Spartan Challenge One: Go Paperless & Card-Reduced

The first Spartan Challenge
Go paperless. Well, go paperless and card-reduced to be more specific. In our quest for maximizing personal finances using mobile and a minimalistic approach, moving towards a paperless and card-reduced system is the first step. Not sure about the reasons to start the journey? Read on.

The cost of paper and cards is surprisingly high
Money - research demonstrates significant costs associated with paper. Not only are there filing and storage costs, there's also the cost of eating a return when a critical receipt goes missing. Furthermore, unused gift cards that sit around the house represent opportunity cost.

Time - searching for a lost receipt or a specific business card is a waste of time. To say nothing of trying to whip out a store loyalty card while at the checkout stand with six impatient patrons glaring at you.

Health - chemicals found on receipts and other paper can be harmful to your health. In some cases, wallets have been associated with back pain.

Environment - plastic cards and paper consume resources and in the case of plastic, far outlasts its useful life.

Risk - cards and paper are less secure than digital options. Smartphones can be locked, encrypted, or even wiped. A stolen plastic gift card is as good as cash and savvy thieves can use your spare check to clean out your bank account.

To borrow a quote from Capital One, "What's in your wallet?"
A quick look at all the items that can clutter our wallets:

• ID/driver's license
• Insurance (medical/dental/vision) cards
• Proof of auto insurance
• Credit card(s)
• Debit card(s)
• Cash
• Coupons
• Loyalty cards
• Punch cards
• Store cards
• Photos
• Gym card
• Library card
• Receipts
• Gift cards
• Public transportation card
• Business cards
• Tickets (show, movies, theater, etc.)
• Spare checks
• Others?

Smartphones pave a path to a paperless and card-reduced existence
Some cards, such as government-issued ID cards, will be with us for the foreseeable future. However, we now have the option to digitize a number of the items above, reducing cost, frustration, and risk.

Gift cards -> Gyft
My 15 year old cousin, who receives a large number of gift cards, was able to find, install, and utilize Gyft. He is now able to use his gift cards from his Apple iPhone 5. Not only does he reduce the risk of underutilized gift cards, he is also able to carry less cash.

Gym/library/receipts/loyalty cards -> Lemon Wallet
Lemon Wallet enables you to digitize your wallet by taking photos of your card and then entering basic information about it. Lemon Wallet will then create a digital version of each barcode for scanning. Be sure to carry the original card until you've verified the functionality of the digital version.

Receipts/business cards -> Evernote
Evernote is an incredibly versatile application. Simply snapping photos of receipts and business cards will enable you to search for all of the text in each document. What's easier, rifling through a stack of business cards or searching for a name? For more information, see an earlier post.

Proof of automobile insurance -> Depends on state of residence
A number of states are starting to enact legislation that allows digital versions of proof of insurance. If your state allows digital proof of insurance, try using your provider's mobile app or snap a photo of your auto insurance card.

Insurance card(s) -> TBD
You'll have to make your own call about insurance cards. Each medical/dental/vision provider has different rules-- it's best to find out the official policy.

Conclusion
The current toolset leaves a lot to be desired, but the pace of innovation and improvement is both rapid and inspiring. Starting early will put you on an accelerated path to saving time and money, while reducing risk and simplifying your personal finances.

Future posts will include tips and techniques to conquer the first Spartan Challenge: going paperless.

Other resources

• http://www.paperless2013.org/
• http://evernote.com/community/paperless_challenge.pdf
• http://lifehacker.com/5973033/how-i-turned-three-years-of-paper-into-a-highly-organized-searchable-document-database-in-two-days
• http://www.ntis.gov/services/jv_costofpaper.aspx

photo credit: SlipStreamJC via photopin cc

Mobile Check Deposit

As you may have noticed, check volume is in rapid decline. However, checks are still a valid and periodically convenient form of payment. If you receive the occasional check and are not able to deposit the check to an ATM or bank branch on a same-day basis, consider mobile check deposit.

Advantage #1 - Reduce Risk
There are many risks with checks-- payer's balance falls below check amount, lost or stolen check, and damage to check. With mobile check deposit, it's easy to deposit the check on the same day, reducing your exposure to these risks.

Advantage #2 - Collect Interest
If you have an interest-bearing bank account, it is in your advantage to deposit the funds as quickly as possible.

Advantage #3 - Save on Transportation Costs
Instead of spending the time and energy traveling to an ATM or bank branch, deposit the check from the comfort of your home or business.

Advantage #4 - Flexibility
Deposit a check at any time of the day or night. Furthermore, initiate a check deposit on weekends or holidays.

Advantage #5 - Security
Avoid becoming a target of thieves who assume individuals transacting at an ATM will have cash. Also, eliminate the risk of card skimming at an ATM.

Getting Started

Most bank applications that offer mobile check deposit make it very easy. A sample with Bank of America below.

Step 1 - Verify that your bank offers a mobile application for your phone and mobile check deposit. In some cases, the option is also known as remote deposit capture.

Step 2 - Download the mobile application from your bank.

Step 3 - Select the "Deposits" option from the main screen (below)

Step 4 - Take a photo of the front and back of your check

Step 4A - Photo of front of check

Step 5 - Enter Amount & Confirm

Step 6 - That's it!

It may take a day or two for the check to clear. Monitor your transaction details through your online or mobile account.

Next Level

Many common interactions with your bank can now occur without a bank branch or ATM. Paycheck deposits can be handled through direct deposit, cash can be obtained at grocery stores, transaction history can be viewed online or in mobile applications, and checks can be deposited using mobile check deposit. If you find yourself in a situation where bank branches and ATMs become obsolete for you, consider switching to an online bank. Great write-ups here and here.

photo credit: SimpleIllustrations via photopin cc

Product Review: Speck SmartFlex Wallet Case for iPhone 5

The Stuff In Our Lives

Increasing wealth through simplification and better utilization of existing tools is one of the main themes of this blog. It is well documented that the stuff cluttering our lives wastes both time and money. Also, here.

The Wallet

Let's start by putting our money where our mouths are. First question: do you really need that giant wallet you're carrying around? Take a hard look at the items you're using on a regular basis. How often do you use the things in your wallet? Can anything be digitized? For example, a recently-passed California law allows drives to carry proof of insurance on a smartphone.

Simplify & Reduce

If you can reduce your wallet down to three cards and one folded bill, consider replacing your wallet with the Speck SmartFlex Case or a similar product. It'll reduce the number of items you need to grab before leaving the house. It's also an exercise in simplicity. I recommend carrying the following cards: ID/drivers license, debit card, and credit card. Then digital wallets such as Lemon Wallet can be used for auto insurance, health insurance, loyalty cards, gym membership cards, and other credit cards. For receipts, see my previous posts here and here.

Safety & Security

In addition to simplifying the wallet and reducing the items required for daily carry, many smartphones offer functionality to track lost or stolen devices. If you simply misplace your smartphone/wallet case, there are many tools such as Apple's Find My iPhone app that allow you to track and find your smartphone and wallet items.

Photo credit: Speck Products

Apple Passbook and American Express Spending Meter

If you read I spent how much this month!?!?, let's consider this "I spent how much this month, 2.0." If you have an Apple iPhone with iOS 6 or higher and an American Express card, there's another option besides SMS or email for spending meters and transaction notifications. In what is often the norm for Apple products, the solution is slick and easy to use.

What you need

• Apple iPhone, iPod Touch, or iPad with iOS 6 or higher
• American Express charge or credit card
• Online access to your American Express account

How to get started

• Visit the American Express passbook site using Safari from an Apple device running iOS 6 or higher
• Complete the form on the landing page and follow the instructions on the American Express site

How to use

That's it! Every time you use the American Express card you registered, you'll receive a notification with both the transaction amount and the new balance.

You'll also see a section in the notifications pull down.

Conclusion

Not surprisingly, Apple has provided a visually-appealing platform to track both transactions and card balance. There are a number of ways to make the most of this functionality:

• Increase security with real-time monitoring of fraudulent transactions
• Monitor your balance and the effect on your budget
• Limit the American Express card for a certain category of purchases, e.g. business expenses, and track the balance of the purchases within the select category
• Others?

It's 2013. Why are we still using paper receipts? Part 2 of 2

To summarize part 1, paper-based receipts are a necessary evil-- inconvenient and archaic, but still necessary for a variety of important transactions. For anyone who has been in a situation where a receipt was necessary, only to find it inaccessible, or worse, misplaced, read on!

What you need

• Evernote
• Smartphone
• Receipts

How to get started

• If you don't already have an Evernote account, sign up here
• Install the Evernote app on your mobile device
• [Optional] Create a notebooks named "Receipts"
• [Recommended] Allow location services

Getting receipts into Evernote

• Open the Evernote app
• Select the notebook for receipts
• Select the add note button in the upper right hand corner
• Select the camera icon on the top menu bar
• Capture an image of the receipt

Using Evernote for receipt management

• Multi-channel access - access an image of any receipt via mobile, web, or desktop application
• Search - Evernote will scan all the text in the receipt and enable searching on the text. So if you purchase a plush toy from Toys 'R Us, simply search keywords such as "plush" or "toys."
• Geo-tagging - as long as location services are enabled, Evernote will automatically tag the address and city where the receipt was photographed.
• Organization - use tags to organize receipts. Sample tags include: "tax deduction," "share," "2012," "claim for HSA," etc.
• Sharing - share receipts with family and friends. This is useful when a spouse is trying to return an item you purchased or for comparison shopping.
• Consolidation - forward all online receipts to your Evernote email to store all receipts in a single repository.

Conclusion

At some point in the future, most receipts will be full functional eReceipts. In the interim, we're stuck with paper-based receipts that harm the environment, damage our health, clutter our wallets, and disappear when they're actually needed. While it requires a bit of extra effort on our side, digitizing receipts using tools like Evernote represent a step in the right direction.

Also consider

• Neat.com
• Expensify
• Piikki
• Shoeboxed
• Lemon
• Slice
• One Receipt
• JotNot
• Receipt-Bank

It's 2013. Why are we still using paper receipts? Part 1 of 2

In 2012, we saw amazing advances in technology. From the Curiosity Rover on Mars to the rise of crowdfunding. On the personal technology front, we saw the rise of social and wireless personal fitness devices and smartphone adoption surpassing the 50% mark. Yet, we're still using paper-based receipts. Granted, some retailers are starting to make progress, but the vast majority of receipts are still paper-based affairs.

If you think paper-based receipts are perfectly fine and have never had a problem with paper-based receipts, then this blog post isn't for you.

For the rest of us who have forgotten a critical receipt at a return, sent a business receipt through the wash, cluttered up wallets with receipts, or felt that paper-based receipts are a pain, read on!

Receipts are still used in a variety of transactions:

• Returns or exchanges
• Taxes (for tax deductions)
• Rebates
• Warranty claims
• Flexible Spending Account (FSA) or Health Spending Account (HSA) claims
• Coupons/discounts
• Business expenses
• Insurance claims
• Price protection
• Reconciliation

Receipts are a waste of environmental resources and potentially bad for you:

• The paper (PDF, page 4) used for receipts consumes trees, oil, and fresh water while emitting CO2 and generating trash.
• The chemical on receipts (BPA) may have adverse health effects.

Fortunately, there is a better way! Come back tomorrow for the solution.

photo credit: fooishbar via photopin cc

Offers... coupons without the work

Love saving money, but hate the work of coupons?

That's normal!

Fortunately, an increasing number of credit cards are offering easy-to-redeem coupons or offers, right in their mobile applications. It's easy to browse relevant offers, sign up, and that's it! Let me repeat that: no clipping coupons, no stuffing coupons into your wallet, and no fishing around your wallet for coupons at check out. Simply sign up for the offers that are relevant to you, use the credit card at the retailer, and receive a statement credit for the offer amount. Save money without the work.

What you need

• Mobile or online access to your bank and/or credit card
• Smartphone
• Mobile app from your bank and/or credit card (preferred, but not always required)

How to get started

• American Express example
• Step 1 - open the American Express mobile app

• Step 2 - select the offers relevant to you

• Step 3 - review and add the relevant offer to your "wallet"

• Step 4 - verify that the offer has been added to your "wallet"

• Step 5 - that's it! Go shop and save!
• Other banks and credit cards
• Download the app and look for offers. Bank of America, Capital One, and Discover are constantly updating their offers.

How to use

• There's so little work required, this section is blank
• Reminder: when you shop, you must use the same credit card that was displayed in the verification page

Conclusion

The savings of coupons without the work. Simply download the app from your bank and when you have some free time, e.g. you're standing in line, browse for offers. Who knows, you may find offers from the retailer whose line you're standing in!

I spent how much this month!?!?

A Shocking Situation

Have you ever looked at your credit card or bank statement and thought, "I spent how much this month?!?!"

Join the club.

I like surprises, not shocks. Fortunately, I was pleasantly surprised to find out that most banks and credit cards offer a spending meter. A spending meter is a notification from your bank or credit card that notifies you of your balance once you hit a pre-defined amount. You can choose to receive the message via SMS or email, and it's only sent when you hit the pre-defined amount. It's a great tool to keep track of your balance and performance against budget.

What you need

• Mobile or online access to your bank and/or credit card
• Smartphone

How to get started

• American Express
• Log into your American Express online account
• Click on “Profile & Preferences” in the top menu bar
• Click on “Spending Alerts” (under the “Account Alerts” section)
• Set the slider for “Spend Tracking” to “On”
• Set the amount to $200
• Note: you may be required to verify your email address and/or mobile phone number, depending on your selection.
• Capital One
• Log into your Capital One online account
• Hover over “Messages & Alerts” from top menu bar
• Click on “Set Alerts” from drop-down menu
• Click on the “Enable” checkbox for “Balance above $”
• Set the amount to $200
• Chase
• Log into your Chase online account
• Click on “Manage Account Alerts” from the right hand navigation
• Click on the relevant checkbox for the row labeled “My balance reaches ($ USD)” under “Daily Alerts”
• Set the amount to $200
• Click on the “Update Alerts” button
• Discover
• Log into your Discover online account
• Click on “Account Profile” in the top menu bar
• Scroll down to "Track Your Spending" under the "E-mail and Mobile Reminders" heading
• Click the “Sign Up” button to the right of "Balance Exceeds Amount"
• Under the "E-mail and Text Reminders" heading, click the + button to expand the "Track Your Spending" options
• Check to select email and/or text notifications for "Account Balance
• Exceeds a Specified Amount" and enter $500 in the box ($500 minimum for notifications) 

How to use

• That's it! Your bank or credit card will automatically send a notification to your email or mobile phone when you reach the pre-defined amount.

Conclusion

Never get caught off guard by your balance or statement. The spending meter is a nifty service offered by most bank and credit card accounts and best of all, it's free!

Don't get caught at the check out counter with your pants down

Would you know...

...if your paycheck was delayed by a week?
...if your spouse spent $300 on the shared family credit card?
...if a fraudster stole your credit card number and ran up your balance?

Have you ever walked into a store and wondered "Do I have enough in my bank account to buy what I need to buy?" or "Do I have enough credit to purchase all the items that I need?" If so, you're in the same boat as two-thirds of Americans. To avoid embarrassing situations at the cash register, you'll need an easy way to check your bank balance and/or available credit before you check out. Sure, you could download each banking app individually, but if you have more than one bank account and/or credit card, you'll have to download multiple apps, open each app individually, and enter a password for each account.

A better way
Instead, consider Mint or PageOnce. Both are powerful financial tools. One of their core functions is aggregating account data and providing you the information in real-time. In other words, just before you step foot into the store or begin shopping, you can open a single app and get a real-time view of your financial position. 

What you need

• Mobile or online access to your bank and/or credit card
• Mint or PageOnce account
• Smartphone

How to get started

• Sign up for Mint or PageOnce
• Download the Mint or PageOnce app to your smartphone
• Add relevant bank or credit card accounts to your Mint or PageOnce account

How to use

• Before you start shopping, start your Mint or PageOnce app to verify your bank balance or available credit
• Screenshot of mobile app (Mint)

• Screenshot of mobile app (PageOnce)

Conclusion

Never walk into a store without the information you need. If your spouse spent $300 on a shared credit card and didn't tell you, you'll know. If your utility charged you based on your automatic billing, you won't get caught in a situation where you have less in your bank account than you expected. You'll also be in a better position to know how much you can afford to spend.