Beware Black Friday ‘Deals’

November 23, 2018

As we see the full retail advertising onslaught and stores open ridiculously early for Black Friday (some are even opening on Thanksgiving Day now, which I find appalling), please try to remember a couple of things:

1) This is the time of year when emotions can override logic and overspending can occur. I have spoken with countless people who end up with a sizeable chunk of credit card debt because of holiday spending. Go into the shopping season with a list (wow, I’m becoming my mother!) of who you are buying gifts for and set a budgetary target. Then, stick to those targets. Those Black Friday “deals” may not seem like such a deal if they have 19.9% interest tacked on to the balance next summer.

2) The people in your life, if they are anything like me, will be happier to spend time with you than they are with any gift that you might buy. I’d wager that if you think back over the last several years, you probably can’t remember what you bought for each person on your list or what they bought for you. It’s a season of friends, family and togetherness – not retail profits.

Drink some cocoa, enjoy your friends and family – and have a safe, fun, and financially secure holiday season.

Easy Ways to Be an Economic Patriot

May 08, 2017

Are you looking to support the American economy by how you spend your money? If so, you’re not alone. About 80% of Americans would prefer to buy an American-made product, according to a 2015 Consumer Reports survey. In fact, six in ten people surveyed said they’d be willing to pay up to 10% more for a product if they knew it was American-made.

The problem is that in a global economy, it’s pretty challenging to easily discern what is American-made and what isn’t. Your computer or cell phone may bear the name of an American company but is manufactured entirely overseas. Conversely, your car or your ice cream may be produced in the United States by a foreign firm. Many goods are a hybrid of some components made overseas and some made in the U.S. So what’s a consumer who wants to express their economic patriotism to do?

Look for “Made in the USA” label

The lowest effort way to find out if something is made in the U.S. is to check the label or the box. According to the Federal Trade Commission, products with the label, “Made in the USA,” means that “all or virtually all, of the product has been made in America. That is, significant parts, processing and labor that go into the product must be of U.S. origin.”

The very first thing I do before deciding between competing products is look for that label. Remember, just because something has an American flag in the logo doesn’t mean it’s made in the U.S. See these guidelines from Consumer Reports on how to spot the real thing.

Buy goods made in the U.S. by global companies

That candy bar you crave might be manufactured in the United States by American workers for a global company. Many well-known brands have production and manufacturing in the United States, employing American workers and contributing to the local community and national economy. In fact, data from the Brookings Institute showed that as of 2014, 5.6 million Americans were employed by foreign-owned establishments – about 5% of the workforce. The easiest way to find out if a product from a foreign-owned firm is made in whole or in part in the U.S. is to check their website or do a quick Internet search of “where is ____ made?”

Shop small and shop local

Small businesses of less than 500 employees employ nearly half the American workforce (56.8 million employees). Every time you buy a birthday gift at an independently owned toy shop, buy your shoes at a local shoe store, or visit a local printer for party invitations, you’re contributing to your local economy and supporting local jobs. This past weekend, I was shopping for new hockey skates for my son, and I decided to buy them at a local shop instead of ordering them online.

Sure, online shopping is convenient, but my dollar doesn’t have as much power there. As it turned out, the hockey store was having a sale, and I ended up spending less money – and my son got a custom fit. If making an impact with your consumer purchases is important to you, there’s no place like home to do it.

 

Can you think of more ways consumers can be economic patriots? Please email me at [email protected]. You can also follow me on the blog by signing up here and on Twitter @cynthiameyer_FF.

 

Hiding Purchases From Your Husband is So 1950

March 29, 2017

When I was a little girl, I remember my great aunt sending my mom money with a note that simply said, “Please don’t send a thank you note. I don’t want my husband to know.” My great uncle was a bit of a curmudgeon and my aunt would have suffered for her generosity. I also remember my grandmother taking me shopping for back-to-school clothes but telling me to leave everything in the car when we went back to her house so my grandpa wouldn’t know she was spending money. Sound familiar?

A lot of us grew up with this example and continue to exhibit similar behavior in our lives today. Have you ever rushed to put purchases away in the closet before your husband could see or stuffed your Lululemon purchases into your purse before walking into the house to avoid a potential fight about overspending on perceived wants versus needs? How about hiding a Target splurge on stuff for your kids?

While these actions may have been slightly justified back in our grandma’s day, these are all examples of financial infidelity. Just like if you were deleting texts between you and a male coworker to avoid a fight with your husband, hiding purchases from him is the same behavior. It’s a violation of trust. What do you really have to hide?

Back then, women didn’t have as many choices when it came to careers and having their own money or even sometimes in choosing a life partner. I will never forget the day I nervously broke the news that my first marriage was ending to my grandmother. Her response surprised me.

She said, “Good for you. You will do just fine. If I’d had a career and options like you, neither one of my marriages would have lasted.” And while I didn’t relish the thought of anyone I love feeling “stuck” with someone else I love, I understood what she meant and she was right. The big difference between back when my grandmother had to sneak spending behind my grandpa’s back and today is that if you find yourself in a marriage where you truly don’t have economic power, you have the choice to work it out or leave.

I’m not saying you shouldn’t have the autonomy to make your own purchasing decisions – quite the opposite. You may never get on the same page with your spouse about the value of spending on certain things like clothes or wine or electronics or name the thing that causes money fights in your marriage. But there are ways to solve that without hiding purchases such as having separate spending accounts where you agree that you each can do whatever you want with that money with no judgment and no arguing. The kicker is that you both have to stick to the agreement where you only spend that money and not other money that’s allocated towards your family’s goals.

It may be a challenge to arrive at an amount you both agree on for your spending money. When a spender marries a saver, the saver will always want to spend less, but there are logical ways to arrive at that number. Start with your shared goals like retirement, paying off debt, saving for college, etc. Assign a number to those goals and calculate what it will take to get there and agree together whether that amount is reasonable or if you need to modify the goal. Getting on the same page about this helps you both feel responsible for your part in achieving that goal and should help the saver partner relax a little bit about spending on things they don’t perceive as necessary.

Kelley Long is a resident financial planner with Financial Finesse, the leading provider of unbiased workplace financial wellness programs in the US. For more posts by Kelley or to sign up to have her weekly post delivered to your inbox each Wednesday, please visit the main blog page and sign up today.

My Favorite Credit Cards

January 19, 2017

Do you find yourself stuck with big credit card bills after the holidays? One way to make credit cards work for you instead of against you is by maximizing the points you earn on stuff you buy throughout the year. In fact, I generally enough in points to more than cover my holiday spending.

Don’t forget that this only works if you pay the balance off each month. Late payment fees and interest charges can more than erase the value of points you earn. With that being said, here are the cards I use for each of my major spending categories:

Regular bills: For things like my cable, cell phone bill, insurance premiums, and subscriptions, I use the Chase Ink Cash Mastercard. It pays 5% cash back on the first $25k per year you spend on office supply stores, cellular and landline phone service, and Internet and cable TV services, 2% cash back on up to $25k per year spent on gas stations and restaurants, and 1% cash back on everything else. I keep this card at home so I don’t have to worry about losing it and having to update all my autopays.

Business travel: I use the new Chase Sapphire Reserve, which offers primary rental car coverage and 3 points per dollar spent on travel and restaurants. Those points can then be combined with the Chase Ink points above and redeemed for 50% more in Chase’s Ultimate Rewards portal or exchanged for points 1:1 with one of Chase’s 11 travel partners. There’s a pretty steep $450 annual fee but also a $300 travel credit and a $100 Global Entry fee credit so you can still come out ahead if you travel enough. Finally, it offers a 100,000 point sign-up bonus if you apply by March 12 at one of Chase’s bank branches and spend $4,000 in the first 3 months.

Amazon purchases: I’m an Amazon Prime member and do most of my big ticket spending on Amazon so the Amazon Prime Rewards Visa Signature Card makes sense. It offers 5% cash back on Amazon purchases (for Prime members), 2% back on restaurants, gas stations, and drug stores, and 1% back on everything else along with purchase and extended warranty protections. Not only is there no annual fee, you also get a $70 Amazon gift card for signing up.

Target purchases: I have a Target a couple blocks from my home so I tend to do most of my in-person shopping there. The Target REDcard provides a 5% discount and an additional 30 days for returns. I signed up for the debit card since it provides the same benefits without having yet another credit card on my credit report.

Other purchases: I use the Consumers Credit Union Visa Signature Cash Rebate card. It gives me 3% cash back on grocery stores, 2% on gas, and 1% on everything else. That doesn’t sound that great, but if I spend $500 in a month, I can get a 3.59% interest rate on up to $15k in my Consumers Credit Union rewards checking account and if I spend $1,000 in a month, I get a 4.59% rate on up to $20k in that account. That 4.59% interest rate can easily dwarf the value of other cards’ rewards, especially if you’re more of a saver than a spender like me.

Once I hit $1,000 in a month on my Consumers Credit Union Visa, I use the Citi Double Cash Mastercard. It offers a simple 1% cash back on every purchase and then another 1% cash back when you pay it off for a total of 2% cash back on all purchases. This is a good card to have in addition to any cards you may choose for more specialized spending categories.

Keep in mind that just because I chose these credit cards doesn’t mean they’re the best for you. Think about how you use credit cards and what you spend them on to see which card(s) offer you the most value. (For some, the simplicity of having only one card may be their best value.) Finally, I’m always up for suggestions. If you know a card that might be better for my spending, send me an email at [email protected].

How to Financially Survive the Holiday Season

November 08, 2016

I love the fall – the changing colors of the leaves and the beginning of the holiday season. For many, this gives us time to spend with family, but for a lot of us, the holidays create a black hole in our wallets. I am sure that it comes as no surprise that Thanksgiving and Christmas are two of the most expensive holidays of the year, but with some planning, these holidays do not have to wipe out your accounts:

1. Review your spending to determine a realistic budget. Before you get caught up in the non-stop “Black Friday” sales that seems to start right after Halloween season, take some time and realistically assess your budget to come up with a total dollar amount you can spend on family gifts. Consider using your bank’s software or websites like, Mint to help you create a budget.

2. Come up with a game plan for who will and who will not get gifts. I have a HUGE family: 5 brothers and sisters and close to 20 aunts and uncles between both my parents. (Don’t get me started on first cousins, much less second and even third cousins.)

I limit gifts to immediate family members, and I give either a family photo or a photo of the kids in an inexpensive frame for family gifts. Decide who will get gifts and come up with a game plan for other family members. Remember, gifts can be more than something you purchase- yummy desserts or an offer to babysit or do another needed service for a family member are great gifts.

3. Start shopping now for great gifts in inexpensive stores. The best time to hunt for gifts in inexpensive stores is now. Also, start searching consignment shops, particularly for kid’s gifts. A few years ago, we got an expensive all wooden dollhouse filled with wooden furniture and dolls for under $25 at a local consignment shop. Start slowly going to local stores to find some great deals.

The holidays can be financially stressful. However, they do not have to be if you take the time to plan ahead. Start planning now so you can save later.

 

 

 

3 Reasons We Spend Beyond Our Means

June 29, 2016

While the US personal savings rate is higher these days at 5.4% than it was a year ago, Financial Finesse’s research shows that 34% of people are living beyond their means or spending more than they make. Some of this overspending is due to factors beyond their control like medical expenses or other emergencies. But in many cases, it’s more from a lack of planning ahead combined with rationalizing what one can “afford,” a measurement that is often more emotional than based in reality.

For example, when it comes to meeting up with friends after work for happy hour, I’ll go to great trouble to avoid paying $15 for parking or a taxi cab, but don’t think twice about ordering a glass of wine that costs the same. When I stop to question this logic, it sounds nuts. How can I mindlessly afford $15 for a glass of wine but schlep for several blocks from the bus to avoid spending the same amount for more convenient transportation? We make the same kinds of bargains with ourselves all the time. If you’re looking to save more money by cutting back on spending, it’s important to be aware of these three reasons that often cause us to compromise our savings goals:

1. It feels good. Emotional buying is a lot like emotional eating. When we’ve had a bad day or are tired, sad or sometimes even ecstatic, our emotional mind tends to rule out our rational thoughts. But while a purchase may temporarily lift your spirits, it won’t solve the emotional need you’re seeking to fill.

One way to overcome this trap is to build a “bad day” spending amount into your monthly budget. I have a friend who keeps a fifty dollar bill in a hidden fold of his wallet for those days. Another way is give yourself visual reminders. I keep a sign in my office that reminds me, “Until you make peace with you are, you’ll never be content with what you have.” Rather than trying to buy your way to happiness, think about what’s really missing and take the baby steps to get closer to that.

2. The Pinterest effect. Social media has taken celebrations like weddings and even simple backyard barbecues to a whole new level of creativity and even competition to have the prettiest, the hippest, and the most impressive decorations and ideas. I cannot believe the themes some of my friends pull off for their kids’ birthday parties. To me, it’s a modern day version of keeping up with the Joneses times ten.

If your 5-year old’s classmate has a farm-themed party complete with pony rides, there’s an element of peer pressure to match or better that with your own kid’s party. That’s fine if it’s part of your budget, but if it stresses you out to think of what you’ll have to pay for a bouncy house or to have a live Elsa show up to the party, take a step back and assess your priorities. Your child won’t miss what’s NOT there, and you can use the money you save toward their education. “I wouldn’t mind taking out student loans if it means my parents had thrown me extravagant birthday parties as a kid,” said no college student ever.

3. We all love a good “deal.” It’s a proven fact that when large retailers go out of business, they often hire liquidation firms who come in and actually mark up prices so that they can “discount” them in an effort to clear items out of the store. They’re banking on buyers’ perception of getting a deal and it works. Same goes when you’re shopping online and buy more simply to qualify for free shipping.

When you find yourself buying something that you weren’t actually seeking out, take a pause and first consider whether it’s something you need and can afford. Try to fast-forward in your mind to the next time you’re cleaning out your closet or packing up to move and whether you’ll be glad you have that thing or wish you hadn’t purchased it. If you do decide it’s something you need, then do a quick check on your smartphone to make sure the price is actually a deal. Stores call this “showrooming,” which means they hate it when people do this, so try to be inconspicuous, but if you do find a lower price online, see if the retailer will honor it.

Finally, when you do find yourself overcoming the urge to spend, don’t let that money find itself being wasted somewhere else. Consider turning that victory into actual savings by transferring the amount you were considering spending into your savings. It adds up and you’ll never regret saving more.

 

Be Careful Before You Use Groupon

January 28, 2015

My boss is a big fan of Groupon.For those of you not familiar with Groupon, it falls into a category of online commerce sometimes called “deal-of-the-day” websites. There are several of these out there, including LivingSocial and Woot, and they all pretty much offer deep discounts on a variety of goods and services.  My brother was the first person I actually knew who used Groupon to buy $25 worth of food at a local restaurant for $15.  Knowing how careful my brother is before he tries things, if he’s used it and it worked, then it must be legitimate. Continue reading “Be Careful Before You Use Groupon”

An Unusual Place to Shop This Time of Year

December 24, 2014

Merry Christmas Eve everyone!  Twas the night before Christmas, and all through the house, not a creature was stirring…except my wife who found herself making an unexpected, last-minute shopping trip because someone forgot to tell her that they needed formal wear for a Christmas concert the next day. While this may cause the average person to recoil in frustration, read on to see how my wife responded under these less-than-ideal circumstances. What she has to say may just be the little Christmas miracle you’ve been looking for this year. Continue reading “An Unusual Place to Shop This Time of Year”

Which Credit Cards Are the Most Rewarding?

December 04, 2014

One of my favorite things this time of year is being able to use credit card reward points to cover most or even all of my holiday shopping. While it obviously doesn’t make sense to buy things just to earn rewards (especially if you can’t pay the card off in full), why not get as much as you can from purchases you’re going to make anyway? In deciding which cards to use, there are a few rules of thumb I like to follow: Continue reading “Which Credit Cards Are the Most Rewarding?”

Think Long Term For The Holidays

November 11, 2014

So the weather is cooling down and immediately we start thinking about all of the yummy holiday food and spending time with our loved ones. After we start basking in the glow of chocolate chip cookies and family, it slowly starts to sink in that this time of the year is expensive. Between traveling, Thanksgiving Day meals, and presents, you and your wallet are exhausted by New Year’s. So what is a gift-giving person to do? Continue reading “Think Long Term For The Holidays”

Do You LUV Your Brand?

September 12, 2014

As someone who travels a lot for work, news from airlines always gets my attention.  Southwest Airlines is doing an overhaul of their logo, their paint jobs on planes, their snack bags…virtually everything associated with their brand.  We see the same images and messages all the time and after a while we stop noticing. I always think of Charlie Brown’s teacher when I hear a friend of mine threaten her kids with some form of punishment (which never happens, they still get ice cream after failing to listen to anything she says).  The same “you’re going to bed early” or “no technology if you don’t do X” or some similar thing is held out as a consequence, yet there are never consequences. In order for her kids to take her seriously or for companies to get us to pay attention again, sometimes a change is required.  Southwest is doing exactly that with their makeover of their logo and branding efforts. Continue reading “Do You LUV Your Brand?”

We’re Not Gonna Take It Anymore! (Part 3)

August 27, 2014

Several weeks ago, I introduced the idea of challenging corporate financial policies that put the company ahead of the customer. I talked about how cancellation policies are not set in stone and how consumers have nothing to lose by requesting a refund of unused services despite what the cancellation policy says. Last week, I continued the discussion by challenging the notion that new-customer deals should only be available to new customers while existing customers should be satisfied with the status quo. For this week’s blog post, I’m taking on the notion that some deals are only good “for a limited time.” Continue reading “We’re Not Gonna Take It Anymore! (Part 3)”

How Buying Clothing is Like Investing

May 29, 2014

Last week, I wrote about how I was able to buy a new set of clothes without breaking the bank. In the process, I realized something else too. It turns out that putting together a wardrobe is a very similar to putting together an investment portfolio. Here are some lessons I learned and how they apply to investing: Continue reading “How Buying Clothing is Like Investing”

How to Dress Well for Less

May 22, 2014

Now that we’re almost halfway through the year, how are those New Year’s resolutions going? If you’re like most people, you probably resolved to lose weight and pay down debt this year. But while there’s no downside to paying down debt, I’ve learned that there is a downside to losing weight. Continue reading “How to Dress Well for Less”

What Bothers Me Most About a New School Year

September 25, 2013

Well, if you have kids like mine — one in high school, one in middle school, and two in elementary school — then you’re probably in the throes of packed lunches, school buses, band practice, homework, driving kids to and from student activities, PTO meetings, and a host of other September rituals.  Many of these don’t bother me, and some are welcomed reminders of why I’m glad I’m not in school anymore. But there are several rituals that always come along this time of year that always get under my skin: clothes shopping, school supply shopping and fund raising events. Continue reading “What Bothers Me Most About a New School Year”

Don’t Believe Everything You See On TV

August 06, 2013

Have you ever been tempted by one of the many infomercials shown on TV for some electronic device or other product that claims to make our life so much easier? Whether it’s the Thigh Master , Snuggie, or MagicJack, it can be yours for a bargain price plus shipping and handling. I’ve typically resisted the temptation to buy due to that added cost of shipping and handling, but when my local department store added an “as seen on TV” section, I couldn’t pass up the chance to buy a few items I’d seen advertised over and over on TV. Continue reading “Don’t Believe Everything You See On TV”

Do You BOGO?

July 16, 2013

Hardcore shoppers know to be on the lookout for BOGO deals, which means you “buy one, get one” free or half price. My latest score under a BOGO deal was at the grocery store, where Purex laundry detergent was buy one, get one free and priced at $3.39. Extreme couponers can make BOGO deals even better by adding a coupon on top of the sale. It had never occurred to me that I could use two coupons, one for each bottle of detergent, even though I was getting one free – until I watched Extreme Couponing on TLC. Since I also had two $1 off coupons for Purex, the net price for TWO bottles of laundry detergent came to only $1.39! Continue reading “Do You BOGO?”

Tips to Keep Your Holidays Debt and Stress Free

November 30, 2012

As I write this, it’s only a month before Christmas and all I’ve seen and heard today are ads about Black Friday & Cyber Monday.  I have to admit that it makes me not want to shop at all this year!  (If you’re on my Christmas list, you might want to read another planner’s blog this week!)  Continue reading “Tips to Keep Your Holidays Debt and Stress Free”