Small Frivolous Purchase Is the Ultimate Pick-Me-Up?

Written by WellHeeled on February 28, 2011 · 19 Comments

Last weekend while strolling through an Urban Outfitters, I spied a rack full of belts on sale. One of them, the Ecote Sparrow Stretch Belt, caught my eye – it fits very well, and has an interesting hardware detail that I haven’t seen anywhere else. And, it was only $10 on sale (marked down from $24, the price still in effect online). So I got it. It’s a great belt, and I have already worn with the dresses and cardigans (cinching the waist – see, I AM learning from style bloggers!). Yes, it has only been a month and I have already broken my No Accessories Rule I’ve set out in my stab at minimalism.

Later that day I was chatting with a girl friend, and she asked me how my day was. I told her I bought a new belt, then I added, “$10 isn’t too much to pay for happiness.” I meant that tongue-in-cheek, but a little part of me realized that it’s true – buying the belt really did bring a jolt of happiness. ecote sparrow belt 2 Small Frivolous Purchase Is the Ultimate Pick Me Up?

Why do these little purchases make us happy? Before anyone say it’s a phenomenon limited to women, I know that when CB is feeling down, a $10 DVD is a little pick-me-up for him. I think most people use these small, arguably frivolous purchases as pick-me-ups. I may prefer a used book, a tube of lipstick, or a package of cookies; someone else might want a cheap bottle of wine or 5 songs from iTunes.

Dave Bach would cringe at this “Latte Factor”, but I don’t really feel compelled to stop these purchases. I am not sure what it says about my personal finance discipline or lack thereof. I arrange my finances by making the high-impact decision once (maxing out my 401K, for example), so I can have room to enjoy these small indulgences and still meet my goals. Still, there is something vaguely disconcerting about shopping to feel happy.

Do you make these small purchases? And do they make you happier?

Photo courtesy of Urban Outfitters

Real Estate (Pipe?) Dream

Written by WellHeeled on February 26, 2011 · 23 Comments

For the past few days I have been struck by a serious case of real estate fever. I spent hours at night surfing around Trulia looking at houses in the $300K to $500K range. We are not buying, mind you, but if we were I’d imagine that would be a good range for us.

Talk about depressing / dream-crushing / we-need-to-make-more-money-stat-inducing. See the picture on this post? Well, the results aren’t THAT bad. Still, a maximum price of $400,000 brought in results of 2-bedroom, 1-bathroom single family homes with wire fences on the intersection of Gangland and Gentrification, California.

Ladies and gentlemen, this is with 2 years of declining real estate prices.

By the time CB and I get married, finish grad school, get settled in our careers, and be in a position where we can move back to our corner of California and look at real estate, I wouldn’t be surprised if a 2-bedroom bungalow costs half-a-million, or more. We should be making more money, but we will also have the huge student loan nut to crack. Interest rates will certainly be higher than it is now, and the mortgage landscape may have changed significantly from now depending on what happens with Freddie and Fannie.

I really want a one-level, single family home that can be our “home base” while we expand into rental properties. This little jaunt down real estate lane has shown me that it’s not going to be an easy road.

Photo by kriswho via Flickr

Paying Debt vs. Saving Money

Written by WellHeeled on February 23, 2011 · 38 Comments

Mathematically, paying down debt and saving up money both require you to spend less than you make. The mechanics of paying off a $10,000 loan vs. saving $10,000 is the same – in both instances, you would have to have $10,000 left over after you have paid for all your necessary expenses.

Motivation-wise, though, the two goals are different. Paying debt has the added allure of “being debt-free” and saving on the interest on the debt. Saving money, however, means you are building something, instead of just digging yourself out of a hole. This obviously motivates some people (it’s easier to want to do even better when you are already doing well).

What do you think? Readers who have both paid down debt and saved up money – which one do you think is more difficult? Which one was more motivating?

What One Night Costs at a Comedy Club

Written by WellHeeled on February 21, 2011 · 7 Comments

dcmatt via flickr

A few weekends ago CB and I went to see a show headlined by Edwin San Juan. It was my first time in a live comedy club, and it was a good time. But I also realized that it can be a really EXPENSIVE time.

Cover charge: $20 / person.

CB and I got free admissions because the show didn’t sell out and the promoter wanted to pack more bodies into the room.

Here’s the real kicker, this club, as with most clubs, have a 2-drink / item minimum, per person. Each drink / snack on their menu cost between $5 to $16. It would be very easy to rack up a bill for $50 total.

Drinks & Food: $20-$30 / person

We decided got three appetizers ($6-$10 each) and a beer (Sam Adams, $6), and our total came out to $42 with tip.

If we had paid the door fee of $20 a person, though, the night would have cost us $80 all together. I am glad that we went, but I am not sure I can afford to go the next time!

Do you go to comedy clubs? How much does a night cost you?

We All Say We Don’t Want a McMansion, But What’s The SMALLEST You Will Go?

Written by WellHeeled on February 18, 2011 · 26 Comments

During the heydays of the real estate bubbles, McMansions popped up everywhere. The mantra seemed to be, “build (them big), and they will come.” Then after the bubble popped, McMansions became the subject of public and private ire. Fine, we all say that we don’t want McMansions. But what’s the smallest you will go? And keep in mind, one person’s McMansion is another person’s cottage.

Tiny Houses: Just how small is small?

Tammy Strobel, a minimalist blogger at Rowdy Kittens, is building a small house. And by small, I mean, really small) Her 150-sq. ft. house-on-wheels will cost an estimated $35,000. The low-cost comes from a small structure – less than 1/10 the size of an average American home, but mostly I assume it comes from the lack of land. If you are interested in building or commissioning a home like this, check out these great resources: Tumbleweed Tiny Houses, Tiny House Blog, Tiny House Design, and Design Boom’s feature on small houses.

While I’ve always had fairly conventional real estate aspirations, it’s cool to see people pursuing a different path. I don’t think the tiny house movement is for me: I don’t need or want a McMansion, but my idea of small is 700 sq. ft., not 150. Our apartment right now is a very spacious 1-bedroom, and sometimes I feel like I can do with 2/3 of the size – and I will GLADLY do so for 2/3 of the rent! My ideal home would be probably a 3 bedroom, 2-bathroom home in a nicely-appointed 1,000 sq. ft. Craftsman bungalow or Spanish-style home. Big enough to not feel cramped, small enough to be affordable (I hope). The second bedroom can be a library – aka my dream room. If we have a kid, I’d like the third bedroom. I’d also like a one-story home, which will add to the square footage.

How small would you go? Would you buy a tiny house on wheels?

My Advice to a Future Stay-At-Home Parent

Written by WellHeeled on February 16, 2011 · 15 Comments

A reader asked me what advice I would have if she wanted to stay home after she has children. The whole working-parent vs. non-wage-earning-but-still-working parent can be a touchy subject, and there is a potential for misunderstanding and hurt feelings on both side of the debate. But I think it’s GREAT that this reader is thinking ahead and trying to make a plan to minimize her risk and give her plan the best possible chance of success.

Given that I am not a mother and that I don’t personally know any stay-at-home parents, I am not quite sure I am qualified to give advice (I just want to be a guiltless mom). So I decided to make my answer into a post, and get all of your feedback on what advice you would have for someone who wants to become a stay-at-home parent. If I have any stay-at-home mom’s or dad’s out there, please chime in!

1. Make sure that your position at home is equally respected as that of an outside wage earner

The decision for one person to stay home requires sacrifices from (and of course, brings rewards to) everyone. So it’s a decision that needs buy-in from both partners. There has to be mutual respect for the different but equally-important roles that both partners play. There is nothing like resentment and money to eat away at even the strongest relationships. And unfortunately, the stay-at-home partner’s financial situation tends to be more precarious if the relationship fails (unless, of course, the SAH parent has independent financial resources).

2. Live on partner’s income and save your income for 6 months (ideally 12 months)

I am ONE person living on one income and even I find it hard sometimes! Okay, all kidding aside, I can only imagine how difficult it would be to have a family -especially a large family- and live on one income. Before you take that big step, make sure you understand what you would have to do to make it possible. Plus, the 6-months or 12-months of saving 1 salary will result in a nice emergency fund when you do make the transition from paid work to just plain work.

3. Make a plan to stay engaged in the workforce

I think the time of when someone (historically a woman) who leaves the workforce permanently at age 30 to raise a family is probably over. Some people step out of the workforce for 5 years, some for 10, some for 15. But at some point, most stay-at-home parents will have to seek paid work again because of financial reasons or because their children are grown and they want to reenter the workplace. It’s important to stay engaged in the workforce by maintaining your network of professional contacts (alumni associations, volunteer organizations, professional groups), perhaps doing some consulting or freelance work, or taking on some pro bono work. Keep an updated resume and be sure to take some time to go out for informational interviews to keep your toes in the market.

4. Spousal IRAs: Insist on them so you don’t neglect your own retirement

A stay-at-home mom or dad’s ability to contribute to tax-advantaged retirement funds are drastically diminished (unless you have self-employment income, but then in which case you wouldn’t be a non-wage-earning spouse).

One way the IRS allows spouses to save for retirement is with the existence of Spousal IRAs. A Spousal IRA allows a stay-at-home spouse contribute the full amount ($5,000 or $6,000 for those older than 50) in a year as long as their spouse earns enough to cover that contribution. The money in a Spousal IRA belongs to the stay-at-home spouse and can be an important way to save for retirement. This is so important, in fact, I will advocate that the Spousal IRA should be funded as a first priority after saving enough for the employer 401K match.

If you are a stay-at-home partner, insist on Spousal IRAs.

Note 1: Even though traditionally the stay-at-home parent has been a mother, I tried to make this post gender-neutral, because I think these are things that both men and women should think about before they decide to step out of the workforce, and because I don’t think there is any reason why one partner should be automatically viewed as the stay-at-home parent just because of the gender.

Note 2: I realize that I have used the terms “stay-at-home” and “non-wage-earning” interchangeably. They are obviously not the same thing as many people work from home full-time or part-time. However, in general I take the term “stay-at-home” to mean a parent/spouse whose primary responsibilities are to run the household / take care of children and has little or no responsibility for generating income. I wouldn’t think of a consultant who works 60 hours a week from home as a “stay-at-home” parent, even though she may be technically “at home.”

What advice do you have for a stay-at-home mom/dad? If you are planning to stay at home, what steps are you taking right now?

Food Budget Inflation Rampant: Time to Wave the White Flag or Double Down and Try Harder?

Written by WellHeeled on February 15, 2011 · 38 Comments

In the Me vs. Food Spending competition, the statistics are currently thus: Food Spending 10, Me -3

Fighting a never-ending battle with food costs

In November 2010, I spent $336 on Food & Dining ($185 groceries / $151 restaurants). In December 2010, I spent $297 ($78 groceries / $219 restaurants). In January 2011, I spent $279 ($20 groceries / $259 on restaurants). Granted, some of these splits might be biased because CB tends to pick up groceries on his way from work, and I will often pick up the check at restaurants to make up for the difference.

food 300x145 Food Budget Inflation Rampant: Time to Wave the White Flag or Double Down and Try Harder?

via flickr/clspeace

Still. For someone who had a ~$200 food budget just a few years ago and who had expected cohabitation to decrease food costs (because we can split groceries! and magically bond over cooking like characters in romantic comedies! – I was obviously not in my right mind), these numbers are a little hard to accept.

The truth is, I don’t like to cook after I come home from work. I find cooking time-consuming and thankless. *CB thanks me when I cook, as I do when he cooks, but on the whole I think this whole daily-grind-cooking (as opposed to special-occasion-cooking, such as a dinner party or a lovely brunch), is one of the most thankless jobs out there. Mom, I don’t know how you did it.

I’d rather pick up extra freelance assignments, or work longer hours and try to get a bigger bonus – in other words, I’d rather make more money to afford buying good food than try to scrimp and budget in that regard. But making more money takes time, while resisting the 6th restaurant visit in one week can be implemented immediately.

Resign to the higher food budget? Or make an extra effort to cook more?

On the one hand, is $300/month food budget for one person really that unreasonable? On the other hand, I can easily cut $50 or $100 out of the budget if I just cooked 3-4 more nights a month. Is cooking 3-4 more nights a month really that difficult? I know CB is also finding that our profligate dining out habits to be a drain on his finances. Given that neither of us lack things to save for, isn’t it worth more effort to cook?

I don’t know the answer to this. But I do know that I am hungry.

Carnival of Personal Finance: Cupid Tries to Teach Personal Finances

Written by WellHeeled on February 13, 2011 · 24 Comments

Ever since he was a little boy, Cupid loves L-O-V-E. Since then, the son of Mars and Venus has grown his penchant for shooting love arrows into the world’s leading matchmaking business. Every heart has a lock, but a Cupid’s arrow can pick that lock [Taking Charge]! Of course, Valentine’s Day is Cupid’s favorite holiday – lavish or frugal [Bargaineering] Cupid celebrates all aspects of this holiday.

As a true romantic at heart, Cupid was dismayed to see that many of the love matches he made crumbled under the pressure of every day life. “How sad it is that true love dies because of bad money decisions [Moolanomy] or misaligned financial priorities [Military Wallet], or lifestyle deflation [Nicole and Maggie].” Cupid lamented.

Cupid decided to talk to his parents, Venus and Mars, about the key success factors [Squirrelers] to financial health and love. “Couples need to fight fair about money disagreements [Matt About Money] and share broad financial goals – staying debt free [No Credit Needed] or saving for retirement [Retire Happy Blog],” Venus said. “Yes,” Mars agreed, “big issues such as a 15-year mortgage [Watson Inc] or a 30-year mortgage, how to save [Think Your Way To Wealth], deciding to invest or paying off credit card debt [Clear Choice Credit Card Blog], or figuring out car taxes [Debt Reduction Formula]. There might not be one right answer, but it’s important for both spouses to be on the same page.”

Cupid nodded. Whew, it sounds like love isn’t just about strawberries and chocolates and weddings [Blonde & Balanced]. Then, suddenly, he had an idea. “I shall teach personal finance to everyone [Credit Sesame] so they will be happy AND financially comfortable!”

For his first class, Cupid decided to focus on a few test couples to see if he can be a good financial advisor.

First up: Romeo & Juliet

Oh, Romeo and Juliet were in a bad strait. Their families thought they were dead, and no one will believe that they are actually alive. Instead, they were accused of identity theft [The Smarter Wallet] and with all the legal untangling that’s going on, all they can do is argue. “You don’t know how to work!” Juliet complained, “since this identity theft business [Credit, Eh] all you do is go out and play in sword fights. At least you can do something useful [Money Cactus], like paid surveys [Promo Code Center]. You don’t even cook so we can’t save on food costs [Cash Money Blog]!”

“But I serenade you with a guitar [EEMusings]!” Romeo retorted. “Besides, ow am I supposed to get a job when I can’t even get a checking account?” “Er, actually, you can!” Cupid interjected, “you can open a checking account when you are in ChexSystems [Yes, I Am Cheap]. And to better manage your money, you can check out the best money management software of 2011 [One Money Design].”

Romeo and Juliet looked at Cupid and in unison yelled, “We are from 14th century Verona. We don’t have software!” “Just wait for technology to change the way you buy [Personal Cents],” Cupid said confidently. “Just wait a few centuries.”

Second couple: Peter Pan and Wendy

This couple has a pretty good income – Peter Pan runs Neverland Tours and Wendy is a well-known children’s writer. But they just cannot stop fighting about how to invest their considerable savings [Do Not Wait]. Peter wants to time the market [Fire Finance] and can stand market volatility [Control Your Cash]. Wendy prefers to buy and hold dividend stocks [Dividends Value] and couldn’t care less about Jim Cramer [Growing Money].

Wendy wants to buy long-term care insurance [Funny About Money], but Peter says that they will never grow up, so why bother. Peter wants to get into forex trading [PT Money] and invest in individual stocks such as AOL [Intelligent Speculator], but Wendy is gun-shy. She prefers to join a investment club [Buy Like Buffett], while Peter Pan is a go-it-alone guy. Peter Pan wanted to buy expensive iPhone apps [the Dough Roller], while Wendy thinks that’s a waste of money.

They even fight over the little stuff, like what to tip for bad service [Free Money Finance] or when to file for taxes [Gen Y Wealth], or even what type of tax return product to use [Digerati Life]. They even disagree about non-money issues, such as Groupon’s Super Bowl ads [Consumerism Commentary]. Ay carumba!

Peter Pan and Wendy both want to stash more cash [Compounding Returns], but Cupid couldn’t make heads or tails of their arguments. Cupid finally sent them home with some good investing books [The Personal Finance Playbook], some tax information [A Gai Shan Life] and a guide to taxable vs. nontaxable income [Net Worth journey].

Third couple: Snow White & Her Prince

Snow White and her Prince fight because of a difference in spending. Snow White has started her own beauty company (which is doing great because of supply and demand [Money Thinking]), while the Prince makes money online [Studenomics]. Everything is great, except Snow White’s penchant for buying very expensive red lipstick and Netflix [Money Beagle]. The Prince says Snow White spends too much and is giving them bad credit [CardHub.com], but she insists that she needs to beat the winter financial blahs [Modern Gal] and that a budget is worthless [Live Real, Now].

“Well I want to retire by 40 [Retire By Forty]. We need to save money if I can do that. And what if we have a baby and one of us wants to stay home?” said the Prince. “Snow White doesn’t even compare auto insurance quotes [Money Smart Life]. And she never cares about my 10 tips to save money [Budgeting In the Fun Stuff]! I am so afraid we will end up in bankruptcy [Personal Bankruptcy Blog].”

“Ah, so you are losing your second income? there are ways to prepare [Rabbit Funds],” Cupid interrupted. “You can also use prepaid cards [Prepaid Card 123] so you don’t run the risk of overspending. And you need to plan in case one of you gets laid off [Len Penzo].”

Prince said, “I work hard too. I go through a lot finding good freelancers on Odesk [Money Help for Christians]. I even adjust my schedule to save money [The Financial Student]. I try to find the best credit card from Chase [Free From Broke] and I make my own group coupon [Blogging for Change].”

Snow White paused, then said, “well, I use cash back credit card [Credit Donkey Tips] to buy my lipsticks! Red lipsticks represent the type of person I want to be [Little Miss Moneybags], and you can’t take that away!”

“Given Snow White’s history of getting into life-threatening situations,” Cupid said, “perhaps you should consider estate planning [Bucksome Boomer].” At this, both Snow White and the Prince left in a huff. Ay, teaching personal finance is harder than Cupid has thought!

Fourth Couple: Pongo & Peridita

Humans are too difficult to counsel. Cupid, thought, so may be canines are easier. So he decided to help Pongo and Perdita. Perdita wants to go back to school to become a show dog, but Pongo debates whether school is a good investment [Good Financial Cents]. “We have 99 puppies,” Pongo said, “if you go to school the debt collectors [Wallet Blog] will come after us! Besides, how about our travel plans [Help Me Travel Cheap]? We wanted to visit Canada, remember?”

Canada! Cupid snapped to attention. “I can talk to you about RRSP basics [Canadian Finance Blog]!” But Pongo and Perdita didn’t hear him. They were too busy discussing their next step: invest in Lending Club [My Dollar Plan], figure out arbitrage techniques [Darwin's Money], bring in non-taxable income [Spruce Up Your Finances], remodel their farmhouse [Mom Vesting], and then they will have enough money to travel to Canada!

The End

After an exhausting four days of trying to counsel these couples, Cupid realized that what he does best is to shoot those little arrows of passion into unsuspecting men, women, and dogs. “I guess I should leave being a financial planner [Consumer Boomer] to the experts!” Cupid decided.

CNN Money Is Looking for Super Savers / Real Estate Investors

Written by WellHeeled on February 12, 2011 · 6 Comments

One of my favorite features from CNN Money is their Super Savers / Millionaires in the Making series. CNN is taking that series to paper: the publisher is recruiting for people to feature in their MONEY magazine. [I've written about CNN's Extreme Savers before, and have always found them to be a good source of inspiration].

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According to CNN:

MONEY magazine is seeking to interview real estate investors and super savers.

Specifically, we’re looking for people in their 30s or 40s (couples or singles) who are building wealth in either of two ways: (1) limiting their spending and making a habit of saving at least 15% of their household income; or (2) investing in real estate, with a few years of experience as a landlord or in rehabbing properties for resale. In both cases, we’d like to get advice on wealth-building from people who have at least $200,000 in assets (investments, retirement accounts and/or real estate), not including the equity in their primary residence.

Participants and their families would be photographed for the article; subjects would also have to be willing to have the dollar amounts of their household income and assets published in the magazine.

If you’re interested, please send an email to gmannes@moneymail.com containing your name(s), age(s), a phone number where you can be reached, and a brief description of your situation, including household income and assets. A MONEY editor will follow up with you.

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For me, talking about personal finance is so much easier when you are anonymous, but if you fit the criteria and want to share your story, here’s your chance!

Is anyone throwing their hat in the ring?

Welcome to New Sponsor: CareOne

Written by WellHeeled on February 12, 2011 · Leave a Comment

Welcome to CareOne as a new blog sponsor! CareOne Debt Relief Services is a provider of debt consolidation and counseling, with over 4.5 million customers. For people who are looking for more lifestyle tips or advice, CareOne also has its own resident Debt Diva (aka Clarky Davis) who blogs about money management and frugality tips.

Remember, if you decide that credit counseling or debt consolidation is the right step for you, be sure to understand the terms of your agreement and understand what type of services a debt management company will provide. Check out CareOne to see if it might be the right solution for you.

PlaySpent The Online Game’s Challenge: Can You Survive A Month in Poverty?

Written by WellHeeled on February 10, 2011 · 22 Comments

via UMD

There are millions of Americans out of work and living in poverty today. Can you survive for a month when you only have $1,000 to your name, can only find a low-paying job, and have kids or pets to care for? That is the question asked by the Urban Ministries of Durham, a faith-based organization that provides food, shelter, and clothing to those in need in Durham, North Carolina. In collaboration with the interactive agency McKinney, Urban Ministries came up with this brilliant and thought-provoking online game: SPENT. (Hat tip to Stephanie for tweeting about this game).

PlaySpent.org

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What is PlaySpent?

Here are the premises of SPENT from McKinney’s press release:

Your savings are gone. You’ve lost your house. Accept the challenge to see if you can make it through the month on your last $1,000, learning quickly how changes in employment, housing, medical costs and other expenses can create an unexpected shortfall.

Play through a series of difficult challenges that require tough choices about work, where you live and what you can provide your family, seeing all too soon how decisions lead to unimagined consequences. Learn important facts about the condition of homelessness and the many services UMD provides.

Whether you quit or get to the end with no dollars or one, click “Donate to UMD” or “Get involved” and view the many ways players can contribute time and/or money via PayPal. Or play again hoping for a different outcome.

My Experience with PlaySpent

This site takes you through a month of trying to survive on little or no income – with real life obstacles that pop up along the way (Do you go to grandfather’s funeral? Should you send your child to camp? Should you pay your cell phone bill or your car note?). I played this game several times, and I pretty much failed every time. My faults came from always paying the dentist and taking the computer science class that can get me a higher-paying job. Two things that I have regarded as wise investments in my future- health care and education – have become luxuries that I cannot afford in SPENT.

In fact, the first time I tried to apply for the Administrative Temp position, I failed the typing test! Through out different iterations of the game, I had to choose between getting a root canal or suffering more tooth pain. I had to decide if I take $10 that a family friend had given my imaginary child. I had to decide if I want to attend my grandfather’s funeral or skip it. I had to decide if I want to pay my gas bill or my electric bill. This game is nothing if not sobering.

There are a lot of assumptions about poverty and homelessness. I think SPENT does an excellent job of making the experience easier to understand for a broader segment of the population. For too many people, poverty is not a game.

Because Valentine’s Day is Coming Up

Written by WellHeeled on February 10, 2011 · 3 Comments

And the economy is still struggling and dating isn’t free!

My newest LendingTree blog post deals with age-old dilemma of dating while broke. I think I’ve found 5 dates that are generally reasonable, either for a first date or the 1,000th date. Because even though “sitting home watching TV online with my significant other” might technically constitute as a date (if so, I’ve been on many a dates in my lifetime), you can still kick it up a notch this February. Let me know what you think – are my ideas good?

Check out my new LendingTree Blog article here:

5 Great Dates That Costs Under $50

Huge bill for burst pipes in Northern Ireland schools

Written by WellHeeled on February 9, 2011 · 6 Comments

This is a sponsored guest post by HomeServe.

As the dust settles after the recent cold snap, UK companies, government organizations and residents are counting the cost of the damage. From leaking and burst pipes to broken boilers and heating systems, it seems everyone has been affected in some way by the worst weather to hit UK in years.

Northern Ireland’s educational board has had to shell out almost £1 million to rectify the damage caused by burst pipes in many of the country’s schools. At the height of the cold snap, 700 schools closed their doors to staff and pupils – and almost half of these have suffered damage.

Speaking to UTV, Democratic Unionist Party Lagan Valley MLA Jonathan Craig said that the size of the bill is “shocking”. Mr Craig added that lessons need to be learned from the cold snap – and that pipework in schools and other public buildings need to be protected with insulation and the use of heating systems.

This, of course, is advice that homeowners could also heed as they look to avoid burst pipes and plumbing emergencies in their own home.

However, even the best prepared homes can be caught out when Jack Frost strikes, meaning it’s always a good idea to be prepared for the worst. By keeping your plumbing insurance up to date, you’ll be able to call on the expertise of an expert should you be unlucky enough to suffer a boiler breakdown or burst pipe emergency.

Without this type of coverage in place, you could be left high and dry; needing to find a tradesman to carry out what could well turn out to be a costly repair. No one can predict the future but with plumbing insurance, you can at least prepare for it.

How Do You Budget for Health Care Costs?

Written by WellHeeled on February 8, 2011 · 23 Comments

http://www.flickr.com/photos/katerha/4481575790/

Health care costs can eat up a big chunk of your budget, when you least expect it to. I should know – just ask me how much health care services have cost me so far.

Before this year, I only sought out health services once a year, for my yearly eye/dental/health checkup. This year, however, I am not so lucky. A few months ago, I sprained my ankle, and I am still paying for it (physically and monetarily).

First, I saw an orthropedic specialist ($30 co-pay) and got X-rays (haven’t got the bill yet, but counted toward $500 deductible). I also had some lab work done for my annual checkup ($94), a prescription ($10), and co-pay for doctor’s appointment to get those tests and prescriptions ($30). Now, I am in physical therapy for my ankle, and who knows how much that will cost. Physical therapists are medical professionals, and they don’t come cheap.

Add in my new eyeglasses and eye examination ($160) and dental care, and I am just getting an inkling of the expenses that can incur. I know things can be a lot worse. I don’t even want to think about the staggering sums that should come for a major illness or a trauma.

But as I have learned, medical costs can add up even for someone who is young, generally healthy, and well-insured.

Fortunately, since last year I have been putting $100 a month into a special savings account I dubbed the Health Care Account. This very creatively-named account has since rolled into a neat balance of $1,000 or so, enough to pay for my deductible and co-pays. I am just grateful that I have insurance and resources for me to make decisions based on what’s best for me health-wise, instead of just focusing on finances.

How do you budget and pay for health care costs?

J Crew Lady Day Coat On Sale

Written by WellHeeled on February 7, 2011 · 3 Comments

via J. Crew

Remember this post around the holidays? I was considering buying the J. Crew Double Cloth Lady Day Coat in Dark Plum. At that time, the coat was on sale for $238, $166 after discounts. After tax, it was $185. It’s a lovely coat, but I couldn’t get over the price tag. Then my size was sold out and that was that.

On a whim last night, however, I decided to check out J. Crew’s website. To my surprise, almost all the sizes and colors are back, and as of Sunday all the petite sizes are available.

The Double Cloth Lady Day is now priced at $199.99, $139.99 with the same 30% off and free shipping over $100 (use the code MUSTSHOP). Add in taxes, and I clicked “submit order” for $153.64. The original price was $298.

I passed up the Cole Haan booties I was eying in exchange for this coat. If the sizing doesn’t work out (I think I am between sizes, and sized up because I heard that the Lady Day runs small), then I will have a 2P for sale on this blog.

FYI: If you wear petite sizes, check out this excellent review of the Lady Day coat in 0P by Jean @ Extra Petite.

Seriously, though, it’s time to restrain the shopping. Since the beginning of January I have already spent $250 on clothes, but I am hoping that everything I buy will be 1. of a good value, and 2. will last me for several years. I know that Debt Ninja had some pretty strong words for no-spend challenges, but a no-shopping challenge might just be what I need.

Most of you had quite positive comments on the first post I wrote about the Lady Day Coat, so that pushed my decision along as well.

Enablers!

Yours, Mine, Ours: Money in Marriage

Written by WellHeeled on February 4, 2011 · 3 Comments

Jessica Grose of Slate just published a great 5-part series on How Couples Manage Their Money. Jessica, a newlywed who has been with her husband for 4 years previous to tying the knot, is wondering if, how, and when she and her husband should merge finances.

She interviewed couples from across the country, read up on the historical and sociological sources, and tried to figure out a way that’s right for her personal situation.

Part 1: Our Newlywed Money Dilemma
Part 2: Common Potters (“combine everything”)
Part 3: Sometimes Sharers (“a combination of joint and individual accounts”)
Part 4: Independent Operators (“strict financial separation”)
Part 5: What We Decided

Hopefully I am not spoiling it for anyone when I reveal that Jessica and Mike (her husband) ultimately decided to go the Sometimes Sharer route:

For the month of January, Mike and I have been keeping track of our individual spending. He’s been tallying his expenses on an Excel sheet. I have an account at the personal-finance Web site Mint.com. We’ll have a reckoning about what constitutes a joint expense and come up with a figure that should cover these expenses. Then we’ll each contribute 50 percent of that figure. For now, we will put the remainder of our salaries into our existing individual accounts and keep our savings separate. I’ll publish a follow-up next month with all the nitty-gritty.

There are benefits and deficiencies to each of the three major ways of handling money within a marriage (alas, I haven’t seen a perfect system yet), but maybe I can cobble together the perfect system for us.

Right now CB and I are Independent Operators, which I believe is the right course of action for the vast majority of unmarried couples. I don’t foresee us continuing as Independent Operators after we marry. After we make it legal, this is how I might approach the question of money in marriage: prenuptial agreement before the marriage, a common pot after. This, I think, captures the best of both worlds: protecting yourself and each other in a fair and rational manner for just-in-case, but committing to joint financial goals while you are in the marriage -which hopefully lasts forever, of course.

I like the idea of joint goals for investments and big-ticket items, and I don’t want to be a couple that squabble over who bought the milk last week vs. this week. The biggest benefit of having a common pot, I think, is the retirement factor. Am I really going to feel secure when I’m 60 if I have $3 million stashed but CB’s pot is only $300K (or vice versa)? Doesn’t that mean, for all intents and purposes, that we have a joint retirement kitty of $3.3 million? After all, I want us to jet around the world together, and not have one partner wait at home while the other traverse the Italian Riviera alone.

Just curious, has anyone gone the prenup + common potter approach?

Cole Haan Air Talia Booties: Yay or Nay?

Written by WellHeeled on February 3, 2011 · 1 Comment

I’ve mentioned before that I don’t think I can afford to read style blogs. They tempt me into shopping for things that are great for my closet, but not so great for my wallet.

Well, guess what I saw on Wardrobe Oxygen’s website? This beautiful pair of Cole Haan ankle boots staring in my face. At 40% off, they are $150 at Nordstrom. Still a splurge, but not priced so high that they are out of the realm of possibility.

The Cole Haan Air Talia booties: Yay or Nay?

cole haan air talia booties 300x225 Cole Haan Air Talia Booties: Yay or Nay?

via zappos.com

There’s a New Car Waiting For Me (If I Just Stop Being So Stubborn)

Written by WellHeeled on February 3, 2011 · Leave a Comment

There’s a new car smell in the blogosphere.

A few days ago, my mother raised the topic of a new car. She is worried about the long distance I drive and the mileage I already have on my car. She offered to put a down payment on my current car, and then I can buy a new car and she will take over my old car.

It was a very heart-warming gesture (she’s worried about my safety! Plus, she probably knows how cheap I am determined I am to drive my car to the 300K mile mark or at least until I go to graduate school). I told her I’d think about it (and have thought about it before), but really, I am crossing my fingers that my oldie but goodie Honda will continue traipsing over 60 miles of the concrete jungle a day until it’s time for me to pack up and head for my next destination.

Still, wouldn’t it be fun to hop into a zippy Honda Fit? CB loves the Honda Fits, but since he’s heading to school in a few years as well, it just doesn’t make sense for either of us to buy new cars. (Plus, not having a car payment is great).