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Last Thursday, the Senate failed to pass a bill that would again extend unemployment benefits. Rather than continue haggling between Democrats and Republicans for another round of changes to the bill, the Senators will likely drop the issue.

The bill also contained an extension to the homebuyer tax credit, a benefit that officially ends on June 30, 2010 for homes purchased by May 31.

This is the beginning of the end for economic stimulus from the government. Meanwhile, the Obama administration at the G-20 summit is warning other countries not to end their own stimulus plans too quickly, an approach we might not be able to take ourselves.

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Car companies want you to buy their products on impulse. They would, generally, prefer that the step of thinking is removed from the consumer’s process. This is evident in the commercials you see around the holidays in which a spouse is surprised when he or she notices a gift wrapped in a large red bow sitting in the driveway or in one maker’s “sign, then drive” promotion, prompting customers to believe that the car-buying process is better when it takes thirty seconds.

Buying a car is a significant financial decision, and it can affect your financial stability for years. The process should not be taken lightly. It’s important to start at the beginning by asking yourself a series of questions.

What are my needs versus my wants?

We haven’t reached the point of discussion whether to get the convertible or the sedan. First, we have to determine whether we need to buy a car in the first place. There are many other options to consider.

  • carAre other forms of transportation available? Although I was living in the suburbs, I took a bus and a train to my job a few years ago, and could use public transportation to get wherever I needed to go. Bicycles are less expensive to own than cars, and walking is yet another choice.
  • Is carpooling an option? While usually viewed as inconvenient, the thousands of dollars you could save makes carpooling attractive.
  • Can my spouse and I share a car rather than buying a second? You may be able to coordinate schedules so one can drop the other off and pick the other up at work.
  • Will a program like ZipCar suit my needs? If you don’t need to drive constantly, you may be able to sign up for a car sharing service. You can reserve a car for only the hours you need one.
  • Can I get more out of my current car? Modern cars can easily last beyond 200,000 miles if properly maintained. Put off a purchase as long as possible, and don’t succumb to the desire to trade in for the latest model every few years.

If you can determine you don’t need a car, you may want to stop here. The process is complete for you. On the other hand, if you do have the money available, you may be willing to pay for convenience. You don’t need a car, but you want one, and that will cost you. So carefully consider saving as much as you can on the purchase.

Should I buy a new car or a “pre-owned” (used) car?

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Yesterday, I signed up for my second photography class, meeting every Saturday afternoon for eight weeks starting in January. I learned much from the first class I took last summer, and I have been looking for a more advanced class. My photography skills have a long way to go, and with what I consider two full-time jobs it is difficult for me to find time to practice. My goals with the class are to work on finding the “art” in the world and capturing it the way I want in the camera.

Here are some articles worth reading this weekend.

You Can Negotiate Anything. The focus of this article on Get Rich Slowly, Herb Cohen, was interviewed in September for the Consumerism Commentary Podcast. The article focuses on the main ideas behind Herb’s book, You Can Negotiate Anything.

How to Cook More, Eat Out Less. This is a perennial goal of mine that never seems to gain much traction. I feel constrained for time now, and cooking seems to take time away from me. Ordering dinner in is always quicker, particularly when I can place my order online in one browser tab while I’m writing an article in another. On this topic, also check out Save Money: Dining Out vs. Groceries Analyzed at Debt Free Adventure.

Money CAN Buy Happiness. Travel and entertainment can be expensive, so having money helps build experiences that enrich you life. But happiness has many forms, and there are plenty of experiences that can bring happiness without breaking the bank. What makes you happy?

The Consumerism Commentary Podcast is being featured on Charles Schwab’s Roth IRA home page. The featured interview focusing on Roth IRA conversions in 2010 with Schwab’s Bryan Olson was published here in September.

Don’t miss these articles:

Have a great weekend!

P.S. The Carnival of Personal Finance is looking for bloggers who would like to host the weekly event in January, February, and March 2010. If you are interested, fill out the short hosting request.

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Thank you for reading Consumerism Commentary. This website continues to be a success, thanks to visitors who participate in discussions, ask questions, and share stories.

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Best of Consumerism Commentary, September 2009

We also had a number of excellent guests on the Consumerism Commentary Podcast in September. We discussed budgeting with the creators of You Need a Budget and PocketSmith, learned how to survive on a teacher’s salary, discovered the details about Mint.com’s acquisition by Intuit including one surprise that was not mentioned in the media earlier, and discussed negotiating and bargaining with presidential adviser Herb Cohen.

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Podcast 23: Haggling and Negotiating From Hostage Crisis to the Grocery Game

by Flexo

Our theme for today’s podcast is haggling and negotiating. The first guest in today’s Consumerism Commentary Podcast is Herb Cohen, author of You Can Negotiate Anything and adviser to Presidents Jimmy Carter and Ronald Reagan. Herb speaks about the experiences that led to his work in high profile negotiations and offers tips for everyday haggling ... Continue reading this article…

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Emotional Barriers to Negotiating and Haggling

by Flexo

It is in any consumer’s best interest to try to get the lowest price on all purchases, yet haggling, negotiating, or bargaining, at least in my culture, is not a social norm. Other than in specific situations such as buying a car that is not a “non-negotiable” brand like Saturn or Scion, haggling is uncommon. ... Continue reading this article…

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Would You Buy a Car From Wal-Mart?

by Flexo

After General Motors’ bankruptcy, there is no question that the automobile industry will change significantly. With less competition and higher costs of production, prices will increase. It will be more difficult and more expensive to find parts and service for some vehicles. The selection of vehicles will be more limited. Perhaps more brands will opt ... Continue reading this article…

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Consumerism Commentary Podcast

by Flexo

The Consumerism Commentary Podcast is a weekly personal finance show, hosted by both Tom Dziubek, a former podcaster with the Wall Street Journal, and Bryan J Busch, who started his first podcast in 2005 for fans of novelty rock music. Each week, the show offers commentary about money management, getting out of debt, budgeting, consumer ... Continue reading this article…

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