» Mind & Spirit

The Expense Of Living Alone

Alexandra — Thu, 17 May 2012 17:53:00 +0000

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

Does Exhaustion Cost You Money?

Alexandra — Mon, 16 Jan 2012 18:05:27 +0000

by Alexandra Pauline – January 16, 2012

Sleep & Your Savings Plan

It’s no secret that getting enough sleep helps to keep us healthy and functioning at our finest. But what you may not know is that losing sleep may also lead to you losing money. See how getting enough rest is a Fab & Fru way to keep help you keep more money in the bank!

Do Wealthier People Sleep More?

We’ve all pulled an all nighter or two in our day. And while they are sometimes unavoidable, many experts would argue that people who are tired all of the time are not as successful as their well rested colleagues. It may seem obvious, but not only does getting seven to nine hours a night help you avoid getting sick, it helps you to get more done during the day with a whole lot less effort. And the better you are at leveraging your time, the more likely to are to reach all your goals – including your financial ones!

The Insomniac’s Shopping Dilemma

Chronic fatigue can bog down your budget more than you think. People who have trouble sleeping run the risk of wasting money because they tend to make more impulsive decisions than the well-rested do. Many people who can’t sleep at night surf the web and home shopping stations. Things often look more enticing to the late night shopper than they may in the light of day. And according to savingadvice.com, when you are sleep deprived, “Your thinking is slowed, you’re too tired to listen to advice, and you sometimes aren’t fully understanding what you’re reading or hearing. When you’re making big financial decisions you need all your brain power so that you don’t get caught up in a scam and agree to unfavorable terms.” -If you have serious trouble sleeping, please contact your health care provider.

Take The Time To Wind Down

As women who want to have it all, our mental to-do-list is never ending. Between work, kids, friends and family, there is often no sleep for the weary. And even when we’re totally exhausted and can’t wait to sleep, the pressures of everyday life can keep us wound up for hours. The key – really take the time to clear your mind. Whether it’s a hot bath, a cup of Sleepy Time tea or reading a gossip magazine, giving yourself a hour or so before bedtime to wind down will help you sleep better and sleep through night. To paraphrase the wise words of Ben Franklin: Early to bed, early to rise, helps keep a woman healthy, wealthy and wise!

Stay Away from the Late Night Snacks

According to Joyce Daoust, a Certified Nutritionist and national best selling co-author of “The Formula, A Personalized 40-30-30 Weight Loss Program,” the key foods to avoid eating at night include: sugar, alcohol, and high-carbohydrate snacks that can spike blood sugar and insulin levels. “These foods can block the release of human growth hormone, inhibiting proper repair and recovery of your body, disrupting sleep patterns, and waking you after only a few hours of sleep.” Nutrition expert Tina Ruggiero, MS, RD, LD also added, “Do something after eating — light chores, laundry, etc. Don’t go right to bed. That will also help guarantee a good night’s rest.”

Biggest Money Mistakes of 2011

Steph — Thu, 29 Dec 2011 21:18:30 +0000

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 Do You Have To Give?

admin — Thu, 22 Dec 2011 07:01:30 +0000

by Brandi Savitt – December 22, 2011

The Benefits of Giving Before December 31st

Were you planning to make a donation to a worthy cause this year but never got around to it? Well, before 2011 comes to an official close, now is your chance!

The reality of the ongoing economic crisis means that charities around the globe are suffering too. Many organizations who help the needy have found their donations significantly cut due to the recession. So, remember – just because you can’t give what you used to, doesn’t mean you shouldn’t give at all. No donation of your time or money is too small – so please help keep the efforts of charitable organizations alive and thriving. Besides getting a write off on your 2011 taxes, a charitable donation in someone’s name is a totally fabulous last minute gift idea that you can actually feel good about giving!

End of the Year ‘Right’ Offs

When you donate to qualified charities you can reduce your taxable income and lower your tax bill, all while helping society. The amount of your tax savings depends on your tax bracket. For example, according to the IRS site, “If an individual with a taxable income of $50,000 donates $2000 to her church, the tax savings will be $540 — $2,000 times the taxpayers marginal tax rate of 27 percent.” In a nutshell, the tax saving usually equals the amount of the deduction times the individual’s marginal tax rate. Consult a tax professional about your personal situation, but the bottom lines is: What is good for the soul can indeed be good for the wallet!

Find the Charity You Connect To

Charity Navigator is an amazing resource that can help to get you started. Whether you prefer to volunteer your time at the local soup kitchen, help a child in need, or donate your car, Charity Navigator has vetted hundreds of organizations around the country and can help you choose which cause is best for you. They also provide fantastic tips! Check below for some interesting info from their Charity Navigators Holiday Giving Guide.

Get the Biggest Bang for Your Buck

With less charitable dollars available this year, it is critical that donations go to charities that will maximize the use of every dollar. Charity Navigator’s research shows that the most efficient charities spend at least 75% of their budgets on programs and services with the remaining 25% spent on administrative and fundraising costs. Donors should focus on supporting charities that can meet this benchmark.

How Much Does the CEO Make?

Just as Wall Street salaries have come under fire, nonprofit CEO compensation has become a lightning rod issue. Make sure your charity’s leader isn’t excessively compensated. Charity Navigator’s analysis puts CEO pay around $150,000 or 3% of expenses. Of course, in evaluating the appropriateness of a salary, donors should consider variables such as the charity’s location, size, mission and overall performance.

Planting Peace

Speaking of bang for your buck, we are in awe of what Planting Peace can do with just a few dollars. Founder Aaron Jackson (one of the CNN
Heroes in 2007) can literally save lives with pocket change. And if you are looking for a really Fab – yet Frul – last minute gift idea, check this out: You can bring Christmas to a Haitian orphan for only $5, or provide an entire orphanage with Christmas toys and food for only $50! For more information on Planting Peace or to donate, please visit their site . They are making miracles happen in Haiti and around the world.

Marry Philanthropy & Gift Giving

In this slowed economy, many of us have less to spend on charity and consumer purchases this year. However, we can do double duty with each dollar by engaging in philanthropic shopping. Consumers that buy directly from their favorite, well-run charities, rather than purchasing cause-related products from retailers, make the biggest philanthropic impact.

Are You An Emotional Shopper?

brandi — Thu, 08 Dec 2011 19:59:45 +0000

by Brandi Savitt – December 08, 2011

The Lure of Luxury

We’ve all done it… Maybe it was the day you found out that you didn’t get the job you were hoping for, or you just lost a big account at the office? Or even worse, maybe the guy you’ve been seeing broke up with you- just as you were really starting to like him? We’ve all gone shopping after a particularly bad day and indulged in a little retail therapy to make ourselves feel better. And you know what? It works –that is, until the credit card bill comes at the end of the month…

Social Status & Spending

I recently read an article by Daisy Grewal in Scientific American entitled – When You Try to Buy Status, It Can Backfire, and it was fascinating. The piece highlighted a couple of university studies that showed when people feel inferior and that their social status is lower (even if it’s just temporary), they are willing to spend more money on luxury purchases than someone who is feeling more confident and secure!

Buying Your Way Up the Ladder

So what does this say about how the human psyche affects our spending habits – and who is more likely to go into debt as a result? According to the article, “the desire for social status is one of the most important factors driving human behavior”, and spending money to show (and feel) that you are upwardly mobile is often the quick fix for many people – even if they don’t have the money to spend. In this day and age, our place on the ladder of social hierarchy still influences (if not determines) everything from who we are friends with, who we marry to how long we live. And the worse you feel about your social standing, the more likely you are to try and buy it. But that doesn’t mean we can’t outsmart biology – or does it?

Are You Really Thankful?

brandi — Wed, 23 Nov 2011 21:35:37 +0000

A Thanksgiving Reality Check…

As the holiday weekend begins, most of us are gearing up to overindulge on Thursday, hopefully not over spend on Friday, and get in as much QT with family and friends as possible the rest of the weekend. Thanksgiving is the one nondenominational holiday that all of us Americans celebrate, and a time to show our gratitude for all that we have – at least that’s what we’re supposed to do…

Does Being Thankful Matter?

Of course, we all muster up a moment of reflection and give thanks once a year, but do we always really mean it? I mean, heck, who hasn’t had a challenging year? The economy certainly sucks, people are suffering, and there is still no peace in the Middle East – not to mention all our individual personal problems! Is there really all that much to be thankful for? And who’s gonna fix it all?

That Which Does Not Kill You…

Have you ever noticed that those who have suffered and been challenged the most are often the ones who are most sincerely grateful? If you think about it, the good times are easy. We get lazy in the good times, and we never learn much when we are not challenged… It is when we are forced to work hard and look fear in the eye that we find out who we really are, and what is truly important to us. It is in times of challenge where the biggest opportunities lie – in all areas of life. And it is in times like this when we realize that being thankful is not just about being polite, it is a way of looking at the world and our place in it.

Carpe Diem Baby!

So this Thanksgiving, after you raise a glass and toast your loved ones, I ask you to take pause and challenge yourself to look at all that you are and all that you have in a new light. If you don’t like what you see, vow to change it. If you have something to say – say it. If you have a dream – work like hell to make it happen. Seize the day- everyday – and be grateful for every moment.

Have a Happy Fab & Fru Thanksgiving!

Speak Up Or Shut Up

brandi — Thu, 27 Oct 2011 17:49:15 +0000

By Brandi Savitt – October 27, 2011

Paying More than Your Fair Share

Last week, after finishing a major project at the office, our dear friend Jo went out with a few work buddies to celebrate. Everyone ordered a cocktail and began chatting about how thrilled they all were with the outcome of the project. Jo, who was enjoying her time unwinding, was nursing a cold and decided to sit the next round of drinks out. As these things go, round two progressed to round three, and after a couple of bottles of wine and multiple tapas for the table, the gang finally called it quits for the night.

When the bill came the cards came out, and before Jo knew it, the waitress had split the bill equally on all of the cards. Embarrassed to speak up that she only had one drink and no food, yet upset she had to pay 4x what she owed, Jo didn’t want to complicate the situation. So, she did what so many of us do – she said nothing – and then called me the next day to complain….

Been There, Done That

I don’t know anyone who hasn’t been in awkward money situation with friends at one point or another. Whether it’s splitting the bill or getting reimbursed for fronting the money for something, it’s always tough to be the one asking to be paid back or having to announce you want to pay less than everyone else. Let’s face it, who wants to seem cheap? But on the other hand, the only person who can control your budget is you… So, how should you handle it?

Tactfully Speaking

Communication and managing expectations (yours and your friends) are key. In casual situations with friends, there is nothing wrong with letting your pals know that you would prefer to pay for your share only. This is true if someone owes you money as well. Whether we like it or not, people are not always as observant or mindful as we would hope. We all can be forgetful, and most of us actually appreciate a gentle reminder. In most cases, your friends are not looking to screw you, and if they are — they’re obviously not really your friends!

Own Your Silence

Sure, it sounds easy to just speak up, but we all know that there are those times when it’s not appropriate, or you’d still rather not say anything and just cough up the cash. And that’s fine, but that’s also your choice. You can’t expect other people to take the lead for you, and you can’t get upset in awkward money situations if they don’t. That’s not fair, either. The only person’s actions you can be responsible for are your own. So, if you choose to let things slide, you also need to accept that choice. Suck it up and don’t go talking about the situation to your other friends as if someone wronged you. Your only enemy is you….

Take Control of Your Wallet

The truth is, you will likely have to face many more awkward money moments in the years to come, and good communication can only go so far. You are the only one who really knows what’s in your bank account. If you can’t afford to take the risk that you might have to pay more than you planned, avoid putting yourself in that position in the first place. If you feel certain friends constantly take advantage of money situations, avoid big ticket nights with those friends. Choose activities that you can afford and enjoy doing. Finding that balance is not easy, but it’s absolutely worth it to your friendships – and your wallet – in the end!

Talking About Money

brandi — Thu, 20 Oct 2011 18:04:38 +0000

By Brandi Savitt – October 20, 2011

…And Knowing When Not To

In the middle of my first date with Sam, he brought up that he was in an “interesting situation” and wanted my opinion. His ex-wife (who he was still friends with) had just asked him to co-sign a mortgage for her and her new husband. Yep, I had never heard that one before… And although I was a bit surprised that he wanted my opinion when we barely knew each other, I totally dove in, and we ended up having a really good conversation about it. It crossed my mind that maybe he was trying to get me to think he was a good guy for considering lending them money, and in the end, that’s exactly how I felt.

On date two, he gave me a brief update that he had wisely decided not to co-sign the loan, and we went on to have a really good time. But then on date number three, Sam revealed that before his ex remarried, he would often lend her money. She had paid him back for some of the loans but not others, and there was one outstanding loan from three years ago that he really wanted back. This conversation went on through most of dinner, and by the end of it, I realized there may be a much bigger issue going on – one that I had no interest in exploring…

When Not to Talk About Personal Finances

While the whole spirit and message of Fab & Fru is to encourage people to talk more about money, there is a time and a place for everything. Talking about your personal finances to people you don’t know well can be tricky, because our personal finances are just that – personal. And even if you’re comfortable sharing, if you don’t know your audience well, you may give off the wrong impression.

What Are You Really Saying?

Let’s take my situation with Sam. At first I didn’t mind talking about the potential pitfalls of co-signing a loan for someone or how to ask for your money back from a loved one. However, after several hours of talking about it just over the course of three dates, I couldn’t help but wonder if any of this was really about money at all. Sam had unresolved issues with his ex wife. Was he still in love with her? Was this his way of staying connected to her or feeling in control? Was it a power move, or did he need to feel needed? It doesn’t really matter if any of my thoughts were true. The result was, I started to question his intentions, and unfortunately, I started to analyze and judge.

How to Talk About Money

Now, I’m not saying that you MUST refrain from talking about all personal financial situations until you know someone super well, but learning how to talk about money is a skill worth exploring. Choose your topic carefully and don’t get too personal unless the conversation naturally takes you there. And you don’t have to flat out ask someone how much they make to be offensive. Someone who talks too much about their own fortune – or misfortune – can come off equally obnoxious. Always respect others privacy and respect yourself. Don’t turn someone off before they get to know the real you!

The Allure Of Credit Card Offers

brandi — Thu, 06 Oct 2011 19:39:03 +0000

By Brandi Savitt – October 6, 2011

Planting the Seed to Spend

Yesterday, I saw an email lurking in my inbox with the subject line, “A million dollars could be yours.” The sender: the Chase Freedom credit card.

And while we all get countless promotions from credit card companies and banks, this one was dangling a bigger carrot than most: a granddaddy million dollar sweepstakes prize (!) plus a slew of smaller prizes, all from one of the biggest banks in the world. My first thought honestly was – what will they think of next to get people to spend money and rack up debt? Despite my reservations, I had to see what it was all about. So, I took the bait and clicked on the link…

Selling Your Soul?

I never got far enough to know if I had to actually apply for the card to enter to win (I’m assuming so). Promotions today are much less straightforward than that… To learn more, I had to ‘Like’ the sweepstakes on Facebook, and then I had to give them full access to all my personal Facebook information and friends list. I couldn’t do it. Not only do I absolutely not need another credit card, the one in a million chance to win just didn’t seem worth selling out my privacy.

The Power of Marketing

When I first began my inquiry, my fascination was all about how the power of marketing is such a force that it can knock all reason out of even the most logical of heads. For example: Would you risk going into debt to earn an extra 10,000 points on your card? But on the flip side, it’s a competitive world out there, so why shouldn’t credit card companies entice you by offering 25,000 free miles, double the points for every dollar spent, or the chance to win $1 million? Couldn’t it be a win-win if the credit card company matched the consumer up with a card that was tailored to fit their needs?

Don’t Pass the Blame

The truth is, we can’t blame the banks and the credit card companies for marketing the hell out of their products. We can’t blame them for wanting to make money – and make money off of us. That’s what they’re in business for, after all. Therefore, the problem isn’t them – it’s us!

Many of us have no idea how our own credit card habits are affecting our overall credit score. To add insult to injury, most of us sign up for a new card to get a bonus offer or discount upfront, without planning on ever using the card again, or worse, not reading the fine print to understand the risks and the benefits the card has to offer.

What’s Your Money Reputation?

brandi — Thu, 22 Sep 2011 18:12:09 +0000

By Brandi Savitt – September 22, 2011

Do Others Trust You When It Comes to Cash?

Two weeks ago, a friend of mine was recovering in the hospital after surgery when he asked me if I could help him find a signed first edition of Steve Martin’s 1979 book “Cruel Shoes.” No problem. And within a few minutes, I located a copy in great condition on eBay – believe it or not, this was my very first eBay purchase ever. I paid for the book via my credit card on PayPal, just three clicks and I was done. How could anything go wrong?

Out of Sight, Out of Mind

Thinking the book would arrive at my friend’s house within 4-10 days, I left for a conference in Toronto the next day and never thought twice about my “Cruel Shoes” purchase – until yesterday…

When I got settled back in the office, I checked my eBay account to check the status of the delivery. And there they were… A slew of messages that started sweet and appreciative and then escalated to — “Why haven’t you paid me? I’m stopping this sale!” Then, eBay sent me a message officially ending the sale and attaching an UNPAID red flag to my account- SAY WHAT!?? How could this be? Not only did I think I already paid, I was horrified someone thought that I was trying to stiff them. Not to mention, I still really wanted the book!

Saving Face!

I then embarked on my own stalker-like rampage to clear my eBay name. I emailed the seller twice. I called eBay and PayPal trying to figure out what I did wrong. And then finally, the seller wrote me back this morning, and it seems we will be able to resolve the issue without a hitch. Phew!

How Do Others Think of You & Money?

This whole escapade got me thinking. Unless we go to apply for a loan, mortgage, or other endeavor where our credit report is scrutinized, most of us don’t ever pay attention to our money reputation, or ever wonder if others find our ‘money word’ credible.

Have you ever borrowed $20 from a friend and forgotten to pay it back (or worse– pretended to forget)? Or do you always pay people back immediately, no matter what? Have you borrowed clothing and returned it dirty, or do you always return it clean? Have you ever said you were going to take care of something financially, but then let someone else take over? Do you pay your rent late, or do you always pay your bills on time? Some say that if we can’t respect other people’s money, how can we ever truly value and respect our own? And they might be right…

Actions Speak Louder than Words

Now don’t get me wrong, no one is perfect. We all make mistakes or are late making a payment here and there. We all have to deal with financial challenges where our reputation is at stake at some point or another. But remember, it is not what you say that matters when it comes to fixing a mistake. Words don’t hold weight if there is no action behind them. It’s what you DO to resolve a problem that counts in the end. How we handle sticky situations when it comes to money defines how others ultimately decide whether we are trustworthy. For example: You might think I overreacted when it came to the whole eBay debacle, but if I just let the whole thing go, it’s possible that this seller would never accept another bid from me, and Ebay would warn all other sellers that my bids may not be credible. That’s not okay with me!

Let Your Perception Change Your Financial Future

While we can’t control (and nor should we) how EVERYONE thinks of us, reputation does matter. If you want a solid MONEY reputation, put your money where your mouth is, and always do what you say you are going to do - when you say you’re going to do it. And if something changes – say something! People are likely to work with you if you’re upfront and honest.

You’d be surprised, but by truly respecting and valuing other people’s money (including friends, family, merchants & companies), not only will you automatically earn a good money reputation, you will begin to value your own finances more — which is KEY to growing a strong financial future!