Money Matters
Spender or Saver, What's Your Score?
Tightwad, responsible, or admirable? Which one of these terms would you ascribe to someone who seeks to save money? Would your spouse pick the same word? Attitudes toward spending are one of the major areas of conflict between spouses. Those who are prone to impulse buying are seen as irresponsible by those who carefully plan their purchases according to their budget allocation. From the perspective of the ones who see money as a means to buying whatever gives them pleasure, people who go out of their way to save money are tiresome. Each one would view the other extreme as compulsive. Where would you find yourself on the range between extreme saver and spender? Take the quiz below to find out.
1. You want a caffeine fix while away from home, so you:
a) pour a cup of coffee from the thermos you brought along from home; the home brew comes out to 40 cents a cup.
b) get a cup for $1.50 at a bagel store.
c) pick up your daily cup of Starbucks for $4.
2. When you go shopping you:
a) review store circulars to find which place has what on sale and bring just the amount of money you plan to spend and along with store or product coupons.
b) may look over a store’s ads then grab a credit card
c) don’t bother with circulars. What’s the point when you will see what’s in the store for yourself anyway? You bring at least 2 credit cards; you don’t want to miss a buying opportunity just because you’ve hit the max on the first card.
3. Your mode of operation on shopping for a pair of walking shoes is:
a) staying focused on what you need, ignoring all the dress shoes, and looking at the price tags before you even consider a pair as a possible purchase.
b) looking for a comfortable pair that fits well but also trying on a pair of pumps in yours size that is within your price range and a basic you know you will use.
c) trying on whatever catches your eye and buying whatever looks good, regardless of price or present need; after all, you never know when that pair of lilac suede ballet flat will just make your outfit.
4. A designer name on something indicates:
a) you’re paying too much for it.
b) it is more expensive but may be better than one without, so it is worth buying on sale.
c) you made the right choice because the name on the item tells the world you have good taste.
5. When you feel the need to cheer up, you:
a) do something constructive that will make you feel accomplished and thrifty like clearing the yard.
b) treat yourself to a bit of refreshment (low fat if watching your weight)
c) treat yourself to a little something like a cashmere sweater, earrings, or French perfume sold in tiny bottles.
6. A trip to the city means an opportunity to:
a) take advantage of the many free attractions available.
b) an excursion out that may include a bite out and some browsing.
c) a chance to shop at some of the most fabulous stores.
7. Your car got splattered with mud, so you:
a) get out sponges, cleanser, buckets, a hose, and your vacuum, roll up your arms and get to work.
b) pull into a car wash that advertised an $8 special.
c) get the works for $195: washing, detailing, simonizing (whatever that is) and waxing, which reminds you to book a waxing for yourself. Your car should look good but not better than you.
8. Your car is out of commission for a week while your mechanic awaits the part that needs to be replaced. You work out your commute to work by:
a) finding out which one of your coworkers you can go along with and offer to repay the favor or even form a carpool once your car is back.
b) taking public transportation or car service to get to work.
c) taking the week off and seeing this as a perfect opportunity to take a vacation; after all, you can’t get to work without your car, so your boss would surely have to give you the time off.
9. Vacation conjures up the following images:
a) walking, bicycling, picnics, and attractions without entrance fees.
b) a place away from home reachable by car, motels, interesting places that are not tourist traps.
c) planes, exclusive hotels, elegant cuisine, luxury shopping.
10. Shopping at Wal*Mart is:
a) a good idea so long as you keep focused on buying only what you need and resist buying what you don’t just because the price is low.
b) a great choice for saving on certain grocery items and finding accessories inexpensive to treat yourself to.
c) not what I do.
11. When you think of dinner, the next thought is:
a) what you have in your refrigerator and freezer to be cooked
b) what you can pick up that is fast and easy.
c) a new restaurant.
12. You are contributing a fruit platter for a shower, so you:
a) select the fruit and cut it up, arrange it, and wrap it up –cost $15.
b) pick up some precut melons and berries, so you don’t have to do any cutting just arranging and wrapping –cost $28.
c) phone in an order for one be delivered; that’s $55 for the platter plus $7 for delivery.
13. When a hem falls on your skirt, you:
a) sew it up yourself.
b) find a seamstress to sew it for you.
c) toss it into the back of the closet and buy a new one; it’s obviously a sign that you should.
14. Your view on manicures:
a) pay someone to paint my nails? Get real!
b) something to treat yourself to for special occasions.
c) standing appointments every week are essential.
15. You get a tax refund of a thousand dollars, so you:
a) put it in a bank account and consider possible investments.
b) use half to splurge on a purchase normally beyond your budget and save the rest.
c) go shopping and then out to eat at the most expensive restaurant you can get to.
16. There’s a book you really want to read, so you:
a) put in a request for it at your library; you can enjoy reading it as much a month later as you would now.
b) check for the lowest price on it online to get it delivered within the week.
c) find a full-price bookstore that has it in stock so that you can get it immediately. Who wants to wait?
17. It’s your friend’s birthday, and you surprise her with:
a) a homemade cake in her favorite flavor and a card.
b) a dinner for the two of you.
c) a party for 50 of her friends at an elegant restaurant.
18. An enjoyable date:
a) does not have to cost anything if you skip the overpriced drinks and places with admission charges.
b) often does cost something, but the real measure is the conversation.
c) is one that cost a minimum of three figures.
19. Your selections of dishes for your home would be:
a) practical, inexpensive, and replaceable, as they are bound to break down the road.
b) something you like that won’t break your budget even when it breaks eventually, though you will try to get something not too delicate.
c) the height of elegance to reflect your refined taste; only the finest brand name china is fit to your grace your dinner table.
20. Your view on credit card interest is:
a) it should be avoided above all, even if that means always paying cash.
b) it may unavoidable if unexpected expenses have to be covered.
c) what has to be paid each month as part of the minimum payment on the statement.
To assure you answer each question honestly, be sure you don’t have anyone peeking over your shoulder while you mark your choices. You don’t want to feel pressured to mark what you believe would be expected of you. Take 3 points for each A you select. Take 2 points for each B you select. Take 1 point for each C you select.
A score of 20-27 indicates that you view budgets the same way some do deadlines – as something put in place just to be broken. With such spending tendencies, you could find yourself in debt even with a substantial income. If your score is 53-60, you are a cautious person who can be counted on to stick to a budget. You should be able to achieve goals such as owning a home, educating your children, and having enough saved to retire into a comfortable old age. But you would likely not be able to tolerate someone who buys first and thinks of bank balances. If you score 37-43, you are quite in the middle of the range between spending and saving. However, there is not just a single center. If you score 28-36, then you have a tendency to some extravagance, which may need to be checked if your income does not keep pace with your tendency to spend. If you score 44-52 you have a tilt toward thrift which should serve you well in keeping on a sound financial course, though you would not be strictly rigid about saving all the time.
A person who is basically centered but tends to give in to strong temptations to spend could be counterbalanced by a spouse who tends toward the other end. While opposites may initially attract, two people at opposite ends are likely to clash because their perspectives are fundamentally different, which would make it very difficult for them to come to an agreement about their finances. On the other hand, the middle of the road individual, who is conscious of both the need for budgeting and the temptation of treating oneself with something extravagant is probably the best choice for either extreme. Someone who is in the center can possibly curb the tendency of the spendthrift or influence the saver to relax the virtue of thrift when appropriate with a sympathetic understanding of the forces that drive another into more extreme behavior.
Tightwad, responsible, or admirable? Which one of these terms would you ascribe to someone who seeks to save money? Would your spouse pick the same word? Attitudes toward spending are one of the major areas of conflict between spouses. Those who are prone to impulse buying are seen as irresponsible by those who carefully plan their purchases according to their budget allocation. From the perspective of the ones who see money as a means to buying whatever gives them pleasure, people who go out of their way to save money are tiresome. Each one would view the other extreme as compulsive. Where would you find yourself on the range between extreme saver and spender? Take the quiz below to find out.
1. You want a caffeine fix while away from home, so you:
a) pour a cup of coffee from the thermos you brought along from home; the home brew comes out to 40 cents a cup.
b) get a cup for $1.50 at a bagel store.
c) pick up your daily cup of Starbucks for $4.
2. When you go shopping you:
a) review store circulars to find which place has what on sale and bring just the amount of money you plan to spend and along with store or product coupons.
b) may look over a store’s ads then grab a credit card
c) don’t bother with circulars. What’s the point when you will see what’s in the store for yourself anyway? You bring at least 2 credit cards; you don’t want to miss a buying opportunity just because you’ve hit the max on the first card.
3. Your mode of operation on shopping for a pair of walking shoes is:
a) staying focused on what you need, ignoring all the dress shoes, and looking at the price tags before you even consider a pair as a possible purchase.
b) looking for a comfortable pair that fits well but also trying on a pair of pumps in yours size that is within your price range and a basic you know you will use.
c) trying on whatever catches your eye and buying whatever looks good, regardless of price or present need; after all, you never know when that pair of lilac suede ballet flat will just make your outfit.
4. A designer name on something indicates:
a) you’re paying too much for it.
b) it is more expensive but may be better than one without, so it is worth buying on sale.
c) you made the right choice because the name on the item tells the world you have good taste.
5. When you feel the need to cheer up, you:
a) do something constructive that will make you feel accomplished and thrifty like clearing the yard.
b) treat yourself to a bit of refreshment (low fat if watching your weight)
c) treat yourself to a little something like a cashmere sweater, earrings, or French perfume sold in tiny bottles.
6. A trip to the city means an opportunity to:
a) take advantage of the many free attractions available.
b) an excursion out that may include a bite out and some browsing.
c) a chance to shop at some of the most fabulous stores.
7. Your car got splattered with mud, so you:
a) get out sponges, cleanser, buckets, a hose, and your vacuum, roll up your arms and get to work.
b) pull into a car wash that advertised an $8 special.
c) get the works for $195: washing, detailing, simonizing (whatever that is) and waxing, which reminds you to book a waxing for yourself. Your car should look good but not better than you.
8. Your car is out of commission for a week while your mechanic awaits the part that needs to be replaced. You work out your commute to work by:
a) finding out which one of your coworkers you can go along with and offer to repay the favor or even form a carpool once your car is back.
b) taking public transportation or car service to get to work.
c) taking the week off and seeing this as a perfect opportunity to take a vacation; after all, you can’t get to work without your car, so your boss would surely have to give you the time off.
9. Vacation conjures up the following images:
a) walking, bicycling, picnics, and attractions without entrance fees.
b) a place away from home reachable by car, motels, interesting places that are not tourist traps.
c) planes, exclusive hotels, elegant cuisine, luxury shopping.
10. Shopping at Wal*Mart is:
a) a good idea so long as you keep focused on buying only what you need and resist buying what you don’t just because the price is low.
b) a great choice for saving on certain grocery items and finding accessories inexpensive to treat yourself to.
c) not what I do.
11. When you think of dinner, the next thought is:
a) what you have in your refrigerator and freezer to be cooked
b) what you can pick up that is fast and easy.
c) a new restaurant.
12. You are contributing a fruit platter for a shower, so you:
a) select the fruit and cut it up, arrange it, and wrap it up –cost $15.
b) pick up some precut melons and berries, so you don’t have to do any cutting just arranging and wrapping –cost $28.
c) phone in an order for one be delivered; that’s $55 for the platter plus $7 for delivery.
13. When a hem falls on your skirt, you:
a) sew it up yourself.
b) find a seamstress to sew it for you.
c) toss it into the back of the closet and buy a new one; it’s obviously a sign that you should.
14. Your view on manicures:
a) pay someone to paint my nails? Get real!
b) something to treat yourself to for special occasions.
c) standing appointments every week are essential.
15. You get a tax refund of a thousand dollars, so you:
a) put it in a bank account and consider possible investments.
b) use half to splurge on a purchase normally beyond your budget and save the rest.
c) go shopping and then out to eat at the most expensive restaurant you can get to.
16. There’s a book you really want to read, so you:
a) put in a request for it at your library; you can enjoy reading it as much a month later as you would now.
b) check for the lowest price on it online to get it delivered within the week.
c) find a full-price bookstore that has it in stock so that you can get it immediately. Who wants to wait?
17. It’s your friend’s birthday, and you surprise her with:
a) a homemade cake in her favorite flavor and a card.
b) a dinner for the two of you.
c) a party for 50 of her friends at an elegant restaurant.
18. An enjoyable date:
a) does not have to cost anything if you skip the overpriced drinks and places with admission charges.
b) often does cost something, but the real measure is the conversation.
c) is one that cost a minimum of three figures.
19. Your selections of dishes for your home would be:
a) practical, inexpensive, and replaceable, as they are bound to break down the road.
b) something you like that won’t break your budget even when it breaks eventually, though you will try to get something not too delicate.
c) the height of elegance to reflect your refined taste; only the finest brand name china is fit to your grace your dinner table.
20. Your view on credit card interest is:
a) it should be avoided above all, even if that means always paying cash.
b) it may unavoidable if unexpected expenses have to be covered.
c) what has to be paid each month as part of the minimum payment on the statement.
To assure you answer each question honestly, be sure you don’t have anyone peeking over your shoulder while you mark your choices. You don’t want to feel pressured to mark what you believe would be expected of you. Take 3 points for each A you select. Take 2 points for each B you select. Take 1 point for each C you select.
A score of 20-27 indicates that you view budgets the same way some do deadlines – as something put in place just to be broken. With such spending tendencies, you could find yourself in debt even with a substantial income. If your score is 53-60, you are a cautious person who can be counted on to stick to a budget. You should be able to achieve goals such as owning a home, educating your children, and having enough saved to retire into a comfortable old age. But you would likely not be able to tolerate someone who buys first and thinks of bank balances. If you score 37-43, you are quite in the middle of the range between spending and saving. However, there is not just a single center. If you score 28-36, then you have a tendency to some extravagance, which may need to be checked if your income does not keep pace with your tendency to spend. If you score 44-52 you have a tilt toward thrift which should serve you well in keeping on a sound financial course, though you would not be strictly rigid about saving all the time.
A person who is basically centered but tends to give in to strong temptations to spend could be counterbalanced by a spouse who tends toward the other end. While opposites may initially attract, two people at opposite ends are likely to clash because their perspectives are fundamentally different, which would make it very difficult for them to come to an agreement about their finances. On the other hand, the middle of the road individual, who is conscious of both the need for budgeting and the temptation of treating oneself with something extravagant is probably the best choice for either extreme. Someone who is in the center can possibly curb the tendency of the spendthrift or influence the saver to relax the virtue of thrift when appropriate with a sympathetic understanding of the forces that drive another into more extreme behavior.
From the Winter 2008 issue: Don't Throw It Out
“They don’t make them like they used to.” You know that cliché you’ve hear from your parents or even grandparent? Unfortunately, it is true. Built in obsolescence applies not only to items that utilize the latest technology .like cell phones but to simple, everyday items like shoes. They are designed to be thrown out rather than repaired. The shoes of yesteryear were made with an understanding that a well-made shoe can last for many years even though the heel will wear down after only a few months of use. Consequently, the shoes were made in a way that allowed for heel replacement. For $5 you would get new heels to replace the worn ones on women’s shoes, $8-$10 for the larger men’s heels. But now when I bring in my husband’s shoes for heel replacement, the shoemaker says that it cannot be done. He explains that today’s shoes have hollow heels which makes them impossible to repair. There are two reasons for this state of shoes. One is the hollowness makes them lighter, something the wearer appreciates. The other is that it costs less to make the shoe, something the manufacturer appreciates. The manufacturer may also appreciate the fact that irreparable shoes need to be replaced altogether, which means another pair sold for him. It is really a shame that a shoe that otherwise completely intact requires replacement because the one worn part cannot be repaired.
As this type of situation is frustrating to the frugal among us who hate to be wasteful and throw things out, there is a book to alleviate the problem. While it does not offer a solution for the heels on shoes, Don't Throw It Out: Recycle, Renew and Reuse to Make Things Last by Lori Baird and the editors of Yankee Magazine (Rodale:2007) offers solutions and approaches to many other things you would use in your home. The ideas could not only save you money but help diminish some of the waste that contributes to the decline of our environment. The list price on the paperback is $17.95, but it is available from Amazon for $12.21. If you’re looking for a really good return on your investment, the purchase of this book is it. Implementing just a few of the ideas can result in significant savings.
Don't Throw It Out gives you the techniques for cleaning and maintaining the many things you are likely to find in your household, not just the big ticket items, but even hairdryers and irons -- both for clothes and hair. Within the pages, you’ll discover the tricks to remove the type of stains, spots, and discolorations you may have thought were impossible to rectify, from rust to rings on wood. You’ll find that vinegar is an indispensable item in a home even if you have absolutely no inclination to make cucumber salad. It can be used to clean so many things and is both non-toxic and inexpensive, a very good combination. If all else fails, the book offers a wealth of ideas for recycled uses of objects that can no longer serve in their original capacity.
Efficiency
Among the topics covered is the setup and maintenance of appliances, including diagnoses and remedy of problems One point on appliances to consider when making a purchase, while energy efficiency is certainly a virtue you seek in an appliance, do consider just how much savings in energy cost the Energy Star rating on an appliance promises you. Then do the math to calculate if it pays to pay $50 more now to save $10 a year on operating costs. Sometimes the difference between an Energy Star rated appliance and one that does not quite make it into the category is not great enough to warrant the higher price tag.
Self-Reliance
A basic understanding of how your appliances function is essential, even if you do not feel confident enough to change the heating element of your oven yourself -- though the instructions are in the book for those who are. If you are completely clueless, you are in danger of being duped by incompetent or unscrupulous repairmen. For example, a few years ago, my not-old-but-past-warranty-age oven ceased to function properly. I called a company whose name I found in numerous ads for a diagnosis and estimate. I explained to the repairmen who came that I no longer heard the oven fan operate. They claimed that I did not understand that the real cause of the problem was the oven’s computer, which would cost over $400 to replace. As the man said this with a straight face, he was either completely incompetent or a consummate liar. But I wasn’t buying. Instead, I called Mark of A1, who confirmed that it was the fan alone that needed to be replaced, a repair that cost about $80.
Inefficiency and Warranty
Something to be aware of with respect to appliance repair is the limitations on service contracts. A new appliance usually is under warranty from the manufacturer for about a year. You sometimes have the option of extending the warranty coverage by purchasing a service contract. While it sound like a good idea in theory, in fact, there are some facts you have to be wary of. First of all, the warranty is voided by a number of possible actions on your part, so you must review the fine print. Among those actions is having a repair done on your own, even by a competent professional. Well, why would you want to pay someone for a repair that would be covered for free anyway? The answer is timing. While your warranty may guarantee a repair at no cost, it does not guarantee that it will be done at your convenience. A neighbor of mind said she was still waiting after 2 weeks for her oven to be repaired. In the meantime, she was shuttling across town to use her daughter’s oven. I have also seen desperate request for repair from people whose ovens have broken down shortly before a Yom Tov who simply cannot wait those weeks to get their service contract repair.
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Here are some pointers from the book with the page numbers that show its range from kitchen stoves to lipstick and the many reasons not to throw away those filters you thought you couldn’t use anymore.
Appliance Settings and Setup
You can cut down on your energy bills and the wear and tear on your appliances. How do you maximize the efficiency and lifespan of your refrigerator? By setting it at the right temperature, which is between 36 and 38 degrees F. That setting uses the minimal amount of energy to keep cold enough for the food within. For a freezer, set the temperature between 0 and 5 degrees F. Another thing you can do to keep your freezer running more efficiently is to keep it well stocked. That is because a nearly empty freezer has to work harder than one filled with food that helps maintain the cold (5).
Less on Laundry
If the clothes you are washing are not soiled but just not fresh, you can cut down the amount of detergent you use to half and set your machine for the shortest wash cycle. This would still effectively freshen clothes that do not need any stain removal. You would save on detergent, and the shorter cycle saves water and energy, as well as the “wear and tear” that washing causes on clothing and your machine (209).
Out of the Dryer: You’re not really going to toss out that dryer sheet just because you used already? Don't Throw It Out certainly lives up to its title in explaining how that dryer sheet can yet be used in any of the following ways (216):
- Even after a dryer cycle, the sheets retain the chemicals that deter static. Consequently, a wipe form them will help object attract less dust. Suggested uses are computer screens and window blinds.
- Several in a mesh bag can be placed in your dresser to keep your clothes fragrantly fresh.
- Wrapped around the head of a Swifter or other disposable cloth mop, it can pick up dirt from your floor.
When to Seek Cover
Covering your food processor with plastic wrap before locking the lid in place will keep it from requiring a cleaning that contributes to scrapes on its surface. (12) But do not try to apply this idea to keeping your oven floor clean. Placing aluminum foil on the bottom can result in a damaged heating element (7).
Location, Location, Location
If you have the option to set up your kitchen, try to set the refrigerator apart from your oven or range. While it may be convenient to pop food right out to the stove without having to walk across the room, the heat surrounding the refrigerator forces the compressor to work harder to maintain its cool temperature. As a result, it uses up more electricity and wears itself out faster (4). Another placement concern is the damaging effect steam has on wood. Cooking with steamers or steam kettles releases moisture that is not kind to the woodwork. Consequently, you should try to distance such appliance from cabinets overhead and minimize steam contact by placing kettles on the front of the range, so that they are not directly under the wood ( 27).
Creative Coffee Filter Uses
These are so varied and useful you may choose to try them even if your coffeemaker still takes the filters you have. The idea was that if you find yourself with filters that do not fit your new coffee maker, you do not have to toss them because they can be used in so many other ways (16-17):
- Their absorbent quality makes them useful for picking up spills or to for draining the oil from fried foods.
- Use them to polish. The fact that they are lint-free make them ideal polishing cloths for lenses, and they also work to buff your shoes to a shine.
- When shining your lips, you can use them to blot.
- You can use them to make cheese by draining yogurt in the filter placed in a mesh colander for a few hours or overnight.
- You can also use them as cheesecloth to bundle up spices that you don’t want loose in your soup.
- They are can double as small disposable plates for small things like cake and sandwiches.
- If you dropped some cork into your wine bottle, you can strain it out over a filter. (Hey, it will give you a chance to finally use one of those wine decanters most of us get too many of as wedding gifts.)
Cool Cosmetic Pointers
Shape Up Your Lipstick: A warm environment may sound inviting in winter, but high temperature can cause your makeup to melt. Lipstick can actually get so soft that it breaks apart when you attempt to apply it, and your pencils will smear as you try to draw a line. Don’t toss them, move them. Keep them in the refrigerator to keep them firm while its hot. Chilling your lipstick is also a good idea if you find that it has lost its shape. Use a razor to slice the end to shape it like new. But be sure the lipstick is firm before you do this, so pop it in the fridge first. Another lipstick trick comes from the freezer. After applying lip gloss, run an ice cube over your lips to reduce the number of times you have to touch up (199).
Still, even the author of Don't Throw It Out has to concede that there comes a time when your cosmetic should be tossed. Even though they do not come with “best if used by __” on them, cosmetics do have limited lives. The lifespan of lipstick is given as a maximum of 18 months. The same goes for foundation and moisturizer. Other cosmetics have an even shorter duration: a year for eye shadow, pencils and concealer and a half a year for mascara (200). Considering these points, you don’t really save by buying the makeup with greater quantity if you will not use it all by the expiration date. I confess, that I have kept my makeup for longer than the recommended amount of time, though I do try to remember to replace my mascara as it can products used about the eyes can prove harmful if kept too long.
Save Yourself Time and Frustration
This book is not just about what to do yourself but how to find key information. So you want to call a company but do not have the number for it? You can try to find the company online to get its number. If that doesn’t work, you can still get the number of a though EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) if it is a public company. Find the company phone number listed at www.sec.gov/edgar/searchedgar/companysearch.html). Of course, sometimes the phone number just leads to further frustration of endless recorded messages. If you get as annoyed by the never-ending automated menus you encounter when trying to reach a person at a company, you’ll really value the insider’s trick this book offers. There is a website, gethuman.com/us, that lists over 500 companies’ toll-free numbers and the “shortcut to reach each company’s live customer service department” (166).
Now that tip alone may well be worth what you pay for the book. In truth, the creative and practical ideas of the book could save you quite a number of pretty pennies in the long run. Though I started this article with the affirmation of one old saying, I must point out that the cliché, “A penny saved is a penny earned” is not true. Pennies saved are better than pennies earned because what you save you keep, while what you earn is subject to federal, state, and local withholding. Still, if you are not yet certain about Don't Throw It Out, just imagine the possibilities. Picture your mother-in-law’s r reaction when you casually mention that you did not need to call her plumber because you fixed the problem with your faucet yourself. The home repair saves you the cost of a service call, but the astonished expression on your mother-in-law’s face would be priceless indeed.