Trading a Gucci Bag for Pills & Other Tough Choices

Scenario: You have a $4,500 real Gucci purse, (a fashion industry job perk). For you, this to-die-for accessory has status appeal and emotional appeal going back to childhood, when your mom gave you her favorite purse, which resembled that Gucci bag.

But what if your Dad needed expensive meds (about $200 for a month's supply of pills), but had no money and no health insurance to cover the tab?

Question: The pharmacist is not into medicine for charity, but she likes your $4,500 purse. Would you give up the purse to finance 15 months of meds for your Pop?

Ugly Betty Solution: Betty trades her Gucci bag (a work bonus and a competitive edge in her image-conscious fashion workplace) for meds and I would do the same.

I'm reading Winning, by Jack Welch, former CEO of General Electric, and in that text, he talks about difficult trade-offs in the home-work equation.

"Work-life balance is a swap--a deal you've made with ourself about what you keep and what you give up."

--Winning by Jack Welch (with Suzy Welch)

We all make difficult trades regarding family, money and personal pursuits.


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The Frugal Duchess Boutique
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Cover Your Assets & Other Money Tips from D-Wade & Miami Heat's Latest Victory

Yes, it's possible to recover from a large deficit. That's one of several courtside lessons that I gained from the Miami Heat's recent victory (107 to 103) over the Seattle SuperSonics.

Here's my list of the day.

1.Create a cushion: Dwyane Wade literally hits the b-ball court with as much padding (on knees, wrists, ribs) as some football players.

Financial Lesson: Create a fiscal cushion to soften the impact of sudden blows or even minor spills. I've been aggressively saving additional income in a savings account in order to boost my emergency funds.

Financial padding is also a good CYA move: Cover-Your-Assets!


2. Defeat Deficits: The Heat rallied from behind to win the game.

Financial Lesson: An aggressive plan on both ends of the court such as earning more (offensive drive) and super defense (saving and slashing costs) can erode deficits.

With that concept in mind, I'm on the defensive mode in my house: shutting off lights, DIY projects and other frugal moves. But I'm also hunting for new sources of income.

3. Pacing is important:

'Wade scored eight of Miami's first 11 points of the second half and then saved his best for the closing minutes.
"He was pacing himself in the first half ... and he was getting everybody shots," Miami coach Ron Rothstein said. "He was just letting the game come to him."' source: --Associate Press

Financial Lesson: Timing is everything and patience pays dividends when you carefully execute your game plan.

4. Distribute the ball: In the first half of the game, D-Wade constantly passed the ball to his teammates. The ball movement created a diversified portfolio of shots.

"Wade patiently distributed to shooters Kapono and Jason Williams in the first half, handing out nine assists. Combined with Payton's 10 points off the bench, the Heat were able to stay close enough for Wade to take control in the final 24 minutes." source: AP

Lesson: Don't be a ball hog. Play generously, but score when you're hot.



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The Frugal Duchess Boutique
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Quick Cash Fixes: Help! I Can't Pay My Bills

Need Cash Quick? The new book: Help! I Can't Pay My Bills by Sally Herigstad, a contributing writer on MSN Money offers several quick fixes for cash leaks. I've outlined/paraphrased her suggestions and added a few comments based on my own experience.

1. Toss out catalogs and weekly sales flyers before reading them.

My comment: I've saved a lot by skipping past the weekly sales flyers from CVS and Walgreen's. I still stock up on sale items, but I limit my regular reading of sales bulletins. I have saved a bundle.

2. Avoid Malls and Movies.

Comment: Don't put someone with OCD into a messy room. Don't give an addict drugs. Don't take a compulsive shopper to the mall. I save a lot by avoiding most of my favorite stores until the once-a-year blow out sales in which merchandise sells at thrift store prices.

3. Skip restaurants and take-out food.

Comment: A $12 pasta dish costs the restaurant about 50 cents to make, including labor. Food industry insiders have shared this tip with me.


4. Carefully consider every purchase of the new gadgets. Ask: Do I really need this and how have I made it so far without this item?

Comment: I'm still feeling annoyed about our $300 camera that now costs $30 new. Or the hot game that drops to one-third or less of the price in just weeks or months.

5. Delete shopping channels from your bookmark list on the Internet. Avoid shopping channels on your cable TV control.

6. Cancel your cable service.

7. Consider DIY service

Comment: I braid my long nappy hair. Savings: about $200 to $300 per month. My husband cuts our boys' hair (saves about $40 a month). I've even learned to give myself a neat french manicure (saves $10 to $20 per week).

8. Up the deductible on your home and car insurance policies.

9. Walk or bike more for errands.

10. Consider ditching the second car: save lots on gas, insurance and maintenance

Comment: One of my best friends shared a car with her husband for years. They saved a fortune

11. Get a second job; sell your stuff; provide services

Comment: I know a woman --an excellent artist-- who offered art classes to young children. Parents were thrilled with this after-school activity and she was able to raise a lot of money.

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The Frugal Duchess Boutique
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My Second-Hand Blond Streak Moment & Other Hidden High Costs of Living

When is a deal not a deal? All bargains are off when the so-called bargain is packed with hidden costs. And be skeptical of hair dressers that offer free blond streaks and other one-time free services.

Consider the refrigerator. So you pay $400 to $1,000 for a new frig. Or maybe you cheap out and keep the old one or buy a used unit that is in excellent shape but not the newest model on the block. But think hard about the hidden costs of some older refrigerators:

Older units, (pre-1993) refrigerators, typically burn $140 a year in electric juice. New models (1993 to 2001) cost only about $60 a year to operate. That's a big savings. I wrote more about electric charges in this post.

That's one example. The book 500 Terrific Ideas for Organizing Everything by Sheree Bykofsky offers a number of deals-that-are-not deals.
Tip 299: Consider dry-cleaning costs when buying so-called sale items suits, slacks, skirts, etc. Calculate maintenance and related costs when considering the purchase of big-ticket items, such as cars.

And beware of hair stylists that offer free blond streaks. Those free blond moments can cost a fortune in the long run. Just ask Nora Ephron, author of "I Feel Bad About My Neck."

Scenario: Upscale hair colorist offers Ephron one-time free highlights.

Results: Ephron (The Heartburn, Harry Loves Sally screenwriter) loves the free highlights and is hooked on spending her own money for the blond strands. She pays a large some every six weeks to make her hair sparkle.

Her quote: "As a result, my hair dying habit now takes at least three hours every six weeks or so...and costs more per year than my first automobile.
--Nora Ephron from "I Feel Bad About My Neck and Other Thoughts On Being a Woman."

Thanks Nora for that second-hand blond moment.


The Frugal Duchess Boutique

Study: Housing Prices Still Untouchable for Paycheck-to Paycheck Workers

A local Miami hospital is providing housing subsidies as a work benefit, according a recent report in the Miami Herald. Why? Even with the steep drop in housing prices, home ownership is an American Nightmare for many.

Here's a report from Reuters.

'U.S. home prices may have dipped over the past year, but many American workers would still struggle to afford a median-priced home in major cities, a new study said on Wednesday.

"American workers are really not gaining ground and they're so far behind in the first place," said Barbara Lipman, research director for the nonprofit Center for Housing Policy, which conducted the study.' Source: Reuters

Here's the full text of the news release from the non-profit group:

HEALTH CARE WORKERS PRICED OUT OF HOMEOWNERSHIP IN MAJORITY OF U.S. METRO AREAS, NEW STUDY FINDS
Joint Announcement:
Center for Housing Policy Releases Disturbing New Housing Data for More Than 200 Metro Areas and 60 Occupations

Homes for Working Families Delivers New Resource Handbook of Proven Solutions to Help Ease the Housing Crisis


Washington, DC (January 10, 2007) – Health care workers are priced out of homeownership in the majority of U.S. Metropolitan areas nationwide, according to a new study of more than 200 Metro areas and 60 occupations released today as part of a joint announcement by the Center for Housing Policy and Homes for Working Families.

Specifically, the groundbreaking Center study Paycheck to Paycheck: Wages and the Cost of Housing in America found that licensed practical nurses would not qualify to purchase the median priced home in an astounding 187 of the 202 Metro areas studied, followed by registered nurses at 115 and physical therapists at 104, while nursing aides and home health aides are priced out of homeownership in all the Metro areas studied.

To address these and other housing challenges that key community workers face, Homes for Working Families has released Increasing the Availability of Affordable Homes: A Handbook of High-Impact State and Local Solutions, which identifies 22 proven high-impact policies that state and local leaders can implement to expand the availability of affordable homes within their jurisdictions.

“With Americans living longer and the baby boomer generation aging, our communities will need more health care workers to meet the growing demand. However, if these workers cannot afford to become homeowners, as this study shows, it will likely become difficult to attract a sufficient workforce,” said Center Chairman Kent Colton, president of K Colton LLC and senior scholar at the Joint Center for Housing Studies of Harvard University. “It is also clear from this study that housing affordability concerns stretch beyond the health care field to a spectrum of other occupations.”

“The lack of affordable homes for America’s working families is nothing short of a crisis, but solutions do exist. We are determined to bring those solutions to the forefront and provide decision-makers with practical policies they can adopt using tools such as our new resource handbook,” said Beverly L. Barnes, executive director of Homes for Working Families.

Paycheck to Paycheck Analyses
Health Care Workers

The Center’s study found that, overall, in the United States, an annual income of $84,957 was needed to qualify to purchase the median priced home of $248,000 in the third quarter of 2006. Yet, during this period the median annual salaries of registered nurses ($58,640), licensed practical nurses ($37,127), nursing aides ($24,745), physical therapists ($62,417) and home health aides ($20,414) all fell short.

Significant rental findings for health care workers in the 210 Metro markets studied reveal that nursing aides cannot afford to rent a typical one-bedroom home in 80 of the Metro areas or a typical two-bedroom home in 147 of the Metro areas studied. Home health aides cannot afford to rent a one-bedroom home in 144 of the Metro areas or a two-bedroom home in 201 of the Metro areas studied.

Additional Community Occupations

As part of its latest Paycheck to Paycheck study, the Center also performed a housing affordability analysis for the community workers on which the popular annual study traditionally focused in the past – elementary school teachers, police officers, nurses (data provided above), retail salespersons and janitors.

The study found that police officers would not qualify to purchase the median priced home in 161 of the 202 Metro areas studied, followed by elementary school teachers at 157, and retail salespersons and janitors who are priced out of homeownership in all the Metro areas studied.

Nationwide, the median annual salaries of elementary school teachers ($47,104), police officers ($45,780), licensed practical nurses ($37,127), retail salespersons ($24,597) and janitors ($23,724) all fell below the $84,957 annual income needed to qualify to purchase the median priced home of $248,000.

On the rental side, significant findings for the 210 Metro markets studied reveal that janitors cannot afford to rent a typical one- bedroom home in 91 of the Metro areas or a two-bedroom home in 177 of the Metro areas studied. For retail salespersons the typical one-bedroom home is unaffordable in 78 of the Metro areas and the typical two-bedroom home is unaffordable in 162 of the Metro areas studied.

New Resource Handbook Solutions
Increasing the Availability of Affordable Homes offers solutions to the growing crisis identified in the Paycheck to Paycheck study by detailing strategies and policies that can be implemented at the state and local levels to begin increasing the availability of homes affordable to working families. The handbook, prepared by the Center’s Executive Director Jeffrey Lubell, is part of Homes for Working Families’ efforts to increase access to homes affordable for working families through meaningful policy change at the local, state and national levels.

Six Strategic Categories and 22 Diverse Policies

The user-friendly policy handbook serves as a practical reference tool for state and local leaders – including elected and appointed officials, employers and other decision-makers – by first identifying six broad strategies for increasing the availability of affordable homes and then detailing 22 diverse policies within those strategic categories.

The six strategic categories are: 1) Expanding the availability of sites for the development of affordable homes; 2) Reducing red tape and other regulatory barriers to affordable homes; 3) Harnessing the power of strong housing markets; 4) Generating additional capital for affordable homes; 5) Preserving and recycling the resources that make homes affordable; and 6) Empowering residents to purchase and retain market-rate homes.

The handbook highlights 22 diverse policy solutions such as: making publicly owned land available for the development of affordable homes, revising zoning laws, leveraging employers’ interest in the creation of affordable homes, and using shared equity mechanisms to create mixed-income communities.

Increasing the Availability of Affordable Homes is among the first tools Homes for Working Families has created to promote state- and local-level solutions that mitigate the affordable housing crisis. Homes for Working Families will make the handbook available to opinion leaders and other advocates on its Web site and will also use the handbook as a “best practices” guide as it focuses on advancing policy changes in some of the nation’s highest-cost housing markets.

About Paycheck to Paycheck
The Paycheck to Paycheck study is provided in online, interactive format. Logon to Paycheck to Paycheck to compare homeownership and rental data for the more than 200 U.S. Metropolitan areas and more than 60 occupations studied.

Acknowledgments
Paycheck to Paycheck is released annually by the Center for Housing Policy, the research affiliate of the National Housing Conference, based on funding from Freddie Mac. The Homes for Working Families publication Increasing the Availability of Affordable Homes: A Handbook of High-Impact State and Local Solutions was developed with funding from the Annie E. Casey Foundation.

Data Sources for Paycheck to Paycheck
Wage information is as of the third quarter 2006 and was provided by salary.com, a private provider of salary information, which maintains a database of salaries by geographic location.

The home price data are from the third quarter 2006 and include new and existing home sales figures provided by the National Association of Home Builders (NAHB). In select cases where the data from NAHB were not available, existing home sale price data from the National Association of Realtors are provided.

Following conventional mortgage underwriting guidelines, the study assumes that not more than 28 percent of household income should be used to pay the mortgage, property taxes and insurance. The study further assumes a downpayment of 10 percent.

>Typical rents in each metropolitan area are based on the 2006 Fair Market Rents, issued by the U.S. Department of Housing and Urban Development. The weighted average 2006 Fair Market Rent nationwide was $821 a month for a two-bedroom home (the comparable national figure for a one bedroom home is unavailable). The Hourly Wage Needed to Afford (found in the Paycheck to Paycheck online tables) is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability.


###


The Center for Housing Policy is the research affiliate of the National Housing Conference (NHC). The Center works to broaden understanding of America's affordable housing challenges and examines the impact of policies and programs developed to address these needs. For more information, please go to www.nhc.org.

Homes for Working Families is a nonprofit, charitable organization dedicated to advancing policy changes that enable more of America’s working families to find safe, good-quality homes they can afford. It focuses on the families of teachers, police officers, retail associates, office workers and others who struggle to find homes they can buy or rent in the communities they support. It pursues its mission at the local, state and national levels. For more details, please go to www.homesforworkingfamilies.org.

The Frugal Duchess Boutique

American Idol's Simon Cowell & the Rescued Pup

In this photo from People* magazine, American Idol's Simon Cowell is pictured holding a rescued pup from a local shelter. Cowell was doing his good-citizen duty at a benefit for rescued animals.


photo credit: Malibu Media

"New Idol contestants take note! Proving his bark is worse than his bite, Simon Cowell lets his guard down Tuesday during an encounter with a furry friend at the opening of The HOPE Animal Rescue Sanctuary on Barbados."--People.com

Pet rescue and pet adoption organizations are a great way to adopt pets. Our pup Scruffy was abandoned with several of his siblings in a bag in front of a supermarket when they were weeks old.

After years of avoiding pet pleas from our kids, we gave in. We adopted Scruffy, who has been a great pet. I have this advice for parents of pet-craving children

1) Adopt a pet. Avoid high-priced new "designer" dogs, which sport new labels for mutt, according to animal experts I have interviewed. Example: puggles (a pug and beagle mix), labadoodles (lab and poodle mix). Call it a mutt and save your money.

Those new-breed mixes can cost $1,000 and more. But to adopt a pet will cost somewhere around $50 to $200, including shots and other vet services. (Adoption fees vary according to the non-profit group.)

2) Reality check: Realize that it's your pet, not the kids. Children lose a bit of interest after the second week. As an adult, you will walk, train, feed and play with the dog most of the time. What's more, you will fall in love with the dog.

3) Even an adopted pet is going to cost you lots of money. (You have no idea. We had no idea.)

4) Say goodbye to your carpets if you get a puppy. We had a new tile floor installed last week.

5) Pets are a great learning/parenting tool. In all fairness, our kids do pitch in to help with Scruffy. Not as much as we imagined, but there is a sense of shared responsibility. We've all become more disciplined.

6) Shop frugally for pet supplies and services. The Mighty Bargain Hunter had a great series on containing pet costs. Here's a piece I wrote about pet supplies from the dollar store.

Here are my other Scruffy stories and another link: Scruffy, Our life coach.


*disclosure: On a contract (free-lance) basis, I periodically work for People. My blogging work is independent of those ties and I regularly write about many news organizations: Us magazine, TMZ.zone, WSJ, NYT and Miami Herald, and others.
See my full disclosure.

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Home, Health & Gas: The Biggest Price Hikes in 2006

Single-family homes, gas, hospital stays and a college education represented some of the worst 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 and the most expensive. In the Jan. 2 issue, WSJ provided price checks on a menu of average consumer services and products based on prices for 2004-2006.


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

My List of the Biggest Price Jumps:

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


Single-Family Home...$195,400..........13%...........................14%


Gas............per gallon........$2.60..........12%........................... 37%


Hospital Stay (one day)...$5,260.........8.5%..........................19%


Big Mac.......................... $2.59...........8%............................13%


College (one year)............$19.014........7%.............................13%



Tax Prep...................$160.................6%.............................14%



Clogged Sink Fix........$226................5%.............................13%


Plane tickets**...........$257...............4.5............................6%

**2,000 miles domestic
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Tagged: I was a Shoe Model & An Ugly Betty: 5 (TMI) Things You Don't Know About Me

A fun game of tag has been going on at www.PFblogs.org. When tagged by another blogger, you are it and it's your turn to offer "5 Things You Don't Know About Me." Thanks to Millionaire Artist (great blog: pretty to look at, wonderful to read) for tagging me.

So Here's My T.M.I. (Too Much Information) List:

1. I was a shoe model. When I first moved to New York in 1984, I worked at a small family-owned (non-fashion) publishing company that paid a salary, that should have come with food stamps and Section 8 housing subsidies.

To pay my rent, I worked at a restaurant with lots of wannabe actresses. One struggling actress told me I had sample feet (size 6) and suggested I become a shoe model. She gave me the name of her agent, who sent me on go-sees.

Ultimately, I worked for a California-based shoe manufacturer, who hired me to model shoes at tradeshows. Good money, but it was weird having shoe buyers from major retailers study and touch my feet.

Then I was saved by Wall Street. Found a job writing about stocks and bonds, which paid a decent salary. I love capitalism!


2. I was married in Central Park. Here's the clip from the New York Times. I wore a second-hand dress and paid for a park permit for Shakespeare's Garden in Central Park. It was a fun, frugal wedding that still cost as much as a downpayment on a home.

3. I ran one year of track (a sprinter) at Georgetown University. I was a total non-athlete. Then I was hit by a broken heart during my junior year. The object of my affection was a runner. I started running to impress him.

Surprise: I was a darn good runner. Fast, really fast. And long after I stopped chasing him, I held onto my running shoes. I got over him, but I still love my Nikes.


4. I am an Ugly Betty. I know where she lives. She's me when I first moved to New York and tried to break into the fashion magazine scene. That sisterhood of fashion magazines plucked out my heart as if I were an overgrown eyebrow. (line borrowed from Ugly Betty.) It was like a sorority that I couldn't join. It was the worst of High School all over again.

I felt like a total geek: a tiny girl (five-foot), in the world where beauty is measured in inches and heels.

Ugly Betty is my vindication and besides, if you look closer, she's really cute.


5. Roland Flint is my favorite poet and the former Poet Laureate for the State of Maryland. He was my favorite professor at Georgetown. I used to email him a lot. He passed away a few years ago.

Here's a snippet of my favorite Roland Flint poem: It's Say It, from his book by that same name.

"Then Thank a mystery that speaks your name
thank every trick in your ear, and listen."
--Roland Flint
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Tagged:
And if she has not been tagged already, I tag Sally (another poet) from Through a Glass Darkly

and I also tag Domestik Goddess.
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An Ode to Hot Water: Weed Killer, Anti-Itch & Frugal Spa Treatment

For a Tuesday Tip, I can't say enough about a humble cup of hot water. It's cheap. It's efficient and it has many uses. From DIY spa treatments to low-tech weed-killing applications, hot water has an assortment of money-saving uses. Here's my own collection of hot water tips, with a caution to be careful.


Candle wax cleanup: I light candles every Friday, just before sundown and cleaning up wax from my candle sticks is very easy with hot water. Silver, crystal and brass candlesticks come clean when I run them under hot water for a few minutes. The soft wax just lifts off. Really easy cleanup.

Anti-Itch treatment: My husband, who is a really outdoorsy camping guy, tells me this works. Dab a bug bite with hot water on a Q-tip. This little treatment, he says, draws out bug juice from the bite and provides itch relief.

Me: You sure this works?
Husband: Yeah. I've tried it.
Me: Well, I'm going to say you said it--Thanks


Weed-killing water: I picked this tip up from an anti-pesticide website that's promoting some tool that uses hot water to kill weeds. Allegedly, a small town somewhere in the U.S. uses this technique:

Here's how it works:

"a steady stream of near-
boiling water that kills weeds by melting the waxy outer coating of
their leaves."

This is the link to the full story.


Spa Treatment: When I used to pay for a series of facials at an upscale beauty spa in Manhattan, I really thought I was saving lots of money. If I purchased four facials (a mini-series,) for about $300, the per-facial cost dropped down a lot. I'm serious. If I skipped four meals, the facials felt free.

But then they steamed my face. With a thick fluffy towel over my head, I sat over a large bowl of herbal tea for like 20 minutes. That was about 30 percent of the treatment. (A big Swedish woman tortured my pores for the rest of the treatment)

And even during the height of my Plastic Diva Days, a little voice in my head whispered: "Hey Girlfriend, you can do this yourself. Save the facial money and go shopping!"

The steam-spa facial was easy to duplicate. Insert gourmet herbal tea bag (value: 10 to 15 cents) into a hot pan of water. Go to the linen closet for a large thick towel. Stand over tea-bag mix (chamomile and mint work great) with covered head. Sweat for 15 minutes, then rinse off glowing face with cool water.

And speaking of tea, a cup of tea (green, mint or other herbal flavors) is very relaxing and just cost pennies at home. Hot water can also be used for home brewed French Press coffee made from ground beans or a cup of instant soup. I skip the MSG, by purchasing small packets of organic miso soup powder at health food stores.

Oh and one final tip from the kitchen crew (my husband): For easy-peel tomatoes, just run the fruit under the water, and the skin melts off with a dull knife.
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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.





The Frugal Duchess Boutique

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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My Weekly Roundup of Favorite Posts

From green goals for 2007 to frugal weight loss plans, last week's posts on www.pfblogs.org offered a lot of valuable insights. Some bloggers posted about their roles as personal finance writers and others provided information about weird questions a financial adviser may ask.

Here are a few of my favorite posts from last week.

Wise Bread offered this thoughtful post about $1,000 an ounce skin creams. Here's the inside story: Low-budget skin-care routines work just as well.

No Credit Needed has a thoughtful post on being a PF Blogger vs. a PF expert. I enjoyed his internal debate about his role as a blogger. He's emotionally honest and entertaining.

All Financial Matters has a super piece on loaded questions (and inappropriate queries) that a financial advisor may ask. JLP offers a good read and a very informative piece.

At Frugal for Life Dawn has a great piece on her green goals for the 2007. Living greener translates into a healthier environment and a greener wallet.

Living on a Budget posted a timely piece on about a frugal online weight loss program and community. Sounds realistic.

Your Money to Keep posted a helpful piece about best home businesses.

Queercents has an insightful piece about living below your means. The article is part of an Investing 101 series.

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I like Ugly Betty: She's Frugal. Her Cheap Tips for a Trust Fund Baby

You don't have to spend a lot to impress work associates and friends. That's the lesson I just learned from Ugly Betty. I watched the show on my computer at ABC.com.

Here's the scenario: Trust-fund baby Dan, son of magazine honcho, is broke. (Totally blew out his trust fund and lives pay-check to pay-check, with expensive tastes). Basically, given his anti-frugal lifestyle, big-ticket costs and busted trust fund, he's in a real bind when Rich dad insists that Dan take out a major Japanese designer -- plus large international posse of fashion posers -- for a meal.


Betty's solution: She recommends that Daniel take the large entourage to a humble White Castle in Jersey.


Reaction: At first the group is put off by this un-glitzy, low-ticket eatery. Where's the A-list crowd? Where's the doorman and the velvet rope and where are the paparazzi?

Re-framing moment: Betty pitches White Castle as a tribute to the Japanese designer's simplified designs and choice of color: Lot's of white walls and lots of brown food.

What I learned from Ugly Betty:

1. Be creative. I can save lots of money by avoiding flavor-of-the month hot spots.

2. Go to Jersey: It's cheaper over the bridge or off the popular road. Location is everything, even in Miami. A cup of gourmet coffee at trendy South Beach cafe shops: $3 to $5. Cafe con leche at an out of the way Cuban shop: 50 cents to $1.50.

3. It's all in the frame: If you pitch White Castle (or any other low-cost restaurant) as a cheap source of food, you just look cheap. But if you frame White Castle as a study on classic designs, simplified cuisine and pop culture, the place sparks interest.

4. Don't make assumptions. I don't eat at White Castle because I keep Kosher. But I've had similar Ugly Betty moments. As a business reporter, I've treated mega-wealthy bankers and investment bankers to humble, but tasty meals at some of my favorite Kosher eateries. And we've had a great time! They loved it and I learned not to make assumptions about what people will like.

5. Look for free connections. We don't have cable or standard television, but through the Internet, we watch select television and cable-channel shows for free. I wrote about that strategy in this post.

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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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Driving for Dollars: $400/Month for Making Your Car a Billboard

The advertising world wants to rent space on your car. That's the word from the latest issue of Woman's World, a weekly magazine.

There are companies that are willing to pay you for attaching advertisements to your car. Drivers can earn up to $400 a month from advertising income, which could cover your car payment and then some.


Here are the companies that are looking for car space:

www.ad-wraps.com or ww.adsmartoutdoor.com.

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Zapped by ATM Balance Check: $2 fee for 5-Cent Service. Bankrate.com Answers

My husband went to an area supermarket, where the bank machines are out of our ATM network and therefore, off limits for us. And like a good consumer, he skipped the cash-spitting services of this foreign ATM.

But what about a simple balance check? Insert card, make request and out spits a receipt with our balance and a $2 or $3 fee for the out-of-network balance check.

He's stunned and I'm surprised and embarrassed. As a reporter, I've written about banks and their double-dipping ATM fees. How did this one slip past me?

For advice, I turned to an analyst at Bankrate.com. Yesterday, I interviewed Greg McBride, CFA Senior Financial Analyst at Bankrate.com, a publication of Bankrate, Inc.

Here's my record of our conversation:

Me: How did we get zapped on that ATM transaction?
McBride: You didn't actually take the money out. It was just a balance inquiry.


Me: Yeah! Is that a new fee?
McBride: I first heard about it about two years ago.[He went on to say that the fee is one of the charges that flies under the radar.] It surprises people because they don't actually get any money. But there's a fee because the two ATMs have to link up and make a connection just as if you were making a withdrawal. It's the same function.

Me: But $2 for that? I've written stories about bank fees and the real cost of electronic service is like pennies.
McBride: No doubt about that. ATM Fees are a huge profit center for banks and the fees have consistently gone up over the years.

Me: For sure. I don't remember the exact figures, but I remember that each ATM transaction cost banks pennies to execute.I remember industry or regulatory reports that quoted cost figures of 5 cents per transaction.
McBride: It's a small figure and it doesn't come close to the fees that the consumer pays.







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Ripping the Rug: Money Tips from Pet Stains & Hurricanes

Our rug has been soaked by hurricanes, a cute dog named Scruffy and a broken water heater. I've lost track of how many times our carpet has been professionally dried, cleaned and hammered back into place.

Yesterday, the rug was finally lifted, torn out and cut up. The tile man will be here today through Friday, G-d willing. But beyond new squares of clean, cool tiles, I've learned a lot of frugal and financial lessons from our rug-lifting experience.


1. Be willing to start over: It was hard to let go of the rug, which buffered sound and was great for gymnastics, yoga and break dancing.

Likewise, due to assorted comforts, I've held onto jobs, clothing, banks and even unsuitable investments longer than I should have. But often it pays to rip up a rug, a portfolio, a contract and just start over.

2. Be realistic. Know your limitations. I live in Florida. Hurricane Season is a fact of life. At least twice a year, strong winds and rain soak my living room. Given that scenario, a wall-to-wall carpet is insane.

Likewise, I have certain financial limitations. I am an addictive shopper. I am disorganized. Armed with that reality check, I save more of my pay check because I avoid the financial squalls of Hurricane Sharon ripping through Art Deco malls and cafes.

3. Call in the professionals. We should have hired a professional trainer to housebreak our dog, who is now a year old and trained. A professional puppy training class would have been money well-spent and left us with fewer carpet stains.

Note to self: hire a professional accountant or CPA. I have a head for business and numbers, but some financial computations ---like taxes -- are beyond my grasp. I get so ADD about forms!

4. Be patient. Be persistent. Once, we made the decision to rip up our ugly, stained and storm-damaged carpet, it seemed to take forever to get the rug removal crew and the tile pro on the scene. We accomplished our goal with heavy doses of patience and persistence. Lots of phone calls; lots of reminders.

Ditto for my own efforts to rip up the unsightly portions of my financial profile. Lots of calls; lots of reminders -- Like this mental note.






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Stock Pickin' Soul Mates & Other WSJ Links I Like

Financial hook-ups in chat rooms and other new-school stock-picking strategies; libraries that pander to cheapskates with "low" tastes; the outlook for real estate in 2007 -- Those are a few of the topics that caught my eye in today's Wall Street Journal.


Find your financial soul mate in Cyberspace.

"A new generation of Web sites has cropped up in recent months designed to help investors share ideas online with others who have similar investment styles, such as which Asian stocks or technology issues offer the best value.

Unlike the Internet chat rooms that were popular in the late 1990s, which allowed any anonymous user to post opinions, the latest sites seek to maintain their credibility by rating participants. Users are assigned a score based largely on the performance of their stock picks and the accuracy of their forecasts." source: WSJ

Frugal Duchess comment: Interesting, but I'd still be on guard for penny stock touts, market manipulators and boiler room scam artists.

Pushy Sales People in Cyberspace.

"It turns out that salespeople can be as annoying and unhelpful online as they are in the real world." --WSJ

Frugal Duchess retort: Ask to speak to a sales manager. Also call your credit/debit/charge card company and find out what kind of buyer protection you have. American Express and other companies can be very aggressive about resolving disputes in your favor.

Real Estate forecast for 2007

"Real-estate developers and investors are expected to be a little more cautious in 2007.

Among their reasons for concern: whether the single-family housing market has bottomed out; and whether rents will continue to go up for apartments, offices and other income-generating properties" --WSJ

Frugal Duchess: The real estate vulture funds are already circling in Miami.

Classic books vs Pop Ficition: Books battle for public shelf space.

"Should Libraries' Target Audience Be
Cheapskates With Mass-Market Tastes?" --WSJ

Frugal Duchess: I'm on shaky ground here. My reading tastes all over the map. I read everything from Jane Austen to Judith Krantz, with a lot of Toni Morrison, fantasy, adventure and sci-fi in the mix. I do, however, think libraries should maintain space for classics.


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Stuff You Wished You Asked Before Getting Married

1. What are you not prepared to give up for marriage? 2. What happens if one spouse gets a job in another city? 3. How are we going to split up housework? 4. Do my friends and close associates annoy you?

Those are a few of the questions many people wish they had asked before getting married, according to this article in the New York Times. The questions touch on financial, personal and family issues.

Here's a sample:

1) Have we discussed whether or not to have children, and if the answer is yes, who is going to be the primary care giver?

2) Do we have a clear idea of each other’s financial obligations and goals, and do our ideas about spending and saving mesh?

3) Have we discussed our expectations for how the household will be maintained, and are we in agreement on who will manage the chores?

4) Have we fully disclosed our health histories, both physical and mental?

5) Is my partner affectionate to the degree that I expect? --Source: NYT

It's an excellent list and a good read. To that list I would add:


1. Do you believe in lying to children about the Tooth Fairy? Do you believe in paying market rates for lost teeth?

2. What's your idea of a vacation?


3. Do you like camping? What do you consider camping?

example: My husband likes the idea of a sleeping bag in the woods.
My version of camping is a cheap motel in Orlando.
Compromise: We've gone camping in rented, rustic cabins.

4. How do you save money? Do you save money?


5. What's your idea of frugal living? What's your idea of luxury?


6. How often do you go shopping? Do you like sales?


7. What's your approach to technology? Do you have to have the latest gadget?


8. What's more important: personal/creative satisfaction or job security and health benefits? Define financial security.


9.What's your opinion on changing baby's diapers? What kind of division of labor? How often are you willing to change messy diapers?

10. Do you need to live in a clean house? How do you feel about a clean house that is disorganized? Are you willing to pay for a cleaning service?

11. Do you need to live in a house? Do you like apartment/condo living? Are you willing to clean up a lawn?

12. Do you have a talent for grocery shopping? Do you like shopping in bulk? Define bulk shopping.

13. How often do you eat out? What do you consider food?

14. Do you like pets? Define pets: fish? hamster? little dog? large lab? pony?

15. Were you spoiled as a child? Do you plan to spoil your children? Define your idea of a spoiled brat?

In August, I wrote a post featuring tips for saving a mixed marriage: a saver & a spender.

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Recycled Fashion with Supermodel Kate Moss

Supermodel and style icon Kate Moss is always well turned out. I love her style: understated and very elegant. Between designer freebies, clothes loans, fashion industry perks and her own shopping sprees, Moss has a seemingly unlimited supply of clothes.

Therefore, I enjoyed seeing Moss featured in the "I Really Love My..." section of People magazine, in which Paparazzi snapped Moss recently wearing the same tunic shirt in different settings. It was quite a fashion statement: Equal doses of creativity, frugality and attitude go a long way in the fashion recycling business.

"NAVY TUNIC

The ever-stylish Kate Moss gets the most out of her velvet bow-trimmed navy tunic by pairing it with shorts and skinny pants while out and about in N.Y.C. and London.
source: People Online"

What's more, People magazine provides a link to a store, Forever21.com which features a $16 look-a-like version of the shirt worn by Moss. Honestly, the look-a-like is not as cute, but it works.

I have a little black YSL Bolero jacket -- a hand-me down from a wealthy friend-- that I wear everywhere from Miami Heat games to black-tie parties. Of course, I'm no Kate Moss, but my little multi-tasking black jacket serves me well.

In fact, I'm wearing that designer jacket in the head shot on my blog.


Here are links to a few of my favorite frugal fashion sites or blogs.

The Cheap Chica

Diva on a Dollar

The Budget Fashionista

Frugal Fashionista


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