Money August 2017

A Trip to Europe on the Cheap

This is a blog about earning money without putting in time in an office, a fast food joint, or on a construction site. I aim to earn money from home so that I don’t have to spend more time away from the house. I definitely believe that there is more to life than money, but that more money can make life easier and open up options that are not available without it. I believe that a personal finance blog can be a great opportunity to show people hacks that can make their lives better. While earning money in pajamas can improve life, it’s also possible to get some great experiences without spending much. Last year, I wrote a post on how to save massive amounts of money on great trips with frequent flyer miles and hotel points.

Last month, I was able to cash in a load of these points and miles to get a deeply discounted trip to Europe. I cashed in 240,000 American Airlines Aadvantage miles to get six (count ’em, six) off-season tickets to Europe. These came from a couple of American Airlines sign-up bonuses and a couple of bonuses from the old US Airways card. I had long had Paris on my bucket list, and chose to visit the French capital on my vacation. One of the coolest things about the American Airlines award tickets is the ability to purchase one-way awards. Therefore, I decided that it would be a great opportunity to visit another European city in the process. I had to make sure that the tickets were on American Airlines flights (not with a partner like British Airways) because of fuel surcharges that are pretty massive on partner flights. I checked out tickets for my available dates to see if Rome, Barcelona, or Dublin would work. I struck out on each of these, but was able to land a flight to Madrid. Four of the tickets would leave from one city and two would leave from another airport substantially to the east of where I would be flying out of.  The total cost of each of these flights was less than $90–the cost of taxes that are required even with an award flight.

Eiffel TowerObligatory picture of the Eiffel Tour, or Le Tour Eiffel as the French call it, taken from my personal phone. 

Because my flights to and from Europe had what is called in the industry an open jaw, I had to get from Madrid to Paris. I did not have enough points to get the flight for taxes. Therefore, I checked on Expedia, and I was able to land flights for less than $70 each on Iberia Airlines. I could have gotten a slightly cheaper flight on a budget carrier, but these flights nickel and dime passengers with fees for just about anything, including carry-on bags. The total cost of six tickets from the US to Madrid, Madrid to Paris, and Paris to the US was right around $1,000 total. That’s the power of points and miles.

The Royal Palace in MadridThe Royal Palace in Madrid, again, taken by me

I then had to deal with getting lodging while in Europe. I only had a night to spend in Spain before a trip to Paris. I was able to get two rooms at a Holiday Inn Express in the Madrid area for free with IHG points. I then needed five nights in Paris. I was just short of the 280,000 points that I needed to get two rooms at the Marriott Charles de Gualle Airport hotel. I wound up spending $87.50 for the points I needed to put me over the top. Two rooms, one of which was upgraded to a family room upon arrival, for five nights cost a total of $87.50. Altogether, lodging and airfare for six people was slightly more than $1,000. That’s hard to beat. Of course, there were other expenses that added up over the trip, including food, tickets to Disneyland Paris, Versailles, the Louvre, ground transportation, and a day trip to Madrid and Toledo. Overall, it was a great trip, and it cost a fraction of what it might have had I attempted to pay the rack rate. While this was not a result of earning money in pajamas, it was an instance where taking advantage of opportunities that were available got me some great memories at a great discount.

A few credit card applications, meeting some spending bonuses buying stuff that I would be buying anyway, and cashing in the points I earned were all it took to take a dream vacation to Europe. Please note that I only recommend this for people who are able to pay off their cards on a monthly basis, as interest payments can quickly take away any benefit that the points provide and lead to massive amounts of debt. Proceed with caution if you have a spending problem. Also, remember that it’s important to actually have a good credit score to qualify for the bonuses.

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Money August 2017

March 2016 Passive Dividend Income

The month of March has ended, and it’s one of my most favorite times of the month–time to update my monthly dividend income. My previous monthly record was just a whisker shy of reaching double figures (a Hamilton in US currency terms), and as the third month of the quarter seems to be the most popular for companies that pay out dividends, I was expecting to finally hit this level for the first time, about eight months after receiving my first dividend payment of a whopping $0.64 from Apple back in August. The month’s payments did not disappoint. Here they are:

Kellogg’s (K)                               $0.57

McDonald’s (MCD)                   $2.71

Royal Dutch Shell (RDS.B)      $10.34

TOTAL dividend income for March 2016:     $13.62 

Dividend income for 2016:                               $24.38

This total might not seem like much, but it’s money that I didn’t have to work for. It’s also $13.62 more than I was making in passive income just 8 months ago. Over time, this money should start to add up. My payment from Shell went toward DRIPping 0.23 shares in RDS.A. I’m not sure why it went toward the A shares as opposed to the B shares, but this additional purchase should add $0.86 toward my annualized dividend income, which is now estimated at $124.18. Dividend income is passive income, which is the best type of income. My other dividends are sitting in my Loyal3 account waiting to be deployed when I reach $10 or more so that I can diversify into another great company. This should happen next week after April payments from Coca-Cola and Wal-Mart.

During the month of March, I also added $25 purchases toward Apple and Wal-Mart stock in my Loyal3 account and 4 additional whole shares of AT & T in my TradeKing account. These purchases are additional building blocks toward financial freedom. You can open a TradeKing account here and receive a $50 bonus for signing up, funding an account, and making a minimum number of trades.  Some of my capital for stock purchases comes from my use of SwagBucks. Every time I get $25 in PayPal cash from SwagBucks, I transfer it to my bank and then one of my brokerage accounts. You can sign up for SwagBucks here. I earn money just for searching and watching videos, and it’s money I earn while simultaneously watching TV–definitely an example of maximizing time to earn money in pajamas.

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