Monthly Archives: September 2009

Saving (Lots of) Money on Phone Plans

Written by in Cell Phone, Customer Service, Negotiating, Saving
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For the last few years, I’ve monitored my family’s AT&T plan by adding text messages for my brothers and me and arguing unnecessary charges from time to time. We started with 200 text messages, but there came a point where I was exceeding that limit and needed an upgrade. $15 for 1,500 text messages seemed like a lot, so I found a code online, spent an hour finding a representative who would add the code for me, and I now have 1,500 text messages for $8.99, which is must more reasonable.

What I didn’t consider until a few months ago is that while we were on a 2,100 minute plan, we were only using about 1800 minutes a month. So while we had lots of rollover minutes, we never had a need for them. I wanted a solution. I found another code online, this one for 200 free bonus minutes. I called up, talked to several different customer service representatives, and finally one agreed to add it to my line. Nervously, I asked the woman if she could add it to some of the other lines, and she said that it would be no problem. So suddenly we had an extra 1,000 minutes for the month that we weren’t paying for. I was able to drop us down to 1,400 minutes and reduced the monthly cost from $109.99 to $89.99 (plus an employer discount). I was pretty happy about saving the family about 200 a year.

My biggest accomplishment was not this, however. With 1,400 minutes, plus an additional 1,000 a month, we were now at a 2,400 plan for the price of 1,400. We were racking up rollover minutes an alarming rate, but they were never needed. I wanted to drop us down to 700 a month (for $69.99), but was aware of the AT&T policy that the number of rollover minutes could not exceed the number of minutes paid for each month. So with just 1,700 minutes (plus 700 rollover minutes to start), we’d be dipping into our rollover minutes and after a few months, we would need to go back to the 1,400 minute package. I called AT&T and negotiated reducing our minutes to 700 under the condition that as a buffer, they would add 1,000 rollover minutes. After getting this applied, we now had 700 minutes a month, plus 1,000 free minutes a month, plus 700 rollover minutes, plus an extra 1,000 rollover minutes. So 1,700 a month plus a 1,700 buffer. Our phone usage has increased steadily an we now use about 2,000 minutes a month, so I expect our buffer to last about 5 months. At that point, we’ll be forced to increase back to the 1,400 minute plan.

While that seems like an appropriate amount, AT&T has introduced a new feature, “A-List” which allows you to select 10 out of networks numbers that anyone in the family can call at any time, without using minutes. That’s a great deal, and would reduce the number of minutes used each month, but the offer only applies to plans with 1,400 minutes of more.

So eventually we’ll be stuck between a 700 minute plan (+1,000) that won’t cover our minute usage and a 1,400 minute plan (+1,000) that would cover us and give us many hundreds of rollover minutes a month. Neither plan is ideal, and the best idea seems to be to switch between plans every few months. It’s not ideal, but likely worth the little time and effort required.

Overall, I was able to reduce our monthly costs by $40 a month ($480 a year!), even while our phone usage increased. A little research a lot of haggling can sometimes go a long way.

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Choosing The Best Credit Card

Written by in Credit
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At the end of August, I got my first credit card. I did a lot of research trying to find the most convenient card that came with the best benefits, and finally decided on the Visa Signature card from Bank of America.

Why I Chose This One
I am able to log in to Bank of America once to check all my balances. While I have accounts at both Bank of America and ING, I’m not looking to open accounts at too many banks. It creates a hassle and while it’s not difficult to check, it’s just one more thing I have to remember to do. So I decided to stick with Bank of America because of the convenience.
Better than the cash back rewards, there’s one big reason why I wanted this card specifically (I spent a few hours convincing customer service representatives to upgrade me from Platinum Plus to Signature Visa). Until March 2010, when buying tickets from Fandango using a Visa Signature card, customers receive 2 for the price of 1. This offer is valid once a month for each card. My girlfriend loves going to the movies, and knowing that the price of tickets got cut in half makes it that much more appealing.
Why This Signature Visa?
While the Chase version of the card gives slightly more cash back, I decided that since my monthly expenses that I’ll be using my credit card for amount to about about $200 a month, the extra $2 I would get in cash back a month isn’t worth the hassle of opening a new account.
I figured that since both of my accounts would be through Bank of America, it would be very easy to set up automatic payments from my checking account to my credit card. It turns out that I needed to authorize this in writing, and received the form in the mail last week. Is it better to know that it will automatically be taken care of each month? Or since I manage my expenses regularly, should I just pay my bill when it’s due, knowing that I won’t miss a payment?

Big Savings
So far, I have no complaints. I’ve used the Fandango offer for September, and being able to go to a movie for $11.75 instead of $23.50 makes a big difference. At once a month, that’s a savings of $82.25 which I would have otherwise spent. I guess my emergency savings is going to get a little boost over the next 7 months.

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My Path To Graduation

Written by in Money
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After coming back from studying abroad following my Junior year, I started to realize around September that it was time to look for a job after college. I had very little experience in my major, and with only one semester of taking a few classes within my major, I wasn’t entirely sure what I would be qualified to do. And I certainly had no reason to believe that I had any technical skills to market. Add in the fact that my extra-curricular activities were limited to “2 Time Defending co-ed B League Flag Football Champion” and I figured I’d be the last person in the world to get a job.

Still, I started to think about drafting a resume. My experience was limited to two internships, one of which I had while I studied abroad at a venture capital company that invests in technology-enabled services, and another at a popular diamond store in the D.C. area in their “Internet department.” While neither internship related too well to my major, each gave me important skills, understanding, and insight.

Job Searching
In October, I started searching for jobs using the career center website as well as the business school site, where employers would post jobs and then if a student qualified, he would get invited to an interview when they visited campus. I searched for jobs on the sites, but I wasn’t sure what I was even looking for, so while some jobs seemed interesting, there was no way that I could speak intelligently enough about my major to get any of them.

I attended the Fall career fair, and after getting to the main hall, being terrified of what was about to happen, and sweating profusely, I collected myself enough to hand out some resumes and talk to a few people at the employer booths. I left the career fair convinced that I had no skills (including social skills) and that I might as well give up on a job now, because trying would only result in failure and embarrassment.

For a few weeks, I perused the online listings, submitted my resume, but heard back from only a handful. Oh, and of these handful, they all let me know that I had not been selected for an interview. In November, I took a look at my resume again, updated it to include the skills I was learning in class, and I started to understand that I was learning a technical skills, and I could try and market that.


By January, I was confident in my skills and I started to realize that maybe some company would consider hiring me. I was finally I was being granted interviews every once in a while. I think most of this had to do with the fact that the smart, responsible kids had already been taken and now I was rising to the top of the next group. And I was fine with that.


Interviewing
 During January, I was interviewing with various companies, some of which I was genuinely interested in, and others I had no real desire to work for, but a job is a job and January 2009 was no time to be picky. I was very nervous during these interviews, but I think compared to my peers I was able to speak intelligently about my experiences and show people why I would be valuable to them. None of my interviews turned into anything, but I was developing confidence.


I figured that out of phone calls I would get, about 25% turned into an interview, and of the interviews, I assumed that I would get one out of 10. I wasn’t looking to pit one job against the other to negotiate a higher salary; I simply wanted a job. I was more nervous than anything else. Moving home after graduation was not a good option.


Finally, in February, I felt like it was all coming together. My interview skills had improved, I was finding postings that were specific and appealed to me, and I was being granted more interviews. I applied for three jobs that I thought had real potential, one in Boston, which was not where I wanted to be, and two in D.C., my first choice. I interviewed with all three companies, and thought I did great and one of them would turn into a job. I waited patiently for an email or a phone call. I received a few emails asking me for more information and to complete an online application so they could formally count me as a applicant. I thought that was a fantastic sign.


The Last Step
During the first Monday of spring break, in the middle of March, I got a phone call from the recruiter for the company in Boston. She let me know that I was not selected, and that the person who was had better internship experience. What a letdown. I was confident, and that just burst my bubble. It was all over, I’d spend my life as a barista.


The very next day, I got a call from one of the D.C. companies letting me know that I was being offered a job with them. I was ecstatic, I wasn’t going to be nagged every day by my mother for not having a job. All my not-so-hard work in college had paid off.


That Friday, I got a call from the last company, which I thought was a stretch, but the interview went well, so I was hoping for the best. They wanted to “move forward” with my application. Fantastic. Except that there was no job offer yet and I had been given a 3 week deadline to accept the other job.


I called once a week to ask what the status of my application was, and was told that management had to approve projects and as soon as that happened, there would be something more formal. Money. I was set. Just before the deadline, I got a call from my stretch-company, and the recruiter let me know that management decided not to hire anyone. Why did they string me along? Did they really have any interest in the first place? Obviously, I accepted the other job, a little disappointed that for some reason, I wasn’t good enough.


It turned out to be a blessing in disguise. My job now is perfect for me. I don’t work 60 hours a week like I’m sure I would have in consulting, I was getting paid a decent salary, and my stress level was…lower than it would have otherwise been.


Reflecting
Many people went through the same type of process, especially business majors. It was a very stressful time in my life, and the guarantee of having a job relaxed me and let me enjoy life again. My friends who majored in Marketing or Finance have had a harder time finding jobs, even though they had more to offer.


I guess everything happens for a reason, and while I was worried for months and at times extremely discouraged, my experience worked out for the best.
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Goal: Save My Money

Written by in Goals, Saving
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I’ve finally come up with a goal. It has taken me several weeks to think of something that I am motivated to do. Saving for a house or a car have not appealed to me because right now, there is no need for those things. But I’m saving for retirement, and I won’t need that for decades..what gives? Well, that seems necessary, and since it comes out pre-tax and I never see that money, I can’t say that I miss it, and I’m sure I’ll appreciate it in the future. I have been looking for something that will keep me motivated to save and continue saving every month. I know it’s easy to get excited for a short period of time, but maintaining the desire to save is something that takes a little more discipline.

The Idea
In reading the archives of Frugal Dad, I came across and idea referenced by others: Saving 50% of your take home pay every month. Right now, I spend the equivalent of less than one paycheck on monthly expenses. Since I get paid once every other week, this leaves me with more than one paycheck a month (plus an extra paycheck every six months) to set aside in savings, pay off student loans, and invest. My current rate of savings is 54% and I’d like to bump up that rate of savings up to 60%. It’s not a huge difference and I believe that it is a short-term goal. In the next 2 months I should be able to adjust my budget enough to account for the difference, and after that, I will set a new goal for my savings rate. Any major life changes bring about new one time costs and budgets are hard to maintain in times of change, but I’ll always strive to maintain a high rate of savings.

Next Up
Who knows, maybe in a few months, I’ll set a new goal: 70%!

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