… show me the money!

Welcome back gentle readers. I became inspired to continue with this blog after watching “Julie and Julia” last night. Better late than never, right? Okay, I have been talking to you about spending wisely. However, in order to spend money you have to have money. Back in my younger days we referred to being broke as “eating ice”. I’m talking about being broke, busted and totally disgusted. I remember my breaking point as the day I lost my mind over a jar of salad dressing. My family gave me an economy size jar one Christmas as a joking reminder of my insanity. At the time I was in deep despair over my inability to purchase the name brand of my choice. It was then that I realized that despite my best efforts and intentions, my financial life was out of balance. So I started to focus on what I had coming in the front door. In order to change my circumstances I had to change my market value as an employee. It is not enough in these times to be a hard worker. You need to bring something to the employer that makes you stand out above the rest. If it means going back to school or learning a new skill then you should do that. But you should not do it on any one's terms but your own. Do not let some fast talking salesperson or representative give you the speech about hurry up or it will be too late. It is never too late as long as you have breath in your body. When you stop breathing, guess what, at that point none of it matters. Reinventing yourself is not only about getting a better education. Sometimes the easiest and most cost effective way to change is to simply change your attitude. Believe it or not, putting on a smile and presenting a positive outlook can reap huge results. People have often told me that I am lucky. I was riding down the street on day and saw these words posted on the side of a building “Luck is being prepared for opportunity”. I didn’t create that statement but it really resonates in my soul. Over the years I have constantly prepared myself for better opportunities. I didn’t want to sacrifice time with my child so when she was young I did self study computer based training (CBT) during my lunch break at work. If your job offers free training take it! Knowledge is power and has the power to transform and move you into a higher paying job. Another tidbit is to find your passion and the money will follow. I would rather work a job that pays less but gives me self satisfaction than one that pays an enormous salary that I don’t enjoy. I am speaking from experience here so pay attention. Much of what I am saying to you can be found in any self help book on the shelf. But, just like a cookbook if you don’t try it then it’s just a recipe. I have cooked in the game called life and I can tell you quite honestly that these little tidbits work. If you want to change your circumstance today, just stop and ask yourself what can I do at this very moment to make my life better tomorrow?

... the art of shopping

Before I committed to this posting I thought about the psychology of spending. I thought about how empowering it is spend money. You know what I mean. That rush that you get when you say "Charge it!" knowing that your charge card will actually work. Of course there is another kind of rush with spending money. It's best depicted by the commercial of the lady running out of one of my favorite stores like she stole something. Her arms are filled with bags and she is screaming at her spouse "Start the car, start the car!" LOL, I how well do I know that feeling. Shopping is a fine art and when you hit the mother lode there is a euphoria that is better than.... I will let you complete that sentence. Anyway, this state of euphoria can be habit forming. That's how folks end up on those shows about hoarders. As much as I love a bargain, yard sales, auctions, and such I have finally come to terms with enough is enough. I don't have any more space in my house for stuff, no matter how much I save. I have also come to realize that the more I acquire, the more I have to maintain. I am getting too old for maintenance. But, for those of you who are still young enough to enjoy the rush let me share some of my shopping tips. First, never, ever, pay retail prices for anything. Honestly, you can always get the same quality and products at a cheaper price. Today's economy is a gold mine of great deals. As a quick reminder, if you have bad credit, you will find yourself paying higher prices for everything. So, keep or work on getting that credit straight. Let's start with car purchases. DO NOT focus on the monthly payment. When you go into a dealership be prepared to say NO many times. Whenever possible, get pre-approved at your credit union or bank first. The interest rates at dealerships can be RIDICULOUS! Also, know how much you are prepared to spend and stick to that plan no matter what. DO NOT get suckered into that low monthly payment. By the time you pay off that car you might be using it as a lawn ornament. DO get an insurance quote on the vehicle before you commit to purchasing. DO shop around on the internet first. DO ask your dealer about the demos that are in stock. You can save a huge amount of money buying a demo with all of the benefits of a new car. Buying a car after it has a few miles on it is often an advantage, because if it had any bugs the dealer should have discovered and fixed them. It has been my experience that extended warranties are a waste of money. Again, don't look at the monthly payment, look at the total cost with interest. You are better served to save the additional cost of a warranty in a rainy day fund. That way, you earn the interest, not the dealer. If something should go wrong with the new car you are covered by the manufacturer warranty. If something goes wrong after that warranty expires (on average 3-5 years later), you should have money in the rainy day fund to cover it. If nothing goes wrong or you buy a new car, you have cha-ching in savings that can be applied as a down payment and reduce the cost of a new car purchase. Paying extra on the principle also eliminates some of the interest charged. If you are stuck with bad credit, then try to pay off the vehicle early by making additional payments toward the principle. (Warning, some lenders charge a penalty for early payoffs. Make sure that you read that fine print.) This also works well with home loans. It can take a long time for your credit rating to catch up to your current financial status. The same rules apply when shopping for other merchandise. If you can pay cash, then pay cash! If it cost more than you can pay, save up for it. If it is a hot item at the Black Friday sale, charge it if you must, but pay off your charge card completely whenever possible. I know it's not easy but, what's the point of getting something on sale when you end up paying so much more in interest charges? Another tip for the shopping warriors is, if it looks like it is too good to be true, it usually is. If someone approaches you with a sale don't buy! Only buy when you are looking for an item. Always ask questions, always compare. If the salesperson does not accommodate you then go somewhere else. News flash! Money spends almost everywhere. I haven't figured out where it doesn't spend but I am working on that. Sometimes we get caught in the trap of shame and spend our money in places that make us feel bad. You know, those pricey snobbish boutiques that make you feel like you are too poor to be acknowledged. The first rule of shopping is if you are not being treated appropriately, take your business elsewhere. Chances are, not only will you get better prices; you will get superior service as well. That includes everything from cars to fast food. As a consumer you should be sending a message to retailers that if you aren't treated well you will spend your money elsewhere. That will assure that you get quality in addition to quantity when you purchase your merchandise. Okay, time to let the dogs run. Come back and see me soon.