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Buying A Home Together Before Marriage – Yay or Nay?

Written by WellHeeled on January 3, 2010 · 41 Comments

Darling, I love you. Will you… buy a home with me?

Two of life’s greatest commitments, many would say, are buying a home and getting married. In the old days, usually couples would commit to each other then commit to a condo or a house, but times have changed.

A recent New York Times article talks about couples who decided to buy a home together before they get married, a decision that is partly driven by a favorable buyer’s market. What might be the right timing for real estate market still means more work for unmarried couples buying real estate together. They need to proactively address issues of equity, capital gains, buy-out provisions, etc., however, in case they separate later.

From the article,

Real estate lawyers say that there are more complications for unmarried property owners who part ways than there are for married property owners who divorce — and a less clear process for resolving them.

“By default, our laws are suited for married couples acquiring assets,” says Luigi Rosabianca, a real estate lawyer in Manhattan.

Deciding when to buy a home together is obviously different for every couple. Ideally, I would purchase a home with someone else only after we are married – the risk of something going wrong and then have to deal with complicated legal and personal issues should my partner and I separate is too great. After all, if I’m not sure I want to marry Mr. XYZ, I sure as wouldn’t want be taking out a several-hundred-thousand-dollar mortgage with him.

If I’m already engaged, however, and we found the perfect home at an unbelievable price and we are financially and emotionally ready to buy – well, then, it’d be mighty tempting, wouldn’t it? I gather that’s the situation that several of the couples in the article faced. But personally, I’d still want to get married first before buying a place together.

“We will eventually get engaged and get married,” Ms. Matthews added. “We’re kind of like, let’s get this apartment now, then let’s make it official.”

Mr. MacLaughlin said: “We were talking about getting married and I said, ‘Wait a minute, if we just put off the ring, we’ll get the apartment first.’ ”

And on that note, I think I’d rather have a bigger down payment than an engagement ring. Not to say a Tiffany solitaire wouldn’t catch my eye, but you can’t build equity with a diamond, even if it does last forever. Or, on a less financially virtuous route, I’d also rather have a bigger / longer honeymoon than an engagement ring. Think of all the traveling you can do for an extra $5,00o.

Would you and your partner legally commit to a house before you legally commit to each other? Or will you only sign the mortgage papers after you sign the marriage certificate?

image source: frontdoor.com

Categories: Articles, Featured, Real estate - Tags: money and relationships

Walt Disney World Dining Plan Review: Worth The Money?

Written by WellHeeled on December 30, 2009 · 8 Comments

This post was Consumeristed! Woo.

I’m back from the Most Magical Place on Earth! It was a wonderful trip, and the food was surprisingly good – I’ve always associated theme parks with run-of-the-mill, overpriced fast food, but I’ve had a couple of really amazing dining experiences (albeit still with the Disney premium) at Disney World. Because food is such an important part of any vacation, let’s talk about a review of the Disney Dining Plan.

For my first trip to the Disney World Resort, boyfriend and I have decided to purchase the Disney Dining Plan (a feature available to guests staying within a Disney World Resort hotel). Would we do it again? As you’ll read on, although overall I was fairly happy with the plan, I have to say…. there are a few caveats.

Mickey Waffle 300x238 Walt Disney World Dining Plan Review: Worth The Money?

Mickey is magically delicious!

Basic Dining Plan Information

We got the Basic Dining Plan (there are also Dining Plans a few tiers up, which offered more options but of course also cost more), which gives 1 Quick Service meal, 1 Table service meal, and 1 Snack per person, per day. The fee was $40 per person, per day. We spent 5 days at Disney World, so our total Dining Plan cost was ~$400. The Disney Dining Plan includes taxes but not tips or alcoholic beverages.

Quick Service = counter-service meal (think fast-food / food cart entree combo types) + 1 drink + 1 dessert. Usually around $10 - $20.
Snack = 1 dessert, drink, or pastry. Usually around $2 – $5.
Table Service = sit-down meal (entree + 1 dessert + 1 drink) or a buffet. Usually around $30 - $45.

Is the Disney Dining Plan Worth The Money?

If you select an expensive table service dinner (above $40), you will usually come out ahead of the Plan than if you had purchased the exact same meals not on the Dining Plan. But you’ll see that the Plan is very heavy on dessert – if boyfriend and I were purchasing our meals with cash, we wouldn’t be getting a dessert with every. single. meal.

That is one of my biggest problems with the Dining Plan – it would be much more convenient if we can choose either an appetizer OR a dessert with the Quick Service or the Table Service meal.

The first day we were there, we had dinner at Les Chefs de France, where we selected a prix fixe menu for $37 (soup + entree + dessert) and a drink (~$3). Total for the two of us including tax came out to around $85+. This means that we made back our $40/person Dining Plan fee that day. The last day at Disney World, we ate at Teppan-Edo, another delicious meal that cost us $80+. The other dinners during our stay ranged from $60-$75. Those days we probaly went $5 or $10 above the $40 / per person Dining Plan fee.

To truly take advantage of the Dining Plan, you MUST make advanced dining reservations (ADRs in Disney parlance). People make these reservations several months ahead of time. I made our reservations about 3 to 4 weeks ahead of time, and had to settle for very early (4pm) or late (9pm) dinners because all the other times were taken already. While at Disney World we’ve encountered many families turned away from sit-down restaurants because all the spots were taken. The chances of you getting a walk-in table is very very slim.

If you don’t have an ADR, you won’t come out ahead for the day in terms of Dining Plan costs because basically you will have forfeited your Table Service meal for a second Quick Service meal.

Was the Disney Dining Plan Enough Food?

YES! One thing you don’t have to worry about while on the Dining Plan is going hungry! We were quite stuffed during our trip - good thing we did a lot of walking, or else I might not have been able to fit in the airplane seats on the way back. If you’re not big eaters, two people can even split a Quick Service meal for lunch and be comfortably full.

In Summary: Disney Dining Plan Worth the Money But with Caveats

The biggest benefit of the Dining Plan is the fact that your meals are prepaid and you don’t have to worry about not going to nice sit-down dinner because of money. The Dining Plan is convenient, and, as a big dessert person, I have to say that I did appreciate the fact that we could get desserts with every dinner (although I would’ve preferred the choice to select appetizers).

If you decide not to get the Disney Dining Plan, but you still want to have nice sit-down dinner at the Parks, you won’t save much money – if any – money. A sit-down dinner will cost at least $30 per person, and a fast food lunch will be close to or over $10.

If you are willing to forgo the sit-down meals (i.e. no Table Service), however, you can probably save a little bit compared to the Dining Plan. Assuming 2 counter service meals (i.e. Quick Service) and 1 snack / water a day at $25-$30, you can save $10-$15 a day, per person, compared to the $40 / per person Disney Dining Plan fee. However, for that marginal amount of savings, I’d rather forgo eating out at home and be able to splurge a little on vacation at Disney World.

image source: disneydreaming.com

Categories: Featured, Spending, Travel - Tags: Disney, reviews, vacation

Old Cars: Unsung Heroes of Personal Finance

Written by WellHeeled on December 21, 2009 · 70 Comments

New Cars are shiny, gleaming, loaded with the latest technology and features. New cars get the big commercials on TV, where they swerve confidently in snow storms, zoom down idyllic country lanes, and maybe even dance a little to the sound of a state-of-the-art in-car sound system near a trendy night club.

Definitely a New Car

old car Old Cars: Unsung Heroes of Personal Finance

Definitely an Old Car

Old Cars get none of that attention. Old cars are relegated to radio spots and newspaper ads. Old Cars have dents and dings, faded seats and cassette players.

But as a proud owner of a (what most people would consider to be) very old car, I have to say, it’s time to show some love to the Old Car. I drive a mid-1990s Honda with – get this – 223,000+ miles on it. And yes, it only has a cassette player.

But despite because of a car’s advanced age and mileage, here are all four reasons why Old Cars are the unsung heroes of personal finance. If you love Old Cars, Old Cars will love you (and your wallet) back:

1. An Old Car is most likely to paid off. Which means… no car payment, which means… more money in your pocket. Of course, repairs can cost higher than a new car’s, but in many cases the math still works out in the Old Car’s favor. Even with periodic repairs to the tune of $1,000-$1,500 a year, my Old Car is still cheaper than a New Car would be.

2. Cheaper insurance. Old Cars are cheaper to insure (and you might not need comprehensive or collision insurance for an old car). Added up over the course of 5 years, you can save hundreds or thousands of dollars on insurance if you drive an Old Car instead of a New Car.

3. Less worry of damages. A bump on an 1997 Toyota Camry adds character (or so I’d like to believe), a scratch on a 2009 BMW 335i is a glaring blemish. I have little scratches on my car that I don’t worry about fixing. I don’t want my car to be scratched, of course, but if it happens it won’t break my heart. If I were driving a brand-new car, however, that would be a different story.

4. At this point, it’s become something of a “let’s see how many miles I can put on this car” game. I had one mechanic tell me he has a Honda that topped 400,000 miles. While I don’t know if my car can get that far, I’m hopeful that my car have a few more years in it.

Do you drive an Old Car? – Tell us if you love it or hate it in the comments. What would you consider an Old Car (how many years / miles)?

Image source: (1) carrentals.co.uk, (2) dragtimes.com

Categories: Car, Featured - Tags: media mention

How To Practice Safe and Responsible Credit Card Use

Written by WellHeeled on October 30, 2009 · 9 Comments

Wait, you mean you never had a credit card education class in school? Okay, me neither. The quality of education these days!

safe credit card use How To Practice Safe and Responsible Credit Card Use

But there’s no reason that high schools or colleges shouldn’t offer a class like this. After all, credit card education isn’t an awkward topic like the other type of ed we had in our adolescent years, so there’s no reason to be bashful on talking about the practice of safe credit card use.

Why you should practice safe credit card use:

Credit cards are a tool that can make your financial life (and by extension, your non-financial life) better or worse, depending on your actions.

If you practice responsible and safe credit card use, you increase your chances of having a healthy and productive relationship with your credit cards, credit report, personal budget, and all instances in which you will have to apply for loans (mortgage, car loan, private education loans, etc.). If you don’t practice safe credit card use, well, then you will catch a nasty case of CTD – credit transmitted disease. Symptoms might include feelings of fatigue (I’m so tired of all these bills), anger (why is the company charging me a 29% APR?!), and in the worst case, bankruptcy, which can do a real number on your credit profile.

How to practice safe and responsible credit card use:

1. Recognize that credit cards are a method of payment (much like cash, checks, electronic transfers, etc.), not a source of funds for payment. You can read more about this philosophy of credit use at my BlogHer post.

2. Pay off your balance in full every month (the safest way!), or at least always be sure to pay the minimum payment. This will help you avoid the hefty late fees and finance charges. However, if you are a good customer and you run into these charges, many credit card companies will waive them for you.

3. Keep track of your spending – it doesn’t have to be down to the dollars and cents, but have an approximate guideline of how much you can put on your credit card. This will also help you from coming too close to your credit limit.

4. Keep your friends close, and your credit cards closer. Make sure you always know exactly where your credit cards are. This way, if a card is lost or stolen, you will notice and can report the fraud quickly.

5. Use virtual account numbers when you shop online, especially at a site that you’re unfamiliar with. Some cards offer virtual account numbers – which are numbers generated specifically for a short period of time (say, a few days). This way, the online merchant does not have access to your real credit card number if a hacker breaks in the system or if there are other security breaches. This feature helps protect you in the Wild Wild West of online credit use.

6. Limit your number of credit cards. Most experts recommend 2-4 credit cards. More credit cards means more cards, more credit limits, more due dates, to keep track of.

7. Don’t share your credit with just anyone. Remember, you worked hard to build and maintain a good credit history. Think long and hard before you become joint account holders / cosigners with someone else. If you become a joint account holder / cosigner, you might become 100% liable for the debt that is accumulated on that account if your partner turns out to be less than sterling credit user. Please do your own research, understand the consequences, and honestly evaluate if that person would be a good credit partner.

8. Last, but not least, enjoy your credit cards! Responsible credit card use can be a beautiful thing. I use my credit card rewards points to get Sephora gift cards. Perhaps you are an avid traveler and can get air miles on your card? Or you own a small business and receive cash back on your business account? The possibilities are out there – safe credit use help you avoid credit-related diseases and enjoy a happy, healthy relationship with your credit cards.

Business Insurance Experts Premierline Direct

Categories: Credit, Featured - Tags: consumer behavior, how to

Job Fairs: How to Prepare So You Stand Out

Written by WellHeeled on September 16, 2009 · 17 Comments

Job fairs can be a great opportunity for applicants to interact with many different companies. But if you don’t prepare adequately, job fairs can be a disaster. Last week, I attended a job fair – prior to the event I debated whether I should go. I had heard the horror stories about long lines that snake twice around the city blocks and the paltry company-to-applicant ratio.

In the end, I’m glad I decided to go. I had a good experience because the job fair had a good ratio of companies to candidates and I had very clear and realistic expectations going in (make contacts with Companies ABC & XYZ), which I fulfilled.

Here’s how to figure out what job fairs are worth a visit and to prepare for job fairs so you stand out among the other applicants.

Before Job Fairs:

1. Determine if this job fair is worth your time and effort. Look at the requirements for attendance – for example, some fairs require a 4-year degree, others don’t. Some fairs are specialized (i.e. teaching professionals or high-tech workers only), others are general. Look at the location (is it 15 minutes away? 3 hours away?).

2. Go over the company list (most job fairs would offer this information online) and pick 2-3 companies that are your top choices.

3. Spend 30-40 minutes researching your top choices, particularly on any programs / specific functions you are interested in. Spend another 10-15 minutes studying a few other companies that you are interested in.

4. Print out copies of your resume. Make sure your contact information is correct! I’d suggest 2 copies for each company you plan to visit. Then add another 5 just in case.

5. Get to the job fair early if you can. It’s an advantage to be among the first group getting in the door.

At Job Fairs:

1. Hit your top 2 or 3 companies first – they might become much busier later in the day (this was my experience).

2. Be attentive, engaging and personable. Be proud of your accomplishments and don’t apologize for being out of work. Ask good questions that let recruiters know you’ve done your research, but don’t act like a know-it-all. Try to get at least 5 minutes of quality time with them, but don’t monopolize their time if there are other applicants waiting. Get a business card and thank the recruiters for their time.

3. Avoid job fair burnout. It’s probably unrealistic to go to each company’s booth – don’t pressure yourself to do so. It’s better to present yourself well to a smaller handful of companies than try to go see every company just for the sake of doing so. I decided that I had 3 places I wanted to go see, and everything else was just gravy.

4. Mingle with other candidates. I met a couple of nice people and exchanged information. Who knows, I might see an opening that they will be interested in, and maybe vice versa. Good karma never hurts.

5. Be nice and professional to everyone, including the hotel staff. One lady angrily exclaimed at the front desk that she won’t be paying for hotel parking because she has been out of work for a year and can’t afford the $10 fee. If a recruiter overhears her, what impression would that lady have created? (The job fair advertisement didn’t mention a parking fee, but a quick call to the hotel would have resolved that question).

After Job Fairs:

1. Follow up with recruiters from your top 2-3 choices and/or with whom you have established a rapport. A short and sweet email will do the trick. Just remind them of where you met (job fair and date), reiterate your interest in the company, and thank them for their time. Attach a resume.

2. Stop at the yellow light, especially if the intersection is in a revenue-hungry city has a Red-Light Camera. Seriously. Or else you will be end up like me and be out $500+. Hence rendering it a very expensive job fair, indeed.

Categories: Featured, Work - Tags: how to, job search

The Price of Addiction To Argentine Tango

Written by WellHeeled on September 11, 2009 · 13 Comments

It’s happened. I fell for the sultry dance, hard. (I even made its own category!)

I leave class with a big smile on my face. I read Argentine tango forums and blogs. I fall asleep thinking of boleos and molinetes. I’m not sure how my wallet feels about the possible financial impact, though.

At $12 to $15 a class, the costs quickly add up. Eventually I’ll need to get proper tango shoes which can exceed $200. My eyes are on Comme il Faut – leave it to me to pick a hobby where even the shoes are gorgeous! Then if I want to practice dancing in a social setting, I should attend practicas (after-class practices) and milongas (dance parties), which can range $10 to $15 in cover charge.

Some hard-core tango students get private lessons (~$80+ per hour) and attend festivals and special workshops all across the country, paying $40-$100 per session with traveling instructors (in addition to the price of airfare, lodging, etc.) If I get really crazy, I can actually travel to Buenos Aires, take classes with maestros and attend milongas.

In an episode of House Hunters International, a Californian couple bought a $200,000 pied-a-terre in Buenos Aires just so they can focus on tango! The lady insisted on an apartment with enough open space that she can turn into a salon for her tango parties. Now that’s dedication.

If I’m not careful, I can easily see myself spending thousands a year on this addiction hobby (4 classes / practicas a week x $15 per class = $60 per week x 40 weeks per year = $2,400 per year) just on classes alone.

But oh, the embrace, the music, the gilding steps. Though I am very budget-conscious (especially right now), there’s something about Argentine tango that makes me want to throw my budget to the wind and just dance to my heart’s content.

Categories: Argentine Tango, Featured, Spending - Tags: Argentine tango for the soul, lessons & hobbies

The Man Gets The Check?

Written by WellHeeled on August 9, 2009 · 26 Comments

When CB and I go out to dinner, we usually split the check. Other times, one of us would pick up the whole tab.

I’ve noticed something interesting – when we ask for the check, sometimes the waiter/waitress would place the check towards CB, clearly in his direction or by his arms (on the flip side, I’ve never received a check that was clearly in my direction – it’d be in the middle of the table).

Is the waiter subconsciously nodding to the traditional man-paying-for-dinner practice? Or maybe CB always sits towards outside of the table.

I’m not offended, just found it curious.

Has anyone experienced something similar?

image source: wikipedia.org commons

Categories: Featured, Spending - Tags: money and relationships

You Only Live Once Fund

Written by WellHeeled on October 20, 2008 · 23 Comments

Most of my cash savings are in the Freedom Fund (held at one financial institution). I do have an online savings account at another firm that I rarely check. For a while I’ve considered consolidating these two accounts, but decided to let them be.

Why?

Because I’m going to make the online savings account my Big Ticket Travel Dreams / You Only Live Once / Do It Before You Kick The Bucket fund. Some of my big-ticket travel dreams are…

cruise the fjords in Tierra del Fuego (the southern-most tip of the world in Argentina/Chile)
luxuriate in the picture-perfect blue-and-white Santorini, Greece
ride the train to Tibet and butter my toast with yak milk
pretend I’m Charles Darwin and explore the Galapagos Islands
snorkel with the fishies in the Great Reef Barrier, and
~~shake hands with Mickey Mouse at Disney World~~ Done December 2009!

And, I’m sure there are many, many more trips that I want take to before I’m gone.

So, I’m keeping this fund out-of-sight – it’s not a fund for a down payment, or graduate school, or even emergencies (although I imagine in a dire emergency I’d have to dip into it). Rather, it’s my Completely Selfish fund, my Pick Up And Go fund, my You Only Live Once fund.

And… I want to fulfill TWO big ticket travel dream by the time I’m 30. I have less than 7 years left, so I better get on it!

What are your big ticket dreams?

Categories: Featured, Life, Saving, Travel - Tags: vacation

What Sex And The City Taught Me About Love, Life, and Money

Written by WellHeeled on March 27, 2008 · 46 Comments

Sex And The City: The Movie is coming out in May! I am so, so excited, and I’m betting that many Sex And The City feel the same way. Carrie, Samantha, Charlotte, and Miranda – you ladies have been missed! (By the way, I love the photo below – head-to-toe black is always NYC chic, but don’t the Sex and the City foursome look gorgeous in color?)

sexandthecity What Sex And The City Taught Me About Love, Life, and Money

It’d be hard to pin down my favorite moments of this show about the four ladies of New York city… but I’ll try! And all those hours of watching Sex And The City in my dorm room with my girlfriends were not a complete waste of time, as I’ve garnered quite a few nuggets of wisdom on love, life, and money from this show.

My favorite Sex And The City moments & lessons:

1. When Carrie realizes that she’s spent $40,000 on shoes but could not secure a loan on her own to buy out her share of the co-op after she breaks up with Aidan.

Personal finance lesson for the gals – don’t become the Old Lady Who Lived in a Shoe. Manolos can’t fund a retirement.

2. When Carrie tells off Big at the top of her stairs right before she leaves for Paris to meet Aleksandr Petrovsky.

Love lesson for the guys – don’t take her for granted and don’t play stupid games! One day a famous Russian artist just might come and sweep her away to Europe.

3. When Charlotte tearfully tells Harry that she loves him at the Jewish get-together. She’s okay with not getting married (and for Charlotte – that’s really love when she’s willing to take marriage off the table, even temporarily) as long as they get back together. And Harry says no. And you see Charlotte’s face fall. And then he gets on one knee…

Love-life-lesson: Trust in God’s plan and have patience. And when it happens, it’ll be amazing no matter what.

4. When Samantha gave up her hair appointment to Miranda and offered to babysit Brady.

Friend lesson: The best present isn’t about money. It’s about time and understanding.

5. When Trey shows up at the last minute to Charlotte’s Home and Garden photo-shoot, even though they were on the verge of separation.

Money-life lesson: Money can’t buy you love (unless you define love to be a Park Avenue classic 6, in which case, money does buy you love!).

What were your favorite Sex And The City moments & lessons?

image source: HBO.com

Categories: Entertainment, Featured, Life - Tags: TV