Chasing Prosperity

Getting a Grip on Gift-Giving

noreply@blogger.com (thriftygal) — Thu, 09 Dec 2010 18:39:00 +0000

image by scottchan

'Tis the season - to be jolly and for general merriment. Yes, it's all quite lovely. Everywhere you look, there's a sense of celebration, of giving, and receiving, and of spending.. but something just doesn't feel right.

Somewhere along the line, we've gotten so caught up with the spirit of the season, that we haven't noticed what it all means, or stopped to consider the consequences of our actions. When did 'giving' equate to giving lavish presents, and multiple ones at that? Or giving presents that are demanded? when did spending equate with spending money?

Call me a Grinch, but I feel we are fueling a sense of entitlement in our kids by spoiling them rotten with our gift-giving. Case in point, a friend of mine by her own words, has barely enough money for groceries because of unexpected and extenuating circumstances. Yet, she signed up with a program in which she gives a christmas present to an economically disadvantaged child. A very noble gesture I have to admit. And I'm very proud of her for signing up. But what irks me is that the child gets to ask for what they want, and this kid wanted an ipod. So my friend has to cut down on groceries so that she may gift an ipod to a 9-year-old she does not know. "Does a 9-year-old really need an ipod?" I ask, and I'm told that if everyone else in his/her class has one, then they might need one too.

Now before you go ahead and question my charity, or lack thereof, please note that even though I didn't sign up for the same program as my friend, I did at the beginning of the school year, spend a considerable amount of money on books and supplies for needy kids. In my world, that makes sense because kids do need books, backpacks, pens, pencils, erasers, and even lunch boxes, etc to better themselves. But an ipod I have to say is frivolous, and I'm angry at my friend for enabling this child to expect things from others in order to keep up with the Joneses. This sort of gift-giving in my opinion is what fosters an unrealistic view of finances in children and helps them attain a false sense of entitlement. That kid will now NOT feel the need to earn or save money for his wants, but feel that he can just ask for them. And I don't see how that will help this kid in the long run.

In addition, my poor friend might feel good about her act of charity, but really, how is she better off, when it came out of her grocery budget, and when she is doing without snow boots that she desperately needs this winter??? Before we open up our hearts this holiday season, I think it is imperative that we not confuse the concept of giving with giving beyond our means, and giving into frivolous demands. By all means, give love, give time, and give your best effort. But remember, our children are watching.

Guess who's back?

noreply@blogger.com (thriftygal) — Mon, 19 Apr 2010 05:47:00 +0000

Well I'm back. Yes it has been a while, and you probably thought that I'd given up on blogging, didn't you? I cannot lie, I did contemplate it. So much has happened since my last blog entry that suffice it is to say, blogging was the last thing on my mind. I wish I could write it all down here as a cathartic measure, you know? But 1) it really wouldn't be relevant and 2) I'd have to write a book! So let's just say, I just learned that life does not revolve around money although it does help. If I can pick and choose, I'd be penniless if I could be content.

It's funny how you trudge through the motions of your life, trying to sock away everything you can for the future, that it becomes a routine. A dull, boring, and sometimes toxic routine. And you fail to realize that as important as the future is, so is the present! The present is a present we cannot save for later. The present should be indulged in now, because pretty soon it becomes the past, and you can never get those moments back, and then there's only regret. Yeah, pretty corny and preachy I know, but that's what I learned, and am still learning.

Money is not important. Life is. Love is. Human connections are. Memories are. So live, love, connect and enjoy the memories!

Lessons from the 2010 Winter Olympics

noreply@blogger.com (thriftygal) — Mon, 01 Mar 2010 16:45:00 +0000

If you were like me, you would have spend the last couple of weeks sleepless, watching the Winter Olympics. Every two years the Winter or Summer Olympics comes along and mesmerizes me with mounds and mounds of sheer athleticism and super-human talent. There's something about diverse individuals from nations big and small, coming together for one purpose that is compelling beautiful. However, the Olympics weren't entirely without hiccups either. Among prodigious talent and coveted medals were stories and lessons for those who were looking for them. Some, even related to personal finance.

1) China's Shen and Zhao win figure skating gold.
One of the oldest if not the oldest pair at 31 and 36, Shen and Zhao paired up on the ice 18 years ago. Competing with those half their age in a sport dominated by the young and the agile, they put on an almost error free routine to win the gold. They aptly demonstrated that starting young and persevering will lead to fortunes, no matter how long you have to wait.

2) Canada's Joannie Rochette wins figure skating bronze.
Just 2 days before she skated her short program, Joannie's mother passed away from a heart attack. If she had withdrawn, her country would have understood. But she did not. Overcoming overwhelming grief, she skated a breathtaking short program, and 2 days later performed her personal best free skate routine to put Canada on the podium after 18 long years. She showed the world that when faced with an unanticipated turn of events, keeping your focus on the task at hand will bring you great success.

3) Dutchmen Sven Kramer literally crosses the line.
After Nodar Kumaritashvili's tragic death, this was the most poignant event of the 2010 Olympics for me. The uber-talented speedskater would have set a new Olympic record and won 3 medals if he hadn't been disqualified for listening to his coach and making an illegal lane change. It was definitely not his fault, but the rules are what they are. His gut-wrenching disqualification exemplifies that the journey is as important as the destination - so pay attention.

4) Czech speedskater Martina Sablikova wins 2 golds and a bronze.
Many athletes won multiple medals. So what was special about Sablikova? You only need to look at her to see what's special about her. She defies convention. Whereas other speedskaters have a body type characterized by strong and bulky thighs which help them dart along the ice, Martina looks like a tooth pick at 5'7" and 119 lbs. Yet her speed won her 3 medals. Martina Sablikova proves that when it comes to success, stereotypes can be broken.

5) Canada's Chris Del Bosco loses the Bronze.
Ski-Cross finalist Del Bosco had the bronze in his pocket in this dynamic sport's Olympic debut. Then he made a risky jump for gold (yes gold, not even silver) and crashed spectacularly just before the finish line. Del Bosco later admitted that he wasn't content with a 3rd place finish (leading some to point the finger at Canada's 'Own The Podium' campaign - didn't anyone tell him that bronze was a spot on the podium?) His miss demonstrates that unnecessary risks are always a bad idea.

Readers, can you list other moments from the Olympics from which you identified a life-lesson or one related to personal finance?

I'll leave you with one of my favorite moments of these Olympics - kd lang's awe-inspiring rendition of Hallelujah which you can view by clicking here.

Since the youtube video has been taken down, I've also embedded her performance at the 2005 Juno Awards which I feel has better acoustics anyway. Enjoy!

image by mcadooja

No Longer An Investing Virgin: My foray into the stock market

noreply@blogger.com (thriftygal) — Thu, 18 Feb 2010 08:45:00 +0000

(I apologize for the somewhat sensationalized title. It was inspired by this (unrelated) post at Budgets Are Sexy, which I can't seem to get out of my mind!)

I did it! I finally bought some shares of stock. In previous posts I talked about how my natural aversion to risk held me back from investing in the stock market. But several things lined up recently as if to say it's now or never and so, with sweaty palms and a fluttering heart, I finally took the plunge!

What allowed me to risk my hard earned money: Well, I managed to save up some cash specifically for investing, and a company I was following did a stock split and their shares were now affordable to me. By the end of the day I had gained a whopping $4! Not bad for a newbie right? I know markets are fickle. But I'm in it for the long run so hopefully that was a good omen. Wish me luck!

Check out this old stock market photo (by Bourke-White) circa 1936. Can you believe that was less than a century ago?

In other good news, two of my posts were included in carnivals this week:

* SimplyForties hosting the 'Snowpocalypse Edition' of the Festival of Frugality featured some surreal pictures of the recent snowstorm that debilitated parts of the country and also my post on extending the life of clothes.

* Len Penzo hosting the 'Fiscally Irresponsible TV Characters Edition' of the Carnival of Personal Finance wondered how so many of our beloved characters got away with unrealistically expensive tastes and also had some advice for me on my recent post on 5 Obstacles to Financial Success.

Head on over to their sites and check out the great jobs they did compiling some compelling material. Thanks for including me in your carnivals Mary and Len!

image by Katrina Tulio

Thriftygal's Top Ten Money Tunes

noreply@blogger.com (thriftygal) — Mon, 08 Feb 2010 11:47:00 +0000

Because talking about money all the time can get pretty dull and boring, let's have some fun and listen to some of my favorite money songs! I'll include a brief portion of the lyrics I think is pertinent to money. Without further ado, here's my ten favorites:

1) For the love of Money - O'Jays
Reintroduced to the younger generations as the theme song of 'The Apprentice' (who's star is no stranger to money himself)

Money money money money, money (x6)
Some people got to have it
Some people really need it
Listen to me y'all, do things, do things, do bad things with it
You wanna do things, do things, do things, good things with it

2) She works hard for the Money - Donna Summers

She works hard for the money
So hard for it honey
She works hard for the money
So you better treat her right

3) Money Money Money - ABBA

I work all night, I work all day, to pay the bills I have to pay
Ain't it sad
And still there never seems to be a single penny left for me
That's too bad
In my dreams I have a plan
If I got me a wealthy man
I wouldn't have to work at all, I'd fool around and have a ball
Money, money, money
Must be funny
In the rich man's world

4) Private Dancer - Tina Turner

I'm your private dancer
A dancer for money
I'll do what you want me to do
I'm your private dancer
A dancer for money
And any old music will do...

I want to make a million dollars
I want to live out by the sea...

5) Money (That's what I want) - Beatles
Kind of harsh, but true:

Your lovin' give me a thrill
But your lovin' don't pay my bills.
Now gimme money (that's what I want)
That's what I want (that's what I want)

6) Can't buy me love - Michale Bublé
OK, I know this is originally a Beatles hit, but I like the Michael Bublé version better. Is that sacrilegious?

Say you don't need no diamond rings, and I'll be satisfied
Tell me that you want the kind of things, that money just can't buy
I don't care too much for money
Money can't buy me love

7) Money - Michael Jackson

I'll never betray or deceive you my friend but...
If you show me the cash
Then I will take it
If you tell me to cry
Then I will fake it
If you give me a hand
Then I will shake it
You'll do anything for money...
Anything
Anything
Anything for money

8) Opportunities - Pet Shop Boys
How direct can you get? :

I've got the brains, you've got the looks
Let's make lots of money
You've got the brawn, I've got the brains
Let's make lots of money

9)Mo Money Mo Problems - Notorious B.I.G. (featuring Puff Daddy & Mase)

bag a money much longer than yours
and a team much stronger than yours, violate me
this'll be your day, we don't play
Mess around be D.O.A., be on your way
Cause it ain't enough time here, ain't enough lime here
for you to shine here
deal with many women
but treat dimes fair
and I'm bigger than the city lights
down in Times Square

10) Ka-Ching - Shania Twain

You'd think Shania and ex-husband Mutt Lange wrote this song after the current economic woes, but this single about our excessive consumerist culture debuted in 2003! Boy do I have new respect for her!(although I don't get the symbolism of the three-legged dog)

We live in a greedy little world
that teaches every little boy and girl
To earn as much as they can possibly
then turn around and spend it foolishly

We've created us a credit card mess
We spend the money that we don't possess
Our religion is to go and blow it all
So it's shoppin' every Sunday at the mall

All we ever want is more
A lot more than we had before
So take me to the nearest store

Can you hear it ring
It makes you wanna sing
It's such a beautiful thing--Ka-ching!

When you're broke go and get a loan
Take out another mortgage on your home
Consolidate so you can afford
To go and spend some more when you get bored

Hope you've enjoyed them as much as I do. What's your favorite money tune?

Ridiculously Absurd Business Ventures

noreply@blogger.com (thriftygal) — Thu, 04 Feb 2010 15:14:00 +0000

Excuse me while I vent: I’ve heard of some over-the-top business ideas, but this takes the cake!

Miley Cyrus’s 9-year-old sister Noah is launching a lingerie line for children! I cannot decide which is more disturbing – that a 9-year-old is designing lingerie, or that it’s targeted towards children. This has got to be the most asinine, pervse, inappropriate, irresponsible and exploitative idea for which a parent has given permission. Really! A child has no business in the lingerie business!

Tell me, who is going to benefit from this venture except for kiddie-porn enthusiasts? Which parent in their right mind - except for the Cyruses and the few nutjobs who ~~pimp-out~~ parade their daughters at child pagents – is even going to consider buying lingerie for their prepubscent daughters? Seriously, this line is aimed at children from ages 9 – 14. Does breast tissue even start to develop at 9???? As if the alarming rate of teen pregnencies isn’t enough, we don't need to add tween-pregnencies to the mix!

If this is the world my baby is stepping into, I’m going to have to shield her in a place far far away. Am I just too old fashioned or what is wrong with this picture? (That's Miss Cyrus in her haloween costume to your right) Why does common sense and the innosence of childhood need to be sacrificed for the benefit of ~~notoriety~~ fame and making money?

OK, now that I’ve gotten that off my chest (pun intended!) what other totally absurd business ventures have you heard of that made your blood boil?

5 Obstacles To Financial Success

noreply@blogger.com (thriftygal) — Tue, 02 Feb 2010 08:10:00 +0000

When it comes to obstacles to financial success, many people focus on debt. But debt is just one roadblock on the path to financial success. Other roadblocks are not as tangible. But as with any good plan, it is important to identify all obstacles that could hinder your success, especially if they are subtle. Once you identify which hurdles are setting you back, overcoming them would become a lot simpler:

1) Lack of knowledge/education - You don't need to register for Personal Finance 101 to get familiar with concepts related to money. If you can't pick up a book at the library, the internet is a vast resource you can use. Knowledge = power when it comes to realizing your financial dreams. Setting up this site and interacting with seasoned PF bloggers is one way I'm making sure I learn about personal finance.

2) Lack of motivation - Living paycheck to paycheck or drowning in debt should inspire you to take control of your finances. But sadly it has the opposite effect on some people and they continue on their downward spiral. If getting out of your rut is a problem, picturing why or for whom you're trying to regain financial control will help motivate you. It is also important to come up with a plan on how you will be proceeding step by step towards achieving your financial goals.

3) Lack of time - This is really an excuse. Unless you were born with a silver spoon, everyone needs to put in some measure of time to achieve their dreams. Start off by limiting or getting rid of time killers like TV. Then dedicate an appropriate amount of time towards your goals like learning about finance or a setting up a side-business. I find time to read or draft a post for this site during my daily commute.

4) Lack of role models - This is something I'm struggling with. From the time I can remember, everyone I knew who was employed had a nine-to-five job. Success was defined as getting a raise or promotion or a better paying job. The few in my family who had tried their hand at being self-employed had failed and therefore, being an entrepreneur had a negative connotation for me. Forget about investments - no one I knew invested in the stock market. This single-salary mindset is a huge obstacle I am having a hard time overcoming.

5) Risk aversion or lack of it - I must have been born without the 'risk-taking' gene. I simply loath risk and try to avoid it as much as possible. This is why I am not yet 'prosperous' even though I have no debt. Being risk-averse has its advantages: when everyone else was buying houses via sub-prime loans, we were saving up for a 20% deposit and avoided the negative effects of the recent housing bust. But while it's healthy to an extent, you don't get huge payoffs without taking big risks either. On the other hand, as any gambler can attest, taking on too much risk is detrimental to financial success. Therefore, the goal is to find a healthy medium. My plan to overcome risk aversion is by starting with baby steps. I'll get my feet wet in the stock market with a minimal amount and see where it takes me.

What other obstacles have you found impeding your success? How did you go about overcoming them?

image by technotr

How to extend the life of your clothes

noreply@blogger.com (thriftygal) — Thu, 28 Jan 2010 09:59:00 +0000

If you're like me before I had my financial epiphany, shopping for clothes would have been a frequent activity. While most of those purchases were really 'wants', some could definitely be classified as 'needs'. Why did I need to routinely buy new clothes? It wasn't that I was deliberately hard on them, but as a recovering germophobe - I've been known to partake of very little water in order to avoid public restrooms! - I just washed them too often, causing the colors to fade or the material to shrink or disintegrate in the dryer.

When I resolved to refrain from buying any clothes for the entire year, I had to make a plan to make sure the clothes I had would last me a while. So I investigated methods on preserving your clothes and realized that others could benefit from those findings as well. And it doesn't cost you extra either:

1) Line dry - This might be hard if you're living in an apartment or if you live in a neighborhood with official or unofficial 'no-hanging' rules. But line drying is not only gentle on your clothes, it also uses a free energy source and therefore, minimizes your utility bills. You can even line dry in the winter - just expect it to take longer than usual. If you have no space for a clothes line, a drying rack like the one pictured on the right offers an efficient indoor solution.

2) Prep clothes before washing - Washers and dryers are rough on your clothes. Each wash will cause your colors to fade and increases the chances of snags or pulls from zippers or hooks on other clothes. Minimize the damage by pulling up zippers and fastening hooks and eyelets. Wash anything with fine detailing inside-out. And always air dry sweaters on a flat surface.

3) Read care labels before washing or drying - The colors will run on some items and ruin your lighter colored clothing. Consider washing them separately or by hand. Other items are dry clean only. Personally I try to limit buying stuff labeled 'dryclean only' because while dry cleaning is expensive and a hassle, the chemicals used are also not too good for your health. If you end up dry cleaning, make sure you don't store your clothes in the generic plastic bags from the drycleaner's as they tend to trap in moisture.

4) Wear protective covers where appropriate - Aprons and bibs (for your infants) were invented for a reason. Use them for their intended tasks and you'll have less work later when you don't have to remove that oil splash or marinara stain.

5) Learn to mend pulls and pills - Too much drying can shrink your pants or cause hems to come undone. You could have a tailor re-hem them or you can save the $15-$20 if you can do it yourself - you don't need a sewing machine to do a simple hem. Also, invest in an inexpensive tool like a knit picker or snag-repair needle to fix pulled threads or snags on clothes. Make your sweaters look like new again by removing fabric pills (the fuzzy balls that appear where fabric can rub together) on sweaters, using a gadget called a pill-shaver or a fine toothed comb. Be very gentle if you use the latter. My baby's infant comb multipurposes as a pill-shaver for me.

6) Be gentle on your delicates - Secure hooks and wash underthings in a mesh fabric bag on the gentle cycle. Always air dry even if the label says that it can go in the dryer as the dryer heat can deform the foam on bra cups or cause damage to the elasticity.

Got any other tips on making your clothes last longer? Help me out by sharing them here.

Clothespegs image by tuareg

Fickle Alliances

noreply@blogger.com (thriftygal) — Mon, 25 Jan 2010 19:13:00 +0000

As of this weekend an alliance is hanging by a thread - that would be my relationship with my bank. I had been banking for quite some time with a major bank. Lets call it Bank of Turmeric-a. I had no major problems with this bank except for the dismal interest rate on their money market savings account in which I had parked my very thrifty savings. But something else had been bugging me for a while now.

You see when I signed up with them, they had a promotion going where they'd give both the person referring you and the new customer $25 for signing up with them. That would have been $50 for us considering that I was referred by my husband. And that was quite a bit of money for us when we signed up more than 2 years ago.

What you say? Why am I hung up over $50 from over 2 years ago? Well it's not the dollar amount. I'm stupefied by their usually decent customer service. Right after I signed up, I kept checking in with them (multiple times as I recall) to find out when they'd make those deposits. But each time I was told that it would take some time for this or that reason, and that it would post eventually. Well it never got posted.

Last year with the economy as it was, I remembered the $50 they owed me and called the BofTurmeric-a customer service. After I explained the situation, the guy at the end of the line says that I need to go to one of their banks and have the staff from their premises call them to locate some information. (Why he couldn't call them himself was beyond me!) So I skip lunch and go to my local banking center. The lady I met with carefully goes over my records and say that yes, there was no indication of any such deposit, but that their system had screwed up and deleted some records, so, get this: I need to contact the person who signed me up!

Needless to say, I cannot even remember the gender of the person who signed me up, let alone their name! Were they giving me the runaround or what? I decided enough was enough. I looked around for savings accounts at other banks, but the rates were all kind of stagnant and hopeless.

This was the time I had just started devouring PF blogs and coincidentally I came across a post on Consumerism Commentary about Alternatives to High-Yield Savings Accounts and read about the Move Your Money movement. It was a very interesting concept that advocated moving your money out of big national banks and into community banks. I have to confess that it did not motivate me at that time, but when I read the comments, I noticed a comment about a "reward checking account that paid 4% interest".

Since I had never heard of a "reward checking" concept before, I thought it was a typo and asked for a clarification from that commenter. It was then that Andy Hough of Tight Fisted Miser directed me to a couple of links where I was ultimately able to find a local Bank (right down the street from where I live I might add!) that offered 4.01% APY up to $25000. So after some quick investigation, that's where my savings live these days.

Besides one of the highest APYs today, the benefits of my new reward checking account are pretty enticing:

no minimum daily balance required
no monthly maintenance charges
refunded ATM fees nationwide
one point for every $2 you spend, redeemable for gifts, gift-cards or travel

To maintain a 4.01% APY interest rate, you are required to:

perform at least 12 debit card transactions
receive monthly online statements
access online banking
singing up for a direct deposit or a recurring ACH (automatic withdrawal by a vendor)

Out of these, my only doubt was if I could maintain 12 debit card transactions a month. But hubby has that covered since he buys his lunch every day (yes, not very thrifty of him sadly)

I am very excited to see how much interest we can get by the end of this year. In case your deposit is significantly large, they pay you 0.25% APY for any amount over the $25000 limit. It almost seems too good to be true, doesn't it? So I inquired how they managed to pay that high of an interest rate and was told that it was a combination of not having to spend on paper statements, and revenue from MasterCard due to their high number of debit card transaction requirements.

I don't know if I buy that response entirely. But they assured me that they were FDIC insured up to $250000 until 2013 (and up to $100000 thereafter) and any amount over that is insured by DIF - a private industry-sponsored insurance fund for Massachusetts-chartered savings banks. So that quelled any traces of doubt I had.

Overall I'm pretty pleased with my new bank which will function as a joint expense account for us. I'll probably still keep my checking account at BoTurmeric-a to avoid having to waste my time with ATM refunds. And in the end, I'm glad they didn't deposit the $50 they promised because if it wasn't for their lack of action, I would still be blissfully ignorant about reward checking accounts!

If you'd like to find a local bank with a high interest checking or savings account, check out the following links helpfully provided by Andy Hough of Tight Fisted Miser. Thanks Andy!

www.highyieldcheckingdeals.com

www.checkingfinder.com

Happy banking!

Chance to make an easy $75

noreply@blogger.com (thriftygal) — Fri, 22 Jan 2010 08:57:00 +0000

If you live in the Boston area and can spare 3 hours of your time, you could participate in a security screening study for which you would be compensated $75. The #1 requirement though, is that you have to have been born in India. Being of Indian origin will not suffice.

I have no affiliation with the company conducting this study, so please save your comments if you are in any way offended by the requirements. When I saw this ad on the Metro, I immediately thought of those in-between jobs and the many students living in Boston who could take advantage of this opportunity. You could consider it a service to help strengthen the current airport security screening systems, which in light of the recent Christmas day bombing debacle, needs all the help it can get.

If interested, the contact number is: 617-308-9931

Disclaimer: I am not affiliated with this study, nor do I get any referral fees from promoting it.

Girls' Wasteful Ways

noreply@blogger.com (thriftygal) — Wed, 20 Jan 2010 08:17:00 +0000

MD over at Studenomics - a personal finance blog geared towards students - was kind enough to let me do a guest post yesterday. In response to one of his recent posts titled '5 Ways Guys Waste Money', I wrote about 5 Ways Girls Waste Money.

Check out his site and see if I've nailed the major female budget-busters.

Thanks for the opportunity MD!

Realigning your financial dreams

noreply@blogger.com (thriftygal) — Tue, 19 Jan 2010 12:52:00 +0000

Owning a home is the quintessential example of having made it today. Or it was before the recent housing bust. Once you have a job with a steady income everyone I know purchased a house almost as if by clockwork. So did a friend of mine. An engineer by trade with a wife working in IT, he had bought a house in a quiet subdivision in an up and coming neighborhood in Michigan (not Detroit). The only way he could see himself going was up.

Fast forward almost 5 years and he's laid off with 3 kids and a mortgage to support. Fortunately for him, his wife makes a decent salary and he also dabbled in some side businesses which were seeing some profits. But his house on the other hand was losing its value. Apparently what he had bought for $220000 had depreciated to $140000.

I talked to my friend over the weekend. He happens to be a tad bit older than me, and he said that if he could offer any advice he'd tell me not to buy a house. Don't buy a house? That was contradictory to everything I had heard before. Wasn't it the first milestone on your path to financial success? Wasn't it supposed to be the 'smart thing to do'? Others my age were buying fixer uppers with the intention of making a profit down the line. But now this guy was telling me to hold on to my savings and invest it somewhere else. What ever happened to the American dream?

This conversation made me re-evaluate my goals. For a while now, I had felt queasy about buying a house, seeing the 'foreclosure' signs mushrooming everywhere. The only thing stopping us from buying was our lack of a decent downpayment. And now I was getting advice not to "waste my money on a house.

What do you think? Is it still financially sensible to buy a house as an investment? Would the housing market rebound any time soon?

As for my friend, he's realigned his goals alright. He's fed up with everything - the house, the rat race, the scarcity of jobs, etc. So he's packing up his wife and kids and moving to Canada to focus on his businesses!

Resolutions: Good For My Wallet; Bad For The Economy

noreply@blogger.com (thriftygal) — Thu, 14 Jan 2010 04:12:00 +0000

One of my resolutions at the beginning of the year was to limit my dining out costs by brown bagging my meals. I had a good reason for making that resolution. I used to purchase both breakfast and lunch at my work cafeteria every day. It wasn't anything fancy - just oatmeal for breakfast and a sandwich or salad for lunch.

Since resolving to brownbag my breakfasts and lunches at least 3 times a week, I am proud to say that I've stuck to it, even though it's only been 2 weeks so far. (And I only managed to set off the smoke alarm once!) Anyway, I was too busy to cook anything last night after Munchkin refused to go to sleep until 11:00pm (yes you read that right!) So I gave myself permission to buy myself lunch today. Well get this: as I was buying my sandwich the guy at the register who knows me by name - that's how often I used to frequent the cafeteria - says that they miss me at breakfast now!!! I must have caused quite a dent in their profits :)

7 Ways We Throw Money Away by Not Paying Attention

noreply@blogger.com (thriftygal) — Mon, 11 Jan 2010 13:10:00 +0000

Most of us are so busy being frugal that we don't always notice how we throw money down the drain.While food waste is a well known example, some aren't that obvious. Although they won't cause a dent in your retirement fund, refraining from doing these small steps can sometimes add up to significant savings.

1) Not utilizing what you've already paid for
Unused gym memberships are all too common today. Likewise, there are other memberships and subscriptions that you could consider terminating if you are not directly benefiting from them. Another 'purchase' that often slips through the cracks are the routine checkups with our doctor/dentist/optician. Although you won't have to pay for them other than a potential copay (plus the insurance premiums you've already paid), missing them could potentially cost an arm and a leg if something that could have been nipped in the bud were to significantly alter your health down the line.

2) Not using up funds in your flexible spending account/not planning ahead to cover all expenses.
Many employers offer the benefit of a flexible spending account to salaried employees. It is basically an account funded monthly by pretax dollars based on a predetermined total you set.You use it to cover expenses that are not covered by your insurance such as over-the-counter medications or personal expenses like eyeglasses and contact lens solution. The catch is that you don't end up getting back any funds you haven't used by the end of the year. So the key is to find a balance between estimating the predetermined amount to cover all expenses while not setting aside too much. Worst case, you could always stock up on nonperishable items that you use routinely.

3) Not mailing out rebates
Enough said!

4) Buying things just because they are on clearance or are a 'good deal'
Too often I have fallen victim to the "X % off" sings at stores only to come home and see things like pulled threads, missing buttons and lipstick/makeup stains. Returning such items shouldn't be a problem if you notice the snag before you wear it, but most of the best deals are final sale. In such cases, look for replacement buttons or threads and do your best. Sometimes your efforts however will be in vain. The simplest solution is to take the time to inspect everything before buying or not buy what you don't need just because it's a good deal.

5) Late fees
As I've mentioned before, I missed my credit card payment on quite a few occasions. Yes that wasn't very responsible of me. But since I almost always pay my balance in full, in every one of those times but the first, I asked for and received a late fee waiver. Now not to push my luck, I've set up email alerts.

6) Not shopping around for better rates
We all do it. We do our research and aim to buy things that give us the most bang for our buck. But once we have it we get comfortable with the status quo until it's time to renew or replace it. For example, cell phone/internet plans or notoriously cheaper for new customers. So instead of re-signing with your current provider, you might be able to snag better deals by switching. Insurance is another example where you can shop for a better rate at any time. Some employers offer reduced rates via affiliated programs, and you can always investigate for missed deductions like the safe driver discount. Coincidentally, Wojciech Kulicki of the Fiscal Fizzle mentions a rate reduction for a new baby.

7) Brand loyalty
Brand loyalty is a funny thing. For no good reason, we pledge allegiance to a particular brand and never stop to consider the options. Maybe the brand we're addicted to was economical to start with, but that might not be the case all the time. New and competing brands enter the market all the time, so it's wise to keep your eyes open. For instance, When my baby was born, I got a ton of coupons for baby formula from competing vendors. Being a first time parent, I asked my pediatrician for a recommendation and stuck with that brand. Much later, I happened to compare the ingredients on the two formulas, and noticed that they were very similar. But by that time it was too late to use the $7 off coupons for a $17 can of formula!

A Confession

noreply@blogger.com (thriftygal) — Fri, 08 Jan 2010 09:26:00 +0000

I need to make a confession. My thriftiness is being challenged daily. Sometimes it is a struggle to stay focused and I have to defend my frugal ways. I have a critic. His name is Mr. thriftygal (I would have called him 'thriftyguy', but that would have been a misnomer!) He is not a spendthrift, but he will readily pay a premium for what he defines as 'less hassle'. He'd rather buy something right then and there than shop around or get creative. And sometimes it drives me nuts!

I guess it boils down to the way he was raised. None of his family is wasteful, but they like to enjoy life by spending on not unnecessary, yet top quality stuff. I get envious when I read about the frugal spouses of other bloggers, but I'm learning to see him as giving me balance. I do tend to get carried away sometimes with my new preoccupation!

Do you feel the need to defend your frugality? Do you have a Mr. thriftygal equivalent? How do you deal with them?

2010 Resolutions

noreply@blogger.com (thriftygal) — Mon, 04 Jan 2010 07:03:00 +0000

I've always been a procrastinator. For instance, I meant to start this blog way back in 2008. It's the same with resolutions. But better late than never, right? So here they are:

1) Stay more organized by scheduling my day/week - I'm terrible at this. In the past, I've missed credit card payments not due to a lack of funds in the bank, but because I forgot! (No more of that- I've set up email alerts) Similarly I'd make lists of things I needed to get done, but always ended up carrying some of them over to the next day. When I was a child, I remember finishing all my homework by following a schedule. So that is what will be happening at the beginning of each day this year, even if it makes me feel a little juvenile.

2) Keep a better home - So I'm no Martha Stewart. Really! Hopefully by improving my organizational skills, I'll blossom into a domestic diva!

3) Make a budget - I've been spending way too much lately and haven't kept track of any of it. Breakfasts, lunches, groceries, clothes, ... You name it, I've most likely bought way too many of it way too many times. So this year, I'm going to track my expenses and stick to a budget:

      Groceries - $100/week (might have to revise after a couple of weeks' worth of trials)
      Breakfasts and lunches - brown bag 3 times a week (not x5/week as I'm trying to be realistic here)
      Clothing - inspired by FB (from Fabulously Broke in the City) I'm imposing a wardrobe ban on myself but keeping $150 for emergencies
      Insurance - We currently pay $1550 so definitely shopping around for a cheaper rate.
      Travel - $7000/year
      Entertainment - $50/week
      Personal care - $30/month
      Home maintenance (light bulbs, laundry detergent, etc) - $30/month
$300/month - for my folks back home
      Medical and Baby - not on budget
Miscellaneous (gas, subway pass, etc) - $50/week

Not counting the travel and insurance (which has already been paid), this would give us a monthly budget of $1160. I'll be posting how we do every couple of months.

4) Something related to budgeting is planning my meals at the beginning of each week. I've still got to figure the ins and outs of this as we normally do the grocery shopping on the weekends and if I were to foray into couponing using the Sunday paper, I'd have to postpone the shopping. That's hard given our schedules.

5) Have at least 2 alternative sources of income.

6) Lose my belly permanently - I usually resolve to lose 10 lbs at the beginning of each year as that's how much it takes to lose the excess fat around my waist. Ive succeeded only once so far, but come close most of the time only to relapse and gain it back. This year instead of focusing on the numbers on the scale, I'm going to try to eat more veggies and less sugary stuff!!! and exercise 3 times a week.

7) Last but not least, and inspired by the Financial Samurai, I'll be seeking the good in others.

Wish me luck with my lucky seven!

Happy New Year!

noreply@blogger.com (thriftygal) — Fri, 01 Jan 2010 18:43:00 +0000

Hope you fulfill your financial goals for this year!!!

Year end stats

noreply@blogger.com (thriftygal) — Thu, 31 Dec 2009 07:42:00 +0000

I don't have a year-end breakdown of my expenses because I never tracked them. Big mistake I know! But I do have a savings account where we managed to accumulate 40% of our take home pay this year. That figure is inflated because neither of us contributed to a retirement savings plan. Yes that was another big mistake, but neither of us were eligible to participate as we were both newly hired in 2008.

According to the US Department of Commerce, the personal savings rate for 2009 is around 4.6 (averaging the monthly figures) So I'm quite happy with what we managed, but we could have saved more. Over the next year, I'll be looking for ways to trim our expenses while investigating alternative income sources. From what I've read on other blogs, it's a good idea to have specific goals in those areas. But I haven't yet decided how much I'll cut as I'm kind of new to the game. I do know that my wardrobe budget will get slashed, as well as my eating-out budget. I'll also look into at least 2 alternative sources of income. (Stay tuned if you're curious...) My goal for 2010 is to at least maintain my current savings rate.

What do you think? Is 40% a good number for a PF newbie? How much have you saved this year? What are your savings goals for 2010?

My first post!

noreply@blogger.com (thriftygal) — Tue, 29 Dec 2009 06:06:00 +0000

I did not intend this to be my first post. I wanted to begin my brand spankin' blog by posting something catchy and witty and more finance oriented. And definitely more upbeat. But good intentions don't always materialize...

This morning, our car got stolen. It was a 2009 model purchased at the end of last year and paid for entirely with cash. Cash we had saved up for a long time in a savings account that was thereafter depleted. It also contained a car seat, 2 strollers and a GPS system.

Panic and chaos ensued. We determined that the theft occurred during a 45 minute window between the time I left for work and when hubby discovered it missing. I was already at work when I got the news and needless to say that was the end of any productivity for that work day. After many phone calls, a police report and in insurance claim later, the police called and let us know that our car was mercifully found over in the next town.

What will this whole incident cost us?
* $200+ towing fee

* More $ to repair damage to a side mirror and hubcap (actual amount to be determined later, but at most we will end up paying the $500 deductible)

* An increase in our insurance premium

* $200 -$400 to replace stolen GPS

* $10 to replace stolen license plate

* A lot of stress

So in the grand scheme of things this was just a scratch on the surface (pun intended), although it has shaken us badly. If it hadn't been found so soon, we would have had to pay for a stroller and a car seat as well as a rental or alternate transportation because even though the insurance policy would have partially covered a rental, that wouldn't have kicked in until 48 hours after the claim was made. And in the event our car was never found, I don't know how much of the original purchase price we would have recovered through our comprehensive coverage.

It is 2am and I'm still up (see last asterix above) making sure that our car is still there, parked in it's regular spot. Hopefully sharing this experience will have a cathartic effect on me and I'll be able to catch some Zs.

What did I learn and can share with you from this ordeal?

* ALWAYS carry comprehensive coverage no matter how beat up your clunker is because you won't get any money back without it.

* Never assume your neighborhood is safe because an intruder does not have to be from your neighborhood to steal your belongings.

* Report a theft as soon as possible because the likelihood of finding your car increases if the thieving lowlifes haven't driven it out of state already.

* Put identification markers in or on the car, such as a small yet conspicuous bumper sticker that will help identify your car in the event your tags are removed or changed. (It doesn't have to be big or wordy - ours just contained 2 letters)

* Never leave mail or other documents containing personal information which the thieves can then use to steal your identity.

* Invest in a theft deterrence and/or recovery system if you can afford it (and especially if you paid your hard earned cash for your car)

* Have an emergency fund of about $2k to cover the incidental expenses while you wait for the insurance to kick in.

* Last but not least, don't invest all your hard earned cash on one single item and certainly don't pay for it all with cash if you won't have a monetary cushion left after that purchase. (And it seemed such a financially smart thing to do at that time!)

Edmunds.com has these tips and auto-theft.info has even more tips on how to burglar-proof your vehicle:

Got any other tips on preventing auto-theft? Have similar sob stories you'd want to share? I'm all ears!