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You Can Save a Ton of Money With Financial Compartmentalization

You Can Save a Ton of Money With Financial Compartmentalization

Using Only One Account Doesn’t Save

Many people were fortunate enough to take a vacation this summer, and some of them probably even journeyed to the islands: now it’s time to take your personal finances there using a method known as the Island Approach. But unlike a real vacation, this trip to the islands can actually save you a ton of money!

You see, the Island Approach is a compartmentalization-based personal finance strategy that entails using individual accounts for specified purposes in order to:

  1. accrue the best possible collection of terms for each type of transaction you’ll make, and
  2. garner a better perspective on your spending and payment habits.

No single financial account beats the rest of the market in every single category, after all. For example, a certain credit card may offer the most lucrative rewards, but won’t provide the longest 0% introductory period. Likewise, a particular checking account may waive all ATM fees, but isn’t likely to have the highest interest rates.

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What’s more, if you use a single credit card for carrying revolving debt and making ongoing purchases, or use a lone checking account for savings and everyday cash management, it can be difficult to determine what’s what and ultimately track your progress.

The Island Approach can solve all of that. It can also apply to any one segment of your personal finances, or to the full breadth – from credit cards and everyday cash management tools to investments and loans.

For simplicity’s sake, we’ll limit the following example of how the Island Approach could work in a practical sense just to credit cards.

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The Island Approach in Practice

Let’s say that you make the majority of your everyday purchases with plastic and currently have $6,600 in credit card debt (the national household average).

If you prefer the ease of using a single credit card, you’ll be forced to choose between:

  1. the most lucrative rewards your credit standing will allow you to get
  2. the most attractive financing deal, or
  3. average terms across the board.

You may also find it difficult to budget since your ongoing expenses are jumbled up with your revolving debt, which generally leads to higher interest payments. Interest is assessed on the average daily balance held on accounts with a revolving balance. When you use the same card to both revolve debt and make new purchases, your average daily balance will equal the sum of your debt and the new purchases.

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Interest will apply only to your revolving balance when you isolate debt and ongoing expenses. You’ll also give yourself built-in protection against overspending. We should all be able to pay off gas, groceries and other recurring expenses each and every month, so the presence of finance charges on the card designated for everyday spending will be a clear signal to cut back.

Then there are the improved terms. Rather than being stuck with one average card, you’ll be able to strategically take advantage of different market-best credit card offers. For instance, you could get:

  • The Slate Card from Chase (to lower the cost of existing debt): This balance transfer credit card offers 0% on transferred debt for the first 15 months and doesn’t charge either a balance transfer fee or an annual fee.  Assuming that you allocate $200 to paying down your balance each month, the Slate Card will save you nearly $1,800 in fees and finance charges while helping you become debt free nine months faster, compared to a regular card with a 17% interest rate.
  • The Blue Cash Preferred card from American Express (to maximize your everyday rewards earning): This card offers 6% cash back at supermarkets, 3% at gas stations and department stores, and 1% on everything else, in addition to a $150 initial rewards bonus for spending $1,000 in the first three months. Such rewards are not only worth the $75 annual fee for most consumers, but they’ll also enable you to effectively subsidize some of your most prominent recurring expenses.

You may even decide to get a bit fancy with the Island Approach and supplement your base cards with attractive one-time offers as they pop up. Issuers have made it a practice in the post-recession environment to offer lucrative sign-up rewards bonuses and financing deals. With the current offers in mind, you could get $400 in free money just by opening a card like the Chase Sapphire Preferred or the Barclaycard Arrival and meeting initial spending requirements.

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Bottom Line

The Island Approach is a personal finance strategy that entails using individual accounts to meet specific needs. It enables you to maximize your product terms, save money on interest, and keep better track of spending and payment habits.

However, there’s a reason it’s called ‘personal’ finance, and if you don’t think that keeping tabs on a number of different accounts will work for you, by all means opt for a more comfortable strategy. Just make sure to adhere to a budget and pay off debts as quickly as possible and you’ll be fine.

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The Simplest Ways To Save Money In Your Next Trip You Can Save a Ton of Money With Financial Compartmentalization

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Last Updated on July 4, 2019

25 Killer Sites For Free Online Education

25 Killer Sites For Free Online Education

Whether you’re five or ninety five, the internet has a lot to offer. Particularly when the topic is education, the resources on the internet are endless.

Best of all, many high quality sites are completely free. From history to coding, excellent free online education awaits on the following 25 sites.

1. Coursera

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    Coursera is a website that partners with universities and organizations around the world. This brings a wide variety of topics and perspectives to one searchable database.

    Coursera is a powerful tool for free online education, and includes courses from many top universities, museums and trusts. This gives the site an extremely wide range of in-depth courses.

    Coursera is extremely useful if you’re looking to study many different topics, or want courses from different schools and groups.

    2. Khan Academy

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      Partnering with many post secondary schools, Khan Academy offers a useable, well organized interface. Also curating many courses from around the web, Khan Academy offers impressive depth on many different subjects.

      Among the more well known educational sites, Khan Academy is also incredibly useable, which may make it easier to keep learning goals.

      3. Open Culture Online Courses

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        If you are struggling to find exactly the material you are looking for, try Open Culture’s listing of free online education courses. The page highlights 1000 lectures, videos and podcasts from universities around the world. The site features a lot of material found only on universities private sites, all in easy to browse categories. This means you can find hundreds of university courses, without having to visit and search each university’s own site.

        Open Culture’s list features courses from England, Australia, Wales and many state universities around the United States. A very helpful resource for finding many courses in one area of study.

        4. Udemy 

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          Udemy’s free courses are similar in concept to Coursera’s but additionally allows users to build custom courses from lessons.

          Working with many top professors and schools, the site mixes the customizable platform of other sites with a heavy emphasis on top quality content. This is another site however, that mixes free and paid content.

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          5. Academic Earth

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            Another site with courses from many different schools is Academic Earth. Much like the three sites above, Academic Earth brings together top notch courses from many different sources, and focuses on offering a wide variety of subjects.

            Academic Earth lists courses by subject and school, so it might be easier to find what you’re looking for.

            6. edX

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              Another great option for free online education is edX. Also bringing together courses from many different schools, the site has impressive, quality information for everyone. edX covers a great range of topics.

              7. Alison

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                Unlike the previous sites on this lists, Alison is a free education site offering certification in some areas. Alison offers courses mainly in business, technology, and health, but also includes language learning courses.

                It’s a great option if users need certification for their learning as Alison also offers school curriculum courses.

                8. iTunesU Free Courses

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                  A very convenient place for free online education is iTunesU, because it integrates seamlessly with your iPod, or any app-ready Apple mobile device. On iPad, iPhone, or iPod touch, users download the iTunesU app.

                  Desktop users can access  iTunesU on the upper right hand corner of the iTunes Store. iTunesU is also convenient because the store is categorized much like iTunes.

                  Users can search learning materials in many different ways, including genre and topic. However, courses are often a mix of free podcasts or videos, and paid content.

                  ITunesU does include courses on a pretty wide scope of topics, but does not integrate with Android, Google or Windows mobile devices.

                  9. Stanford Online

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                    Your hub for all the online offerings from Stanford University, Stanford Online offers self-paced and session based courses. While Coursera features some courses from Stanford, many classes are only available via other hosts. Some courses require iTunes, but most are completed in your web browser.

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                    Stanford Online is a great site for high quality courses, though the topics are somewhat limited compared to sites partnered with more than one school.

                    10. Harvard Extension

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                      Like Stanford Online, Harvard Extension features free online education courses from Harvard only. This is another excellent source for top notch course material, though the course variety is less rich than multi-school sites.

                      Additionally, Harvard Extension allows you to search for courses by professional certificate. This makes it much easier if your online education goal includes certification.

                      11. Open Yale Courses

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                        Open Yale Courses echoes Harvard Extension and Stanford Online, in that it offers only courses from Yale. While the site is similarly limited to topics taught at the school, Open Yale Courses offers a lot of videos of actual campus lectures. The availability of videos makes the site a great option if you’re looking for quality courses, but learn better by watching than by reading.

                        12. UC Berkeley Class Central

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                          Much like the other schools on this list, UC Berkeley has a variety of free online education options. The school has slightly fewer courses than the schools above, but includes some supplementary lectures, webcasts and RSS Feeds, making it easy to keep up with the topics you choose.

                          13. MIT OpenCourseWare

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                            Similarly, MIT offers a variety of free courses. The school has a comparable number of courses to the schools above, plus includes very in-depth course materials on the subjects available. MIT also offers free RSS feeds, a convenient way to continue learning.

                            14. Carnegie Mellon Open Learning Initiative

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                              Carnegie Mellon’s free online education site is comparable with the other school’s on this list, however, Open Learning Initiative also covers a smaller range of topics. But for the topics that are covered impressive, in-depth material is available.

                              15. Codecademy

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                                Codecademy is a website dedicated specifically to teaching coding. Where other coding sites follow an example/practice session workflow, Codecademy includes a live practice window. This means you can practice coding while still viewing the lesson material.

                                The courses at Codecademy are well written and easy to follow and the website is organized very nicely. Codecademy features a centralized dashboard where you can monitor your progress, plus organizes lessons into complete modules. This lets you learn an entire language without needing to pick the next course manually.

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                                16. Code

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                                  Code is another website focused on coding and app writing. A site with high quality courses, Code also features learning options for kids.

                                  In addition to kid friendly courses, Code offers free online education classes on a wide variety of technology topics. These classes include app writing, robotics and Javascript.

                                  Most of the courses are also geared in a such a way that they can be useful in a classroom setting. This makes Code a great resource for harder to find coding topics, as well as various learning settings.

                                  17. University of London Podcasts

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                                    The podcast page on the University of London website is another great source for free education. While the courses are limited to podcasts, the site features podcasts from it’s own campus, as well as eleven universities in and around London. This gives learners a wide base of topics and lectures, but still ensures in-depth material.

                                    18. University of Oxford Podcasts

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                                      Similar to the University of London, the University of Oxford features many different podcasts. Most are public lecture series or lectures from visiting professors, with several different recordings available.

                                      The advantage to this particular site is that podcasts are organized into series, making it easy to subscribe to multiple lectures on one topic. Another good site for thoroughly in-depth lectures.

                                      19. BBC Podcasts

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                                        For the more casual learner, the BBC offers a wide variety of podcasts on many different topics. Most podcasts are updated weekly, and focus on everything from finance, to sports, to current events.

                                        Through the World Service line of podcasts, there are also many in different languages. The focus of these podcasts are less in-depth and theory based, which may be more accessible to the average person.

                                        20. TED-Ed

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                                          Another great destination for more general learning is TED-Ed. From the same people that brought you the all encompassing, motivational web series, comes a site chocked full of educational videos. Most include impressive animation, and all are ten minutes long or less.

                                          Not only is TED-Ed an excellent site for the curious, it also includes supplemental materials and quizzes on the videos. This makes the site extremely useful in formal education settings, as well as in entertaining ways to brush up on new discoveries and topics.

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                                          21. LessonPaths

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                                            LessonPaths is another great tool for those looking for a more usable and convenient way to access learning material. On this site, users create link playlists of their favorite learning materials from other sites. Users then rank these collections, making it easy to find many different high quality, accessible sources on a given topic.

                                            22. Memrise

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                                              Another impressive free online education site offering ease of use and convenience is Memrise. Available both on desktop and as an app, Memrise is a particularly powerful tool if you are studying a language. The site encompasses many other topics as well, though some of the course material is user generated content.

                                              Part of what makes Memrise special is their integration of games into the learning materials, mixing learning with entertainment.

                                              23. National Geographic Kids

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                                                The kids site for National Geographic is another site that makes free online education applicable for younger users. For those looking for kid friendly education, a large variety of games, puzzles, videos and photos keeps kids interested on this site.

                                                National Geographic Kids doesn’t organize learning into courses, making materials available by topic and medium instead. This makes National Geographic Kids a good option for those looking for a more casual learning environment.

                                                24. Fun Brain

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                                                  Fun Brain is another good option for kids who want to learn online, but focuses on games and fun puzzles. Particularly focused on math and reading, Fun Brain’s game based approach can be valuable if the child in question struggles to pay attention.

                                                  Fun Brain offers rewards and challenges as well, and is another site aimed at a casual learning experience for kids K-8.

                                                  25. Whyville

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                                                    Similar to the sites for kids free online education is Whyville a destination for preteen online learning. The site includes a variety of social features, with a focus on learning materials geared for young teens.

                                                    Whyville also mixes in educational games, to make the site a well rounded option for kids too old for simple games, but too young for heavy reading based material.

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                                                    Featured photo credit: Dai KE via unsplash.com

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