This Week in Your Wallet: July 5, 2011
I hope everyone enjoyed the Fourth of July. It was a beautiful day at the Jersey Shore, where I celebrated with friends (no Snookie sightings in case you’re wondering, my Jersey Shore is a little more sedate than hers). Happily we got a double dose of fireworks both Sunday and Monday nights. I think the organizers wanted to be sure that anyone who took off for home on Monday morning didn’t miss out.
So what’s on the docket today? What happened last week that you need to know about?
Told You So. . .
A few weeks ago, I wrote about listening to a brilliant economist who laid out his theories and research about why this recovery (as opposed to others that have come before it) feels so bad. If you didn’t read it, you can find it here (that week, I posted the newsletter on my website as well). As a follow up comes a study from Northeastern University which hammers home his points. It shows that almost all of the growth and bounty has flowed directly to the profits of corporations and almost none has trickled down to your paychecks.
“According to the Bureau of Labor Statistics, average real hourly earnings for all employees actually declined by 1.1 percent from June 2009, when the recovery began, to May 2011, the month for which the most recent earnings numbers are available,” writes Steven Greenhouse in the Bucks blog of the New York Times. Here’s the link if you’d like to read more about it. You can also read the full study here.
I Know You Are, But What Am I?. . .
Okay, so I started on these juvenile headlines and now I’m realizing they will have little to do with the copy that comes below them. Keep reading and I’ll make it worth your while with a giveaway in the text below…
The excellent Money Magazine writer (and all around good egg) Donna Rosato came up with a budgeting suggestion I’d never heard of in a recent post. It made sense to me so I figured some of you – particularly those for whom budgeting has been a struggle – might find it useful. It’s called a “bucket budget.” As Rosato explains it, you open three accounts – one savings and two checking. Then you ask your employer to funnel your paycheck into those three accounts in these proportions: Into the savings account goes the amount you want to save; into the first checking account the amount you need to cover your monthly nut; and into the second checking account anything else. That second checking account becomes your fun money. But when it’s gone, it’s gone and there’s no dipping into the others or hitting the plastic to tide yourself over.
As I’ve said before, so much of money management – like dieting – is finding the mind game or the system that works for you. Some people are Weight Watchers people because they like the points. Some people are Adkins people because it’s easier for them to eliminate carbs and call it a day. And some people will be bucket budget people because having these guidelines will make it possible for them to color within the lines.
It Takes One To Know One. . .
A good deal, that is. And with that weak segue, here’s the giveaway. What’s your favorite childhood retort? Best ones to facebook me at facebook.com/jeanchatzky and tweet me @jeanchatzky will receive a signed copy of Money 911.
Gas prices are indeed coming down a little bit – and none too soon, it cost more than $65 to fill up my station wagon at one point this summer. Now it’s closer to $57. But these prices still hurt, which is why retailers are rolling out deals on gas in order to lure shoppers back to their premises. Wal-Mart was first on my radar, offering customers 10 cents off per gallon at Wal-Mart and Murphy stations if they paid with a Wal-Mart card. The New York Times listed some others in a story this week. I thought you should know about them:
- Publix: $50 gas card for $40 with minimum purchase of $25 in other products.
- Kellogg’s: 10 bar codes from cereal for a $10 gas card.
- CVS: $10 gas card for spending $30 on particular items.
- Stop & Shop/Shell in the Northeast: For every dollar spent at Stop & Shop on qualifying purchases, customers will earn one point, and for every 100 points they will receive 10 cents off per gallon (up to $2.20 off per gallon) of their next fuel purchase at Stop & Shop and participating Shell stations. Kroger has a similar program at Kroger-owned gas stations.
Have a great week!
Jean
