alicegop/Flickr
UPDATE: I left two more messages for the traffic ticket resolution officer and never heard back so I put a $25 check in the mail. The next day he called me. C’est la vie!
Two weeks ago I got a $25 parking ticket for leaving a friend’s car overnight on a street when there was street sweeping. I’ve spent at least two hours fighting it and am ready to give up.
I had parked around the corner from my house on a side street because construction prohibited leaving the car directly in front or to the side of my house, my first two choices. I didn’t notice (more…)
Bolobilly/Flickr
A friend of mine commented on Facebook that she “will not be shopping at Target any more,” bringing up a fascinating question about how much we know about the politics of the retailers we patronize.
Background: media outlets reported that Target donated to the Yes on Prop 8 campaign in California, which supports a ban on marriage rights for gays. However, a progressive political site debunked the claim, saying that Target employee donations to Prop 8 had mistakenly been reported as corporate donations. Target is still under fire for contributions to an anti-gay gubernatorial candidate in Minnesota. The company released a statement saying that it favors the candidate’s business platform, not his social positions. The debate is raging outside my circle of friends; there is even a Facebook group boycotting Target.
Regardless of how you feel about Prop 8 and the right of gays to marry, my friend’s decision to boycott Target made me think about how little I know about the politics of the retailers I shop at. An About.com story shares this list of prominent brands and their political affiliations. (more…)
By Bobbi Burger Brunoehler of Bobbisbargains.
HikingArtist.com/Flickr
I have just 25 minutes to speak about budgets at an upcoming conference – such a short period of time. As I started to prepare my talk I realized staying on budget and out of debt has only five key points.
1. You have to want it. No seminar, book or popular online money management software will help you to stay on budget unless you really want to. It’s like quitting smoking cigarettes. You must make a firm and true decision to DO IT!
2. Spend less than you make. Oh so easy to say but that is the bottom line. Somehow you have to increase your income and/or decrease your outgo until you are spending less than you make. It’s simple math.
3. You have to spend time looking at actual numbers. Our finances have become so automated that you can get paid, buy your food, pay your bills and transfer money to your significant other’s account without ever having to actually confront your economic condition. I spend at least one day a month going over my finances with a fine tooth comb. I examine all the receipts and evaluate where we are spending money. I balance every month’s statement and earmark money for upcoming expenses (like my daughter’s birthday or a new mattress.) I do most of my accounting with pen and paper. Bargain Babe has a 15-minute budget that is fairly simple.
4. Spending should not be an emotional decision. I don’t buy something (like a $750 leather jacket) because I “just HAVE to have it” or I “can’t live without it.” If I want it so badly, I should plan for it. Most often, all the items you buy on impulse won’t stand the test of time. Of course, I have a slush fund built into my budget that allows me the luxury of buying a little something (like a pretty hair clip) for myself when I see it – IF I really want it.
5. Ensure that the entire family understands and agrees with the above four items. It is vital that everyone is on the same page when it comes to budgeting. If necessary, have family meetings to go over these points until you have agreement. It just won’t work if everyone isn’t on board.
I’d love to hear any of your budgeting tips.
Lab2112/flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
While researching a post on saving money at the movies, I asked Bargain Babe’s Facebook friends for tips and some suggested sneaking in! The idea bothered me for days and got me thinking about five scenarios where I have to chose between taking the ethical high road and saving money.
Is it ethical to sneak into movies? What about buying counterfeit DVDs?
I’ve never snuck into a movie and what bothers me about this is the same thing as buying a counterfeit DVD, made when someone records the movie with a hand-held video camera from inside the movie theater. The person burns the recording onto DVDs, slaps on a cover sheet, and sells it on the street for a big profit. The problem is that the little guy gets cheated. Sure, the movie executives and stars make the big bucks, but the no-names are more likely to lose their jobs when movie studios don’t make the expected money. By doing both these things, theaters have to raise their cost and the buyer goes from being frugal to being cheap.
You’re walking down Canal Street in New York City or the Fashion District in downtown Los Angeles and you spot counterfeit brand name items at bargain prices. Ethical to buy?
No. The fake bags, shoes, and shades emblazoned with a designer’s initials or logo may be far less expensive, but you are still paying for the brand name not the item. I have no problem with a bag that looks similar to a brand name bag as long as you don’t try to pass it off as the name brand with fake logos and tags. My reason for not buying knock offs is that I’d be mortified if I got called out by the designer while walking down the street – although not very likely, it could happen. Also, why would I waste money on fake items? I rather work hard and get the real thing.
You’re heading to the movies and sneak in snacks to avoid paying for the expensive theater popcorn and soda. Ethical?
I’ve sneaked in snacks and the only reason I don’t think it’s unethical is because I am not stealing from the theater. If I didn’t bring in snacks, I still wouldn’t buy the expensive popcorn and soda. By snacks, I mean almonds or a protein bar and not a full meal.
You’re in an all-you-can-eat buffet and you wrap a leftover muffin in a napkin and stick it in your purse. Ethical?
I figure the food is headed for the trash so why not pack it up to enjoy later. Technically, I paid for it, but I draw the line at packing an entire meal for later.
You ask for a cup for water at a restaurant with a self-serve drink station and you fill it up with soda. Ethical?
This is one of my pet peeves. I can’t stand it when people do this, especially if they’re eating with me. I feel like any minute we are going to get called out. This is stealing and will force the restaurant to raise their prices so everyone loses.
Casey Serin/Flickr
I get a lot of financial snail mail that I’m not sure if I should keep or not. I’m not talking about monthly bills – almost all of those I receive and pay electronically – but monthly statements, prospectuses, agreements about and changes to my investment account, and disclosure pamphlets. I get the feeling my bank is required by law to send this info to me, but if I read each of these brochures I would be up until 2 a.m.
My area of expertise is in everyday finance, not high finance. Instead of picking up the phone and tracking down an expert for an interview, I wanted to ask the BargainBabe.com community for their opinion.
What financial snail mail do you read? What do you keep? Is it necessary to shred everything I toss?
confidence, comely./flickr
I’ve always had trouble staying on budget when I shop at Target and never knew why. But when I shopped with my father this past weekend, I realized my downfall was never Target – it was my enabling friends.
Here is how to detect if your friends are passing on bad shopping habits and a few solutions to avoid letting them put a dent in your pocket book.
Bargain Hunter
Many of my friends fall into this category. They have an eye for good deals and can talk their way to better deals. But their savvy ways put me in a hole because around them I find myself buying things because it’s on sale and not because I need it. If this rings true for you, then your friend is an enabler. When shopping with them, stick to your shopping list without one slip up. Try carrying cash instead of plastic to make sure you stay on budget.
The BIG Spender
Have you noticed that some people can’t seem to keep their money in their pockets for long? Whatever catches their eye they must have. It’s almost as if their money burns a hole in their pocket. If hanging out with these friends makes you burn money faster, consider finding a new shopping buddy. Instead suggest activities away from the mall – or you’ll pay for it in the end.
The Latest Thing Lover
You know exactly the person I’m talking about: the hipster in your group that is on top of all the latest trends, from fashion to technology. If it’s new, they’ve shelled out the big bucks for it. Good for them if they can afford it, but it’s really hard when they show off the latest cell phone and tease you because you send smoke signals to communicate. If you find yourself buying one just to fit in, cut them of and move on. This person may be lovely but you’re on a mission to spend less and they’re not helping.
Mr. and Ms. Mooch
This is possibly the worst out of the bunch. These friends are not only teaching you bad spending habits, they are making you pay for theirs. You’ll recognize these “friends” as the ones that always seem to forget their wallets or tend to disappear when the check comes around. If you’re always stuck paying the bill for things, a simple reminder and a sweet “do you mind covering me this time?” should do the trick.
I find setting ground rules with friends from the beginning lets them know what to expect. At the end of the day, it’s you, not your friends, who have to pay your credit card bills. Remember this and you won’t get talked into spending money you don’t have on things you don’t need.
How do you deal with enabling friends?
taberandrew/Flickr
This post is brought to you by Mint.com, successor to Quicken Online and a great alternative to Microsoft Money.
When is it worth it to “nickel and dime” someone? I’m not talking about saving a dollar here or there by using coupons or waiting for a sale, but the savings gained by negotiating a slightly lower price.
My case in point is two friends who are about to sign a yearlong lease for a loft in a good location in downtown Providence, RI. The apartment comes with two covered parking spots, a major perk in a snowy climate. All apartments come with at least one space because overnight parking is not allowed.
The landlord, a casual friend of my friends, agreed to leave the place vacant in June and July so my friends can move in August 1. The landlord is willing to lose two months rent to secure responsible tenants, I’m guessing.
He could find other tenants, however. Apartment vacancies are dropping in Providence because of rampant home foreclosures in a state that has the fourth highest unemployment rate nationwide. The vacancy rate was 7.6 percent in the third quarter of 2009, according to the Providence Journal. As a consequence, rents are rising. The landlord is asking $1,250, which is a bit high for the city they live in. Average rent for a two-bedroom apartment is $1,003, the ProJo reported.
My friends really like the loft but are considering asking to pay $1,200 a month, which would save them $600 over the year. The savings are significant to my friends. One of them is unemployed and the other is living off student loans while in law school. But they are worried asking for lower rent will damage their relationship with their landlord/friend, or at the very least make it awkward in social situations.
At what point does saving money end up costing more in bruised relationships? Is it possible to keep the business of negotiating rent out of the friendship? Bottom line – should my friends ask for lower rent?
Related posts:
Money morality – helping out low income friends
Money morality – do you accept money from parents?
Money morality – legit to shop at thrift stores?
xJasonRogersx/Flickr
AARP is an organization for older people, but I love its pro-consumer bent. A recent AARP Bulletin shared tips to make yourself look better to lenders. The list regurgitates old advice but is a good reminder to maintain financially healthy habits. Here are AARP’s credit tips on what harms your score and how to act:
Paying bills late - Car payments, electricity bills, even a late library fine can get reported to the credit bureau. Mark your calendar to pay bills at the same time every month or arrange automatic payments with your bank. My two cents: if you use Google calender, a reminder pops up for every item so you won’t miss a payment.
Closing credit cards - If you really want to close an account or two, close the most recently opened cards and the ones with the lowest credit limit. My two cents: doh! I just closed a longtime credit card because I no longer needed it.
Not checking your credit reports – Be vigilant about checking your credit reports at least once a year; nationwide consumer credit reporting communities such as Equifax, Experian, and TransUnion offer free credit reports. My two cents: true, but the free credit report does not include your credit score, which is like getting a paper back from a teacher marked up but without a grade.
Taking it to the limit- Aim to keep your charges to 30% or less of your available credit. If you’ve almost maxed out your cards, use them as little as possible for a while and pay them down.
Using cash over credit- If you don’t want to pay interest on credit cards, just pay the bill in full every month. My two cents: I disagree! My month-long credit card-less experiment revealed I spend significantly less – about 16% – when I use cash over credit. I think building savings is more important than building a high credit score.
Not shopping around for lower rates – Spend some time looking at cards and rates at Creditcards.com and Bankrate.com. My two cents: these are just two of the many great sites for finding a credit card that fits your habits.
Applying for extra cards- Too many inquiries at one time make you look desperate for credit. My two cents: but how many is too many? 2? 5? 13?
koka_sexton/Flickr
Reader Ellen grumbled about getting tricked by a free trial that turned out to be $35-$40! She emailed me:
In searching for child care I stumbled across the many strings attached to the classic hook, line and sinker: FREE TRIAL. (What I really mean is hook, line and STINKER!) Two Web sites both advertised free trials to post an ad for child care. The responses from caregivers came pouring in to my e-mail only their contact information was not available unless I “upgraded to a premium membership,” which averaged between $35.00 and $40.00.
Now this would all be well and good if the sites didn’t advertise a FREE TRIAL. In calling one site to complain about false or misleading advertising, I was told that in the past parents would first pay and receive no responses so they revamped their policy to protect those who didn’t get responses. While I could appreciate that, I still feel they shouldn’t advertise something as free if indeed it’s just a bait.
Thoughts?
How frustrating! Retailers and manufacturers should disclose the fine print up front because it builds customers’ trust. I know I am more likely to act on a deal or discount if I can see all the hoops I have to jump through ahead of time. If the rules are hidden, I’m likely to think the provider is hiding something suspicious. With all the info, I can fully evaluate whether the deal makes sense for me.
What do you look for if you suspect a deal might not be as good as it seems? Have you been burned before? I recently regretted a “free” postage scale deal.
kevin/Flickr
This post is brought to you by Mint.com, an excellent source for a budget planner.
I’m getting fed up with consumers – the little guys like you and me – taking the blame for the economy. We as a nation spent like crazy, lost a ton of money in the housing and stock market, and now are getting blamed for being careful with our money. “Even as the economic recovery plods ahead, many American consumers are refusing to come along,” says an AP story published today. “They’re not spending freely – and they have no plans to.”
The story makes it seem as if “spending freely” were a good thing. Craziness!
The headline of the story in my local paper (it might have been different in yours) is, “Economy’s new threat: frugality.” If so, here is the face of the enemy: Marjorie Feldman of St. Louis, who owns a home that lost 20% of its value and who saw her retirement account shrink by 15%. Marjorie’s confidence in the economy will “never” recover, according to the story.
That’s code for she’s not spending like she used to. Marjorie’s new frugal spending habits, which many Americans have adopted, are important because consumer spending accounts for about 70 percent of our nation’s economy. If Marjorie and others in her situation would max out their credit cards, we could see the economy recover, the story seems to say.
Or…we could recognize that our economy has an unhealthy dependence on consumer spending that is not sustainable.
Instead of spending beyond our means, we could budget and live within our means. We could save money to retire before we croak. We could save so that social security, Mediccare, and unemployment are not our only safety nets. We could save so our kids can get through college without crippling debt. We could save so that when times get tough we have emergency savings to rely on.
Americans currently save an average of 3.1 percent, down from last year’s peak of 6.4, the story says. I save 10-20% of my income because I feel responsible for my fiscal future. Why do you save?
By Bobbi Burger Brunoehler of BobbisBargains
Evil_Erin/Flickr
Although cigarette smoking has become less cool than it used to be, there are still millions of people who are addicted to a $5-$8/pack a day habit. You have already heard smoking is bad for your health. I’m here to tell you it is bad for your budget, just as BargainBabe.com blogger Mike Barclay did last month. This post is for anyone who is a smoker or knows a smoker who really wants to stop.
First of all, let me tell you that I was a THREE pack a day smoker. How can anyone smoke that much? If you live on cigarettes and coffee and have a cig burning at all times. I know about smoking and quitting smoking.
A recent study found the cost of cigarettes nationwide is $5.28, plus local taxes. There are places online where you can buy them for less (no…. I am NOT going to put a link.) How much does your pack-a-day habit cost?
365 x $5.28/pack = $1,927
Egad! I’ve has passed out from excessive waste of money. Over twenty year’s time, that would be $38,544 or enough to put a 20% down payment on a $192,720 home.
I wouldn’t write this if I didn’t know about a solution. Allen Carr wrote a book called The Easy Way to Stop Smoking
Carr’s book has sold over 12 million copies so you can certainly find a copy for free through Freecycle or a paperback swap site. Carr’s website has celebrity testimonials on the power of this simple, yet extremely effective method to quit smoking. Check out Carr’s website and book if you truly want to quit smoking.
Have you quit smoking? What method worked for you?
Evil Erin/Flickr
I’ve gotten a lot of questions from readers about my month-long cash-only experiment. Why am I only spending cash in April? What is the goal? Did my “emergency” mattress purchase come from savings or the regular budget? How much money do I have left to spend this month? Answers below.
Q: Is the mission of your cash-only experiment to find out how much money you need to live on per month? How much you want to live on per month? Or some combination thereof? – Concetta
A: Neither. I know how much money I have to spend after bills and savings every month. And most months I’m good at staying within the limit I’ve set for myself.
Q: Is the point just not to use credit? Or is it more about how to use credit smartly? – Concetta
A: Yes and yes! I usually rely on credit heavily because I spend cash quickly, don’t like going to the ATM, and prefer not to carry gobs of money. But studies show people are more reluctant to spend cash over credit. An NPR story from 2008 says psychology is responsible. I was curious if spending only cash would change my habits and reduce my overall spending. In the process, I’m learning how to use credit smartly.
Q: Part of an exercise like this is to be able to defer those expenses until they do fit into the budget. Is the point of this to simply pay cash for everything (no matter if the budget is met) or is it to begin the process of defining wants from needs? – Janet
A: Yes, the point is to pay cash for everything, even major purchases. In my book, defining needs versus wants is unrelated to how you pay for them. Instead, defining needs versus wants is about sitting down with paper, pencil, and a calculator and creating a first budget. Once you have taken into account regular bills, irregular expenses, and fixed expenses, you will know how much money you can actually spend each month on fun stuff like meals out, movie tickets, and clothes.
Q: What happened to the mattress!? – Sarah
Back story: I put off buying a mattress for so long that after three sleep-deprived nights I had to start sleeping on the couch or shell out for a new mattress. I chose the latter, seeing how the couch is covered in dog hair. From browsing mattress sale flyers, I knew I could get one for under $1,000. I researched coils, padding, and natural fibers online and realized only two things mattered. Was the mattress comfortable? If so, did it fit my budget? A good friend highly recommended IKEA and from the website I was confident I could find a mattress within my budget, less than $500.
A: I went to IKEA, found a comfy mattress within budget, and lugged it home with the help of a burly friend. I’m sleeping easy, but debating whether the $533 mattress should come out of my monthly budget or savings? I tossed around the pros and cons for a week, asked readers to weigh in, consulted friends, and decided the mattress will come out of my savings.
Here’s why. I have ample savings to cover a big last-minute purchase like this. Even though I put off the mattress purchase until it became an emergency, for weeks I had been mentally preparing myself for the big purchase.
Q: What I want to know is how you researched this mattress for the features you wanted and price before spending the money. For example, did you consult Consumer Reports? Tell all, BB. – Diane
A: See above.
Q: So how much money do you have left to spend this month? (I submitted this one!)
A: My target spending was $1,200 for April. If that number seems high, hang tight. I’m writing a future post about my budgeting system and why my so-called discretionary spending is higher than other budgeting systems. So far I’ve made three ATM withdrawals totaling $1,200, but the $533 mattress came from savings so I have $667 left to spend this month. Not bad!
By Mike Barclay of 10CentsWorth.com
Sean Oliver/flickr
If there’s one phrase in the English language that brings more pain than others, it’s “late fees.” Nobody likes to hear the words, “I’m sorry, but we’re going to have to add a fee for your late payment” or see a late fee tacked onto their credit card statement.
It’s tempting to be apathetic and think, “Eh, it’s only another $15 I have to pay.”
Not a smart idea. Here are four late fees that add up quick:
Library Fees
With late fees racking up at around fifty cents per book per day, avid readers like myself can end up with a hefty bill for forgetting to return books. I have about ten books out currently (not past due, go me!) but if I were to bring them back a week late, that’s an extra $5 out of pocket though they started out free!
One week of late fees for 10 books = $5
Redbox Movies
Movies for a dollar? Or nothing if you have a Redbox coupon code? Fantastic! The kicker comes when we end up with no time to return the movie, which is a plague amongst many. Technically, you are not paying a late fee but re-renting the movie for a dollar per day each movie is past due. Soon you are close to paying theater prices.
Week of extra rental fees for one movie = $7
Credit Cards
I have a Best Buy credit card for my laptop that I’m still paying off. If I miss the payment date, they tack on $25, which is less than the average credit card late fee of $35. Not to mention the interest that adds up the longer I take to pay off the laptop. A year of late fees alone adds up to $300! That’s almost a quarter of what I paid for the laptop itself.
One year of credit card late fees = $300
Apartment Rent
First day late is usually around $15, and then another $5 per day after that. At least that is how it is for my apartment. I hope that all of us are timely enough to avoid late fees. I don’t know about you, but an extra $20 in late fees digs into my wallet.
Two days late on rent = $20
Now that I’ve sufficiently depressed you with how quickly late fees accrue, how do we stop it? I set alarms and reminders for myself. If I get a movie from Redbox, I’ll post a sticky note somewhere I will see frequently to remind myself to return it. I’ll even schedule due dates into my calendar so a reminder of the due date pops up on my phone. Same thing with library books, credit cards, and other bills.
Being late is not worth the extra cash. Trust me, from my own personal experience, it adds up.
shazeensamad.com/flickr
By Mike Barclay of 10CentsWorth.com.
It’s been a ridiculously long day. Your boss was breathing down your neck all day, the guy who sits next to you wouldn’t keep his mouth shut, and your computer kept freezing. Finally, you get to your car and what’s the first thing you do? You reach into your pocket and grab a cigarette. Instantly, a calming feeling rushes over you.
How do I know this? I used to smoke. Eventually I realized all the negative things about smoking and I quit. It reduces your lifespan, it causes lung cancer and a number of other diseases. It makes you smell and turns your teeth yellow. There’s a million reasons you shouldn’t smoke, yet so many people overlook how much their cigarettes are costing them. Let’s break this nasty little habit down, shall we?
The average cost of a pack of cigarettes is around 5-6 dollars. So we’ll go with an average of about $5.50 with tax. The average smoker will smoke about a pack of cigarettes a day. That means that you’d be spending:
Weekly: $38.50
Monthly: $154.00
Yearly: $1,848.00
That’s A LOT of cash to be spending on something that is physically unhealthy! And I’m just talking about the direct cost of the pack of cigarettes itself. When you factor in all of the other medical expenses that will inevitably come from all of the junk going into your system, who knows what the total cost at the end of your life would be.
What could I do with an extra $38.50 a week? It could go towards my weekly groceries (especially if you’re trying to keep your grocery spending to around $25 a week), my monthly auto insurance, or credit card bills. You could even use it to splurge on your family once in a while and go out for a nice family dinner.
A lot of people have problems quitting, which wasn’t that difficult for me. You may be able to kick the habit in seven days if you really are motivated. Buy some Vitamin C from your local grocery store, and a couple bottles of pure grapefruit juice (not the cocktail, just straight grapefruit juice.) Use the Vitamin C as much as you want (you can’t overdose on it) so it flushes everything out of your system. Should take about 3 days to totally cleanse yourself of the actual nicotine. Then, it’s no longer about the chemical addiction, but just the habitual.
Carry around some grapefruit juice with you wherever you go. When you have the urge to smoke, take a swig. Knocks the urge right out of you with the shock of the tartness. All of this will cost you maybe an extra $5-15 a week until you’re finally rid of the addiction, which may only take you three weeks. And in the long run, it saves you thousands.
And of course, your life.
UPDATE: Linda has some painful, I mean helpful advice for quitters:
I, too, am an ex-smoker and believe me it was very hard for me. Took 3 trys. One more thing that helps with the habit part — put a thick rubberband on your wrist and snap it every time you want a cigarette. This helps because you will start to associate smoking with pain.
Emmy says knowing where your bottom line is, is powerful:
Ha! If I had been a smoker I think this great insight might have been pretty darn helpful. Seeing how much things cost makes you really take a second look at where you are spending your money and allows you to really ask yourself … Why!
I’m debating another financial experiment similar to the spending moratorium I undertook last July. This time, I am considering not using any credit cards or debit cards for an entire month, starting April 1. No, this is not a joke.
I got the idea after talking to a friend who had to cancel her credit card because of fraudulent charges. (This was not the same friend that had her credit/debit/ATM card number skimmed.) My friend didn’t have a back up for some reason and was forced to go without a credit card for about a week.
She was astonished at how different it felt to make regular purchases – with cash. At Target she picked out a gift for her grandson’s birthday that came to $61. She balked. $61? In cash? She would not have thought twice about swiping her plastic.
My friend’s experience made me wonder. Is it easier to stay on budget with cash? I pay my bill in full every month so this experiment is not about learning to spend within my means. It’s about spending less.
I rely heavily on my credit card because I spend cash so easily. In fact, I try to limit my ATM usage to one withdrawal of $100 at the beginning of the month. So there is a chance this experiment could go very badly.
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