Posts tagged 'spending'
In his inaugural speech, Obama quoted the Bible: “the time has come to set aside childish things.” The question is does that include an obsession with shoes? He asked the nation to grow up and cited our “badly weakened economy” as a consequence of not just “greed and irresponsibility on the part of some but also our collective failure to make hard choices…”
So yes, sadly, it applies to shoes – or at least our obsession with them. A poll of 1,057 women by the Consumer Reports National Research Center for shopping magazine, ShopSmart, found that U.S. women on average own 19 pairs of shoes, although they only wear four pairs regularly; 15 percent have over 30 pairs.
Carrie: [In shoe store with Miranda]: Where did all my money go?
Miranda: At four hundred dollars a pop, how many of these do you own? Fifty?
Carrie: Come on…
Miranda: One hundred?
Carrie: Would that be so wrong?
Miranda: Four hundred dollars times one hundred, there’s your down payment.
Carrie: That’s only four thousand dollars.
Miranda: No, that’s forty thousand dollars!
Carrie: I spent forty thousand dollars on shoes and I have no place to live? I will literally be the old woman who lived in her shoe.
Carrie, with her disregard for her spending habits – tossing off hundreds of dollars for things she doesn’t need and will, in all likelihood, never wear – might be incredibly chic but is a very bad financial role model.
Managing your money, taking control of your finances and living within your means requires hard choices. However, if you put off or don’t make the hard choices, they become impossible.
January 22nd, 2009
Today, Michelle Obama wore Isabelle Toledo and the girls wore J. Crew. This is a great example of mixing high and low (well, J. Crew is not exactly a low). It is your prerogative to be a slave to fashion, and especially expensive designer items, if, but only if, you can afford them. Coco Chanel once said, “Fashion is made to become unfashionable.” If you can’t afford them – and most of us can’t, let’s face it – there are always alternatives, notably second label lines, which are cheaper but still high-styled.
Smart shopping requires four things: Planning, focus, investing and finding bargains. Most of the following tips come from In Style Secrets of Style:
Plan:
- Figure out what you have and what you need – shop with a list.
- Determine how much money you can spend.
- Shop when you are feeling good about yourself, not when you are bored or upset.
- Shop when stores are the least crowded, so you can get the attention you deserve.
- Dressing well requires strategy so take your time.
- Know the store’s return policy – we all make mistakes and the fashionably and financially responsible thing to do is return the item when that happens.
Focus:
- Shop by yourself – unless you need someone to keep you in check and to tell you to “just back away from the shoes” – friends can distract you and encourage you to buy items you don’t need.
- Know what styles work for you and stick to them – just because something is trendy does not mean it is right for you.
- Buy for the body you have, not the one you want: Spending money on a size four when you are an eight is not smart – yes, I know you will be a four in no time, but the point is, you’re not a four this minute.
- Don’t deviate from your plan.
Invest:
- Buy complete outfits; otherwise you will have a closet full of nothing-to-wear. True classics are the exception – black, grey, navy or tan pants, white shirts, classic skirts.
- Buy the best quality you can afford for the classics and scrimp on the trendy stuff.
- Be wary of sale racks – Just because it is on sale does not mean it is a bargain or you need it. You only save money at a sale if it was something you were already looking for.
Bargains:
- Study the deals and steals sections of most fashion magazines.
- Go to your favorite shopping website and check out the sale section (or sign up for their emails).
- www.bluefly.com: Up to 40 to 70 percent off retail; need I say more?
- Boutique stores: Get on their mailing lists to receive notices of sales.
- Department stores: Look for second lines like Marc by Marc Jacobs and wait until they have a sale.
- Outlet stores
- Sample sales
- Lower scale retailers: Have you been to Target lately?
- Newsletters: www.dailycandy.com can tell you about sales, not to mention fabulous boutiques in your area.
- Thrift shops, known euphemistically as vintage stores; but be forewarned, genuine vintage clothes can cost a bundle.
Last but not least, try, just try, to exercise some discipline.
January 20th, 2009
Recent statistics show that the Botox treatment industry has generated over $1 billion per year in revenue. When an industry hits that threshold, it’s a viable, on-going market. Although the recent market downturn may put a slight wrinkle in sales, younger and younger women are now trying the procedure. A growing number are getting Botox the moment they graduate from high school.
This is an example of really bad money management – not to mention a totally unnecessary cosmetic procedure. At upwards of 300 dollars per appointment, you would be much better off paying down your credit card or other debts or saving or investing. Even if you are completely debt free, and can truly afford it, there is plenty of time to freeze your face.
If you put the $300 in your savings account instead and earned 4% interest, in five years you would have roughly $1,460 dollars ($300 x 4 times a year – usually you need three to four injections per year). If you waited five years to start Botox, and saved the money each year, you would have saved approximately $6,700. What could you do with $6,700?
January 16th, 2009
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
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).
October 31st, 2008
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