Posts tagged 'Shopping'
Buying stock is buying ownership in an individual company; how much ownership depends on how much stock you buy. When you buy a share of stock, you are buying a small piece of everything the company owns and owes. So, for example, if a stock is selling for 110 dollars per share and you ask your stockbroker to purchase one hundred and 10 dollars worth, you now own one share of the company. If the company has one hundred thousand shares total shares outstanding, you just bought .00001 percent of the company.
Stocks are traded on a stock market. You buy stocks with the help of a stockbroker who is sort of like a personal shopper for stocks. There are well over 2,500 different companies whose stocks are traded on the New York Stock Exchange (NYSE) alone. Companies earn money and lose money. As their fortunes go, so does their stock. By owning their stock, you can make or lose money right along with them. Examples of the different kinds of familiar retail stocks you could own are: Abercrombie & Fitch, Saks, Nike, Polo and Ralph Lauren. Not only can you own a piece of these companies but you can show your brand loyalty by wearing them.
Think of a stock market as resembling a department store where you can buy all sorts of designer clothes, cosmetics, shoes and bags in one place. In the stock market, you can buy stocks and bonds and other financial instruments instead. In the United States, there are two main markets: The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ). Internationally, there are lots of others, like the London Stock Exchange and the Hong Kong Stock Exchange. You can shop at these markets just like you can at any other market, as long as you use your broker or have an investment account which will let you purchase directly.
Each market (or exchange) lists all of the stocks and other financial instruments it sells. You can browse all the offerings, narrow down your selections and hone in on your purchases. You can even try on, before you buy, by selecting a stock to watch. Don’t spend any money until after you have watched it for a while and also learned something about the company. See how much it fluctuates, the price of stocks constantly changes and you have to be sure that the stock you are watching is a value at the price at which you decide to buy it at. If the shoes were a steal at 125 dollars, would you still think they were worth buying at 200 dollars?
I do not recommend owning individual stocks unless you really know what you are doing and can afford to lose some money. The stock market, particularly now, can be a raucous place. When you are starting out, it is much better to own a professionally managed mutual fund or, even better, an exchange traded fund, which uses a different kind of shopping approach than that of buying stocks.
January 12th, 2009
Today, Obama spoke about the current economic crises. He pointed out that “this crisis did not happen solely by some accident of history or normal turn of the business cycle … we arrived at this point due to an era of profound irresponsibility that stretched from corporate boardrooms to the halls of power in Washington, DC. … Banks made loans without concern for whether borrowers could repay them, and some borrowers took advantage of cheap credit to take on debt they couldn’t afford. The result has been a devastating loss of trust and confidence in our economy, our financial markets, and our government.” He’s right.
The recent economic headlines have been enough to make anyone nauseous. Money-savvy people are scared and financial novices are terrified. One of the most important promises you can make to yourself this year is to learn about money and personal money management. I realize learning about the economy can seem intimidating, math feels boring, and managing your own finances daunting – but if you can shop, you can manage your money.
Shopping actually requires you know more math than money management. For example to spend, you need addition and subtraction. To budget, you need addition, subtraction, and multiplication. To over-spend, you need addition, subtraction, multiplication and division. To shop, you need addition, subtraction and multiplication. Percents and decimals also help – especially if there is a sale! Notice that algebra is not listed; geometry is nowhere is sight (although one way to save money is to angle around the outer perimeters of the shoe department); trigonometry – forget it; calculus – don’t need it.
So make a commitment to yourself and learn about money. You’ll feel even better than you do when your skinny jeans fit.
January 8th, 2009
Gwyneth Paltrow’s latest GOOP posting (www.goop.com) shares her post-holiday cleanse, complete with menu and bowel movement advice. This year, rather than simply focusing on being thin focus on becoming rich. You can start by truly assessing your financial condition. If you’ve never made a budget, do so. If you’ve never calculated your net worth, try it. If you have credit card debt or other debts develop a plan to pay them down or off – if your debt is caused by excessive shopping vow to hit the gym instead – you’ll get thin and rich at the same time.
Wallis Simpson, the American divorcee for whom King Edward VIII gave up the throne of Great Britain, is often credited with originating the saying “You can never be too rich or too thin.” However, she was wrong. You actually can be too thin- anorexia looks pretty on no one and size 27 jeans cost the same as size 31 jeans so smaller sizes do not help you save money – but you can never be too rich.
January 7th, 2009
It’s not what you wear – it’s how you wear it. Similarly, it’s not what you budget – it’s how you use it. Most budgets fail because they are seen as a restraint as in the plaintive, “It’s not in my budget.” Instead, 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 to do, it tells you what you can do. There, isn’t that more palatable already?
For a budget to succeed, it helps to have goals. Goals can be short or long-term, large or small. In fact, it’s good to have goals for both. So you’re coveting …? Whether … is a new car or an expensive cashmere sweater, make use of your budget to save for it. Set aside a certain amount each month so you can eventually afford it. However, if the amount puts you over your monthly spending allowance be sure to compensate elsewhere in your budget.
The only way to find out if your budget is actually working is to track your actual spending against what you had planned to spend. How do you do this? Continue to keep those receipts. At the end of every month, add up what money you actually made, what money you actually spent, and what you have left over. Then compare it to what you planned when you made up your budget. If you spent more than you expected, spend less next month. If you spent less, think about putting the surplus money into a savings account.
January 5th, 2009
Spending is often what we do best. However, knowing how to spend, and when to spend, is critical. What must we have? What can we live without? And how do we know which is which? There are not a lot of role models out there for women to follow. What is out there is a ton of external pressure to spend, spend, and spend. Consumer products companies spend billions telling us which products we need and why. Retail stores devote a great deal of time, money and effort to make their store windows stop us in our tracks. Movies, television shows, fashion magazines and the media’s relentless coverage of who wore what all send a message about how much we need to spend, and what we need to spend it on in order to look and feel good. Even the federal government overspends and as an all too predictable result, sends us into an economic crisis.
Can we stop the madness? How do we know what to buy and where to spend? Confused priorities can wreck your budget. Three months’ rent or a Cartier Tank watch? How do you choose? Start by revisiting your budget. If you can afford the watch – go ahead and buy it. If your budget indicates that you can’t, don’t despair. You could make it a dream or a goal to save for, or you could pay your rent and shop a notch or two (or three) down, or not at all.
Priorities are different for everyone. How do you know what yours are? Let’s start with the basics of needs and wants. What’s the difference between the two? A need is something you simply can’t do without. It is something you have to have, to survive in a reasonably comfortable way. Needs are the basic building blocks of life. Wants are desires. A want is something that, no matter how much you may crave it, you can live just fine without. You want the Cartier tank watch; you need to know what time it is. You want the black stilettos beckoning from the window; you have to have your feet covered but you probably don’t need that particular pair of shoes.
By using your budget to review how and where you are spending your money, you will be able to spot and fix potentially problematic trends and fix them before they get out of hand. You might have to make some hard decisions about what it is you need and what you merely want. Only you can sort out which is which, along with what you are willing to give up. And you must stay committed to the rule that only if you have a surplus of funds at the end of every month can you can start to purchase things you want, in addition to the things you need.
December 22nd, 2008
In this time of austerity, black is the new black. It fits the mood, makes you look thinner and taller, and can save you money…I’m going to guess you already own more than a few things in black and won’t have to add very many items to your wardrobe to be in style.
Fashionista Fact:
“____ is the new black” started with the legendary Vogue editor Diana Vreeland in 1962, when she observed that “shocking pink is the navy blue of India.” Vreeland was commenting on the copious use of pink as the base color for much of the attire in India, much like navy blue at that time the core color of most outfits in New York City. In the late 1970’s the expression changed to “X is the new neutral” which morphed in the 1980’s to “X is the new black.”
December 11th, 2008
The best gift you could give yourself this holiday season is to get though December without incurring additional debt. Believe it or not, your friends love you for you – not for the gifts you give them. If they don’t, get new friends.
Not paying your credit card bill in full every month is one of the worst things you can do for your finances, except in emergencies. Unless you can pay your bill in full every month, use a debit card instead of a credit card. If you are unable to pay your bill in full when you receive it, pay off as much of it as you possibly can. Do not use the card again until you have completely paid your bill and have a zero balance. The reason you want to pay as much as you can possibly can is the more you pay now, the lower your outstanding balance (what you owe the credit card company) and the less interest you will owe on the balance. Remember, interest is calculated on the amount outstanding. If you pay only the minimum required, you will pay the credit card company a lot of interest.
There are lots of ways to give without spending a fortune: Many websites and magazines have gift lists in various price ranges – use the range that you can comfortably afford. Diets aside, don’t over look home baking. Fattening deserts are always a crowd pleaser. Parties are good too. Arrange a pot-luck so everyone shares the cost and each others company. A heartfelt phone call wishing them a happy holiday and letting them know you are thinking about them is often better than any gift. Last but not least, since today is global AIDS awareness day, don’t forget charities. Making a donation in a friends name is a great way to honor them – and to help others in need at the same time.
December 1st, 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
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
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