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Yahoo
22-05-2025
- Business
- Yahoo
This Is George Kamel's Least Favorite Travel Hack — Here's Why
Financial expert George Kamel is known for being a straight shooter when it comes to advice on how to spend and save money. He is not afraid to share all of his trade secrets, from subscriptions that are actually worth the cost to the best websites to find a deal. Read Next: Check Out: When it comes to travel, however, there is one hack that he is not too keen on. Also see five little-known ways to make summer travel more affordable. On a recent episode of 'Smart Money Happy Hour,' Kamel and Rachel Cruze discussed their guide to 'budget-friendly travel.' While the show is filled with tips and tricks to save money on destinations throughout the year, there is one hack that Kamel disagreed with. The bestselling author recommended staying away from racking up credit card debt to score travel points. Hopeful earners often end up spending thousands of dollars to secure the travel points they need. Both hosts agree that there are many other free programs that don't require breaking the bank. Explore More: With the hope of an all-paid trip to a tropical island, many Americans opt for credit cards that offer some kind of travel rewards or a redeemable point system. The problem? These programs can contain hidden terms, limited redemption opportunities or higher-than-average annual percentage rates (APRs) that cause more headaches than they are worth. The Consumer Financial Protection Bureau (CFPB) even warned about these rewards programs, noting that they have dominated marketing efforts by major credit card companies. The agency issued the warning after receiving hundreds of complaints about the programs, from unexpected conditions and devaluation to redemption problems and revocations. Due to the rising costs of issuing these rewards, redeeming them has become more complex for consumers, per the CFPB. The amount a person has to spend has also been increasing, causing rewards chasers to incur more and more debt to achieve minimal points. The CFPB had previously taken action against major players who reportedly engaged in deceptive or abusive practices in relation to these programs and continues to monitor complaints related to the issue. While racking up credit card debt may not be a smart route to travel, there are a number of other hacks to save money on travel that both Kamel and Cruze can get behind. The experts agreed that travelers should take advantage of free frequent flyer programs and loyalty rewards offered by companies like Marriott Bonvoy and Southwest. The cohosts also suggest going through flight comparison websites, such as Skyscanner, to ensure the cheapest flights. Hopeful savers can also look into Costco Travel, which offers a number of bonuses and perks for bookers, according to Kamel. Another option is to simply use 'strategic trip timing' to make vacationing more affordable. The duo recommended having flexible travel days and times to find the least expensive day to fly and to think about visiting destinations off-season to avoid price hikes. Finally, the pair suggested rebooking flights with airlines that provide credit if the rate goes down at a later date. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Smart Money Happy Hour with Rachel and George, 'Our Ultimate Guide to Budget-Friendly Travel.' Consumer Financial Protection Bureau, 'Credit Card Rewards.' This article originally appeared on This Is George Kamel's Least Favorite Travel Hack — Here's Why Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Summer Savings Strategies: 7 steps to take when paying off debt
Americans are expected to spend an average of $2,867 per household — or $226.6 billion in total — on a summer vacation this year, according to Allianz Partners. Here are some surefire ways to save money ahead of and during the summer. Personal finance expert and co-host of The Ramsey Show, George Kamel, sits down with Allie Canal for a conversation about budgeting strategies, focusing spending through intentionality, and avoiding savings pitfalls. Kamel is also the host of his own YouTube channel and the co-host of the Smart Money Happy Hour. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Americans plan to spend a record breaking $226.6 billion on vacations this summer. That's according to a new survey from Alliance partners. That is up a little more than 2% compared to last year. But if you're looking to save money, our next guest says a staycation might be the right move for you. Here with more is George Campbell, co-host of the Ramsey Show and host of the George Campbell YouTube channel, as part of our savings series brought to you by Synchrony. George, summer spending tends to creep up on all of us. What are some ways that individuals and families can stay on budget without missing out on all the fun? Well, it starts before summer. It starts with planning instead of just impulse and fomo and going, "We want to do all the things. Just put it on credit cards and buy now pay later and we'll worry about it later." So the thing is you got to sit down and make a plan for what's actually going to happen and then stick to that budget. And so the app that I use for that is called every dollar to just make a plan before the month begins, and my wife and I align on what's happening this following month. And then we stick to that. And if we can't afford it, we just don't do it that month. It's called patience and delayed gratification. And for those who tend to overspend during the summer months, and I'm mostly talking about myself here, what habits or strategies can help reign things in early, especially as we approach Memorial Day weekend, many of us, it's unofficial start of summer. Well, a lot of it comes down to the marketing. That's when the marketing really ramps up and we see so many ads on our face and as we scroll social media. And everything is so tempting because they make it seem like it's a once-in-a-lifetime deal. And so again, you've got a budget ahead of time, make a plan for it, and know that all this marketing is coming your way and go, "Nope, we said we're spending money over here, not over here. I don't care how much is going on sale. Never spend just to save." And if you do that with intentionality, you can actually enjoy the spending you do because it's not impulsive. There's no remorse or regret at the end of it, just intentionality. In terms of how you're spending your money, how do you view credit cards versus cash? Are there certain advantages when it comes to savings? Absolutely. You know, I know some of the previous guests have mentioned rewards cards. I don't have a single credit card to my name and that has allowed me to keep guard rails on my spending because I physically can't spend money I don't have when I only use a debit card, and especially when I use cash. When you hand over some crisp dollar bills at the store, you feel pain. And what's happened over time is that spending has become frictionless. That's Apple Pay's tagline, cashless made effortless. They want it to be so easy to spend to where you don't even feel it anymore. And I think we need to add some friction back in so that we stop feeling so broke. And part of that is because of the frictionless spending. So, create the guard rails, use a debit card, stick to a budget, and you'll feel so much better and less out of control. And let's talk about groceries. That's been a big budget sucker these days. What's your advice when it comes to saving a little bit there? Intentionality is what it comes down to. And this might mean meal planning ahead of time and deciding what I'm going to go into the grocery store to get. And I love the online grocery shopping now where you can add to cart and see the total before you walk in. Before you see that end cap with your favorite snack on it and impulsively grab it before you check out, just order it online and do the grocery pickup, especially if it's free and there's no added fees. That's a great way to do it. And then change your grocery store. You know, I went to an Aldi the other day, and I was shocked at how much I could get for that $100 bill that I handed over. So you got to change your grocery store, shop generic brand instead of name brand, and make some sacrifices, and avoid the end caps and snack aisles. That's where people get into trouble. I know I get into trouble in those aisles as well, George. Now, you do have a list of seven baby steps when it comes to getting out of debt, building your wealth. Can you break down some of those for us? Absolutely. Baby step one is a starter emergency fund of $1,000 because we found that four in 10 Americans have zero in savings. And what that does, it causes them to go back into debt anytime there's an ankle biter emergency. Once you have a thousand bucks, move on to baby step two, pay off all of your consumer debt using the debt snowball method. That's smallest to largest balance, ignore the interest rates, try to get some momentum and roll that payment into the next one and into the next one. Once you're debt free, we're going to go back to that emergency fund and baby step three and get a fully funded emergency fund of three to six months of expenses. This is your never go into debt again insurance plan because you become the bank now. You don't need a lender to cover that emergency. And it's a great place to be debt free with an emergency fund, amazing financial foundation. Now ready to build for the future instead of paying for the past, and baby step four, where we invest 15% of our household income into retirement accounts that are tax advantaged. That's really going to set up people for wealth. And once you have your own mask on with retirement, you can help set up your kids for college in baby step five, putting some money away into a 529 plan or an education savings account. And then focus on getting the mortgage paid off in baby step six. Once you remove one of your largest fixed expenses, you can really begin to build wealth, spend more, upgrade your life the right way, and give more. And that leads to baby step seven, which is just continue to build wealth and give and leave a legacy. And that's really a wonderful place to be. It's a luxury for most Americans to even think about that, but that's the proven plan. It's the same one I followed to go from negative net worth to millionaire in 10 years. Some small steps that can certainly go a long way, George Campbell. Thank you so much for your time. Thank you. Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Summer Savings Strategies: 7 steps to take when paying off debt
Americans are expected to spend an average of $2,867 per household — or $226.6 billion in total — on a summer vacation this year, according to Allianz Partners. Here are some surefire ways to save money ahead of and during the summer. Personal finance expert and co-host of The Ramsey Show, George Kamel, sits down with Allie Canal for a conversation about budgeting strategies, focusing spending through intentionality, and avoiding savings pitfalls. Kamel is also the host of his own YouTube channel and the co-host of the Smart Money Happy Hour. To watch more expert insights and analysis on the latest market action, check out more Wealth here.
Yahoo
16-02-2025
- Automotive
- Yahoo
This Is the Most Expensive Way To Finance a Car, According to Rachel Cruze and George Kamel
It might be challenging for car lovers to talk themselves out of buying that muscle car they've been dreaming about since 5th grade, especially if they've saved a lot of money. However, as with any major purchase, there are good and bad ways to go about it. Check Out: Read Next: 5 Subtly Genius Moves All Wealthy People Make With Their Money Personal finance experts Rachel Cruze and George Kamel are no strangers to making big purchases and decisions. In a recent video on their Smart Money Happy Hour YouTube channel, they discussed how people make purchases that expose them to trying to look more prosperous than they are. In the episode, the topic of financing a vehicle came up. Here are some of the options to consider when buying a car. In most cases, when you want a car you will make payments to own it. Leasing a car is different because it allows you to make monthly payments to drive a car for a certain amount of time or miles without ever making a purchase. Leasing a car may mean cheaper monthly payments to drive more expensive cars, but there are some downsides to taking this route. Learn More: Kamel feels terrible for anyone who leases a car. He reasons that even though you might look cool and not need to worry about insurance or pay maintenance costs, you're essentially prepaying for all that car's depreciation without owning it. You don't gain any long-term value when you continue to lease cars one after the other. You may also need to pay extra fees for damages or excess mileage when you turn the vehicle in. Cruze agreed with Kamel's assessment, stating that leasing a car is the most expensive way to finance a car. Buying a car with cash or taking out a loan will often come with higher monthly costs, meaning it won't be as easy to afford flashy luxury cars but you will be making payments toward an asset. While it still isn't the best option, Cruze admits that taking out a car loan is at least a better idea than leasing a car. Auto loans are similar to any other type of loan. You borrow money from a financial institution to purchase a vehicle and agree on terms to pay back the amount you own. You'll often start with a down payment, which cuts down on how much you'll need to borrow. Then, you'll make monthly payments with an agreed-upon percentage of interest until the loan's principal is paid back. Taking out a car loan means the car will eventually become an asset you wholly own. However, the interest that accrues over time will add thousands of dollars to the vehicle's original price. Negotiating a longer loan term will reduce your monthly payments but you will pay more overall. If you go this route, it's best to work with an expert to determine how much you can pay to repay the loan as quickly as possible. According to Kamel, paying cash is the best way to buy a new car. While he agrees this is the most painful, unattractive answer, it's also the most financially responsible. If you really want a luxury car, he advises saving up until you can buy it used instead of putting yourself in debt. Paying for a vehicle in cash means gaining an asset while maintaining your financial freedom. More From GOBankingRates 5 Subtly Genius Moves All Wealthy People Make With Their Money 4 Unusual Ways To Make Extra Money That Actually Work 3 Ways a Balance Transfer Helps You Manage Debt (And How Much it Could Save You)This article originally appeared on This Is the Most Expensive Way To Finance a Car, According to Rachel Cruze and George Kamel Sign in to access your portfolio
