A Big Day And A Bigger Check?

July 17, 2015

Many moons ago, I remember going from catering company to catering company doing tastings for my wedding. Then there were the conversations with florists, musicians, photographers, venues, etc…it’s all a blur now. Because it was a long time ago and because I was trying to be frugal, the wedding came in well below the average cost of a wedding. I believe that all in, the cost was around $10,000 for everything. Sadly, the divorce 17 years later cost WAY more than that!!! Continue reading “A Big Day And A Bigger Check?”

Bigger Is Not Always Better

July 08, 2015

I recently took my son to a local family entertainment center to escape the heat and enjoy a little bowling, laser tag, and arcade action with his friends. After a few hours of running around, they all started to get thirsty so I walked up to the concession stand to purchase drinks. They offered drinks in three sizes: 16, 24, and 32 ounces. The 16 ounce drinks were $1.75 and the 32 ounce drinks were $3.25, making them a slightly better deal. Continue reading “Bigger Is Not Always Better”

The Only Extended Warranties I Usually Buy

June 12, 2015

I am not normally a fan of extended warranties on many things.I once worked with someone who owned car dealerships and in discussing their business, I learned that the extended warranties have very high profit margins so the consumer in me said “if the profit margins are that high, they probably aren’t a good deal for me as a buyer.” I usually opt out of the warranties on relatively durable goods like a car, washer/dryer, microwave, etc. So far, it hasn’t come back to bite me (so far…). However, I do give consideration to buying the warranty on less durable things, like electronics (laptops, TVs, etc). Continue reading “The Only Extended Warranties I Usually Buy”

How Many Toys Is Enough?

June 03, 2015

My neighbor down the street is selling his camper, and so my wife walks in the house the other day and says, “Honey, did you see the camper for sale down the street?” Now I love to camp, and to be quite honest, I was stunned she even asked the question. First of all, we already have a boat, and second, she’s not really a big fan of camping. To me, camping is about “roughing” it, but for my wife, she likes to “pamp,” (which is a word my friend made up that describes people who want to be pampered when they camp—thus the name). Continue reading “How Many Toys Is Enough?”

Don’t Let Car Problems Wreck Your Finances

May 26, 2015

Have you ever found yourself in a situation where you had to dip into your savings account or worse, pull out that credit card that you just paid off and use it for sudden car problems? When my husband and I were struggling financially, there were few areas in our finances that brought us to our knees the way that a potential car problem did. As my husband and I were reminiscing (really shuddering), he told me that if he had to talk to a couple struggling to manage their finances and their cars the following is what he would tell them: Continue reading “Don’t Let Car Problems Wreck Your Finances”

Should You Lease Or Buy Your Cell Phone?

May 20, 2015

Usually when someone is talking about leasing versus buying, they are talking about a car or real estate. However, have you ever stopped to consider that when it comes to choosing a cell phone provider, you might be making the exact same decision? You probably never thought of it this way, but when you sign a contract with any one of the major carriers, you are in essence leasing the phone. Continue reading “Should You Lease Or Buy Your Cell Phone?”

The Non-Planner Perspective

May 15, 2015

I began paying rent when I was about 21 years old while living with a roommate. I was making pretty good money for my age and a couple of years later, decided it was time for my own space. Of course, with that, came more financial responsibility. Continue reading “The Non-Planner Perspective”

Always Read the Fine Print

May 13, 2015

Last month was my son David’s 15th birthday. For years, he has been asking for a cell phone, and now that he is a freshman in high school, has maintained good grades, and has shown at least some level of responsibility, his mother and I decided he was ready. I agreed to add David to our cell phone plan on one condition: that he buys his own phone. (Susan and I have found that the kids are more likely to take care of their devices when the cost to purchase it comes out of their own pocket.) Continue reading “Always Read the Fine Print”

Eating Healthy On A Budget

April 28, 2015

Okay, I will admit it. I am a little bit of a health nut. I love to run, do obstacle races, and do CrossFit and decided to also do the Insanity videos because I felt I needed a little something extra. My husband just looks at me, shakes his head, and loves me enough to give me the Epson salt when he sees me struggling to get off the couch – without commentary. Now that is true love. Continue reading “Eating Healthy On A Budget”

Don’t Pay For Free Stuff

April 24, 2015

I was walking down a long pier with my kids not too long ago and there was a big splash off to our left.I jokingly yelled “Free Willy” and my kids looked at me like I was having some type of out-of-body experience. They had no idea what I was talking about since the movie was made well before any of them were born, and while they’ve seen nearly every Disney and Pixar movie made since their birth, I guess they missed some of the older ones. They know way more about “Finding Nemo” than “Free Willy.”  Continue reading “Don’t Pay For Free Stuff”

5 Lessons I Learned When I Downsized My Home

April 17, 2015

I am especially thankful this past Easter because I moved into my new house. The kids are away at college so I decided to downsize and move to the city. After almost a year of living in temporary housing, my newly renovated, 19th century row house was ready. Yeah! I was like a kid on Christmas morning as I watched the moving truck arrive and the movers bring in my belongings that were in storage for the past year.

Seven hours and a gazillion boxes later, I was feeling overwhelmed and exhausted. Was this all mine? Gosh, I didn’t remember having so much STUFF. I’ve spent the past three days unpacking and working very hard to turn what looks like a hoarder’s paradise into my home. Here are some lessons that I’ve learned as the boxes get unpacked:

Stuff multiplies in the dark. I decluttered my previous house before listing it for sale.  Then before the moving truck arrived, I donated countless bags of clothes, sold furniture on Craigslist, and then filled a dumpster with all the other things that I knew I couldn’t or wouldn’t use anymore. Still, I am overwhelmed with all the stuff that arrived this weekend and am convinced that it multiplied while in storage! How else can I explain the four identical cookie sheets, six baking dishes, and five black sweaters?

This house just can’t hold as much stuff so I’m re-packing boxes of gently used cookware, clothes and furniture for Goodwill. It’s a shame that I paid the moving company to pack, store for a year, haul 600 miles to my new house, then unpack a lot of things…all to give it away. That’s a lot of money spent on things that I didn’t need.

Protect the priceless.  I spent 24 years collecting things to provide a warm and inviting home for my family. We had countless sleepovers, family gatherings, and home cooked meals throughout the years and I loved those times. However, looking back, I know that I could have provided the same great times without all the household stuff that I acquired.

As I unpack, the things that moved my heart the most were the pictures. They triggered the memories that are truly priceless. However, they were just placed in regular boxes and the elements destroyed some of them. I will go through the stacks of pictures, throw away those that were bad shots, and make digital copies of the keepers. I will store the digital copies on free online sites like Google Drive or Dropbox or store them on an external hard drive.

When moving, pay for full value protection. I chose a national moving company because my move was across a few states and I wanted the convenience of having one contact during the entire process. This company came highly recommended by people that I trusted but I had a fair amount of damaged items. In particular, my buffet server and my grandmother’s cedar chest were badly broken.

I don’t have receipts for either. However, because I purchased full value protection insurance, I should be able to replace the buffet with something comparable. My grandmother’s cedar chest was nothing fancy, but it was priceless to me, and my claims agent has already reached out to see how it can possibly be repaired. Only time will tell, but this was insurance that I’m glad I bought.

Think very hard before buying anything else. Before the move, I’d been pretty good about staying out of the stores. I struggle with being inside Target or Bed, Bath & Beyond and making impulse purchases, but I need bath rugs, window coverings, and other miscellaneous (but expensive) things for the new house.

I will be very deliberate on what I buy this time around. I have a list and a budget in hand before I go. I also do my best to speed through the aisles and not linger. This way, I don’t happen to see some new, fancy thing-a-mo-bob and convince myself that I need it.

Keep the ibuprofen handy.  I absolutely love my row house except for the stairs. I have easily climbed 100 flights over the past few days and my legs are in serious pain.

Add the fact that I’ve carried boxes up and down those said flights, and it’s easy to understand why my back, shoulders and arms all feel like I’ve been hit by a truck. I think I’ll cancel my gym membership. Thankfully, I remembered to pull out the pain meds as well as other important items like my passport, prescription medications, bank account statements, jewelry, will and living will documents. Now if I can only find the box with the wine glasses….

 

 

“Worthless” Hunks of Junk

April 10, 2015

My daughter and I were talking about cars recently.She borrowed mine to “allow me” to drive hers for a few days to see if I could figure out what was the source of a noise coming from her car. After driving it for two days, I couldn’t figure out the noise but I was able to fill up her empty gas tank, check her fluids and inflate her tires.   Continue reading ““Worthless” Hunks of Junk”

How a Journal Gave Me a New Perspective on Money

March 25, 2015

A few months ago, I started to keep a journal so that I could capture my thoughts about life and record them for the benefit of my children. I figure I work all day long and don’t really have much time to teach them some of the important lessons that I’ve learned along the way. My hope is that one day they will pick up my journal and hear my voice as I speak to them about what is really important. In the same way, there are some things that are just more important than others when it comes to our finances. Here’s how journaling has helped me deal with this concern: Continue reading “How a Journal Gave Me a New Perspective on Money”

Only You Can Prevent Financial Fires

March 24, 2015

Not to date myself, but I used to love the Smokey the Bear commercials about how, “Only You Can Prevent Wildfires.” Well, when it comes to financial fires, the same rule applies. Although everything around you seems like it is out of your control, there are things within your control that you can do. Continue reading “Only You Can Prevent Financial Fires”

How to Maximize Your Satisfaction

March 19, 2015

How do you make decisions? According to this article, there are two basic approaches. Some people are “satisfiers,” which means that when they see a choice that satisfies them, they take it. Other people are “maximizers,” meaning they want to see and study all the choices to pick the best possible option. Maximizers do tend to make “better” choices (for example, they make more money on average) but they also aren’t as happy with those choices (including with those higher-paying jobs). That’s because maximizers are always wondering if there’s a better choice they could have made. Continue reading “How to Maximize Your Satisfaction”

How to Find Lost Money

March 16, 2015

A few weeks ago, a truck and the trailer attached to it were stolen from a hotel parking lot in the suburbs of Atlanta. Unfortunately, it seems like crimes like this happen on a daily basis. In the case of this particular theft, it is likely the nighttime bandits had no idea what they were actually stealing. Continue reading “How to Find Lost Money”

How Costco Is Like An R-rated Movie

March 11, 2015

Recently, my teenage daughter wanted to go with some friends to see an R-rated movie but she’s not 17 yet.  I had to inform her that the rules are the rules and that she couldn’t go to that movie without an adult. That’s when my wife chimed in and asked if she could apply that adult supervision rule to me when I go to Costco!

Being a good financial planner, I use Costco to save money on items that my family uses frequently and buys in bulk. I admit, however, that one of my challenges is that the TVs are right by the door. Even though I come in with a list of things to buy, I almost always stop and check out the latest and greatest TVs and start thinking about which ones would be the best for sports, which would work better for movies, etc.

That 3 or 4 minutes of distraction sometimes lowers my vigilance and while I haven’t walked out with a new 70 inch TV, I have made a couple of small impulse purchases. Personal finance is just as much or more about our behavior as it is about math.  So what are some things that I – or you – can do to avoid the need for adult supervision?

  1. Make a shopping list and stick to it. Remember that if a product is as good and useful as it appears to you at that moment, the supplier will continue to make it.  You will be able to calmly and rationally decide at home whether that purchase really would make sense the next time you go or if it was just an impulse buy.
  2. Understand what your triggers are. In my case, I love to watch sports and am always looking for the “perfect TV” to watch a game. Since a large TV is a major purchase, I have avoided the temptation to unnecessarily buy a TV but I have learned that the TV dreaming at Costco triggers my desire to want things that aren’t necessary. Now I make a conscious effort to move past the TVs as fast as possible so that I can avoid my trigger. What is your trigger?
  3. Set a budget for your shopping trip and keep tab of what you’re spending. If you know what you’re shopping for, you should have a good idea of what it will cost. Set a limit – say $200 – and use the calculator app on your phone to keep track of how much you’ve spent so far. That way if you get up to $180 and you still have items on your list, it’s much easier to see that no matter how tasty that free sample was, it isn’t affordable today.

Use these tips to save yourself a substantial amount in impulse purchases, and if you know of any good deals on TVs – let me know.

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Noise Cancelling Headphones Needed

January 30, 2015

 

I recently had a flight to remember. After a mad scramble to the airport and through the security line, all I wanted to do was relax in my airline seat after a long day. I plopped down into my seat next to a guy with ear buds that I think allowed me to hear his music better than he could.

The volume on his phone was probably not that high but I could clearly hear his music and I was annoyed because I was tired, felt a cold/flu coming on, and just wanted to relax. He promptly fell asleep but I couldn’t because his music was keeping me awake. As I was sitting there trying to focus on something other than his heavy metal playlist, I longed for noise cancelling headphones!

Then I thought it would be nice to have something to drown out the noise in the advertising world the way noise cancelling headphones block out the audio distractions. Thankfully, the holiday season is over along with the 24/7 messages to buy, buy, buy.  Of course, these media messages don’t talk about how to pay for all the things we buy…

Now, a month later, the bills are coming due. I heard a commercial the other day suggesting that I don’t have to worry about those bills because I can make them all go away by filing for bankruptcy. Incredible!

That’s an awesome message. Shop till you drop…then file bankruptcy. That’s not exactly the way I’d recommend people handle the holiday season! Then I remembered how nice it would be to have those noise cancelling “financial headphones” to drown out all the fiscally irresponsible messages we all hear so that we can focus on what’s important to be as healthy financially as possible.

I will use my “financial headphones” to drown out the urge to only pay the minimum on my credit card. I will also fight the temptation to buy anything that I will not pay cash for. Next, I’d use my headphones to drown out the financial talking heads who shout their predictions of the economy and the markets. If I had listened to some of the 2014 predictions,

  • We would be experiencing 50% unemployment, a 90% drop in the stock market and 100% annual inflation, as predicted by economist Robert Weidemer.
  • Silver will have a 50% return (it had a -13.84% annual return in 2014)
  • A barrel of oil will be close to $150 (Brent Crude Oil spot price on Dec 31st was $55.27 per barrel)
  • The Fed will be viewed as acting too timidly and Democrats will win control of Congress. (Tell that to all the Democrats that lost their seats.)

My point is that these “experts” don’t truly know more than you or I do so don’t spend precious time listening to them. Put those headphones on! Instead choose your investments based on your goal timeline and risk tolerance.

For example, my friend has a plan to buy a house this year so her down payment is in a bank savings account. Her tolerance for losing money is zero since she needs it soon. Her short term investment goals are far different than her long term investment goals so she has a different approach to long term investing. Her Roth IRA is invested 70% in stocks and 30% in more conservative investments because she can tolerate short term market dips in order to potentially gain longer term. Blocking out the “expert predictions” can be a valuable thing in your financial life.

Lastly, if I had those magical financial headphones, I’d use them to block the constant message that I need new stuff. When my cell phone contract expires this year, I won’t buy a new cell phone just because I can. My current one works just fine. When I move into my next house, I will only purchase what I truly need – which is very little.

I also plan to turn off the TV and the computer to minimize the amount of advertising that I’m exposed to. I’m starting to think that advertising just might be a little bit too effective today! I have a business trip planned next week and I’ll make sure to pack my noise cancelling headphones. I have learned my lesson and am better prepared for my next plane ride as well as for my future goals.