This Week In Your Wallet: How to Downsize, Curb Bill Creep & Shop Labor Day Sales
My friends are moving away. That’s friends – as in plural. I am of that age, or at least getting very close to it. My friends have children either in college or just out of college. All of a sudden if the house itself doesn’t seem too large, the tax bill certainly does.
Our discussions when out to dinner – which used to be so dominated by childcare solutions that one friend put a ban on the conversation – now revolve around where we’re going next. Townhomes with less space and lower taxes seem to be popular. For some, Florida is on the table.
I suppose that’s why an article in the Sunday New York Times on how to downsize resonated. One option it didn’t mention that I’ve become a fan of (even though I’m not going anywhere yet) is the Facebook-based local tag sale. Years ago, I sold a set of bedroom furniture that my daughter had outgrown on Craigslist. A stranger showed up at my house. We completed the transaction. It was fine.
These days, I’m a little more safety conscious. So, I’ve joined a closed Facebook group called Chappaqua Moms Sales. It’s monitored, and the woman who runs it checks you out before she lets you in. There’s a very strict code of conduct. And yet, I still sold a set of bedroom furniture, and then a pair of chaises in about an hour each. I felt better when the buyers – with whom I’d been corresponding on instant messenger – came to pick up. These sites are great vehicles for downsizing. You can find one near you by hitting Facebook and typing in the name of your town or neighborhood (or one nearby) and the word sale. “Moms” is optional.
And now for the rest of this week’s news…
How to curb bill creep
Got bill creep? Wait, what is it? Okay, it’s a term I made up, but it describes the phenomenon when – say – the cable bill that started at a flat $99 per month suddenly reads $148 per month and it’s more confusing than the series finale of Lost.
At first it might seem harmless to add one movie channel, to swap the regular box for one with DVR or let the kids order an on-demand movie (or two). It’s the same story for cell phones too. You trade the regular phones for smart ones, add another gig of data and then before you know it, the bills creep up and your budget is in demand of some serious attention. Well, this week on Bankrate I offer tips for keeping it under control.
Now – more than ever – consumers have more choices and power when it comes to channels and phone plans. The keyword here is power. Contact your carriers regularly to ask for discounts. Your go-to negotiation phrase: Can you do better? Edgar Dworsky, founder of ConsumerWorld.org, says to ask specifically for a loyalty discount. Also, stop paying for what you’re not using. If you’re not watching all of your channels – or using all of the data you’re paying for each month – cancel or downgrade. For more, head over to Bankrate.
Caring more about cars and Cabo
You’d think with all the confusion surrounding retirement savings, people would be pretty motivated to invest the time to learn about their options. But according to a recent survey from Charles Schwab, you’re probably spending more time researching which car to buy or where to vacation next. As CNNMoney reports, over 50 percent of survey respondents (who were retirement savers) spend five or more hours researching car prices, and 39 percent said the same of vacation deals. As for researching their 401(k) investment options – only 11 percent spend the same amount of time. As a matter of fact, over one-third owned up to spending less than an hour on their investment research. The major takeaway here: share the love.
Neglecting your investment options can be costly (i.e. running out of money in retirement because you let the wrong mix of stocks, bonds and other assets run on autopilot for years) – and not taking advantage of your employer options and aid is just lazy. For example, your employer might offer free online investment tools, or even advisors to run the numbers with. Schwab’s survey found that only 23 percent had used the professional advice offered to them, even though 44% said they didn’t know how to select their best 401(k) options. If that’s you, get going today by plugging your numbers into a retirement calculator to see just how much you’ll need in retirement. I hope it’ll motivate you to hit the books.
Patios, grills, mattresses and more
For many folks (myself included), Labor Day symbolizes the end of summer. (One parent sent me a tweet saying he was adding a bottle of champagne to his back-to-school shopping list to celebrate!) Anyway, it should come as little surprise to expect major markdowns on summer-related products this weekend. Think patio furniture and grills. In fact, last year retailers (i.e. Lowe’s, Walmart, and Target) reduced patio furniture prices by up to 75% during Labor Day Weekend. And according to DealNews.com, we should expect about the same this year.
For grills, Walmart also served up a 4-burner gas grill for $147 last year (look for similar deals this weekend). Do know, however, that grill prices generally get even better throughout the month of September. Some non-summer sales this weekend include deals on designer duds and mattresses. For mattresses, expect discounts of up to 60% off from retailers like Sears and Kmart. Sleepy’s already announced its Labor Day sale, slashing 50% off storewide. Head here for more on what to expect this weekend.
Have a great week,
Jean
