Archive for November, 2008
Recessionista, Depressionista, and now Frugalista – where in the word will it end? William Safire, in his November 23, 2008 New York Times Magazine column, has picked Frugalista as his choice for word of the year: http://www.nytimes.com/2008/11/23/magazine/23wwln-safire-t.html
Here are some additonal choices:
Neimanista – one who frequents Neiman Marcus
Jeanista – owner of too many jeans
Jewelista – after all, diamonds are a girls best friend
Shoeista – “She who dies with the most stilletos wins,” Nina Garcia, The One Hundred
Fashionista’s know you can be super stylish even in trying times by mixing expensive and cheaper pieces, checking out designers second lines, remembering that debt is never stylish, and you will live without “fill in the blank.”
November 23rd, 2008
It’s a fine line between super stylish and fashion train wreck. How do the starlets do it? They use a stylist! A little professional help goes a long way. Is it expensive? Not necessarily and, besides, what’s a little extra cash to avoid appearing on the “don’t” page with a black bar across your face? Being labeled as fashion road-kill is never good.
The same is true for your finances. There are a number of experts available to help you get your financial closet in order. Experts include: Accountants, attorneys, financial planners, insurance brokers, investment advisors, realtors, and stockbrokers.
Each does something different and they can be costly. Before you run out and hire one, think about why you want one. Maybe you have a specific life-changing event like a wedding, a new child, a new job, a divorce, or an impending inheritance. Maybe you just have some financial goals you want help achieving. Whatever your reasons, do your homework. And, be sure you interview more than one advisor/planner. After all, if you dress punk, you wouldn’t hire a stylist whose signature look was boho-chic.
November 19th, 2008
I know you are priceless, but what are you worth? And by that, I mean your net worth. What is your net worth? Your net worth is a snap shot of your overall financial health. You measure it by knowing the total value of your assets and your liabilities. What are assets and liabilities?
Put simply, an asset is anything you own with commercial value. Think of an asset this way: can you sell it on EBay? Obviously, some things you own have more value than others. For example, if you own a vintage Burberry trench coat, it has a lot more value than a pair of Seven for All Mankind blue jeans. Real jewelry is worth more than fake. And, the right swimsuit is priceless. Your assets include things like: how much money you have – regardless of whether it’s in cash, a checking account, a savings account, a Money Market, a CD, a stock, bond, mutual or index fund, or 401K, your clothes, your furniture, your car, or your house. If you own something and you can sell it for money, it is an asset.
On the other hand, a liability is an obligation; something you owe. Examples of liabilities include: credit card debt, student loans, car payments, and rent or mortgage payments or any other kind of loan.
If you add up all of your assets and subtract all of your liabilities you know what your net worth is. Why should you know your net worth? The first reason is net worth tells you how you are doing financially overall. The more money you save or the more valuable the items you own, and the less money you owe, the higher your net worth. The second reason is calculating your net worth on a regular basis forces you to check on your accounts. The third reason is net worth can be a motivator. If your net worth is low, there are things you can do to improve it. If your net worth is high, knowing that and continuing to improve it can help you achieve your dreams. Hello [fill in the blank!] A little self competition can go a long way.
To calculate your net worth you need to collect information on your assets. For example, you need to find out your account balances and the current value of your car. You need to find out the current value of your liabilities, for example the current amount you owe on your student debt or car loan. While it can be difficult to collect the information, once you have the information you need, calculating your net worth is easy.
November 17th, 2008
When design intoxication hits and you find yourself with a shopping hangover, remember the fashionable and financially responsible thing to do is return. Your head and your bank account will thank you.
November 13th, 2008
Starbucks earnings are down but McDonald’s are up. In this recession, fewer people are willing to allow themselves upscale indulgences but cannot forgo their daily caffeine fix.
Remember, the little things you spend your money on can really add up. But, you don’t have to completely forgo your mocha latte. Instead go less often, skip the chocolate “fill in the blank,” and order a smaller size. Your wallet and your waistline will thank you.
November 12th, 2008
We love, love our designers. We love their originality, their expression brought to life, expert tailoring and fit, sumptuous fabrics, and most of all their style. When you buy designer, especially in a recession, it is not enough to want the piece – you have to really need it. How to tell? Quick quiz:
- Do you get flushed at first sight of said designer piece?
- Do you dream about this piece?
- Are you dating this piece? Do you keep coming back to the store to “visit” it? Does it have a name?
- Can you see yourself wearing this piece next year? In three years? To bed? Because you can’t imagine taking it off?
- Does it “express” your personality? Does it help you smile and be more bubbly / fun / confident / carefree / exotic / special and overall, feel more amazing?
- Can you afford it—honestly?
If you answered yes to all of the questions above, indulge. Otherwise, wait until you are truly in love.
November 11th, 2008
Beware of giving in-store gift cards this gift giving season. With so many retailers currently struggling, it is hard to know which retailers will be around in the New Year.
When companies file for bankruptcy, like Circuit city just did, a judge determines which debts get paid. Gift cards are way back at the end of the line – they are so far back they can’t even see the velvet rope!
You will not get a refund and the person you bought the gift for will not be able to use the card. Very sad. So if you plan to buy someone a gift card this season, be careful.
November 10th, 2008
As plastic and status are becoming more intertwined, more people are turning to prepaid cards. What is a prepaid card? Prepaid cards are a debit card which has a specific amount of money put on the card by you or someone who loves you. Instead of being linked to a bank account, you, or the nice person buying you the card, tell the bank how much money to put on it and that is all you get – unless you or they add more when you run out.
On the plus side, prepaid cards are safer to use than cash – if you lose them you are protected, cannot get you into the same kind of trouble credit cards can – you cannot run up high interest debt, and are more flexible than single-store gifts cards – you can use them anywhere. You can also use them online for purchases and to pay bills.
However, many prepaid cards charge a fee for almost every single thing you do with them. Want to get a card – there is an issuance fee. Want to sign up – there is an enrollment fee. Want to find out how much is left on the card – teller fee. Lose your card and need a new one – replacement fee. Use the card – transaction fee. Don’t use the card – inactivity fee. Want to put more money on the card – reload fee. All those fees add up quickly, leaving you less money to spend. Why would you waste all that money on fees when the world is swarming with stores just calling your name?
In addition, because they are not linked to a bank account, prepaid cards do not help you build your credit. However, there a few new cards which will report your prepaid card transactions to the credit agencies. In theory, this may help you build a positive profile, but it is unclear.
A financially savvy fashionista knows putting down cash with a flourish is way more stylish than paying prepaid card fee or amassing debt with credit cards.
November 9th, 2008