Cheapskate's Adult Daughter Moves Back Home: WSJ

The Wall Street Journal has a relatively new feature called Cheapskate by Neal Templin. This week the Cheapskate writes about the thrifty lessons his daughter learned during college and after graduation.

Frugal College Years

Mariana --the daughter -- traveled a frugal path through college. (Tuition was covered by a partial scholarship and parental contributions.) Here's how she did it:

• Cut her own hair
• Purchased second-hand clothes
• Shopped for groceries at a store that offered huge price cuts
• Worked two part-time jobs to pay for living expenses

Post-College Return Home

After graduating from college, Mariana found a position with a New York publisher. Good luck! When I found my first publishing job in NYC, I silently wondered if the job came with food stamps and an application for Section 8 housing. The salary was about $15,000 and I had to work at night as a waitress to pay the rent on an apartment I shared with two girls.

Mr. Cheapskate has an accurate grip of the situation:

If she lives in New York, I suspect her paycheck will be gobbled up by rent, groceries and the like," Templin writes.

Faced with that reality, Mariana will move in with her parents. Her father --the Cheapskate -- doesn't plan to charge rent. He's grateful to have her home.

It's a great read with frugal nuggets.

Here are links to a few of his columns:

We Managed to Sell Our Home And Keep Our Marriage Intact

The High Cost of a Bargain Meal

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Here's how to buy my new book:

@ Amazon.com
@ Barnes & Noble
@ Borders
@ Target.com

The Frugal Sampler: Free Newspapers, Tea & Gyms: Theft or Fair?

What's theft? What's fair? What about those free copies of the WSJ in hotel lobbies? Is it ethical for me -- on a R&R walk -- to pop in at the Four Points by Sheraton and enjoy the Wall Street Journal or USA Today in the hotel lobby?

This post was sparked by the recent drama around a pop star who recently stole a lighter. I'm not giving her problems anymore space, but that pop star's chutzpah and theft prompted me to think of the scenarios, questions and doubts I face. As I try to live frugally, I also want to avoid stepping over ethical lines.

1. Free copies of the Wall Street Journal. I live near a long string of beach-front hotels and many of them cater to business travelers. My parents often stay at these resorts and of course, during those times, I help myself to the newspapers. I think of us as extended-stay family. But when my parents have checked out, is it still okay (ethical) to stop by the lobby, hang out and enjoy the newspapers? There is always a stack of unread newspapers and it's so tempting.

2. Free DIY coffee and tea cart: Same lobby scenario.

3. Free chocolates: The Ghirardelli shop near my home passes out free chocolates. Is it fair to be a habitual sampler? I use restraint: One chocolate per weekend visit. But is it fair to accept the free handouts if I rarely make a purchase?

4. Networking at the Apple store. The Apple store near me has several lanes of display computers. A lot of consumers have fun with the graphics and other functions on the display models, which are also online. Is it fair to use the Internet connection to check email or Google something?

5. Children's drinks at Starbucks. My son, age 12, loves to buy the children's version of Starbucks drinks. The size and price (cheaper than the regular version) are perfect for me. Is it ethical to order the children's drink for myself?

6. Children's menu at restaurants: When we go out to restaurants, I look at the price and portions on the children's menu with envy. Is it fair to order a kiddie meal for an adult? Is it fair if one of my kids wants something from the adult's menu and I order from the children's menu? Is that swap fair?

7. Gym membership: A number of gyms offer free passes for a day, a week or a month and there are lots of gyms in my area. Is it fair to shop around and hop from gym to gym until I make up my mind? What if I never make up my mind and just keep gym hopping?

8. Permanent gym guest: Several friends have memberships at area gyms. They can always bring a free guest. They've offered. Is it fair to be a permanent (free) tag along?

WWYD? If you have time, please send me an email (sharonhr@bellsouth.net ) or leave a comment. Thanks!

Recent Posts:

Today:

Looking for Sea Cows: My Daughter's Frugal Play Date
Yesterday:
Welcome MSN Smart Spending Readers

Special Welcome to NBA.Com/Heat Fans

Typing Class Regrets: My 10 Career Goofs: An English Major's Lament!

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Frugal Gift Guide: Pretty DIY Baskets (Last-Minute Specials)

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Use Cyberspace, Drive a Camry, Wear Jeans & Die: The Best Consumer Deals in '06

The Internet, denim and death represented some of the best deals for consumers in 2006. Based on consumer prices listed on a chart in the Wall Street Journal, I crunched some numbers and came up with a list of the best deals in life. In the Jan. 2 issue, WSJ provided price checks on a menu of average consumer services and products based on prices for 2004-2006.

Bottom Line: It's cheaper to die than to be born.

Based on my calculations of price changes, here's:

My List of the Best Frugal Deals:*

......Item.........2006 price....2006 vs 2005 change.............2006 vs 2004


Monthly Internet......$42.95..........0%........................... 0%

Jeans........................$39.50..........0%........................... 0%

Toyota Camry......$19,725.00..........1%........................... 3%

Movie Ticket...............$6.51..........2%........................... 5%

Funeral................$6,940.00..........3%........................... 6%

Birth...................$8,162.00..........3.2%........................ 13%




*(Later today --if I don't space out -- I will post a list of the worst deals)



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Luxury For Less: Tom Ford Chats about Cheap Chic

Low prices are the latest trend in high fashion. That's the word from Fashion Guru Tom Ford (formerly of Gucci). Ford offered his overview of Frugal Fashion trends in a recent article from the Wall Street Journal.

Here's a snippet of his comments.

"With Target, for example, you go in there and find something that is a great price and wonderful for its intrinsic value. This is democratization of fashion. I love this high-low concept," he says, adding: "There is all this accessibility -- everything is now online."

Signs of Cheap Chic as spotted by the WSJ:

*$69 frocks from designer Vera Wang, who usually makes red-carpet gowns (at eye-popping prices) for celebrities.

*The expansion of upscale designer names at low-priced stores such as Target and Wal-Mart

* The popularity of high-fashion at low-ticket vendors such as H&M

My own insights:
Designer fashions are often wildly overpriced. There's a huge price difference between the cost of production and store price tags. Marketing and Advertising usually add to the price tag. I wrote about that subject in this article for the Budget Fashionista.

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Wall Street Journal: Free Online Today. WSJ Links I Like

I breeze past the political commentary/editorial pages of the WSJ, but I like rest of the paper, which offers a mix of business, personal finance, market news and wacky reports.

I started reading the Journal years ago when I worked in Manhattan and covered the stock market for the newsletter division of Institutional Investor, which is run by Tom Lamont, one of the best editors in New York.

Reading the Journal provided me with a quick, but in depth course on the capital markets. I call it my frugal MBA DIY program.

The WSJ has a new look and online access (WSJ.com)is free today.

Here are a few stories that caught my attention in the latest edition:

How secure/safe is online banking?

The DIY billionaire divorce.

Six baby steps for Better health in 2007


Families fight for insurance coverage for patients with anorexia.
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New Wallet-Busting Tricks From Credit Card Companies for 2007

Fewer awards, additional balance transfer fees and stealth kiddie-marketing attacks. Those are just a few of the budget-busting tricks that credit-card companies have planned for consumers in 2007. That's the word from the Wall Street Journal.

"The bad news is that the companies are still finding creative ways to raise fees, in part to offset shrinking profits from interest paid on balances. For example, within tiered-rate schedules, the card companies are increasing lower-tier fees without changing the top tier, says Linda Sherry, spokeswoman for advocacy group Consumer Action.

Say a credit card charges a $15 late fee for balances up to $100; $29 for balances of $100 to $250; and $39 for balances of $250 and over. It jacks up the $15 and $29 fees, but not the $39 fee. This way, Ms. Sherry says, fewer people are likely to notice it and complain." source: Wall Street Journal

The article includes some frugal tactics for evading additional credit-card tricks.

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Kiddie Houses that Look Like the Big House

Forget the refrigerator box house, a blanket/tented villa or even the fabled tree house!The latest trends: kiddie houses that are real structures and exact replicas of mom-and-dad's house, according to this feature in today's Wall Street Journal.

The price tag: $15,000 for one mini-me playhouse and some price tags top $100,000.

"The lavish replicas, which can include such grown-up amenities as hardwood floors and media rooms with satellite TVs, generally cost from $10,000 to $100,000. Some run even higher than that, exceeding the median price of a single-family home ($218,000 in November."--Source: WSJ

In my house, we're divided over this issue. My husband, an interior designer/construction maven, is thrilled over the concept. "I kinda like it," he said, when I waved the hard copy of the WSJ under his nose.

Me? Give me blocks. Give me boxes. Give me blankets and give me the money that's spent on little houses that look just like the big house.

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I Told You So: Renters Gloating About Popped Housing Bubble, WSJ Says

Disclaimer: I'm a long-time renter. My apartment has golden handcuffs: large space, cheap rent and an ocean view. But still, I have major regrets about the little house (smaller than my apartment!!) that was selling for $200,000 in 1996. In about 10 years, that same house has appreciated to almost $1 million. OUCH!

Of course, now the market has dropped and some renters are gloating and singing: I told you so! Others are thinking about bargain-hunting. That's the gist behind this recent article from the Wall Street Journal.

The WSJ article has a great chart (from Fannie Mae) about the pros and cons of renting versus home ownership.

My vote for the smartest renter goes to Dean Baker --of Washington, D.C. -- who bought a place, sold at a huge profit, then rented for a while.

Dean Baker, an economist, believes that the slump validates his decision to sell a two-bedroom condo in Washington's Adams Morgan neighborhood two years ago. Mr. Baker says he received $450,000 for the unit, which he had bought for just $160,000 in 1997. Since unloading the condo, he and his wife, Helene Jorgensen, also an economist, have been renting an apartment nearby for about $2,300 a month. -- Source: WSJ

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Links I liked From the Wall Street Journal

Driven by a slump in the housing sector and a slowdown in consumer spending, the U.S. economy grew slower than anticipated, according to this economic story in the Wall Street Journal.

"The U.S. economy was a bit weaker during the summer than earlier believed as the sharpest housing-sector slump in 15 years took an even bigger toll on the slowest quarterly growth of 2006." -- WSJ

Here's the rest of my roundup of interesting stories in the Wall Street Journal.

College Savings Plans (529s) are a sweet flavor-of-the-month according to this WSJ report.

"Growth in the state-run college-savings accounts started to pick up soon after Congress acted in August to make permanent their federal tax breaks -- which were set to expire at the end of 2010. At the same time, states and plan managers have rolled out or expanded a number of incentives, such as richer tax breaks and lower costs." --WSJ

Trying to buy a home and struggling with the 20 percent down payment? Here are a few options.

A new twist in corporate mentoring: Real big brothers and sisters. Real-life siblings can provide a career edge.

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Repaying Mortgages to Pay for School & Other WSJ Links I liked

Here'a rundown of stories that caught my eye today in the Wall Street Journal.

I liked this story: when to repay your mortgage from writer Terri Cullen, who goes through the nuts and bolts of her family's plan to pay off their mortgage early in order to finance her young son's college education.

She does a great job of walking the reader through an important financial and personal situation, with real numbers and heart.

Gerry and I will be that much closer to paying off our 20-year fixed-rate mortgage, a process we're hastening by making additional principal payments of $195 a month. (Why the odd figure? I'll get to that later; the short story is that it is part of $395 a month in spare cash we debated over where to invest. ) Our goal is to have the loan paid off before our seven-year-old son Gerald enters college in 2017, leaving us with income available to meet any potential shortfall in our college savings. --WSJ

Want hot custom-made clothes for less? Go to Asia! That's the word from this piece called "Jetrosexual" about tailor-made bargains in China and Hong Kong. It's a cute piece and a fun read.

Business travelers have long frequented tailors in Hong Kong for conservative attire like suits and French-cuff shirts. But as a new crowd of young jet-setters flocks to Asia's growing tourism hubs, like Phnom Penh and Ho Chi Minh City, they're discovering their own tailoring bargains. Carrying pictures ripped from fashion magazines and originals bought at home, they're requesting customized knockoffs of everything from Marc Jacobs cords to "Project Runway" dresses -- and treating Asia's tailor shops as a personalized version of H&M, the Swedish discount chain that has made high-fashion designs accessible to the masses. -WSJ

I also enjoyed the weekly Tastings column. This week, the libations menu includes finding (relatively) affordable, mixed cases of wine. Great info with links to online wine vendors.

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Financial Tips from a Crack Addict

You can learn a lot about personal finance from a crack addict. I did when I read Confessions of a Crack Addict, in today's Wall Street Journal. But the subject is not drugs, but rather mountain climbing -- scaling cracks in tall, vertical surfaces.

"Perhaps I should explain. I've been hooked on crack for two years now. To get a fix, I've done things I'm not proud of: spent money I didn't have, blown off friends and family, traveled across oceans, lied to bosses about my whereabouts, risked my life in scary places most people with common sense would be afraid to set foot.

I'm talking about rock climbing, of course. Crack climbing, to be precise." --Wall Street Journal.

From that excellent piece by Micheal J. Ybarra, I've mined a few frugal and financial lessons.

Here's what I've learned:

1) It's good to be a girl. "Climb like a girl," is a tip the author received from a crack maven.

...use technique and finesse instead of trying to muscle up a route -- WSJ

In my personal finance efforts, I've had the best results when I've taken an easy-does-it, very modertated approach to my budget. Overly strict fiscal measures prompt rebellion and then I shop like a Paris Hilton-type of girl, albeit without Hilton's cash, extensions, blue contact lenses or expensive pumps. Oooh.. and I get snarky also.

2. Inches count. I save the most when I look for extra frugal and financial frothy inches in my budget. I look for the small cracks, which as the author explains can ruin your manicure:

And then there's crack, where you wedge your body or whatever parts of it you can -- fingers, hands, arms -- into fissures and inch your way up. Crack climbers have lousy manicures and many scabs. --WSJ

3. Recognize your addictions: Hi, My name is Sharon and I'm a former addictive shopper. That knowledge is power and therefore, I try to avoid my favorite crack houses: Ann Taylor Loft and Anthropologie (except for my once a year, end of season, massive sale splurge).

But otherwise, I'm careful. I can even do serious damage at CVS or Walgreens, where I've been known to spend $50-$80 on so-called sale merchandise.


5. Enjoy the process. It's just a game. It's just money. It's just stuff! The process, the discipline and fellow climbers are the real deals.


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