Archives for 2013

3 Spending Traps To Avoid This Holiday Season

This time of year, it's all about the shopping.

Shopping for food, for gifts, and for decorations.

However, it's easy to fall into spending traps when you're already predisposed toward spending money.

Before you head out, be aware of the following spending traps, and do your best to avoid them.

1. Buying Something Because It's a “Good Deal”

When you're already on the hunt for bargains, it's easy to add just one more thing to your cart because it's a “good deal.” But do you really need it — or even want it?

If it's not on your list, you are still spending money you haven't planned to spend, no matter how big of a bargain it is. It makes more sense to stop and examine the purchase before adding it to the basket.

Ask yourself why you're getting the item. If your best answer is “It's a good deal!” that's really not good enough.

2. Minimum Spending for Free Shipping

Many retailers offer free shipping if you spend a minimum amount.

The problem with this arrangement is that it can trick you into spending more than you had planned just for the free shipping. This used to happen to me in the past. My husband and I, when shopping online, would hunt for a few more items to reach the minimum required for free shipping. After a while, though, I realized that we were often spending $10 or $15 extra in order to save between $8 and $9 on shipping. All told, we were spending extra, and still coming out behind.

Instead of trying to hit a minimum, look online for shipping promo codes, or look for shops that offer reasonable prices and free shipping. If you shop at Amazon a lot, it can be worth it to pay for Amazon Prime in order to get the two-day shipping. It comes in handy during a pinch when you need to order something quickly for the holidays. If you aren't worried about items arriving within a certain time period, you can save your basket and just keep adding to it with planned purchases over a period of a week or two until you naturally reach the free shipping minimum.

3. Credit Card Rewards

One of the best ways to shop more efficiently is to use credit card rewards to earn cash back. This cash back can offset some of the cost of your holiday spending. The problem comes in when you just pull out your plastic mindlessly for everything without tracking your spending. Even worse is when you make unplanned purchases, and you justify it by saying that you're earning rewards.

Rewards cards work best when you use them in conjunction with a spending plan. Figure out what, exactly, you will spend your money on, and then stick to that list. Make sure that you have enough money to cover your purchases when the bill comes so that you don't end up paying interest on your purchases. That paid interest can make your entire holiday season more expensive.

With a little vigilance, you should have no problem making the most of your money this holiday season, and avoid falling into expensive spending traps.

Giving A Gift Card? Make It Personal!

By Miranda Marquit Leave a Comment

One of the easiest ways to give a gift, particularly during the holiday season, is with the help of a gift card.

Gift cards are rising in popularity because they are easy to give, and the recipient can, to a certain extent, get what he or she wants.

The downside to giving a gift card is that it can seem so impersonal. Giving a gift card doesn't have to be impersonal, though.

“Gift givers worry that they seem impersonal,” says consumer expert Andrea Woroch. “However, you can personalize a gift card by going beyond the traditional picks like Starbucks or iTunes.”

Ideas For Personalizing Your Gift Card Giving

gift card for christmas One of the first things you can do is find out what the recipient wants. There are numerous places to share a gift registry or wish list.

Amazon has wish lists that others can browse. Woroch points out that there are gift card registries that allow recipients to designate preferred stores so that gift givers can offer something they really will use.

When you know what the recipient wants, it's easier to get an appropriate gift card. It can be to a favorite store, or for an experience that the recipient might like.

My brother and his wife like to try restaurants in their area, but they don't always feel like they can spend money on a night out when they are struggling graduate students. I buy a gift card to a local restaurant, and they appreciate it, since it allows them to do something out of the ordinary.

Woroch also has other creative ideas around the way you present the gift. I usually tuck the gift card into a colorful Chinese money-holder, but Woroch has some great ideas that can make the gift fun. “Go one step further in the personalization process by wrapping it with a unique and relevant item to make it fun to open,” she says. “For instance, a spa gift card could be wrapped with a soothing eye mask or body butter, while a golf store gift card can be wrapped with a sleeve of golf balls.” These fun gifts are inexpensive, but it adds to the fun of the experience, and can enhance the gift card.

Get Your Gift Cards At A Discount

One of the ways you can make your gift giving cost efficient is to use discount gift cards. I often get restaurant gift certificates on City Deals, where you can save money off the face value of the gift. Woroch suggests GiftCardGranny.com as a resource for discount gift cards. “You can find discount gift cards to popular stores at average savings of 12 percent,” she says.

This is a great way to give something the recipient will really enjoy — without breaking the bank. You can get everyone what they really want and save money on your holiday shopping to boot.

What do you think about giving gift cards during the holiday season? Do you try to personalize these gifts? What are your tips for saving money on gifts for the holidays?

What To Do If You’re Underemployed

By Miranda Marquit 4 Comments

One of the realities afflicting many in the current job market is the fact that underemployment is a big issue.

While it's true that unemployment is still something that weighs on many, there are also plenty of workers who are underemployed. The underemployed are usually over-qualified for their jobs, since they can't find work in their chosen fields, at pay rates that reflect their skills and expertise.

My husband is currently underemployed. He's an adjunct professor, but he should have a full-time job. In fact, he does the work of a full-time instructor, but is only paid about 1/3 of what a beginning professor should make. He helps students with their projects and he spends more time with them than many full-time professors. He also teaches between nine and 12 credits a semester.

Others are underemployed as well. There are those with advanced degrees working in coffee shops, and people with years of experience in their fields doing seasonal retail work.

So, if you are underemployed, what can you do?

Start a Side Hustle

One of the best things you can do is start a side hustle.

If you are mostly worried about the money, a side hustle can help you earn a little bit more so that you have what you need to move forward with your finances.

Depending on the way you are underemployed, this can be a great way to fill your time as well. In many cases, if you're underemployed, you probably aren't working 40 hours a week. You can use some of that downtime to start a side hustle.

Keep a Hand in with an Internship or Volunteer Work

If you are concerned about the impact your underemployment is going to have on your resume, consider doing an internship or volunteer work. No, you aren't going to get paid for this work, but you do have something for your resume. This something shows that you have been making efforts to remain marketable, and that you are still active in worthwhile endeavors. Having a little extra something to show on your resume can be a great way to remain an attractive candidate.

My husband volunteers his time helping students prepare papers for presentation at conferences and for publication. As a result, he is listed as an author, and it helps his vitae. It also shows that he is still active in his field, which is important when looking for a job in academia.

Continue Applying for Other Jobs

Don't give up on applying for jobs if you are underemployed. You need to stay on top of the situation as much as possible.

Keep networking and keep putting in applications for jobs that you are interested in. My husband has been reluctant to apply for many jobs, since he likes where we live now, and he keeps hoping that the university will hire him on as more than an adjunct. However, he's starting to see that might not happen, and he's started updating his info and leveraging contacts for the application process.

It's not fun to be underemployed, but if you want to chance the circumstances, you need to keep working hard, and looking for networking opportunities that can lead to a new job.

How To Identify A Solid Business Partner

By Miranda Marquit 3 Comments

Many entrepreneurs strike out on their own originally, but eventually realize that they need help as they find success. In some cases, this help means hiring the right people for your team. In other cases, though, the best approach is to partner up with another business-savvy person.

Finding a business partner you can trust can be a chancy venture, but the rewards, when you pick correctly, can be great.

The Advantages Of Having A Business Partner

business-partner-traits First of all, you need to decide if it makes sense for you to get a business partner. I didn't really think about getting a business partner (I didn't even think of my blogging as a business!) until two years ago, at the inaugural Financial Blogger Conference in 2011. Tom Drake suggested that we partner on creating a site, and now he's a partner on a second site that I own, as well as a helpful partner for the launch of my book.

When you work with a business partner, you have the opportunity to find someone who serves as a complement to your strengths and weaknesses. This means that you have more time to focus on the things you do well, while your partner works on the things that he or she does well. You have the chance to create a situation in which your combined effort is greater than the sum of your individual parts.

On top of that, a business partner helps you spread the work around. You are less likely to run yourself ragged and experience burnout when you have a business partner. I know that my business has benefitted from including Tom, and I would be lost without him.

So, if you are looking for a business partner, what should you look for? You don't want to choose wrong, or you could end up in a great deal of trouble.

Traits Of A Good Business Partner

Everyone looks for something different in a business partner. In my case, an ability to handle the backend of a web site, and monetize it, was extremely important. You might have other requirements for your own business partner. However, no matter what specific traits and expertise you are looking for, here are some traits common to a solid business partner:

Shares your enthusiasm: It helps if you are both enthusiastic about the venture and about the partnership. You want someone who is passionate as well, so you can encourage each other.
Credibility: Make sure your partner has a degree of credibility. You don't want to discover that your business partner has a history of shady dealings. You want someone on the up-and-up who want sully your own reputation.
Financial stability: While your business partner doesn't need to be very rich, it does help if he or she has the finances under control. Even being debt-free isn't a requirement. But a measure of stability, and an ability to manage their own finances with competence is important, since you will be taking risks together.
Trustworthy: You have to trust and respect your business partner. Without that trust and respect, your partnership is likely to deteriorate.

Think about the situation before you commit to a business partner. Identify someone with whom you work well, and who has solid traits.

What do you look for in a business partner?

Budget Out Of Control? How to Take Charge

By Miranda Marquit 5 Comments

There are times when it seems as though your money is in charge of you. At times, whether it's because you are anxious and stressed, or just because you're busy and feel you don't have time to manage your money, it's possible for your budget to get away from you. You find yourself pulling out the credit card more and more — with no real plan for paying of the balance at the end of the month.

It's hard to stay on top of your budget at times like these, and it can be tempting to not even try. After all, once you become overwhelmed, it's hard to kick the spending habit and bring your budget back in line. However, if you want to stay financially solvent, you do need to take charge of your finances. Alicia H. Clark, a Licensed Clinical Psychologist, has some tips for those who are ready to take charge of their money:

Break it Down

“The first step in getting control of your money is to recognize the anxiety money is causing you, and use the energy of that anxiety to fuel productive action rather than avoidance,” Clark says. “Break your tasks into parts so small that you barely notice that you are taking a first step.”

She suggests that a good first step is opening up your account online and looking at the numbers. Your first step should be simple and small. “Whatever the first step is, do it, and breathe deeply, recognizing that you are taking action,” Clark continues. “Know that facing the truth of your situation is the first step to changing it for the better.”

All of your actions after that first step can also be broken down into small tasks that are manageable. Looking at the whole situation can lead to a feeling of crushing defeat. Instead, make the whole situation much easier to handle by keeping your steps small, whether you are tracking your spending, looking for ways to earn more money, or finding small expenses to cut from your budget. “Look for ways you can improve your finances,” Clark says. “What are five ways you can decrease your spending? Are there ways you can grow your income?”

Change Your View of Money

Too often, we think of money as the end, rather than the means to an end. We work for more money, or try to cut spending to have more money, without really think about what it means, beyond the fact that more money is needed. Instead, think of money as a resource.

“Recognize that money is simply a resource that you have to manage much like your time, your energy, and your attention,” Clark says. “At its best, money is a reflection of your choices and your financial situation.” Stop thinking of money as the end itself, and start thinking about what you want from your life — and how money is the tool to help you achieve. Manage your money as a resource, and it becomes easier to take charge of your situation and work toward the things that you want out of life.

What do you think? How do you take charge of your finances?

How To Choose A Financial Coach

By Miranda Marquit 1 Comment

Many of us recognize that we need help sometimes. Even though I know the basics of how to play the guitar, I find it helps to have a teacher who can direct me to more effective practice. In just about everything we do, it can help to have someone coach us to better results.

This applies to building wealth as well. As you try to build wealth, and improve your financial situation, a coach might be able to help you see better results. Financial coaches and mentors can help you recognize what you might need to improve on, and offer suggestions on how to improve your situation.

Before you decide to hire a financial coach, though, it's important to know what you want to accomplish. Todd Tresidder, a financial mentor, offers some very helpful insights on choosing a wealth coach who can actually help you accomplish your goals.

Choosing the Right Financial Coach for You

choosing-financial-coach The first thing that Todd suggests is that you sit down and think about the “why” behind your decision to get help from a financial coach. It's also important to pinpoint the way you work, and your desired outcome for the coaching. Here are some of the questions that Todd suggests you answer before you begin your search:

What do you want to learn?
Why do you need a coach?
How much accountability do you want the coach to hold you to?
What is your support style? What type of support do you require from a coach?
What type of knowledge do you want your financial coach to have?
Do you have specific goals the coach can help me with? Or do you need help developing goals?
What type of interaction do you want to have with your coach? Is phone interaction or email interaction enough? Or do you expect face-to-face meetings.
Are you capable of being open and honest with your coach?
What is your natural learning style?

It's important to have an idea of what you expect to get out of the coaching experience, and that you understand your own limitations, and which weaknesses you hope that your financial coach can make up for. Establishing what you want will help you more effectively pick a financial coach.

Vet Your Candidates

Todd points out that next, you need to vet your candidate. One of my favorite ways to find any sort of professional is to ask for referrals from my network. But you can also look online, to see whether there are coaches in your area, or if you can hire a coach on a distance basis.

Don't forget to look at experience and credentials. “Don't hire a hacker,” says Todd. “Instead, determine if the coach has credentials showing advanced training with an accredited coaching organization.”

I also like to talk to someone before I hire professional services. This is because you can really get a feel for your comfort level when you have a talk. You need to be comfortable with your financial coach, since you will be sharing intimate details about your life and money.

What do you think? Would you hire a financial coach? What would you look for in a coach?

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