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Friday, July 23, 2010
What are your financial commandments?
Anyone who cares about the state of their bottom line -- financial, not physical -- has a set of internalized rules they use to govern their spending and saving behavior.
We're all familiar with the big rules of sensible personal finance, such as:
When buying a house, be sure all your house-related expenses come to no more than 25% of your gross income (or 33% of your net income)
Always do your research and shop around for the best credit rates
Keep an emergency fund in the bank (and maybe an additional repairs fund, or as the Washington Post's Michelle Singletary calls it, the "Life Happens" fund. Her explanation: "the 'life happens fund' is a term I coined to encourage people to save for when things happen in life -- the car breaks down, your kid busts the washing machine, etc. If you don't save for these expenses, you end up depleting your emergency fund, which should be reserved for dire straits situations such as a job loss.")
Never carry a balance on your credit card from month to month
But let's not discount the little rules we all have, consciously or unconsciously -- things like "Never get money at an ATM where I'll have to pay a fee" or "Never buy brand-name groceries."
What are your financial commandments? What are the reasons for your rules? Share your saving or spending creeds at dollarsandsense@sfgate.com.
| Jul 23 at 09:57 AM
Thursday, July 22, 2010
Do you lie to your partner about your spending?
I got this in my in-box yesterday:
A recent survey of more than 200 Americans, commissioned by the national nonprofit organization, CESI Debt Solutions, found that 80% of married couples spend money their spouse does not know about and almost 18.5% of those married people have credit cards their spouse does not know about.
Why hide the debt? Forty-six percent of the debt-hiding spouses say that their partner "doesn't need to know" about the debt in question, while 43% want to avoid an argument and 20% fear their partner knowing about the debt would end the relationship.
Most people are purchasing clothes and shoes on the sly, but meals out and personal-care items come in second and third on the list.
The survey doesn't specify whether this not-knowing-about-spending means "My spouse has no idea that I bought this" or "I may have fudged the price a bit so my partner didn't flip at the news I had bought $300 gloves." Whatever it is, however, it's less than full disclosure about financial activities. In some partnerships, that may not be a big deal; in others, it's considered a major violation of trust.
Some folks consider lying to one's partner about money to be financial infidelity. After all, the person is sneaking around behind their partner's back, lying about their activities, and doing something that could affect their marriage.
However, experts stress, it is important for people to have a degree of financial autonomy. This way, people don't feel pressured to stick to a "family" budget they may have felt railroaded into, but nobody's blowing huge sums of money in surprise purchases. A combination of "mad money" -- cash that's yours to do with as you please -- and a marital agreement to put a dollar limit on how much money each of you can spend on something without giving your spouse a heads-up can go a long way toward clearing up the potential for any sneaking around, moneywise, in your relationship.
Do you maybe provide "modified" accounts of what you're spending to your partner about what you spend? Have you had someone lie to you about household spending? Share your experiences at dollarsandsense@sfgate.com.
| Jul 22 at 09:19 AM
Wednesday, July 21, 2010
Coming to the end of the (land) line
Consumerist's post, "Do You Still Use You Land Line?" hit right as my husband and I were debating whether or not to cancel our land line. It costs us approximately $15 for bare-bones service, and that's $180 we could put toward something else. After all, I reasoned, we never use that phone to call out, and the only people who call us on it are pollsters who hang up the minute one of says we work in the media.
Our land line debate happened because I canceled our long-distance service on the land line. We had only gotten it the year before because a long-distance relative had an ongoing medical emergency and our mobile reception kept crapping out in some corners of the house. Having the land line with the distance service gave us peace of mind. Then the relative got better and the one-year introductory offer expired. After getting a letter welcoming me to the new, doubled rates for the service on a phone I rarely use, I picked up the dusty receiver of our rotary phone and canceled the long distance service. Read More »
| Jul 21 at 09:26 AM
Tuesday, July 20, 2010
Here we go again: Christmas in July
From an Associated Press story, "Stores Push Summertime 'Christmas' Sales," the following:
Retailers are pumping still more energy this year into trying to get shoppers to loosen their purse strings early for Christmas with sparkly ornaments, holiday music and special prices. In July.
Target Corp. is entering the game for the first time, with a one-day online sale starting Friday on 500 items from clothing to Blu-ray disc players that's modeled after sales typically held Thanksgiving weekend. And Sears and Toys R Us are dramatically promoting "Christmas in July" online and in the stores based on the success they saw in last year's efforts.
In addition to Target's mid-summer holiday promotion, both Sears and Toys'R'Us are running seasonal promotions meant to help goose retail sales as shoppers think, "If I buy now, I'll save money later."
Consumers have been reluctant to open their wallets this year, mostly because they're concerned about managing their personal debt levels and keeping their jobs. According to a recent survey by Alix Partners, consumers aren't likely to feel free and easy with their discretionary cash until 2013. So consumers may spend the next few summers fa-la-la-la'ing their ways down the aisles -- if the holiday promos work now.
Since it's the usual cool summer weather here in SF, are you more likely to entertain the thought of stocking up for the holidays now? Share your seasonal spending habits in the comments or at dollarsandsense@sfgate.com.
| Jul 20 at 03:10 PM
Monday, July 19, 2010
What will you -- or won't you -- buy used?
It was a big yard sale weekend on the island, and as I walked by one sale this weekend, I saw a half-bald Christmas wreath, a playpen with a few quarter-sized holes in its mesh and a Cosco car seat with the padding peeling off. Why not? Stranger things have been sold -- or rejected -- by yard salers. I've held yard sales where people snatched up half-burned candles and left untouched beeswax tapers to melt in the sun. We tried to sell this set of six margarita glasses for $3 one year and nobody was interested, but when my mother-in-law put out a twenty-year-old collection of those Ernest & Julio Gallo carafes, they flew off the table.
It got me wondering: Is it true that one person's trash is another one's treasure? Are there some items you should just walk on by for quality, safety or sanitary reasons?
The first one I can think of off the top of my head: baby cribs. Hit the Consumer Product Safety Commission some time and check out how often a crib hits the recall list. It's fine if the person selling the crib was okay with letting their child sleep in a drop-side crib; it does not have to be fine with you.
Second, I tend to avoid LPs, CDs, DVDs or video games because you just don't know what condition the discs may be in. (I will note, however, that my mom unloaded a ton of board games at her last yard sale by going through every game, putting all the pieces in baggies, and putting up a sign assuring everyone that each piece in each game was present and accounted for.)
Another area where judgments vary wildly: upholstered furniture. Thanks to the recent boom in bedbug infestations, can you blame anyone for being paranoid about bringing home some unwanted guests with their new sofa?
(Along those lines: Don't buy mattresses used. You really don't know what's been on there or living in there.)
Finally, this MSN article (which clearly inspired this blog post) highlights a class of consumer goods that has only really taken off in the last decade: consumer electronics. As it points out, you don't know how banged-up that laptop or digital camera was before you got it.
So what pre-owned items can you buy at a yard sale without too much worry? A few suggestions: small kitchen appliances that are still sealed in the box (bread machines, blenders, etc.); baby clothing; books; small wooden furniture; Pyrex or Corningware; glassware; children's toys (so long as they're clean and in good condition); adult clothing; home accessories like vases, mirrors and pictures.
What other items do you feel comfortable picking up from a yard sale? Share in the comments or at dollarsandsense@sfgate.com.
| Jul 19 at 02:05 PM
Friday, July 16, 2010
To do: Get off a bunch of lists in a hurry
I have this whackjob theory that the phone exists for my convenience, not the other way around. And even then, "convenience" only works when the phone calls I get are from people I know. I made sure my landline and mobile numbers were permanently on the National Do Not Call registry. If you haven't signed up, go do it now.
The problem I sometimes have: if I make a charitable donation, that organization often ends up selling my number to other lists. Ideally, charitable groups would have a "Don't sell my data" opt-out right on their donation form. But since they don't, I usually end up asking the person on the other end of the phone to remove my name from whatever list they have.
Speaking of lists ... when was the last time you took steps to reduce your junk mail? Hit the Direct Marketing Association's site to opt out of their member merchants' marketing. However, the Center for a New American Dream warns:
DMA requires a payment of $1 with the mail in form. If you wish to submit the information electronically, it is free, but DMA asks for a credit card to verify your address. DMA does not charge your card. Obviously, giving one’s credit card number makes many people squeamish. And truth be told, asking for your credit card is probably intended in part to discourage people from registering. Nevertheless, the service is legit and registering does reduce your junk mail.
Then, cover your bases by also hitting Abacus, which has a huge database of mailing addresses for store and online catalogs, and fill out their opt-out form. Another option for reducing your unwanted glossies: go to Catalog Choice, a nonprofit service for getting people off catalog mailing lists. (I like that they allow you to specify which catalogs you'd prefer to continue receiving.) The nonprofit 41 Pounds provides a similar service.
If Val-Pak coupons really irk you, you can go to their website to be removed from their rolls; PennySaver has a similar opt-out site.
Finally, while a lot of banks have cracked down on the number of unsolicited credit offers they send out, that doesn't mean it's not annoying to have to shred the few that are still coming in. Go to OptOutPrescreen.com for a five-year OR permanent vacation from all preapproved/prescreened credit and insurance offers.
These steps won't guarantee that your junk mail drops to zero -- anyone who's ever fielded an alumni association magazine knows that those organizations are fiendishly effective at finding you no matter how many times you move -- but they will clear a lot of the telephonic and postal clutter.
Be warned, however: if you hsve a "business relationship" with a company, they can still send you mailers. So if you're an AT&T customer, you're going to field some offers for more AT&T products unless you start calling your way around the company to get the offers to stop.
In addition, a lot of political groups and nonprofits are not bound by the Do Not Mail list. Again, you'll have to contact these groups directly to be taken off their junk-mail rolls.
| Jul 16 at 09:30 AM
Thursday, July 15, 2010
Stock up now for National Ice Cream Day (July 18)
So this Sunday will be National Ice Cream Day, and since the weather this weekend is going to be warm(ish), why not go all out?
If you go to Safeway, you can stock up on all sorts ice cream with a 4-for-$1.99 special: 1.5 quarts of Breyers, a six-pack of Klondike bars, or a big box of Popsicle novelties which, strictly speaking, are not ice cream, but they are icy-cold sweet treats and so should count on July 18. If you're wondering what you'd do with 6 quarts of Breyer's, you can always buy just one 1.5 quart container at Raley's/Nob Hill for $2.99.
This is not to downplay the charms of, say, a pint of Ben & Jerry's, a salted-caramel cone at the Bi-Rite Creamery, or a scoop of cantaloupe at Mitchell's Ice Cream. Or, say, the utility of having a friend with an ice cream machine who can be persuaded to throw a wingding observing this national holiday on Sunday.
Just ... if you can take advantage of ice cream specials, by all means, do so.
| Jul 15 at 03:13 PM
Monday, July 12, 2010
First, it was the tote bags. Now, it's the water bottles
We've covered the question of whether or not you'll haul around your own totes if/when San Francisco gets around to instituting a price-per-shopping-bag practice. Today's question: How do you feel about carrying around your own water bottle?
No doubt, some of you are already doing so -- a carabiner and a SIGG bottle, and you're good to go -- but more of you may have to start.
San Francisco is considering a bottled-water ban at all events on city property. The SF Appeal outlines how this would affect you, namely that you'd no longer be able to buy water at:
festivals, park events, street festivals, etc. as part of the city's zero-waste campaign. This proposal would also affect concerts or parades with city "use agreements" where alcohol consumption is widespread.
It's true that bottled water is never, ever cheap -- not in terms of what you're paying for it, nor in the environmental resources it requires. What I'm wondering is this: Many people have gotten to the point where they at least remember their tote bags are in the car. Are we ready to start remembering our beverage bottles too?
Got any pointers as to where we can get free water bottles? Share at dollarsandsense@sfgate.com.
| Jul 12 at 01:34 PM
Friday, July 09, 2010
What's the biggest cash purchase you've ever made?
It's very easy to charge the big stuff to a credit card. There are good reasons for doing it -- this couch will push my frequent-flyer points into "Go to Europe for free" territory! There are not-so-good reasons for doing it -- if I can't see the money flying out of my account, then it's not really happening, is it? Whatever the reason you reach for a card, you have to admit: There's a level of abstraction in your spending that is not there when you're counting out cash.
In a great interview over on Bundle, Choire Sicha says, "I've never had a credit card or a store charge account. I've always operated cash-only. I have a single debit card and a single bank account. And I've never bought anything that I didn't have the cash for."
Living a cash-only life is not always easy; this MSNBC article from last year points out that sometimes, it can be challenging to actually pay for things (such as online airline reservations). Plus, credit cards do offer a measure of fraud protection, while cash does not.
However, living credit-card free is a great at helping you become a more mindful saver and spender. Instead of using your credit cards as a safety cushion in case of emergency, you're forced to sock away an emergency fund. That, in turn, requires you to have a clear-eyed look at what you think you'd need to feel covered in an emergency. And when you want to buy something, you've got to figure out how to save for it and how long it will take. In both cases, you're far more aware of what drives you to spend, or how saving money makes you feel.
Are any of you on the cash-only lifestyle? And if you are, what is the biggest purchase you've made? How did you feel when handing over the bills/writing the check? Giddy? Panicky? All of the above? Share with dollarsandsense@sfgate.com.
| Jul 09 at 01:26 PM
Wednesday, July 07, 2010
Is your flight canceled? Too bad.
I wanted to alert you all to the latest "Practical Traveler" column in the New York Times, which explains the ways in which airlines do not have to help you if they should cancel the flight you were on. To wit:
1. Thanks to the way airlines write their contract of carriage, the airlines have basically said they don't have to take responsibility if your flight was canceled for any of the following reasons: "bad weather, acts of God, terrorist activities, war, strikes, 'any shortage of labor, fuel or facilities' and 'any event not reasonably foreseen, anticipated or predicted' by the airline." This includes mechanical difficulties too.
2. Consequently, if an airline isn't responsible for the cancellation, it may not be under legal obligation to provide you with anything beyond a refund for the unused portion of your ticket or a seat on the next available flight, if there is a seat.
3. And the days of a food voucher, a hotel room (if you were stranded overnight) or inter-carrier cooperation to get you on to another flight are O-V-E-R. You can ask -- a lot of airlines decide this stuff on a case-by-case basis -- but do not assume.
The onus is on you, the traveler and consumer, to minimize the risk of getting stranded in an airport. Airefare Watchdog has a great, informative post, "Ten tips for avoiding delayed/cancelled flights and what to do if all else fails," that everyone should read and/or memorize before booking their next flight. Among the useful tips:
Avoid connecting flights, and if you must take them, be sure to book plenty of time between legs so you don't miss your next flight. "Plenty of time" should be measured in hours, not minutes, and if you can't get it via an airline's website, call directly and set up an itinerary that has a well-padded connection. Yes, it may cost more. Reducing risk often does.
Avoid chronically late flights. You can find out which flights have rotten on-time departures and arrivals here. Also, try to fly early in the day. Along those lines, check out which airlines have a habit of canceling flights. Maybe avoid those. (Note that some airlines are now more likely to cancel flights, in reaction to the newish federal regulations that levy fines if a plane is delayed on the tarmac for more than three hours.)
Finally, be prepared. If you have a cell phone, preprogram the airline's customer service number so you can call them while waiting in line for your five minutes with the gate agent. It might not hurt to have the flight numbers for later connecting flights, and it especially would not hurt to have flight information for competing carriers. It never hurts to ask if the gate agent can quietly slide you on to another carrier's flight. And finally, pack for comfort; bring snacks or amusements, any medication you might need, and enough cash to withstand the inevitable trips to the newsstand and Aunt Anne's pretzel stand once the sixth hour waiting in the airport lounge draws nigh.
Have you narrowly escaped -- or bravely endured -- a canceled flight lately? Share your strategies for emerging unscathed at dollarsandsense@sfgate.com.
| Jul 07 at 04:47 PM
Dollars and Sense is about finding new ways to inject dollars, cents and sensibility into your everyday spending.
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