Single Living on a Shoestring

Going through a breakup or looking to ditch the roommates for your very own place?  Living alone is an exciting adventure, but it certainly is not the most wallet friendly living situation.  However, even in these trying economic times, more singles are opting to live by themselves than ever before…

According to Eric Klinenberg’s book, Going Solo: The Extraordinary Rise and Surprising Appeal of Living Alone, only 22 percent of adults were single in 1950, and only 9 percent of those single lived alone.  But today… almost half of the country’s adults are single, and one in seven households are occupied by solo dwellers!  So if you want your independence, how do you prepare financially to be live solo in the city?

The 25% Rule

Most experts say that your monthly rent or mortgage should never exceed twenty-five percent of your monthly paycheck.  If you are savvy enough find an apartment that meets this criteria, and budget your other expenses well, you should be able to live quite comfortably while having the funds to steadily increase your savings account too.  Clearly the 25% rule is tougher to stick to in a major city like New York or LA!

The Singles’ Penalty

You don’t need to be a rocket scientist to know that your household expenses will increase when you move out on your own.  When you’re planning out your monthly budget, remember to consider all the bills that you are used to splitting – or not paying at all.  Many of these expenses are optional, so tally it all up and cut the amenities you can live without.  And if you’re renting… Try to get your landlord to include utilities like: gas, electric, water, and cable!

• Electricity (don’t forget the big AC bump in the summer)
• Gas
• Water
• Cable
• Phone & Internet
• Renter’s or Home Owner’s Insurance
• Condo, Co-op or Association Fees
• Property Tax & City Fees
• Repairs
• Groceries -(The price per person is higher when your just buying for one).
• Housekeeper

by Debbie DiVito, CPA, Women & Co.

3 Things to Know Before the Deadline

Calling  all you procrastinators!  If you’re freaking out about needing to file a tax extension – take a deep breath.  Our fabulous friends at Women & Co. have 3 easy steps to help you file your tax extension… ON TIME.

If you’re looking for extra time to file your tax return, you may be able to get an additional six months by filing for an extension. But keep in mind that, while a tax extension may be just the quick fix you need, it won’t solve all of your problems.  Do you need to buy some extra time to file?  Here’s what you need to know about filing an extension:

1. You must file a tax extension on or before the regular tax deadline.

Normally, tax returns and extensions are due on April 15 (remember that in 2012 we have an extra two days).   An “extension” is a way to ask the IRS for more time to file your tax return.  Usually, filing for an automatic extension will extend your filing deadline by six months (making your return due on October 15 in 2012).

2. The money you owe is still due on the regular tax deadline.

In other words, you’ll need to estimate the amount of taxes you owe and make a payment at the same time you file for an extension.  That means paying at least 90% of the taxes you owe, otherwise you risk facing a late payment penalty.  You can learn more about the price of late payment on the IRS Website or in H&R Block Tax Tip 30: Federal Income Tax Extension Information.

3. There are exceptions to the rule.

There are special considerations for U.S. citizens and resident aliens who are out of the country on the tax deadline (again, that’s April 17 in 2012).  That means that, if you meet the requirements, you may be eligible for an extra two months to file your return and pay what you owe.  You can read more about these special rules on the IRS website or in H&R Block Tax Tip 30: Federal Income Tax Extension Information.

You can learn more about extensions of time to file your taxes on the IRS website.  If you have additional questions about filing a tax extension, speak with your tax professional or accountant to learn more.

by Stephanie Berenbaum – March 21, 2012

Cops, Robbers & Homeowners Insurance

Yesterday was an ordinary day, until I found myself at the center of an international crime thriller!  Okay, well, not exactly … but I DID have two car seats stolen from my very own driveway.  Here’s what happened: our babysitter set our car seats down next to my car – in my driveway – and then came back inside for maybe 60 seconds because I had forgotten to give something to her.  She went back out and – that’s right – the seats were GONE.

Get to Know Your Local Police Precinct

Or at least have their phone number handy!  Not only did I not even know what police precinct I was in, I didn’t even have their number.  By the time I managed to look them up and call, many minutes had gone by.  I know the odds of catching the car seat thief was slim, but I realized that my precinct should definitely be on my go-to list of important phone numbers!

Insurance to the Rescue?

This theft – the first since we moved into our house 8 years ago – actually was a wake up call for me.  Because, to be honest, I realized how little I knew about our very own insurance policy.  I always just took my homeowners policy for granted, and was a little embarrassed that I actually had no idea if something stolen from my driveway was even covered…

I called our insurance agency (Travelers) and told my agent (Michelle) what happened.  Here’s the 411 on what I learned about the ins and outs of insurance and theft!

Does The Driveway Count?

Talking to agent Michelle, my first question was if my insurance policy covered things only inside the house, or outside too.  I honestly didn’t know, but she assured me that property in my driveway was covered under my plan.  She broke it down further to explain that I had two kinds of coverage: a certain amount for personal property (like my car seats) and another amount for dwelling coverage (like if someone breaks down your front door).

Coverage On The Go

My new BFF Michelle also explained to me something I had no idea about: if I am traveling and my luggage (or car seats!) gets stolen, it is also covered under my “personal property” homeowners insurance – even if the theft happens away from home.  *Note: Most renter’s insurance policies are the same.

Make a Video Diary

One thing Michelle highly recommended to speed up any insurance claim: make a video diary of your high ticket items!  Of course it helps to also keep all of your receipts.  But if you haven’t done that, just take 5 minutes and shoot video of your pricey jewelry, TV, computers, clothing and, oh, I don’t know, maybe CAR SEATS?!  That way when the insurance adjuster comes out you can prove to him that, yes, the $250 pair of jeans really was yours (no judging, we swear…).

by Alexandra Pauline – February 27, 2012

The Cost of Going Back to School

Investing your time and money in getting an advanced degree can be rewarding on many levels, but in the current economy is it worth the upfront costs and potential debt?  If you’re thinking about going back to school, we’ve got some Fab & Fru advice to help you decide if a grad degree is right for you …and your budget!

Do Your Homework

There are many reasons to go back to school, but before you commit funds and time, ask yourself a few pertinent questions: What is your dream job?  Is your chosen area of study an expertise that is in high demand?  Can you get a graduate degree, or will you need to continue on the PhD path in order to secure the position you really want?

Budget Before Hitting the Books

Once you’ve decided on your area of study, it is extremely important to assess your financial situation before applying to schools.  What can you afford?  Are you eligible for financial aid?  Does the program you’re applying for leave you time to work to cover your living expenses?  How much debt in student loans are you willing to accrue?  And most importantly, will your investment advance your career in the direction you want to go, and how long will it take before you see the financial payoff?  Figuring out how to finance your degree upfront is crucial to your long term success!

Employer Incentives for Education

If you work for a big company, make sure you do your research if you’re on the fast track to becoming an invaluable employee.  Many companies are willing to at least partially finance your education – if you plan on bringing your knowledge back to the organization.  Some employers may also offer an interest-free advance on your salary, with varying conditions, if they do not offer full or partial tuition reimbursement.  Check in with your boss and see if you can take advantage of this Fab & Fru way to get your degree!

Scholarships for Scholars

Still wondering how you’re going to pay to go back to school?  Did you know that grants and scholarships are not just available for undergraduates?!  In fact, there are government, company and private trust scholarships for just about every demographic you can think of.  If you are a single mother, a veteran, or a sorority sister, you may be eligible for some serious support.  Check out Fastweb.com, one of the leading sites on scholarships and financial aid info!

by Brandi Savitt – February 2, 2012

Chic Does Not Always Mean Safe

Last night I met a couple of friends for a glass of wine at the Fab but not so Fru Soho House in New York City.  As the international crowd of New York’s upwardly mobile sipped their fancy cocktails and mingled, it never crossed my mind that a private club was a place that I needed to worry about getting my phone stolen….

Like the others sitting at the bar, I was waiting for a call and had placed my phone on the bar right in front of me – no big deal…  But when we went to leave for the night, my beloved iPhone in the purple case – filled with memorable pictures that I had yet to download – was gone.  Had I dropped it?  Had my friend Betsy picked it up by mistake?  We looked everywhere.  Finally, I left my email at the front desk, and I went home to track it on Find Your Phone.  Poof!  It was gone just like that – without a trace.  –It just goes to show you that, even in upscale places, people steal – and it sucks.

Prepare & Protect Your Phone

It goes without saying that losing or getting a smart phone of any kind stolen is one BIG expensive pain in the butt.  We carry our lives around in those little devices, and no one takes pity on you with the price – especially Apple – even if you’re a long time, valued customer.

There are some ways however, to protect and prepare yourself if you ever find yourself in my shoes.  So, take a second and take note, because it can happen to you too!

by Stephanie Berenbaum – January 5, 2012

Avoid the Price of the Boot & Tow

It’s not even a week into the new year, and already our friend Samantha has broken one of her New Year’s resolutions!  2012 was the year she was finally going to get more organized, not let mail pile up, and stay on top of her bills.  She had the best of intentions, really…

But her optimistic outlook on 2012 was already totally threatened by January 3rd when she looked out her window to see a big orange BOOT being placed on her car!  To make matters worse, it turned out the boot was the least of her troubles.  Because, as the Los Angeles City employee told her, the tow company was on their way…

Beware of Unpaid Parking Tickets..

SERIOUSLY!  As Sam learned the hard way, the current rule in LA is if you have FIVE unpaid parking tickets, your car can be booted and towed – even if the ticket is just a month old.  If you know anything about driving and living in Los Angeles – getting parking tickets should be a budgeted cost of living in this town.  And it’s not just Los Angeles – if you live or work near any large city, chances are you’ve had to pay big bucks for a parking violation at some point or another.

What to Watch for…

So, it got us thinking, there are so many different types of parking violations that cities enforce because the profit margin for them is just so gigantic – what sort of parking rules and tips do you need to be aware of, aside from the obvious?  Of course each city has its own special violation nuances, but here are things to think about wherever you drive!

The Broken Parking Meter

I always assumed that a broken parking meter meant you get a free pass – I mean, it’s not your fault it’s broken, right?  But many of our friends have told tales of getting ticketed while parked at these broken meters!  What gives? While rules differ by city, one thing we learned is that even if a meter is broken, you still have to adhere to the time limits – so be careful not to overstay your welcome.

How Many Tickets Before You Get the Boot & Tow?

This was our friend Samantha’s downfall.  Apparently, many cities are reducing the number of unpaid tickets you’re allowed before you get towed.  As we mentioned, Los Angeles will now boot and tow you if you have 5 unpaid parking tickets – and there is a movement to reduce the number of tickets even lower.  SO – be sure to find out what your city’s limit is – and pay up before you hit it the limit!

How Many Days To Doubling?

If a ticket goes unpaid for a certain number of days – surprise – the fine DOUBLES.  But you may not be aware that many cities are also reducing the number of days you have to pay before the add another fine.  Make sure you know how quickly you need to pay in your town before your parking budget is completely busted!

by Stephanie Berenbaum – December 29, 2011

Learn from Our Mistakes…

In order to start the New Year off right, we figured it might be best to come clean about some of the biggest, messiest and most embarrassing money mistakes we – and our Fab & Fru friends and family – have made this past year!  As much as we are Fab & Fru, we are also human, and we have to admit we’ve collectively done some stuff this past year that was just pretty freakin’ stupid.  So, have a laugh and learn from our mistakes.  It’s certainly our New Year’s resolution never to do any of the following in 2012…

1.  Accidentally leaving the car in DRIVE – exiting the car and locking the doors – then watching the car slowly roll into the front of your guest house.  Or should we say, through your guest house…  Thankfully, after the initial shock wore off, and it was confirmed no one was hurt, the $3,000 price tag to fix the big giant hole in the facade was just the beginning.  Then there was the serious cash to repair damage to the car  -  not to mention the huge hunk taken out of the the driver’s ego… 

–Lesson: Always remember to put your car in park before getting out .

2.   Going crazy at a Sample Sale.  I have to admit, I thought I was going to save BIG by going to a sample sale of one of my favorite brands.  After battling the crowds, I was pretty proud of myself for all the “deals” I got.  That is, until I realized I wouldn’t wear most of them…  I swore at the time they looked great, but I think I was more focused on the discount than the design.

–Lesson: I should listen to my own advice – if you wouldn’t buy it at full price, don’t buy it on sale!

3.  Going to a pricey spa to get eyebrows shaped, and assuming because it was pricey they knew what they were doing..  Not exactly … the esthetician used too much wax and left our friend with half an eyebrow! Not only did she lose $30 – but she basically lost her left an eyebrow.  After 10 months, it’s yet to grow back to normal!

– Lesson: Make sure you’re in experienced hands before getting any kind of hair removal .

4.  Cutting the tag off a $150 sweater … and doing it in such a rush that I left a big round hole right in the back of the sweater.  Not exactly the fashion statement I was hoping to make…

–Lesson:  Haste makes waste – always!

What Tax Deductions Can You Take?

No, this tax article isn’t a misprint!  It’s the end of the year, and ’tis the start of tax season.  Our good friend – and Certified Financial Planner – Michael Hardy, of Mollott and Hardy, Inc. (along with Efile.com),  just reminded us about one of the greatest holiday gifts you can give yourself: to be well organized and make sure you have all the relevant documentation for tax time NOW,  so you can save as much money as possible when you file your 2011 taxes.

Here are some key questions Michael wants you to ask yourself to help determine what deductions you are eligible to take advantage of.   –Thanks Michael!

Make Your Job Work for You!

• Do You Pay For Parking At Work?  You may be able to deduct the cost of parking.
• Do you Use Your Car For Business? You may be reimbursed for business use of your vehicle based on miles driven.
• Do You Ride A Bicycle To Work? If so, you may be reimbursed for the cost of the bike as well as repairs and storage.
• Have You Gone On Work Related Trips? Keep all your receipts – even down to dry cleaning and baggage handling.
• Have You Lost or Changed Your Job?  It takes money to look for a new job – and you might be able to deduct these expenses.
• Do You Work From A Home Office? You may be able to deduct expenses like internet, phone, furniture and security
• Did You Move Closer to Work or to Take a New Job? If your new residence is at least 50 miles closer to your workplace than your old home, you qualify for a deduction of your moving expenses.
• Do You Belong To A Union? Union dues and initiation fees are deductible.
• Do You Make a Low Income? Check if you qualify, and don’t miss out on the Earned Income Tax Credit.
• Do You make Retirement Savings Plan Contributions?  If so, you might be able to get a tax credit for qualified contributions.

Green Living Puts Green in Your Pocket!

• Did you buy an electric car in 2011? If the car you bought in 2011 is a plug-in hybrid or fully electric vehicle, you could qualify for a tax credit of up to $7,500.
• Did you improve your home with energy-efficient appliances, windows, doors, or other energy saving devices? You may be able to deduct up to $500 for the expenses, or even more for installing renewable energy sources.

Family-Friendly Tax Savings!

• Do you have children or other dependents? You may qualify for a $1,000 credit per dependent with the Child Tax Credit.
• Did you adopt a child? There is a special refundable tax credit for which you may qualify. The credit can reimburse up to $13,360 of qualified adoption expenses.
• Are you a student or the parent of one?  If so, you have a choice of credits. You may be able to receive up to $2,500 per student.
• Did you get married?  Congratulations! There are several tax-related implications which you should know about.
• Did you get divorced? As with marriage, there are several tax-related implications in cases of divorce or separation. For example, alimony is deductible while child support is not.
• Did you spend money on medical care?  Most people did, of course. But if you had a particularly tough year, you may be able to deduct any medical expenses which exceed 7.5% of your income.
• Do you employ your child in a family business?  If you hire one of your children who is less than 18 years old, you may not have to withhold taxes from their salary for social security, Medicare, or unemployment.

If your taxes are complicated in any way, or you are unsure about what deductions you are eligible for – don’t guess – consult with a CPA.  Hiring a certified accountant may cost you up front, but a good accountant will help save you in the end.  Happy Early Tax Planning!

Get Fab & Fru Savings on Luxury Shopping

Sure, we all have a battle scar or two from braving the mall on the Friday after Thanksgiving.  But you can’t blame us for hoping to score some major deals, can you? If mentally (and physically) prepping for Black Friday weren’t enough, now we also need to be ready for Cyber Monday!

So…what’s the deal with Cyber Monday anyway?  Can shoppers get the same or better savings with just a click on a keypad as they can shopping in the store?  If Black Friday is all about the door busters at the big box stores like Best Buy and Walmart, what does Cyber Monday have that Black Friday doesn’t?

The Growth of Cyber Monday

In 2005, Cyber Monday was created so online merchants could push their holiday deals without competing with in-store Black Friday promotions.  However, in 2009, 195 million shoppers visited both stores and websites over the Black Friday & Cyber Monday weekend, spending an estimated $41.2 billion dollars!  Propelled by aggressive retailer promotions in 2009, online shopping has skyrocketed and shoppers have embraced the benefits of shopping from the comfort of their home – spending $913 million last year on Cyber Monday alone! -*Statistics provided by savings.com.

What Does this All Mean?

It’s no secret: merchants want you to spend your money at their store, and they’ll do what ever they can to get you to shop!  Cyber Monday allows online stores to continue to benefit from YOUR shopping mindset, while extending savings opportunities for the entire long weekend.  And as online shopping becomes more and more the norm, the line between the two shopping holidays has become blurred….

Luxe Monday Online & Off

When you think of Black Friday you think of people in their sweats racing for the doors at big box stores.  But the higher end and luxury retailers often wait for Cyber Monday- or Luxe Monday- to focus on their promotions.  Here are some luxey online and offline deals to watch out for!

Vacation Time!

Today is the day to find some serious travel deals on flights, hotels and vacation packages.  USA Today has listed some killer NOT TO MISS DEALS that you NEED to check out right NOW!

Additionally, get $200 off your next trip of 5+ nights at Travelocity when you book a qualifying flight + hotel or just hotel.  *Travel for qualifying trip must be complete by 1/2/12. $200 promo must be used between February 1 and April 30, 2012. Offer expires 12/15/11.

Orbitz is also offering  BIG deals to Europe if you book your trip now- offer expires 12/31/11.

A Day at the Spa!

Looking to buy a gift certificate for someone to a local spa, or maybe you want to a break yourself from the holiday madness.  Check local deals  near you for major spa discounts.   Spafinder is also offering a 20% savings!  Buy one $50+ gift certificate  and get 20% off the second of equal value.  Just enter in the code SFGIVE at checkout. –Offer expires 11/30/11.

by Brandi Savitt – November 16, 2011

Save Your Sanity & Wallet by Shopping Online

From constant news reports to sitcom plot lines, Black Friday marketing has hit fever pitch! And with the economy hurting, stores are making an extra effort to entice you to spend spend spend this holiday season.  Many stores will open their doors right after Thanksgiving dinner this year – making all of us feel like we’ll miss the deal of the century if we don’t ditch our families and head out to the mall.

The truth is… the deals have already started – online.  Follow our Fab & Fru Black Friday tips to save your money and your mind this holiday season by getting organized and staying home on the biggest shopping day of the year!

Don’t Shop in Stores on Black Friday

Unless you enjoy fighting the crowds and waiting in lines, or you have a very specific item that you want to get in your hands that day, there is no reason to leave your computer and go to the stores on Black Friday.  There are very few items on sale in stores that won’t also be on sale online!

Stick to Your Shopping List

Before you start shopping online (or in the stores), make a list of the people you are buying gifts for, what you want to buy them, and the price limit for each gift.  Then most importantly, STICK to that list (and don’t buy unbudgeted items for yourself)!  Overspending happens when you don’t have a plan.  The worst thing you can do is to start the New Year off in credit card debt.  Remember – a deal is not a deal if you can’t afford it!

Start Checking Sales Now

Good news for all of us!  Start checking your favorite sites and online stores RIGHT NOW for amazing deals.  In hopes of moving more inventory, stores have already started running their Black Friday deals – and expect them to last well into the season!

 Establish an Account In Advance

Don’t spend an hour filling your cart with fantastic deals only to find out you can’t check out before you set up an account.  Setting up your account after you shop could cause you to lose your sale items to a more organized shopper.  Protect your finds by making sure you have an account established and login before you start adding things to your cart!

Hedge Your Bets

Afraid to start online shopping now, fearing that you may lose out on even better sales come Black Friday?  Don’t worry! Just shop at online stores that have a location near you – and save your receipt.  If a better deal comes along on Black Friday, just call up customer service, or go into the store to show them that you recently purchased the item.  Most stores will refund you the difference of the sale!

Always Stack Your Savings

Before you start to shop online, do a simple Google search for product coupons and store promo codes.  Also, check your favorite bargain sites for extra deals. You are very likely to find an additional sale or FREE SHIPPING code to STACK with a Black Friday or clearance sale to help you save even more.  Also, remember to use any gift cards you have to save even more!

Happy Shopping & Saving!