Bitter Regrets
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.
Add comment November 13th, 2008
Posts filed under 'Shopping'
Caffeine Fix
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.
Add comment November 12th, 2008
Buying Desinger
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.
Add comment November 11th, 2008
Seasonal Gift Alert: In-Store Gift Cards
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.
Add comment November 10th, 2008
Prepaid Cards – Not in Your Closet
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.
Add comment November 9th, 2008
Credit Cards and Hemlines
Even The Fashion Police can’t arrest this economy. The pain, suffering and torment of “Fashion Don’ts” have been surpassed by recession hell. How did this happen?
Basically, banks and mortgage companies lent a lot of people money they probably shouldn’t have. In turn, people invested in properties which cost more than they could afford. The idea, was that property values would continue to increase (and, why not, they had been for years) and everyone would make money. Everyone forgot that what goes up also comes down.
Fashionista’s already knew this – hemlines fluctuate between micro-mini and trains depending on designer’s collective will. The economy, like skirt lengths, has proved subject to the same kind of whims. In fact, in the 1920s, the economist George Taylor conceived the hemline index, finding that skirts got longer as the economy slowed. Lately, there’s been talk of a haircut index, with short locks signaling a declining economy. Bob’s have been all the rage – perhaps Katie, Posh and Gwyneth are onto something?
The next part of the crunch will be credit cards. A credit card is a small, but powerful, piece of plastic. It allows you to buy something now, today, this minute, when you want it, on credit; meaning you don’t have to pay until the bill comes. Unless you pay the bill in full each month, in return for letting you borrow money credit card companies charge you a fee. These charges are interest and the amount of interest is called the Annual Percentage Rate (or APR). Since there really is no such thing as a free lunch (or dinner…often someone wants SOMETHING for it), credit card companies charge a big fee for letting you borrow money from them.
In the coming weeks and months credit card companies may raise these rates – which means, if you do not pay your bill in full, it will cost you more to use your credit cards. They will also certainly make it harder to get a credit card, transfer balances from one card to another and, if you have a line of credit (an amount of money you are pre-approved to borrow at any time) they may reduce the amount of the line and thus how much you can borrow.
The very best thing you can do for yourself? Pay off any outstanding credit card debt you have as quickly as you can. If that means putting your cards away (out of sight is, after all, out of mind) then do so. The reason for this is so that you have as clean a slate as possible – that way when you need your credit card you will be able to use it.
Add comment October 31st, 2008
Calories Count
Quick: How many calories were in your latte and muffin this morning? What did they cost? How much do you spend on coffee and muffins in one year?
Many women can calculate the amount calories they ate faster than they can add up the cost of those calories (in financial terms – we all know what they will cost us on the treadmill). That ability, while great for our hips, is lousy for our budgets. Often, the little things we spend money on without really thinking about it really add up. That doesn’t mean you shouldn’t have your pleasures, it just means you should think about your money as you spend it.
For example at Starbucks an Iced Café Mocha is $3.10 and a muffin is $2.50. That’s $5.60 without tax. Let’s say you get both on a regular basis (5 days a week). You are spending $28.00 a week, $112.00 per month and $1,456.00 a year. If you were to cut back to 3 days a week, you would be spending $16.80 a week, $67.20 per month and $873.60 a year. By cutting down your habit from 5 days to 3, you could save $582.40 a year. Throw in taxes and you save even more.
What could you do with that money? Where to start? You could buy 1 pair of Manolo Blahnik’s (the ones you thought you could never afford), 2 pairs of Chanel Sunglasses, 3 pairs of $150+ designer jeans, 4 cashmere sweaters from J. Crew … you get the idea. Even better you could save that money (yes, I know what a novel idea – savings). If you saved it, you could earn interest on that money and make even bigger purchases later.
By the way the calories in the Iced Mocha is 320 (Grande, 2% milk and whipped cream) and approximately 420 in the muffin (if blueberry and depending on where you live – different Starbucks buy their pastries from different places).
Add comment October 31st, 2008
Recessionista Shopping
Pleather? Polyvinyl chloride? How’s a girl to shop in a recession?
That depends: Is your credit card debt higher than your hemline? Use this time to take a break, stop shopping, clean out your closet and pay down your debt. Unpaid credit card bills are the single worse thing you can do to your finances.
But, if your credit card debt is higher than the heels on your ballet flats, Fake it! No, not with illegal cheap knock-offs – nothing screams non-chic like an obviously fake bag. Hot for a trendy item? Indulge with GUESS, Zara, H&M, Bebe and ABS. Those stores are expert at copying / “interpreting” designer looks and retailing them for a fraction of the price; so if you love a trend, go to one of them and get the knock off.
Look for designers second lines and visit some stores you may not have been to in awhile (if ever). Vera Wang has hooked up with Kohl’s; Lela Rose is with Payless. Premium jeans Chip & Pepper and Ralph Lauren are at JCPenney; Cynthia Rowley is at Avon. Sarah Jessica Parker, Amanda Bynes and Venus Williams are with Steve & Barry’s. Todd Oldham is teaming up with Old Navy. Madonna’s at H&M. Top Shop is opening in New York. And, have you been to Target lately?
Whatever your style, remember going into debt for fashion is never chic.
Add comment October 28th, 2008