by Kathy Pape – August 30, 2010

When to Fix or Buy New Wheels

My husband, who’s originally from Minnesota, is constantly amazed at how much people out West spend on their cars.  It’s impossible for him to understand spending $350 a month on a fancy car payment when he’s so used to seeing nice cars getting completely trashed by harsh winters.  For him, reliability and durability is all that matters in a car.  As long as his car handles well, he doesn’t care what it looks like. In fact, our own SUV is pretty dirty thanks to a pair of very active little boys, but it was running just fine until a couple weeks ago when our mechanic delivered the grim news that the transmission was about to blow.  Suddenly my husband and I were forced to make a difficult decision.  Should we replace the transmission for $4,000 or buy another car?

Even though our old Saturn VUE clocked in at just over 100,000 miles and needed a few other repairs as well, it was still a tough decision – could we really afford a new car?  While our transmission hung on by a thread, we did our homework and debated what to do for weeks. Here’s what we learned about when to fix or dump your car, and how to get the most mileage out of your vehicle!

Stretch Your Dollar With Quality

How does your vehicle rate?  It was an easy choice for my dad to fix his car because he drove a Lexus, which is rated extremely reliable by Consumer Reports.  Odds are the transmission would be the only major repair.  My husband and I were dealing with a Saturn, which does not rate nearly as well.  We learned the hard way how important it is to do your research before buying car.  Don’t walk into the dealer and buy what looks good or what you think is a good deal.  Buy what will last or it will end up costing you a lot of money in the long run.  The better the car rates according to Consumer Reports, the fewer repairs you will face in the long run.  It will also have better resale value.

Invest In Repairs

Typically, it is substantially more cost effective to drive the same car for as long as possible and make repairs rather than investing in a new car every few years. This is something my dad swears by!   He always fixes his cars rather than buying a new one, and believes that purchasing a quality used car is the way to go!  My dad has never purchased a brand new car and just retired his 1993 Lexus at 245,000 miles.  He had to make a few large repairs along the way (including the transmission), but those repairs only cost him about $500 a year over the time he owned the car – which is a gigantic long term savings compared to if he had bought a brand new car in the first place or replaced this car sooner!

Get the Most Out of Your Car

How long can a car really last?  Scott Chazdon is a mechanic in Wyoming who is very passionate about this subject.  He has a website www.mmauto.net that helps consumers become more informed about their cars.  Scott SWEARS to Fab & Fru that a car can last ONE MILLION MILES if you do repairs, keep the mechanical parts clean and prevent them from shifting and touching each other.  In fact, he sold a van last year with 1,044,000 miles on it and it was still running (can you imagine the deal on that)!

After 22 years in the business he says the ONLY reason the engine or transmission fails is lack of proper maintenance.  Lubrication and changing the fluids is important, but so is partnering with a good, caring mechanic for inspections and maintenance routines.  This way you can budget for small repairs along the way rather than ignoring the situation and getting hit with a bigger bill in the future.  Scott backs his beliefs by guaranteeing his customers’ cars FOREVER if they follow his recommended maintenance.  Here is some of his advice to follow!

Why Quality & Service Count

We live in a bottom line society.  When most of us go shopping, we are focused on finding the best deal and spending as little as possible at the moment of purchase without investigating the value of a slightly more expensive item.  Of course being treated well is nice, but if you’re on a budget- it’s just not something you can afford, right?  However, the best deals are not always the cheapest ones, and sometimes paying a little bit more upfront for quality and customer service will totally pay off in the long run. Check out these Fab & Fru deals- in disguise -that may seem like a luxury you don’t want to pay for on the surface, but actually just may be the smarter buy at the end of the day!

The Apple of My Eye!

Have you ever been to an Apple store?  It’s truly an impressive experience- free classes, a screening room, and don’t forget the Genius Bar!  NO, as much as I’d like to be, I am not a spokesperson for Apple!  However, I am a very satisfied Mac user, and here is why….

For months, the battery life of my two-year old laptop has totaled about 2-5 minutes of functionality before needing to be recharged. Finally, last week, in my preparation for my working vacation, I got it together to take my computer in for repair.  Sounds costly, doesn’t it?  Not when you have a genius at your fingertips!

Apple offers an amazing service for its customers.  You can call up or make an appointment online to go and get a free one on one diagnostic from a Mac specialist at any Apple store around the country.  So I did.  I showed for my appointment at the busy Soho store, and in a few minutes I was up at the counter with my assigned genius!

I told him that I needed a new battery, but he wanted to run a full diagnostic to make sure that nothing else was wrong with the computer.  While he ran the tests, he gave me a bunch of friendly advice on how to use tools on my computer that I didn’t even know existed.  A few minutes later, he determined that all I needed was a new battery.  Because I had an extended warranty on the machine, he went ahead and replaced my battery on the spot for free.  If I didn’t have Apple Care, I would have had to pay for the new battery, but not the service!

Now, the geniuses at the Apple Store cannot fix all of your technical problems, but their free service is an excellent resource and the first place any Apple user should go if they’re having an issue with any of the company’s products.  Although many people think that PC’s are much cheaper than Apples, after this experience, I respectfully disagree.  Not only do I believe I paid for a computer that I know will last for years, the service that Apple provides its customers has proven to be worth its weight in gold!

The Mani Pedi Experience!

If you want to get your nails done on the cheap in New York City, you can walk into a nail salon at almost every corner without an appointment.  However, as an experienced pedicure enthusiast, I believe it totally pays to spend the ten to fifteen dollars more for a higher quality job, and here’s why.

Whenever I get a cheap pedicure, I spend fifteen unrelaxing minutes in the chair wondering how unsanitary the facility is and how no one really cares if I am enjoying my experience-and I’m not.  Then a week later my pedicure looks like crap, and I realize that I could have filed and painted my toenails myself!

However, for $10 more, I can go to the place three blocks from my apartment, get a great foot massage and a pedicure that lasts 3-4 weeks.   If you’re somebody that gets your nails done once a week, considering paying more for a better service, you will save time and money by cutting your nail visits down by more than half!

contributed by LearnVest

Whether you’re getting ready to move to a new place or just contemplating it for the distant future, listen up!

Imagine: You take a tour of your dream apartment. Your landlord is a kind, bumbling man who hands you a standard, generic lease, so you’re pretty sure that he’s not trying to pull anything. Spurred on by the rush to complete the deal, you sign. Later, you’re confronted with charges that the landlord never mentioned. The lease also contains mistakes–he told you that he would pay for heat and water, but the generic lease says that the onus is on you. Your landlord might seem like a good guy, but, if you’ve already signed, he has the right to charge you for those utilities.

Consider this a cheat sheet to help you understand your lease, look for tricks in all the right places, and save thousands of dollars in potential ruination:

1. Check The Big Three.

Make sure the dates of the lease, your rent amount, and your security deposit amount are all correct. Mistakes in these areas are common and can cause you big financial headaches if you sign without catching them.

2. Verify The Penalties For Early Termination.

Will you forfeit your security deposit? Will you be liable for rent for the months remaining on the lease? Even if you plan to stay for the full lease term, try to negotiate favorable early termination terms before you sign. You never know what the future holds, so it’s best to lower your liability.

3. Know When And How You Will Get Your Security Deposit Back.

Some landlords are notorious for keeping this deposit, citing damage when it’s just normal wear and tear. Make sure your lease specifies the conditions under which you will get your deposit back.

Click here for tips 4-6!

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by Stephanie Berenbaum – June 11, 2010

Snow Blowers In Summer?

An old friend of mine used to always talk about how he would save tons of money by doing things like buying a new snow blower in summer or an air conditioner in the winter.  I used to think he was kind of crazy planning so far in advance, but now I see how wise and  Fab & Fru he really was!   Of course, buying off-season takes a little extra foresight and initiative, but when you find out how much you can save on bigger ticket items that you actually NEED- it’s totally worth thinking outside the season!

We polled some of our penny-pinching pals to see what their top winter items were to shop for in summer.  So, even though you might be laying poolside, here’s where you can score the best WINTER deals and SAVE up to 40%-75%!

1) Snow blowers, snow shovels, other ice and snow equipment – They’re trying desperately to get rid of all last year’s stragglers and the savings can be HUGE!

2) Warm clothing and winter boots – There is LOTS of extra inventory online! Who cares if its last years model?  In addition to the basics, we found tons of luxury goods (cashmere sweaters, Burberry leather boots) online for a fraction of what they normally cost!

3) Sporting Goods – Check out buyoffseason.com, a whole site devoted to off-season sporting goods!  Not only can you buy your skates & ski stuff now, they have a fantastic selection of apparel including stylish coats and hats.  They even have a special order shopper who can help you if you don’t see exactly the off-season score you are looking for!

4) Heaters – It may be close to impossible to think about buying any kind of heater ( whether it be a space heater or a new furnace) while you’re sweating just walking to your car, but NOW is the time!  Help your local supplier clear out old inventory and get some serious savings!

5) Travel – Booking off-season travel is a great way to see the world for less.  For example, a while back we interviewed Gregor Gomory from Global Basecamps who advises that if you choose off-season travel wisely you can save big and still enjoy your stay to the max.  Tip: he advises visiting Costa Rica in June – sure it is the rainy season- but the secret is- it typically only really rains for an hour or two in the morning and then is beautiful the rest of the day!

We figured our friends aren’t the only ones out there who buy off-season and save…. we want to hear from YOU! What are your fave winter picks to stock up on now?

Insure that You’re Covered

Do you RENT the apartment, house or condo that you live in?  Do you have renter’s insurance, or do you feel like ‘your stuff’ isn’t worth enough to insure?  Well, we wanted to know if renters insurance was really worth it for everybody or only those with A LOT to lose… Turns out, if you don’t already have it, it’s time to GET IT- and here’s why!

Why Should You Have Renters Insurance

Many renters don’t realize that while their landlord or the condo association they rent from has insurance, those policies only cover damages to the outside of the building, and they DO NOT COVER ANY of your personal belongings.  If you rent, you face the same risks as a homeowner if disaster strikes, if you are robbed or if someone is hurt in an accident inside your home and decides to sue.

Renters insurance is a relatively inexpensive way to protect yourself from major expenses and loss in case of fire damage, storms, accidents, theft at home and while traveling, and other catastrophes.  For as little as a few hundred dollars a year, the proper insurance will cover the cost of your belongings as well as ‘additional living expenses’ if you need to be temporarily relocated due to unlivable living conditions. (Keep in mind, insurance companies are notoriously slow, and you may have to front some immediate costs before seeing your full reimbursement)…

What Renters Insurance Covers

According to insure.com standard policies cover…

• Fire or lightning
• Windstorm or hail
• Explosion
• Riot or civil commotion
• Damage caused by aircraft
• Damage caused by vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Volcanic eruption
• Falling objects
• Weight of ice, snow, or sleet
• Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance
• Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system
• Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance
• Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)

What Standard Policies Don’t Cover

Damage from earthquakes and flooding are not covered under standard policies and require buying a separate rider.  If you live in a coastal region that is prone to hurricanes, you may also consider purchasing a separate policy for wind damage.

If you have expensive jewelry, artwork, antiques or electronic equipment, you may consider getting additional coverage for these items to ensure that they are fully covered for their entire value.

Make Sure You Get Replacement Coverage!

When you are shopping for an insurance policy, MAKE SURE that you purchase a policy that offers REPLACEMENT COST COVERAGE.  Many companies’ default policies are ACV- Actual Cash Value.  DO NOT BUY a ACV policy- even if it’s cheaper.

Actual cash value means, if you paid $1,000 for a computer five years ago, and it gets stolen today, the insurance company has the right to say that your computer has depreciated in value and is no longer worth $1,000!  The insurance company will pay only for the current value of the item (minus the deductible), but you still need to buy a new $1,000 computer…

Although replacement cost coverage costs slightly more, it is TOTALLY worth it because it pays for the cost of replacing the item- not just what the old item was worth!

Is the Clarisonic Facial Brush Worth the Splurge?

Here at Fab & Fru we realize that quality can definitely be worth paying up for!  We just don’t want to spend our hard earned dollars on products that aren’t worth it.  Every time I turn on the TV, open a magazine or one of the ten zillion catalogs that I am sent, I admit it – I am tempted.  Most items I forget about within a few minutes, but sometimes one sticks with me long enough that I think it is probably worth investigating. So, readers, I am asking you to help me do just that!  This new “Worth It…Or A Waste?” feature gives YOU the chance to chime in and give your opinion if you’ve tried – or even heard anything about – the product we are discussing.  It’s a great way we can all help each other know when a purchase is worth it … or not!

So, the product in question today is: The Clarisonic Facial Cleansing Brush.  I am constantly on the hunt for something that will really cleanse and purify my skin….but at the hefty price tag of almost $200 could it really be worth it?

The Clarisonic cleansing brush uses the same technology as sonic toothbrushes.  The sonic wave technology  claims to remove make-up 6 times more effectively than traditional washing!  They claim their ultra-effective cleansing allows your products to penetrate further and work more effectively.  I have to admit, anything that can claim to clean the smog of L.A. from my pores is appealing to me!

I mentioned to Brandi that I had been wondering if an investment in a Clarisonic was worth it.  Much to my surprise, she told me she already owned one!  Brandi’s opinion was that she liked it quite a bit – but wasn’t over the moon.  She had received the Clarisonic as a gift, and while she uses it sometimes, she’s not convinced that she would have spent $200 of her own money on it.  After all, she said washing your face with an old-fashioned washcloth in a circular motion gives her the same results…

What do YOU think? Anyone else out there tried it? Despite Brandi’s lukewarm appraisal, I am still tempted by the thought of the spinning bristles working magic and gently exfoliating my skin — and of course the lure of the “younger and smoother” skin Clarisonic touts on their website. Should I buy it? What do you think  is the Clarisonic worth it … or a waste?

Fab & Fru Tips From ‘Your Gadget Guru’

by Stephanie Berenbaum- February 17, 2010

When I set up my home office in L.A., I called Gregg Steiner – aka “Your Gadget Guru” to help sort out all the new electronics I wasn’t quite sure what to do with.   Little did I know that tech-savvy Gregg was also full of money saving tips that helped me cut the costs of my home office overhead!  Best of all, he explained things to me in a way I could understand and didn’t make fun of me for still not knowing how to program a cell phone.  Now that’s refreshing, not to mention Fab & Fru!

iPhone for Less

Listen up, all you iPhone users out there!  Gregg told me that a couple weeks ago AT&T lowered the rate of their unlimited minutes/data plans for the iPhone from $130 per month to $100 per month.  Not surprisingly, they aren’t exactly begging people to call to renegotiate their contracts!  Our insider tip is to pick up your iPhone and call AT&T NOW.  Tell them that you want to renegotiate your rate down to their new $100/ month rate – a savings of $360 per year!

Face the Fax

As we all know, little things can really add up!  Gregg brought up something I truthfully never think about – my fax line.  It may be a dying technology trend, but I still use it from time to time.  At around $25 a month for a designated  fax line with the phone company, the cost of having an extra line (that I don’t use often) adds up to over $300 per year.  Gregg says a little money saving invention called the Magic Jack will change all that!   I admit, I have seen commercials for it but never looked twice.  According to our I.T. expert, this little device plugs right into your computer and gives you an extra phone line with all the bells and whistles.  It takes just 10 minutes to set up costs only $40 which includes your first year of service – and it’s just $20 per year after that! So you can easily save yourself more than $250 a year just like, well, magic!

Ink Costs Stink

We all know how pricey printer ink cartridges are ( I always get sticker shock when I buy new ones).  Gregg has a tip for those of us who are addicted to printing out color photos at home.  In most cases, he says, online services will print photos for you for less than the cost of the printer ink and photo paper you will buy for at home use!  Plus, he points out, most at-home photo printers tend to break – a lot! There is a reason they give printers away free with computer purchases …. It’s the ink purchases they are minting money on.

And another thing……

For those of you (like myself) that do a ton of solely black and white printing … Gregg recommends laser printers above ink jets!  It was news to me that laser printer ink cartridges last TEN times longer than ink jet cartridges.  So for all you writers & document mongers out there who print black and white in mass quantity, he suggests switching to laser and watching the savings add up!

Make Your Holiday Shopping Fab & Fru

Black Friday, Cyber Monday, or whatever the super sale may be, retailers are doing even more this holiday season to try to beat the recession, entice shoppers to their doors and get them to spend, spend, spend.  If you are one of those brave shopping souls who will hit the stores at midnight for door buster deals and stomach the crowds at 4am for the thrill of serious ‘steal’, then Black Friday was designed just for you!

Obviously, we at Fab & Fru fully support you in your pursuit of serious savings, but we are obligated to provide a morsel of caution as well.  At it’s core Black Friday is much more about you spending money and store owners enticing you to spend even more than you planned, rather than the deals themselves.  Retailers are banking on you getting a thrill from ‘winning’ the last ZuZu Pet off the shelf, scoring a computer for under $200, or feeling the sudden need to buy a new wardrobe.  The psychology beyond the whole thing is basically: once you’ve saved on one thing, the more you feel you have to spend.

This is a Fab & Fru danger zone.  And it can go either way.  However, if you want to reap the Black Friday benefits and still come out on top, you must make a list and not deviate at from it! Compare deals online before leaving your house.  Have a plan, stick to your strategy – and, I repeat- do not buy anything off your list!

The most important thing of all to remember is – a deal is not a deal if you never planned to buy the item in the first place.

So don’t worry if Black Friday shopping is not for you, I feel confident that if you chose to skip out on the hype, you will not lose out.  Holiday shoppers will have plenty to choose from and enjoy fabulous sales all season long.  But if you don’t want to take your chances and miss out of Black Friday deals, take some time to pull yourself together!  Whether you want to put up with all the pushing and shoving that Black Friday brings is up to you, but you shouldn’t have to face hand to hand combat and then realize you spent way more than you intended to!

To help keep you focused and get you started planning your sale shopping strategies, we’ve complied a fantastic Black Friday/Cyber Monday resource guide of resource guides that has links to store hours, deals, tips, and more from retailers to reporters.

Guide to Store Hours

Pre Sales

Ads & Coupons

Deal Tracker Sites

GottaDeal

BlackFridayOnline

Black-Friday.net

Gizmodo [Tech deals]

More Great Tips & Advice

About.com

USA Today

MSNBC

Consumer World

Fab & Fru…or Not For You?

A friend recently told me that she is thinking about buying a house in a “short sale”, meaning it is a property in the “pre-foreclosure” process.  Getting a house at a discounted price sounds great, but what does it really entail to buy a foreclosure?

Even though you can’t turn on the news without hearing about how many foreclosed homes there are out there, I still didn’t know much about how the process works and if a foreclosure is a good investment idea or not. At first glance it seems like buying a foreclosure could be very fab & fru.  Who wouldn’t be interested in buying a property below market value? But are these deals too good to be true?

Not surprisingly, the scenarios with the biggest rewards also come with the biggest risks.  It turns out there are actually three different “stages” of foreclosure – each with their own risk/reward profile.

Short Sales/Pre-Foreclosure

The first phase is the one my friend was talking about – a short sale, or “pre-foreclosure.” Generally, this stage is when a homeowner is first in default, usually at least 90 days past due with mortgage payments. In these situations, you are making a deal to buy directly from the current owners, as the bank has not repossessed the property yet.

“Short sales” are so named because the buyer pays less for the house than the mortgage is worth, and the lender agrees to forgive the rest of the debt.  Although it may seem weird to be dealing with people who still technically own the house, it can be a relatively attractive option for everyone. You could get a house at a discount, the current owner can get out without the credit stain of an actual foreclosure on their record, and the bank is also happy because they don’t have to deal with the time and expense of an actual legal foreclosure.

According to Jason Froelich, a 22 year veteran of the Los Angeles real estate market, there are also downsides to short sales.  For instance, he cautions, there is a much larger degree of uncertainty with short sales than with a regular transaction.  With a short sale, he says that the banks don’t usually give you anything in writing, so you need to be comfortable dealing with verbal negotiations.  And short sales can take a long time to close so you have to be willing to wait it out and deal with the uncertainty – in exchange for the potential upside!  Of course, dealing with a current owner who is under great financial pressure and possibly still living in the house can be difficult – you have to determine if it ultimately might be worth the hassle for the right price!

Auction Phase

The second phase of foreclosures is the riskiest, and I would say not intended for the average consumer.  This is the “auction” phase, where the home is put up for auction before the bank repossesses it. It sounds sort of old school – like a trip back to the wild west.  Jason told me that auctions are still generally held on the courthouse steps – literally!  The auction phase can yield the highest return but has by far the most risk.

One hidden risk that Jason mentioned is that if you buy a house at auction there still may be lots of back taxes that you won’t know about unless you’ve really done your homework.  So, an inexperienced bidder could think they are getting a great deal, only to find tens of thousands of dollars in “hidden” costs that they are also responsible for!  Plus, you need to come to the auction ready to pay for the property with cash or a cashier’s check – not something the average home buyer is prepared to do! If you are a real estate investment professional – and have a strong stomach – buying at auction may be right for you.  But for the majority of us, the risks here may far outweigh the potential rewards.

Can You Afford the Car You Drive?

Joan Rivers has a new show called “How’d You Get So Rich?!” I have to say, that very question crosses my mind every time I drive on the freeways of L.A. The proportion of Porsches, Range Rovers and BMWs seems to far outweigh the actual population of wealthy people in this town…So, how can all of these people afford such fancy cars?

Appearances can be deceiving – a lot of luxury car drivers may not be so rich after all.  According to Leaseguide.com, 75% of luxury vehicles are actually leased, rather than owned. Leasing is a popular alternative to purchasing a car, and a big reason is because in the short term, it is cheaper to lease than to buy.  So, many consumers like that leasing allows them to “afford” to drive a nicer car than they would actually be able to own. A nicer car for less money…Sounds like it could even be Fab & Fru, right?  Or is it too good to be true?

If you own your own business, there may be tax and cash flow advantages to leasing a car for your company. But as an individual, you really need to take a look at your lifestyle and long-term priorities before leasing your way to luxury…

The Plus Side of Leasing

More Car For Less Money

The up-front costs and monthly payments associated with leasing are generally considerably less than what it costs to finance and purchase the same vechicle.  In the short term, having the opportunity to drive a nicer car than you could ever afford to buy outright seems like a dream come true…

New Wheels Every Few Years

The typical car lease runs 2-3 years.  That means every few years you can get a “new” car and continually “be seen” in the latest, greatest set of wheels.

Easy Going

Because you are leasing the car for a set amount of time, it will be under warranty for the entire term of your lease.  And when the lease is up, you just return the car without the hassle of re-selling it or trading it in.

**Hmm…less money, nicer cars, and no hassle – this leasing thing sounds pretty good!  So, what’s the catch?