SavvySugar

5 Biggest Business Blunders of 2009

SavvySugar — Mon, 25 Jan 2010 06:00:20 -0800

With layoffs, bankruptcies, and declining revenues, 2009 was a rough year for businesses. But some companies' woes were entirely self-inflicted. BNET has compiled a list of the biggest business and managerial blunders of 2009, and no one was spared - from banks to fast food chains to governments, the list is pretty extensive. Here are five of my faves:

Dell misses the mark: In May, Dell launched Della, a women-specific site promoting the new Dell mini netbook. The problem? The site focused almost exclusively on using your computer for recipes and calorie-counting, which, not surprisingly, many women found kinda offensive.
Their foreclosure, Wells Fargo’s gain: In September, a house in Malibu that had been surrendered by victims of Bernie Madoff’s Ponzi scheme was suddenly occupied again, with wild parties being thrown on the weekends. Turns out, a VP at Wells Fargo had been using it as her vacation home.

For three more serious business blunders, keep reading.

Do You Donate to Relief Efforts?

SavvySugar — Thu, 14 Jan 2010 12:00:34 -0800

Haiti was hit by a devastating earthquake on Tuesday, and officials are still picking up the pieces and assessing the damage. Governments and aid agencies from around the world are rushing to help the country and its people, but help isn’t limited to organizations - tons of individuals are also doing their part by making contributions to the Red Cross, UNICEF, and other agencies.

It’s easier than ever to donate to these types of agencies - both the State Department and rapper/activist Wyclef are accepting donations via text message, with the contribution added to your cell phone bill - but is it something you make a habit of?

I'm Asking: What Did You Spend on Holiday Gifts?

SavvySugar — Mon, 28 Dec 2009 14:45:57 -0800

Your wallet may be feeling a little lonely this week after a very busy month, so don't forget to take it out and take stock of the receipts. Eighty percent of SavvySugar readers admitted to spending most of their holiday budget on gifts, followed by nine percent who spent on seasonal entertainment spreads.

How much cash did you throw down in the name of the season? Were you able to keep your spending under the limit you set for gifts? What was the total damage?

Do You Know the Best and Worst Records For Lost Luggage?

SavvySugar — Tue, 01 Dec 2009 14:45:47 -0800

Even if only one bag was lost by airlines all year, if it was your bag then it was too many. Naturally, there's never just a solo bag lost, but, according to the latest Air Travel Consumer Report from the US Department of Transportation, there was a significant drop in "filed complaints, down from 270,00 in 2008 to 208,000 in 2009.

All's not lost as complaints range from the missing and misplaced to the damaged and delayed to carry-on issues, charges, and other grievances. See what you know about the news-making issues!

Take the quiz

Your Two Cents: Is Renter's Insurance Worth It?

SavvySugar — Wed, 04 Nov 2009 06:00:23 -0800

Sure, it's always better to be safe than sorry, but sometimes being safe is costly and troublesome - and turns us off. Renter's insurance, for example, seems a necessary precaution to protect your rental apartment or home. But a recent poll among my friends revealed that even savvy, intelligent women are too bothered by the hassle and the anticipated cost of signing up.

If renter's insurance doesn't seem like a big deal to you, look at it this way: if you're a renter and something happens to your home, you might lose everything, and no one is responsible. Not your property manager. No one. Even in the event of a fire or a flood, your landlord is not legally responsible to cover the damages. Don't take my word for it; read these renter's nightmares and you just might be convinced to get yourself insured. And the truth is, it's actually pretty low-cost - depending on your policy, you could spend as little as $20 a month. So, tell me, do you think renter's insurance is worth the trouble?

Ask Savvy: Should I Reopen My Card After Being Deep in Debt?

SavvySugar — Wed, 21 Oct 2009 12:00:36 -0700

Dear Savvy,

I've just paid off one of my credit cards that was in the Debt Management Program through a credit counseling service, which is something I'm proud of! It's nice to have accomplished that! The only issue is, I got a letter from that company offering to reopen the credit card line since I paid everything off. I'm not 100 percent sure if it'd be a wise thing to do or not, since using credit cards got me into the DMP in the first place!

The upside would be that I'd have more available credit line, which could be a good thing for my credit rating. Since I've already learned my lesson the first time around, I know what not to do this time around, which was to charge without making sure I could pay it off pretty much immediately. The credit limit would be a lot lower than what it was originally, so I wouldn't be able to charge a lot, and it is a store credit card so it'd only work only for that store, and not anywhere else.

The cons would be . . . well, my credit card usage is kind of what got me in my debt situation in the first place, and I'm not so sure if I should be opening up cards so soon. The offer is only for 30 days, as well, so after 30 days, I don't know if I'd qualify for a new credit card due to my history. Should I go ahead and accept the offer to reopen the account and "start" over and be more wise, or should I just let it go?

To see my advice, read more.
Savvy says: Congrats on paying off your credit card! It's great that you made the effort and stuck with it - and that you feel like you've learned the important lesson of spending within your means. Even though you've made great strides in managing your money, I don't think it's in your best interest to reopen the card that triggered your financial troubles.

You say that opening the card will boost the amount of available credit and therefore help your credit score, which tells me that you are the owner of at least one other credit card. Instead of trying to manipulate your score, improve your number by working on paying off other debts and keeping all accounts in good standing by paying on time. Focusing on these habits will help you much more in the long run and keep you from reentering an out-of-control credit situation.

If you need more convincing, consider that you'd be setting yourself for a potentially damaging situation if you end up maxing out your new card, even if the limit is lower than what you had before. Store credit cards are, in general, not the most desirable pieces of plastic to have in your wallet. Aside from their typically astronomical interest rate, they can feed a shopper's rationalization that she's actually saving money by shopping because of whatever points or discounts she gets through using the card.

Get this card out of your head and stay on the right track of building a solid credit score. It takes a bit of self-restraint, but you'll be much better off when you need to borrow money for something that doesn't come in a store . . . like a car or house.

Have a question for me? Ask away by posting your questions in my Ask Savvy group.

Never Include This Number in Your Cover Letter

SavvySugar — Mon, 14 Sep 2009 13:15:36 -0700

Time after time, I've mentioned the importance of quantifying your accomplishments in your resume and cover letter. It's a tip that applies no matter the job or level of position, but there's one particular time you should steer clear of including a number in your cover letter - when you're talking about your age.

I've seen countless cover letters that include a line that goes something like this: "I'm a 26-year old who's a perfect fit . . . ". While you might see your age as an asset, the employer may not. In fact, they don't want to know how old you are and some may even discard your application because of the fact that you mentioned your age; it has nothing to do with your ability to do the job. If you're proud of how many years you have under your belt, keep it to yourself during a job search. It can only damage your efforts.

Musician Gets Revenge Against United For Breaking His Guitar

SavvySugar — Fri, 10 Jul 2009 13:15:36 -0700

Canadian musician Dave Carroll has spent the past year trying to convince United to compensate him for the $1,200 in repairs his guitar needed after being tossed around by baggage handlers. His trip from Halifax and Nebraska included a transfer in Chicago, where the damage occurred. Carroll has ruled out accidental cause because another passenger witnessed the guitar abuse and spoke out in alarm while it was happening - he even notified the United employees on-board, who were anything but helpful.

United had refused responsibility for the damage, but called to discuss the situation when Carroll released an online video and song (United Breaks Guitars) describing the airline's errors. As of last night, at least 600,000 people had already viewed the video.

How Much Did You Spend on Meals and Drinks This Weekend?

SavvySugar — Mon, 27 Jul 2009 04:30:57 -0700

If there's ever a time to fall off the budget wagon, it's on the weekends when I'm faced with too many fun options that involve spending money. Tempted by the creative cocktails and incredible meals that San Francisco has to offer, it's a rare weekend that doesn't involve a spendy night out.

There are a lot of bad things we can say about Mondays, but it does provide a clean plate for getting back on track. How much damage did you do this weekend?

$4,500 For a New Car Could Be Coming Your Way

SavvySugar — Mon, 22 Jun 2009 04:30:23 -0700

Car manufacturers have been holding on for dear life and coming up with creative ways to sustain their businesses during the recession. The economy has already driven major car companies to bankruptcy, and President Obama is close to signing a measure that would afford more Americans the ability to purchase new vehicles and hopefully prevent more damage to the auto industry.

The $1 billion "cash for clunkers" measure would provide credits to car buyers who trade-in their vehicles for more fuel efficient models. Assuming Obama's anticipated signature, car dealers could begin honoring the rebates worth up to $4,500 beginning July 1. Learn more about the legislation when you read more.

Trading in a vehicle getting 18 miles per gallon or less for one getting at least 22 mpg: $3,500 voucher.
Customers could get an additional $1,000 (so $4,500 total) if the new car’s mileage is 10 mpg higher than the old vehicle.
Trading in sport utility vehicles, pickup trucks, or minivans for a new truck or SUV: $3,500 if new vehicle gets at least 2 mpg higher than old one; $4,500 if mileage is 5 mpg higher.

The program makes sense for people driving cars with trade-in values less than $3,500 or $4,500, and the program's critics argue that despite the vouchers, people driving these types of cars won't be able to take on new car payments. Car dealers, however, think the program will lure shoppers in and they plan to combine the government vouchers with other incentives.