This Week in Your Wallet: August 16, 2011
I awoke Monday to headlines that the market volatility might continue through the week. It might – just as it might continue for the next few months. The question is: Are you holding up? As I think you know, I believe (in good times and in bad) that the way to hold up, to right your own ship, is by controlling those things that you can control and letting go of the others. Fixing the mix of assets you hold in your 401(k) or IRA is doable. Spending a little less to give you a greater feeling of security is doable. Talking to your spouse or parents or kids about how all that’s happening is impacting them is doable. (For a look at what you need to say, check out my segment from Today.) Timing the stock market – at least in my opinion – is not. So, today, we focus all on things you can manage. Here are a few new ideas:
Household Debt Is Falling – Can Your Household Debt Fall Further?
As CNNMoney.com reported yesterday, household debt has fallen nine out of the last 10 quarters. That’s great, overall. But how are you doing – and could you be doing more? If you’ve got good credit, equity of more than 20% in your home and a mortgage rate over 5% and you’re thinking you’ll be in your house a while longer, you could save some big bucks by refinancing yet again. Mortgage rates are near their historic lows and capturing them gives you the opportunity to use your cash for other things. One thing I would not do, particularly if you’re over 50, is take another 30-year loan. Use this opportunity to get into a 15-year mortgage that you can get out of before you retire!
Bought It…But Wish You Didn’t?
Last week, I quickly booked a trip to visit a few colleges with my son. I’d planned it for the end of August – on a week I thought he was free, but without checking with him. “Sorry, Mom,” he said, informing me he’d already made plans to be back in the lab, finishing up his summer research project with his mentor. It was almost an expensive oops. I’d bought non-refundable tickets. Booked a non-refundable hotel. The only thing I thought I’d be able to get out of was the car I’d rented. In the end, he was able to shift his dates (and I learned a lesson: my teenager now has a life). But when I came across this SmartMoney story on how to get out of purchases on big gadgets, travel, monthly costs like cell phones and health clubs, even (occasionally) cars, I thought I’d send it your way…just in case.
Calgon, Take Me Away!
Finally, here’s one that just made me laugh. I started doing laundry on Sunday – the day after my children returned from camp. I’m six loads in and there is no end in sight. I suspect Barbara Thau, who wrote a piece for DailyFinance.com this week on five ways to save money on laundry, is in the same boat. You can see her piece, which recommends, among other things, cold water washing, here. I already do that (in part because sometimes I feel the need to wash a colorful towel right alongside my white t-shirts). But my favorite among the tips was the revelation that just like many of us use higher octane gas than we actually need, many of us use substantially more laundry detergent than we actually need. She writes: “Chances are you’re throwing money down the drain by pouring excess detergent on your wash. . . Here is the big, ‘aha’: The fill line is twice the amount of detergent you need to clean effectively.”
Who knew? Well, now we all do.
Have a great week!
Jean
