Every Day Finances

How to Negotiate a Lower Price

Let’s talk about negotiation. I’m not as comfortable negotiating as I would like to be, but I’ve been trying it out and it works!!!! Honestly, what have you got to lose? The worst they can say is “no”.

I bought Dave a big screen TV with a great online deal, but when we tried to set it up, we realized it didn’t fit on the TV stand. That never occurred to me, and we had company coming for the holidays. So the search was on to find a media console at a good price, in a style that matched our furniture, before the family arrived. Was it possible? Yes.

Both Dave and I (together and separately) checked many stores – furniture stores, clearance centers, consignment shops, online websites, etc. Some stores had what we wanted but couldn’t meet our timeframe. Another store had one we liked, but the price was over our budget. We even found one that we liked and fit our budget, but it was out of stock. This was a full-blown all-out search as time was running out.

Then we found it – the perfect one. So here’s how we negotiated:

1. The store couldn’t get it to us in time, but we asked if we could buy the floor model. Yes, we could.

2. They had a poster in the window advertising 20% off with store credit. We asked if we could get the store credit discount if we paid in full right then. Yes, they gave us the advertised discount even though we didn’t open a store credit account.

3. The floor model had a few nicks and scratches, so we asked if they would give us an additional discount for imperfections. Yes, they would.

We walked away with the media console that afternoon at an amazing price.

Bottom line, it wasn’t horrible to negotiate. We simply asked questions. We were not pushy or demeaning about the product or the staff. And, yes, we would have politely walked away if we didn’t get a price that worked for us.

So, the next time you’re out shopping, ask questions that might help you negotiate a better price. You may well get the answers you wanted to make the sale a win-win for everyone.

Happy Negotiating!

The Worst Things You Can Do With Your Money

This is my personal top five list of the worst things you can do with your money

no-1 1. Pay ATM fees (or for that matter, any bank fees) – There are banks out there that won’t charge you just for the privilege of having a checking account. You shouldn’t be paying a monthly maintenance fee or ATM fees. Ask your banker how to eliminate the fees. If they can’t, or won’t, move your money to a better bank.

2. Pay interest or finance charges on credit cards – Paying interest or finance charges is a complete waste of perfectly good money. It might have been a great deal when you swiped your card, but when you add interest, you’ll end up paying more than it was worth. If you currently have credit card debt, try moving it to a card that offers zero percent interest on transfers for the first 12-18 months. Once you are out of debt, pledge that you will not pay interest or finances charges ever again.

no-1 3. Sign without reading the fine print – Never sign anything that you don’t read. If you read it and don’t understand it, then ask questions or do your own research to understand it before going forward. I speak with so many people who just signed an agreement thinking they got a great deal, and then were blindsided hidden fees and additional charges. Were they really cheated? No, they just read the price in the big print, and not the details in the small print.

4. Pay for unused services (or things) – Are you paying a monthly fee for services you don’t use or could get for free? If you’re actually using them, that’s fine. But if you not, you could use that money for something that will actually make you feel good. I cancelled my magazine subscriptions because I wasn’t reading them. If you pay a credit monitoring service, you can do this for free with very little time investment. Are you paying for online services instead of using the free version? If so, are you actually making the most of it?

no-1 5. Duplicate Spending – Have you bought something at the store only to find out you already had one in the back of the closet? That is duplicate spending. You can resolve this by getting organized and getting rid of the clutter. If you know where to find something, you can easily access it before you go out and buy a duplicate.

In the comments, let us know where you stopped wasting your money!

Get Ready for 2014 with Smart Goals

What are your goals for 2014? Let’s see if I can guess… is it one of these?

Get organized
Lose weight
Eat healthier
Exercise more
Save money
Get out of debt

Almost everyone wants something on this list. Why do we keep setting and forgetting the same goals every year if these are the basics of a healthy lifestyle? Let’s step back and talk about goals in general.

All goals should be S.M.A.R.T.

Specific
Measurable
Achievable
Reasonable
Timely.

Your goal to “Save more money” is smart, but it’s not S.M.A.R.T. With a general goal, you’ll never know how well you’re doing. “Saving more money” could mean adding an extra $1 to savings. It’s not going to do much for your budget in the long term.

But, if your goal is to “Save an extra $500 by the end of 2014”, that’s S.M.A.R.T. You have a specific amount, it’s reasonable, you can track your progress and make adjustments to reach your time limit.

Back to 2014 goals – here are some resources that I use to make my goals a reality.

A Scanner

I’ve been tackling “getting organized” as a goal for a few years now, but I’ve been using the S.M.A.R.T. method, so I organized different items each year.

In 2012, I scanned all of our medical records.

For 2013, I scanned and saved all my recipes. My grandmother and mother, being great cooks, left me lots of family recipes. Plus, I had a cookbook collection, and lots of magazine and newspaper cutouts. So far, my scanned recipes have been a big plus in my life. They’re easy to find and share, my cupboards aren’t stuffed with paper, and we were able to donate 75% of my cookbooks.

For 2014, I am scanning all the family photos, slides and movies. This is going to be a big project for me because I’ve become the archiver of family photos as relatives have passed away. I have to admit that I have started a little early with my new all in one printer / fax / scanner.

Websites I’ve used to meet my goals

TripIt.com is how I organize all of my travel plans in one place – airline confirmations, hotel and car reservations, tours etc. All the information is in one place and easy to access. It’s as simple as forwarded the email receipt to Trip It and it appears on your itinerary.

For my goal of getting healthier (making better food choices, eating at home more and fitting in exercise), I use LoseIt.com. It’s helped me with my 2013 goal of leading a balanced life and making more time for me. Part of my goal was getting to know the feeds I eat so I can make better choices. LoseIt.com helped me to keep track of my food and to stay balanced (like watching the carbs to protein ratio). The website and app lets you input a recipe and save it for future use. There is a section for exercise too.

What are your tips and resources to help you achieve your 2014 goals? We’d like to know what you do.

To really get your goals started for 2014, you can join my new Facebook group. It’s a month long class that will help you set realistic goals for the year ahead.

A Facebook Group for Your Goals

Join me for the month of January for Taking Charge of Your Finances. Many people want to have more in savings, to spend less, to pay down their debt, save for their children’s education, save for retirement, buy a home, and more. This will be your chance to connect with other like minded people, and get your New Year’s resolution off to a solid start.

completely-free

Learn more here

A Facebook Group for Your Goals

completely-free

We will run the private group through Facebook. You do need to have a Facebook account to join. Simply click here -> www.facebook.com/groups/takecharge2014/ then click the Join Group button, and we’ll approve your membership.

You can participate in this group from the privacy of your home, and on your own schedule. I’ll post questions and assignments for you, give you ideas and resources to use to help you succeed in your goals. In turn, you can share as much as you want about your goals and finances, so you can discuss your challenges and learn from one another. This is a closed group, which means your posts will only be visible to each other, and not to your Facebook friends.

Your first assignment

We’ll start out with you telling us what personal financial goals you want to achieve. The goals can be short term (something that you want to complete in 2014) or a long term goal that needs your attention in 2014 if it’s going to continue over the years.

We will limit the group size so make sure you sign up today!

https://www.jillrussofoster.com/4625/

Boo! It’s Time to Plan for Holiday Spending

The gift-giving holidays are around the corner. If you don’t believe me, go buy some Halloween supplies. You’ll have to walk around Christmas decorations to get to the costume aisle. My warehouse club had Christmas decorations on Labor Day weekend. That’s way too early, even for me.

Depending on which holiday you celebrate, you have about a month for Chanukah and about two months before Christmas. Where does the time go? It seems that we were just talking about planning your summer vacations.

Don’t panic. You still have time to tackle your to-do list so you can stay within your budget.

Here are my suggestions to keep the holidays bright on a budget:

1. Make a list. Write down all the names of the all people you want to give gifts to. This includes family, friends, coworkers, teachers, service people (baby sitters, hair dressers, delivery people, etc.). Then, don’t forget the additional expenses that happen at the holidays: special entertainment events, parties, and travel.

2. Set your budget limit. This is how much you can afford to spend without having credit card debit in January.

3. Put dollar amounts next to each person and event on your list. Don’t forget to include shipping and travel costs. Also, add in the hostess gifts and food for the events you participate in. Those should be part of the budget, too.

4. Compare your budget limit and your list. How is that working? Do you have more people than your budget allows? If so, go back and make adjustments. You don’t have to leave people out – think of fun alternatives, instead. Can you do a family gift, a gift-less potluck, or a name-draw gift exchange? You want to be able to afford the holidays and enjoy them. You do NOT want to spend more than you can afford. There’s nothing worse than greeting the New Year with January credit card debt.

5. Start shopping. Comparison shopping is by far the best way to shop. Know what you want to buy, do your research and don’t stray from your list. Compare retail and online for the best deal, but, don’t forget the after-sale deals. You should watch for rebates and make sure the store will give you a refund if you purchase something before it goes on sale (within a reasonable time period). Keep those receipts handy.

6. Buy hot items early. These are gifts that are guaranteed to go out-of-stock because every child (and some adults) think they have to have it. It might be a video game or console, or a new kind of toy. Whatever it is, if it’s important to your gift plans, don’t wait.

Remember that planning ahead and taking your time will help your stress level. Pace yourself, and follow your list, so you can relax and enjoy your special time with family and friends.

Financial Housework: Deciding What to Clean First

Have I ever had credit card debt? Yes! There have been times in my life when I haven’t been able pay my balance in full when the bill arrives.

Credit card debt is the enemy of a good budget, but life happens. Even the best budgeter can have unplanned expenses.

According to a recent study by Trans Union, the average US adult carries $4,878 in credit card debt. That doesn’t include zero percent balances. That means the average US adult owes almost $5,000 plus the additional interest.

If this is you, I want you to take a deep breath. Debt repayment is just financial housework. There’s nothing to be afraid of here.

Do you know what’s really scary? Having company due in 5 minutes when the bathrooms aren’t clean. When that happens, do you lock the front door and pretend you’re not home? No! You walk into the bathroom and decide which part needs to be cleaned first (just in case you run out of time before the doorbell rings).

That’s right. I just compared paying off credit card debt to scrubbing the toilet. That’s because you want to use the same thought process with your credit cards. Some cards will need more attention than others, so you need to make a list of your debts which includes the interest rate and minimum payment amounts.

There are two methods to setting priorities on your credit cards.

Option 1: Pay the highest interest rate first. Your list will look something like this:

Priority	Interest Rate	Minimum Payment	Current Balance
Card #1	19%	$100	$5,025
Card #2	15%	$47	$2,141
Card #3	11%	$177	$9,056

This is the best option if you want to save money. Using the example above, you pay as much as your budget will allow on card #1, and only the minimum on cards #2 and #3. When #1 is paid off, you make card #2 the highest priority. Rinse and repeat until all cards are paid in full. When you pay the highest interest rate first, you pay less overall.

Option 2. Pay the smallest debt first. Your list will look something like this.

Priority	Interest Rate	Minimum Payment	Current Balance
Card #1	15%	$47	$2,141
Card #2	19%	$100	$5,025
Card #3	11%	$177	$9,056

This option is good if you need to see results to stay motivated. Receiving a bill with $0 due is really satisfying. A positive emotional boost can really keep the momentum going. You can compare it to housework, dieting, or exercise. We like to see improvements.

Bottom line: You have chosen to get out of debt (your goal) and the actions that will get you there (your plan). You’ll know the best option for you and your family, and you can change tactics whenever you want as long as you’re moving forward.

Let us know which option you choose and how you are doing.

Prevent Grocery Store Overspending

grocery-store-sales

Does this ever happen to you? You go to the grocery store to buy a few recipe ingredients. After walking the aisles, you find yourself at the checkout with 2 full bags of groceries and a receipt for $60-$90.

Here are some tips to prevent grocery store overspending. The most important (and easiest) fixes are on top.

1. Use cash! This is the most important and the easiest rule to follow. In the example above, if you’d only brought $10 in cash to the store, you would have walked out with just the butter, eggs and cinnamon you needed for your baking project. You cannot spend more cash than you bring with you – as long as you leave your credit and debit cards at home. (I do this myself)

2. Don’t shop when you’re hungry! This is also an easy rule to follow. If you shop hungry, your body will tell you that everything you see is delicious and that you must buy it right away. In fact, you’ll think it’s a good idea to get 2 or 3 packages of all kinds of foods you’ll regret buying later.

3. Compare prices in store. As long as you’re standing there, it’s not too hard to try to choose the best price on a can of tuna or package of grated cheese. Store brands are usually the best deal, but if they want you to buy 2 to get the sales price, the brand name could be a better deal.

4. Plan your meals and shop from your list. This is a little harder because it means you have to plan before going to the store. Once you have your meal plan, check your cupboards and fridge to see if you already have any of the recipe ingredients. This prevents you from buying something you already have at home.

5. Rewards cards. You have to plan to get the best use out of them, but when you do, you can save substantial cash. They give you discounts and coupons, but you won’t get the same discounts on the same items every week. You’ll need to be on top of what’s in your cupboards, be careful to buy only the items you’ll actually use, and sometimes you’ll have to wait on a purchase until the discount cycles around again.

Make your trip to the grocery store less costly the next time you shop. What do you do to save money in the grocery store? Tell us in the comments below.

Cards Declined in Copenhagen: Lessons in Travel

In the last edition of my newsletter, you heard about our amazing trip and how we were able to pay for almost everything with points and some smart pre-planning. (You’ll see photos today).

Now, you will hear what didn’t work. This was big lesson for me.

To stay on budget, we used mainly cash. We even bought foreign currency before leaving home. We were able to purchase Crown, Kroner, Euro and Rubles at our local exchange in Connecticut.

But we knew we would want to use credit occasionally, so we called our credit and debit card companies to let them know where we’d be travelling and on what dates (as I’ve told you to do many times).

Imagine our surprise when our cards were declined in Copenhagen. We had dinner with friends and asked the restaurant split the bill between us – half on their card and half on ours. Ours was declined. We knew it wasn’t the machine because they processed our friends’ card first. We could see that theirs worked because the staff at the restaurant actually processes the credit card at your table using a portable machine.

We wondered if it was because we were using our US debit card with a pin. So we ask them to do it again as a credit card. It still didn’t work. The staff said that a lot of US credit cards are declined for some reason.

And, it wasn’t just the restaurant. We tried using the credit card when we checked out of the hotel. Again, declined! It was very embarrassing.

When we returned, I called the credit card company to ask why they wouldn’t accept our transactions. After a lengthy conversation, and several people, they realized that they couldn’t see any of the attempted transactions in their system. Fortunately, I kept the receipt as proof, but even with the evidence right in front of them, they still couldn’t give me an answer.

The mystery continues. Thank goodness for our American Express card. It saved the day.

Remember, no matter how prepared you are. Things can go wrong. Make sure you have a back-up plan when you travel.

Update: A big thanks to Heidi for giving us an explanation! Apparently, their credit card machines are programmed to accept cards originating from countries in the European Union – and nowhere else. I guess that makes things easier for Denmark, but not for tourists! Read her full comment below.

Lessons in Cheap Travel from an Expert: Me!

We just returned from an amazing trip to Northern Europe and, surprise, surprise – it didn’t break our bank account. How did we do it?

Transferable frequent flier miles

When we fly, we usually use one airline so our frequent flier miles are easy to use. But, our first destination was Copenhagen and our favorite airline doesn’t fly to Denmark. Lucky for us, the airline was in the One World Alliance so we were able to transfer our miles to another airline to receive free flights – we only paid the taxes.

We earned extra miles just by eating out and shopping

Our airline has a dinning program so you can eat out at participating restaurants to earn miles. The program is free. You just need to register your credit or debit cards. The shopping program works great for us. When we shop online, we start at their shopping website. Then use their links to access popular retailers. Between flying, eating out, and ordering online our frequent flier miles really add up.

We used our hotel points

Our flight got us in to Copenhagen a day early, so we had time to explore and meet up with a good friend. We stayed at a hotel and our lodging points covered the cost of both nights. Even better, we used extra points to upgrade to a room with access to a hospitality suite that served breakfast and late afternoon snacks.

We used timeshare points for the cruise

As some of you know, we like to take cruises. So, when we found a cruise that visited the Baltic regions of Northern Europe, we were really excited. Neither of us had been, so it was a first. We were so happy to find that we could trade our timeshare points for the cruise. All we paid were the taxes and port fees. We sailed to Tallinn, Estonia; St Petersburg, Russia; Helsinki, Finland and Stockholm, Sweden.

Yes, it took a lot of coordination and advanced planning…

But, our travel, lodging and cruise were covered – we only paid taxes (which were minimal). Of course we spent money for some of our food, entrance fees to museums, the tours themselves and souvenirs. But we saved money by walking, taking public transport, or tour transports where the only cost was the tip for the guide.

So, that’s my experience and my expert advice. You can travel without killing your budget!

That’s several more countries checked off our bucket list. Where would you like to go?

Why Financial Envy is a Waste of Time (Update)

You see this happen all the time. You are in a situation with other people and someone mentions his nice vacation plans. What is the first thing that pops into your head? Are you genuinely happy for him or do you automatically think about how much he’s spending (that includes jealous thoughts of the “he must be making more money than me” kind). You know what I mean.

But in the past few years, I have learned to stop comparing my financial situation with friends and family family (I’m not perfect but I am improving). I have come to realize that I am projecting my values and beliefs onto other people. What I think or believe about another person’s finances has no basis in reality. I am not in their shoes and don’t know what their situation is.

People spend money on things that are important to them. I know that some people may think I travel a lot. When one vacation ends, I am already planning the next. I personally always want to have a trip to look forward to. You might be thinking thoughts like “how can she afford it?” or “where does she get the money to travel?” You may even be envious. But you won’t know exactly how I make my little dreams come true because personal finances are just that – personal. .

Although in a few weeks,, I will shed some light on how we travel.

The other side of comparing your finances is the presumption that you are somehow morally better or worse than others. Grim tales of credit card debt are all over the news, often mixed with stories of foreclosure and homelessness. You may feel good about yourself because your debt is lower, but do you know why the person on the news has the debt? Was it really insane overspending, or was it a medical emergency or a layoff. Maybe the credit cards were used as a last resort to pay bills?

I have heard it said that “to compare is to despair.” This thought process of judging others is detrimental to you. You have no idea whether another household spends more money than they have, is in debt to their eyeballs, or has planned ahead to achieve their desires. You don’t know how much they earn or how much they give to charity. It is much easier to judge someone else than look inward at your own spending habits.

In the budgeting process, people track their daily expenses to see how much they spend and in what category. This can be a great exercise. Once you see where your money is going, you can make life-changing decisions. Where do you want to spend? What do you want to save for?

There are no right or wrong answers. There are only personal choices. Maybe you choose electronics over vacations. Maybe you choose decorating and entertaining over both. Maybe you choose to give your children spectacular holidays or birthdays over everything else. These are the kind of choices your neighbors, friends and family members made when they did something that impressed you and made you envious. They simply chose to spend their money in a different way than you.

So the next time you see someone order an expensive meal at a five star restaurant, purchasing the latest greatest electronics, or buying a designer outfit, don’t judge them. Not only is the thought process destructive, but it is a total waste of your time.