Well Heeled Blog

The Beast That Is Student Loan Debt

WellHeeled — Tue, 29 May 2012 14:00:45 +0000

There’s a big $1-trillion dollar elephant (or, beast, depending on your perspective) in the room.

Sometime in the past months, student loans became the biggest non-mortgage consumer debt out there – bigger than credit card debt or auto debt. New York Times recently published an article headlined “A Generation Hobbled by the Soaring Cost of College.” An ABC News segment reported that some parents are delaying retirement to repay their kids’ student loan debt. Most of these articles focus on undergraduate debt, but the cost of graduate education has also skyrocketed. I didn’t realize how much until I talked to a mentor who graduated from the same business school I will be attending. His tuition in 2003 was half of mine. Disregarding the impact of inflation, tuition increased by 100% in 10 years. Ouch.

Then I received my student loan letter, which details what I have been approved for for the 2012-2013 school year:

$20,500 in Federal Stafford Unsubsidized Loan, with a 1% origination fee and a 6.8% fixed interest rate.
$44,000 in Federal Direct PLUS loan, which has a whopping 4% origination fee and a 7.9% fixed interest rate.
That’s almost $65,000 for ONE year! And I even got a small scholarship. If you had to pay everything out of pocket, cost of attendance would be somewhere in the high-$70,000 to low-$80,000 range.
With both loans, interest would begin accruing on Day 1 of disbursement (i.e. when I receive the loans).

Even though I’m planning to rely on savings for this year, morbid curiosity got the best of me and I plugged in the numbers into the FinAid loan calculator. For the Stafford Loan, borrowing $40,500 means that I would have to pay $476.00 per month for 10 years. I would have paid $57,191.20 in total and $16,191.20 of that would have been purely interest. The Plus Loan’s higher rates mean my monthly payment is $1,102.51 ($132,300.47 over 10 years, with $44,300.47 going toward interest).

This means that if I took out all the loans I am able to, I’d be paying over $1,500 per month for 10 years. By the end of the decade, I would have paid $60,000 in interest.

That’s a sobering, sobering reality check.

Truth be told, without the personal finance blogosphere, I think I would have been much more sanguine about student loans. After all, almost every recent graduate – law, medicine, business – I know have them. We are all going to make enough to service those loans. We are all going to be fine. Or so the thought goes. A few years back I thought that I’d be satisfied if I can graduate with under $80,000 in loans. Then I crunched some numbers, drank the PF kool-aid, and thought, why the h-e-l-l am I taking out ONE penny more of debt than I have to? My “comfortable number” moved down to $50,000, and now, to $10,000, and maybe even to a hopeful number of $0. I love my money too much to give it all away to Uncle Stafford or Auntie PLUS!

In fact, a Harvard MBA just paid of $90,000 of his student loans in less than a year. I’ve been following his blog since the beginning and it has definitely inspired me to not only pay off my debt sooner, but also to minimize the loans I’d have to take out in the first place.

Are you hobbled by student loan debt? Is it from college or graduate school?

Blog Sale, Blog Sale

WellHeeled — Sat, 26 May 2012 20:20:49 +0000

Planning a cross-country move has made me realize that 1. I cannot bring all of my wardobe with me, and 2. I don’t wear half the clothes in the my closet.

Following in the footsteps of other personal finance bloggers, I’m having a little blog sale. So please let me know if you see something you like! If you are a size 00-2 / petite, you’ll see lots of things you like (I hope!). Below is a sneak peak of what’s available on the Blog Clothes Sale page, so give it a look.

Blog Clothes Sale: Dresses, Jackets, & Shoes

How Brides Can Help Their Bridesmaids Keep Costs Down

WellHeeled — Thu, 24 May 2012 13:45:00 +0000

Over 75% of weddings occur between May and November, so we are in the thick of wedding season. Everyone knows how expensive weddings can be for brides and grooms – the “weddings cost an average of $27,000″ is seen in almost every article I read. But weddings are also pricey events for the bridal party. Bridesmaids often have to foot the bill for bachelorette parties, bridal showers, buy their dresses and shoes, and of course, pay the expense of traveling to the wedding itself. According to this infographic from Mint, it costs almost $1,700 to be a bridesmaid. Yikes!

Several personal finance blogs (Tie the Money Knot, Free Money Finance) and news sites (Consumerist article from Phil Villarreal, the Boston Globe) and even wedding blogs have already talked about this issue.

I have never been a bridesmaid, but I am going to be a bride very soon. So I thought I’d give my perspective on how I am helping to make costs manageable for my bridal party.

I wanted to make sure that standing up with me at the ceremony won’t result in financial burden on the ladies I love and cherish. Even though my maid of honor and my bridesmaid are both successful professionals, I wouldn’t feel comfortable asking them to spend a lot – I suppose I am trying to put myself into their shoes. Even though I would LOVE to be a bridesmaid to the important friends in my life, financial issues are very real. I know I would appreciate it if my friend did her best to manage bridesmaid costs, and so that’s what I’m trying to do. While these tips might not work for every bride (and if a bridal party is filled with practicing surgeons, Fortune 500 executives, and hedge fund analysts, these tips probably aren’t necessary), here is how this one bride – me - is helping her bridesmaid not. go. broke.

1. Let your bridesmaids choose their own dresses.

I gave my bridesmaids a general guideline (dresses in tones of dusty rose, mauve, or plum, a not too shiny fabric) and free rein to pick something that fits their budget and flatters their figure. My maid of honor purchased a dress for $25 on sale, while my bridesmaid got a $135 dress off eBay. It’s a running joke that the bride will hold up a $200 orange monstrousity with a big bow across the behind and say “but you can wear it again!” Suffice it to say, I did not want to be that bride. In this case, if my bridesmaids can’t wear their own dresses again, well, that’s their own darn fault!

2. Pay for bridesmaid dresses, or pay for the balance over a certain cost.

Some bridal forums say that bridesmaid dresses under $150 are budget-friendly, while others put the number at $200 or $250. But if one of your bridesmaids is a struggling student, even $50 might be too high. Even though in the U.S. it’s not traditionally expected for the bride to pay for dresses, it would be a very nice gesture. If a bride has her heart set on a $200 or $300 dress, she can offer to pay for half that cost and have her bridesmaids kick in the other half. If I haven’t gone with Option 1, I would’ve paid for my bridesmaids’ dresses.

3. Cut out the “extras” or pay for those extras yourself.

What do I mean by extras? Things like like professional hair, makeup, nails, buying new shoes, jewelry, etc., can add up very quickly. In my case, I assume my bridesmaids will beautify themselves by themselves and will wear shoes that they like. The plus side is that this is another thing I don’t have to worry about. If you do want to have everyone professionally made up and wear matching shoes or jewelry, it’s courtesy to pay for those extras.

4. Have reasonable requests for bachelorette parties and bridal showers.

If you know your bridemaids can’t afford to fly to Bora Bora and sit by the beach for a long weekend, well, don’t ask that of them. On a related note, don’t be too bummed if an out-of-town bridesmaid can’t make a particular event. Everyone has their own lives, I know that while my wedding is important to my bridesmaids, it’s certainly not the ONLY claim on their minds or wallets. (My bridal shower was an afternoon tea held at my future sister-in-law’s place, and it’s literally 100% better than anything we could’ve booked in a tea room. If only for the fact that it ran for 5 hours and no one threatened to kick us out).

5. Be appreciative.

Say “please” and “thank you.” Give a thoughtful gift. Acknowledge their time and energy. This doesn’t have much to do with dollars, but it’s got every thing to do with sense. (See what I did there? It’s okay. You can laugh. Or groan).

Do you guys have any other tips to add on how brides can help their ladies keep costs down? And if you have been a bridesmaid, how much did the honor cost you?

Copyright 2010 How Brides Can Help Their Bridesmaids Keep Costs Down is a post from Well Heeled Blog - Personal Finance + Savvy Living = Save for Tomorrow, Enjoy Today. This feed is for non-commercial purposes only.

First Time as AirBnB Guest: a Review

WellHeeled — Wed, 23 May 2012 14:00:56 +0000

We spent three nights at an AirBnB house for our visit to Boston. It was our first stay via AirBnB, and so I wasn’t quite sure what to expect…

What is AirBnB

AirBnB is a leading member among the rise of “alternative accomodations” – alternative to traditional hotels and bed & breakfasts. Other members of the space include VRBO – Vacation Rentals By Owner, Homeaway, and Roomrama. AirBnB helps connect homeowners who rent out a room in their house, or their entire house or apartment with travelers who are looking for a different, and many times, cheaper, experience than a hotel would provide. It’s been around since 2008 and have generally received good reviews in the press (but for an example of how things can go VERY WRONG, see here).

To use AirBnB, you fill out a profile which can be as detailed or as vague as you’d like and then you search for vacancies in your destination with your dates. Guests review the properties after their stay, and hosts review the guests as well. Now, MOST of the reviews I’ve read on the site are overwhelmingly positive. I think this has to do with the fact that most hosts try to do a good job, but that it’s also awkward to give very negative reviews when you know you will be reviewed in return.

You pay AirBnB via credit card, and the payment is released to the hosts after you check out. This, the thought goes, provides some incentive for hosts to keep their word and provide at good service.

Our Experience

We actually took a bit of a risk, as we booked our stay with a new listing that had only one prior – but positive – review. I suppose our hosts took a risk as well, given that we were brand-new members and haven’t been reviewed before. Fortunately, it turned out very well. For our 3 nights stay in the heart of Cambridge, we paid $314 for a spacious room with a shared bath. This price includes the AirBnB booking fee. Because we were coming into Boston during graduation season, the cheapest hotel we could find would cost $441 for the same dates. Even with a $25 cancellation fee – I booked the hostel before I searched on AirBnB – we saved $100 on our lodging. And that was enough for a nice meal at Lineage in Coolidge Corner and a canoe ride in Concord!

We had our own key to the front door and could come and go as we please. The host was very ameable and we chatted a couple of times, but there was no pressure to have a long conversation. The kitchen was open for our use, but we didn’t really take advantage of that. If you like to cook during vacations, though, having kitchen access would be a huge plus.

Things to keep in mind:

The most important tip I have would be to do some research on exactly what kind of location the house/apartment is in. A place that is listed as “just 15 minutes from the beach” might take you an hour to drive under Los Angeles traffic conditions, and a room that is advertised as “only 5 miles from city center” might be in a bad part of town. Do your due diligence. Fortunately, I had a friend in Boston who vetted my AirBnB place, so that was really helpful.
You are staying in someone’s home, and that experience can be very different from staying in a hotel. Our house had far more charm and space than any hotel we can book for the same price, but it also came with its set of quirks. Very noisy wood floors, a tiny sink, a bedroom door that didn’t quite lock, etc. None of these things detracted much from our experience, but just know that you have to be much more open to adjusting to different things to have a good experience with AirBnB.
Hosts can also institute a cleaning fee – typically $25-$100 – and a security deposit – I’ve seen up to $500! I typically avoid properties with high cleaning fees or security deposits above $100 because that seems to me a way of artificially deflating their list price. According to AirBnB, “we’ll automatically authorize the guest’s credit card for the deposit 24 hours prior to check-in. We release it back to the guest 48 hours after the checkout date, if no damages are reported by the host.”

We didn’t have to contact AirBnB for anything during our stay, but I do appreciate the fact that the company has 24/7 support. If something goes wrong, you have somebody to reach out to.

Would I use AirBnB again?

Yes, I would. In fact… we had such a good experience with AirBnB that we booked a room through them for our wedding weekend. Our room cost $220 for 2 nights, while all the hotels in the area cost $180+ per night. The savings can be quite remarkable. There are things that I will miss about a hotel (which is why we decided to do luxury hotel all the way for our honeymoon), but I was very happy with AirBnB.

A Long Weekend in Boston: What I Spent

WellHeeled — Tue, 22 May 2012 14:13:32 +0000

I dropped off the face of the internets for the past week because… I have been enjoying a little pre-wedding vacation in Boston! If every season could be like May or September in Boston, I would move there in a heartbeat, insane rents be dammed. For now, though, CB and I are enjoying time as tourists in the gorgeous Spring weather. We had a very fun, very full three-and-a-half days, and we didn’t really keep a budget (oops). The accounting waited til we got home…

Cost of Boston Trip

Flights on Virgin America: $680
Local transportation: $112 – we both had Charlie Cards and went everything on the T. For our day trips, we took the commuter rail to Salem and Concord.
Snacks & water: $18 – including a $3 bag of Pop Chips on the flight.
Food: $251 – $60 bar tab at Lineage, $8 Boston Cream Pie at the Omni Parker House, $3/slice pizza and everything in between.
Entertainment & tours: $118 - we purchased 2 tickets to Museum of Science ($54), a Salem history tour ($32), canoe rental in Concord ($14), and admission to the Louisa May Alcott house ($18).
Hotel: $314 – Boston isn’t exactly a poster child for affordable accomodations, so we decided to try out AirBnB for the first time. A review is going up this week.

We spent a grand total of $1,487, or an average of $212.43 per person, per day.

It appears that our budget came in line with our previous Boston trips, and in fact our food costs were a $100 lower than what we had spent before, even though we love eating out on vacations. Our secret? Have a mid-afternoon or early evening snack at the bar of some ritzy place (to take in the atmosphere!), but then get a late-night dinner at local favorite or hole-in-the-wall. This plan worked out wonderfully. On Friday, for example, we met with a couple of friends for drinks, appetizers, and dessert at the Omni Parker House in Beacon Hill ($30). After 3 hours, we ambled over to tacos at Felipe’s Taqueria in Harvard Square ($9). We could’ve NEVER eaten a dinner at Omni Parker House for $40 for the two of us, but because we had food at the bar instead of a full meal, we got to have the best of both worlds.

Buying a Property, US Vs UK

WellHeeled — Sun, 20 May 2012 14:59:41 +0000

Submitted by a guest contributor

The U.S. and the UK property buying process have many similarities. Both involve land surveyors, red tape and legal professionals. How well your sale works out and how smoothly it goes depends, in part, on your knowledge of the differences in real estate buying in both countries.

Title

Title is the chain of ownership to the property. Your title must be cleared during the buying process so you don’t run into problems later, such as an undisclosed owner.

Title systems in the U.S. vary by state. Some states use a chain of filed deeds, sometimes referred to as “abstract,” with title professionals researching the property. Others use the Torrens system. As in the UK, the Torrens system involves the registration of land with a central authority.

If you’re buying in the U.S. in an abstract state, the process may take much longer than you’d expect. Since the land isn’t registered, a title company must document the ownership chain by going through land records. You won’t be able to close the sale until the title is cleared.

Buying unregistered land in the UK presents a similar problem. Expect delays, especially if there’s a dispute in the title. You’ll have to get the property registered before you can complete the deal in most cases.

Taxes

Taxes on rental property income and property ownership differ greatly in the U.S. and the UK. Both have individual tax systems you’ll need to learn. In the U.S., for example, you can expect to pay taxes when you buy the property and possibly each year to the federal, state and local government.

Consider speaking to a tax adviser before buying property in the U.S. or the UK so you know what to expect and how much you’ll be expected to pay. Not paying taxes can lead to the loss of your property.

Restrictions

A key consideration if you’re buying in the U.S. is any foreign occupancy restrictions. While not a significant trend in the UK, some U.S. states have limits on how long a foreign owner can stay in a property each year.

Rentals

Known as buy to let in the UK and renting in the U.S., if you’re buying a property to rent it out continuously or on occasion, you’ll have extra homework to do. Local tax laws for rentals, for example, differ by state in the U.S, as opposed to the more streamlined standards in the UK.

Resort areas in the U.S. often have extra fees beyond taxes and local charges. Get all fees in writing before buying. Don’t forget to hire a property management company if you’re renting out your property for part of the year.

In both countries, getting a buy to let mortgage may be more difficult. Shop around, such as looking at buy to let mortgages with moneysupermarket before settling on a loan. Compare interest rates so you get the best offer.

Yakezie Carnival: My Momma Told Me Edition

WellHeeled — Sun, 13 May 2012 23:36:01 +0000

On a sunny morning in middle of May (Steve Zussino @ Grocery Alerts)
A mother goose (Amanda L Grossman @ Frugal Confessions) gathers her gooselings around
“Listen carefully to what I have to say,
Even better, here, write the keywords down” (Jon Rhodes @ Affiliate Tips)

“Education is important, but you can cut college costs (Dr. Dean @ The Millionaire Nurse Blog)
And for a higher income, a college is not a must (Sean @ One Smart Dollar)
The economy is sucky, but you can still find a job (Shilpan @ Street Smart Finance)
Listen to my career advice and trust (Jeremy @ Modest Money)

Every job teaches you something new (MMD @ MyMoneyDesign)
Here are 3 O’s of Success (KrantCents) for you to read
You can reach an income level you consider rich (Eddie @ Finance Fox)
As long as my advice you will heed

When you get a credit card (SB @ Finance Product Reviews) look for something good (Timothy @ Wealth Artisan)
Avoid consumer debt and pay cash instead (KT @ Personal Finance Journey)
You can reward yourself with some luxury (Jen @ Master the Art of Saving)
But don’t let lifestyle inflation go to your head! (Teacher Man @ My University Money)

When it comes to investing (J Wayne @ All Things Finance) you should know
There are risks in every go (SB @ One Cent at a Time)
Learn from the best like Warren Buffett (J.P. @ Novel Investor)
Establish a good allocation of asset (YFS @Your Finances Simplified)

Retiring early is hard to do (Ryan @ Early Retirement Investments)
future inflation rates can go up or down (Luke @ Learn Bonds)
S&P 500 Return Calculator (PK @ Don’t Quit Your Day Job)

Lay many nest eggs, mother goose continued
Have a few rental nest eggs (Lance @ Money Life & More) set as well
Don’t get caught up in investing fads (Teacher Man @ Young And Thrifty)
Dodge investment scams (Tushar @ Start Investing Money) from those with a scheme to sell

When you meet that one very special someone (Michelle @ See Debt Run)
And your heart suddenly go pitter patter
Spend spend some money but don’t let the pursestrings fall too loose (Everything Finance @ Everything Finance Blog)
Don’t serve your finances up on a wedding platter (Daniel @ Sweating the Big Stuff)

Copyright 2010 Yakezie Carnival: My Momma Told Me Edition is a post from Well Heeled Blog - Personal Finance + Savvy Living = Save for Tomorrow, Enjoy Today. This feed is for non-commercial purposes only.

How to Get a Bad Credit Loan FAST – Even When Your Credit Is Terrible

WellHeeled — Sat, 12 May 2012 16:00:08 +0000

This post is sponsored.

People with terrible credit can still find a loan to cover unexpected expenses. Lenders have become more willing to extend loans to people with bad credit ratings. However, the individual can expect to pay more for the loan. The types of loans may differ for each individual depending on his or her financial situation. An individual who has filed for bankruptcy will not be offered the same type of loan as someone who has not filed bankruptcy. Therefore, the options differ according to the individual’s credit history.

Types of Loans Available for Individuals with Bad Credit

Unsecured personal loans are available with higher interest rates since these do not require any collateral to secure the loan.

Bad credit personal loans offer access to fast cash when it is needed. An individual can go to www.badcreditloans.com to apply for this type of loan.

A personal loan for a limited amount will usually be available to individuals with poor credit. Some institutions will not require a credit check for loans of small amounts, and the money will be available quickly.

Individuals with bad credit should borrow the lowest amount needed and pay back extra each month over the minimum payment to prevent paying more money in fees and interest. It is better for the individual to pay back the loan as quickly as possible.

Tips to Help Individuals with Terrible Credit Obtain Loans

Individuals should be aware of their credit scores. A credit report should be obtained and checked for accuracy by the individual before applying for a loan. The report will allow the individual to know if something has been misreported, which can affect their credit rating. Knowing the credit score can also help an individual know which type of loan will be best for him or her.

Before applying for a loan at an establishment, consider asking a family member or friend to extend a loan. This could save money on the high interest rates as well as the time it takes to apply and wait for approval from a lending institution. Just be sure to pay back the money to the family member or friend with interest, or the relationship could be damaged.

Individuals should check with their personal bank or credit union since these are two of the best places for individuals with bad credit to obtain personal loans. The personal bank is more willing to work with an individual who has money in their establishment since the bank is familiar with the individual’s banking standards. However, the bank does not have to loan the money just because an individual has an account with them, but many times the bank will be more lenient in their lending practices for these individuals. A credit union that is offered through a job will be more agreeable to loaning money to an employed worker since the credit union is guaranteed of having the money repaid. The money will usually be deducted from an employee’s paycheck.

Individuals can search online to find companies that offer credit to individuals with terrible credit. Make sure that the company is legitimate by checking them out before applying for the loan. Call the company and discuss the reason for needing the loan.

A great way to get a bad credit loan fast is with a payday loan. This type of loan will offer money fast for someone with an emergency, and there is no other option for obtaining the cash. These loans come with extremely high interest rates, and the loan will be due on payday. If an individual is not able to pay it back at that time, more interest will be added. This can become a problem since the debt is increasing. Eventually this could cause someone to be unable to pay back the loan.

Sometimes it becomes necessary to find extra money for an unexpected expense, but it is better to find a loan that is repayable to keep from getting more into debt. Terrible credit ratings mean that an individual will have fewer options of loans to choose from to get money fast, but there are some loans available if an individual is willing to pay the higher interest rates.

Copyright 2010 How to Get a Bad Credit Loan FAST – Even When Your Credit Is Terrible is a post from Well Heeled Blog - Personal Finance + Savvy Living = Save for Tomorrow, Enjoy Today. This feed is for non-commercial purposes only.

Fess Up Friday: Spending Under Kate Middleton’s Influence

WellHeeled — Fri, 11 May 2012 13:30:02 +0000

There’s a $200 dress that I want, and I blame it all on Kate Middleton!

There are magazines and blogs devoted to Kate Middleton’s outfits, and I count myself among fans of her style. It’s so refreshing to see someone famous wearing stylish, work-appropriate clothes. I admire great evening wear, but I rarely tune into Hollywood stars appearing on the red carpet because my next invitation to a black-tie event is in… well… hasn’t happened yet. On the other hand, many of Kate’s outfits can easily be adapted to a day at the office.

Some people say her clothes are boring, but at the risk of sound boring myself, I like classic pieces. Most avant garde design are best left to the runways. Besides, I’m not one to want a particularly exciting or cutting edge wardrobe. What I want is a closet filled with clothes that fit and flatter and that are always appropriate for the occasion.

While Kate wears plenty of high-end brands that are out of my budget’s league (Alice Temperly, how I love thee), I appreciate the fact that she doesn’t wear only designer. One of her favorite brands is Reiss, a premium high-street fashion house whose items retail for around $200-$500. On sale, Reiss would tip into my “big splurge but doable once in a while” category. The personal finance blogger in me rejoices.

And speaking of these sale items… I peered at Reiss’ website and saw this beauty, the Andree Lace Dress in Lilac, for a tantalizingly-within-my-reach $190 (plus $15 shipping). Hey, it’s cheaper than the headband I was looking at, and I did just receive a bonus… Given that it is Reiss, it’s conceivable that Kate could wear it and then it would disappear off the shelves. If I pair this dress with a black blazer, I may be able to wear it to work, and it would work beautifully as an elegant cocktail dress. This is what the website has to say about the dress: In luxurious lace, the Andree three-quarter sleeve pencil dress has a v-front with twist detail to the centre cinching the waist and fastens with a concealed zip to the back.

Are you a fan of Kate Middleton’s style? More importantly, what do you think of the dress – yay or nay?

Copyright 2010 Fess Up Friday: Spending Under Kate Middleton’s Influence is a post from Well Heeled Blog - Personal Finance + Savvy Living = Save for Tomorrow, Enjoy Today. This feed is for non-commercial purposes only.

Etsy vs. eBay: You May Be Paying More for the Same Thing

WellHeeled — Wed, 09 May 2012 13:32:41 +0000

I have officially decided to forgo the $260 hair piece that MOST of you advised me against buying. Instead, I looked for something a little bit more understated, a little bit more budget friendly, but still has that vintage flare I love. Etsy presents a myriad of chioces of headbands, fascinators, combs and brooches, and I fell in love with a hair brooch in the shape of a peacock feather. That is, until I went on to eBay and realized that there are brooches that look almost exactly the same, that I can buy for half the Etsy price. I’ve put up a screenshot below – you can see that the Etsy item costs $33.50, while the identical brooch is sold on eBay for $16.99. But at least that Etsy seller has changed (or “upcycled”) a brooch into a clip.

The proof is in the pudding screenshot

I believe in supporting artists and paying for quality products that requires real craftsmanship, but this excursion into Etsy has been a little disappointing. To be honest, I feel misled. Putting a clip on the back of a brooch you bought on eBay doesn’t strike me as an “original creation” as that Etsy seller proclaims. And it’s not an isolated case. I found several other examples of people who seemed to have simply purchased items on eBay and then turn around and sell it on Etsy for triple the cost. See this $5.50 brooch? It reappears for $18 here. This Etsy comb is selling for $30, whereas an identical comb on eBay has a starting bid of $9.99 and no bids 2 days before the close of auction. Further googling revealed that there are websites devoted to outing Etsy resellers and calling out Etsy knockoffs. I guess the moral of the story is: do your due diligence!

Have you discovered serious pricing discrepancies between identical products on Etsy vs. eBay?

Copyright 2010 Etsy vs. eBay: You May Be Paying More for the Same Thing is a post from Well Heeled Blog - Personal Finance + Savvy Living = Save for Tomorrow, Enjoy Today. This feed is for non-commercial purposes only.

5 Tips for Sane & Stress-Free Wedding Planning

WellHeeled — Mon, 07 May 2012 14:00:01 +0000

Every time I log onto my wedding website, a little countdown stares back at me: my wedding is in a month! Most of the big items are booked, signed, and paid for (at least in part). Our invitations have gone out and our registry is set up. For the first time, I am really start to ENJOY this wedding planning, or maybe I am enjoying the feeling of anticipation and excitement about the upcoming big day. In any case, judging by what I’ve read online, it seems as if I got pretty lucky in putting together a sane and relatively stress-free wedding, on a reasonable-to-us budget. So I wanted to share the 5 tips that really helped me in the wedding planning process.

photo credit: *m5 via flickr

1. Set a wedding budget, but set a realistic budget.

Even a million-dollar wedding has a budget… of $1 million. Most of us won’t be spending that much (unless I have some very rich lurkers reading this blog!), but EVERYONE has a budget. Talk with your fiance, with your family, with yourself, and figure out how much it is you are 1. able to spend and 2. comfortable with spending. When I first got engaged, I had no idea what my budget should be. But that’s kind of Step 1 in the whole planning process.

Attempting to hold a $40,000 wedding on a $20,000 budget is a surefire way to get an aneursym, unless you have tons of vendor relationships, are prepared and capable of lots of DIY, or have hours and hours to burn on wedding planning and research. And even then… I cringe a little just imagining the stress! There is nothing so frustrating as to have a vision of what you want your wedding to look like and then realizing that it will cost double the money you need to make it happen. Remember that triangle – cheap, easy, and good. You only get to pick two. And if your wedding budget require you to go into debt, the personal finance blogger in me must inform you that your budget is not realistic.

On the other hand… there are no prizes in wedding budgeting. You don’t get a prize for spending $500 and you don’t get a prize for spending $50,000. After the vows are spoken and the cake is cut, you’ll be married and you will have the memories of that day. I would never jeopardize my financial future for a wedding, but I also decided that I am not going to set an arbitrary $5,000 limit when we want and can afford to spend $7,000.

2. Have a small guest list, hire a wedding coordinator, or use an all-inclusive venue.

A small wedding, all things equal, will be more inexpensive and easier to plan. You also have the advantage of fitting into unconventional venues that have a size limit of under 100. For example, my ceremony venue’s max limit is 75, while my reception area’s is 45. I am a huge fan of the small wedding for minimizing stress and stretching your budget. At a guest list of around 35, I can splurge on some pretty nice food and several flavors of cake. I need to address fewer invitations. I have a good handle on my RSVP list. I don’t need to plan out individual seating charts.

If you want to have a bigger wedding – many people find it difficult to cull their guest list because they are blessed with a big family and tons of friends – hire a wedding coordinator. A friend is hosting a 250-person wedding and told me that her wedding coordinator has helped her read over contracts, find vendors, negotiate rentals, etc. If you are having a big wedding and can’t hire a wedding coordinator, going with an all-inclusive venue will save a lot of time and work. Those venues typically have chairs, table, lighting, music, etc., and a dedicated venue wedding planner, so you will get some help in planning the event. They also make it easier to budget because there is one price that covers most of wedding elements.

3. Set up online RSVP.

You could say we went minimalist with our invites – all we sent out was the wedding invitation and a small card with our wedding website address. Guests can then RSVP for the reception via the website. This cuts down on the postage (our invites, even with very heavy cardstock, only cost $0.45 each) and speeds up the reservation process. I’m not sure what Emily Post would say about this method, but I love how quick and easy online RSVP has been. FYI, we have our wedding website on weddingwire.com, and it has an RSVP app that is very simple to use.

4. Believe that your guests love you and support you, and that if something you do inadvertantly offend them or create an inconvenience for them, they will still love you and support you.

This means that if you cannot fit onto your guest everyone you want, trust that those people whom you care for but cannot invite will understand. This means that if you have your wedding on a Friday or even a Tuesday or Wednesday, trust that your guests will won’t think less of you. Maybe you will have fewer people attending, but the folks who can’t make it will send you their well wishes. Or maybe you, like me, will only serve a spinach salad for appetizer. Trust that your guests won’t think that you are misers too cheap to provide a choice of baby greens or arugula. Even if they hate spinach.

Or maybe you can’t afford to serve a sit-down meal at all and instead do a cake-and-champagne reception, believe that your guests will have a good time and celebrate with you anyway. Or, maybe you, like us, are having only a honeymoon registry. Trust, like I am, that guests know that absence of a traditional registry does not indicate money-grubbing etiquette-less behavior, and that every gift – on registry or off – will be appreciated.

5. Care less.

Does a river try to break apart the rocks in its path? No, it flows round them. Is this a zen koan? No, I made it up myself.

But nonetheless! The principle applies: sometimes you can’t change things – you don’t have the money, you don’t have the time, you don’t have the power. Instead of stewing over this fact or getting angry, change what you can: your reaction. Put more succinctly: care less.

An example: CB’s wedding party won’t be in matching suits. We decided to ask his party to just get gray suits – and this way they can wear something they already have or choose something that fits their budget. Would I like them to wear matching outfits and coordinating ties? Well, yes. Aethestically, that would make a more pleasing composition. But I don’t want to put that kind of financial burden on them. And so my solution is… care less!

(It’s a little hard to believe I am getting married in a month. If you had told me, way back when I was 17, that I was going to marry the cute boy I had met after class, I would have thought you were crazy. Life is funny. And right now, it’s pretty great.)

Do you have any other tips to add?

Copyright 2010 5 Tips for Sane & Stress-Free Wedding Planning is a post from Well Heeled Blog - Personal Finance + Savvy Living = Save for Tomorrow, Enjoy Today. This feed is for non-commercial purposes only.

Tell Me I Should Not

WellHeeled — Thu, 03 May 2012 14:40:40 +0000

There is only one purpose to this post:

Tell me I should NOT spend $240 plus $19 shipping on a beautiful-but-impractical headband that I will only wear for my wedding.

Now… start!

What to do with a Windfall or Bonus

WellHeeled — Wed, 02 May 2012 14:00:00 +0000

Thanks to a quarterly bonus, my bank account will be getting some extra love in the next paycheck. After 401K deduction and withholding for taxes, I should be seeing a $3,000 windfall. I am really happy about this boost, as I look into the future months and see only cash out without the corresponding cash in.

What to do with windfall money?

Save some

Check to see if you can have 401K / 403b taken out of your bonus checks. Or, you can always use a windfall to contribute to a Roth IRA, put into a down payment fund, or save for a shorter-term goal. 401K is taken out of my bonus check as well as regular paychecks, and although that makes my bonus look punier, it’s a good way to make sure I am “paying myself first.”

Spend some

Taking some of the windfall (5%? 10%? 20%?) to treat yourself is perfectly acceptable. And what do you know, there is NO shortage of ideas of where I can spend this money. In fact, I might use $50 or $100 to buy a bridal headband. If we were still planning on going to the Galapagos instead of raiding the kitty for graduate school, I would probably have put the whole thing into the Galapagos Fund.

Pay off debt

If you owe people / companies money, a windfall can go a long way in helping you out of indebtedness. Paying off high interest rate debt is probably the BEST return on your money in this environment (and can do wonders for your state of mind).

Here is where the bulk of my bonus check will go: directly into my MBA fund, which then will be spend down on the MBA experience. I am trying to motivate myself to minimize student loans by telling myself that every dollar I can put towards school is another dollar I wouldn’t have to repay, is another dollar that I can help CB with HIS tuition in two years is another dollar that we’d enjoy as a “free” dollar after we graduate.

How do you save/spend a windfall or bonus?

2011 Payroll Tax Deduction = You’re Getting a Raise

Save Money on Self-Storage

WellHeeled — Tue, 01 May 2012 16:00:33 +0000

Thinking About My Debt Threshold

WellHeeled — Mon, 30 Apr 2012 16:30:11 +0000

This is a sponsored post by a guest writer.

A person’s debt threshold is not dissimilar in concept from their pain threshold – in both cases, there is a limit beyond which the discomfort is too much to bear. In both cases, neither pain nor debt is desirable but both can be tolerated to some degree. And, in both cases, the cut-off point can vary tremendously from person to person.

The comparison between these two types of thresholds has been on my mind recently as I move closer to graduate school. All the calculations that I do – and all the advice that I seek – suggests to me that a significant debt burden is not a reckless risk to take. Most graduates of top M.B.A. programs make six-figure salaries right out of the gate, meaning that loans totaling $70,000 or $80,000 should be easily payable with the right approach. My loans, in comparison, will be half that figure thanks to savings and family contributions. I really have no reason to doubt the risk that I’m about to take – at least as far as a cold, unemotional analysis would indicate.

But that’s where I return to this concept of the debt threshold. I’ve never been the kind of person who can tolerate pain well: I’ve been deathly afraid of bees ever since a childhood sting, I never push myself as hard as I’d like during workouts, and don’t even get me started about trips to the dentist. Perhaps this has translated over into my low debt threshold, or maybe it’s the magnitude of the numbers involved, the state of the economy, and the fact that my boyfriend will also be taking out loans that makes me hesitate to put myself that far into the red. Either way, I find that the two thresholds are similar in experience: you don’t know how much you can truly handle (of pain or of debt) until that level becomes a reality. I think the gut reaction to threshold limits is a worthwhile one, to a point. When my body tells me it can’t take any more pain, I’ll push myself just a little harder. When my gut decides that I’ve reached a debt limit, I’ll go slightly past that limit but not too far. It’s all about creating the right balance: I don’t want to take out so much debt that I’m constantly worried and stressed about retirement planning, but I also don’t want to limit my grad school options – and my future opportunities.

So when I take the plunge and pay that first tuition bill, I’ll be taking out loans that are uncomfortable by my standards yet conservative when compared with my peers. Hopefully this presents the optimal middle path, one that I don’t regret down the road.

What do you think? Do you have a debt threshold? Do you use this threshold to inform your financial decisions?

Saturday Wants: Fossil Vintage Shopper

WellHeeled — Sat, 28 Apr 2012 11:00:00 +0000

I woke up in the middle of the night and did what every self-respecting personal blogger would do (not)… I went online shopping at Zappos. It feels so harmless buying things at Zappos, even thoug their prices are rarely the lowest I can find, because I know I can always return these items. Oh Zappos, how you reel me in with your fast and free shipping and your exemplary service…

Don’t worry, it was just window shopping. I had my eyes on the Fossil Shopper below. The birds motif has been done to death in the past couple of years, but I love the grey-and-purple palette, and the fact that it’s sized just a tad smaller than most totes. I promised myself that I wouldn’t buy anything new until I move to graduate school, because I will only have two suitcases to schlep most of my stuff.

Must. Resist.

Fossil Vintage Key-Per Shopper in Bird motif

Banana Republic 40% Off Code

WellHeeled — Sat, 28 Apr 2012 00:40:19 +0000

H8QM4R1MLK4Z

This is a one-time use code (please let a comment to let me know you’ve used it and I can take it down). 40% off one full-priced item. Expires 11:59pm ET on 4/30/2012. Happy shopping!

Help a 23-Year Old Reader Move Out & Set a Budget

WellHeeled — Wed, 25 Apr 2012 14:00:00 +0000

A reader, let’s call him Ben, reached out to me and asked for some advice on getting started on the right (or left! har har) financial foot. I gave him my feedback – basically, keep your expenses low, build an emergency fund, and save for retirement even though you are only 23 - but I thought it’d be so helpful for you guys to chime in.

I’m a recent University of California college grad, recently employed full time, looking to move out of the parents’ house.

My employer does not include retirement contributions (hopefully they will by January). No health insurance to pay because I plan on staying on my parents’ plan until I’m 26.

Here are the numbers:

$3,000 a month before taxes, living in Los Angeles.

$264/month car lease that I’m stuck with.

Targeting $700-$850/month rent, splitting a place with one roommate

No 401k through employer so looking for some alternatives to putting money in a savings account.

Have $5,000 in savings right now.

Will have least $8,000 saved up by the time I move.

Thanks so much. Would love to hear your readers’ input. I had to wikipedia the 401k — it’s bizarre thinking about my retirement fund at 23.

Any quick advice on how much I can spend on rent/food on a $3,000/month pre-tax salary while still saving up? How much do you think I should save before I can make the plunge?Staying at home is not viable advice — I’m aware it’s the safest financial bet, but my heart is set on moving out.

So, wise readers, what advice do you have for Ben?

Copyright 2010 Help a 23-Year Old Reader Move Out & Set a Budget is a post from Well Heeled Blog - Personal Finance + Savvy Living = Save for Tomorrow, Enjoy Today. This feed is for non-commercial purposes only.