SavvySugar

Take Stock of Your In-Home Media Memberships

SavvySugar — Thu, 01 Jan 2009 07:00:55 -0800

There's no greater time than the beginning of the year to check in with your in-home entertainment memberships and make sure you are getting the biggest bang for your buck and relishing the packages you have signed up for. The upkeep will not only help you maintain your resolve to live below your means, but it will allow you take stock of whether or not your services or habits are sustainable. Check in with the following before the end of the month in an effort to get organized.

Video Store vs. Netflix: Ask yourself if you are an infrequent movie renter and would rather spend the $5 Netflix fee (for one rental per month) for the convenience, or have the option of popping into the quaint rental shop on the way home. If you are a real movie nut explore the Netflix three-at-a-time plan (unlimited rentals per month and unlimited movies downloaded to your PC), which is $17. If you research the right plan you can save on gas and time, and kill late fees. Similarly, if you don't watch the movies that show up in the little red envelope opt to put your Netflix account on hold for three months at no cost until you want it again. Remember the cost looks small, but even the $5-per-month plan adds up to $60 a year (the $17 plan is $204 for a year!). You can always rent DVDs for free - or a tiny fee - at your local library.
Cable and Satellite TV: Do you get your money out of your HBO, Showtime, and an expanded sports package? If so, more power to you. If not, ditch them or call your service provider and let them know you are spending too much each month and would like a better plan for your lifestyle. Your provider wants to keep you as a customer so they will work with you, even if it's just cutting a couple of dollars.
DVR Service and TiVo: Is your TV provider charging you extra for a DVR service you aren't using? Are you paying $13 monthly for TiVo when your cable provider offers a less expensive DVR service? Call them up and check. If you only record a couple shows a month cruise websites like Hulu or network websites to see if the shows stream online or if you can purchase the shows from iTunes for less than the DVR price. Single episode downloads from iTunes are generally $1.99 each.

Source

Cost of Cable Continues to Rise: Are We Wasting Our Money?

SavvySugar — Tue, 27 May 2008 06:43:53 -0700

There was a time when cable was one bill I didn't pay because I simply chose to go without it. I was living in an apartment that didn't have a comfy living room, and I wasn't home very much, so it seemed silly to pay for something that would go unused. My living arrangements have since changed, and my couch is so comfortable that it really does call my name at the end of a long day. And cable? Well, let's just say I'm hardly stranger to LC and Audrina, Serena and Blair, Tom and Padma, Heidi and Tim, or Vinnie and E.

Cable is hardly cheap, especially if you're paying for Internet on top of your cable bill, and there's no sign of these bills going down anytime soon. In fact, it seems the opposite is happening. The Bureau of Labor Statistics reported that cable prices have gone up 77 percent since 1996, and The New York Times points out that cable customers pay an average $60 bill and watch only a fraction of the channels they pay for.

The Times article wonders why more people aren't just watching their favorite shows for free online, and while it certainly seems like a feasible alternative, I enjoy the ability to watch my favorite shows with a group of friends. Are we wasting our money on cable when we have Internet at our fingertips, or is it a justified expense?

The Customer Service Halls of Shame and Fame

SavvySugar — Thu, 11 Jun 2009 08:30:26 -0700

Nobody wants a customer service experience that leaves you swearing under your breath, but these situations aren't exactly avoidable. MSN Money knows how important customer service is to consumers and conducts an annual survey that measures customer satisfaction.

It's named 10 companies that need a lot of improvement in the customer service department and 10 that would be good examples to the companies in the Hall of Shame. It's apparent from the rankings that banks in general could step it up.

Customer Service Hall of Shame

Citigroup
Bank of America
Abercrombie and Fitch
Qwest
HSBC
Time Warner Cable
Capital One
Sprint
Comcast
AOL

To see the companies that offer a happier customer experience, read more.
Customer Service Hall of Fame

Southwest Airlines
Costco
Apple
Whole Foods
Publix
Nordstrom
Amazon
Netflix
Trader Joe's
USAA

Source

Snip, Snip: 12 Little (and Big) Luxuries We've All Cut Back On

SavvySugar — Tue, 24 Mar 2009 09:30:24 -0700

Last week readers shared some of the pre-recession luxuries they've cut back on in the last few months, and I was somewhat relieved to learn we're all scaling back on the same things. While tightening the budget and eliminating your favorite little pleasures isn't enjoyable, there's something reassuring about knowing we're all in this together. What so-called extravagances were the first to go?

Clothes and shoes: It's clear most of you are shopping less, but that doesn't mean you have to wear the same boring threads. Spectra says she's been re-purposing her wardrobe and trying to come up with new looks without having to buy new stuff.
Spa and beauty treatments: Beauty routines have gotten a make under. Facials, mani-pedis, waxes, haircuts and colorings were among the first beauty-related luxuries to go. Many of you have taken to coloring your hair yourself, or trying less pricey alternatives. luna08 says she now visits a local cosmetology school instead of a professional salon. "Eyebrow waxes for $2, mani-pedis for $10, facials for $20. Not a luxe atmosphere, but it gets the job done!"
Take out and eating out: Making dinner at home more and brown bagging it to work is a national fad these days. It doesn't have to be all PB&J though - Smacks83 allows herself to eat out about once a week and carries cash instead of a card so she can see her spending.
Bar tabs: Who can afford the lounge mark up? Most of you say you're going out less. While your wallet may be fatter, one reader reports her waist line is decidedly slimmer from avoiding alcohol!
Coffee: Sorry, Starbucks! Most of you are making drip coffee at home these days and pouring it into a reuseable mug instead of buying your java on the go. It bodes well for the new instant Starbucks packets.

For the rest of the list, read more.

Brand names: Now is not the time for labels. One reader says she now picks up the store brand soda instead of Pepsi.
Fancy cable: Premium channels were the first to go, but many of you report you've canceled cable all together.
Transportation: More of you are hopping on the bus to save on gas and car costs.
Travel: While airlines are pumping out great deals, most of you say you've cut back on travel. pia suggests vacationing at national parks instead of going overseas.
Newspaper deliveries: A number of you say you've cut your daily newspaper deliveries and get your news online instead.
Jewelry purchases: There are plenty of ways to sparkle. GlowingMoon has stopped spending on jewelry and is using extra funds to upgrade her home instead.
Books and iTunes: Many of you say you've cut back on books and downloads. You might consider swapping media with friends by starting a book, movie and music trading club.

Source

6 Ways to Cut Back on Utilities and Household Costs

SavvySugar — Tue, 31 Mar 2009 13:30:24 -0700

Running a household isn't cheap. Whether you're a renter or an owner, you have a collection of other costs - from insurance, utilities, and groceries to cleaning and repair fees. Most SavvySugar readers dish out a minimum of $100 per month on utilities alone. If you are looking for ways to reduce all the dolla dolla bills going out the door, check out some of my household cost-cutting suggestions.

Trade Magazines, DVDs, and Books With Your Friends	Never Home? Consider Stopping Internet, Phone, or Cable	Take Stock of Your In-Home Media Memberships
A Cheaper Way to Clean Your Home	Five Energy Saving Ideas For Renters and Owners	Unplug When You Don't Need Power

I'm Asking: What Luxury Have You Cut?

SavvySugar — Sun, 15 Mar 2009 11:00:40 -0700

It's true what they say: little things do add up. Small luxuries can become very big luxuries when you consider how much you spend yearly. A co-worker recently admitted she's saved a few hundred dollars by doing her own mani-pedis, which used to cost her about $60 a month, since her husband was laid off.

I continue to read stories about people cutting cable, splitting entrees, and naturally, staying in more instead of going out and running up a pricey bar tab. What little luxury was first to go for you?

Source

Ask Savvy: Leaving the Nest Budget

SavvySugar — Mon, 22 Dec 2008 09:45:56 -0800

Dear Savvy,

I moved back in with my parents about a year and a half ago to get my finances under control. I want to move out in the next few months but don't have a clue what my budget should look like. I want to live on my own (or with roommates) and be financially solvent - unlike the last time I was on my own. My current "living with the parents in the suburbs budget" is working great but I don't know how to translate it into a "living on my own in NYC" budget.

Because I have been home I haven't had to pay for groceries, trips to the laundromat, and utilities. I am lost in terms of how much to budget for each of those categories and I don't even know what is the maximum amount of rent I can afford. My current monthly income is about $2,000 a month. I want to be able to save money, continue to pay off my debt but not feel like I'm depriving myself. I also want to figure out if it would be worthwhile to continue living with my parents until I get a raise.

To see my answer, read more.

Savvy says: Since you're unsure of your future expenses, you need to build a spending plan that includes all of your foreseeable costs - the total will let you know whether or not you can afford to move. I'm not sure how much debt you're carrying, but if you have a fair amount of high interest credit card debt or personal loans, you might want to consider paying more of your debt before taking on more expenses. That being said, if you're on track to be debt-free before you leave the nest or will be finished with it soon, here's what I would do.

First thing's first, do some research. Find out what rent will cost in the neighborhoods where you'd want to live by looking online, making calls, and talking to friends. Rent will take up the largest percentage of your income, but you shouldn't spend more than about 30 percent of your income on housing costs. Assuming your $2,000 is after tax income that means you can afford to pay about $600 in rent.

You need to include debt repayment in your future costs, and I would allocate no less than three times the minimum payment. If you're only paying the minimum, you're not really making a dent in your debt. Make a spreadsheet that includes rent, debt repayment, utilities, cell phone bill, groceries, transportation, any personal costs like prescription meds, health insurance, car insurance, car payment, Internet service, cable bill, and savings.

I can't tell you what to enter for each expense, and its likely that not all of them apply, but you can roughly estimate (ask around to friends and family) for each to get an idea of whether or not you'll end up in the black or red each month after covering your basic costs. If the answer isn't the one that you want, I'd continue living at home for a while and possibly consider picking up a job on the side to increase your income.

Source

Maxed Out: $78,000 in Debt and No Mortgage

SavvySugar — Tue, 16 Dec 2008 11:30:22 -0800

This episode of Maxed Out is about Christine and Ross, a couple in so much debt that it's extremely difficult for them to keep things afloat. Christine can't even speak without crying because she's so distraught and stressed over their financial situation. They are the only couple among their friends who are still renting, and their dream is to have a home and children.

Christine is taking fertility medication, which her doctors say isn't working because of her high stress levels, but their first priority should really be paying off the $78,000 in debt they have between them. None of that debt comes from student loans or a mortgage; it's all credit cards, credit lines, and a small car loan. Find out how financial guru Allison Griffiths intervenes when you read more.

Allison discovers that every penny of Ross's income from the first seven days of each month goes toward the $1,157 monthly interest payments they're making. At this rate, it will take nearly eight years and $52,270 in interest until their debt is paid off. Allison instructs them to cut expenses to eliminate their $770 monthly shortfall, and by living within their means Christine and Ross will pay off their debt in half the time and with half the interest payments.

The couple doesn't proceed with Allison's instructions as quickly as she'd have liked, and they're hurting themselves by resisting to consolidate their 14 bank accounts. The $337 in bank fees they pay each month really add up - it's twice the amount they've been spending on entertainment. Eventually, Christine and Ross come around and get on the Maxed Out plan, but the one thing they'll never budge on is reducing their cable plan.

Source

Ask Savvy: How to Manage Money as a Couple

SavvySugar — Mon, 25 Aug 2008 09:30:39 -0700

Dear Savvy,

My fiance and I combined our finances shortly after we got engaged last August, and I am in charge of managing our money. We're getting married in November. Right now, we pay everything we can with a credit card. This includes any bills we can charge (phone, cable, rent) and all our daily expenses. The plan was that every month we would pay off the card. I figured this would make sure that we never overdrew our checking account.

The problem is that every month it seems like we spend a little more than we can send to the card, and over time that amount is really adding up. My credit is very good, and the card we use was originally in my name only, so we have a very low interest rate. However, it was never my intention for us to be carrying a balance on this card.

I'm afraid if we switch to using a check card and paying all bills directly from checking, we'll risk overdrawing the account. But I know the current credit card plan isn't working, because we are just going into debt. I need help!

See my advice when you read more.

You might be managing the money, but there are two of you spending it. No doubt you both have a lot on your plates with your wedding around the corner, so here is a simple plan for you to regain control of your finances.

Open another account just for your fixed, non-negotiable expenses, and immediately transfer the money when you're paid. Set it up so the transfer happens automatically and neither of you will be tempted to spend that money on other things.
Make a spending plan, together. Combining money means you need to communicate about how it's put to use. Because it sounds like you're not exactly sure where your money is going, I would recommend using a money management site like mint.com which will categorize your expenses and give you both a realistic picture of which areas could be targeted to trim costs.
Get cracking on that credit card balance. Once you've gotten a good idea of your coupled spending habits and have come to an agreement on where to cut back, use that money towards your balance. Like you said, it really adds up over time, so be aggressive with it now.
When you've gotten a handle on affording your everyday, expected expenses, begin to build up your savings in a high-interest savings account. Start putting some money toward an emergency fund and fit your monthly savings goals into your overall budget plan to avoid the excuse of not being able to afford to save.

Source

TV's Behind-the-Scenes Salaries

SavvySugar — Sat, 09 Aug 2008 11:01:31 -0700

It takes a lot of people on payroll to make all of the lights, camera, and action happen on TV shows. BuzzSugar filled you in on how much the big moneymakers make on-screen (hopefully you'll do better than me on her quiz!), and I wanted to give a shout-out to those behind the scenes whose roles aren't as visible. TV Guide included some interesting pay facts about how much money these important contributors command. Do any of the numbers surprise you?

$37,005: Minimum rate for director of a one-hour show on network or pay cable.
$2,132: Weekly minimum for a costume designer on a half-hour or one-hour show.
$486: Residual per episode for a writer who creates a new character on an existing show (up to four episodes).
$31,748: Writers Guild minimum for one-hour teleplay.
$2,202: Weekly minimum for makeup artist.

Check out four more behind-the-scenes roles and their pay when you read more.

$600-$800: Average daily rate for TelePrompTer operator.
$1,690: Weekly minimum for videotape editor of a scripted show.
$350: Average daily rate for entertainment-news show field producer.
$1,000: Average daily rate for Steadicam operator.

Source