Finding My Inner Cheapskate (Again!)

Stuff happens. Life happens. And setbacks are inevitable, especially when  it comes to frugal habits, money and savings. So I don't think I'm alone in confessing that I've fallen off the frugal path.  And I won't be alone as I try to build up my savings and rebuild healthier financial habits.

I'm not alone. I have emotional support from my family and a few good friends. Plus, in this space, I have public accountability to help with my personal accounting.

Please follow my new online journal as I adjust my personal balance statements.

As the Frugal Duchess, I am confident that I will find my frugal groove--again! My inner cheapskate is in there--somewhere. You can help me find my way back by sharing your favorite money-saving strategies and your efforts to recover from financial setbacks.

Day One Lesson:  Self-awareness, honesty and accountability are the first steps toward recovery.

So what do you think?

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Frugal Book Party in Miami & 5 Errors to Avoid in a Tough Economy

CNBC features an insightful list from Bankrate.com about 5 traps to avoid in a bearish economy. No. 1 on the list: Using credit to make ends.

"Rather than continue a lifestyle financed by credit cards -- and compounding debt in the process -- consumers should "circle the wagons" by figuring out where they spend their money, Cunningham says.

Just as calorie-counters keep logs of every meal and snack, consumers should keep a meticulous watch on incidental purchases such as meals in restaurants, nights out at the movies, and, of course, gourmet cups of coffee. Think of it as an expense report to yourself. "
-- Source: Bankrate.com on CNBC.com

Here's the link to the full article about common financial mistakes.

The list of common errors includes:

• #2 devouring long-term savings,
• #3 skipping financial aid for college,
• #4 ignoring your investment portfolios or becoming emotional paralyzed by the downturn and
• #5 cashing out the equity in your home.
  
  I'll also have more financial and frugal tips tomorrow night at a book signing party. If you're in South Florida, please stop by the event!
  
  
  
  Time: Wednesday, September 24, 2008
  When: 7:30 p.m.
  Location: Books & Books, Bal Harbour Shops
  9700 Collins Avenue
  Bal Harbour, Fl
  305.864.4241
  
  "Award-winning journalist Sharon Harvey Rosenberg shares how she lives a life of high style without the stress of high costs or deprivation. In The Frugal Duchess of South Beach (DPL Press, $14.95), she chronicles her often hilarious journey of luxury living for less in one of the most expensive cities in the U.S., while equipping readers with the tools they can use in their own cities." --Source: Books & Books
  
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  Here's how to buy my new book:
  

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

The Automatic Pilot Lands in Another Crappy Moment: A Financial Lesson

It was just another crappy moment, but as the cliche goes: I learned a lot. And so goes life with my dog Scruffy, who continues to teach me Zen-like lessons in patience, planning and the dangers of living life on automatic pilot.

Here's the scenario: A little while ago -- at sunset -- I was walking the dog and I ran out of doggy bags during our walk. (TMI) Anyway, when Scruffy (that's him in the photo) headed for a neighbor's yard, I acted like a good citizen. I asked for a plastic bag and cleaned up after my dog. And then stuff really happened. Here's what I learned:

• Don't be smug. Blissed out from my do-good efforts to clean up after my dog, I stopped paying attention to the task at hand. Mindlessly, I let the plastic bag flap in the wind. As such, the bag missed the target, but my hands hit pay dirt. (Don't ask. TMI.) Needless to say, I needed a lot of soap when I returned home. Lesson: Stay focused on money, savings and clean-up efforts. Be mindful. Pay attention to details.


• Don't get angry: Annoyed, I let the leash drop into the mess. As such, one mistake led to another error. Lesson: Misdirected anger just leads to bigger messes in personal, financial and professional matters.


• Don't get lost in regrets. "I'm tired of pulling lessons out of crap." That was my mantra as I walked the dog home. But I was so lost in regrets that I twisted my ankle and almost broke my pretty silk flip-flops from China. (These pretty shoes look like Madame Butterfly meets Surfer Girl). As I tripped over the curb, I realized that in past personal and professional stumbles, I have squandered time, money and effort by banishing myself to purgatory circles of regrets. My target attitude: Stuff happens. Just clean-up and move on.
  
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Digg!

Savings at 73-Year Low & 5 Reasons Why I Didn't Save More

We've hit a new low in savings, according to a recent report from the U.S. Department of Commerce. The rate has dropped to a negative 1%, according to a report from the Associated Press.

"People are saving at the lowest level since the Great Depression, and that could be a problem for the millions of baby boomers getting ready to retire." source: Associated Press

I'm a younger baby boomer (48) and I see myself in those figures. I'm frugal now, but I wasn't for way too many years.


My Top 5 Bogus Reasons for Not Saving More

1) I thought I would be 29 forever.
reality: Ha! Every birthday since my 30th has been a wake up call.

2) I thought I would be rich by 35.
reality: Get real; Get over yourself.

3) I felt so behind in savings that I figured: Why bother?
reality: Despair is a dangerous money pit. Climb out with baby steps.

4) I was too busy paying bills to save more.
reality: Always pay yourself first.

5) I was too disorganized to create a plan.
reality: If I could find the time to exercise, I could have found the time to get organized. Fiscal and Physical fitness are important.

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I Found My Brain at 30: Expensive Things I No Longer Do

If I could write off any decade in my life, I would probably write-off my 20s. At 18, I should have just taken a 12-year-age deficit, re-financed my youth and then fast-forwarded to 31. I re-discovered my brain at 30.

But if I had not been so stupid about money (and other things) at 20, I would not have been wiser now.

Here are 5 things from my 20s that I no longer do:

1. I no longer straighten my hair with expensive chemically-induced salon treatments that cost about $3,000 a year, plus interest beacause I usually used plastic for salon visits.

The worst part: I even paid a fortune for my hair when I had no groceries.
Even Worse: I straightened my hair because I had a bad self-image. (Straightened hair is fine, if you just like the look. But that wasn't my story.) A better self image has saved me a ton of money.


2. I've nixed the weekly manicures. Even at the frugal nail shops in Manhattan ($6-8, excluding tips), I was still paying about $500 a year for a service that would have cost about $3 a year based on a bottle of nail enamel. I should have put that money in a 401k plan.

It's like this: Nails break, paint chips, but money appreciates!

3. Credit Card meals: Hey, I'm 48 and I have still indigestion from all those Manhattan meals from the 1980s. I'm still chewing plastic & I have magnetic strips caught in my gums. Can we say: Painful!

4. Buy One-Get Two (in every color!). This is not a joke. One day, in New York, I went to every Ann Taylor in Manhattan...from the Upper West Side to Wall Street. I was hunting a shirt on sale. Found the shirt; found the sale; found every color.


5. Shopping while: hungry, angry, depressed, rejected, promoted or in Paris with no money.

Now, I Just Don't go shopping (as much).

And I recycle more, including posts. I now realize that I may have written a similar rant in November.
Blame my aging, but smarter brain.





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Diva without Dollars: 10 Goofs from my 20s

An article about retirement and savings strategies for the 20-something crowd in the Wall Street Journal has made me think about mistakes I made when I was younger.

Here's my list of errors

1. Too many restaurant meals on credit

2. Waited too long to join my company's stock sharing plan. (The public shares had already spiked dramatically before I came on board.)

3. Too careless with credit cards and other debt.

4. Too many weekly hair and nail appointments.

5. Loans against my 401K account.

6. Not putting enough money in the 401k plan

7. Going to Paris & Florence when I was unemployed. (HA!)

8. Spending a book advance that never arrived. (I was a Dim Light in the Big City)

9. Too many hours in the Ann Taylor Loft.

10. Buying holiday presents for big bucks at the last minute.

This snippet of advice from the Wall Street Journal is excellent:

401(K) BASICS

• Max out: Contribute enough to capture your employer's maximum matching contribution.
• Allocate: People in their 20s should generally have at least 70% of their account in stocks. You have a long time to save; don't fret about market volatility.
• Don't default: Avoid your plan's default option if it's a money-market or stable-value fund. The low returns won't serve you well over time. source: WSJ

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7 Foolish Financial Moves from WSJ

Life insurance for toddlers? Low insurance deductible for your car? Mindless investing of retirement funds? Those are a few of the "Seven Wonders of Financial Foolishness," by Jonathan Clements in Today's Wall Street Journal.

In the article Clements points out:

*Folly: Roughly 36 percent of workers take a pass on company retirement plans.

"To make matters worse, these employees are likely passing up free money. Many 401(k)s match employee contributions at a rate of, say, 50 cents on the $1. If you don't put in your $1, you don't get the free 50 cents from your employer." --WSJ

*Folly: Liquidating retirement accounts before age 60. My bad. Stupid move. Enuf said. Learn from my mistakes.

"Cashing out the account before age 59½. That not only takes a big chunk out of your nest egg, but also it triggers income taxes and usually a tax penalty as well." -- WSJ

*Folly: Low deductible on car or home insurance policy. That's one financial mistake that we have not made: Our old van has a very high deductible. Why pay for small-ticket dents that we can pay ourselves?

"There is no point in having low deductibles on your auto and homeowner's policies. If you put a $700 ding in your car, you can probably cover the cost fairly easily out of your own pocket, so there really isn't much point in paying an insurer to shoulder this risk." -- WSJ

Here's the link to the complete article.
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What Impulse Purchases Do You Regret?

We all make impulse purchases that we later regret. You know the drill: Buy now; whine later.

Two Miami Heat basketball players, for example, griped about their bad buys in a Miami Herald article that posed the question: "Have you made any impulse buys you regret?

For example, Miami Heat Forward Udonis Haslem has White Sofa Regrets:

"It's a real nice couch, real expensive couch, but it's white. It's like white leather, so if you wear blue jeans on it, sometimes the blue rubs off on the couch. It's very disappointing that I can't even really sit on it when I spent so much money on it." --Udonis Haslem, Miami Herald Nov. 5

Outcome: He's going to give the White Couch away to someone in his family.


Dwyane Wade --MVP of the 2005 NBA Finals --regrets buying a large gold charm featuring a design built around his Jersey number and his initials: DW3, according to the Miami Herald article.

"At the time I thought it was the hottest design.I wore it a couple of times.Then after a while, I didn't like the design anymore. I didn't even really understand what it was after a while.
I was like: "Man, I've got to get rid of this."

D-Wade.

I regret: The Pink Isaac Mizrahi skirt from Target
Price: $9 (on sale)
Problem: So cute, but it was: Too big, Too pink for me. I looked a crazy ballerina in an oversized tutu.
Solution: I gave it away


I regret: The black skirt from Anthropologie
Price: $10 reduced from $100
Problem: I let a saleswoman tell me that the skirt was supposed to drop so low on my hips. I let myself be deceived because it was a such good deal. Not!
My husband says: Why did you buy a skirt that was too big. (I'm a size 2; the skirt was a size 6/8)
Solution: I returned the skirt.






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