Empty Pockets

We're making a move!

2011-01-20T19:56:00.000-05:00

We're making a big move! Empty Pockets blog is relocating!

Empty Pockets is shifting spots on the old World Wide Web. I decided to get a web host, get my own domain name, and update the look of the blog. Hopefully the transition will be fairly seamless. Ideally the blog will be a bit more streamlined, and easier to read. Please check out the new digs at http://emptypockets01.com/wpfile/?p=3

New Years Resolution #2: Get in shape, kind of.

2011-01-19T22:29:00.000-05:00

Photo by Ken Stewart

Tis the season for resolutions. Promises, hopes, dreams and expectations. I am no different. There are many things on my list of things to accomplish in 2011. One of my big ones is to get in shape. Sort of. I have to qualify this statement because I am really, really, really out of shape. I have never, ever really been "in shape". In my whole life. Honestly. So for me, the term "getting in shape" is a relative term. It means going from jiggly-no-muscle-tone-low-aerobic-capacity girl to some improvement of the above mentioned description. No problem right!

According to a recent poll, I am not alone. The second and third most popular New Year's resolutions are getting fit, and losing weight. I am definitely on board with both of these ideas. I am not obsessed with my figure, nor do I consider myself vain. But I have always been a bit overweight and never physically fit, so I feel there is definitely room for improvement. I will never have a model's figure, nor will I ever be an elite athlete, but I can definitely aspire to be an improved version of my present self.

The most popular way to get fit seems to be joining a gym.
According to the International Health, Racquet and Sportsclub Association (IHRSA), there were approximately 45.3 million Americans belonging to 29,750 health clubs in 2009. Fitness clubs are ubiquitous, and the myriad offerings appeal to many people. Whether it's racquetball, squash, treadmills, hot yoga or pole dancing classes, there seems to be something to appeal to just about every personality and interest. For me, fitness clubs are an appealing option, but my budget will simply not allow it. Ideally, I think I would like to join a club, hire a personal trainer and have someone to assess my fitness level (zero) and figure out some exercises I could do to improve my state. However, no money is available for such diversions, so I have decided when the weather improves I will try to start walking. I live along a fitness trail, and it's free. So as soon as the snow and ice clear, I can start hoofing it along the trail and hopefully start my fitness regime.

Photo by emmequadro61

Debt Fatigue

2011-01-17T22:45:00.000-05:00


photo by naturalhomecures34

I have been working a lot at my real job lately, working some long hours, many different shifts, and often I have difficulty sleeping (especially when I work until midnight). I often toss and turn, unable to sleep, and in my mind I am often writing fabulous blog posts! If only I could get them online! So it seemed fitting that I finally get back to the blog (lack of time this week being an issue) and finally put it out there.

Something that has been nagging at me lately is the concept of debt fatigue. Haven't heard of the concept? Well, it is a concept that I heard about when I first started reading the blog posts of Gail Vaz-Oxlade. She basically talks about the feeling that people experience when they have been in debt for awhile, they have been working at tackling that debt for awhile, and they begin to feel as though they are never going to see the light at the end of the tunnel. In Gail's 2009 book Debt Free Forever, she states that you "start spending again after being overwhelmed by the amount you have and the seeming futility of your debt repayment process. You've given up and gone shopping". I have started feeling a bit of this fatigue myself. I have not gone off the deep end and started spending crazily. I have barely gone on any unnecessary shopping excursions except to my local dollar store (limited opportunities for damage to the budget!). However, I have grown quite tired of the position in which we find ourselves here in this household. I crave having a bit of financial wiggle room. I can definitely understand what makes people want to just say "chuck it!" and whip out the credit card and book a trip to the Caribbean. I'm not going to do it. But I do not feel that I have the motivation to get serious and start fighting the debt monster right now.

New Years Resolution #1: I shall not covet my neighbour's stuff!

2011-01-11T13:37:00.002-05:00


Photo by Cynthia K

I have to admit, this is a tough one. I started off the New Year, talking to my brother (the shiny, rich, perfectly attired brother!) and he recounted his absolutely perfect New Year's celebration. He related how he and his beautiful wife had a lovely pre-New Years party at their home with drinks and hors d'oeuvres for 16 of their closest friends. Then the party posse moved to the country club down the road, where they rang in the New Year with a lavish dinner, drinks and dancing. DANG! That's the New Year's celebration I wanted. Instead, I worked at my real job until 6pm, came home dog tired, we ordered Chinese take-out, watched the ball drop on the television, went to sleep, then got food poisoning and spent the next two days in bed. Ouch.

Coveting is a difficult thing. My human frailty leads me to do it every now and again. My brother's life often seems so polished and perfect (there's that word again!) it makes me crazy. My own life seems harried, disorganized and chaotic in comparison. Their home looks like a decorating magazine. Mine looks half-finished, toy-strewn, kid-friendly, and not too clean in comparison. I could go on and on, but you get the idea.

Other people's lives often look great in comparison to our own. Not having a bird's eye view into their homes often makes us skew our vision of what their lives must be like. Seeing all the beautiful possessions, the tailored clothes and the shiny cars makes many people crazy! (myself included) Why can't my life be like that (or sort of like that!).

It's difficult to take that step back, and breathe. Coveting our neighbour's stuff is human, but not particularly productive. It inhibits our own growth process. If we want to change our lives (financial, social, personal) we have to look within. Examining our history, our habits and our frailties is the first step. Only then can we get an idea of what we need to do, what goals we want to set, what steps need to be taken to improve our lives. It is possible. Just shove those covetous thoughts aside already!

«What people say, what people do, and what they say they do are entirely different things.» — Margaret Mead

Coupon success: a good day for saving!

2011-01-10T23:02:00.000-05:00

Photo by Sascha Erni

As I have posted before, I am a big fan of coupons. I use them almost daily, and have made it a habit to acquire, organize and use them in a sensible way. I try as often as possible to maximize savings by using coupons on items that are already on sale. It only makes good financial sense! Sometimes, circumstances intervene and I am forced to buy something at full price and so the coupon savings are not so great. Once in a great while, circumstances dovetail nicely, and I am able to combine my coupon savings with some hugely discounted items. This happened to me about a month ago, and I wanted to share my savings with you, the readers.

Huggies Pull-Ups reg. price $21.99, sale price $13.99 + $2.00 coupon=$11.99
Pampers Diapers reg. price $22.99, sale price $13.99 + $2.00 coupon + $11.99
Pampers Wipes reg. price $15.99, sale price $8.99 + $2.00 coupon = $6.99
Johnson and Johnson baby body wash reg. price $6.99 + coupon for free product = free product!
Kraft Delissio Pizza reg. price $8.99, sale price $3.99 + $1.00 coupon = $2.99
So Nice Soy Milk reg. price $4.29 + $0.75 coupon = $3.54
Nature Valley Granola Bars reg. price $3.99, sale price $1.99 + $0.99 coupon = $1.00
Kleenex tissues reg. price $2.29, sale price $0.79 + $0.50 coupon = $0.29 (2 boxes)

Total coupon savings was $16.73!

Photo by Shlomi Fish

As a note, all of the items I would classify as "needed items", I was not just stocking up my pantry because of the sales. I actually needed all of the above items, and they went into use right away. It was just some good luck that week with the way the sales were working, and it was much appreciated around Christmas when money was a bit tight.

I have noted before the main sources of coupons that I use frequently are save.ca, www.brandsaver.ca and www.websaver.ca. Both the save and brandsaver websites have U.S. counterpart sites with the .com suffix. I also clip coupons that come periodically in the weekend newspapers (Redplum is one example). I have found that online coupons can be very useful (as in the above noted sites) whereby the coupons are selected by YOU the consumer, and the sites print the selected coupons and send them to your address. I tend to stay from coupons that you print yourself, as many retailers refuse to accept these due to widespread fraud.

Keep clipping, keep watching the sales, and keep the extra money in your pocket! Sound financial sense!

CBC News - Consumer Life - Bankruptcy watchdog issues debt warning

2011-01-09T11:24:00.000-05:00

CBC News - Consumer Life - Bankruptcy watchdog issues debt warning

New Years -- Resolve, Restart, Refocus

2011-01-06T21:21:00.000-05:00

I love New Years. And not just because I met my husband on New Years Eve, 2002. (awesome!) I love what this time of year represents. It's a time of transition for me; I'm trying to right my financial ship, I'm trying to branch out in other directions away from my chosen career, and I'm trying to simplify things at home by cleaning, recycling and getting rid of clutter. It's all lofty ambitions and pie-in-the-sky, or is it?
Regardless of one's circumstances, and the journey a person is taking, it's of great benefit to pause once in awhile and take note of one's progress (or lack thereof!). For some people, it's time to start something new, set a goal.
And, really, that's the thing. In order to achieve some measure of success, you have to set a goal for yourself. Not something too fuzzy like "look better", "organize my house" or "meet people". A goal ideally is specific and quantifiable. It's also a good idea to make a goal achievable. Give yourself a timeline, set the goal, and reach for it. For example, I want to completely pay off my balance (say, $500) on credit card X in 6 months. To make it achievable, divide the payment into 6 equal installments, set up the payments automatically on your online banking software, and voila, goal achieved. (Of course, you need to stop using this credit card completely or hide it in an ice cream tub in the freezer!) Once a small goal is set, and achieved, then it makes it easier and more desirable to set another goal, and the success bandwagon is in motion!

There are a number of items on my to-do list for 2011. First thing is to pay off my credit card with the highest interest rate, and lowest balance. (interest rate, almost 19.5%, balance around $800). I am waiting for a freelancer paycheque (around $350) to pay off the first chunk of that debt. Then, I will pay another $100 monthly until it's paid off. Should be less than 6 months. Then, I will be cancelling that card (interest rate too high anyway), and keeping just the one main credit card with the under 6% balance, but much higher balance. That's going to be the next hurdle to clear, will take a bit longer. but it's still achievable. I will have to do up a formal budget in the next few days and see what my cash flow will look like in the coming months.

Perseverance is not a long race; it is many short races one after the other.
Walter Elliot

Brand Saver = Big Savings!

2011-01-05T21:42:00.000-05:00

The ever popular PG Brand Saver coupons are back! Proctor and Gamble release Brand Saver coupons every 3-4 months. The savings are great, and the types of products available are diverse. Proctor and Gamble manufactures many types of commonly used household cleaning products and personal care items. Some of the popular brands available are Pantene, Pampers, Old Spice, Swiffer, Head and Shoulders, Cascade and many others. Brand Saver coupons can be ordered online at www.brandsaver.ca with the coupons being mailed to your house within 2-3 business days. The PG Brandsaver insert is also placed in most Canadian newspapers on Friday or Saturday so it is definitely possible to accumulate doubles of coupons on some of your most commonly used items. The only downside of the coupons is that they tend to have short expiry dates (usually within 12 weeks), but Proctor and Gamble tends to reissue a new batch of offers 3-4 times a year so there are always savings to find. Happy coupon clipping peeps!

Post Christmas frenzy!

2010-12-29T21:56:00.000-05:00

I hope it was a happy Christmas for all. I had a wonderful, if not totally crazy time. It was so busy, it went by like a blur. After it's all said and done, all I want to do is exhale. But for others, the day after Christmas is a day for shopping, deal hunting, and spending more money. Here in Canada, it's called Boxing Day (origins of said name are not quite known) and it's a statutory holiday for many, including banks, government agencies, post offices and some other businesses. But for retailers, the name of the game is SALES. So the after Christmas sales are designed to entice people who have just spent their buns off for months to reach into their pocketbooks and spend yet AGAIN, this time not for gift giving, but simply because the deal is irresistible. Here where I live, people braved subzero temperatures to stand in line for 3 hours at a major electronics retailer to buy televisions, DVD players, laptop computers and assorted accessories at major discounts. At another local lingerie retailer, I was told the manager had to CLOSE THE DOORS of the shop, as the lines had snaked right around the store, and the staff could not handle the bargain shopping crowds.

For many it's fun, it's a big score, it's part of the holiday season. I personally loathe the post-holiday sales. I am so sick of shopping after December 24th, that I barely darken the door of any stores for the next month, except the essential ones (grocery stores and pharmacies). Part of my issue is that I am tired of the constant unyielding advertising and I just don't care to even peruse the flyers, no matter how promising the deals may be. Another issue is that I am usually cash strapped after Christmas (this year is much the same) and I am not going to run up my credit card, regardless of the discounts. (If you can't afford it, you can't afford it! That's the truth!) The last part of the problem for me is that I work in retail, so I am exposed to Christmas advertising from November 1st until the 25th of December, and by that time I am pretty sick of the whole thing. But mostly I just want stay home with my family, enjoy the gifts I received for Christmas (which I love) and just leave the whole retail therapy thing alone for awhile. Exhale.

Charting a Course

2010-12-21T22:22:00.000-05:00

So it has been awhile, I inadvertently took a break from blogging. Life has been at work throwing me lots of punches, and I have spent a lot of time ducking! A monster winter snow storm here, our region thrown into weather chaos, marathon hours at work, a sick child, Christmas preparations gone wild, and there are not many hours left in a day. Each night, I go to sleep thinking of what I would be writing if I was sitting at my computer, but I quickly drift off into sleep before I ever get started.

I have spent a lot of time reflecting, trying to understand what it is that motivated me to start writing in the first place. Why am I writing this blog, and how can my contributions be meaningful to any potential readers? I have spent a lot of time over the past weeks reading some high impact blogs, and taking lessons from these writers (including my blogging buddy John Paul). It struck me that I need to focus my writing a bit more. There are an abundance of blogs on personal finance out there, and I need to make my voice unique. My background is not in personal finance, it is simply a field I have gravitated toward as I have become a working professional. My university degrees are in the life sciences, and in psychology, so I am not going to fool anyone with my expertise on retirement planning or following the stock markets. So I have been thinking that I will continue documenting my personal finance journey (the reason I started to begin with) and also talk about some of the psychological aspects of spending, saving, shopping and acquiring debt. We will see how this process goes. The content may still evolve as we go along, and that's ok too. It's just good to be out there, reading, writing, editing, creating, learning, socializing and networking. A welcome diversion from my professional working life!

Update

2010-12-18T23:18:00.000-05:00

New post coming soon!! Total holiday meltdown mode...working, shopping, card writing, baking, wrapping, bill paying, the whole deal! Not many minutes left in the day. I have several ideas percolating in the old cranium, shall be putting pen to paper (figuratively) tomorrow.

2010-12-13T23:28:00.001-05:00

http://ping.fm/QlmQR
Blog Post: Personal wealth vs. security

Personal finance: wealth vs. security

2010-12-13T23:25:00.000-05:00

Why am I trying to fix my financial situation? Why does anyone try to improve their finances? Talk to two people, and you may get two different answers. Each person has his/her own motivation, a reason to reflect, change, remedy. For me, my goal is financial security, and not necessarily personal wealth. It's a philosophy which resonates with me, and may not matter to others. However, I am not a person who covets many possessions, and so accumulating piles of cash and luxury goods is not a priority. The reason for my current fixation on personal finance is to try and achieve financial security or "financial peace" (once again, thanks to Dave Ramsey for this concept!) I truly believe that trying to minimize (eliminate!) our debts, reduce our expenses, and live below our means will lead to a sense of greater familial security and inner peace. That's what it's really all about for me. Just to have the freedom to NOT worry about how to pay the bills each month, and instead focus on what is truly important, my family and friends. That's the real deal.

Perseverance: in finances, as in life

2010-12-12T22:24:00.002-05:00

I have to say straight off that I am, by nature, a person who aims to achieve in a decently respectable way. (not exactly an overachiever, but I try!) There are not many domains in which I am what you call "talented" but those things that I think I do well, I try to excel. Not always have I excelled, but I really try to push myself, and by nature I am somewhat competitive. (not outwardly competitive, but man, I am keeping tabs on the score!)

So when I decide to embark on a project, I am full of enthusiasm and vigor, eager to meet my goals. So it was with my decision to remedy my financial situation. I threw myself into reading and listening to the experts, and decided to make it my mission to get myself out of this mess. However, it is a big, deep hole I have dug for myself, and I currently have a little, tiny shovel. (Thanks to Dave Ramsey for this metaphor) It is quite easy to become discouraged, I have discovered. I would LOVE LOVE LOVE to see the numbers start to diminish, the debts start getting knocked out. But until a couple large debts are cleared in early 2012, it will be difficult to get much traction. So frustrating.

When I decided to started blogging, I wasn't quite sure what I was doing, but quickly came to enjoy the process. As each day passed, and I started familiarizing myself with what others were doing, I eagerly wanted to see my blog blossom. Well, it's still tough sledding. My numbers are still pretty low, only a couple dozen pageviews each day. My expectations are quite high, but the results are definitely not there yet. But as with any worthy challenge, perseverance is the key. No major accomplishment ever takes place without a lot of blood, sweat and tears. In the personal finance arena, it means resourcefulness, sacrifice, budgeting and patience. In my social media experiment, it means practice, practice, practice, networking, and never stop learning.

Winning at Finances: first hand account

2010-12-09T20:46:00.000-05:00

I work in retail, and one of my clients was talking to me the other day about our rewards program. In this program, we offer points with each purchase, and when the consumer reaches a certain threshold, they can redeem the points as cash off their purchase. She was remarking how her point totals were not increasing radically. "Well, you know what it is?", she said, "I don't buy things I don't really need just to rack up more points". She added that she watches the sales carefully, and generally pays for her purchases with cash. "You know what?" she said later, "That's how I got to buy my beautiful car!". This 60-ish lady, of no great means, bought a 2011 Ford Edge (LOADED!) and paid for it primarily in cash. She was so proud of herself, and I was proud (and envious!) of her too. A truly great example of responsible financial living, and it allowed this middle class senior citizen to buy the tricked-out SUV she always wanted. AWESOME!

2010-12-07T19:50:00.001-05:00

http://ping.fm/z1Qx1

Clutter--The Hurdle to be cleared on the way to Financial Health

2010-12-07T19:48:00.000-05:00

I was up late last night watching Hoarders (whoa!) and I was just amazed at the damage caused by the clutter in one`s life. In this particular episode, the featured hoarder (Susan) had over 5000 dolls crammed in her house. The house was rendered unusable by the amount of clutter (primarily dolls). After the house was finally decluttered, the sale of the dolls yielded Susan over $1000. It really got me to thinking what role clutter takes in one`s life and how important it is to conquer it.
I have to admit that while I am not a hoarder (nowhere near it, actually), I certainly need a bit of help to get organized and clear my home of clutter. I came from a household where my late mother was habitually clean and organized and my father was fairly tidy himself. I tended toward being a bit less organized, and need frequent prodding to keep my room clean. When I moved away from home, and without any one to monitor my situation, I started becoming a bit cluttered and disorganized. The clutter had a detrimental effect on me, psychologically, spiritually and financially.

Fast forward to present. I am (finally) in a home I can call my own, with an office that my husband and I share. When we moved here, there was literally an avalanche of papers, magazines, documents and items clogging this area. It took nearly a whole weekend, and a huge bag of shredding later, the paperwork was reduced to a manageable level. My husband purchased two filing cabinets, and we proceeded to start putting things in labeled hanging files. And so this system has more or less worked (for him), I still am struggling with what I should keep, and what I should toss. But I clearly know that this has an impact on my financial health, and it's something I am definitely working to improve.

Why declutter?
1. The most obvious reason? You'll feel better, physically (less things around to accumulate dust, therefore cleaner air!), psychologically and spiritually. It is freeing, liberating, exhilarating to inhabit a space free of clutter and debris. You can clear your mind, breathe deeply, and enjoy the space you inhabit. You don't have to fret about where you are going to store a new purchase!

2. It has a truly detrimental effect on your financial well-being. What happens when you are dealing with a mound of papers stashed in some random corner? Bills get misplaced, and therefore get unpaid, or paid late, dinging your credit score in the process. Receipts which are needed for your yearly tax return are MIA resulting in an inaccurate (and potentially costly!) tax bill at the end of the year.

3. It's the vital first step in any good financial plan! You have to start by knowing what exactly your financial situation is--that means having pay stubs, credit card statements, banking statements, insurance invoices and other vital documents within arm's reach. Outlining a budget (an important first step towards managing expenses) requires that you know what money is going into and out of your bank account. All these statements need to readily available and accessible by you!

How the holiday season can snowball

2010-12-05T23:01:00.000-05:00

I have written much about the need to plan for holiday spending. So far, I have felt fairly optimistic about how this holiday season is going. However, I am starting to feel the pressure a bit, and how my seasonal spending could possibly snowball. Everything has seemed fairly straightforward up to this point, but now I am starting to realize that there are some other gifts that I had not thought of before (e.g., my sons' teachers--all four of them, my sons' surrogate grandmother). I am also wondering whether I have bought enough for my husband...aaah, I am starting to feel the tug of the emotions playing into my spending patterns. Anytime emotions starting playing into the game, well-thought out plans go out the window. Should I buy more for this person? How much is my spouse spending on me? Should I spend as much on him/her? Am I going to look cheap if I buy just this one item? What's a person to do?

Plan, plan, plan!If ever there was a time when planning was crucial, it's the holiday season. Write out your list of people to buy for. If you are entertaining, write out a proposed menu, and what you will need to buy for the event.

Budget thyself!What amount of money can you realistically afford to spend without stretching yourself too thin? Shopping with cash can help you keep within budget, if you are actually visiting bricks and mortar stores. Don't lean on the credit cards too much to help complete your lists. The post-holiday hangover has a nasty effect when those bills start rolling in.

Stay organized! Keep track of what you are buying. (this is especially important for people who shop all year) Periodically take out your gifts and separate them into piles, and see what you actually have. It's amazing how easy it is to forget what you have bought, then realize you have purchased too much for that special someone.

Take a deep breath. Try not to get caught up in overblown expectations. Realize that most of the cliches about gift giving are true. It's not what you buy, but the sentiment behind it. Keep in mind that a month from now, your special someone is not going to hate you because you didn't buy that one extra thing.

Planning for the 2011 Holiday Season

2010-12-01T22:15:00.000-05:00

So we're (barely) keeping our heads above water this holiday season thanks to the use of rewards points to buy some Christmas gifts and a couple other fortunate circumstances (a small inheritance and having a 1 year old for whom I don't have to buy an airline ticket when we fly to the US for Christmas). However, as much I have been scrambling this holiday season trying to keep costs under control, it has made me think that I want to try and budget for next year starting immediately. Next year, my one year old son will be 2 years old, and he will no longer be able to fly free. So that means we will need approximately $1000 to fly our family of four to the US to visit my husband's family. That's a significant amount of money to spend each December, in addition to buying presents for everyone. However, because it's a predictable expense, it makes sense to try and set aside the money each month. So, to that end, I set up a high-interest savings account (HISA) with Ally. Ally's HISA has one of the highest interest rates (2.00% compounded daily) of the banks I researched. Most of the big banks offer just above 1%, and other online banks pay approximately 1.5%. I like the idea of the online banks mainly because it's a safe place to park your money as you are working towards a goal, and the money is not easily accessed (reduces temptation!).

The goal is to try and sock away approximately $100/monthly out of my regular pay cheques. It may or may not be feasible to put this money away each month. When my tax return comes in (May), I will try to put a chunk of cash ($500?) into the HISA to help me achieve my goal. Hopefully, this was greatly reduce the financial crunch next year, as our expenses and debt payments will continue be significant factors until February of 2012.

Another shopping mission: $200 cash

2010-11-30T12:22:00.000-05:00

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November and December are busy months around here. My birthday, my husband's birthday, my brother's birthday, then Christmas equals a lot of gift buying and gift giving. I received $200 USD from my family to spend on clothing that I needed for work. My wardrobe at work is work-casual, but I have been wearing the same clothes for more or less four years, and everything is starting to look worn. Plus, I have had 2 babies in those five years, and the clothes were starting to feel a bit tight (my personal fitness journey should be starting soon, but that's another story). So I was sort of compelled to get some clothes for work, and I had $200 to do it. The idea was to get functional clothes (as many as possible) for the money. Obviously, I wanted to spend as little as possible for each piece, but didn't want to cheap out too much, because with all the wear and tear, cheap clothes will wear out faster. (I work 40 hrs/week, and each piece gets washed every five days). So I went to the US to shop, mainly due to the lower prices for clothing there and also because the Canadian dollar is currently at par. I went to a mall, checked out a few department type stores (time being an issue!) and walked away with the following:
- two pairs of dress pants
- three semi-dressy tops, suitable for work and evening wear
- one pair of Nike running shoes
The running shoes are not exactly work-related, but my current pair was 6 years old, and I have been wanting to start walking/running soon, so a new pair that fit properly was something that I had hoped to find. The total for all items was $170, so I went out for lunch, and still came home with $20 USD in my wallet. Another good shopping mission accomplished! I feel empowered that I can go out there with cash in hand (NO CREDIT!), and stick to my shopping list. No impulse purchases!

Black Friday: Retail Bombardment

2010-11-26T22:21:00.002-05:00

Even though I am not an American citizen, I am married to one, and so for that reason, we celebrate Thanksgiving twice, once in October and once in November. We also live close to the U.S. border, so it is hard not to notice Thanksgiving, and the crazy retail shopping holiday that is Black Friday. I already talked about Black Friday in a recent post, but I thought it beared repeating: the whole Black Friday phenomenon can be absolutely toxic to someone who has trouble controlling his/her spending. I am absolutely astounded at how much the media-overload seeps into your psyche. Over the last year, I feel like I have been so sure of my need to save and my aversion to spending money I didn't have seemed rock solid. But then the advertising-- print, online, television and radio-- began building a few weeks ago, and reached its crescendo this week. I could feel myself start to crumble, I started coveting all the things I could not afford. Every day a new bundle of flyers would appear in the mailbox, and I could not stop myself from eyeing all the sales. I have not buckled (yet), still resolute from my successful trip to Costco. But I can see how this environment causes people to overspend. Retailers know just what buttons to push in order to get cash-strapped, debt-burdened North Americans to spend money they do not have. It's a minefield out there!

Postscript: Happy to report I am over 200 pageviews for my blog. It may not seem like anything much, but it's a nice milestone for me. I started this blog not really knowing what I am doing (still don't really know!) but I am learning a little more each day, and I am glad to see some people are reading!

Empty Pockets: Shopping mission: Accomplished!

2010-11-24T22:42:00.000-05:00

Empty Pockets: Shopping mission: Accomplished!: "I began this week with my bank account perilously close to zero. I had precisely $200 left until payday (Friday). I had a few things to get ..."

Shopping mission: Accomplished!

2010-11-24T22:41:00.000-05:00

I began this week with my bank account perilously close to zero. I had precisely $200 left until payday (Friday). I had a few things to get for our upcoming U.S. Thanksgiving celebration on Thursday. I made the decision to go to Costco to get some of these things. What I did was this: make a list, and withdraw the $200 cash and vow to exit that store with at least some of that money left.
Costco can be a real minefield for the cash strapped. When I first started shopping there, I used to blow $300-$400 each time, and rarely examined the costs too carefully. Now, I always go there with a list, and I am more diligent about checking the unit costs. My experience has showed me that while there are definitely some good deals at Costco, other things are not so differently priced as your average big box store. I also find that you have to be able to dodge the diversions, the things that they keep on the ends of the aisles which often turn out to be impulse purchases.
So I brought my list, my cash, and my Blackberry to do some quick calculations in the aisles. I felt a bit weird doing the calculator thing in the store, but it was a good idea! I found myself well under budget ($110) and was able to get a couple of the optional items on my list. Total cost: $180. I walked out with a measly $20 until payday, which still isn't great, but my shopping mission was accomplished.

Black Friday Frenzy

2010-11-21T18:43:00.000-05:00

We`re coming upon another Thanksgiving week (for my U.S. friends and family). That means Black Friday is fast approaching, and the consumer frenzy is about to begin. I have to admit that I am a relative newbie when it comes to Black Friday. When I started dating my husband, I quickly figured out how big a deal it is in the U.S. My stepson scours the Black Friday ads online starting a couple weeks before. Then, he gets up in the middle of the night (usually 2am) and gets in line at his preferred stores (often Best Buy and Walmart) and gets the door crasher type items. I must admit, I was kind of mystified by this annual shopping holiday. Here in Canada, we have no equivalent day. I have seen a couple retailers here and there try to emulate the Black Friday phenomenon, but it really has not caught on.
I must admit, looking at some of the advertisements, it really gets tempting. I have seen some really, really good deals, especially on toys and electronics equipment. It definitely makes me want to part with some of my hard-earned money, and I guess that`s really the point. Consumers need that temptation, that little push, to open up their wallets and spend some money on Christmas gifts. In a recession tinged year such as 2010 this has never been more true. However, it also encourages me (and a lot of others, I suspect) to sink deeper into consumer debt. I can definitely imagine having that rush, scoring that one thing I wanted to buy for 50-70% off retail. However, that rush would soon turn to guilt, watching my credit card bills climb, something that I definitely don`t want to do this year. So I guess I will be sitting out Black Friday this year, sigh.

Financial purgatory

2010-11-19T23:09:00.000-05:00

It's a tough spot to be in, this financial purgatory. We're in a bad spot, yes, as I have already documented. Could things get any worse for us? Well, yes, of course, one of us could lose a job, we'd lose our home, and we'd really hit rock bottom. That being said, the financial place we're at right now is kind of grim. The problem is that we're kind of stuck. Both of us are very cognizant of the peril we're in, and want to take steps to secure our situation, but there's just no wiggle room right now. We have pared down expenses as much as we can. Our money goes strictly to paying bills, mortgage, taxes, and child care. After that, we buy groceries, gas for the vehicles and clothes/supplies for the kids. Often we don't even have enough money to do the basics. We don't spend any extra money on ourselves, for clothes, entertainment and the like. As much as we would love to splurge once in awhile, we are committed to living within our means right now, and so there is no putting things on the credit card for the things we can't pay for.

It's so tough--I have the motivation, the drive, the will to dig myself out of debt, I simply lack the funds.
We have no excess cash at the end of each month, and will probably remain in this limbo until February 2012 when three major debts are paid off simultaneously. Then, we will able to go into attack mode, and throw major chunks of money at our various debts. Then, we will finally be able to see some progress. In the meantime, barring a lottery win, (right!) we will try to stay the course, and not get any further into debt.