About sixteen years ago, I met him for the first time. My trainwreck sibling brought home this adorable puppy he had no business adopting because he had not one thing in his life that wasn’t a mess. I was furious at my sibling – he didn’t even take care of himself, how could he drag
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September 3, 2009
*Slightly edited for public consumption. This was written for a young relative who had never before evinced interest in the financial world, not even in the spending of money. Said relative approached me asking for some guidance on which credit card to get as the age of 21 was fast approaching and, ambivalently, “perhaps it’s time.” *
Dearest Relative,
Once upon a time, I used cardoffers.com to earn extra bonuses when applying for new credit cards; if you applied through their site, they’d offer to pay you an extra amount of cash (from $10-$75) depending on the card. I’ve gone through it and I don’t see any good cards with an extra freebie this time so I’m going to say, for your purposes, the Citi Forward card is good.
Read the two following posts on the cards for more on what is offered, what you need to do, and how to max out the benefits of the card:
Jonathan’s guide to $100 bonuses from credit cards (accessed 08.15.09)
Jonathan’s review of the Citi Forward card
If you were willing to take the extra time (probably 30 minutes total over the life of the deal), I would suggest applying for the AMEX Starwood at the same time as the Citi Forward. If you get approved: activate it, make a tiny tiny purchase of a dollar or two to generate the bonus points, cash the points out, and call to cancel the card a few months down the road. It’ll nab you an extra $100 of spending money right off the bat. Not a bad thing to have in the wallet since gift cards don’t expire in CA.
As you get older and start using cards more regularly (and responsibly! I have to add that, you know that), I would recommend that you pick a second and third back-up card just in case there are problems with your original card.**
A few reasons this is worthwhile: as long as you are responsible with your spending, it’s a fantastic back-up for purchase protection. If you were overcharged for something, and discovered it when you got home, you can be outta luck if you paid cash and the store refuses to acknowledge the mistake.
Building your credit history with just a few cards (you just have to have them, pay them in full, on time, don’t believe that BS about having to carry a balance to build history) is useful. And the longer your credit history is, the better it is. It takes years, so this is a long term issue.
Another side of purchase protection: safety! It’s not safe for you to carry tons of cash, and checks can very easily expose you to the risk of identity theft/fraud since your name, address and sometimes phone number are all printed on the check. If it can happen to Bernanke’s wife, it can happen to you! When you’re making a big purchase, you can put it on your card and pay it off when you get home.
** For example, my go-to credit card was out of commission when I was on my cross-country trip, I had to wait 7-10 business days for them to send the new card. I had other cards I don’t use as much but ready to go in my wallet so I didn’t have to withdraw a ton of cash or carry a debit card and lots of cash on me while traveling in the city. The great thing about American Express cards, at least before the recession, was that they would always overnight you a replacement card free of charge. I don’t know if they still do now, but it was a cool and handy perk.**
As always, the key tenets to using credit cards responsibly is to make sure they work for you by not carrying a balance and being subject to interest charges, always pay on time to avoid late fees and two-cycle billing (to be explained at a later date), and be certain you have the cash to cover the charge.
When you’re ready for more financial basics, let me know. I’m more than happy to whip up more cool sensible advice you want to hear. š
September 2, 2009
Today we put together one of our almost-frugally creative meals: bought a large bag of chips and juice boxes from Trader Joe’s for double the volume, if not half the price, and used a BOGO coupon at the sandwich place for $7. The sandwiches are something like a cross between Subway and Quiznos, but much better overall.
It got me thinking about the advertising and coupon model. I know most businesses (should) have a line item or budget for advertising expenses, but for simplicity’s sake, let’s assume that at the end of the day, the income generated needs to cover all outflow.
A bit of research into Val-Pak revealed that I can’t get pricing for the actual cooperative mail campaign, which is basically those blue envelopes you see in the mail chock full of coupon goodness, but they do estimate that your reach is 400k potential customers in a given time period.
Many restaurants are advertising during this economic slump, and two for one deals seem most common. Sit down eateries tend to offer one free entree with the purchase of one full priced entree plus two beverages, or some variation on that theme. Much like gas stations, the sandwich shop expects to recoup revenue in the form of extras: drinks, chips, and salads on the side. I think we all know by now that drinks carry huge profit margins for the restaurant, and a commonly touted cost-reduction strategy is to drink water instead of the highly overpriced soda.
But how many people really do spend the extra money on chips, drinks, and side salads? How many need to, of those that use the coupons, for the business to recoup the coupon discount? And how many MORE are needed to make up for those of us who only use the coupon as intended without buying extras? And in addition to all that, how much did they spend on advertising in those Valu-Paks in the first place?
September 1, 2009
Might as well call it an All-Spend day!
1. Returned stuff to Kohl’s. Forget $10 off $20 coupon, so didn’t pick up a few things which means I’ll have to make another trip some other time.
2. Dropped off dry cleaning: $6. They’ll get it done by tomorrow. Why do the turnaround times vary SO MUCH? Some things are done next day, others are scheduled for a 6 day pick up. Weird.
3. Starbucks, $1.10. Fruitless attempt to use their free wi-fi to get some work done.
4. Ordered printer, $106 after GC. Estimated ship/delivery time is on the order of two weeks. Rebellious part of me is screeching, order it from Staples and get it in 4 days!! Am studiously ignoring because the saved $25 went straight to a ….
5. CBLDF membership, $25. Chose not to receive any membership premiums (gifts) so that the money will go further.
The Comic Book Legal Defense Fund is dedicated to preserving the first amendment rights of comic book professionals and fight censorship in the United States. As Neil Gaiman (both a comic creator and a CBLDF board member) notes, “abstract political freedoms are a very good thing.”
6. Researched local women’s shelters/charities that accept professional clothing for homeless or battered women. Friend has lots of professional clothing she has no further use for, and she’d like it to go to a good cause. The one I’m thinking of is Dress for Success, but the only Southern California location that accepts clothing is San Diego. Does anyone have any suggestions?
More to do, but working on #6 until I’m through. This is a rare attempt to NOT multitask.
Note: It’s official. The iPhone is smarter than I. At Starbucks, while I struggled to get away from the we’re-gonna-charge-you T-Mobile hotspot, struggled to connect through the AT&T hub, and then find my username and password, the iPhone had quietly hijacked my single 2-hour daily session and was merrily checking email. All. On. Its. Own. It didn’t even need to log in!! Jerk!
As this recession plods on, this list may become relevant or useful in your life. (I surely hope not!) But if it does, now you too can avoid foot-in-mouth disease!
Courtesy of WomenCo’s Alice Handley and Tania Khadder:
1. āAre you freaked out?ā [Duh. I mean, unless you’re truly close to this person and know they won’t be freaked out by the suggestion that they should be freaked out, and you can’t tell if they are … don’t put that out there.]
2. āDo you know what you did to deserve it?ā [I’ve got to wonder if people really ask this. Honestly? If you must know the probable cause, try “Do you know what happened?” Maybe.]
3. āYouāre not unemployed, youāre funemployed!ā [Patronizing as all get out. Just DON’T.]
4. āHave you started applying for new jobs yet?ā [They probably have. I should hope they have. But even if they haven’t, still reeling from the shock, I’d just be annoyed at the implication or pressure. But I’m contrary and prefer to be responsible on my own terms, not under pressure.]
5. āHave you thought about temping?ā [Same as above.]
6. āWas it just you? Or did others get laid off too?ā The authors say: This question implies that your friendās layoff is palatable (or not) depending on who else got laid off at the same time. Does it really matter? What if it was just your friend? Do you really want to remind them that they were the only person at their company who was considered expendable on that particular day?
[Personally, maybe because the axe is falling everywhere and I knew my particular situation had zero to do with my personal performance or worth, this didn’t bother me as much.]
7. āHave you filed for unemployment yet?ā Authors: This presumes that your friend is even going to be applying for unemployment in the first place and that heās actually eligible for it. Remember that some people have a hard time admitting that they need outside assistance. Itās hard enough for some of us to accept that we need help (or god forbid, ācharityā) in the first place, let alone having to talk about it to other people.
[Eh. As a PF blogger, if a fellow blogger brought up a layoff I’m sure this would be the first we discussed. Well, that or the emergency fund. As a finance-obsessed layperson, my friends know that I’d be concerned for their financial well-being.]
8. ” I can get you a new job!” [and the job is totally inappropriate] Authors: While the sentiment is appreciated, youāre presuming that the person youāre talking to is totally desperate for a job. A former Director of Marketing probably isnāt interested in waiting tables, and a pastry chef probably wouldnāt want to apply for a job in the Human Resources department.
While itās definitely good to keep an eye out for your friends, donāt assume theyāll do just anything for a living. If you want to help, make sure youāre aware of what your friend wants before you start reaching out to contacts.
[Again, sort of duh.]
9. āWhen life gives you lemons, make lemonade!ā “And when life takes away my lemons?”
10. āEverything happens for a reason.ā Authors: To the person being laid off, no reason seems like a very good one ā and right after a layoff, itās not easy to adopt a more long term, philosophical approach. Once the layoff has had time to sink in and the layoffee starts taking steps to get back on their feet, they might be able to see the bigger picture. Until then, be sensitive to their grief and understand that the situation is not ideal. End of story.
[Again, cliches = patronizing.]
My absolute least favorite? 11. You’ll be fine.
Whatever happened to “I’m sorry to hear that, is there anything I can do for you? Do you want to talk about it?”
I’ve heard every single of the above platitudes more than once, and my reaction is basically degrees of annoyance. After a while it stops mattering but still, folks who haven’t had time to digest their new circumstances aren’t going to take it all that well. And if you’re a friend, they deserve a little more thoughtfulness than the drivel most people spout.
Now, do excuse me. I’ve run out of cookies and I desperately need more.
August 31, 2009
| Retirement Savings |
Roth IRA: $4,035
401(a): $9,175
403(b): $20,401
Total: $ 33,611 (31,871)
|
| Emergency Savings |
Catastrophe: $ 35,963
Problem Cushion: $ 1,000
Total: $ 36,963 (36,798)
|
| Short Term Goals |
Car Maintenance: $2,220
Insurance: $2,495
Travel/Con: $863
Taxes: $3,581
Moving: $3,985
Total: $ 12,144 (13,266)
|
| Long Term Goals |
House Down Payment: $102
|
| Investments |
TradeKing: $1,050
Prosper-ish Loan: $12,630
Personal Loan: $1,500
Savings Bond: $362 (current accrued value)
Total: $ 15,542 (15,542)
|
| Total Assets |
Illiquid: $33,611
Semi-Liquid: $15,542
Liquid: $36,963
Expense Acct: $7,500
Goals Savings: $12,246
Total: $ 105,862 (105,463)
|
| Debt and Liabilities |
AmEx: $150
Chase: $260
Rent: $1,360
Total: $ 1,770 (2,134)
|
| Net Worth |
$ 104,092 (103,329)
|
The slight uptick is due to gains in the market, so I’m not going to get excited about “progress” just yet, I won’t trust that these gains will hold.
More bills are coming down the pipeline: we had to replace the last tire standing this weekend. By that I mean, the sole tire that didn’t ever get replaced during the time my mum was damaging tires right and left finally gave up the ghost.
The hunt for a printer all-in-one remains in force; it’s darn near impossible to find a smaller sized machine that is wireless, has an auto-doc feeder, and is reasonably priced. Aggravatory. Then again, the search precluded HP models based on reader and friend feedback, it might be time to remove that injunction.
Oh and of course the net cost of the Miami weekend has yet to bite the pocketbook. Much of the trip was subsidized, my portion was small, but it’s still another little fishie nibbling away at the cash reserves.
Southern California’s on fire again, and not in a good way. (Is it ever?) Between the fires and the over 100 degree heat, we’ve done surprisingly well in not using the a/c. Shading the windows, fans and letting in the coolth from the early mornings keeps the house tolerable. We may survive this summer yet!
August 30, 2009
I really like MoneyMonk’s question in this post:
What are my options to having access to emergency cash in midst of a crisis?
She lists the following “order of financial sources.”
1. Emergency Fund
2. Family/friends
3. HELOC
4. Credit card
5. 401k
Mine is a pretty short list, and doesn’t include credit cards because that’s just borrowing trouble that I might not be able to pay back:
1. Sell stuff, freelance work if poss
2. Cash
3. Roth IRA
4. 403(b)/401(a)
5. I have one relative I might be able to borrow money from, but I seriously doubt I’d ask her unless things were dire. She’s not exactly the best money manager, we’re just close enough to give each other money if necessary.
What does your list look like?
August 28, 2009
It’s been a while since I’ve had reason to CVS or Walgreens (esp now that WG no longer has their FAR program), but I haven’t lost my appreciation of a good deal.
To go you one better, MoneyMateKate is combining good deals with good deeds: the products of her coupon/bargain labor goes to the needy of NYC in the form of Care Packages. She’s expanding her couponing efforts, and if anyone can help her with packets of coupons, they’d be much appreciated. (Mine is in the mail, Kate!)
Take a look at this post which explains her coupon needs, and continue to follow her adventures as she scoops up merchandise for nearly or all the way free to share with those less fortunate.
In this prolonged recession, I’m sure that many are grateful for the basic necessities she’s provided since the usual channels for charity have been overwhelmed with more supplicants than donors. It’s a great way to give, doesn’t take much more than some minimal effort on your part to print and mail, or clip and mail, the coupons and directly goes into the hands of people in need.
She’s also fun and entertaining when she’s not couponing, so you should follow her if you don’t already, anyway! š