drop me a line.

We’ve gathered statements by dozens of medical groups below. For inclusion in the list, the groups have to have a medical focus, representing patients, providers, insurers or hospitals. The groups also have to have a national focus; because of the sheer number, including state-level medical groups or affiliates of national organizations would be difficult.

This list is almost certainly incomplete, given the huge universe of advocacy groups focusing their efforts on conditions that sometimes affect only small numbers of people. But it gives a sense of the breadth and depth of the medical community’s opposition to Republicans’ latest attempt to repeal Obamacare.

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How to travel cheap (with advice from pro travelers)

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Here’s a hot take: People who say that they love to travel … rarely ever do it.

Instead, they’ll pepper you with excuses as to why they haven’t traveled but still wish they could.

“I don’t have enough vacation days!”

“I’m just way too busy with work/school/binge-watching-the-entirety-of-Game-Of-Thrones.  

“I’ll finally go backpacking eventually.

However, the most common excuse that gets uttered by people who wish they traveled is this:

“Traveling is too expensive.”

I’m sure you’ve found yourself saying it. Hell, I’ve used this excuse before too — and there’s a good reason for it. 

Society tells us that traveling (especially international travel) has to be expensive — that unless you’re dropping thousands of dollars on airplane tickets, hotel rooms, tours, museum passes, and expensive travel gear, or spending hundreds of hours studying the mysterious art of travel rewards hacking, you’re going to break the bank.

In reality, you CAN save money without having to do any of those things.

Ask the travel experts

If you know one thing about IWT it’s this: We’re all about expert advice.

That’s why we decided to talk to a few professional travelers to help give you the lowdown on how to travel cheap. You’ll find out exactly how to leverage your money to start traveling without breaking the bank.

Because once you remove the barrier of money…what’s your excuse?

Matthew Kepnes (aka Nomadic Matt)

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Website: NomadicMatt.com

Started traveling: July 2006

# of countries traveled to: 80

Matt quit his cubicle job for a life of travel more than a decade ago and hasn’t looked back. He’s since launched his website, NomadicMatt.com, where he’s helped millions of readers get the most out of their travels financially. Oh, and he became the New York Times best-selling author of How to Travel the World on $50 a Day (which puts him in good company with other cool people).  

Bryce Conway

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Website: 10xTravel.com

Started traveling: 2011

Favorite travel experience: Living like royalty in Thailand

Bryce first caught the travel bug after he was able to essentially score a free spring break trip during college using the rewards on just one new credit card. When his friends kept asking him advice on how to get into travel hacking, he decided to launch his own business to teach readers how to best leverage travel rewards and points. He’s since accumulated millions of travel points that allow him to travel abroad in luxury several times a year.

Gary Leff

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Website: ViewFromTheWing.com

Started traveling: 2002

Number of travel credit cards: Lost count

He’s been called the “godfather of the [frequent flyer] hobby” — and with good reason. He started leveraging points while travel reward programs were still in their relative infancy. Gary’s knowledge and acumen in the world of maximizing rewards spans literal decades, and plenty of others have taken notice. He’s been featured on Good Morning America, The Washington Post, and even The Colbert Report.

Matthew Karsten (aka Expert Vagabond)

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Website: ExpertVagabond.com

Started traveling: 2010

First place traveled to outside of US: Guatemala City, Guatemala

For the past 7 years, Matt has hitchhiked across America, gotten a magical tattoo by monks in Thailand, and went cage diving with Great White Sharks, all the while providing readers with insights on how to get the most out of traveling on his website, ExpertVagabond.com. No, he isn’t the Most Interesting Man in the World — he’s better.

NOTE: We have not one but TWO Matt Ks who are travel pros. (Go figure!) As such, I’ll be referring to Matthew Kepnes as Nomadic Matt and Matthew Karsten as Expert Vagabond.

3 rules on how to travel cheap

They all had a lot of a whole lotta great ideas on how to best travel on a budget that easily distilled into three simple rules:

  1. Get the best travel credit card
  2. Travel at the right time
  3. Budget consciously

At the end of each rule, we’ll provide action steps you can take today to make that trip (and that Rich Life) even more attainable.

Cheap travel rule #1: Get the best travel credit card

We’ve written about travel credit cards before — but since I’m sure there is someone out there who hasn’t read it (shocking, I know), allow me to politely reiterate a lesson that goes for anyone who isn’t in any form of credit card debt.

*Ahem*

YOU SHOULD GET A TRAVEL CREDIT CARD!!!!!

Travel credit cards offer some of the best ways to earn Big Wins. By maximizing and accruing points through their associated rewards programs, you can save thousands per year on travel.

This is also the way most of these travel experts we’ve talked to do it so cheap: on points. It’s the bare minimum you should do if you want to travel cheap.

“The biggest bang for your buck when it comes to your travel is definitely rewards points and miles,” Bryce told us. “People think that if you don’t travel for work or travel all the time that you’re never going to earn enough points and miles, and that’s really not true. For the vast majority of people, you’re going to earn more points and miles on the ground through responsible credit card use than you ever will traveling for business.”

Though a good travel credit card has a number of components that make it great, when you boil it down, it all comes down to two things: points and perks.

Points

Airlines and travel credit cards give you points on certain purchases that you can exchange for things like flight tickets and hotels. However, not all points are made the same.

From Gary:

“What you really want out of your credit card earnings are points that transfer to a variety of frequent flyer programs. I’d rather have a point with Chase that can be transferred to United or to another airline or hotel programs than just earning a point with United.”

So you want points that can be exchanged to a wide variety of frequent flyer programs with different airlines. That way, you can maximize your spend when you want to exchange your points.

The airlines that you prioritize will depend on a number of factors, including:

  • Proximity to your home. Does the airline operate at an airport near you?
  • Your loyalty to them. Do you absolutely love your experience with a certain airline? Is there one you’d rather avoid completely?
  • Your destination. Does that airline operate in the place you want to travel to?

By deciding on the airlines you’d like to prioritize, you can make a better judgement about which rewards card you get.

The amount each point is worth in dollars varies from rewards program to rewards program. Luckily, our good friend Brian Kelly over at ThePointsGuy.com keeps a monthly tally of how much certain points are worth.

Perks

Each travel credit card rewards program is unique in the perks they will offer you.

Often times, those perks can be amazing.

“I’ve flown with all the bells and whistles using perks,” Bryce says. “Lying flat seats, amazing meals with a chef on board, Dom Perignon champagne before take off. That’s all what you can really understand your perks. That alone has been life changing in a travel perspective.”

That’s why it’s so important to take the time to understand all of the benefits that come with a certain card before you get it. The small amount of time you spend learning about your card can actually save you a lot of headache later on.

“Take ten minutes to understand the perks of your card,” Bryce suggests. “Many people don’t understand the perks that they have because they get the card and don’t read the fine print or read blogs like mine. That’s why people still contact me saying their flight got delayed and how much it sucked — when many times their card might reimburse them $500 to cover those issues. And they had no idea!”

And while you’re going to want to tailor your card to your goals (more on that later), there’s one travel credit card that recently came to market that has been making waves for its undeniable awesomeness: The Chase Sapphire Reserve.

The king of all travel credit cards: Chase Sapphire Reserve

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Annual fee: $450/year

Bonus: 50,000 points (after you spend $4,000 in the first 3 months)

If this card went to your high school, it’d be the prom king quarterback who still managed to get straight As and become an Eagle Scout. It’s really that good.

“This is by far the best card to go with. It’s been very widely publicized in the financial press and with good reason,” Bryce says. “It comes with a ton of perks including free travel insurance, car rental insurance, TSA PreCheck, and Global Entry.”

NOTE: TSA PreCheck allows you to breeze through the line at security, while Global Entry allows you to breeze through the line at immigration. It’s totally worth all the dirty looks you’ll get.

And if that $450 annual fee throws you off, don’t worry — the card practically pays for itself with $300 in annual travel credit as well as its perks.

“Many people get scared away though because of that $450 annual fee,” Bryce continues. “Sure, you’re paying $450, but the perks alone are worth that each year, plus the big sign-up bonus on points.”

The card also offers 50,000 bonus points after you spend $4,000 in the first three months, and you’re earning triple points on dining and travel.

Other fantastic perks:

  • Lounge access in over 900 airports. Chase gives you access to airport lounges all over the world. These are areas where you can escape the hustle and bustle of the airport terminal, grab a drink, use Wi-Fi, relax in comfy chairs, and even shower in some lounges.
  • Reimbursed Global Entry and TSA PreCheck ($100 value). If you travel frequently for work or life, this perk should have you salivating. Free Global Entry means you’ll be able to speed right through the immigration line at the airport AND get access to TSA PreCheck, allowing you to speed through the line at security.
  • Better protections if your flight is canceled. If your flight is delayed more than six hours, Chase reimburses you for up to $500 per ticket.

And while we recommend the Chase Sapphire Reserve, we encourage you to get a card that’s tailored to your goals so it’ll best suit your individual needs (Hop down to our “Set a travel goal” section for more info).

How to maximize your travel rewards

Once you get your card in the mail, there are 3 great tactics you can take in order to get the most bang for your buck.

  1. Stop using cash.

    “Use your card for everything you can,” Bryce says. “Try not to pay cash.”

    The best way for you to get as many points as possible on your travel rewards program is to spend it on everything you normally would. That means leaving the cash in your wallet (unless you’re at one of those weird bars that don’t take credit cards like it’s the dark ages).

    You can even spend it on things you wouldn’t have expected.

    “The amount of money you spend is often more than you mentally think it is,” Bryce says. “You can start paying off your utilities on your card. There’s even ways to pay off your student loans, mortgages, and rent.”

  2. Don’t go into debt.

    While this may seem painfully obvious, it’s a lot easier to be more liberal about spending when you know each dollar is going towards that awesome trip to Nairobi.  

    “When you get a new card, it’s easy to get really excited about points,” Bryce explains. “You decide maybe you do need that new flat screen TV and that new coat when you might not otherwise have purchased it.”

    Instead, don’t change your lifestyle for your travel credit card. Instead, be judicious about your purchases and make sure you pay your credit card bills.

    You can do both of those things through one of my favorite financial systems: Automating your personal finances. Keep reading to find out exactly how to get started doing that today.

  3. Track your points.

    If you decide to really get into the weeds of travel rewards hacking and get multiple travel credit cards, you’re going to want to keep track of all of your points in one place.

    Gary’s tip for the best way to do this? Use AwardsWallet. It’s an incredibly helpful online travel rewards tracking tool that’ll even notify you if there are any changes in your flight.

    “AwardsWallet lets me track most of my points in one place and it’ll flag when your points are going to expire,” Gary says. “It also helps me track when there are changes to the itinerary or if I have to change my seat. It’s really helpful.”

    For more information on how to maximize travel credit cards, be sure to check out our article on the best travel credit card of 2017.

    While your travel credit card is only one part of how to travel cheap, the most important thing you could do to get started is setting a goal.

    Set a travel goal to help you choose the best card

    Much like literally anything else you want to do in life, set a travel goal. Not only will setting a goal help you keep focused (and as a result, increase your chances of accomplishing said goal), it can also help you save money when it comes to travel.

    “The important thing to do when you begin travel hacking is to come up with a plan,” Nomadic Matt says. “Have a goal in mind. What do you want?”

    And I get it. The question of what you want to get out of your travels is a HUGE one. After all, we’re talking about a literal world you can travel here. That’s why Nomadic Matt suggests you niche down your goal with some specific questions:

    • What do you want out of your perks?
    • Do you want free flights?
    • Do you prioritize hotel points?
    • Are you loyal to one brand?
    • Is there a specific trip you have in mind?

    The answers to these questions can help you come up with goals that can help you decide on which travel credit card you want to go with.

    From Nomadic Matt:

    “If you’re a loyal flier with American Airlines, the best cards to start off with would be the Citi/AAdvantage Executive World Elite MasterCard (50,000-point sign-up bonus) and the Starwood Preferred Guest Card from American Express (25,000-point sign-up bonus, plus a 20% bonus when you transfer your SPG points to one of their partner airlines like AA). That way you get the perks the card comes with (free checked bags, special discounts, and priority boarding) and can jumpstart your point balance right away.

    Just want free hotel rooms? Sign up for the card from the hotel brand of your choice.

    Having a trip in mind and then working backwards to see what cards get you there is the best way to optimize your spending. That way you don’t get any card with a flashy bonus, you get the right card. I skip a lot of cards because they just don’t meet my travel needs.”

    ACTION STEP: Sign up for a travel credit card

    Now it’s time to actually sign up for a travel credit card that’s tailored to your goals. Doing so is simple — but it’ll take a little bit of time (one to two weeks). But if you’re patient and you do your research, you’ll end up with a card that’ll be earning travel points for you in no time.

    Step 1: Set a travel goal. Use the questions above to help you find out what exactly you want out of a travel credit card.

    Step 2: Research 3-5 travel credit cards. Based on your goals, you’re now going to try to find a good travel credit card that’ll fit your needs. Start with a simple Google query for your goal (ex. “Best travel card for hotels” “Best travel credit card for flights”) and go from there.

    Every travel credit card has a web page that’ll contain all of the minutiae related to the card’s perks and rewards program. Spend 10 – 20 minutes reading through each of the pages so you understand what each card has to offer.

    Here are a few suggestions to get you started:

    • Best for hotels: AmEx Starwood Preferred Guest Credit Card. With the sign-up bonus that gives you 25,000 points to spend on hotels, as well as 2 points for every dollar spent for Starwood properties (not to mention the fantastic transfer partners), this card is great for the accommodation conscious.
    • Best for beginners: Chase Sapphire Preferred. This one is a perfect introductory card as it has a relatively low annual fee ($95) that’s actually waived the first year. You also have plenty of great rewards as well including 50,000 bonus points if you spend $4,000 in your first three months.
    • Best overall: Chase Sapphire Reserve. Seriously, this card is just GOOD.

    Step 3: Sign up for one.

    Eventually, you’ll want to niche your choices down to one — and only one for now.

    We’re going to start slowly here because you don’t want to run up a bunch of new lines of credit and go crazy. Instead, choose the one that’s the best for you.

    Signing up is easy. Simply go to the credit card’s website, click on the “Apply Now” button (each site will have a variation of that), and start the application process.

    The application itself is relatively simple and will ask you for the following information:

    • Name
    • Address
    • Date of birth
    • Employment status
    • Yearly salary

    Once you’ve applied, the credit card company will find out your debt-to-income ratio (your risk as a client) to determine whether or not you can get a card. If you’re approved, great! You’ll receive your card in the mail in one to two weeks.

    If not, that’s okay! I have a great system that can help you improve your credit score and get out of debt.

    Cheap travel rule #2: Stay flexible about travel

    Much like comedy, travel is all about…

    .

    .

    .

    .

    .

    .

    …timing.

    Flexibility can mean the difference of hundreds, possibly even thousands, of dollars in airfare and points.

    More specifically, you should be flexible in these three areas:

    1. When you fly.
    2. Where you stay.
    3. Where you go.

    When you fly

    “Flexibility is the most important thing in finding a cheap flight,” Nomadic Matt says. “You need to be flexible in either your date or destination. If you have to go to Paris on a specific date, then you have to pay the fare. There’s no magic bullet to make the price go down.”

    He continues, “But by changing your date by a day or two, you might be able to drop the price. Same works for destinations. If there’s a cheaper flight to London instead of Stockholm, consider going to London instead.”

    It also helps to travel during times when there are drastically less people traveling. Off-peak season for uber-popular destinations like New York City or London can have a huge effect on not only airline prices but also hotels, museum entry, and tours as well.

    From Bryce:

    “One of my wife and I’s favorite thing to do each year is to go to Western Europe either over President’s Day weekend or MLK Day weekend. Those days aren’t holidays over there and everything is half the price it would be if you went during the summer because summer is the peak travel season.

    For example, we were in Paris just over a weekend and in just a couple days we were able to hit all of the highlights of what we wanted to see because you’re not waiting 2 hours in line for the Louvre, you’re not having to buy Eiffel Tower tickets weeks in advance. You can just walk into all these places!

    Also, our flights were insanely cheap.”

    Along with traveling during off-peak season, you can also leverage a variety of online tools to help you travel on a budget.

    “Using multiple flight search engine websites like Google Flights, Skyscanner, and Momondo before you choose helps narrow down the cheapest options,” says Expert Vagabond. “You can sign up for fare alerts on these sites too, and they’ll notify you by email if the prices for your destination change.”

    Where you stay

    This means you can skip the expensive Big Box hotels that are looking to squeeze you of as much money as possible.

    “But Ramit,” you might be saying. “I don’t want to stay in a hostel that’ll require me to get a tetanus shot afterwards.”

    A common misconception is that traveling cheap means you have to stay in sketchy hostels or flea-ridden hotels.  

    “When people picture hostels, they picture the dirty, smelly, cramped places of the 70s and movies that have entered our cultural consciousness,” Nomadic Matt says. “That’s not really the case. Hostels have modernized themselves to meet the demands of the market. They often have nice beds, restaurants, bars, free Wi-Fi, offer tours, and all have private rooms and showers.”

    He continues, “I’ve stayed at hostels that rival boutique hotels. I wouldn’t count them out as an option. You can find some really nice ones out there.”

    If hostels aren’t your thing, websites such as Airbnb offer a wide array of fantastic alternatives to hostels AND hotels.

    “If you’re not into hostels, then hands down the best way to save money on accommodation is via Airbnb (or similar websites),” Nomadic Matt says. “You have a huge selection and great prices. That’s the only way to go if you want something that’s between a hostel and a hotel.”

    Where you go

    While big cities like Paris, New York, and Tokyo are undeniably alluring, they’re also insanely expensive. In fact, those three cities I just mentioned consistently rank in the top ten most expensive cities in the world.

    If that is enough to turn you off from traveling, have no fear! Instead, you can choose to travel to a place with a lower cost of living. Doing this can help you save a ton of money.

    “One of the best ways to travel cheap is to go to places that have a cheaper cost of living than the place you currently live,” Bryce says. “People get caught up with costs of the $1,500 to fly to Asia. What they don’t realize is that once you get there, you can live a really similar lifestyle to what you do in the States for about $30 a day.”

    HOWEVER, this isn’t to say that in order to travel cheap you have to avoid places like Paris and Tokyo at all costs. If you want to go to a more expensive destination AND not break the bank, you’ll need to learn how to practice conscious budgeting.

    ACTION STEP: Use the right tools to book your next travel

    So if you’re flexible about when and where you travel, as well as where you stay, you’ll be able to save a lot of money.

    Use the tools below to help you book cheap flights and find good accommodations.

    Flight tools

    • Skyscanner. This is an excellent flight aggregator that allows you to receive price alerts on specific flights when the price goes down. Skyscanner also comes with a handy mobile app that’ll alert you as soon as price for flights drop.
    • Google Flight Alerts. Another great flight data aggregator by everyone’s favorite search engine (stop trying to make Bing happen, Bill Gates. It’s not going to happen). This one will send you an email notification as soon as there’s a price change.
    • Scott’s Cheap Flights. A best kept secret amongst travel budgeters, Scott’s Cheap Flights will send you insanely low deals right to your inbox.

    Accommodation tools

    • Airbnb. This site is great to find some really cool places at a relatively low cost (you can even stay in a freaking castle!).
    • HostelBookers.com. With over 35,000 hostels in over 170 countries, HostelBookers should be your first stop when trying to find a good hostel. You’ll have no trouble finding an awesome (yet budget friendly) option here.
    • HostelWorld. Another great option to find hostels. The site’s 24/7 customer support is also at your call in case you have any questions or concerns about your bookings.  

    Cheap travel rule #3: Budget consciously

    Budgeting for travel is going to come in two different forms:

    1. How you save money for travel
    2. How you spend money while traveling

    You can approach budgeting for both of these things through painless, automatic systems that do the work for you.

    Here’s how.

    How to save money before travel

    Long time readers can probably guess what the best way to save money for travel is, so let’s all just say it together:

    “Automate your finances.”

    For those who don’t know what that is, I’ll give a quick breakdown.

    Automating your finances is a system wherein your money works passively for you. It’s the ultimate cure to never knowing how much you have in your checking account and how much you can spend.

    When you receive your paycheck, your money is funneled to exactly where it needs to go — whether that be your utilities, rent, Roth IRA, 401k, or your savings account.

    How do you save for travel using this system? Simple: You start a sub-savings account exclusively for travel and automate your finances so money goes there every month.

    Most banks allow you to create a sub-savings account along with your normal savings account (you can even name them too!). Create an account for your traveling goals and start saving today.

    “You need to make travel a priority [if you want to do it cheap],” Nomadic Matt says. “Start a separate savings account. Audit your expenses. Keep track of everything you spend money on for a few weeks and find out where the low hanging fruit is.”

    “BUT RAMIT! THIS GOES AGAINST YOUR RICH LIFE PHILOSOPHY! WHO AM I TO BELIEVE???”

    Look, there’s more than one way to save money. I actually LOVE that the experts and I disagree on this topic. It goes to show that Rich Life philosophy might not work for everyone…and that’s fine. What matters more to me is that you are willing to put forth the effort and start saving money for your goals, whether it be traveling, buying a new house, or getting a new car.

    “Not everyone can save a ton of money or even has the means to travel all the time,” Nomadic Matt says. “But with enough time and dedication, the majority of us can get somewhere.“

    How to save money while traveling

    This one can be boiled down to one line: Live like a local.

    “Do you think local Costa Ricans pay for tours all the time when traveling in their own country?” the Expert Vagabond asks. “Or stay at fancy hotels? Or eat out at nice restaurants every night? No. They go to the beach and chill. They stay with friends or in cheap guesthouses. They take the bus. They visit a National Park. They eat at cheap mom & pop eateries. You, as a traveler, can do the same. All you have to do is pay for a flight to get down there!”

    And often times, there are also resources at your destination tailormade to help you get the most out of your travels while saving money.

    “Go into the local tourism office too,” Nomadic Matt suggests. “They exist to help you save money. They know everything going on in your destination and can point you to free exhibits, attractions, and discounts you won’t find in your Lonely Planet guide. When I was in the Loire in France, they sold discounted entrance to all the castles. I saved about $30 bucks by just walking in. Too many people skip them.”

    ACTION STEP: Automate your finances

    If you want to learn more about how to automate your finances, check out this 12-minute video of me explaining the exact process I use below. Setting everything up won’t take more than one or two hours out of your day, but it will save you thousands of dollars over your lifetime.

    Earning money while abroad

    Saving money isn’t the only way you can hold onto cash during your travels. There are actually a variety of ways you can earn money while abroad too.

    That’s why my team and I have worked hard to create a guide to help you navigate all the systems that’ll help you earn more money today: The Ultimate Guide to Making Money.

    In it, I’ve included my best strategies to:

    • Create multiple income streams so you always have a consistent source of revenue.
    • Start your own business and escape the 9-to-5 for good.
    • Increase your income by thousands of dollars a year through side hustles like freelancing.

    Download a FREE copy of the Ultimate Guide today by entering your name and email below — and start blowing up your net worth today.

    How to travel cheap (with advice from pro travelers) is a post from: I Will Teach You To Be Rich.

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Actually, kids are good now

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Arlington, Nov. 9 2012 — A student tries a selection of pastries from Buzz Bakery at the Clarendon First Baptist preschool.

The marshmallow test is a famous psychological experiment intended to measure children’s self control. A researcher places a tasty treat — often a marshmallow — before a child, and gives her a choice: She can eat the marshmallow now, or she can wait a set period of time and eat two marshmallows instead.

The test is a measure of a child’s ability to delay gratification, which subsequent research has shown to be linked to all sorts of positive outcomes, like better grades, good behavior and even healthy body mass index.

Researchers have been administering the test to groups of kids for over 50 years now, which leads to a natural question: Have kids’ abilities to delay gratification gotten better or worse over the years?

You might be tempted to answer “worse,” given all the alarming studies published about how electronic devices like smartphones and tablets are frying kids’ brains, crippling their ability to self-regulate and generally turning them into screen-addicted zombies.

But you’d be wrong.

John Protzko, a researcher at the University of California at Santa Barbara, wanted to find out whether kids were getting better or worse at the marshmallow test over time. So he gathered and analyzed the results of over 30 published marshmallow test trials administered between 1968 and 2017.

For each study, he plotted the average amount of time kids were able to delay eating the marshmallow. He also corrected for differences in kids’ ages when taking the test (older kids are better at delaying gratification than younger ones).

Here’s what that trend looks like.

“Kids these days are better at delaying gratification on the marshmallow test,” Protzko writes. “Each year, all else equal, corresponds to an increase in the ability to delay gratification by another six seconds.”

This was something of a surprise. Before running the analysis, Protzko had surveyed 260 experts in the field of cognitive development to see what they predicted would happen.

Over half said they believed that kids’ ability to delay gratification had gotten worse over time. Another 32 percent said there’s be no change, while only 16 percent said kids’ self-control had improved in the past 50 years.

The experts, it seems, were just as pessimistic about the abilities of today’s kids as everyone else.

It’s not clear what, exactly, could be causing kids’ performance to improve — it’s not like they teach the marshmallow test in schools. Kids are improving in other areas too: Protzko notes that IQ scores have increased at a similar rate to the marshmallow test scores, suggesting a possible link between the two.

On a whole host of other measures — substance use, sexual behavior, seat belt use, to name just a few — teenagers today are performing much better than their peers from several decades ago. Many of these measures reflect precisely the sort of gratification-delaying ability that the marshmallow test has been shown to predict.

Given all the good news about kids, Protzko wanted to know why so many experts had such a dour outlook.

Marshmallow test aside, Protzko’s just as interested in why so many experts predicted it incorrectly. “How could so many experts in cognitive development believe that ability to delay gratification would decrease?” the paper asks. He calls it the “kids these days” effect: “the specifically incorrect belief that children in the present are substantively different and necessarily worse than children a generation or two ago.”

He notes that elders have been complaining about children’s shortcomings since at least 419 B.C., when Greek playwright Aristophanes wrote “The Clouds.”

“It cannot be that society has been in decline due to failing children for over two millennia,” Protzko concludes. “Contrary to historical and present complaints, kids these days appear to be better than we were. A supposed modern culture of instant gratification has not stemmed the march of improvement.”

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