Alpha Consumer
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How to Start Saving More Today
Continue reading… 3 CommentsReady to celebrate America Saves Week? Dozens of organizations have joined forces to encourage Americans to start saving more money this week.
While government statistics show that people have been saving more over the last several months, most people are still worried about their finances. The First Command Financial Behaviors Index February survey found that 68 percent of people had lost money in their retirement accounts. About 7 in 10 people said they didn't feel confident the government stimulus bill would help them. And half of the respondents didn't think it would stabilize the U.S. economy, either.
Many consumers are taking matters into their own hands by cutting costs. According to the First Command Financial Behaviors Index, 58 percent of households plan to reduce expenses, from clothing purchases to leisure activities, for at least a year. -
Why Credit Scores Matter on Job Applications
Continue reading… 21 CommentsHow much a credit score affects hiring decisions has been a subject of some debate. After all, just because someone has trouble paying off his credit card each month doesn't necessarily mean he'll be a bad employee. (Of course, for certain jobs, such as the banking sector or other work handling money, it makes more sense to check out someone's financial habits.)
In a survey of human resource managers, TransUnion's TrueCredit.com recently found that while half of respondents said they don't check candidates' credit scores, 13 percent did, and used them when deciding whether or not to hire the person. One in ten managers said they have declined to offer someone a job because of a poor credit score. Also, 16 percent of the human resources managers said that because of the recession, they expect credit scores to become more important in the hiring process.
Meanwhile, the survey also found that one in four people are worried about losing their job this year. Given the potential importance of credit scores in finding a new one, anyone who's worried might want to pay extra attention to paying their bills each month. -
Video: Cooking Tips from the Great Depression
Continue reading… 6 CommentsThe newest YouTube star is 91-year-old Clara, who gives cooking demonstrations based on the recipes her families used during the Great Depression. She jokes that every night her family ate a different version of pasta -- pasta with peas, pasta with garlic, pasta with beans. She even shows how to turn the heat off and let the pasta cook in the heat of the water to save energy. (Thanks to Baking and Books for the link.) Below, watch Clara make pasta and peas:
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How to Get a Deal on the Obamas' Dog Choice
Continue reading… 10 CommentsAccording to People magazine, the Obamas have made their choice: They will soon adopt a rescue Portuguese water dog, which typically go for upwards of $1,400. That a pretty pricey puppy.
But if the Obamas' decision has you yearning for your own Portuguese pet, there are ways to save. First, consider following the Obamas' example and adopting a rescue dog. Rescue dogs, which are typically older, adult animals living in shelters, are usually placed in homes at no charge other than the cost of keeping them healthy and safe for the rest of their lives. (Note: There is sometimes a fee involved, but this cost is much less than the price of purchasing a newborn puppy.)
If you can't find what you're looking for at the local shelter, websites such as Craigslist.com often list pets that are up for adoption at lower than normal prices or no cost at all. That way, you know you're giving a home to an animal that needs one. -
How (and Why) To Join a Money Club
Continue reading… 0 CommentsMoney groups are essentially like book clubs, but instead of discussing Jane Austen plot twists, the focus is on the stock market, 401(k)s, and paying off debt. Women -- and some men -- get together to share financial goals and (hopefully) make them come true.
M.P. Dunleavey, author of Money Can Buy Happiness, will soon be leading a money group in New York with her partner, financial planner Galia Gichon. I recently E-mailed with her about how the groups work, and why the recession seems to be inspiring more women to form them. Excerpts:
What are the benefits of working in a group versus on your own? -
Do I Have to Repay My Student Loans?
Continue reading… 14 CommentsDear Alpha Consumer,
I went to truck driving school two years ago with the promise that I could make $50,000 a year. I took out $9,200 loans to pay for the three-week course. But now, I don't see how I will make $50,000 a year. I was hired to drive for 31 cents a mile, which is the going rate for beginning drivers.
It's obvious I won't be able to make $50,000 a year this way. Did I get fooled into taking out these loans? Do I have the right to a refund if I can't earn $50,000 a year? -
Video: Life on $7 a Day
Continue reading… 6 CommentsI recently spent the morning with Kate Vickers Deriso, author of the Bountiful Living Wellness blog, to talk about how she saves money on food. She grows her own sprouts, brews her own tea, cooks in bulk, and freezes leftovers. (If you're looking for that tempting lentil and rice recipe, here it is.) WUSA videotaped her techniques and broadcast the segment last night:
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Partying (Or Not) Like It's 1997
Continue reading… 4 CommentsAfter seeing today's news that stocks fell to their lowest levels since 1997, I felt depressed. How will I ever save for retirement when half of my investments have already evaporated? Then I remembered that I recently rebalanced my 401(k) and felt mildly relieved. Instead of being 100 percent in stocks, an extremely aggressive stance, I put around one-quarter in safer investments, including bonds. And finally, I've decided to forget about the whole thing, go home, make dinner, and watch 24 while avoiding any further discussion of my retirement portfolio.
What about you -- do you have any especially handy denial techniques that you plan to implement tonight? -
Oscar Fashion: Sign of the Times?
Continue reading… 2 CommentsPerhaps it's just a coincidence, but the verdicts on the Oscar gowns seem to reflect our recessionary times.
The Huffington Post gushes over the "simplicity" that "stole the show," and praises the "minimalist approach to jewelry this year," such as Angelina Jolie's earrings (she focused on a few big pieces, although it's hard to think of those giant emeralds as frugal) and Beyonce's lack of jewelry altogether.
Meanwhile, Slate called out Miley Cyrus for her decadent dress that, according to the magazine, "looked like a tiered cake with those silver beaded things people use to decorate Christmas cookies." Also on the hit list: Sarah Jessica Parker and Penelope Cruz for their sparkly princess dresses. Perhaps the critics just thought the look was over-the-top at time when people are losing their jobs and 401(k)s? -
Economics 101 Meets Buddhism
Continue reading… 3 CommentsChances are, your college economics course didn't involve much meditation. But after completing a fellowship at the Center for Contemplative Mind in Society, Amherst College economics professor Daniel Barbezat decided to introduce meditation, along with other Buddhist practices, into his course on "consumption and the pursuit of happiness."
He encourages students to reflect on what produces feelings of satisfaction and happiness so they can better interpret the numerous studies on the subject. I recently spoke with Barbezat about his approach. Excerpts:
How did you get the idea for this course?
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Advice for College Seniors Looking for Jobs
Continue reading… 4 CommentsDear Alpha Consumer,
Do you have any suggestions for job hunting in this economy, particularly in fields which have been subject to budget cuts and hiring freezes? I've already made a list of which states I'm eligible to become a Licensed Mental Health Counselor/Licensed Professional Counselor, and I've eliminated any desire for a job in a specific geographic location. I started sending out resumes in the past couple weeks so that I have a better chance of finding employment by the time I graduate at the end of May, but so far the only response I've received is "Unfortunately, we have decided to not fill any positions at this time" and the federal government response that I don't have enough points in the system.
There's no way to sugarcoat this -- current graduating seniors are in for a rough year. A recent Wall Street Journal article pointed out that people who graduate during a recession may be worse off for years to come. Part of the problem is that they take lower-paying jobs when they graduate, and then tend to stay in them, even after the economy recovers.
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Poll: Is the Recession Good or Bad?
Continue reading… 1 CommentWhether or not the recession is a good or bad thing might seem obvious. Lost jobs, fewer prospects, foreclosures -- it all adds up to a miserable time. But in today's Washington Post, Michael Gerson argues that the recession contains "hidden virtues," including a return to family bonding and possibly better health, as people struggle to control what they can.
The New York Times' David Brooks said just the opposite back in November. He wrote that while it's tempting to see economic downturns as "an occasion for moral revival," to do so would be a mistake. Because recessions "are also about fear and diminished expectations. The cultural consequences of recessions are rarely uplifting."
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Audio: 5 Ways to Be Happy in a Recession
Continue reading… 1 CommentOver the weekend, I spoke with WTOP in Washington about ways to be happy in a recession. The tips, which are all backed up by research, include cultivating a sense of gratitude, investing in relationships, and taking care of yourself.
LISTEN NOW: 5 Ways to Be Happy in a Recession
Subscribe to Personal Finance With Kimberly Palmer
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Paying With Time and Talent, Not Money
Continue reading… 1 CommentWant a new coat of paint on your bedroom? A new design for your website? Or perhaps some editing help? You can have it all -- for free.
Well, not exactly for free, but it won't cost you any money. Instead, you can exchange the skills that you have for the ones that you don't. The recession, along with websites that make such trades easy, are bringing the old-fashioned practice of bartering back into style.
Trading services is a great way to take advantage of the bad economy, says Kimberly Seals-Allers, author of The Mocha Manual to Turning Your Passion Into Profit and creator of MochaManual.com. "You'll have a large number of highly qualified individuals [offering their services] who you couldn't have afforded before. It's an opportunity to find talent and negotiate things." For example, she adds, "I'll edit someone's website if they'll solve my computer problems. I've offered myself as a writing coach." -
The Future of the Stock Market
Continue reading… 2 CommentsDoes anyone still believe that the stock market will once again return an average of 10 percent a year, as it did in the 20th century?
I asked Jim Lund, a Minneapolis-based senior financial advisor for Ameriprise Financial, for his take on the future of returns. He said:It's anybody's guess. But I do base my future decisions on historical information. I do believe we will revert to the mean... Chances are, yes, history will repeat itself. When that will occur is another question. It's never a straight line. We won't see 10 percent a year for the next 10, 20, 30, 40 years. We might say 5 or 10 percent this year, 20 percent next year, then negative five, plus 10. Even if it's closer to [averaging] 8, somewhere in that range makes me feel comfortable. We use average rates of 8 percent or less for long-term scenarios. We don't want to make unrealistic expectations.
For more, read What If Stocks Never Go Up Again?
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What the Stimulus Bill Will Do For You
Continue reading… 25 CommentsAs President Obama signs the $787 billion stimulus package into law today, you might be wondering: What's in it for me? Well, it turns out there are a few programs that could end up changing your spending habits. Here are four ways the bill could affect you:
- You might keep more of your money. Most people will receive a tax credit of $400 (or $800 for married couples). The credit begins phasing out for anyone earning over $75,000 ($150,000 for couples).
- You might buy a home. Anyone in the market for their first home this year is eligible to receive an $8,000 tax credit. Exceptions: Anyone earning over $75,000 ($150,000 for married couples).
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Gwyneth Paltrow's Money-Saving Recipe
Continue reading… 6 CommentsOn her website GOOP, Gwyneth Paltrow shares her thoughts and advice on everything from motherhood to losing weight to feeling happy. She recently shared her recipes for Sunday night dinners, which feature garlic bread, spaghetti, peas and meatballs. If you have a well-stocked pantry, this entire meal could cost under $20.
Here's her garlic bread recipe; for the rest of the dinner, check out her newsletter.
Ingredients: 1/2 stick butter at room temperature; 5 cloves garlic pushed through a press; 1 tablespoon finely chopped parsley, 1/4 teaspoon freshly ground pepper, 1 baguette, 1/2 cup finely grated parmesan.
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How to Dodge the Debt Collector
Continue reading… 1 CommentIn Confessions of a Shopaholic, Isla Fisher's character is stalked by a debt collector. She does everything she can to throw him off her scent, including lying about deaths in the family to hiding from his calls. But if you've got a real-life debt collector on your tail, that's probably not the best approach.
Gerri Detweiler, author of Debt Collection Answers: How to Use Debt Collection Law to Protect Your Rights, recommends these tips instead:- Never admit that you owe the debt or agree to pay the debt without first getting written proof that you actually owe it.
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Podcast: The Secret Currency of Love
Continue reading… 2 CommentsOn this week's Alpha Consumer Podcast, I interviewed Hilary Black, editor of The Secret Currency of Love: The Unabashed Truth About Women, Money, and Relationships. She explains why money plays such a big role in relationships as well as how she got the contributors to be so honest and forthcoming about such a taboo topic. I also asked her why a similar book written by men would probably be somewhat less interesting. You can also pick up the Alpha Consumer Tip of the Week on why it's so hard to save money.
LISTEN NOW: The Secret Currency of Love
Subscribe to Personal Finance With Kimberly Palmer
- Read my review of The Secret Currency of Love here.
- Join the discussion: How do you think men and women are different when it comes to money?
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5 Reasons to See Confessions of a Shopaholic
Continue reading… 3 CommentsIn Confessions of a Shopaholic, Isla Fisher plays a financial journalist who is desperately addicted to shopping. Here are five reasons to watch:
5) It reminds you how the financial crisis started. Filmed before the fall of 2008, Isla Fisher’s character spends with abandon, racking up thousands of dollars of debt on her credit card.
4) You get to see the inside of a Shopaholics Anonymous meeting – and it’s as depressing as you’d think it would be.
