LOOK GOOD WHILE SAVING MONEY

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 By Ruthie Kott

When spring and summer hit, it’s hard for me to resist a good shopping trip. The bright, flowery skirts and neon-yellow sandals come out of hibernation, and I want everything in the store windows I pass to and from work each day.

Unfortunately, my wallet doesn’t respond all that well to “I want.” But if you want to spice up your wardrobe with a few key summer items for good prices, there are plenty of places to get your fix. Below are some of my favorite websites for finding good deals on trendy clothes and accessories—and all of them have options for men and women.

Endless: Run by Amazon, Endless has an amazing sale section. One of my recent finds: a beautiful rose-gold boyfriend watch for just $26 It’s nearly identical to the Michael Kors version, which runs for about $250.

ASOS and Tobi: Use these sites with caution. The deals are so incredible—Tobi even offers 30 percent off its new arrivals each day—that it’s hard not to load up your virtual shopping cart with $30 and $40 tops and dresses. Also, the clothes just fit really well. About 50 percent of the dresses in my wardrobe are from Tobi, and only one has ever fit badly (and I’m not particularly petite). And ASOS offers free standard shipping and, if something doesn’t fit or you just don’t like it, free returns.

 
Birchbox: Make-up lovers, rejoice. For only $10 per month, you get a box full of make-up and beauty samples, curated for your skin tone and type. My January box contained a full-size slate blue Stila eyeliner that has become my go-to liner, and the peach Tarte lip tint is a perfect color for spring. There have been some misses, but most items are at least fun to try, even if you don’t love them. Birchbox also has an online store, so if you do love a sample from the box, you get free shipping on that product if you buy it during that month. Plus, they’ve recently started up a men’s monthly box—for $20 per month, men get personalized samples of grooming and lifestyle products, such as cologne and shave gel. 
 

E-Drop Off: For the occasional good deal (and to support a Chicago-based business), try E-Drop Off, a consignment service that sells high-end designer clothes on eBay. Often the items go for far more than my wallet can handle, but every once in a while, as with any eBay auction, you might get lucky. 

But if new clothes really aren’t in the budget right now, you can still find creative ways to rework some of your current pieces into new, exciting outfits. Sites such as Refinery29 suggest how to get the most out of a single item: take this recent post on three different ways to rock a blazer. I also get a lot of my inspiration from fashion bloggers such as Keiko Lynn, who can take an old button-down shirt, a skirt, and a belt and make them all look completely new.

Ruthie Kott is a freelance writer and editor in Chicago, trying to make sense of her finances. She’s always looking for creative ways to make — and save — money and how to find the next great deal. Send any tips to her at rekott@gmail.com

HOW I WAS ALMOST KICKED OUT OF COLLEGE FOR BAD FINANCES

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By Yvette Owo, @YvetteO

The registrar’s email said I would be kicked out of school if I couldn’t pay $3,400 for tuition in 10 days. I re-read the email over and over again hoping the words would change.  “How could this happen?” I thought. “Both of my parents are doctors.”  I had spent about $6,000 on program costs, flights, shopping, etc. to study abroad the previous summer.  Had I planned for the tuition payment, this wouldn’t have happened. 

I realized I was financially irresponsible. I didn’t plan how to pay for tuition, rent, food . . . anything. I expected my parents, who were in the middle of a divorce, to manage it.  Within 4 months, my mom had became a single parent financially responsible for 3 kids, buried her father, and took on lawyer’s fees.  My tuition fell to the bottom of her obligations list.

Fast forward 8 years, and I now have a well-funded 401K, an IRA that I started in college, and enough savings for two years of expenses.  I am also a blogger at Financially Fab and Smarteys, financial advisor to young professionals, and corporate strategist at a Fortune 500 company.  The registrar’s email was my wake up call.

I will be writing a series of posts that show how I grew from financially clueless to financially savvy.  The posts will expose the lessons I learned and end with simple steps to help you become financially savvy. These will not be boring articles nor impractical advice.  I’m 27; I’ve built my financial life from the ground up and want to help you do the same.

To get over my first hump, I got a 90-day interest-free loan from the university so I could stay in school. Over the next 8 months, I read 20+ books on personal finance and learned that money was a tool to buy needs and wants. If I handed over my financial life to anyone – my parents, a bank, a credit card company, or anyone else else – then I’d lose control of basic life decisions. I needed to plan how and when to pay bills. Also, I needed to learn what money actually meant for my life.

Your turn: Do you need a simple plan to pay monthly bills?  Do you want to improve your current process? Check out the steps below! Respond with a comment sharing your financial questions and concerns. I’d love to hear from you.

Simple System for Paying Bills:

 1.     Reserve an hour of uninterrupted time and gather all your bills into one place.

Seriously, NO interruptions.

2.     Check that you have enough cash to pay bills

    • My process:
        • I earn two paychecks a month and divide my bills into two groups: beginning of the month and end of the month payments.
        • I add up the total cost for beginning of the month bills and make sure it’s less than my beginning of the month paycheck.
        • I do the same check for end of the month bills.
    • Tips:
        • If you get paid more or less frequently, you can divide them into more or less groups.
        • Use Smarteys’ Paycheck Planner instead of calculating by hand. 

3.     Setup reminders

    • Using paper calendars:
      1. Write the due dates for all your bills for the next 2 months in red.
      2. Write the date you will send the bill payment in blue. Tips:
        • I keep my life simple only having two blue dates. 
        • Leave enough time for mailing and processing between the blue send date and red due date, as that can take 7+ days. 
      3. Post the calendars somewhere you walk by often (i.e. in kitchen or by computer) or where you sit to pay bills.
    • Online ways to replace old-fashioned paper
      1. For online calendars, create email reminders for the blue dates.  The calendar remembers for you!
      2. If your online banking website has bill reminders, use that to replace the blue and red dates–as long as you check online banking often or your bank sends reminders.
      3. Use Mint.com to track bills and receive email or text message reminders.

Upcoming: In the next post, I’ll explain how I paid off almost $10,000 of debt in 8 months as a college student!

Send your responses to FinanciallyFab@gmail.com and let me know how the steps helped or if I can answer any questions.

Yvette Owo is passionate about personal finance and helping middle class people make solid financial decisions.  She translates financial concepts into plain speak you can apply in your life.  She also writes for her blog Financially Fab and provides financial advising to young professionals.  In her 9-5, she’s a corporate strategist and solves problems around go-to-market strategy/implementation, business development, and product line management for corporations. For fun, she enjoys ballet, swimming, meditation, yoga, and being outdoors.

ASK YOUR FINANCIAL INSTITUTION TO PROPOSE, ALREADY

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Owned by Baloocartoons.com

Being a customer of a financial institution is like moving through the stages of a relationship. From dating to marriage – the company must give you reasons why they deserve your business.

 Which stage are you in?

  1. The Courting Stage – you been attracted to open a new account because of perks like an extra $50 deposit or tote bag
  2. The Dating Stage – you’ve opened an account but are not sure if this is for the long haul
  3. The Newlywed Stage – you have picked a primary institution and you are putting down roots, like taking out a loan
  4. The Marriage Stage – you’ve been with them for so long that you can’t remember when you opened an account. And the relationship has grown as your money needs have changed.

In college it is fine to be in the courting or dating stages with a bank, but after graduation determine what will be needed in order move onto the newlywed or marriage stage. If you cannot find good reasons why you’re with your financial institution now, then it’s time to move on to a company that is capable of showing you why they deserve your business.

To know if you’re at that point, here thee ways your bank should be showing you the love.

Are you valued as a person or just an account holder?  Look for small acts like a greeter welcoming you into a branch office, a sales representative referring to you by name, or an email survey asking for your feedback. These simple gestures combined with great account management can open the lines of communication and make for a stronger banking relationship as your account needs change. Look for the same courtesy even if you’re only an online bank account.

What have they done for you lately? When was the last time you were offered an interest rate increase for your savings account or a reduction on your monthly account fees? A quick review will indicate how your bank appreciates your business. It’s one thing to be charged for a bounced a check, often called as a Non-Sufficient Funds fee (NSF), but if you’re racking up a “sitting” fee just for holding your money in a saving account, then its time to ask for a fee waiver. Try to list a few things off the top of you head that your institution does to let you know that you are appreciated. Got nadda? Then move on.

What’s their history? The Credit Union I bank with was started as a small loan office for workers of a machine widget factory.  Knowing this helped me understand what my Credit Union values. So when I need a personal loan, for example, I’ll know that they have a history of servicing that kind of relationship.  You too, should understand your institution’s history and make sure that they company’s values align with your current or future needs.

Schane Coker has a B.S. in Financial Counseling and Planning, with an emphasis on Consumer Finance and Education from Purdue University. Schane holds certificates in entrepreneurship, innovation and diversity, respectively, and is currently completing his certification as an Accredited Financial Counselor. Schane has a strong advocacy for college graduates and current students with his work as a Membership and Loan Representative in the credit union industry.

 

INSTAGRAM YOUR MONEY MOMENTS: SEND’em to US!

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Smarteys is starting a new dialogue today. And we’re so excited. Folks are literally whipping out their cameras as we speak. 

From May 1st – May 31st, send us Instragram photos of your fav money moments. You could be buying a pair of jeans, paying bills, reading a money magazine, talking to your family or friends about el dinero, or even making it rain at the club like a rock star.

Either way we want to see it!  Send all photos to info@smarteys.com or via twitter @smarteys and be sure to use hashtag #moneymoments

We’ll feature your best pictures on our Instagram account. We even have a few other surprises up our sleeves that you don’t want to miss out on. But to be eligible, you have to submit a photo. So, what are you waiting for?  Grap your phone and start shooting now!

INSTAGRAM YOUR MONEY MOMENTS: SEND’em to US!

4 FINANCIAL TRUTHS FOR GENERATION Y

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Investopedia.com 4/16/2012

Since the Great Recession of 2008 and 2009, the financial rules that most Americans operated under have changed and it might be the fact that Generation Y was in the sweet spot of the economic downturn that has caused them to redefine their beliefs about money.

Putting actual date ranges on the different generations is difficult, but Generation Y, also called the millennial generation or “eighties babies,” are said to have birthdates ranging from the 1970s through the mid-to-late 1990s and may number as many as 70 million. If you’re in your twenties, thirties or early forties, then you may be part of Generation Y.

What’s more important is your role in the workforce. You’re most likely in the early or middle stages of your work life but because of the Great Recession, you may have had to redefine your rules for money, and if you haven’t done so already, then you should. We have a few rules you should consider as you move forward into unknown financial territory.

Don’t Count On the Degree

Parents often tell their children that they have to have a college degree to be successful and in large part, that’s still true. According to the Bureau of Labor Statistics, the current unemployment rate among college graduates is 4.2%, compared to 8.3% for those with only a high school diploma.

However, that doesn’t mean that a college degree assures you a job once you graduate. The Washington Post reports that the unemployment rate among Architects is 13.9%, and 11% for people with arts degrees.

New rule: do something that you enjoy, but research the job outlook for your field before committing to the degree program.

Be Afraid of Credit

Credit cards might be as American as baseball, but with jobs scarce and the economy only slowly improving, holding a lot of debt is a dangerous endeavor. When you take on debt, you’re betting on your future ability to pay it and as many households have found, that isn’t always true. The average household debt for those with credit cards is more than $15,000, and 3% of those households are at least 30 days delinquent.

New rule: don’t think of your current job as safe. Many have been laid-off, leaving them with no way to pay their debts. Keep debt at a much lower level than in the past.

A Home Isn’t an Investment

If you’re an investor purchasing homes at almost ridiculously low levels, hoping to rent and later sell the properties, a home is an investment. For those who are purchasing a home as their primary residence, the old idea that a home is not only a place to live but also a money-maker, is no longer true.

First, homeowners generally stay in their homes from five to seven years, which isn’t sufficient time for their homes to appreciate. Next, the collapse of the housing market has left nearly one out of every four homeowners owing more on their home than it is worth. It may take many years for housing values to return to fair value. As a result, many now consider renting as a better option.

New rule: if you purchase a home, don’t do it because it’s a good investment. Do it for other reasons, like a low interest rate and a great price. Don’t count on making money from your home when you move.

Invest Early and Often

The Great Recession hit the baby boomer generation hard. Many baby boomers believed that they would have enough money to retire, but the collapse took much of that money from them, forcing many boomers to continue working well into their sixties.

There is no risk-free investment, but the best way to protect against losses such as these, is to save and invest larger amounts earlier in life. As the balance grows and your portfolio is more diversified, you’ll have greater flexibility to handle the ups and downs of the markets. New rule: think about your retirement plans on the first day of your career and continue investing more than you think you should.

The Bottom Line

When our grandparents spoke of the Great Depression and how they learned valuable financial lessons from that era, we probably didn’t understand what they meant until we weathered the storm of 2008 and 2009. As a result, we’ve changed how we think about money, and that’s a good thing.

“4 Financial Truths for Generation Y” was originally run as “4 Money Lessons for Generation Y” and owned by Invesopedia.com.

BUDGETING 102: PLANNING AND SAVING FOR YOU DREAM VACATION

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By Schane Coker

Let’s go on a dream vacation! But first, there are some things to consider before choosing your ideal destination for relaxation. Below are 5 tips on traveling and how they save you time, money, and stress.

1.     Plan your spending limits from start to finish

Include items often not budgeted, for example the cost to and from the Airport, tips to the housekeeper, and room service. To prevent this trip from interrupting your regular cash flow, have a vacation fund set up in which a small part of your paycheck goes (via Payroll Split or Automatic Deduction in which you don’t even have to transfer the money yourself) to saving the amount needed to cover your desired spending limits. While on vacation, try to leave a little left over to jump start saving for your next vacation.

2.     Drastically reduce costs by staying with friends or family

This can cut your vacation expenses by a large portion. Not only may you have a place to stay for cheap (or free) but also access to transportation and food. Additionally, your host might know other costs saving tips, like which day and time the best deals are found at the local attractions.

3.     Inform your Financial Institution when and where you are traveling

Calling your bank and credit card company is one of the most important steps to follow when traveling. If the financial institution flags a transaction as out of the ordinary for your normal account activity, and you had not made them aware of your travels, then the company could lock your account and prevent access to cash or additional charges until the flagged actively is cleared with you. When traveling where phone service is spotty, this can put you in a very bad situation.

4.     Pick a destination, but weigh all your options to get there

Although flying could be the preferred option, consider driving or taking the train or bus line during some leg of your trip to cut down costs. Booking flights that depart from smaller regional airports, as well as, flights on a weekday instead weekend is often considerably less expensive then prime-time departures from major hubs.

 5.     Find things in your Vacation Destination that are free to do

Do a web-search for “Free things to do” in your destination. No doubt that sightseeing is always on the list. There is little charge for wondering around destination paradise and taking in the sights and sounds. However, be sure to keep cash with you in case you choose to hop on the local bus or take a cab back to your accommodations. Also, check out the Visitor Center. Every major national and international city has such a center. Here you’ll find all sorts of freebies.

Be conscious of your spending, but don’t let money hold you back from having fun.

A good friend told me this while I studied abroad in Australia, the goal of a vacation should be to relax and to experience new things not in your everyday life, so while you should remain conscious of the money you spend and have left to spend, enjoy yourself. That’s most important.

Schane Coker has a B.S. in Financial Counseling and Planning, with an emphasis on Consumer Finance and Education from Purdue University. Schane holds certificates in entrepreneurship, innovation and diversity, respectively, and is currently completing his certification as an Accredited Financial Counselor. Schane has a strong advocacy for college graduates and current students with his work as a Membership and Loan Representative in the credit union industry.

BUDGETING 101: MAKING PERSONAL FISCAL PLANNING FUN AGAIN!

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By Schane Coker

Budgeting can be fun. You make it that way by focusing your main budgetary concerns, goals, and outcomes on something specific and positive such as paying off student loans, saving towards a home purchase, or building an emergency fund. Budgeting is a financial forecast – to allocate income to expenses and reserves (savings).  Keeping a budget does not have to feel daunting and time consuming because it’s rewarding to know your financial standing is solid.

Following the tips listed below, can not only make you feel more confident in your financial decisions, but can also ease the pressure felt when transitioning from academic life to professional life.

Tip 1: Get your DIBS first.  The secret to sticking to your money goals is to plan for the big things first, like debt, income, bills, and savings. After taking care of those things, you’ll want to focus on the money left over for discretionary spending. Use Paycheck Planner to find out how much money you have left after your DIBS. The remaining tips address managing that number.

Tip 2: Personalize/Name your budget. A cold and stagnant budget can make using it intimidating. The main goal of a budget is to make it feel like the friend you want to take everywhere. So, name it. Like, “the spring break budget” or “hot date budget.” No matter what the name, it should be flexible and subject to change along with anything that might happen in your life, just like a great friend.

Tip 3: Write down everything you purchase. At the end of each day, keep your budget updated. For college students who spend an insane amount of money going out with friends, impulse spending can get us in trouble. Tracking your purchases will force you to keep tabs on how close you are to your spending limit and help curb your impulses.  

Tip 4: Keep your receipts. We all waste money by not correcting overcharges or by not returning something we no longer want. Keep your receipts for 30 days (or longer if a warranty is attached to the product) to make sure that the payment has been processed correctly or to use for a return should you change your mind. Did you know that a vendor has up to 6 months to process a transaction before it becomes null and void?  

Tip 5: Determine your budget per paycheck. Planning your money in shorter durations will keep you from falling off the deep end. It’s so much easier to think about the money coming in and going out on a paycheck cycle. Once you know the money in and money out, you can better adjust your spending for discretionary things.

Tip 6: Make it digital. Of course being green is a good thing, but just as important is keeping a digital record of your budget will make your money planning more organized and efficient.

Tip 7: Go off budget (you deserve it). A budget is a financial forecast not a fiscal dictator. If you want to reward yourself for conquering a major final or proving to be an interviewing superstar, than do it, go off budget. But if your budget is at its limit, ask these key questions to justify your spending:

-How will I make up this deficit in the next pay period?

-How often do I try to justify going off budget?

-Is this purchase worth it or can I celebrate some other way? 

See, I told you. Budgeting can be fun.

Schane Coker has a B.S. in Financial Counseling and Planning, with an emphasis on Consumer Finance and Education from Purdue University. Schane holds certificates in entrepreneurship, innovation and diversity, respectively, and is currently completing his certification as an Accredited Financial Counselor. Schane has a strong advocacy for college graduates and current students with his work as a Membership and Loan Representative in the credit union industry.

Why Student Loan Repayment and Startups Are Correlated

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via Google Images

“It’s nearly impossible to jump when your feet are in cement.” That’s the recent tweet from a college-aged entrepreneur who was responding to President Obama’s announcement to make college more affordable for students by starting with student loan repayment reform.

The College Board reports roughly 56 percent of 2009-2010 bachelor’s degree recipients at public four-years graduated with debt, averaging about $22,000. At private nonprofit universities, the figures were higher — 65 percent and around $28,000. One can only image the figures for professional degrees – business, law, and medicine.

As these students plan the future, it is paralyzing to get over the large amount of debt and “do” something other than get a job.  Lauren Asher, President of the Institute for College Access and Success, who also applauded the Obama announcement, said “Psychologically, practically, [the debt] is a big number, and it will inform important choices, like when and whether you buy a home, start a family, save for retirement or take the risk of starting a new business.”

If the White House administration is serious about increasing and supporting entrepreneurs as a way to pull this country out of its slump, than we must address the impact of student loans on a founder’s freedom to build a company.

There are no more silver spoons.

The devastation of the last few years has made it increasingly difficult for founders to approach their friends and family for investment. And a founder’s personal funds typically used to make up any capital shortfall are poured into the tar pit of student loan repayment instead. As founders opt for day jobs to support themselves and the business, their next best use of a dollar is an ever more critical decision.

The only tool to assist current students and recent graduates to plan their income is Paycheck PlannerSM launched last month.  A current student, Ryan, wrote, “I actually used the Planner once I got my full-time job offer to see how much money I’d have left over once I started paying back my loans and paying off my credit cards. It wasn’t much. But it showed me where I can make different choices to get some extra capacity, like getting a roommate. I save a ton doing that. I plan to use that extra money to pay the developer for my mobile app.”

Paycheck Planner is one way Smarteys is helping students jump into entrepreneurship or any other career they choose after college. Giving current students and recent graduates this kind of tool is the difference between Ryan starting the next Bu.mp or giving up on his startup aspiration. There’s no other resource for people to make this kind of financial comparison.

WHAT’S YOUR PERSONAL LIFE EXIT STRATEGY?

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By Schane Coker

What’s your Personal Life Exit Strategy? Sounds as if you’re being asked for your death plan with only seconds to live, but what the question really asks is how are you planning to retire. You’ve likely thought about this process or have been asked to estimate the age you’d like to transition from working full-time to kicking up your heals and also how you’d want to spend those golden years. While this is very important to consider, what is more salient is what type of action plan you will set in place to retire. Could you describe your plan now and how long will it take you to implement it?

Why is this idea of a “Personal Exit Strategy” worth seriously considering at our age and while not employed? Well, the buzz is that by the time the current college students retire, Social Security and Medicare will be a thing of the past. It will be up to us to survive during our golden years. While the fear of Social Security ending has been around for a while, it’s increasingly becoming a real possibility for our future given the size of the Baby Boomer generation. There just isn’t enough Generation X’ers to support them. Even should everything work out, you’d probably still want to be independent for the vital needs that make everyday living possible. So you can’t avoid thinking about how you will retire.

What can you do now? Take simple steps to create a budget with a small concentration of funds allocated to some type of Retirement Plan (IRA, 401k, etc.). This contribution can and will make a world of difference in the long run. An adage I was told that really drives home this message is “Live like a Nobody today, and you will be able to live like No Body tomorrow.” Taking necessary precautions (and sometimes making painful sacrifices) to stash away money for a better tomorrow may constrain your wallet now, but your future elder-self will thank you.

One of the easiest ways to start saving for old age is to start an IRA (Individual Retirement Account). Most Financial Institutions offer some type of retirement plan, so start your inquiry at your local bank and/or most preferably, Credit Union. Have a Membership Representative of that institution walk you through their variety of IRAs (Traditional or Roth). Make sure you’re consulted on which type will best suit your lifestyle and tax bracket. Though you may not be able to fund the account as much as you’d like, have mom or dad cut you a check for your retirement account as a Christmas, graduation, or birthday gift. Not only will it show them that you are focusing on your future, it will also put their mind at ease that you are becoming a responsible adult. And we all can use a few brownies points after the Project X style party we threw in high school while they were out of town.

If starting an IRA sounds intimidating (or the institution has a minimum balance requirement) you can always designate a plain old savings account as your temporary retirement account and transfer money there until you are ready for an IRA. At the very least, you accumulate interest and solidify your intent to focus on the future.

Schane Coker has a B.S. in Financial Counseling and Planning, with an emphasis on Consumer Finance and Education from Purdue University. Schane holds certificates in entrepreneurship, innovation and diversity, respectively, and is currently completing his certification as an Accredited Financial Counselor. Schane has a strong advocacy for college graduates and current students with his work as a Membership and Loan Representative in the credit union industry.

VIDEO OF THE WEEK

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Some times others say it better than we ever could, so we let them do the talking….enjoy the video of the week.

In her new book, “The Accordion Family,” sociologist Katherine Newman examines why more young adults in the world’s wealthiest countries are returning home to live with their parents — a phenomenon that Paul Solman has come across repeatedly in his reporting on global economic problems as part of his Making Sen$e series.

Watch ‘Accordion’ Families Expand for Boomerang Kids to Move Home on PBS. See more from PBS NewsHour.