Haven’t heard of BodenUSA? Up until a few weeks ago, I haven’t either. Then they sent me a catalog and I was enticed into their web of color and style. Don’t click on the link unless you have exceptionally good self-control (don’t say I didn’t warn you).  Boden is a UK retailer who has been in business since the early 1990s. They recently made a big push to get into the US market, hence the updated website (with US sizes) and all the catalogs.

I’ve selected a few of my favorite pieces.  Instead of actually purchasing these clothes, I shall just share them with you instead. And if you do decide to get something, I can live vicariously through you!   By the way, I have never seen any Boden clothes in person, but they purportedly have good quality clothes.  I’d say the pricing is between Banana Republic and J.Crew, but cheaper than Anthropologie.

The styling is lovely – a great balance between classic and ladylike without veering too deeply into girly territory. I also appreciated the variety of purples and plums featured here. Deeper shades of purple can be a great “base” color like black or gray (let me stop before I talk myself into buying that sweater dress).  If you would like to purchase all of the items below, they can become a permanent part of your wardrobe for a mere $842.

Boden Chic Peep Toes in Black/Grape, $148

Boden Well Heeled Boots in Brown, $270 (I had to include this one just because of the name!)

Boden Relaxed Casual Skirt in Coral, $68

Boden Merino Roll Neck Dress in Aubergine, $108

Boden Soho Jacket in Light Navy, $160

Boden Rosette Ribbon Cardigan in Magenta, $88

Copyright 2010 Fall Fashion Picks from Boden USA is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Lately, I have gotten into reading minimalist blogs and fashion blogs.  The former instills in me an urge to get rid of all my stuff and lead a simpler, less cluttered life and the latter makes me want to buy a whole new wardrobe for a more stylish me. Oops.

Instead, I decided to do something different. I’ve read that if you are having trouble deciding what to keep and what to donate / throw away, try this little experiment:

• Pretend that all the clothes you own are on sale.
• If you want to keep particular piece of clothing (say, a sweater, a skirt, or a pair of jeans), you must spend $1 to “buy back” the clothes.
• If you are not willing to spend even a dollar on something, it’s a fairly good sign that that item isn’t doing much for you.

That is what I will do. Every piece of clothing and every pair of shoes will go through the same treatment: Am I willing to pay $2 to “buy it back?” All the money that I am willing to spend to buy back my clothing will go into my Galapagos Fund.

If you would like to join in on the Great Buy Back My Clothes Experiment:

Leave a comment with the following information: (1) the dollar amount of each piece you are buying back – I chose $2, but it’s all up to you, (2) where the money you spend buying back your clothes will go, (3) what is the one piece of clothing / accessories you’d like to add to your wardrobe.

Submit a picture of your outfit (state how much you “bought it back for”) to me by Wednesday, September 22. I will put up the pictures and let the readers vote on the best outfit.  On Wednesday October 6, I will announce the winner, who will receive a $25 gift card to TJ Maxx or Marshalls, thanks to the generous PR folks over there.

Copyright 2010 Buy Back My Clothes Experiment & Giveaway is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Blog & personal updates

• First off, congratulations to the winner of the $60 CSN giveaway: Laura @ So alaurable! I will email you on how to redeem your prize.  Thank you to everyone who entered.
• In other news, I will be doing some writing for the LendingTree blog. So this Labor Day I am working on an article about the Great Recession and Gen Y’s response. Getting paid to think and write about personal finance and Generation Y issues?  How did I get so lucky.
• I have gotten a few emails from readers about an RSS error. My apologies. I have since fixed the link but here it is if you want to sign up for RSS: http://wellheeledblog.com/feed
• My retirement portfolio has gotten to the point that a few bps up or down can have real consequences for the value of my funds. I am in it to win it (over the long haul), but now I understand why it can be so difficult to tune out the noise, especially for people with serious money in the market.
• After more than 3 months away, I have recently gotten back into tango classes and milongas. My strength (and, I even venture to say, grace) is returning. Just another reminder to myself that 1. we should always make time for the things that bring us joy, and 2. it’s never too late to start (or to re-start) doing what we love.

Good reads from the blogosphere

• Martin King Jr. Had a Dream – Do You? @ Enemy of Debt
• My Wedding Vows to Myself @ The Asian Pear
• Real Life vs. Vacation @ Sense to Dollars
• The $100 Discussion @ Punch Debt in the Face
• Bundle Rolls Out My Money Feature @ Gen X Finance
• Undercover Engagement Ring @ Dog Ate My Finances
• 10 Tips to Save on Textbooks @ The Saved Quarter
• Less is More on the Road to Accumulating Wealth @ Money Reasons
• Unconventional Ways to Make Extra Cash @ BlogHer

Copyright 2010 Best of Blogs Link Roundup: Labor Day 2010 is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Debt isn’t just hazardous to your financial well-being, it can destroy your relationships as well.  Just ask one young lady featured in today’s New York Times article.  Three days after she divulged to her fiance that she had over $170,000 in student debt, he broke off the engagement.  For her future relationships, she decides that she needs to share that information much sooner, because it can be a “deal-breaker.”

Still, all of this raises the question: At what point do you have a moral obligation to disclose your indebtedness during courtship? On the eighth date? When you get to third base? In your eHarmony online dating profile?

“It’s a sliding scale,” said Ms. Riesel, the Manhattan lawyer. “It depends on the person and the nature of the relationship.” Ms. Winters, the Short Hills divorce lawyer, said it might depend on your definition of a serious relationship. “But I wouldn’t wait until you were signing leases for apartments or picking out engagement rings.”

With a dual-career couple, it’s not unsurprising to have combined debt levels of hundreds of thousands of dollars. An MBA and a doctor, or a pair of lawyers, for example, can easily graduate with over half a million dollars after their studies.  If both CB and I attend graduate school as planned, we will probably come out with around $100,000-$150,000 in individual debt loads, baring any unexpected windfalls (ahem, lottery, anyone?).  It makes a little easier knowing that any significant debt we incur will be when we are in a relationship together, so no one is blindsided by the topic.

I wonder, though, is there a dollar amount of my significant other’s debt at which I would “walk away” from an otherwise loving and secure relationship?  I would say no.  But I have never been in a situation similar to what was profiled in the New York Times.

Before a relationship gets serious, I believe in a frank discussion about finances, especially on the debt burden, is certainly in order. Whipping out your student loan statement or your credit report is a bit of a mood-killer, so I’d save that discussion until at least the third date!

Questions for readers:

1. If you have significant debt, at what point would you share that information with your significant other?

2. If you are dating someone who has significant debt, at what point do you expect or would want to know that information?

3. Is there an debt amount that is a deal-breaker?

Copyright 2010 Debt is Kiss of Death for Relationship? is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Minimalism seem to be all the rage right now – I see it as a collective reaction against the excesses of the past decade, coupled by the necessity of having to cut back amidst economic uncertainty.  But could you cut back so much that you step over the line between minimalist and cross into moocher territory?

After I read this article, “The Cult of less” in the BBC, I think the answer is yes. The article features Chris Yurista, a D.C. travel agent and DJ who says that technology has replaced the need for most of his possessions and even a physical home.

Since boxing up his physical possessions and getting rid of his home, Mr Yurista has taken to the streets with a backpack full of designer clothing, a laptop, an external hard drive, a small piano keyboard and a bicycle – an armful of goods that totals over $3,000 (£1,890) in value.

The DJ has replaced his bed with friends’ couches, paper bills with online banking, and a record collection containing nearly 2,000 albums with an external hard drive with DJ software and nearly 13,000 MP3s.

That’s great and all – who doesn’t aspire to a life filled with meaning, not clutter? But I wonder what Mr. Yurista’s friends have to say about his lifestyle.  To be fair, he could be chipping in for rent and utilities (or do other things to thank his friends for their hospitality) and the article just didn’t mention them.  Or, perhaps Chris has access to cheap or discounted hotel rooms through his job, and he only leans on his friends for infrequent overnight visits.

If that were the case, then BC has done Mr. Yurista a disservice by portraying him so unsympathetically – the blogosphere is already pointing out the paradox: in order to live a minimalist, residence-free lifestyle, you have to find people who ARE willing to rent an apartment and pay for utilities.

If this wave of minimalism will help us reexamine our relationship with “stuff,” that’s great.  If Chris Yurista were building his digital, rent-free lifestyle on the backs of his stuff-carrying, rent-paying compatriots, however, then he might be a minimalist, but he is also a moocher.

Where does minimalism end and mooching begins?

Copyright 2010 The Thin Line Between Minimalist & Moocher is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

The economic recovery is sputtering and the talks of double dip recession is at an all-time high.  In these tough times, it is common to have friends and family members who are undergoing hardships. Some of them may be coming to you for help. Should you consider lending money to your friends and family?  On the flip side of the coin, if you are in trouble, should you reach out to loved ones for financial assistance?

If you are considering lending money:

1. Is it money you can afford to lose?

If this is money you need to start the small business you’ve been planning for years, or money for a down payment you will need in six month, or college tuition for your 17-year-old child – don’t lend it! Because the worse case scenario may happen and you won’t get this money back. Therefore, it’s a good idea to be emotionally and financially ready for nonpayment before you write that personal check.

2. Do you trust the borrower’s financial acumen, fiscal discipline, and integrity?

Notice how the question to ask isn’t “Is the borrower a good person?” or “Does he really need the money?” If you are considering lending money to a friend or relative, the answer to those questions is probably yes. But some very good and kind-hearted people are less-than-great stewards of money. If you want to have a realistic chance of getting your money back, you have to make sure the borrower is able and willing to repay you.

3. Can you make a gift of money instead?

Lending turns normal relationships into bank and borrower – an awkward situation even among the closest of loved ones. If you are uncomfortable with lending money but still want to help your friend or relative, why not give money instead? You will feel good about helping without the headaches of being a lender.

If you are considering borrowing money:

1. Do you have a realistic prospect of repaying this loan in a timely manner?

If not, then don’t borrow the money. Relationships damaged by lack of repayment are difficult to repair – I venture to say that if the amount is large enough, those relationships can never be repaired. For example, John might be on the verge of losing his car and need $5,000 to keep away the repo man. But if he have no prospect of repaying that $5,000, he need to think long and hard before he asks his best friend for the money. It is terrible to lose a car, especially if it’s your only mode of transportation. But it is far worse to lose a true friendship.

2. Can you make sacrifices and forgo much discretionary spending before you have repaid the loan in full?

We have all heard stories of the borrower who is unable to repay $300, but has just come back from a Bahamas vacation. It might not be fair, but it’s human nature: if you borrow money from friends or family, they will probably be aware of what you are spending your money on.

3. Is there some other way friend/family can help?

Asking for money is hard to do. If some other type of assistance is useful, try to ask for help in that regard instead.  For example, if you are job-hunting and you have a friend who is an HR officer, ask her to review your resume and put you in touch with a few informational interviews.

Money and family is always a tricky subject. In general, the proverb “neither a borrower nor a lender be” strikes me as a fairly good standard to go by when it comes to mixing finance with family or friends.  But, of course, personal finance is never just about money.  If my family needed money, I would do what I can to help.

Have you ever lend to or borrowed from your family / friends? How did that experience work out?

Copyright 2010 Personal Loans to Friends and Family: What to ask before you lend or borrow is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

“Those who say that money can’t buy happiness aren’t doing it right.”  Have you heard that joke before?  Well, it turns out that there is more than a kernel of truth in there. People are generally bad at buying happiness because:

1. We buy to keep up with the Joneses / stay on the hedonic treadmill.

Heard of the hedonic treadmill? That is the phenomenon where you upgrade and the new purchase keeps you happy for a while, but its allure eventually wears off and you are right back where you started: as happy (or as unhappy) as before, perhaps dreaming of the next upgrade or new purchase. The problem with constantly one-upping is that the cycle never ends.  For example, maybe we love BMWs and want to drive a 335i.  We worked hard, got a promotion, or maybe came into a small inheritance.  That creamy 335i coupe is in hand.  Even though we may be perfectly excited and happy driving the 3-series, let’s say a new neighbor moves in and has a sleek 5-series. Wouldn’t it be nice to drive a five, we might muse (and are obviously impressed by the clever rhyme of our inner thought). Hear those rumblings of discontent? That’s the hedonic treadmill powering up again.

2. We go into consumer debt from our purchases.

Money is a big source of stress for many Americans. Most consumer debt exacts a heavy financial price – credit card interest rates often top 20%.  If you just pay the minimum on credit cards for your purchase, a $100 pair of sunglasses can turn out to cost you almost double that amount.  Debt eats into our future earnings – when we are still paying, at 35, for a car we bought at 29, it’s not difficult to imagine why we might be less than pleased with our 20-something-self. Even the best, most suitable purchase will be marred by the pressure of unsustainable debt. If we buy a boat because we loves sailing, but then have no way of repaying our note, we will not be enjoying the ocean view for long (because the boat will be, ahem, underwater).

3. We buy things that we know we won’t or can’t use.

Have you ever found the perfect pair of perfect stacked pumps for 80% off, and by “perfect” you mean it is half size smaller than your normal shoe size, the heel is much too high, and the color is a shade off flattering? Oh, you haven’t?  Must be just me then.  Despite the characteristics noted above, I bought the shoes.  I wore them twice (winching with every step and feeling very uncomfortable and unhappy).  Then I gave them away.  Not every purchase has to be useful, but I’ve found that utility and comfort goes a long way in making me happy with what I buy.

4. We over-buy in quality or quantity.

This happens when we buy something with the intention of doing something good, but the item is never used (because it is too complicated or simply unnecessary for our purpose). Then the item only makes us feel bad about ourselves. For example, buying a new camera to improve photography skills, or buying a dutch oven to make grandma’s braised ribs. If we don’t use those items, however, the camera and the cookware will sit there, gather dust, and remind us of all the things that we have NOT accomplished. Oh, and our bank accounts will be smaller for it.

5. We second-guess our selection and imagine the superiority of that which we did not choose.

Barry Schwarz called this the paradox of choice. Instead of feeling empowered by all the options available to us, we are overwhelmed. After we make a decision (even though the outcome is good), we imagine that the choices we did not select – the roads NOT taken – are the superior path. I realize that I suffer this discontent when it comes to ordering at nice restaurants. I may think, this osso bucco is tender and juicy, and the sauteed mushrooms is excellent. But, wait, a tiny voice in my head would pop up with annoying regularity, what about that grilled seabass? Maybe that dish is EVEN better. Or how about the lobster macroni and cheese? I should be 100% enjoying my osso bucco, but I am plagued by questions of what if.  What if there is something even more delicious, and I’ve just missed my chance – and have spent my dining out budget for the month!?  (I… take food seriously.)

6. We tend to buy things instead of experiences.

The standard line is that experience (vacation) trumps stuff (plasma TV).  This is not a hard-and-fast rule because things facilitate our experience (watching a football game with the guys on a big-screen TV), while experiences can be remembered and cherished through things (a photo album of a Paris long weekend).  Generally speaking, people tend to derive greater happiness from experiences because an experience only gets better with time. Our memories smudge out the horrid long lines at the airport, and deepen the excitement of a helicopter tour.  With things, the depreciation is fast and furious, and there is always the next upgrade, just around the corner.  So, the average consumer will likely be happier spending $10,000 on trip instead of $10,000 on a slightly larger home. Along the same vein, I am happier spending $20 on a tango class than $20 on a new skirt.

Do you fall prey to anything in this post? What tips do you have for buying happiness?

Copyright 2010 Why We Are So Bad at Buying Happiness is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

If you are brave, on a budget, and still looking for stylish hair, head to your nearest beauty school.

Beauty school haircuts are one of the easiest ways to save on haircuts and hair treatments. For example, my regular stylist charges $60 total, including tip, for a wash, cut, and blow-dry. The expenses add up quickly.  At the beauty school I went to (thanks to Revanche for the introduction!), a cut is $12 by first-year students and $15 by second-year students.

A simple cut takes about an hour and a half, including a very relaxing wash, the actual cut and then the styling at the end. A teacher walks around the salon and supervises the students. The first time I went, my stylist was a chatty petite lady who apparently was a very good student – when she asked the instructor to examine my layers, the instructor measured my hair on both sides and made sure they were even, but she didn’t have to fix anything.

At the end, I gave my stylist a $3 tip, bringing the total cost of my haircut to $15, or a quarter of what it had cost at the salon I used to go to. I really love my cut, and to be honest, I couldn’t tell a difference in the result between what the student did and what my very talented stylist had done.

Still, beauty school haircuts aren’t for everyone. If you go, you should:

• Know thyself. You can get a bad haircut anywhere, but at beauty schools the chances are greater. Even though students may be well-trained, they are still less experienced than stylists working in salons. If the prospect of a less-than-perfect haircut makes you feel sick to your stomach, then beauty school haircuts aren’t worth the stress.

• Be clear about how you want your hair to look. If you don’t communicate what you want, the student may exercise his or her right to be creative. This may or may not be a good thing. Tread carefully.

• Have a flexible schedule. Most schools only cut during school hours (i.e. during the work day), although some schools have night-time classes. If night sessions are offered, they fill up quickly.

• Understand you can’t have a specific student. If you go to a school once and you love your stylist, that student can very well have graduated by the time you come back for another cut. This is what happened to me. I loved my first stylist, whom I really thought was a superstar. My second stylist was slower and less confident, but in the end she did an OK job.

• Have patience. My cut was straight-forward: simple round layers and two inches to trim off the ends. It still took almost 2 hours to finish (and I declined the blow dry at the end). Many times the student has to wait for instructor approval before he/she can move on to the next layer. If the beauty school had been busier, it may have taken even longer.

• Be realistic. If your hair is very curly, very damaged, or has a texture that even pros have had difficulty cutting well in the past, don’t risk beauty school haircuts. Go to a trusted stylist.  I have fairly run-of-the-mill wavy hair, so I was fine with a student wielding scissors behind me.

• Relax (at least a little). In the end, hair is just hair. As long as the student don’t burn it off or give you a drastic bowl haircut, a bad cut can always be fixed. Enjoy the process of beauty school haircuts – and the savings!

A version of this article was first posted at BlogHer.

Copyright 2010 Beauty School Haircuts: Style for the Cheap and Intrepid is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Because who doesn’t like a free $60? I am happy to announce a giveaway sponsored by CSN Stores, owners of over 200 sites that offer everything from dining room sets to the kitchen sink.

You can enter in the following ways:

(A) up to 3 entries = Follow @WellHeeledBlog and tweet this giveaway once a day with this message: Win $60 Gift Card @WellHeeledBlog http://www.wellheeledblog.com/?p=5047

(B) 2 entries = blog about this giveaway, include in your post these 2 links: http://www.wellheeledblog.com/?p=5047 and http://csn.com

(C) 2 entries = spread the word on Facebook by writing about this giveaway on your wall, include the link: http://www.wellheeledblog.com/?p=5047

(D) 2 entries = write a review of Well-Heeled Blog on Alexa

(E) 2 entries = sign up for WellHeeled Blog’s RSS updates or email updates. If you are already a subscriber, just let me know and you will be counted.

**If you’ve done any of the above, please leave a comment and let me know how you have entered so I can count your entries. 

Deadline is September 1st at midnight PST. Good luck. Thank you for entering this contest and thanks to CSN Stores for making this possible!

Copyright 2010 Win $60 Gift Card to CSN Stores is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Do you have a car? Do you pay under $100 a month to park your car? If so, chances are you are enjoying an effective subsidy.  And by “you,” I am also talking about me. I have never thought much about the cost of parking (except when I had to valet my car in trendy parts of town).  In fact, I have come to expect free parking as the norm, or heavily subsidized parking at public garages / meters for $1 or $2 per hour.

Why free parking exacts a heavy cost

New York Times’ Tyler Cowen argues that free parking exact a heavy environmental and financial cost: motorists are more likely to drive when they don’t have to shoulder the true cost of parking, cash-strapped cities and states cannot charge enough to increase their revenue, and perhaps most importantly, we do not feel the sense of urgency in developing adequate public transportation systems as we would if we had to pay the true cost of automobile usage.

According to this article,

Under a more sensible policy, a parking space that is currently free could cost at least $100 a month — and maybe much more — in many American cities and suburbs. At the bottom end of that estimate, if a commuter drives to work 20 days a month, current parking policy offers a subsidy of $5 a day — which is more than the gas and wear-and-tear costs of many round-trip commutes. In essence, the parking subsidy outweighs many of the other costs of driving, including the gasoline tax.

Gulp. This article hits home for me because ever since I started my job 30 miles away, I have been a heavy user of my car and of my office’s parking space.  In fact, one of the reasons we chose our current apartment is that the complex offered two parking spots for our unit.

Somewhat selfishly, I am glad that I benefit from free and heavily subsidized parking I receive on the streets near my apartment, at work, and at restaurants and cafes. There is truly no good alternatives for a car where I live right now.  Although I live close enough to a subway station that I thought taking the metro might be a possibility, the nearest drop off point from my work is more than 15 miles away.

What if free parking went away?

If I had to pay $100 a month to park my car at home and another $100 to park at work, I will have to cough up the cash and keep on driving. If CB had to pay $100 a month to park his car, though, he might be in a position to rethink having a car – it is possible to get from our home to his work on the subway for around $250 a month. That amount is currently more than what he is paying for his car in gas – add in the convenience of the car (especially on the weekends), it’s not worth it for him to pay an additional $250 a month to take the subway. If, however, he would have to pay, say, $200 extra a month to park at home and at work, then the incentives obviously shift more in favor of using public transportation for commute.

In many large cities such as New York, Boston, San Francisco, and even in Los Angeles, it is possible to go without a car if you live right in the center of town near public transportation and you don’t work in the suburbs. Unfortunately, that’s not the case for most of us.

Do you benefit from free parking? If you had to pay $100 per month for a parking spot, how would you change (or not change) your behavior?

Copyright 2010 The High Cost of Free Parking is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

“Can I afford it?” sounds like an easy question, but… is it?

Recently, I came across an article by Penny Saver guest-posting on Frugal Confessions.  Penny, also the author of The Saved Quarter, is mom of two who has experienced some hard times during this economic downturn. She used to say “I can’t afford it,” but now she has decided to change her attitude towards money – and the way language she uses.

I also decided to stop saying, “I can’t afford it,” especially in front of my kids. It puts the position of power on the money or the thing rather than on me and my choices. There are things I genuinely can’t afford, like a mansion or airplane, but most of the things that I say I can’t afford are really things I could but choose not to spend my money on. I could choose to buy a cheap toy for momentary pleasure, or I could save that money for financial security. Which is closer in line with my value system? Which is better for my family?

I encourage you to read her post in its entirety and read the comments.  Penny’s post led me to think… what is the definition of “afford”? I once passed up a $1,000 vacation, and yet I am planning on taking on six-figure debt for graduate school in the future.  Obviously, I can argue that further education is an investment in my future while the vacation was a pure luxury good, but the stark difference in amount remains.  Once you run the numbers, it may be quite clear that I CAN afford my vacation (if by afford I mean my assets less liabilities exceeds the $1,000 mark), whereas by the same definition I would NOT be able to afford the graduate degree.  But of course that’s not quite the way I am thinking of it.

I’ve decided that I can’t afford to NOT pay myself first, so my retirement and emergency savings comes first.  Whatever money is left over is for me to distribute as I see fit: this means that I can afford a not insignificant list of things – especially compared to the world at large – such as a Disney World vacation, gas for my car, rent for an apartment in an expensive part of the country (although not expensive by California’s standards).  There are, however, things that are just plain out of my league.  Take a ride into space, for example (unless I come into $20 million suddenly).  In the vast distance between a multi-million dollar jaunt to the International Space Station and a $30 tank of gas, there are obviously a wide range of things that I can individually pay for and many fewer things that I can afford in a financially-prudent manner.

Here’s what I think about when I ask myself – can I afford it?

• Will this purchase take away from paying myself first?
• Does it require me to go into debt? If it does, is this debt sustainable, well-planned out, and for something that will help me in the long-run?
• Does it fit into my long-term financial goals?
• Is it worth all the hard work I’ve put into making this money?
• Will it make me happier and more well-rounded as a person? Really, really happy?
• Can I justify the purchase to Mom? (Not because I need her to OK every dollar I spend, of course, but because I value her opinion and confidence. And the scary thing is, my mother is almost always right).

So is affordability all just a choice of how we spend our money?  What is this concept of what we can afford, and how do you answer the “Can I afford it?” question for yourself?

Copyright 2010 The Definition of “Afford” is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Focus groups: the basics

Focus groups (or paid market research studies) are qualitative marketing studies in which participants are asked about their perceptions or attitudes. These market studies are interested in certain demographics for different studies. To evaluate if you qualify for a particular study, you usually need to answer questions on your age range, gender, employment, zip codes, etc. Most of the time, more details are required. Studies have preliminary surveys that you must fill out to be considered — these surveys are not paid — their purpose is to determine your appropriateness for the study.

Why participate in focus groups?

Because focus groups are an easy and fun way to make extra cash, especially if you are someone who has a flexible schedule during the week day (for example: college students, retired people, freelancers, job seekers, etc.).

Marketers look for specific characteristics in their participants. For example, if a pharmaceutical company is running a study on children’s aspirin, market researchers may ask for mothers who are between the ages of 24 to 40 with a child who is under the age of 12.  A lobbying firm conducting research on political affiliation and voter behavior may ask for registered Democrats or Republicans who are in their 30s to 40s. Once you are in a study, you will interact with the market researcher and with other group members. You will give your opinion on the product or promotion the researchers wish to evaluate. Focus groups are usually in person, but a minority might be conducted via Internet or over the phone.

Where to find these paid opportunities?

My favorite source for focus groups is Craigslist, which provides a treasure trove of focus group information. Start by searching for any combination of these terms “focus groups,” “paid study,” “paid market research,” “paid marketing study”, etc. You can also sign up for research firms that conduct opinion panels, such as Focus Foward or Focus Pointe Global. I joined Focus Pointe Global’s mailing list and frequently receive preliminary e-mails where, if I qualify, I will be invited to a paid focus group (haven’t been too successful — my demographic must not be in that high of a demand!).

Other sources for focus groups are community newspapers and nonprofit organizations. The easiest $80 I made in high school was when I was selected to join a couple of teenager focus groups run by a nonprofit organization. One group was conducted via phone, so I sat in my pajamas and discussed teen political activism for two hours — I came away from stimulating conversation with an increased desire to be involved and, a few days later, an $80 check. In the words of my 16-year-old self, “That was sweet!”

A few months ago, I participated in a study on cell phones for which I spoke with a market researcher about my cell phone purchasing habits and preferences, such as which type of plan I use, who is my carrier, which features I like (QWERTY keypad, touch pad, sliding screen, etc.). The study took only 30 minutes but netted me $45.

Who should join focus groups

If you have a relatively flexible schedule, enjoy sharing your opinion about a particular product or policy, and you like to earn $30-$60 an hour with minimal work, then you will love participating in focus groups.  And, oh, I just found a study for video game players that pays $100 for a couple hours of talking about video games (which CB will do free of charge!) – forwarded that to him.  But where are my focus groups on personal finance?!

An earlier version of this article was posted on BlogHer.

Copyright 2010 Focus Groups: Make Extra Cash by Sharing Your Opinions is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Starbucks is a genius at busting my budget

Starbucks wifi is a budget buster. Or, rather, Starbucks wifi is MY budget buster. Ever since Starbucks begin its free wireless internet in the middle of July, I have been spending, and spending mightily, at their stores at least 2-3 times a week. Free WiFi has made me step into a coffeehouse at least once a week.

Excuses, excuses

I have an excuse, I tell myself – I live 30 miles away from home.  In heavy  – or even normal – traffic that makes what would normally be a 30-45 minute commute stretch to an agonizingly slow hour or hour and 15-minutes. Going 20 miles an hour is nobody’s idea of fun.  So, instead of trying to fight with all the other unfortunate drivers, I decamp to the Starbucks half a mile from work, flip over my netbook, and spend 2-3 hours surfing the net and writing (like now!).

How much am I spending at Starbucks because of free WiFi?

I am paying for this privilege: every drink cost around $3; $4 if I am feeling like a fancy frappacino. Sometimes I also order a sandwich because I was too busy to eat during the day and so I enter Starbucks famished. A conservative estimate of $5 per visit x 2 visits a week = $10 per week, or $40 to $50 a month.

If I keep that up for a year, I would be drinking 500 big green bucks down the (delicious green-tea-macchiato) drain. Sorry David Bach, I guess my Latte Factor really is costing me a pretty sum. And before all you savvy folks say – the public library! – I checked. There are no libraries that are close by or on the way home, and I’m not sure if they have WiFi even if there were. For the moment, at least, Starbucks seem to be my best option for waiting it out after work.

Copyright 2010 Free Starbucks WiFi: The Budget Buster is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Doesn’t some of the fun of vacations lay in the anticipation, the planning and the daydreaming in the days, weeks, months, or years before the actual vacation takes place?  If so, I am certainly getting some of the pleasures of my Galapagos trip up front.

Last night I did some very early research on Galapagos tours and came across Friendly Planet’s Galapagos Explorer tour, a 9-day (11 days if you include the optional Cuenca excursion) trip through Ecuador and the Galagagos islands.  I love reading Friendly Planet’s well-written itineraries, but most of all I am glad to see that it IS possible to do a Galapagos trip on $5,000 a person – air fare included!

I am still considering cruise-only operators but I am glad that there are more options out there. When the time comes to book the trip, I will be sure to do my due diligence.  From the first glance though, I am very intrigued by the possibility of staying overnight on an island instead of spending the every night on cruises.

Friendly Planet’s pricing makes our $10,000 Galapagos Fund goal seem like a realistic amount, especially because it includes airfare.  Actually, the trips are currently just under $4,000 per person including a 2-day side trip to Cuenca. I figured with inflation / price increases the trip will still be around $5,000 in 3-4 years. Or at least I hope.

We are currently at just a hair above $1,000 in our fund, or 10% of our goal. I hope to end 2010 with another $1,000 so we will be at 20%. It might take us 10,000 steps to get to our goal, but at least we can enjoy the anticipation as we take those steps!

Has anyone traveled with Friendly Planet before, or have traveled to Galapagos? What big trips are you all saving for? Share your stories.

image from friendlyplanet.com

Copyright 2010 The Joy of Vacation (Planning) is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

Recently, I had the opportunity to try out Soap.com, a new website for health and beauty products. I received a $50 gift card and ordered some mineral makeup to test out the site.

The biggest plus I noticed was the fast shipping: if you place an order over $49, you are eligible for free 2-day shipping. My order was just a few cents over $49, and sure enough, I placed my order on Monday night and my product arrived on Wednesday morning. I love that so many household and makeup products are available – you get what you need, when you need it, and then it’s shipped to your home or office for free.

I love Target and Costco, but I don’t like going shopping for these essentials (which might be why I buy giant Costco-sized packages of, well, almost everything). But if you don’t want to lug 5 tons of tissue paper and toothpaste back to your home, or you don’t have enough room in your apartment for stockpiling, Soap.com would be a good website to try.

Copyright 2010 Soap.com Review: Fast Shipping + Lots of Products is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

A recent Business Week article caught my eye, with the title “Americans Buy IPads While Broke in New Abnormal Economy“, it’s hard not to.

There are many interesting points in this article – the gist of it is that consumers are just sick and tired of making so many adjustments since the start of the recession. Now while we are willing to pinch pennies on the small items, we paradoxically are willing to spend big bucks on true luxury items. Indeed, the fact that we are saving $2 by buying store-brand paper towel instead of a national-brand may help us justify that it’s okay to purchase a new $2,000 computer.

The new abnormal has given rise to a nation of schizophrenic consumers. They splurge on high-end discretionary items and cut back on brand-name toothpaste and shampoo.

Ran Kivetz, a professor of marketing at Columbia Business School, has done research on consumer psychology. He says that consumers’ brains lack a line that separates spending from saving. We practice a certain amount of thrift so that we can justify blowing a large sum frivolously, he says.

Have you fallen into the pinching pennies to justify splurges mindset that Professor Kitvetz talks about?

I know I have. I have proudly patted myself on the back when I took advantage of a 2 for 1 deal and snagged an extra tube of toothpaste for the same price, then the next day, perhaps subconsciously emboldened by my earlier thrift, purchased a Groupon package for a local spa. In order to make my savings goals, I really shouldn’t have made that Groupon purchase. The fact that I saved $3 on toothpaste is nice, sure, ($3 is an In-n-Out burger!), but I would have to have gone through quite a few toothpaste for the $3 saving to add up to a $100 spa visit.

Now I consciously remind myself that my true savings is my income less my expenses (which includes taxes, rent, loans, groceries, and all the other incidentals that comes with living).  If I did not spend $10 because I skipped takeout one night but then went and spent $600 on an IPad, I have not saved at all. Instead, I spent $600 whereas I could have spent $610. That’s not to say I shouldn’t get an IPad or that it’s bad to spend – it’s not bad to spend (and in fact it is quite enjoyable, especially if you spend on things that make you happy, which in my case includes food, travel, books, and let’s admit it, clothes).

It IS, however, very important that we don’t subconsciously sabotage our own saving efforts by thinking that we are justified in making certain purchases if we really are not able to afford them.

Copyright 2010 The New Abnormal: Pinching Pennies To Justify Splurges is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

CB and I are planning a little trip to Boston this fall.  Because September / October is considered high season in New England and we are traveling on the weekends, I am finding that everything is more expensive than I had expected.

We’d like to stay in downtown Boston, with easy access to the T (preferably near the Green Line if possible). We will not be renting a car.

My friend found Hotel Marlowe listed for $170-$180 / night on Expedia.com, which is a big discount from the best listed price on the hotel’s website. I am leaning towards that hotel, because it’s nice and in a great location, but at $550 for three nights it’s still a significant cost.  So before I book, I’d like to ask for the collective wisdom of the blog.

If there is something nice for $150 or below, I’d be really happy.  I found a couple of B&B’s and inns that offered rooms in the $130-$140 range, but we’d have to share a bathroom down the hall. Even Hotwire hasn’t turned up anything satisfactory – I see 3 star hotels listed for $165, and at that price I’d rather just get Hotel Marlowe.

Part of me is thinking that as it is a vacation, we should splurge a little. On the other hand, we will already be spending money on the flight and transportation (almost $700 for the both of us) and the food (another $300-$350), it’s probably wise to save a little money on the hotels if we can. On the imaginary third hand, however, let me just admit it: I really want to stay in a nice place.

If you have any suggestions for where to stay in Boston at the end of September / beginning of October, please share!  And between the two hotel choices ($180/night vs. $140/night), which would you choose?

Copyright 2010 Where to Stay in Boston is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.

It seems that I’ve come down with a case of I-want-buy-itis lately.  Even though our economy has been hampered by the lack of consumer demand, this consumer isn’t quite ready to loosen her purse strings yet.  Unfortunately, it appears that retailers are doing a very good job of turning out products that I want.  So here are some things I’ve thought of to talk myself out of shopping, and instead put the money towards saving.

Here are a few ways what I’ve come up with… what are your methods to talk yourself out of shopping?

• The Hours Worked Required Formula: How many hours of after-tax income would it take you to make the money needed to purchase XYZ? If you make $40 per hour, then your take-home pay is probably around $30 per hour. A $3,000 couch will cost you 100 hours (or ~12 8-hour days) to pay off.

• The Wait-Period: Self-impose a 24-hour wait before you purchase anything over $100. More stringent followers of this method might impose an additional 24-hour wait for every $100. If a purchase costs $200, then you would wait a full 48 hours before you buy it. A $300 purchase would require 72 hours of wait time.

• The Compounding Interest Calculation: Figure out the return you can get from the money that you don’t spend and invest instead.  This works best for large-ticket items (think over $10,000), because I don’t find any motivational value from knowing that the $10 I spend on dinner tonight could grow into $43 in 30 years.

• The Look in Your Heart and Ask Do I REALLY Need It: This only works when you are clear-headed and honest with yourself, not when you are so head over heels for that new coupe or iPad or sheath dress from Theory.

• The Do I Have Something Similar Comparison: This works well for electronic gadgets and clothes / shoes. If you have an iPhone, a netbook, a Kindle, and a laptop, then maybe you don’t need an iPad right this moment.  Just maybe.  Or, if you have three black pencil skirts, then it’s probably not a necessity to get a fourth black pencil skirt. Even if it’s got a different waist band than the other three.

• The Regret Factor: Will you regret this purchase in the morning? If you will feel worse about spending $$$ on an impulse buy in the morning than you do now, don’t buy it.  Or at the very least, keep the receipt so you can return it.

• The Big Goal Factor: Can the money be better spent on one of your financial goals such as retirement, mortgage, college, etc? Maybe thinking of your 401K contributions might just be what stops you from swiping your credit card for the lovely, chocolate-brown pebbled leather bowler bag on Gilt (not that I am speaking from experience here. Not at all).

Copyright 2010 How to Talk Yourself Out of Buying and Spending? is a post from Well-Heeled Blog - Personal Finance Blog at the Intersection of Life, Money & Happiness. This feed is for non-commercial purposes only.