There are a lot of things in the world I know nothing about. Not knowing about something can be very expensive. Allow me to illustrate…

The brake light came on in our car a couple of weeks ago, and we started looking around at different places we could have them checked. We were a bit confused, because just a month earlier, when the car had been in for a yearly inspection, the tech told us that the brakes “passed with flying colors”. The funny thing is, two months earlier a different tech at the same shop had told us to change them soon, since we only had about 10% left on the pad.

Needless to say, I was perplexed. It just so happens that the brakes on our car are one of the things I knew nothing about.

After calling around and comparing prices, we found out that we were looking at about $150 more than we were expecting. I was hesitantly thinking about taking it to one shop when I decided to call my father-in-law. He’s very handy and knows quite a bit about cars. He offered to take a look at the car when we were up at his house over the weekend.

He pulled off the tires, and was able not only to teach me how to tell if the brakes were wearing out, but how to change and care for them. I also learned about rotating tires and how to tell if the shop really rotated them like they told us they did (and they didn’t!)

This simple trip saved us about $200 this weekend, and will save us much more in the future. I feel comfortable changing the brakes on the car, and I also know quite a bit more about how it works and how to maintain it.

There are some of you who are reading this right now who could probably change the brakes on your car in your sleep. But what happens when your computer needs to be repaired, or your daughter needs braces, or you need to find a yoga class on Monday nights?

Far too often we trust what we’re told by companies and what we see in advertisements and think it’s our only option. Just like I learned to be proactive about my finances, I learned that I can do more than just blindly take the car to the shop down the road and get ripped off. It’s a simple and obvious lesson, but one that I think more people could learn from.

We each have a built-in network of advisors – family, friends, co-workers – who are experts in areas we are not. Their insights and advice can not only help us learn, but save money as well. Learning to turn to these people is something that isn’t always natural, but can be very beneficial. These people are often more than willing to share their advice and knowledge, and will do so because they want to help you.

What are some of the ways you use the people around you to learn and save money?

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Learning and Saving

The recession has forced almost everyone to make a change in one way or another. For one Atlanta couple, their wedding has turned into more than they had anticipated.

Vanessa Caldwell and Cole Parker are getting married  on Nov. 11, and needed a way to cover their expenses. They decided to turn to their friends and family for help.

Caldwell started a website, www.dollarforawedding.com, soliciting donations to help pay for the event. The couple’s wedding announcement even has a Paypal link to allow guests to donate directly. So far, the couple has received enough donations to cover $750 of their $2,000 budget.

The couple also has deals with the florist and the photographer, allowing them to advertise at the wedding, in exchange for no charge for the pictures and flowers.

The idea was born out of necessity. As business owners, the couple puts every spare penny they have into growing their small business, leaving them without much in the way of spending money. The recession forced them to cut back, and they needed help paying for everything.

Some who visit the couple’s website or are aware of their plan aren’t sure how to react. Some view the request for donations as an ‘admission’ price charged to guests, or as just plain tacky. Others see no problem with lending a helping hand.

Part of me sees this as an interesting idea, but I would feel obligated to pay if I was planning on attending. I wouldn’t want to show up and eat the food and listen to the music if they’d asked for help and I hadn’t paid. I understand wanting to give some ‘direction’ to those who might give you a gift, but isn’t that what a wedding registry is for?

Is asking guests for financial help a one-time thing, or will we see more of this in the future? How would you feel if a friend or family asked for a donation instead of a gift?

Source: PayPal Wedding Invite Irks Some Guests

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Wedding Donations, Smart or Tacky?

If you planted your garden in mid-to late April like we did, you’ve already started to see the beginnings of your harvest. Our green onions have been out of control for a little while now, and our radishes are starting to get nice and big as well. We’re just now getting great peas and beans, and out tomatoes are right around the corner. It looks like it’s going to be a good year for the garden (if we can keep the birds away).

One of the best things about having your own garden is that you can walk right out into your backyard and pick some fresh produce and eat it right there, on the spot. No running to the grocery store or the farmer’s market to stand in line, no $4 for a pound of strawberries, and no pesticides or other “unknowns” to wash off.

It’s never too early to start thinking about how you’re going to handle the extra harvest from your garden. Taking a little time to prepare can help ensure that your hard work and tasty vegetables don’t go to waste. We’re going to have way more food than we can handle all at once, and so we’ve been looking into different ways to preserve our ‘leftover’ vegetables.

Getting a basic idea of what you are going to need equipment-wise can help you prepare. Based on materials you might already have the cost will be unique for each individual situation, but I’ve estimated the following costs out on the assumption that you’re starting from scratch (like we are).

Freezing

We are definitely going to try this method. It’s one of the easiest ways to store vegetables, and if you blanch (’flash boil’) the vegetables before you freeze them they will retain their nutrients much better and keep much longer. We’ll be able to freeze some of just about everything, expect our spinach.

Cost: Super Cheap
Needs: A box of Freezer Ziplock Bags (wish we had some extra freezer space, but the freezer above our fridge will have to do.)

Pickling

I’d like to try this one out, but I don’t know if our cucumber plants are going to survive the constant attacks from the birds. We don’t have any beets, and I’m not sure if you can pickle tomatoes or peppers. Pickling looks to be a bit more difficult to master than other methods – the process itself is easy but apparently takes ‘just the right touch’ to be successful.

Cost: Moderate
Needs: Canning salt, pressure/water bath canner, vinegar, jars, lids, rings, spices, brine

Jams/Jellies

Most people think of fruits when you mention preserves, but vegetables are catching on as well. I recently had a great jalapeno jelly that greatly complimented my bagel with cheese. We didn’t end up growing strawberries, so we’ll probably skip the ‘preserving’ this year

You can do freezer jam as well, which is very common. It’s quicker, cheaper, yummier, and doesn’t have as many preservatives.

Cost: Moderate (cheap after you have a canner)
Needs: Water Bath canner or pressure canner, pectin, jars, lids, rings, freezer containers (if you decide to do freezer jam)

Canning

There are two canning methods: pressure canning and water bath canning. I still have memories of our entire kitchen table being covered with jars full of tomatoes and peaches that we enjoyed all winter long. We’ve got seven tomato plants and a lot of carrots, peas and beans that will be canned if they aren’t frozen.

If you are persistent you can pick up canning jars at Salvation Army, Savers or Goodwill-type places.

Cost: Moderate (need lots of cans, lids and rings and a canner)
Needs: cans, lids, rings, pressure or water bath canner

Drying

A food dehydrator is a necessity here, and since we don’t have one we will not be drying this year.

Cost: High
Needs: Food Dehydrator, storage bags or containers

Juices

If you’re a fan of V8 you can use a juicer or a blender to create your own tasty beverages. Tomatoes, peppers, carrots and radishes would all add up to be a tasty treat. Adding a bit of lemon juice can help equalize the tastes. SD Gal is a big fan of tomatoes and I’m sure some of this juice will find its way into our fridge. This could be frozen as well.

You can also do fruit juices. My mother used to make an excellent grape juice by putting the grapes straight into the jar. I don’t remember exactly what else she did, but boy was it good!

Cost: Moderate
Needs: cans, lids, rings, pressure or water bath canner

Storing

Some foods (like potatoes and radishes) can be easily stored in a cool, dry area.

Cost: Free (unless you buy boxes or bags)
Needs: Boxes or bags

You don’t have to have a green thumb to cash in on the benefits of canning, preserving and storing food. If you are unable to have your own garden, another option is to build a stockpile of produce from local growers. Stop by local orchards and farms, farmer’s markets, and roadside fruit /vegetable stands and inquire about special deals at each. Take your spoils home, preserve the in whichever method you prefer, and enjoy nutritious produce all winter long!

For a very full rundown on the exact specifics of each of these preservation methods, check out PickYourOwn.org.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Preserving the Harvest

If there is a college graduate in your life, he or she is about to receive a number of gifts. The first gift will be the realization that it can be difficult to find a job in this economy right now if the goal is to get a job in the same field of study as the degree. Without a job, our graduate might have little choice but to move back in with mom and/or dad and weather through the recession with curfews as if life were to replay high school.

The next gift will be the shock of the real world in the form of a job. Suddenly the graduate will have to report to work, perhaps at 8:00 am. It might have been easy to blow off early morning classes, but consequences in college were limited compared to the thread of being fired in the first month on the job.

Soon after that, perhaps six months after graduation, the first student loan payment will be due, shackling the graduate into earning enough money to pay off college debt in ten or more years.

If there is a college graduate in your life this year, consider these graduation gift suggestions.

1. Free room and board. There is a time and place for the “sink or swim” mentality, which comes from the idea that throwing a baby into a pool will force it to instantly learn to swim in order to survive. I’ve never known anyone to take this literal approach, but in the current state of the economy you could do your graduate a favor by allowing her to start her career without having to worry about the first several rent checks.

Rent-free living should not last forever.

2. Clothing. Every job has expected attire, even if the environment is very casual. Professionals need professional clothing, whether for interviews or in the office. The graduate is going to need to project an image in the workplace, and clothing is important to making that happen. A gift certificate would work well for clothing, allowing the graduate to choose her attire, but some guidance may be necessary because not every graduate has experience in dressing appropriately for professional situations.

3. A computer. Powerful and reliable notebook computers are relatively inexpensive now. Remember to pre-load important software for someone who will be starting their first post-college job: financial management software. I use Quicken 2009, which is available on sale here, and I still prefer the robustness and flexibility of desktop software like Quicken over web-based financial management like Mint and Quicken Online

4. A gas gift card or monthly commuter pass. Transportation is one of the many expenses new workers have to pay up front before receiving their first pay check. If your graduate has a job lined up and a place to live, she should have determined her transportation needs.

5. A car. If you have the means, a used car would make a good gift for the graduate as well. It doesn’t have to be the latest model, but employers expect employees to have reliable transportation; a clunker that breaks down once a week and causes the new employee to be late arriving to the office will not make a good impression and will not do any favors for career advancement.

6. Cash. Money is helpful when wielded for the forces of good. If you trust the graduate to use the money responsibly, to pay down debt for example, cash can be a good way to go. But don’t give cash if you will be offended if the recipient chooses to use the money for vacation or entertainment. If you cannot give cash with no strings attached, don’t give cash — try a gift card.

7. The gift of mistakes. The last thing a graduate wants is to be told what choices to make. Some guidance is helpful, particularly in choosing the first job out of college, as many graduates do not know the effect this choice can have on earning potential for the rest of the graduate’s life. But let them make mistakes, and when they do, help them interpret them as learning opportunities.

If you are a parent of a graduate this year, what gifts, if any, will you be bestowing upon your graduates?

Students and former students, what gifts have you received or would you have liked to receive?

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Seven Great Gifts for College Graduates

My goal was never to have all the money I could get my hands on.

On the other hand, I’ve never solidified my financial goals. Up to now, it’s mostly been about what I don’t want, rather than what I do:

• I don’t want more rooms in my house than I can use
• I don’t want to have to hire a security firm
• I don’t want to go to fundraising dinners for politicians
• I don’t want people around me who only like me for the luxury I share with them
• I never want to do any “shmoozing”

It’s things like that which I’ve long associated with wealthy people. Maybe these are stereotypes that only happen in fiction, I couldn’t say. More realistically, I’ve only had one (not)goal for many years: I don’t want to be in danger of being homeless. That’s not a productive goal. I think it’s time I change my thinking.

Flexo has written about different types of goal-setting in the past, which helped me start germinating ideas subconsciously over the past few months. Here’s what I’ve got so far for my long-term goals:

• I want moderate luxury: a perfect example of this is our living room TV. I bought a used HD projector ($900) and a cheap 92” screen for $75. I hung the screen myself for less than $10, and we’ve had an enormous gorgeous high-def TV for years. I don’t need a separate media room or surround sound. What we’ve got is great.
• I want to eat breakfast outside: I want enough time in the morning to be able to make myself some eggs and bacon, coffee or tea, and take it to the backyard to enjoy. Usually this is only possible on vacation. I think in order to do this every day, I’d need to work from home.
• I want my evenings and weekends to myself: I know too many people who think about, and perform, work during non-work hours. I’ve always felt this is indicative of a management flaw. The people at my current business tell me I work faster than anybody else, so that may also have something to do with it.
• I want lots of open space: I’ve always lived in metropolitan areas, so I probably don’t have it in me to switch instantly to farming, but I like to think that by the time work slows down for us, we’ll at least have a kind of subsistence farm situation.

For many months, excluding one huge setback last fall, my only goal has been “get rid of the credit card debt”. I’m still going to do this, but a recent salary cut decided for me that my plan of paying off $1,000 a month won’t work anymore. After adjusting our budget, instead of $532 leftover per pay period, I have about $228. So, new plan: save the leftover salary money. It’ll either grow in a bank account, or go toward home improvements (including my wife’s increasingly impressive garden), or upcoming vacations. You know, things that improve the quality of life. Things that I’ve been ignoring for far too long.

And I’ll take half of whatever I earn from my freelance work to gradually pay down the pesky credit card. It’ll go a lot more slowly, but hopefully that will encourage me to do more, better work in my spare time. That will hopefully lead to a situation where I can work from home, in a place with lots of open space, and a backyard I can eat breakfast in.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Smithee’s New Long-Term Goals

The author of Free Money Finance pointed out a story highlighting how the recession is affecting the health of pets. He or she also linked to a helpful chart of estimated costs for owning various kinds of pets.

Personally, my wife and I don’t even include pet care in our budget, because our affection for them goes beyond monetary concerns. I understand and sympathize with people who feel like they have to cut back their spending in multiple areas, and their pets’ overall health might have to be one of them. And I don’t imagine that this is an easy decision for anyone, but I would beg them to reconsider.

I should point out that the following doesn’t constitute what’s normally considered “financial advice.” These are just the thoughts I had when considering what to do in a worst-case scenario when my pet has a serious illness, and I don’t have the funds for it.

These are living beings, worthy of your care. And because you decided to take them in, they are dependent on you. If a pet gets ill, chances are it won’t get better by itself. Instead of “wait and see”, there are other options. In no particular order:

1). Use a Credit Card

My primary financial goal is to get rid of the credit card debt that I started in 1997 (this should drop to about $3,000 by the end of the week), but if it came down to a) sick pets or b) increased credit card debt, I would always pick B without hesitation. Your financial situation, though currently ebbing, will likely begin to flow again in the future. It’s not a fun choice, but some things are more important than interest payments.

2). Borrow Money from Friends or Family

You may be just barely getting by, assuming you’ve decided to let your pets’ health take care of itself, and you may want to avoid asking for help. But there’s a good chance that a friend or family member may be a real softie when it comes to pets, and will help you pay those bills, even if helping you pay other bills might’ve been something they’d avoid.

3). Plan Ahead with Pet Insurance

Lots of companies offer health insurance for your pets, and while I can’t currently recommend one in particular, it’s worth checking out.

4). Payday Loans

Payday loans are evil, period. But I think they’re slightly less evil than allowing your pet’s health to decline. If your pet is having an emergency health issue, I think this option is still on the table.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

My Pets’ Worth

About the author: Margaret is a recent college grad who writes at love God, not money about how she and her boyfriend are saving up money to get married, pay off student loan debt and head to seminary.

Money is one of those things you’re not supposed to mention in polite conversation. But if you’re married or in a serious relationship, you have to talk about it.

My boyfriend is the spender; I’m the saver. He’s never had any guidance on how to manage money; my dad had me putting money in a savings account while I was still in the cradle. Coming from such different angles meant that starting the conversation about money wasn’t easy.

But it doesn’t have to be something you dread if you follow a few simple principles. Most importantly, pay attention to how your significant other views money, because that will help you learn how to best communicate what you’re thinking and feeling.

Tip 1: Start out slowly.

It would have done little to no good if I had immediately emphasized IRAs and CDs and how much money he can make in twenty years if he starts saving now. I started simply and slowly, not because he’s dumb, but because changing your views on money eventually transforms your entire life, and that kind of thing doesn’t happen overnight. I began the conversation by suggesting that he get on a budget. He was very positive toward this, so we sat down together and wrote up a plan. I also helped him set up an online high-interest savings account so that he could start building an emergency fund.

That said, it wasn’t all flowers and butterflies at the beginning. I helped him come up with a budget and gave him tools to track it, only to find out several months later that he hadn’t been tracking his spending at all, and often he had no idea how much money he had left in his checking account. At this point, I had to go back to square one. We revisited the budget and talked about why he hadn’t been able to keep track of his spending. I offered to keep track for him, if he would just give me his receipts.

It turned out that he really wanted to keep to the budget, but he got tired of keeping his receipts. I suggested he use his debit card for all his purchases so that he wouldn’t have to keep his receipts. That didn’t solve the problem completely — he still has trouble sticking to his budget sometimes — but by talking about it and being creative with solutions, we made the transition just a little bit easier.

One of the things I learned as a psychology minor is that it is more effective for you to come to a realization on your own rather than having someone try to persuade you. If your partner has outrageous spending habits, saying, “You should stop buying so many clothes” will not be welcomed. Choose instead to say, “Have you ever thought about keeping a budget? I’ve found it really helps me stay in control of my money.”

Even if they don’t stick to the budget the first few months, just tracking their spending will open their eyes to where their money is going. And that may lead them to address on their own their tendency to buy more clothes than they can afford.

Tip 2: Be patient and realistic in your expectations.

If you’re anything like me, it took you more than a few days to come to your current understanding of how to make wise decisions with money. Don’t expect your significant other to come to that point any more quickly. In fact, don’t expect them to ever feel exactly the same way you do about money. I’ve accepted the fact that my boyfriend will never, ever enjoy tracking every penny he spends, but that he can learn how the choices he makes today with money will impact his future. And so I focus on sharing personal stories I’ve read on blogs about how other people manage their money. This has actually made him more interested in personal finance, such that we listen to a podcast on personal finance together every week!

Tip 3: Don’t talk about money all the time.

If your finances are in trouble, then the last thing you need is for your talking about it to make it seem like money is the third member of your relationship. When my boyfriend told me that it sounded like I was getting a little obsessed with money, I knew it was time to step back. Now we pick a night each month to go out to eat and talk about his budget. Because I’m doing my best to avoid talking about money when we’re just hanging out, he actually looks forward talking about his budget once a month.

Tip 4: Only talk about money when you’re calm and composed.

If you just found out that your girlfriend maxed out her credit card, don’t start dialing her number. Wait. Money is a stressful enough topic on its own; add your own anxiety to the mix, and you won’t get very far. Of course, it’s most effective to talk about money before the stressful situations occur, but if you’re already in the thick of it, make sure you’re able to discuss any problems without being defensive or making broad generalizations. It’s amazing how quickly you can diffuse money-related tension by maintaining a calm presence of mind.

Tip 5: Stay in control of your own finances.

You are the best model for your significant other. If you’re telling him to save, save, save, but you consistently spend hundreds of dollars on clothes, then it will be hard for him to take you seriously. Even if you’re married and have joint finances, you can still manage your money in way that will keep you from being a hypocrite and also provide a very personal example of wise habits for your spouse.

Tip 6: See money as a means to an end.

You may be perfectly happy never going out to eat or buying new clothes, but that might not be the case for your significant other. Instead of letting it come between you, use money as a way to bring you closer together. Set a savings goal for a fun trip. When I helped my boyfriend make his budget, I made sure there was at least a small amount of what he calls his “fun money,” which he can spend anyway he wants. We also really enjoy cooking meals together, so we make sure we have a little extra money in the food budget for more exotic ingredients.

Tip 7: Choose your battles.

My boyfriend was fairly receptive to my suggestions, but you might be faced with a partner who isn’t so keen on making any changes with their finances. A few days ago, my boyfriend had about $40 left for food and eating out in his budget. He needed to buy groceries for the next week and have some money for food when traveling for Thanksgiving. I told him I wasn’t sure if he should go out to eat for lunch at work one day, but he went anyway and spent about $9. I was so tempted to get angry, but instead, I let it go. It wasn’t worth $9 for me to nag him and him to feel like I was completely oppressing him financially. That way, when a situation comes up where his choice about money really is important, he’ll know that I’m not just a Scrooge trying to take away all of his fun.

Tip 8: If all else fails, bring in a third party.

You can’t wait until your husband has hit rock bottom to address your finances. If your significant other feels like you’re nagging or doesn’t think that any of your ideas are appropriate or helpful, then bring another person into the equation who can speak into the situation. My boyfriend started talking to an older friend of his about money, and his talks with that man have done much more than many of my attempts. Seek out someone who your partner respects and ask them if they’d be willing to sit down and talk with you.

And encouragement is just around the corner. Just last week, my boyfriend was faced with car trouble. In the past, his parents had to loan him money to help him fix things like that. The cost for the repairs was almost $800, but he had been faithfully putting money in an emergency fund, and he had just enough money to pay for the expenses. He was so excited to tell his parents he wouldn’t need to use their money, and for the first time, I saw him taking pride in his control over his finances. All the pestering and obsessing I could have done would never have made him feel that way.

Above all, realize that change takes time. Celebrate staying within the budget, paying off credit card debt and finding more frugal ways to do things. Money has the power both to build up and to tear down, but by talking about money together in a positive way, you and your partner can stay in control of your relationship instead of letting money control you.

Photo credits: reebs*, crschmidt, gustavobando, Sabrina Campagna

If you enjoyed this article, please visit love God, not money and subscribe to the RSS feed. We would appreciate your comments and reactions, so if you would like to contribute to the discussion, leave a comment below.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

8 Tips for Talking About Money With Your Significant Other

If you’re a member of an investment club and are in a typical family unit, ABC wants you to apply to be on the reality series, “Wife Swap.” If you’re selected, your family will receive a “financial honorarium” for appearing on the show, and if you know of someone else who would be a good choice for the show, ABC will pay a $1,000 referral fee to you if they are selected.

Here are some of the details.

Are you a mom passionate about your investments? Are you an active member of an investment club? Trying to keep it together in today’s hard economy? Then I want to talk to you!

The premise of Wife Swap is that one parent from each household swaps places for a week to experience how another family lives. It is an incredible family experience and opportunity to both learn and teach different family values. Potential families can live anywhere in the continental United States, but we ask that families applying for the show consist of two parents and have at least one child, age 7 -17, living at home.

To submit for the show please email a family photo and description to gaby.wifeswap (at) gmail (dot) com. Here is more general information about “Wife Swap.”

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

“Wife Swap” Looking for Investment Club Members

Money Magazine released the results of the publication’s survey of the towns with the highest median household income. New Canaan, Connecticut tops the list with a median income of $231,138.

Considering a move to help your income go farther? Don’t choose one of these locales. Considering a move to be closer to culture, leisure, and advanced education without living in a city? These towns might be for you. Here are the top ten.

1. New Canaan, CT, $231,138. “New York City’s elite once chose New Canaan as a vacation town, but they liked it so much, they decided to stay there year-round and turn it into one of the nation’s wealthiest residential communities.”

2. Darien, CT, $218,130. “Darien was once a vacation community for New York City’s upper crust who decided to lay down year-round roots.”

3. Lake Forest, IL, $212,122. “With a town plan heavily influenced by English gardens, Lake Forest is home to mansions and vast estates seated on the bluffs overlooking Lake Michigan.”

4. Saratoga, CA, $196,420. “The [Paul Masson] Winery is still there, but so are the best and brightest of Silicon Valley, whose fortunes have spilled over into this upscale bedroom community.”

5. Westport, CT, $193,540. “Once an artist’s colony, Westport is now better known as an affluent bedroom community on Long Island Sound that’s held on to its cultural roots.”

6. Los Altos, CA, $189,839. “The village, in San Francisco’s Bay Area, has become a haven for techland’s top earners. Still, the birthplace of Hewlett-Packard prides itself on maintaining a semi-rural feel.”

7. Potomac, MD, $183,258. “[M]uch of Potomac has been turned over to the Washington, D.C., area’s wealthiest residents… If you are of an equestrian bent, the area still offers a number of riding schools, breeders and stables.”

8. McLean, VA, $180,103. “If you want your neighbors to be rich AND powerful, move to McLean. Vice President Dick Cheney is said to be building a home there for when he leaves the West Wing… [B]e careful who’s listening: The CIA is headquartered in the town’s Langley area.”

9. Wellesley, MA, $172,900. “The Boston suburb is home to the school of the same name, which is consistently rated as one of the nation’s top liberal arts colleges. Notable alumni include Senator Hillary Clinton…”

10. University Park, TX, $170,150. “University Park started as a group of houses surrounding Southern Methodist University almost 100 years ago. Since then it’s been swallowed up by Dallas’ urban sprawl, but the area still likes to maintain its identity.”

Other towns in the top 25 include Bethesda, MD, Greenwich, CT, Ridgewood, NJ, Los Gatos, CA, Deerfield, IL, and Garden City, NY.

25 top-earning towns, Money Magazine, June 14, 2008

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Earn the Most in New Canaan, Connecticut

I came across this today:

Whatever the reason, experts say that at our core, there’s one reason we find wealthy men attractive: instinct. Women, research shows, rank the ability to provide as the most important quality when selecting a mate. Men, not surprisingly, prize a woman’s looks and youthfulness over her other qualities, because those are indicators of fecundity. It’s all about finding the best person to breed with.

As it turns out, we’re all just slaves to our prehistoric urges, even in an era when none of those millenniums-old rules would seem to apply…

A 2006 study done through the University of Chicago shows that men who post online profiles indicating income of $250,000 a year generate significantly more contacts (up to 151% more) than those who make under $50,000…

The article continues to say that the relationships formed between wealthy men and younger, beautiful women start off great but aren’t made for long-term relationships. So here are a few questions. Do you believe money is a turn-on? Can long-term relationships be formed with a disparity in wealth?

Is Money an Aphrodisiac?, Kris Frieswick, MSN Money, July 4, 2008

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Your Opinion: Do Women Find Wealthy Men Attractive?

Throughout the summer, as they have been doing for the past 43 years, the greatest orchestra in the world is offering free concerts to the public. Last night, I saw the first of the “Concerts in the Parks” series in Central Park, Manhattan, New York City, presented by the New York Philharmonic. The weather was perfect for an outdoor concert.

The “Concerts in the Parks” series consists of eight dates throughout the summer, in venues across New York City and New Jersey, in which the New York Philharmonic presents at least two different programs. Last night, the program included Shostakovich’s Festive Overture, Tchaikovsky’s 1812 Overture, three Sousa marches, and a surprise encore of Jimi Hendrix’s Purple Haze. The concert was followed by a fireworks presentation.

If you’re looking for something free to do this summer — my only expenses were the $13 round trip New Jersey Transit train ticket to Manhattan from my office, $4 for the subway, and $10 for food and drink — consider taking a few friends or your family and attending one of these concerts. Bring a blanket to sit on and have a picnic before the concert begins, socialize with your friends and meet new people, enjoy the amazing music, and stay for the fireworks (at some of the venues).

By the way, if you have young children who are not quite ready to sit still for hours, this is a great way to expose them to excellent live music outside of the concert hall.

Here is the Philharmonic’s schedule for remaining free concerts this summer:

July 8: Richmond County Bank Ballpark, Staten Island
July 9: PNC Bank Arts Center, Holmdel, New Jersey (I will be here)
July 10: Cunningham Park, Queens
July 11: Van Cortlandt Park, Bronx
July 12: Heckscher State Park, East Islip, Long Island
July 14: Prospect Park, Brooklyn
July 15: Central Park, Manhattan

If you make it to the free concert on July 9, look for me. As I usually do for the New Jersey summer concert each year, I’ll be volunteering/working for the Philharmonic before the concert begins.

New York Philharmonic Concerts in the Parks

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

New York Philharmonic’s Free Concerts in the Parks

According to a 2004 survey, 21 percent of people born in 1964 or later expect to inherit money from family some time in the future. Many expecting recipients may be in for a surprise, however. A recent article by Ron Lieber at the New York Times identifies eight reasons why inheritances, perhaps not those in rich families but in well-off middle class families, may be diminishing over the next generation or two.

1. People who make it to 65 will live a lot longer. More time alive requires more expenses, and in many cases this is significant. The cost of care for elderly seems to grow exponentially with increasing age.

Try to guess how long your relatives will live using this life expectancy calculator.

2. Social Security and Medicare will probably change. It’s a safe bet that the goverment will be cutting back on the services offered by these programs as more people require the services and fewer people are paying the associated taxes. Therefore, more expenses will need to be covered by your relatives’ nest eggs, otherwise known as your potential inheritance.

3. Fewer people have pensions, so they’re more wedded to the markets. With a nest egg invested in the market for long term growth, the funds are subject to the swings of the stock market. A down market at the wrong time could reduce your inheritance by ten percent. Say goodbye to your summer home.

Also, a down market during any time during your relatives’ retirement means that more of their principal will go towards paying their own expenses.

4. Out-of-pocket health care costs for retirees may soon hit seven figures a couple. A 55-year-old couple with above average medical costs can be expected to need more than $1,000,000 in capital just to finance health case costs for the rest of their lives.

5. Divorced individuals may pass on less money. Leaving an inheritance to children is often a joint endeavor. Without a connection between husband and wife, one might not be willing to pass wealth onto kids seen as the other’s.

The divorce rate in the United States has been declining recently, but the rate of co-habitation (opposed to marriage) is increasing. The supposed colatile nature of co-habitation may have the same financial impact to heirs as divorce does.

6. It’s getting easier to drain a home’s equity. The reverse mortgage is an increasingly popular way to turn one of your largest assets in retirement into an income stream. A cash-strapped retirees can find himself selling his house back to a bank, and when the house is sold, the proceeds go to the bank rather than to the family.

7. Life insurance may not offer much help. Many people have the opportunity to sell life insurance policies to investors. When someone does so, the benefits normally received by the insured become the property of the investor, leaving less to pass to the next generation.

8. The transfer of wealth will increasingly happen while the older generations are still alive. Rom points out that grandparents are increasingly helping grandchildren with education expenses, as the cost of a college degree continues to skyrocket. Whether these types of transfers are intended to reduce estate tax liability or simply help their relatives in the best means possible, it reduces the size of the estate that would theoretically be available for inheritance.

All of the above trends considered, I think it’s safer for most of us to assume there is no inheritance on the way. With this in mind, without the thought of being bailed out in the future, it can force some of us to be more mindful about spending today.

8 Reasons You Should Not Expect an Inheritance, Ron Lieber, New York Times, June 21, 2008.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Are You Expecting an Inheritance?

I’ve never been squeamish talking about finances with friends and acquaintances (partly, I suspect, because of my lack of an internal dialog filter), but I have learned over time that not everybody else is as comfortable as I am, so I try not to use too many specifics when having financial discussions.

However, I think personal finance is one area where your friends can provide a lot of insight and assistance, in essence, be particularly friendly. An interesting thing happened on a Web forum where I hang out. The active population is in roughly the same age range, but we have varying demographic backgrounds. A thread came up about discussing your income and after a few issue-skirting posts to the thread, someone actually came out and described their financial situation in a nutshell, numbers intact. Then the floodgates opened and everybody else added their own.

This is by no means scientific, but I gleaned a few data points from the discussion:

• It’s possible to earn more than me and still be unhappy with your income
• Alternately, it’s possible to earn significantly less, and still be in better financial shape than I am
• Ambition and perception can lead to a higher salary, regardless of what I might think a person’s job is “worth”
• Compared to the vast majority of residents of Earth, we are filthy stinking rich
• A lot of us have no retirement plan, since we spent most of our 20s simply keeping ourselves housed and fed
• People with college degrees get paid more, even if the degree isn’t applicable to the job in question
• To earn what I am earning, I should probably be working a lot harder
• Salary isn’t everything

Have you had similar conversations with friends of yours? What did you learn?

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

What We Learned by Being Open with Our Friends

How soon into a relationship should you disclose your financial condition, if at all? A wealthy woman wrote a letter to the editor of Money Magazine recently to explain that she does not want to let her new boyfriend, a relationship with the potential to get serious, that she has money. She is wondering whether it’s ethical to keep this information from her boyfriend or whether there’s a point at which she should let him know of her wealth.

The magazine’s editors did a good job of answering the question, and I agree with their conclusions. If a relationship becomes serious and marriage is a possibility, there should be no secrets. This particular woman was hurt by a former boyfriend who “used her for her money” once he discovered that it was possible to do so. That should be an immediate signal that this was not the right guy for her, but it should not scare anyone away from being truthful about money in general. You do have to make a judgment call to determine the right time for approaching the subject. It’s probably not appropriate if you’re on the first few dates, but if you’re starting to pick out rings or talk about living together, I don’t see how these decisions can be made without full financial disclosure.

Commenters who left their opinions below the Money Magazine article are divided. Some have very strong opinions in favor of not telling the boyfriend until the last possible minute. Some think they should discuss money as soon as they decide that the relationship is “serious.” But what is “serious?”

My questions are more specific: Should financial disclosure happen only after a couple decides to get married? Would this prevent money and the attitudes about wealth from affecting relationship decisions, or would it create the possibility for unhealthy surprises later? Should financial information, particularly if that information sets you apart from the average joe or jane, remain protected for as long as possible?

My girlfriend, A., reads Consumerism Commentary, so she can find details about almost every penny I earn and spend. I do have a special account set aside which I call “The A. Fund,” included in my savings totals. In order to allow the occasional surprise, I don’t provide her with details about that money. However, if she looks at my monthly reports, she could get a good idea of what I can and cannot afford in general. Not all relationships include someone who posts their finances in public, though.

What would you do or what do you do? Feel free to post a comment anonymously if you’re worried your significant other may read.

Image source: prozacblues
[Money Magazine: I don’t want to tell my boyfriend I’m loaded]

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Would You Tell Your Boyfriend You’re Rich?

We’ve talked about tax deductions related to your reception site, but there are a few other nice opportunities for wedding-related deductions that shouldn’t be missed, both for during and after your wedding.

The I Do Foundation has a number of creative ways to incorporate giving into the wedding itself, which you can do through them or replicate yourself. I will be doing a number of these for my own wedding next year.

• Give on guests’ behalf. Give to your favorite charity on behalf of each guest, then provide a favor related to that gift, whether a printed card or something more specific. Then, deduct the full amount as a charitable donation. We’re thinking of donating to our favorite avian charity, then attaching announcements printed on plantable hearts filled with seeds (we plan to make these ourselves) to these cute dove bottle openers. (We’re trying to find a source for the doves without the packaging, however.) The favors themselves, of course, are not deductible, but they make a nice presentation. The Knot has some more stories of fun ways couples incorporated tax-deductible giving into their weddings.
• Build a registry of charities. Create a registry of the charities you wish to support, then let guests make their own selections when giving. JustGive and Changing the Present are two more great charitable gift registry sites which makes it easy to set up a registry of the organizations you want to support. You can add explanations for why these are meaningful to you as a couple and how they support your shared beliefs. Then all of your guests get to claim a deduction and they’ll have you to thank when filing their 1040s.

And this one’s not a deduction, but I’m listing it anyway because it’s a good idea: have your gift registry give back. You can create a gift registry with one of the I Do Foundation’s partner stores and have up to 10% of the purchases given to a charity of your choice.

Next time, I’ll share some donations you can write off after the wedding festivities.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Tax-Deductible Weddings, Part 2

We’re entering the peak wedding season, it seems.

Ever since I got engaged earlier this year, I’ve been bombarded by sales pitches from every angle. They’re certainly tricky. They come disguised in several colors of tulle, bearing elegantly inscribed messages to remind me that I only live once and want my special day to be perfect.

Perfect, of course, translates to premium, as in every upgrade on the already mile-high price list. If you’re a frugal sort, it’s almost enough to make you fall out of love with the idea completely.

For my fiance and myself, our special day will only be perfect if we can have all our family and friends join us without incurring additional debt. The perfect wedding should be the start of our perfect life together, where we can actually afford our bills and monthly expenses. So I’ve been searching relentlessly for information to plan an affordable event to remember which still reflects our beliefs and way of life as ethical consumers.

Luckily, my search has revealed that there’s a great way to save on money while still supporting causes we believe in: finding tax-deductible wedding expenses.

The Venue
I’ve learned that the reception is typically the most costly part of the wedding, comprising about half of the total cost, according to theknot.com. This estimate includes the cost of the venue, catering food and service, alcohol and beverages, wedding cake and parking.

If you choose to have your reception at a site owned by an approved nonprofit organization, your site fees may be tax-deductible, as the cost can be considered a donation to support the upkeep of the facility. This applies to a number of historic landmarks and homes, museums, even nature centers.

I’ll share a few local spots I discovered:

Prallsville Mill, a rustic, historic mill in Stockton, NJ, holds up to 150 guests.
Tax-Deductible Facility Fee: $1,850

Honey Hollow Barn, the nature center for the Bucks County Audubon Society, is a lovely stone barn with exposed beams in desirable New Hope, PA and holds up to 75 guests.
Tax-Deductible Facility Fee: $2,500 for a Saturday wedding

Things to Know
You must obtain a statement from the nonprofit organization which states the amount of your contribution. Goods and services recieved must be deducted from this, if applicable.

For church rentals, although only your accountant can tell you about any other applicable rentals, any amount beyond what is considered to be the fair market value of the rental is tax-deductible. You may be able to deduct gifts paid to clergy as well.

In order to claim these deductions, you will need to itemize them using Schedule A.

Know of any more great, tax-deductible spots for a wedding reception? Post them in the comments!

My next entry will feature more tax-deductible wedding savings ideas.

Image Credit: babasteve

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Tax-Deductible Weddings, Part 1

This is a question mainly for readers in a relationship in which finances are mostly combined or you rely on one another for income and make spending decisions together. I am wondering how much you can spend — whether as a percentage of a total budget or a hard dollar amount — without discussing the details with your significant other. Do you hide any spending from your spouse or partner? (Don’t worry, you can answer anonymously.)

Perhaps you each knowingly keep some separate funds to surprise one another, but I’m more concerned with the little things that may go unnoticed. Can this type of deception be harmful? If so, at what limit would it hurt you or your partner?

Also, do you have or would you consider having a secret bank account? If so, what is it used for?

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Question for Discussion: How Much Can You Spend Without Telling?

It’s important to impart a financial education to younger generations, just like the Rogersons who are teaching their children about investing. When you invest, you are relying on other companies before you can make any money. The companies in which you invest must perform well and brokerages must stand between those companies, their profits, and you. This is likely one of the reasons that entrepreneurship — finding ways to grow a business from the inside — is a lesson some parents would like to impress upon their kids.

This is the case with the Becks, another family profiled in a recent New York Times article. Ted Beck is the president of the National Endowment for Financial Education and his wife is a former banker, so it’s likely that he has a good handle on how to provide children with valuable lessons about money. His method involves garage sales. Mr. Beck allows his children to plan garage sales, from inventory to pricing. By working together, the kids have learned about themselves and about effective teamwork.

“What really struck us was that the kids knew each other’s strengths better than we did,” he said. “They split the $100 that they earned, but they agreed not to split it equally because Katherine had done the most.” Mr. Beck was quick to add that projects like this one wouldn’t necessarily interest all children equally. While his children all participated and cooperated well, he said, only Katherine showed real interest in business. She is now majoring in marketing in college.

As long as entrepreneurship isn’t being forced upon the children, I’m happy with the idea. The article mentions that the projects don’t interest all the children equally; I would hope that if one is not interested, they would be encouraged to find an activity for which they are more suited. Business lessons are fine, but it’s not for everyone. Matters of managing money are more important, in my opinion. Also, children are not adults and shouldn’t be expected to consume their lives with more adult-like activities. Every person only has one chance to be 16, and an upper-middle-class teenager should appreciate that he or she doesn’t have to work to support his or her family.

There will always be time for work later. No one on their death bed at the age of 90 has ever said, “I wish I worked more when I was a teenager.”

photo: colros

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Teaching Children Practical Money Lessons: Entrepreneurship

I have to applaud Kerri and Mike Miller for one reason. They were willing to share their financial problems with the readers of Money Magazine and CNN Money, despite the level of embarassment that kind of publicity might create.

While the article spotlighting the couple did not say explicitly whether the Millers are spending more than they earn, their level of debt is climbing higher each month. It’s clear they’d like to cut back their expenses, a big portion of which is caused by the desires of their children.

Thanks to bombardment of commercials and peer pressure, kids have strong desires for nice clothing and cool toys. It’s not really these desires that cause the spending, it’s the fulfillment of those wishes. How bad is it?

There’s 12-year-old Kate, a seventh-grader who covets a pair of $160 boots, prefers clothes from American Eagle rather than Target and recently got a $300 cell phone.

There’s nine-year-old Landon, who has a voracious appetite for video games. And their youngest, four-year-old Claire, will soon start taking ski lessons (cost: $224, not including equipment).

All three kids attend summer camps that run about $60 a day for each child. And then there’s the cost of babysitting ($200 a month), preschool ($4,000 a year) and braces ($3,000).

All the items mentioned above are not life necessities. These kids could easily survive without these luxuries, and at the very least, there are less expensive choices for everything. The only things listed above that I would disagree with in almost all circumstances are the ski lessons for the four-year-old.

The article contains a number of suggestions for the Millers, and presumably for the millions of families who find it hard to make ends meet while fulfilling their children’s desires. Start with saying no to the kids. When your son or daughter expresses a wish for a $300 cell phone, it should be an obvious candidate for an inflexible negative response. There is simply no reason for it — unless the kid is running a business where he needs instant access to clients through voice and email.

* Examine your motives. Are you throwing a blow-out birthday party because it’s what the kid wants or because you want to show off to the neighbors and the parents of the kid’s friends?

* Stop the whining. Saying no is difficult, but the kids may take rejection better if they are given an inside look at the household financial operations. If you can help them get a sense of your inflexible expenses, perhaps they can sympathize.

* Teach money management. Give the kids control of their budget, so they can learn to make the best financial choices. Let them make mistakes and learn.

* Save on the must-haves. Negotiate wherever possible and don’t immerse a kid with high quality activity equipment until they’ve been participating for several years. Hobbies and interests at a young age are fickle.

* Nip surprises in the bud. Stay on top of your finances to catch things like a stratospheric cell phone bill due to excessive text messages.

Kids will be kids. You won’t be able to control every aspect of your children’s lives. Even with your best protection, they will be exposed to a world of materialism. They should be familiar with this world — it is the world they will live in their entire lives. I don’t believe children should be forced to act too mature for their age, but as they grow older, you should help them be aware of different forces in the world that try to share their thoughts and desires.

Help! Our kids are driving us broke [CNN Money]

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Overspending for the Kids

Archetypical contributed a great comment to my last entry, Surviving (and Thriving) on $12,000 a Year, with a very different take on Donna Freedman’s story:

I think frugality is great, and there are certainly things we could all do without, but I refuse to glorify this woman who gets praised for leaching off of everyone.

If only we could all get paid alimony because we refuse to get a job or if only we were all comfortable stealing food from starving children via the food bank maybe we could all be as frugal as her. She even mentioned that she would get food stamps if she could. It seems almost miraculous that a system which allows people to misuse it so regularly found a way to at least not shoulder her fake burden on society as well!

This woman is an example, certainly, of how you can try to put a positive spin on the most dispicable of activities.

I had ended up cutting my thoughts on toeing the line between accepting “charity” and sponging off of others out of my last entry since it took the entry in too many directions, but Archetypical’s points are valid and worth addressing separately.

I do feel that it’s fantastic to be able to live on low funds, but not if you’re always taking from the system and not giving back, and not if your activities are costing your friends and family, making them the sponsors of your lifestyle. I can’t speak for Donna Freedman, but the two friends I mentioned manage to toe this line very well. In fact, they’re always giving me things they picked up, “paying it forward” with things they no longer need, and bringing me home-baked goods (a plus-two in my book). If they didn’t have money on hand to contribute their percentage of the dinner costs, they’d make up for it by bringing wine or doing the lion’s share of the work.

It’s a delicate balance, and I do disagree with doing some of the things Donna suggests in her article on a long-term basis. Public services like welfare and the food stamp program are meant to provide short-term assistance to those trying to get back on track. We pay in, then collect only if needed. My assumption was that Freedman would pay society back in the long run for what it gave her, but then, I can’t say that for sure. Things like freecycling, however, I can completely support – it’s a system good for the landfills as well as for us.

When I reread from Archetypical’s perspective, there are certainly some things that cross the line of what I’d be comfortable with. I consider myself an “ethical consumer”, which basically means I believe in spending more to support the things I believe in. I pay extra for green energy, for example, or to buy my vegetables from the local organic farmer instead of the local Wal-Mart, but that’s another topic which deserves its own entry.

It’s challenging to balance that with frugality, but I think there’s certainly a happy medium to be found here. The couple I spoke follow practices much closer to what I believe in, and I’m glad to be able to share their story as a comparison and contrast to Donna’s.

That said, I’d love to know: where’s that line for you? At a certain point, taking advantage of opportunities can become taking advantage of people. Do you know someone you feel is saving himself at the expense of someone else, or toeing that line well? How do you manage to give back?

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Where’s the Line Between Taking and Taking Advantage?

I really enjoyed Donna Freedman’s recent article, Surviving (and thriving) on $12,000 a year. While it contains some great tips on conscious spending, it’s also tremendously inspirational, making me feel that anything can be possible if you’re willing to have some tradeoffs.

As I read more and more about others’ net worth online, I start to feel like everyone else’s savings are racing ahead of mine. I’ve studied hard, earned my Masters degree, work hard and now earn a nice salary. Still, I suffer from very high “overhead” costs in my life due to commuting, etc., and occasionally I despair, feel like I’m backsliding, like it’s hard to earn enough to ever get ahead even when I’m working as hard as I can fathom.

And then I read about a woman who is living a lean life, but still in some ways a rich life, on $12,084 this year. And still contributing monthly to her charity of choice, and helping out her grown daughter! It sounds unbelieveable. Surely, if that’s her budget, I have plenty of room to keep cutting costs and increasing my own savings. I feel like I’m down to the wire, but case studies like hers make me realize I’m not even close.

What seems to be the critical success factor is that she’s able to rationalize her sacrifices, and assigns a time period to them to make them more bearable:

Make no mistake: I’m poor by choice, because I needed to change my life. I chose to leave my marriage, and I chose to become a student. I can live this way because I know it won’t be forever. I’ll have my degree in two more years, and I’ll go back to work.

She writes about a past filled with jobs stacked atop jobs, trying to balance college amidst very little free time, and enthusiastically announces her new focus:

This year I’m dumping most of the part-time gigs. I’ll still freelance and baby-sit, but very selectively. My new school means tough classes, a long bus commute and lots of reading and studying. More to the point, it’s a great opportunity, and I’d like to take full advantage. So I’m choosing to work less in 2007, focusing instead on getting healthy and getting my education.

That means careful money management and a fair amount of sacrifice. I’m willing to do both.

As I read further, I’m reminded that her tale seems somewhat familiar, and her rationalizations equally so. A conversation comes to mind from several years ago, when two good friends of mine, a couple, were chatting with me about money. They’re serious travel buffs, and have spent nice long spans of time in gorgeous areas across the planet. I love to travel as much as they do, but was lamenting how I’d not been able to do so in ages.

“You just have to sharpen your focus and cut out everything else that diverts you from your goal, ” one of my globe-trotting friends said.

“We have time to travel because we keep our expenses to the bare minimum so we can afford to work less. We know how much we need to make in order to live the way we do, and we question every single purchase in order to get there. We’ve argued over whether to spend 50 cents on a hot dog. There’s nothing we ignore–everything counts, because everything moves us towards or away from our goal.”

One of the duo had just paid off her student loan in full, and moved on to dutifully amass $25,000 in savings. “The two of us can live off that for two years,” she said.

I listened, but was full of mixed feelings. I was glad that they were about to embark on a an extended journey across the world – France, Spain, Morocco, and more exotic locales – but jealous that I’d be spending that time toiling away in a cubicle, far from the sun and the wonders of those cultures. Even more, though, I was inspired, because now I knew that what they had was completely attainable – it just came at the price of certain daily sacrifices.

$12,500 a year to support two people, living right alongside me in a populated area on the East Coast. It certainly wasn’t easy for them. Most of their friends, myself included, were among the 9-to-5 crew, going where and doing what they liked. We’d marvel when they’d come out with us, but share meals, deciding together what to get, share a beverage, even. You could see them tallying the sum in their heads, deciding whether a given purchase was worth it. The first few times, it boggled my mind that they even paid attention to the bill. And yet our decisions so clearly impacted our results, the world tour which was out of reach for me becoming a reality for them.

I’ve learned a great deal from these two friends, and much of it resonates with Freedman’s own mantras:

* It’s not what I have, but how much of it I can keep. As in the article, my friends’ every purchase is a question of necessity – “Is having this worth being without this money, being that much farther from our goal?”

* How can I get it free, or almost free? If they do decide the expense is justified, they are incredibly resourceful in getting the best possible deal. They belong to all the local Freecycle groups and keep an eye out for anything they might need. If a friend can lend or share something, they choose that option over buying the item outright. And all purchases are the result of much careful consideration, never on impulse. I am constantly amazed by what they’ve gotten on sale, and how they’ve achieved economies on expenses I still hardly think to consider. Even when traveling, they carpool or bike everywhere.

* Enough is as good as a feast. Like me, my friends are foodies, and enjoy high-quality and organic foods. Buying on sale, exercising portion control and supplementing these foods with less costly ingredients like rice and pasta have helped them to save, as has buying larger quantities and splitting them with friends. They’re always willing to spend a night in cooking versus dining out, and we’ve had some wonderful evenings enjoying great food and wine together. The more people, the greater the economies of scale.

* Every day is casual Friday! Although they’re frugal with their clothing spending, my friends are never underdressed. Nor are they slaves to fashion or trends. They’re always up for a visit to the secondhand shop or yard sales, and tend to stock up on clothing that way, then save and take good care of what they have, even reworking certain garments on the sewing machine. But the next item Freedman mentions is the key to their success in dress.

* Announce my intentions. As word travels and more people have gotten to know them, my friends have become frequent beneficiaries of clothing, furniture, you name it. There are more worn-once castoffs in my circle of friends than I’d like to admit, which means this couple never suffers from a shortage of clothes. They’ve always got an eye out for opportunity, and often are willing to exchange their work for reduced rent. Sometimes it’s just a matter of asking and searching.

As you might be able to tell from reading this, I’m not yet making as many sacrifices as I could be, but I am gaining a fuller awareness of my spending and how it affects my goals. Whether the ultimate goal is a college degree or a globetrotting lifestyle, daily decisions and motivation can make it possible, even when earning a salary many would consider a pittance.

I am deeply inspired by these individuals’ success in achieving their dreams while still spending on the things they consider important. They help me realize that I don’t necessarily need to wait until I’ve achieved some elusive, grand salary to have the things or life I truly want, that “getting ahead” can result from moving not upward, but inward.

Surviving (and thriving) on $12,000 a year [MSN Money]

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Surviving (and Thriving) on $12,000 a Year

Looking forward to that new baby smell? It’ll cost you… for years. USA Today has ten tips for “baby-proofing” your finances — the way you might baby-proof a kitchen — so you’ll be in a better position to part with $1 million over the next 18 years.

1. Review health coverage. Some new parents I’ve known have been constantly in and out of the doctor’s office. I hope those visits were all covered.

2. Get rid of credit card debt. You don’t want to still be making your minimum credit card payments when you’re also making diaper payments.

3. Build up an emergency. I don’t know one new parent who has not faced some sort of emergency in the first few years, but the severity of that emergency has varied. Emergency funds are good sense for anyone, with or without child.

4. Revise your budget. USA Today suggests using the calculator at babycenter.com.

5. Update your will and life insurance. This is a good tip for any major life change. You want want to add your newborn into your will and make sure you have enough insurance coverage to take care of the new arrival.

6. Show fiscal restraint. One father I know wanted to buy his new son every fancy gadget, whether for learning or for fun. Don’t go overboard.

7. Weigh the cost of staying at home vs. working. This is a fiery topic deserving of its own article, at minimum. Yes, sometimes there is a financial advantage to one parent staying at home, thus eliminating the need and the cost of day care. It’s a decision in which more than just finances come into play.

8. Open a tax-advantaged workplace spending account. Your employer might offer a healthcare spending account, which will allow you to deduct certain medical expenses for your family directly from your income. That’s also known as paying expenses with “pre-tax money.”

9. Exploit tax breaks. “See whether you qualify for child and dependent care tax credits or an earned-income tax credit. You should also adjust your tax withholding to reflect a dependent child; this will give you a larger paycheck, which will help cover your new baby expenses.”

10. Save for college. When you’re looking down the road, it’s likely that college is going to be an enormous expense, particularly if tuition rates increase at the clip we’ve been used to. Typical financial advice says that parents should not risk their own secure retirement for the college education of their kids. I think there must be a happy medium.

You and Me and Baby Makes $197,700 [USA Today]

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

10 Money Tips for Baby Preparation

If you happen to live in the United States, enjoy your Independence Day! I’ll be searching for a concert and fireworks display to my liking this evening to attend with my girlfriend. For the remainder of the summer, here are some suggestions for having a good time without spending too much money outside of travel. These suggestions are directed towards someone living in my general vicinity. If you’re elsewhere, they may at least provide you with some broad suggestions.

Your mileage may vary — literally and figuratively.

1. See the New York Philharmonic’s Concerts in the Parks Series, where admission is free and the music is unmatched by any group in the world, and you get fireworks, too. [New York and New Jersey]

2. Visit Mohonk Preserve and go hiking for a day, where a day pass costs $9. [New Paltz, New York]

3. Attend the Pop Art Exhibition at Princeton University Art Museum. Admission is free. [Princeton, New Jersey]

4. Sit under the stars and listen to and watch great singer/songwriters like Jeffrey Gaines, Erin McKeown, Tom Chapin, and Trout Fishing in America at WXPN’s Concerts Under the Stars series. $10 admission for everyone except those under 16 or older than 62, who get to attend for free. [Upper Merion, Pennsylvania]

5. Visit Hacklebarney Farm on the weekend for apple cider hot dogs, cider baked beans, cider donuts and, not surprisingly, apple cider. Find your way through the corn maze. Watch a cider press demonstration. Hike in the nearby Hacklebarney State Park. There’s no admission charge to the farm, but you’ll probably want to buy cider-related products. [Chester, New Jersey]

6. Take a scenic drive along the New Jersey Revolutionary War Trail, following in the footsteps of General George Washington (or perhaps more accurately, the hoofsteps of the general’s horse). In addition to the battlefields and museums, make sure you note the statue of the man sitting and reading in Palmer Square on Nassau Street in Princeton, which was sculpted by my friend’s ex-girlfriend’s father. [Trenton, Princeton, Freehold, Hopewell, and Lambertville, New Jersey]

7. On July 7, visit a world-class drum and bugle corps, The Cadets, finish their last hour of rehearsal at Pleasant Valley High School in Broadheadsville, Pennsylvania. Then follow them to their performance and competition in Allentown. You will never see a group of 16- to 21-year-olds more hard-working and dedicated to excellence. If it’s too late for July 7, try July 9 at Hershey Park, though I don’t know where their rehearsal will be. After that, the corps is heading west for the remainder of the summer. [Allentown, Pennsylvania]

8. Visit and take a historical tour of Drumthwacket, the official residence of the Governor of New Jersey. $5 donation is encouraged. [Princeton, New Jersey]

9. See a movie under the stars. I know of a few outdoor film presentations this summer in Princeton and surrounding towns. I try to attend one or more every summer. There’s something special about sitting outside and watch classic films like Alfred Hitchcock’s North By Northwest. It’s much more intimate than your typical movie theater, and it’s free. Best of all, no one gives you a hard time for bringing your own food. [Princeton, New Jersey]

10. Attend a minor league baseball game, like one played by the Trenton Thunder at Waterfront Park. By the way, Trenton Thunder is currently first in their division. The best seats in the house are only $10! [Trenton, New Jersey]

Like I mentioned above, these suggestions are local to me, but with a little research and knowledge, just about anything can be adapted to where you live. Just don’t expect the Brigham Young University Wind Symphony in Provo, Utah to be as good as the New York Philharmonic — and if you don’t know the difference between “very good” and “best in the world,” you should.

Photo credits: jiashiang

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

10 Inexpensive Things You Could Do This Summer

A few years ago, I adopted my friend’s cat. This friend and his wife had just had a baby, and that baby had quickly become allergic to the cat, among many other things. The couple couldn’t find a willing home among other friends, so I decided to give in and adopt him.

Rupert and I have had a good three years together, but within one month I will be moving into a new apartment whose managers do not “allow” pets. Thus, it is time for me to find Rupert a new home. I am considering listing him on PetFinder, a kind of dating service that places “people seeking animals” with “animals seeking people,” if I cannot find a friend to take him in.

If I can’t find a friend or co-worker, I am thinking about asking for some sort of fee, just to ensure I can find an owner who is serious about taking care of an 8-year-old domestic short-hair.

If I do take this path, the fee would be donated to a local adoption agency.

Here’s a recent picture of Rupert, in lolcat style.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

I Is Needin New Ownrz: My Cat Looking For a New Home

No matter how hard one tries to save money, unexpected things happen. The other day, I was driving to work and I was lucky enough to receive a traffic ticket.

I was at an intersection making a left turn, and the left arrow had just disappeared. There was still a green light, but according to traffic law, I should have yielded to oncoming traffic. To be fair, it was a quite large intersection and there was more than enough time for me to make the left turn before the oncoming cars would come close to meeting me. I followed the car in front of me who also turned after the green arrow was gone.

As it happened, a police officer happened to be near the intersection. He pulled up next to me after I made my turn and motioned for me to pull over to the side. I let him pass and he also pulled over the car in front of me. This worked out well for the town’s police force; they managed to grab two cars with the same stop.

He could have given me a ticket with points on my insurance, but the officer was “nice.” He awarded me a ticket with no insurance points. Thankfully, I won’t be paying for this ticket for years thanks to an increased insurance premium and a surcharge to the state for the points.

Yet, I still had to pay $56. That includes a $2 “convenience fee” for the privilege of paying online with a credit card rather than finding time to stop by the municipal court. I guess I’ve never really had “good luck” with cars.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

More Than $50 Wasted