SavvySugar

Do You Feel Like the Economy Is Getting Better?

SavvySugar — Thu, 19 Nov 2009 06:00:15 -0800

Word on the street is that the worst of the recession is over. Federal Reserve Chairman Ben Bernanke declared as much in mid-September, and the economy actually grew instead of shrinking in the third quarter of this year. So, in theory, things should be on the upswing.

But firsthand experience tells us maybe not so much. Consumer spending is down over last year as we all try to keep our holiday spending in check, and there hasn’t been much new job creation.

In fact, I’m still hearing stories from friends, state employees in particular, who are experiencing layoffs, pay cuts, and involuntary furloughs. What has your personal experience been?

7 Small Ways to Save Big When You Eat Out

SavvySugar — Fri, 16 Oct 2009 08:30:19 -0700

People are definitely eating differently thanks to the recession. But cutting food costs doesn't mean you still can't enjoy eating out. Tough times for consumers means empty tables at restaurants - and to fill them, restaurants are making menu changes and slashing prices, or offering discounts. Just take a look at how you can save on your next meal out.

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Are Hot Waitresses a Sign of Tough Economic Times?

SavvySugar — Mon, 12 Oct 2009 06:00:19 -0700

Economists love to find patterns among their data and analysis; some of them are easy to get behind, and others are kind of a reach. Hemlines are the most talked about economic indicator - typically, hemlines rise during tougher times. The Great Recession brought out a whole bunch of economists sharing alternate indicators like fraying elastic on men's underwear, the increase in long distance relationships, and even the Hot Waitress Index.

According to Time, the Hot Waitress Index follows the theory that an abundance of attractive waitresses in big cities are a sign of tougher economic times. It assumes that when things are looking up, these women have access to other opportunities like marketing, modeling, and hosting parties. Have you seen evidence of the index during the recession?

Source: Flickr User Loimere

How Would You Rate Morale at Your Workplace?

SavvySugar — Fri, 18 Sep 2009 08:30:57 -0700

It's tough for employees to keep their chins up and maintain rah rah attitudes when their colleagues are receiving pink slips and their companies keep making budget cuts. Sustained economic related stress at work has pushed job satisfaction increasingly lower, and according to a new survey from Workforce Institute at Kronos, morale is suffering at a large percentage of companies that have gone through layoffs. How would you rate morale at your workplace?

I'm Asking: How Has the Recession Affected You?

SavvySugar — Tue, 15 Sep 2009 12:00:26 -0700

Some of us have fared the recession better than others, but it would have been hard to escape its impact altogether. Whether you've had to work longer hours because of a reduced workforce, endured salary cuts, job loss, ran into trouble with your mortgage or ability to pay your bills, the recession has touched the lives of most Americans. How have you been affected by the economic changes?

7 Guidelines For First-Time Home Buyers

SavvySugar — Tue, 15 Sep 2009 04:30:22 -0700

Just about a year ago, our financial system as we knew it was collapsing - Wall Street was in shambles. Things kept getting worse in pretty much every corner of the economy, and we're still trying to figure out whether or not the country has reached a state of recovery. The housing market has been particularly tumultuous, but many new buyers are taking advantage of lower home prices and finding themselves in escrow for the first time.

Home-buying is a different game than it used to be, so The New York Times' Ron Lieber gathered a list of seven suggestions for navigating the new housing economy.

Start with the basics. Lieber lays the foundation for conservatively getting into the market and says, "Put 20 percent down, so you have less of a chance of owing more than your home is worth if prices fall again. Get a fixed-rate mortgage, so the biggest part of your monthly housing bill remains stable." On top of that, he recommends spending no more than about 35 percent of your pretax income on mortgage, property tax and home insurance payments.
Consider your income. Income overconfidence may have had something to do with the mortgage mess, but Princeton economics professor Harvey S. Rosen thinks “People can, on average, make reasonably good predictions of their future incomes and act on them in sensible ways by buying bigger houses."
Bow to unknowns. Financial planner Bobbie D. Munroe encourages her clients, especially the younger ones, to model their budget in three ways: with both spouses working full time, one working part time, and one staying at home for a few years (and maybe even practicing living on one income).

See the four more guidelines when you read more.

Map out expenses. Financial planner Dennis G. Stearns "estimates that owners of a newer home that do some work for themselves but contract major work out to others will pay 3.6 percent of the original purchase price annually for maintenance and 4.5 percent if it’s an older home."
Buy best (or cheapest). Financial planner Michael Kalscheur "suggests buying the dream house you covet (if you can afford it) or an inexpensive starter house but not anything in the middle." He reasons that buying the entry-level home instead of the second place home will allow you to save enough money to buy what you really want down the road.
Stretch the house. Stretching out your tenure in a home by making periodic upgrades might be more sensible than ever moving from that first home.
The eight-hour rule. Lieber advises, "If an impending loan has you stretching for the Ambien, it’s a pretty good sign that the loan is a bit of a stretch as well." In other words, sleep on it before making any decisions.

12 Recession Lessons to Remember

SavvySugar — Mon, 14 Sep 2009 08:30:03 -0700

The Federal Reserve's latest survey of businesses around the country shows the US recession might be over. The recovery is projected to be a slow one and the economy is still fragile, but we can file this piece of news in the hopeful column. Recession or not, we should continue to follow the many lessons from these times of economic uncertainty to keep our financial houses in order - in good times and bad.

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Your Two Cents: Is There a Cupcake Bubble?

SavvySugar — Tue, 08 Sep 2009 13:15:57 -0700

Here at Sugar HQ we're crazy about Kara's Cupcakes, but it seems everyone has their preferred cupcake supplier. From Sprinkles, Crumbs, and Magnolia to the smaller businesses that bake up delicious minicakes with fluffy icing, stores that profit from a cupcake craze have popped up like frozen yogurt shops over the past few years.

Their appearance has become so noticeable that one economic writer wonders if cupcakeries are the bulk of a bubble that's waiting to pop; he questions the durability of the boom, the relative expense of cupcakes, and fears it's a reactionary trend without staying power. What do you think - is there a cupcake bubble?

Source: Flickr User Darwin Bell

Stores See More Shoppers Ditching Goods at Checkout

SavvySugar — Wed, 02 Sep 2009 10:30:08 -0700

The other day, I was waiting in the checkout line when I found myself reaching into the grocery cart to restock something I didn't really need. The item was something I'd purchased in the past and didn't particularly enjoy, but it was on sale and I thought it couldn't hurt to give it another shot. Once we reached the register, I realized the likelihood of using it and actually being satisfied was slim to none.

According to the Associated Press, more shoppers are rethinking their cart's contents once they reach the checkout line. It might seem like a hard thing to measure, but store managers have noticed an increase in the time it takes for workers to restock the abandoned items. Joel Bines, a director at AlixPartners, a turnaround consultant, surmised that people "want to be in the act of shopping, but they don't want to be in the act of buying."

Have you been ditching items at checkout once you evaluate your wants vs. needs?

Where It Costs Less to Own Than Rent

SavvySugar — Thu, 27 Aug 2009 10:30:26 -0700

We got some good economic news during the past week with announcements that July's new and existing home sales jumped significantly, beating analysts expectations. While buying a home isn't the best choice for everyone and not every American considers home ownership part of the dream, lower prices have made it an option for more people who want it.

Because the market has sunk deeply in certain areas, owning a home can cost nearly the same as renting. BusinessWeek and research firm Reis discovered that it actually costs less to own than rent in Detroit and Pittsburgh, and they found 20 other metros where renting costs almost the same as buying. It doesn't look like they took into account the added maintenance expense that comes with home ownership, so keep that in mind when perusing the results.