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Archive for September, 2009

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Keep your priorities in order…

Wednesday, September 30th, 2009

In the last few years, people have gotten more and more interested in the lives of celebrities.  They want to know all about them, and this fascination with them, in my opinion, is destructive. 

Celebrities look like they lead a very glamorous life.  They have fancy clothes, nice cars and a whole host of other very expensive possessions.  They look like personal trainers and never seem to age.     That is their reality.  It is not, however, reality for the majority of us.  Some of us think we should have (or try to have) the same things/lifestyle as celebrities, but in my opinion, that is not the case.  These celebrities make hundreds of thousands, if not millions of dollars every year, and can afford fancy cars, mansions and expensive purses.  They can afford personal trainers for hours a day, five days a week.  They can afford all the expensive creams and lotions that keep you looking youthful (or the more expensive counterpart, plastic surgery).  They are not limited by an average salary, like we are.

Even though we know they are celebrities, and know they make many times more money than we do, we haven’t been able to separate in our mind that they have access to a lot more monetary funds than we do.  So we buy things.  Generally, we buy these things on credit, because as I’ve already stated, we don’t have the cash to pay for it ourselves.  This is how, one day, people wake up and find themselves thousands of dollars in debt, and on the verge of bankruptcy.

How do you avoid falling into debt?  Well, as we’ve always stated, you need a budget, a plan and the determination to stay within the limits of the budget you created.  If you just spend less than you make, you won’t go into debt (don’t forget to budget for savings, so you pay yourself later).  Do not think it’s normal to buy $10,000 purses and $200 an ounce face cream if you make $60,000 a year.  If you want a special, expensive handbag, save up and pay cash for it.  If you purchased it on a credit card, it doesn’t have the same status as the one on your favorite celeb’s arm, because they paid cash (or debit equivalent etc.), and therefore, actually earned the status that the bag is supposed to convey.  Live within your means and be happy with what you have.

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Ways to shop online and save some cash!

Monday, September 28th, 2009

While having dinner with some friends a couple of weeks ago, we were discussing money saving tricks (some of our friends are just as frugal, if not more so, than we are), and one of them shared a trick I hadn’t heard of, so today, I am sharing it with you! There are “money back websites”, where if you do a lot of online shopping, you can get rebates for purchasing products through their websites! Some examples of this are:

Ebates.com: This website is a good tool for those of you who do a lot of online shopping. The trick to Ebates.com is that you have to “shop through” their website, as in, you go to their website first, find the store where you want to make a purchase, click on the link, and shop. The site is useful because you can search for a store or a product, which means if you need a product, but don’t know where to get it, you can search for the item and shop that way. Cash back percentages vary from store to store and the site sends out the rebates to their users quarterly. Some good news is that if you shop at certain online stores, you can get the item shipped to the “bricks and mortar” location and get free shipping! Bigger purchases mean bigger rebates, so consider this site when you need to purchase big ticket items!

Mypoints.com: At Mypoints.com, you can make purchases or take surveys to earn points. They offer several ways to earn extra points. For example, in addition to making purchases and taking surveys to earn points, you can click through emails and subscribe to their elist. After accruing a certain number of points, you can exchange them for gift cards to stores and other locations, or donations to participating charities.

39dollarglasses.com: If you have the prescription for your glasses and want your glasses on the cheap, this is the place for you. Go somewhere you can try on glasses and figure out what kind of frames you like, then get on their website and find similar frames (or the exact same frames, if you can), and buy them, on the cheap. They aren’t the nicest frames (you wouldn’t expect that for the price though, would you?), but they are good for people who wear contacts and just need something occasionally. Bonus? This website is also on Ebates.com, so you can get cash back on them!

I would like to thank my friend Jodi for pointing these websites out, and tell our readers that I hope you find them useful! Happy shopping!

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Do you need to “baby-proof” your finances?

Friday, September 25th, 2009

Today’s article is titled Baby-proofing the family finances by: Yuval Rosenberg.  For me (and I suspect for many of you), it’s a very relevant topic right now.  Since Jerrill and I are trying to start a family, we are in a whole new planning phase of our lives as well, and while I think this article is possibly a little specific to the situation of the couple in the article, the topic is one that needs to be discussed.

The article centers around Chad and Stephanie Grant, from San Diego, who are both 31, have been married 7 years and are starting a family.  They make a very good living, with a nice nest egg already started, but not a very big emergency fund.  The article points out that they have a few actions to take to be ready for baby.

If you are in the same situation, trying to start a family, I have a few tips:

  • You MUST have an emergency fund of AT LEAST $1000, but preferably 3-6 months worth of expenses.
  • It’s a good idea to find out what the total cost of doctor visits and delivery will be and save that amount (or as close to it as you can) to pay cash for your baby when it’s born.  It’ll be nice not to finance your child, right?
  • Now is the time to get diversified, as the article points out.  Make sure you don’t have all of your retirement “eggs” in 1 basket.  You should diversify between small, mid and large cap funds, and international funds.
  • Insurance!  We all know that health insurance is important, but life insurance is equally important when you are starting a family.  If you die, something has to replace your income!
  • A Last Will and Testament is important for you and your spouse, but when you have a baby, it’s IMPERATIVE.  If you don’t have a local lawyer, or don’t have the cash for a lawyer, then go to USLegalForms.com and do it yourself on the cheap!
  • And, of course, stock up on diapers (or ask for gift cards to buy diapers)!

That’s it!  Check out the article, and use these tips to get you on track, if you aren’t already!  Good luck, and I look forward to your questions and comments!

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It’s officially autumn! Are you getting ready for the holidays?

Wednesday, September 23rd, 2009

So, this might come as a big shock to some of you, but December 25th is only 3 months away!  I know, it’s surprising, but Christmas (or Hanukkah or Kwanzaa) comes around the same time every year, and many of you are, as usual, caught off guard!  This, frankly, blows my mind.  Every year, as the Christmas season draws near, I hear so many people talking about how they are buying Christmas presents on credit cards, or buying lesser things than they wanted etc. because they didn”t plan and budget for the holidays.  These problems can be alleviated very easily.  Like everything else we talk about on here, it just takes a little planning!

Your first option, of course, is to save up throughout the year (or what time you have remaining before the holidays).  It’s not that hard to amass a nice little sum to spend on your loved ones if you plan and budget.  Saving only $10 a week amounts up to $520 in a year…now, while that isn’t enough to buy everyone a new car, you can certainly do something nice with that amount.  Want to spend more?  Save more!  The trick is in deciding on what you usually spend and saving that amount throughout the year!  If you didn’t save up for it, and don’t have the disposable income, then you should look into other forms of gifts, because no one needs the stress of credit card debt, and the certainly don’t need to go into debt to buy presents for other people.  And, I’ll tell you a secret…your friends and family don’t want you to go into debt to buy them a present!

If the first option won’t work for you, you’re not out of luck, because you can always give the gift of your time or experience!  Granted, it’s not as glamorous as a new T.V., but giving the gift of your time is still special, ans still shows that you care enough (maybe more) to do something nice for your friends and relatives during the holidays.  Some good options?  Well, you could offer up babysitting services, cook dinner etc. for busy working parents.  That kind of stuff not your thing?  Well, figure out what you’re good at, or what your hobby is, and offer that service to your friends and family!  Let’s say you’re a masseuse…you could offer some of your friends and family a complimentary 30 minute massage as a gift!  No one would turn that down! You just need to be creative.

I’m sure I will revisit this topic as the holiday season draws near, because honestly, it irks my nerves that so many people cannot plan for the holiday season!  Whatever your financial situation is, it boils down to this: If you have the cash saved up or on hand, by all means, spend it on loved ones as you wish, but if you don’t have the cash, give the gift of your time or don’t buy gifts at all, since the last thing anyone needs is more credit card debt!

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Why not try babysitting again?

Monday, September 21st, 2009

Today’s tip is making money by babysitting!  Sure, you haven’t done it since you were 15, and you might not want think that it screams “adult job”, but it’s a great way to make extra money as a side job!  The only problem you might have is that you will have to compete against 15 year olds who can cut their rate and don’t have any other responsibilities.  If you run into that, you will have to make the decision as to whether or not you are willing to cut rates etc., because if you do it once, you might have to do it from then on.  One point though…you should not babysit if you have not been (or do not think you are) a competent caregiver in the past.

Some tips that might make you more valuable as a babysitter:

  • It might benefit you to be CPR certified.  To find a class near you, check out this website.
  • Advertising on Craigslist or in your local newspaper might be a good way to attract clients.  Or, just put up fliers in your neighborhood.
  • Be willing to do things that your average teenager can’t/won’t do, like take care of infants or keep the child/children overnight.
  • It’s a job, just like any other.  That means you need references.  People who can attest that you are responsible, especially with children (if you know someone who can vouch for that sort of thing).
  • Check around for well-to-do families that need a nanny for vacation.  If you can go with them (unlike a teenager, who is in school, or too young, generally) you make yourself more valuable to them.  And yes, it is their responsibility to pay your way.

I know a person who babysits a lot, and has a job working with children, and all they do is complain about them.  I question why they want a job in that field, if they hate it and get so frustrated with the children.  Therefore, there is one other thing I feel compelled to say-if you don’t necessarily like children, or if , after being around children, all you can do is complain about them or what they did, you should probably steer clear of babysitting.  Not only does a parent not want a babysitter that doesn’t like children, but you probably won’t do as well as as someone who does.

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Why outlet malls part us from our money so easily…

Friday, September 18th, 2009

Today’s article is called Are outlet malls for suckers? By: MP Dunleavey.  As you might’ve guessed, I am ecstatic that this article was written, that my friend Jodi shared it with me (thank you, Jodi) and that I get to share it/my opinions with you.

This article is a good look into outlet malls, outlet or “factory” stores and whether or not their discounts are really any good.   The main source sited is Ellen Ruppel Shell and her book  Cheap: The High Cost of Discount Culture.  One of the best points she makes (there are many) is that because these stores are billed as “designer quality and value price” people swallow their marketing hook, line and sinker.  They don’t question whether or not the prices are a deal, because they see a sale sign that says, for example, “30% off”, and assume that it’s a good deal.  Big mistake. Especially since, according to Shell, some stores (this is refuted by another source) raise the prices in the store so that they can mark them down, which after raising them makes them settle around regular price…wow, real savings.

Another lessen learned from this article, is that, much to my delight, and only slightly to my surprise, stores like Coach sell different products in their outlet stores as opposed to their standard retail stores.  This means that the majority (my opinion) of people who shop at these Coach outlet stores think they’re getting the same quality designer goods as the retail store, but to a trained “fashion eye”, stand out with their outlet items.  So, for a regular designer Coach bag, the price might be good, but since it’s made from lesser materials (not always) for their outlet stores only, the price might be “full price”, and you were just parted from your cash!  Something to keep in mind the next time you buy at an outlet store where the status of their brand is important…since to a trained eye, your item’s status doesn’t measure up.

Another little tip to note:   According to a recent “state of the industry” report by Retail Value News the average discount at the outlet stores is 37%.  We can do better than that on the sale and clearance racks at most retail stores.

The moral of this very interesting story is that it doesn’t matter whether or not the items in these stores are on sale, but whether or not they are a price you are willing to pay for the label and quality.

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What to do when staying in…

Wednesday, September 16th, 2009

I am loving the idea of staying in right now.  It’s such a great way to have a leisurely day/night or be productive!   Skipping the mall, or the movies, or any other number of places that you can go to and spend your money is such a good idea, and although I know that some of you dread the thought of staying at home in the evenings or on the weekend, I’m here to tell you it’s not as bad as you think it is!

Staying in for the day/night can be a great (and cheap) way to rest and relax.  If you’re single, it will be easy to make this happen…if you’re married (with kids?) you just have to be a little more creative.  Think of what your favorite things to do at home are and make a list.  If you’re single, simply take the list and start doing whichever items feel right for the day.  Maybe it’s a bubblebath, or drinking coffee on your back porch/deck, cuddling up by a fire or laying out in the sun…whichever it is, just do it.  Don’t worry about bills or friends or appointments, just have a fun and relaxing day.  If you’re attached to someone, this requires a little more effort.   If you have kids, find them a play date or a friend or family member that will watch them for a few hours, so they get to do something fun and you get a few hours off.  Now that the kids are taken care of, you and your spouse think of things that you can do together or independently that will be relaxing to you both.   For example, a leisurely lunch, drinking coffee together or any other hobbies you might have. 

Are you one of those people who don’t like to waste time on “leisurely” activities, and prefer to stay busy?  That’s OK, because staying in is ideal for you as well!  Sure, there are a million other places you could go and lots of other things you could be doing (jogging, biking, painting etc.), but if you stay home you can save money and be productive!  Make a list of the things that need to be done around your house (anything from cleaning out the garage to dusting the blinds…it all has to get done sometime) and start tackling them, one by one.  Not only are you staying busy, but you are also saving yourself money 2 different ways:  You aren’t going out, spending money, and you aren’t having to pay anyone to do what you have chosen to do around the house! 

When we stay in, we do a combination of both.  We talk in the morning over a leisurely breakfast, about what we’ll be doing that day…the fun stuff and the not so fun stuff.  He wants to tinker with his electronics and his computer programs, I want to lay out, take a bubble bath or read a book/magazine.  We do the fun stuff, then we tackle the projects that are “on deck” to be done.  I find these days to be a breath of fresh air.  We know ahead of time that we aren’t going anywhere that day, so there’s no pressure to get stuff done in a certain time frame or to look our best (ladies) etc.  We just move at our own pace and do what we can do, and even though we haven’t been out around town, we had a good day.

Try staying in if you want to save some money, or if you just want to spend more time with each other or on your own with no distractions/other people for a few hours.  It’s my opinion that staying in only became uncool because our society tells us that we should always be out having a good time spending money.  Probably because that is what celebrities are photographed doing.  It wasn’t too long ago that staying in was normal and going out was a treat.  Try and remember that the next time you feel you need to go out and buy something or go somewhere.

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Save money and have fun with a “potluck picnic”!

Monday, September 14th, 2009

I know that we’re getting close to the end of summer, but today’s tip can be used through the early part of fall, and revisited again in the spring.  Today’s Mucho Moolah tip is to have a “potluck picnic” with your friends!

Pick a park in an easily accessible location and invite a few friends to make a dish (someone should make the days menu, so you don’t end up with 5 side dishes and no main dish) to share with everyone.  Pack some blankets, board games, outdoor games (such as baseballs/gloves and Frisbee’s), plates/napkins/utensils and some music and set a time for everyone to meet up.  This will save everyone a ton of cash, since they only have to buy the ingredients for one dish and bring games etc. that they already have in their possession as opposed to the cost of dinner out and possibly drinks or a movie after that!  My suggestion is that you set the time for mid-afternoon, so that you can enjoy a couple of hours of games/gossip before grilling (if you’ve found a park with a public grill) or serving up every one’s dish.

Like this idea, and want to use it in the winter?  That’s OK! You just have to get a little creative!  Inform all the guests that you’re having a “potluck picnic” at your  house, indoors, and that the dish they bring should be picnic appropriate food.  Set the mood by moving out some of the furniture in the main room(s) you’ll be entertaining in and spreading out blankets and pillows for your guests to get comfy on.  Have board/card games set out and ready to play (no cheating though, so keep TVs and other electrical devices off, with maybe the exception of a radio, which could be brought to a picnic).  Have a signature drink for the picnic, something summery/fruity or crisp.  The main goal is for everyone to have a good time without spending a lot, so again, keep it simple.  This way, everyone shares the cost and no one is out a lot of money!

Good luck with it!  Jerrill and I are already talking about having a winter time “potluck picnic”!  I haven’t even set a guest list and I already can’t wait!

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Credit card satisfaction hits all-time low…no surprise there!

Friday, September 11th, 2009

Today’s article is Credit card satisfaction hits new low by: Carla Fried.  It talks about the new numbers that came out regarding how consumers are feeling about the credit card companies and their service etc. 

A recent report from J.D. Power has shown that overall, customers are not showing the love to credit card companies in 2009.  As a matter of fact, it scored overall customer satisfaction at a 703 out of 1000.  Now, that doesn’t sound so bad, until you hear that it’s the lowest satisfaction rating since they started keeping track of the data in 2007.  Every year, customer satisfaction is down.  What’s worse is that their rating in the sub category of fees and rates was a 603, a D minus by their scale.   

Clearly, people have become disillusioned with credit card companies.  Not only that, but with the new credit card regulations slated to take effect next year, credit card companies will have to figure out new ways to keep profits up, which only means that costumers will likely be even more disappointed with them as they change their terms.   And that, of course, will be the initial reaction of the people who pay attention to the terms on their cards changing.  I can only imagine the mess that will follow for the people who didn’t pay attention to their changing terms.  Because, let’s be honest, most people don’t read their credit card terms, that’s one of the main ways they get into credit card trouble in the first place.

As far as the ratings go, much as I figure I would rate them similarly, I have to note here that, if you either don’t use credit cards, or if you pay them off every month, without exception, your satisfaction would not be dependent (probably) on how the credit card company services you.   This is why we hope that you start and keep an emergency fund and a budget.  With these tools in your money tool belt, you don’t need a credit card.  The budget ensures that you have money in all necessary areas of your life, and the emergency fund covers what you forgot and the “Uh-Ohs” that come up.  Think about it people…do you really want to give a poor rating for a credit card company, or do you not want what they do to matter in your life?

 

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How men and women see money… differently.

Wednesday, September 9th, 2009

I find it interesting not only in our marriage, but in the relationships of friends, families and other acquaintances how men and women handle money.  Or rather, how we handle it differently.  There are so many differences that men and women make between what’s important when spending and saving it’s amazing we actually get it right on occasion. 

In general, men and women shop differently.  Men go into a store, go straight to the item they want to buy, and buy it.  Sometimes, they haggle for a deal, sometimes they don’t.  Once they make up their mind that they want something, often, they will buy it “on the spot” .   Most women do not shop this way.   When we go to the mall, we feel the need to hit every store in the joint to find the best deal.  But make no mistake, we will find the best deal!  We will hunt, dig and search through the entire building for what we want at the price we want.   Where  do we come together on this?  The women usually find  the deal and the men go close the deal/pick it up!  There are those couples (us included) that are able to shop together.  For our frequent readers, it will not surprise you that we have a system.  We alternate between stores that he wants to check out and stores I want to check out.  This way, we both are happy with the day’s activities!   If you can’t shop with your partner, that’s o.k.  Figure out a system that works for you and your spouse and go with it!

We’re different on savings too!  We women, being the emotional creatures we are, we like…security.  We like to have some savings, an emergency fund, in the bank.  Savings for a rainy day, a sunny day or any other day that a problem comes up.  It makes us a lot more comfortable as we go about our daily lives.  Men, on the other hand, like to be a little more risky.  They feel confident in their investments, even if those are in coffee bean futures or comic books (although some comics are worth quite a bit).  They don’t feel the need to have a “safety net” in the bank, and don’t understand why it’s so important to us.  Well, I’ve got news for all the men out there… just do the emergency fund.  It will make your life happier, because it will make your wife happier!  How did we solve this one?  We have an emergency fund.  :-D

It’s our suggestion that you sit down and discuss your spending and saving habits.  Figure out what works and what doesn’t.  Communicate.  You’ve heard it a thousand times for a reason… it works!  It’s the backbone of our relationship, and you should make it a part of yours.  No couple can truly be happy with their financial situation if they don’t agree on how they do their finances.  Talk about yours now, so that money problems don’t become a part of your future!

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