New Year's money resolutions

As an adult, you hope to never be in a place where you are so desperate for money you have to ring up the Bank of Mom & Dad.  Here’s a related question I recently answered on Learnvest.com.

Dear Farnoosh,

I’ve never had to ask my parents for financial help, but I’m afraid the time has come and I am so annoyed with myself and also worried I’m in for a lecture from my dad. It’s not like I have a major excuse either, like a job loss or disability. I stupidly cosigned a credit card with my boyfriend and, now that we’ve broken up, he’s bailed on his debt and I am on the hook to pay for it. Between that and paying rent, my monthly bills and some unexpected car repairs last month, I’m running on empty for the next four weeks or so. I estimate I’ll need about $800 to get me through the month. How do I even begin to ask my parents for help?

Sincerely,

Clumsy Cosigner

****

Dear CC,

I wish you had written in earlier – preferably before you co-signed with your boyfriend on a credit card. Unfortunately, you’re learning the hard way that doing so can turn into a major financial burden.

For those who may not know: When you cosign a loan with anyone, you are equally on the hook for the payments if the primary borrower goes AWOL. I hope you’ll make good on the payments and learn to think twice before taking on this risk again. While you’re at it, get yourself removed as a cosigner so that if he makes future payments you won’t be responsible for his debt.

To answer your bigger question, asking your parents for a bailout is never easy, especially for someone who’s been so financially independent up until now. Here’s my advice on how to get out of this rut and still maintain your parents’ pride:

1. Come Up With Plan B.

Imagine if your parents were not able to help you. What would you do to solve this immediate financial problem? Would it mean hunkering down and eating ramen for three weeks while carpooling or taking public transportation? Would it mean selling some of your jewelry or other valuables? Imagine a world where it’s just you and your ability to save money. Can you come up with the money yourself? You can probably come up with some fraction of that $800, no?

2. If Not, Ask As Soon As Possible.

You have financial obligations with deadlines. One of the worst things that can happen is missing those deadlines. Give yourself enough time to ask your parents so that (if they oblige) you can get the assistance you need to pay your bills on time.

3. Ask for Advice.

When you do muster up the courage to ask your parents for financial assistance, start by asking for “advice.” Be honest and explain your situation. Your parents are likely going to have a lot of questions, so come prepared with good answers to show that you’ve learned from your mistakes and how you are struggling to turn this ship around. Explain that you’re doing everything in your power to address your finances, but that you’ve done the math and have calculated you’re x dollars short this month. Let them know you’ve considered and are working on Plan B, but that you need a little more help to get over this hump. What would they do if they were in your situation? They may offer to help you without you having to ask.

4. Speak Specifically.

If you need $800, what specifically will that help cover? Parents want to know that you’re being honest with them. Is the $800 a need or mostly a want? Have a list of your expenses and prove that the money will not be spent frivolously.

5. Have a Repayment Plan.

If it’s decided that you parents can and will help you out for the month, don’t just take the money and run. Show your maturity by proactively explaining how and when you will repay them. The sooner, the better. If they push back and offer to help you for free, make sure to repay them somehow, whether it’s treating them to a nice dinner or spending a Saturday cleaning out the attic. It’s your daughterly duty.

I’ve scanned and included the piece here.  (Shh)

Given the weak employment market in the U.S., now may be an opportune time to venture overseas for work, even if just for the short term.  Some industrialized countries with relatively low unemployment rates at the moment include Australia (5.3%), China (4.2%), Japan (5.3%), Norway (3%), Singapore (2.3%) and Switzerland (4.1%).

After getting laid off in May 2009, attorney Andrea Lazarow went on more than a dozen interviews, none of which resulted in an offer. After spending her entire career in New York City, the 44-year-old decided to broaden her job search by 7,000 miles. “It seemed that every day I was reading or hearing stories about the booming economy in China and Asia at large, so I thought that there might be opportunities for me there,” she says.

Lazarow was right. Today she is an English teacher at a university in China; next month she’s heading to Seoul, South Korea, to work in the corporate strategy department at Daewoo Shipbuilding and Marine Engineering, a large Korean corporation.

At the very least, working and living abroad gives your resume that wow factor that can help you be more marketable to your next employer, career experts say.  “You will distinguish yourself, because not everybody has international experience,” says Caroline Ceniza-Levine, a career and life coach and co-author of the new book How the Fierce Handle Fear: Secrets to Succeeding in Challenging Times. “It shows ambition, ability to adapt, flexibility, and awareness.”

Of course, finding work overseas and getting settled in a foreign country can be challenging.
Here are some tips to consider before venturing off.

1. Start Your Job Search Before Moving

Revisit your college or university’s job placement or career services department. “Often these places have job books with actual job postings for international work, or at least lists of associations  and companies that hire abroad,” says Ceniza-Levine. For example, the University of Michigan has a work-abroad Web site with a list of internships, volunteer and paid positions. If you have dream companies in mind, says Ceniza-Levine, figure out where those firms have international offices and directly contact the hiring managers there. Or ask your existing company if there are positions abroad within the firm.  A friend of mine at a major news network found out through her H.R. department that there was an opening for an on-air correspondent in its Middle East bureau. “I was looking for change,” she tells me. “I had been working in the same position, for the same employer for over five years and felt the need to branch out and put myself in an environment where I could have new experiences.” She’s moving to Bahrain this fall.

2. Build an Overseas Network in Advance

Tap into international resources as part of your homework before making the leap abroad. If you have friends, family members, or current or former colleagues who live in foreign countries, ask them to refer you to local job placement firms and give you a sense of the local job market. Some great educational resources to check out before you make the transition include Transitionsabroad.com,WorkingOverseas.com and GoingGlobal.com.

3. Consider Federal Jobs

The federal government has technical, administrative, and supervisoryjob openings overseas. Agencies include the Peace Corps, Army, Navy, Air Force and others.

4. Transition by Teaching

“It seemed that the quickest and easiest way to [get to] Asia and establish a toehold there [was] to take a job teaching English,” says Lazarow.  After settling in and meeting new people, it may be much easier to network your way to a permanent job. The Council on International Education Exchange, TransitionsAbroad.com andGoAbroad.com all have information on teaching opportunities overseas, including ways to qualify for various programs.

5. Stay in Touch with U.S. Employers

If your plan is to return and find work in the U.S., keep in contact with the recruiters and employers you met with before leaving the States.  Let them know how your experience abroad is going and when you plan to return home. Before Lazarow accepted the job in South Korea, her intentions were to return to New York City.  ”I was planning to start contacting all of the recruiters and employers who had interviewed me before I left for China to inquire about their hiring needs,” she says. “I’ve also been checking legal industry job boards online and staying in touch with my professional contacts at home.”

Photo courtesy Kossy@FINEDAS’ photostream on Flickr

There’s more to protecting your money in college than avoiding credit card debt. Whether your roommate eats all your food or misses a utility payment, or friends pressure you to spend, here are six solid money management tips to keep college students in the black.

1. Avoid Lending Money. In college, when roommates ask you to “spot” them for a purchase, know that they’re really asking you for free money. It’s rare to ever receive friendly “loans” back in full. Knowing this, don’t lend money you cannot afford to part with to a friend. Of course, if your friend is in a jam in the checkout line and you can spare it, spot him, but follow up by asking him to either spot you for lunch soon or pay you back ASAP. If he does opt to spot you, don’t let him forget! Address the situation quickly and you’re more likely to get your money back in good time.

2. Collect Rent Online. If your name is on the lease, you need to set up a system to collect rent payments from all your roomies. Manage your rent payments online with sites like WePay.com, ShareaBill.com and BillSplit.com, which offer hassle-free online group payments and payment history tracking. (Note: these sites typically charge a small transaction fee). If a roomie fails to pay and your name is on the lease, you’re responsible for making the full rent payment on time. An out-of-hand roommate deserves to be evicted. Get help from you landlord to do so.

3. Track Utility Payments. If your roommate is in charge of collecting and making payments each month, find out whether your name is also on the bill. If she forgets to pay one month, you’re on the hook. A college friend got a phone call from a collection agency telling her she and her roommates owed less than $20 on a utility bill from several years back when they were seniors. Know the statue of limitations for collection agencies in your college’s state. WePay, ShareaBill and BillSplit can also help manage utility bills with groups.

4. Communicate Kitchen Rules. If you share an apartment with roommates, set ground rules for the kitchen, unless you want to come home to find your Pop-Tarts missing. Everyone should have a group meeting and agree on the best way to manage the food in the home and be conscious of everyone’s budget. There’s also the Grocery IQ, which you can download to your iPhone or iPod Touch to get coupons for items at the grocery store.

5. Suggest Affordable Social Activities. Avoid the pressure to spend more than you have by taking the lead when planning social outings. How about pre-gaming at someone’s apartment first to avoid spending as much at the bars? Check myopenbar.com to find free drinks and happy hours in select cities. Restaurant.com also issues coupons and gift certificates for over 6,000 eateries around the country. Sites like Groupon.com and LivingSocial.com offer major discounts on social activities across the country. And if your friends invite you to go skiing in the Alps for Spring Break, either find a job fast or simply say you have other plans for the holiday. Don’t your friends drive you into debt!

6. Get Renters’ Insurance. If your apartment catches on fire or gets burglarized, renters’ insurance can save you thousands of dollars to replace lost or stolen items from your laptop to furniture, clothes and jewelry. It costs as little as $16 a month – as much as a large pizza. If you have a roommate, each of you needs your own policy.

This post originally appeared on Moneywatch.com

The folks atFreeShipping.org have released their 2010“Best Time to Buy”guide, which lists several items they say are best to purchase this month. You can snag major savings on items ranging from computers to lawn mowers to swimsuits. Here are 7 products off the full list, including FreeShipping’s estimates of how much you can save.

Computers

From August through December is when you can expect to see the steepest deals on computers, as retailers compete for back to schoolbusiness and, over the next few months, holiday shoppers. Savings for students range from $150 to $350, according to researchers at FreeShipping. For the general public the discounts are between 10% and 25%. If you’re a student, remember to bring your school ID, which could get you even more discounts. Don’t forget refurbished computers, too, which can save you 25%. Dell and Apple both have refurbished sections.

Dehumidifiers

Once the humidity of July is past, merchants are quick to put dehumidifiers on their sale shelves. August average discount: 10% to 20% off. Look for one that is energy-efficient. Check out Consumer Reports’ dehumidifier ratings.

Lawnmowers

As the summer season wraps, stores begin preparing for fall items and making room for new inventory. Expect to see major discounts on lawn mowers.  FreeShipping says deals average 25% off.

Swimwear

This one’s a no-brainer. It’s easy to see why department stores and retailers place their swimsuits and swim trunks on sale this month. There’s only a few weeks left for beach trips. Expect to see deals of 50% to 75% off.

Swing Sets

The kids are no longer interested in outdoor play and it’s back to the Playstation. Swing sets take up a great deal of floor space and stores need to replace them and fill the area up with holiday merchandise. You can get anywhere from $100 to $150 off high-end swing sets; $25 to $50 off basic swing sets.

Photo Courtesy: Laffy4K’s photostream on Flickr

While there is no official statistic indicating a rise in subletting across America this year, I’m betting this has become an increasingly popular housing strategy, both as renters look to add a roommate or sublet their homes to make extra money, and as subletters look for more flexible month-to-month housing commitments amid the shaky job market. Subletters typically don’t go through lengthy credit checks, either, which is attractive to folks whose credit reports may be on the mend after a foreclosure or recent bankruptcy.

For those seeking to sublet from a renter, either temporarily or for a year or two, there are certain precautions you need to make. Here are three tips.

Make Sure It’s Legal

Whether you find a listing on Craigslist or through a broker, do your due diligence and make sure that subletting is, in fact, legal in the apartment building or housing community. Better yet, make sure it’s even allowed in the town or city. New York’s Governor Patterson recently signed a bill banning short-term subletting in New York City. Starting May 2011 the ban will prevent folks from renting out their apartments for less than 30 days.  Typically these sublets went to vacationers looking for more affordable lodging versus the $374-a-night Hilton Garden Inn by Times Square. You may need the buildinglandlord’s approval or the green light from board members. Ask for permission first. If you’re asked not to contact the building manager, take that as a sign the sublet is not legal.

Get It In Writing

While subletting is less formal than fully leasing a place for a year or two, you should still get everything in writing, signed and notarized. Because sublets are often managed directly by renters, people don’t always go through the necessary paperwork. Don’t settle for an agreement done via email or a “handshake” agreement. In many states, renting or subletting without a contract leaves you and the person you’re subletting from with no rights. There’s no guarantee that you won’t be kicked out on a day’s notice and, in some cases, you can’t be penalized for not paying rent, since technically, there’s norecord of you living at the address. (Don’t get any ideas!) You may be able to find templates for rental agreements online at your state’s real estate board web site. Or, for $15 you can download this form from nolo.com, which helps you set up a standard month-to-month rental agreement. Some important quesitons to answer when you draft the contract: Who do you write the check to each month? What furnishings will be provided? Who will pay for utilities (and how)?

Get a Second Opinion

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My first post this week was on the splitting-of-the-check dilemma.

Dear Farnoosh,

I don’t drink, so I dread going on group dinners where people inevitably order cocktails and/or bottles of wine. When the bill arrives, I always end up paying way more than I had anticipated. How do I gracefully wiggle out of having to bankroll somebody else’s buzz?

Kindly, No Debbie Downer

Dear NDD,

This is a classic situation that unfortunately many of us find ourselves in from time to time. Social outings can totally burn a hole through your wallet if you—and your friends –are not careful or considerate. I was at a 10-person dinner party the other night when my friend took it upon herself to order a few expensive bottles of wine, even though some of us didn’t drink a lick of it. In the end, though, we all shared in the cost because no one spoke up. (I did drink the wine, so I couldn’t exactly complain.) Needless to say, some girls went home grumbling that night.

The solution is not to stay home on Friday nights and miss out on the fun. I have three tricks to help you enjoy being out with your friends, while gracefully dodging the splitting-of-the-check dilemma when all you’ve had is a side salad and tap water.

1. Order A Separate Check When You Sit Down.

Don’t be a buzz kill by requesting a separate check at the end of the night when everyone just wants to split the check. Instead, take control of the situation first thing, as soon as you place your first order.  Become tight with the server and quietly request a separate check as you order your Diet Coke. If nosey friends wonder why you’re keeping a personal tab, explain that you’re just trying to get a better handle on your spending and that it helps you to keep track of your receipts—otherwise you’d never remember how much you paid and how much to budget for the rest of the week. Who knows, your financial savvy might teach your friends a good lesson, too!

2. Feel Free To Explain Your Choice.

Another way to explain to folks at the table why you want a separate check is by saying that you worry you may have to leave on the earlier side and want to keep track of how much you owe. That allows you to reposition your goal in their favor, since you’re only trying to make sure that you pay enough and avoid stiffing them with your bill. “I might have to duck out early,” you say, coolly. Friends will appreciate your desire to pay your fair share.  Of course, this doesn’t mean you have to leave early. It’s more a pre-emptive strike.

3. Arrive After The Group Has Imbibed.

You can show up later in the evening, after everyone’s nice and toasty. My alcohol-free friend Michelle used to always meet us girlfriends towards the tail end of dinner, just in time to pull up a chair and order cappuccino or tea. Seeing that she hadn’t been there for the full night of adult beverages, we never suggested that she split the check. She also never felt awkward for paying only for her own drinks.