Archive for May, 2009
Consumer confidence is up – and most likely your urge to shop. There is a school of thought that suggests as follows: If you see an expensive item which immediately becomes a need – a burning passion you just can’t live without – walk away. If the desire continues unabated for at least five days and you can afford it, go back to the store. If the item is still there, your lust increases on seeing it again, and they have it in your size, congratulations. If it’s not there, or they are out of your size, consider yourself saved by karma. That way, you avoid acting on impulse and can know with certainty that you really want it.
May 26th, 2009
With the current trends towards austerity – how do you maintain your fabulous self? To save money while still looking chic:
- Stretch your manicure/pedicure from two to three weeks (or at least your pedicure)
- Stretch your hair cut to eight weeks
- Go brunette
- Try half a head of highlights instead of a full head (or color instead of bleach)
- Re-learn how to park and skip valet when at restaurants or clubs
- Figure out how to look fabulous at H&M instead of Saks Fifth Avenue
- Skip your facial
- Try a self tanner (tanning salons are bad for you anyway)
- Try a new cheaper cosmetics line
- Try well drinks
- Hit the gym (a monthly membership is usually cheaper than separate Pilates or yoga classes)
- Skip waxing and try shaving
These are just some of the many ways you can cut back and still look great.
May 22nd, 2009
If you want to learn about personal finance, Suze Orman can be terrific. She is knowledgeable and helpful. But she can also be intimidating, patronizing, and borderline mean. Her approach is to treat folks like their nagging mother when they’ve been bad. Regardless of what you think is best for you Suze usually thinks it is a lousy idea. To prove her point, she nags, cajoles, occasionally bullies, and otherwise makes people feel like they are letting her, and more importantly themselves, down.
That said, often she’s right. But there is a healthier way to help folks who want to do a better job managing their money – which doesn’t require scolding. Chances are you already know you should learn more about managing your own money. You often already know the right answer to whatever question you have and, equally as often, you either don’t trust yourself or find managing your money a drag, boring or just plain anxiety producing. (For some, the mere thought of money management drives them to straight to the bar.)
Here’s a dirty little secret that Suze doesn’t want you to know about – finance does not have to always invoke your mother! You don’t have to feel like a “bad” girl every time you want to buy something. On the contrary, finance is a valuable tool you don’t have to dread learning about and understanding. And it can actually be fun – after all the better you understand your finances, what you have and what you don’t, the more you know what can an can’t do. Hello, shopping!
If you’ve read my blog before, you know that most people get into trouble with their money because they don’t create a budget or worse, do, but promptly ignore it. Contrary to what Suze might tell you, this is not a personal failing. The reasons most budgets fail is not because of how you budget – it’s how you use your budget. Attitude is everything. Most budgets fail because they seem to stop you from doing what you want: “It’s not in my budget.” But a good budget really tells you what you can spend. “It’s in my budget.” Start thinking of a budget as a way to help you achieve your life’s goals and dreams. A budget doesn’t tell you what you can’t do, it tells you what you can do. There, isn’t that more fun. No putting you down for your shoe habit. No pointing out what you are doing wrong. Just a reminder that making and using a budget helps you manage your money.
So even if you blow it (or are about too) you can get beat up by Suze or remember,on rare occasions, being bad is good!
http://www.nytimes.com/2009/05/17/magazine/17orman-t.html?hp
May 19th, 2009
Warning: this is a very sad story about a pair of knee high, tan, go-with-everything Jimmy Choo boots. If you truly adore shoes you might want to stop reading. However, I should point out there is a good finance lesson at the end.
I rounded the corner unaware of the tragedy currently unfolding in my closet. There, in the corner, sat my cat with a determined look on his face. (Yes, cats can look determined.) On the floor next to him lay my gorgeous Jimmy Choo boots. These were not ordinary run-of-the-mill boots. These were not even ordinary Jimmy Choo boots – if there is such a thing. These were the perfect height, perfect color, perfect everything boots – the ones that looked fantastic with EVERYTHING – skirts, dresses, nice pants, casual pants, jeans, you name it and that I wore everywhere. These were the Jimmy Choo boots I had purchased on sale at 50% off!
Then, the boot wiggled. I kid you not. So, I did what any respectable woman does when faced with moving footwear – I screamed. My husband ran in. I pointed and shrieked, “my boot moved, grab it!” Peering intently inside he soothingly murmured, “it’s a field mouse, it’s fine. I’ll take it outside for you.” This was, in fact, good news but sadly not the end of my story.
With the mouse now safely free I inspected my boot. Was there blood? I peered inside, no, it was clean. Then my heart stopped. The inside was fine, but the outside….teeth and worse, claw marks. Game over. Cat =1 Boots = 0.
And, so it ends, my tragic tale of woe.
I will try to get them repaired (much cheaper than new boots) however, I do not hold out much hope. So now I am faced with a dilemma: Do I wait to see if I can find them on sale again? Do I bite the bullet and replace them? Do I find a cheaper alternative? Can I justify paying full price by dividing the purchase price by the number of times I plan to wear them? (It’s okay it’s a time honored practice.)
It is these daily decisions, the ones we are faced with constantly that affect our finances. How much we end up spending or saving in a given week, month, or year is the direct result of the decisions we make when faced with the unexpected.
May 11th, 2009
Since you have a finite amount of money with which to make decisions, every decision has consequences. Opportunity cost is what you might be giving up with each decision you make. So consider what something is really costing you – today and in the future. The good news is that opportunity cost is not really a number so, no math. Rather, it is a set of alternatives. For example, if you stay in a less-than-fulfilling relationship, you may be giving up the opportunity to meet a new, more compatible person. And, obviously, if you purchase an outfit at Juicy Couture, unless you have an unlimited shopping budget, you give up the opportunity to purchase something even cuter at Urban Outfitters. In finance, opportunity cost refers to the price you may pay in lost opportunities by choosing one alternative over another. So it behooves you to think about the opportunity cost as you weigh decisions.
As a Fashionista you think about this every day. If I skip dinner for a week or two to pay for those boots, will I be too wiped-out to enjoy wearing them? If I skip on cosmetics to support my Starbucks habit, will I drink my coffee alone? If I use my rent money to buy a whole new wardrobe, will I have a closet to put it in? Opportunity costs loom large in such decisions.
May 5th, 2009