Condoms and canned goods

What's the last thing people want in a recession? More kids, apparently. According to data-tracking firm the Nielsen Co., dollar sales of products in the "family planning" category, which include condoms and over-the-counter female contraceptives, were up 10.2%. In fact unit sales were up 1.5%, which indicates that consumers are willing to pay higher prices today to prevent crib expenses tomorrow. This is an article run my Time Magazine in mid-2009, but it's full of observations and advice. Read more, click here. 

Living large in lean times

Mens Health Magazine brought together a roster of contributors and peered into the pocketbooks of more than 1,000 men in their largest-ever financial survey to help readers find ways to live better, for less. Read on, and start reaping the rewards.

Happy New Years!  

Direct Buy Commentary

Kiplinger's December 2009: From the vantage point of your own couch, the furniture, cabinetry and other household items seen on Direct-Buy commercials seem attractive. So do claims that you can save thousands of dollars on your purchase. Don’t take the bait until you find out how much you’ve got to ante up before you can realize any savings. That number is frustratingly hard to nail down, but it, too, can be in the thousands. Link

Haggle Your Way To Savings Redux

In July I wrote this column "Haggle Your Way To Savings." This month Kiplinger's published an article on Bartering by Laura Cohn presenting another tactic to get the things you need and want. Ms. Cohn notes that barter requests have jumped nearly 80% on sites like Craig's List. In addition, she offers tips you can use before venturing into the barter foray. You can read a full article here: http://www.kiplinger.com/magazine/archives/2009/08/lowdown-bartering.html

Is Spending Patriotic?

By Shreyas Nanavati

Individual savings rates in America have risen to 6%. Studies indicate the savings rate will reach 8%. All it took was a crash in the home and stock markets, high unemployment and fear of a slow, painful recovery to turn our debt-happy society into a nation of savers.

Not only are individuals and families cutting back, companies continue to trim expenses in hopes of strengthening their balance sheet. As long as the consumer and corporate sectors feed off each others' uncertainly we're in a a vicious cycle.

Advertisers have been trying to link spending with patriotism. It's true, for the economy to prosper, consumers and corporations need to pull out their wallets, but is it patriotic to spend?

Incentives Favor Saving

Key market forces are fueling our growth in savings. Credit is harder to come by. Home equity loans, once a cheap source of cash, are no longer a given option. In addition to deteriorating home prices, investment and retirement portfolios are no longer a source of security or riches. On top of that job loss, record government debt, a slow to materialize stimulus package and uncertainty about the future of social security have all nudged our spend-first culture to save more, manage debt and make rational spending decisions.

Balance In Due Time

As savings accumulate, economic uncertainty dissipates and the stock/home markets stabilize these patterns will tip in favor of spending. Until then, it’s not our obligation to support the economy by consuming things we do not need or can not afford (cars for clunkers enthusiasts, heed my warning). Do what is in your best interest, eventually balance will be restored and the nation will be stronger for it.

Haggle Your Way to Savings

Haggling does not come naturally. Fortunately, I’ve had the pleasure of travelling to places where the first price is rarely the final price. Having seen this process at its finest, I’ve compiled a list of best practices to help you haggle your way to a better deal.

What is Negotiable
Haggling extends beyond garage sales, open air markets and your next car. You can haggle to improve your situation on a variety of items: phone, cable, gym membership and home improvement jobs come to mind. While there are many things we can haggle on, it’s important to temper expectations if a product or service is non-negotiable. This could be the case at national retail outlets, dining establishments, etc. A strategy in these situations is to ask if the seller offers specials or is planning to have a sale soon.

Start by Asking for a Better Deal
Competition, especially in highly competitive industries dominated by independent business owners, is fierce. Start the process by asking for a better price. Smart Money Magazine even suggests that medical costs are negotiable: http://www.smartmoney.com/spending/deals/how-to-cut-your-health-care-costs-14650/.

Do Your Diligence
It’s common for businesses to beat a competitor’s price. This is especially true in situations where many sellers offer the same or similar product. Craft markets or touristy places are classic examples. Walk around and get a feel for the going rate of an item before you haggle with a vendor.

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For tips on a wide-range of money matters, visit this GivingGrinch.com recommended site: www.moneyreallymatters.com
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Be Even Keeled & Not Afraid to Smile
Have fun with the haggling experience. The best hagglers I’ve seen have a price in mind and a strategy to achieve their objectives, but they also maintain a pleasant disposition. This allows them to be persistent without being unpleasant.

Grease the Wheel

• Offer to pay in cash
• Offer to purchase on the spot
• Offer to recommend shop/service to your friends and colleagues

Work the Variables
Often there are several variables inclusive or exclusive of the final price. If you are unable to reduce one area try to improve your situation in another. Earlier this year while on a trip we walked into a hotel without a reservation. After chatting with the front desk manager and determining that the hotel was only 70% occupied, we asked for a lower rate than was quoted. The manger was not willing to reduce the rate, but we were able to secure a larger room and a welcome basket with snacks and beverages at no extra cost.

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Business owners, hiring a virtual assistant can save time and money: www.integrityofficesolutions.com
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Be Willing to Walk Away
If you don’t get the price you require and are able to make due leave your information with the seller, ask them to contact you if they are willing to meet your terms.

Don’t Walk Away After You Agree on a Price
It is bad etiquette and a waste of time to negotiate in bad faith.

Reader Tips
Bartering or swapping goods is a bit like haggling and another way to save money. There are a bunch of websites that offer these services. Here are a few:

• HomeExchange.com
• Craigslist.com (barter section)
• MakeupAlley.com
• PaperBackSwap.com
• SwapThing.com
• TargetBarter.com
• TextSwap.com
• BarterBee.com

Submitted by Shefali in NYC

Share Your Haggling Tips:
Share your haggling tips and success stories with our readers. You can post a comment on our blog or send me an email: advice@givinggrinch.com.

A Nation of Value Shoppers

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GivingGrinch.com
BudgeFree for Life!
Editor: Shreyas Nanavati
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Website: http://www.givinggrinch.com/
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March 2009: A Nation of Value Shoppers

Everyone is talking about cutting costs. It’s en vogue in daily media discussions. What encourages me is how this topic is being approached. We’re willing to spend, but demand more for our money. We still travel, dine out, go to the theatre, etc. Extravagance is in a downward spiral, but if the price is right our wallets will open. One example is travel. A family trip is no longer considered a luxury; it’s an annual activity. This year travelers want to know exactly what they are paying for in advance and are opting for all-inclusive or packaged vacations over a la carte. Meanwhile, hotels and airlines offer deep discounts to lure you their way. It’s not surprising that corporate travel is down this year, but leisure is not. To the chagrin of hoteliers, trips planned around stays with friends or family is also on the rise. If your family vacation is on the fence, download the Master List from either http://www.givinggrinch.com/ or http://www.givinggrinch.blogspot.com/ for more value-oriented travel suggestions.

BudgetFree for Life Consulting (2.0)

Based on feedback from my clients, I’m putting the finishing touches on my BudgetFree for Life Consultation Service. Tailored for individuals, couples or families, this package comes with all the training, tools, techniques and support you’ll need to live BudgetFree for Life. It’s an affordable way to bring fiscal and personal balance to your life. To learn more, check out my 60 second presentation:

GivingGrinch: Budget Consultation Service

View more presentations from Shreyas Nanavati.

BudgetFree for Life Tip: Annualize to Minimize Habit Spending

If you want to understand the magnitude of habit shopping think annually. For example, a $2 cup of coffee may seem like chump change, but repeating this habit daily costs $730/year. Take stock of your habits and determine if they are getting in the way of more important needs like health care, an emergency cash fund, eliminating credit card debt or even saving for a vacation. The solution isn’t necessarily to stop the habit. Rather, it’s to understand how it brings value to your life so you can find ways to fulfill the need in conjunction with meeting the needs of other areas. For instance with coffee, here are three suggestions: cut back on the frequency, brew at home or bring your favorite blend and brew at work. Habit shoppers must also beware of check-out lines. Annualize all the magazines, candy, gum and other small dollar items you reach for than ask yourself, how exactly is this adding value to my life? Here are a few examples clients and readers have shared:

Safety Needs:

• It’s only a $45 parking ticket; unfortunately I seem to get one monthly by forgetting to feed the meter. Annually, that’s $540 I could have put towards replacing my worn out tires! – P. Johnson, Reader
  

Social Needs:

• Once a week I go out with friends from work. I always order Grey Goose vodka. After a couple drinks, my tab with tip is around $30. I really didn’t care what I drink; Grey Goose just rolls off my tongue. I still go out, but ordering happy hour specials cut my bar tab in half. Annual Savings $750. – S. Hanson, Reader
• The only reason I still have HBO, Showtime, Star and Cinemax is because I didn’t cancel after the free trial expired. It costs me an additional $40/month and I rarely watch those channels. I also have NetFlix. I kept NetFlix and cancelled the pay channels. Annual Savings $480. – J. Hayes, Client
  

Coupons Hot, Clipping Not
Coupons can save a lot of money, but not everyone likes to clip. In the future we may not have to. There are now services that link coupons to loyalty cards or to personal PDA/cell phones eliminating paper clippings at checkout. The Wall Street Journal recently discussed this trend. http://online.wsj.com/article/SB123551425475363603.html?mod=most_emailed_day.

• A few sites to get you started:
• Shortcuts.com is linked to the Kroger loyalty card
• Smartsource.com is linked to Giant Eagle
• CellFire.com has partnerships include Kroger and Hollywood Video and sends coupons to data network-enabled cell phones
• Coupons.com will soon launch electronic coupons linked to a number of chain store loyalty cards as well as a cell-phone based application

Before you jump on this bandwagon, I would like to remind you of advice I offered in the Houston Chronicle last year (http://givinggrinch.blogspot.com/2008/10/welcome-houston-chronicle-readers.html).

“Coupons are marketing messages. If you know what you are shopping for and you find a coupon to match that, then you worked the system, but if you get something unplanned because you had a coupon, the system worked you.”

Another tip, a coupon does not guarantee you the best deal. Always scan the aisle for alternative.

Shopping Tips & Selling Tactics

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BudgeFree for Life!
Editor: Shreyas Nanavati

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Shopping Tips and Seller Tactics

It comes as no surprise that the economy is on everyone’s mind. If you’ve been reading this newsletter, I’ve written about how you can improve your personal outlook without any negative impact on your lifestyle. In May we discussed water consumption. July and August focused on gas and electricity, respectably. I’ve also discussed tactics to build an emergency fund (September). You can find these articles, and June’s Travel Tips, on our Blog. You can download Word and PDF versions via the website.

A promise may lead you into a marketer's trap

Ever wonder why hot holiday items are never in stock? The answer isn’t just demand - manufacturers suppress supply. They do this to capitalize on a promise. Faced with a barrage of “please can I have this, please, please, please,” we often promise (out loud or to themselves) to buy a certain gift for Christmas. What happens if this item is out of stock? You still have to buy a present so you get something else. BUT, the last thing you want to do is break a promise. After the holidays you will most likely buy the item you promised. This happens over and over again. Remember the Cabbage Patch dolls craze? A solution to avoid this trap – pick up the hot items before the shopping season. You can always return it if you find it for a better price.


Online Comparison Shopping: Three easy steps to a great price

There are thousands of sites on the web to help you comparison shop. To find the best deal, I recommend this three step process:

Step 1: Comparison shop across hundreds of sites at once at Shopping.com and settle on a few stores offering a great price. Don’t forget to add shipping and tax.

Step 2: Search for an online coupon to further reduce your cost. My favorite site is RetailMeNot.com. Type in the URL of an online store you and this site will display recent coupons.

Step 3: Check for a last minute deal on Dealsea.com or Dealigg.com. A word of warning, if you’re an impulse shopper these two sites are not for you.

Say NO to Extended Warranties: Your credit card may already provide one

Check your credit card benefits to see if it provides purchase protection. Features on my American Express include protection against accidental damage or theft for up to 90 days from the date of purchase and a one-year extension on the original manufacturer's warranty. These benefits will save you money. Two personal examples:

• My iPod died outside of the manufacturer’s warranty period. Since it was within American Express’ extended period, they credited me my purchase price ($179).

• Days after I purchased a floor rug, my dog tore up a corner. I called American Express and they credited the full ($400) purchase price. I still use the rug, though torn in one corner it’s barely noticeable.

I don't abuse this benefit; I've had my AMEX since college, but have only filed claims on four occasions.

GivingGrinch.com: In the Press

• Houston Chronicle: Click
• Great Day Houston (TV): Click