This Week In Your Wallet: No, the Government is Not Back at Work
We went over it last week – and I’m sure you are getting as sick of this as I am. Washington isn’t back at work. The possibility of defaulting on our country’s debt gets more real by the day. And we have to ask (and answer) the what if questions. I did that on Today yesterday morning. If you’ve read this newsletter for a while, you know I’m a big fan of controlling the things you have the ability to control. That doesn’t include Congress. But the following few stories are in the ballpark:
Be your own financial planner
“Should I hire a financial planner?” It’s a question I receive often. And the answer is – it depends. Just like some people hire trainers for that extra motivation to go to the gym, some people look to financial planners to keep their spending in check and their investments in balance. I’m a fan of financial plans (and have one myself). That’s why I enjoyed Karen Blumenthal’s recent column in the Wall Street Journal, in which she argues the importance of having a financial plan, whether you hire someone or take a DIY approach. Like she says in her article, those who have a plan are often better spenders, savers, and are more confident with their money, overall. Blumenthal offers a handful of questions to consider when starting out including:
Where do you see your money in 10 years?
Grab a pen and a piece of paper and write down your goals – short term, long term, individual, and shared (if you’re married). Writing down your goals is a good starting point for mapping out your plan. I liked her suggestion of placing your goals in your online calendar, making dates for achieving them, and setting reminders along the way to keep you in check and on track.
Are you good at spending, but not saving?
Yes, it can be time-consuming and tedious, but follow your money! The only way to reveal your spending and saving habits is to track all of your income and spending for a few months. (Even a single month will teach you a lot.) Knowing both your strengths and weaknesses will help you develop better strategies for accomplishing your goals.
Are you prepared for the unexpected?
If you don’t have an emergency fund, it’s time to start one. Saving for retirement and your child’s education is important. But you’ll never get there if you don’t save for the unexpected first.
Hold off on holiday shopping
Despite all of the headlines urging us to start our holiday shopping now, Mark Ellwood, author of the new book, Bargain Fever: How to Shop in a Discounted World, says to put down our wallets and wait. Data has shown mid-October to be one of the least discounted times out of the year. Why now? Stores are trying to milk those full-prices before Black Friday. TIME recently did a Q&A with Ellwood offering advice on how consumers can beat retailers at their own game this season. Two takeaways:
- Those tricky little stickers that read, “Compare at original price…” can be empty, persuasive ploys that dupe you (and me) into buying something. Unscrupulous retailers have been known to mark up the original price to make the “sale” price look better. Let your fingers do a little sleuthing before you shop to figure out what things on your list should cost.
- He also suggests listening to soothing music while fighting for the best deals. Why? Stress has been shown to make us irrational shoppers – i.e. we sometimes spend more when our adrenaline is pumping. Keep calm this Black Friday to avoid the ultimate shopping hangover of “bargain buyer’s remorse” come Saturday morning.
Save on heat this winter
You’ll want to keep a lighter hand on the thermostat this season. The majority of household heating bills are predicted to rise, according to the government in a recent USA TODAY article. Heating oil users may bypass the hike, but if you live in one of the 90% of households that rely on natural gas, electricity and propane, expect to see a bigger bill. So layer your sweaters, grab an extra blanket and keep the teakettle at the ready.
Have a great week!
Jean
