January 13, 2009
The Boston Globe reports that many people, possibly millions, have been seeing unidentified 25-cent charges on their credit card statements.
The charge shows up on statements as coming from “Adele Services” in Melville, N.Y. There is no business by that name listed in Melville, or registered to any business anywhere in New York, for that matter.
Two theories of what is going on have advanced on message boards and among consumer advocates: Someone is trying to find out whether an illegally obtained credit card number will work before making a bigger charge, or they’re trying to rip off tiny amounts from tons of people.
The latter theory has more credibility at the moment. The Better Business Bureau in Louisville reports that, at least so far, those who have been hit with the small charge have yet to get slammed with a bigger charge. The bureau speculates that the number of possible victims could be in the millions.
The article cautions consumers not to just let the charge slide “because that’s what the thieves want.”
Now why on earth would someone allow a false charge to pass on their account? You don’t know if it’s just a tester charge and a prelude to a major shopping spree on your credit card! Feh, I don’t care if it’s a dime they’re charging on my credit card. If I didn’t authorize it, I’m not paying that and the credit card company would be put on notice immediately. No messin’ around with my money!
These babies complete my suit outfit:
I know, they’re not crazy 3 inches beauts like some other bloggers’s selections, but I’m just not coordinated enough to do those shoes justice so I’m going to stick with what I know – comfort with a little twist.
They’re a lot pointier and greener than I expected, but that’s ok.
I’m actually attempting to match my bag and shoes, and using complementary colors to coordinate my outfit instead of using the standard white button down shirt and black suit combo, for the first time in my life ’cause I’m taking this interview seriously. 😉
January 12, 2009
LAL at Living Almost Large and Grace’s comment at Meg’s World of Wealth articulated something I’d been feeling rather strongly this weekend about financial security. Meg’s original article, My 2009 Gift Tax Exclusion, discussed the money gifts she’s received over the years from her family, and Grace’s comment resonated with both LAL and me:
That’s one of the big differences between the truly poor and the middle/upper classes–no one to turn to in a financial emergency.
It’s so very true. This weekend was rough because I realized that I’m running out of time to secure a job before losing this one, and I got scared. And I mean s-c-a-r-e-d.
Frankly, the tizzy was my fault because I read the New York Times knowing that there’s no good news to be had. I should know better. Several articles about layoffs upon layoffs upon terrible economy upon too many overqualified applicants for too few jobs sent me into a Spaz Out.
Yes, I’ve been proactive about formulating an exit strategy, getting my resume out and searching consistently for a good position. And kept busy by cleaning and purging stuff, and dealing with family troubles. It’s more than enough to keep me emotionally even-keeled. But ….
1. I have 8-10 months of emergency money, but it doesn’t take into account the cost of COBRA. (So yeah, the next budget I draw up is for a jobless existence.)
2. An arthritis flare-up this weekend reminded me that I really can’t go without meds or health insurance.
3. Most fundamental: Once I go through that money, and call in one of the loans for extra cash, that’s it. That’s all the money and support I have. That’s the point at which I’d be broke and start going into debt to get by. [Horror]
I had a heck of a time working through it. My bag lady fears were out in full force because as Grace pointed out: I have no one to turn to. Certainly not my parents, and my extended family doesn’t have money to spare. As my friend put it, “You have you.”
I couldn’t understand why my friends pooh-poohed the gravity of the situation. This is the worst economy we’ve seen in how many years? I’ve been searching for months now, and have one paltry lead. [Today, a lead is a lead. I only need one full time job for now. Side income is always welcome.] Lengthy unemployment is a reality for so many people, what makes me special enough to be spared? I’ve always been a go-getter but there is so much that’s out of my hands in this situation.
Anyway, not only was I panicking, I was frustrated, until this morning, that everyone dismissed it as no big deal. It’s because they all have safety nets: they could move home. They could borrow money. They could be given money. They have family members who are an implicitly accepted resource.
In Meg’s second installment, The Effects of Not Having to Struggle Financially, she lists all the things she’s never had to do:
I’ve never had to save for long periods of time before getting something I really wanted. I’ve never had to wonder how to make ends meet that month. I’ve never had to work a job I didn’t like. I’ve never had to say “no” to a trip or dinner or experience because I couldn’t afford it. I don’t have to worry about having health care coverage or getting laid off or not being able to make my mortgage payment.
I’ve lived all of the above for years, but my friends haven’t had to do a single one of those things. She’s got a good point about the probable “deep level of peace and satisfaction that they now have by having gone through all that to get where they are.”
There’s still a long way to go before I reach peace, clearly, but at least I’m more Zen even if my friends can’t understand the mindset that sends me into flurry of worry. They’re just not poor; I’m looking forward to a time when I don’t have to think that way either.
In the quest to purge, purge and purge, I’ll need a few items to maintain a (relatively) paper- and clutter-free existence.
Thus far, through the generosity of friends with technology, I’ve scanned and shredded over twenty pounds of documents from 2004 to 2008. All credit card, banking – both checking and savings- statements, and most bills were switched to paperless billing. A few things like insurance, municipal utilities and rent aren’t online, so a modest stack of that stuff is piling up again.
So, item number one: a scanner. If the printer my relatives gave me two years ago, and my dad commandeered, has a scanner, I’m going to take it back and check that off the list.
Number two, a shredder. Hadn’t budgeted for this yet but should purchase one sometime before my move, or just after. Whenever/however that turns out, that is.
Number three was a media card reader but this was crossed off after I bought a laptop that came equipped with a card reader. Should test it out, then, pictures will return to the blog!
January 9, 2009
Another one acquaintance has succumbed to the I need to own a home NOW syndrome.
Recently engaged, she and her man have been seriously condo-hunting for a few months now, rejoicing in the fact that housing market is ripe with plums for the picking. She’s not made any PB & J declarations, but they’ve gotten pre-approval for a loan so they feel confident in their ability to secure a purchase of a short sale in the next few months before their summer wedding.
Again, in a purely hypothetical sense, if I were to be asked for my advice …. well, my mental alarms are working overtime.
I’m familiar with some aspects of their finances from a few get-togethers:
The fiance, X, is self-employed. A year into running his own business, he’s done well enough for himself that he’s able to cultivate long-term clients rather than taking every short or long term project that comes his way. That’s quite a good direction to develop. He’s made a good 5-figure income. Plus!
They both have retirement accounts – maybe not fully funded, but definitely funded. Plus!
They scaled back their entire wedding and turned it into more of a backyard affair because they didn’t have anything saved for the wedding, and didn’t want to take on another $10-15K of debt. Good move. Plus!
But, they didn’t have anything for the wedding because X spent about 20K on her ring. I’m not saying there’s a “right” amount to spend, just that they are out that much money that could have been for the wedding or their e-fund. Either way: Minus!
His ladylove, Y, is about to lose her job. She doesn’t know when, but a layoff is imminent. Minus!
Y also hasn’t had any success in landing another job that I know of, and because she’s entirely caught up in wedding planning and house-hunting, I can’t imagine that she’s devoted any time to a job search. Minus!
In my eyes, that’d be the most basic of needs in a three-priority situation like this: Find a job, then get married, then buy a home.
Then, too, my other concerns remain:
Tracking routine expenses – Y loves her clothes, accessories, and expensive tech equipment. She also has no head for caring about numbers. (Note: she doesn’t have to be an expert, just willing to pay attention.) That has to stop if they’re taking on a mortgage with one income while accustomed to two.
Health – Neither will have employer-sponsored health insurance after the job loss. They’re young and healthy, but can’t afford any emergencies or accidents (how well can any of us?). It’d be important to have a contingency plan, whether it be buying insurance or setting aside emergency health money. If nothing else, catastrophic health insurance would be a really good idea.
Moving costs – This would include closing costs and associated fees. I’d hope that they don’t end up paying for unnecessary points or junk fees, but as novice home-buyers, that’s always something to watch out for.
Also, while they may pass on purchasing new furnishings right into their new gates, some maintenance issues will probably come up. They’re looking at short sales, and the condition of those homes are not going to be the same as that of a new build.
Taxes – self-employment, primarily, for both. X, of course, will have planned better for his upcoming tax bill, and Y might have since she did have some contractor income. Those will have to be addressed some time this year.
And I don’t know when property taxes are assessed, but can they afford property taxes? Are they prepared?
Not to be the ultimate party-pooper, but I would strongly urge them to re-assess the commitment they’re about to make together. To the home purchase, not to each other! I think their relationship is fine, but can see how making a hasty, major purchase could strain even the strongest marriage.
What do y’all think? Have I missed anything else?
And what would you do in this situation? Do you think my caution, concern and conservatism are (perhaps, wildly) misplaced?
January 8, 2009
Guess the no-bonus unlove was some sort of mistake. Corporate will be cutting a new one and sending it out to me in the amount of ….. not very much!
I’m not complaining, nor am I surprised that it’s only going to be $300. It’s not even being called a bonus, it’s marked as a Holiday Gift.
Guess I’m just bemused. We’ve been “spoiled” in the past by the generous bonuses, and they were all instrumental in my progress through the years, but my budget never hinged on them. (Thank goodness!)
Hah, it just occurred to me that it’s so small that I don’t even have to worry about how this impacts the tax planning. Every cloud and silver lining, right?
Anyway, it’ll probably go right into the emergency fund, that’ll be nice.
January 7, 2009
There have been more careless spending times in my life, but the last few weeks have to be right up there with the best (worst?) of them. It looks like I’ve just been wildly swiping my credit card, always picking the one with the best rewards as applicable, of course, so I was a little spazzed about reviewing the totals. Looks like it wasn’t too bad, though, and most of the spending was really goal-oriented: work or health.
Many of the expenses were intended to draw down the remainder of my 2008 FSA account:
4 doctor’s appointments: $60
Prescriptions, new or refills: $19.90
Massage therapy for my medical condition: $55, I hate that stress costs me real money, but it sure teaches me to take better care of myself. And it was budgeted.
Actually, I managed to max out the 08 FSA before I was through. That bumped my eyeglasses replacement order to January.
2009 FSA:
New eyeglasses: $39, after my health care plan’s credit was deducted. Since I’m a novice eyeglasses wearer, and was too harried to properly measure my face, it was worth the time and money to go through my medical plan.
The optician spent a lot of time discussing the options: explaining that the polycarbonate plastic lenses are guaranteed never to break, that silicon nose pads were recommended and swapped them out for me, trimmed the length of the arms and fit them to my face. These were all services that a mail order store couldn’t have performed to my satisfaction. Heck, I didn’t even know to ask about adjusting the length of the arms in the first place! It seemed like a stupid question at the time, but it was even stupider not asking when the glasses were first scripted out.
Nyquil/Dayquil:
$12. Some virus is going around and the orange and green pills are keeping me functional.
Other OTC drugs:
$? Still need to stock up on pain relievers and probably some more cold/flu medication.
Clothing/shoes:
Suit: $11, best deal ever!
Shoes: $30, um, not the best deal ever. But it’s for a good purpose! Matching is a good purpose.
Tailoring: $?, will know the estimate once the jacket and two shirts are dropped off for nips and tucks.
Eating out:
Again, it felt like we ate out a lot. We did more frequently than I’m accustomed to, but it was a combination of eating away from home and eating out. The former was just eating meals at friends’s homes while visiting, while the latter probably consisted of 4 meals for a total of $25.
Just got another email asking if we’re up for dinner, drinks or pool tonight before the last friend straggles back home to NorCal, though.
Happily, lots of the fun stuff was free: hanging out with friends at their houses, watching shows and movies they already had, opening presents that we’d already spent on, etc.
Regardless of the intent, I don’t want to get in the habit of mindlessly spending. It’s way too easy to stop thinking about whether or not I need that item, and just buy ’cause I want it.
