Spending Habits

Personal Finance For Every Income

January 29, 2018 By Twila Van Leer

Some people hear the phrase “personal finance” and assume that it is meant for people with lots of money. Not so. In fact, it may be that the less money you have, the more important it is to track it and make the best use of it.

Even if you are living paycheck to paycheck, there are usually things you can do to make savings possible.

Start with a budget. Seeing your income and outgo in black and white gives you a good starting point. Then analyze your spending and see where there might be some wiggle room. Having a clear picture of where you are can help to plot out a direction.

Eating out too often? There is something to save if you discipline yourself to make less expensive meals at home. Lower the speed on your Internet. Choose a less expensive cable package, or dump cable altogether. Avoid compulsive purchases. Even if an item of clothing is on sale, it isn’t a good deal if it derails your savings intentions.

If you cut all the corners you can and still aren’t able to put a consistent amount into savings, it may be time to look at more extreme options, such as taking a second job temporarily so you can pay off debt.

Downsizing your living space may be possible. That means saving in several areas, including the housing itself and the cost of the utilities it takes to live there. Making drastic changes for the short haul to come out better over the long term is smart.

Bottom line: Don’t wait until you can easily afford it to begin a savings program. Scrimping a bit now will pay off in the future when your income is likely to be larger. You will have developed the habit so that retirement savings will come natural.

Biggest Cyber Monday Ever

January 5, 2018 By Twila Van Leer

The phenomenon that has changed the face of shopping in American — doing it online — proved itself well entrenched when Cyber Monday took place on the first Monday after Thanksgiving. When all the calculations are completed, the day devoted to electronics-related items may well have set new records.

Adobe Analytics, the research arm of giant software maker Adobe, reported that as of 4:30 p.m. on Cyber Monday, some $3.4 billion in sales had been recorded, a 17 percent increase over the 2016 Cyber Monday. Web traffic from mobile devices also took an uptick, surpassing desktop computers for the first time. Even a seasoned expert such as Frank Yanover, retired Amazon exec, found he could be persuaded by what they found online. He bought a Vitamix blender for $300, a $200 discount. He also succumbed to a deal from Best Buy for an iPad, ordering by phone and then picking it up from a nearby store. He finished up his unscheduled online spree with his voice-activated Echo by purchasing Amazon’s Echo Dot for $30 — a $20 reduction.

Echo Dot was, in fact, Amazon’s top-selling electronic item for Cyber Monday, followed by Fire TV board games, Fingerlings and Legos over in the kid’s section.

At eBay, they were selling a $745 Apple MacBook Air every five seconds. J.C. Penney reported its top-selling Website item were towels, $25 diamond stud earrings and Liz Claiborne handbags (which, incidentally, features a built-in phone charger. What’ll they think of next?)

Walmart, which has been trying to play catch-up with Amazon, offered three times the number of items online that it did last year, but Amazon appeared likely to retain the record, with 50 percent of all online sales growth this year.

Overall the most popular items sold online during Cyber Monday were computers and small electronics, followed by clothing, according to America’s Research
Group. Ease of shipping is a factor.

People who actually showed up in a store were almost the exception. Parking areas in some of the most popular stores were only half full as shoppers stayed away in droves to do their shopping in the convenience of their homes or offices. Of course, for those who still want the store experience, that means fewer shoppers to compete with.

Holiday Sales Grow From 2016

December 30, 2017 By Twila Van Leer

The 2017 holiday shopping season appears to be a very good one for America’s retailers, many of whom have not had much reason in recent years to be merry. The successful end-of-the-year selling shows that traditional retailers are adapting to the shift to online buying.

The tax overhaul recently passed by Congress could signal more shifts in shopping as ordinary Americans figure out how the changes might affect them and their ability to spend. If they are in the brackets that might benefit from the tax re-do, they might spend more. Or they might put the “savings” into savings.

As the year wound down, it appeared that the 2017 holiday season would stack up very well against previous years. One factor is that unemployment is at a 17-year low, contributing to the highest level of consumer optimism in years. The current spending spree is the most intense since the recession that is now about 10 years in the past.

Consumers are not only spending more this year, but they are putting more of their money into electronics, clothing and toys to a greater extent, according to the National Retail Federation. The federation noted with elation that the week before Christmas, the most critical time for retailers, saw a lot of traffic in stores. Many retailers see 20 percent of their foot traffic during that week. The fact that there was a full weekend immediately before Christmas also boded well for the industry, as late shoppers continued to flood the stores in search of last-minute gifts and stocking stuffers.

Most online shoppers have completed their buying before the last week to allow time for deliveries. They then are more likely to show up in the stores, bypassing the convenience of online shopping for the assurance that their gifts will be on time. Even so, the numbers of shoppers buying online continues to grow. Now, the growth in online sales is about double that level at stores, according to First Data, a payment technology firm. Online giant Amazon accounts for a considerable amount of the growth. Amazon has expanded into new areas, putting more categories of retailers on alert. The firm reported that its Cyber Monday sales tallied the highest in its history. Estimates are that Amazon accounted for more than 60 percent of the total sales for that day.

Some families have begun exchanging “wish lists” before the holidays, consisting of many web links. The shopping then becomes easier and the satisfaction with gifts more consistent.

Stores are responding to the online onslaught by offering more weekend deals and upping their loyalty programs.

Make Couponing Worth The Effort

December 24, 2017 By Twila Van Leer

With new shows devoted to couponing coming online all the time, even those who have been doing it for years can learn new tricks.

Finding a strategy that suits your own lifestyle and budget is critical. Here are some of the major do’s and don’ts that should guide your online couponing activity:

Look for a coupon any time you shop online. Before clicking the “buy” button, search for “your store of choice” for coupons and deals. Use a search engine or go to reputable websites that have a record of providing quality coupons.

Don’t go overboard. There is little benefit in spending hours searching for a $3 “bargain.” Know when to quit.

Look for alternatives to shipping costs. Many retailers offer site-to-store options so a quick trip to a local outlet will replace the $5-to-$10 shipping fee.

Don’t buy an item simply because it offers a coupon. Evaluate the big picture and hold off buying until you are sure it is financially sound. Impulse buying is fatal.

Ask for help in finding deals. One of the advantage of couponing online is that you can share the experiences of others. When you have a question, ask. Using the network is more efficient than unspecific hours of browsing and searching.

Be aware of too-good-to-be-true bargains. Almost inevitably, they are. Be realistic about what deals you might find. Be willing to settle for “good enough” if you feel uneasy about a prospective bargain.

Don’t expect that you will be a couponing guru in the first week. Being able to get the best results is largely a matter of experience. It takes skill and some people just naturally get better results than others. On the other hand, don’t be too quick to give up. This is a process that needs practice.

Don’t become obsessed. You can make your life very stressful and develop bad qualities such as stinginess, false expectations and spending money for dubious bargains. If you are not enjoying it enough to be worth the effort, quit.

Strike a balance. It’s all about time-management, resourcefulness and efficiency. For more information, follow Investopedia on Facebook.

Holiday Spending And Stress

December 22, 2017 By Twila Van Leer

If it’s getting to you, coming up with ideas for just-right gifts compounded with worry about what the spending will do to your finances when the holidays are over, read on for eight tips on how to cope.

Set limits on spending. Look on it as an opportunity to get your budget in shape. Let reason reign. It’s a simple fact that you can’t spend more than is available and stay on an even keel. Your gift-buying budget just can’t be allowed to dip into the bills you must routinely pay. If you feel you must have a little more to spend, it has to come from such things as eating out, entertainment, etc. that are expendable.

Make your own “naughty and nice” lists. You aren’t Santa. You don’t have to give to everyone in the world. If you still compelled to spread holiday cheer, bake some cookies, make some fudge or put your talents to work on simple gifts that don’t deplete the budget.

Budget realistically. Consider your place in life at the moment. If you are paying off student (or other) loans, for instance, let that guide your buying choices. Remember that your parents and other older people on your list got where they are through years of working and being careful of spending. Likely, their gift-giving was more modest then.

Coupon. The stores are full of bargains for the holiday shopping frenzy, but don’t overlook the potential for additional savings in online purchases by doing a quick web search for coupon codes for your favorite online outlets. Look through the advertising that arrives in your mailbox during the holidays. Comparison shop for the items you intend to buy.

Give time instead of gifts. Some of your family and friends would value a visit that includes little gifts and lots of hugs. Consider calling cards that will give them the opportunity to chat despite the miles between you.

Develop better spending habits. For every dollar you spend on gifts, try to squeeze out a way to offset that dollar by economizing somewhere else in the budget. If you can keep the budget even, there will be more to save at the end of the season. Or put the difference into a special savings account that will ease your way through the next holiday surge.

Give personalized gifts that are of more value to the recipient than something expensive but not so meaningful. If you have special talents, share them. Bake a cake or pie for a family member who is kitchen “impaired.” Give a friend a kitchen tool and a recipe for something he or she particularly likes. Make a personalized card – anything that speaks of you.

Organize group volunteer efforts. It’s likely your friends are coping with the same holiday challenges you are. Get together and spend a day at a local charity instead of giving gifts. You’ll spend quality time together and get an infusion of the spirit of the holiday. Take photos of the volunteer project and share them after the fact.

Bottom line: Don’t let debt rob you of the joy of sharing. A year-long headache as you struggle to repay is not worth it. If you can come out of the spending season with your finances intact, it will be the greatest gift you can give yourself.