personal finance

Coronavirus: An object lesson.

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This isn’t a post about or whether our country’s belated reaction to the coronavirus is in fact an overreaction. I’m not writing about whether or not we should self-isolate*,  or whether schools and public venues should have closed, or whether we’ve lost our collective damn mind in terms of toilet-paper hoarding.

I just want to point out that frugality (or intentional living, or whatever you want to call it) positions us to outlast both minor and major emergencies. Personally, I think that the coronavirus is both minor and major.

It’s minor (thus far, anyway) in that relatively few people are actually sick. If the epidemiologists are correct, “flattening the curve” may keep the medical system from being too overwhelmed to provide care for all.

It’s major in that many people’s livelihoods (both regular jobs and side hustles) are being hammered. When your finances are already chancy, losing a couple of weeks’ worth of work doesn’t just hurt – it might actually take you down.

Which brings us back to intentional living. If you were able to reduce/pay off your debt and build an emergency fund, then you are now better-equipped to handle the coronavirus troubles.

Facing reduced hours at work or even outright layoff because customers have disappeared? No longer able to pick up those extra 10 hours a week walking dogs or selling hot dogs at the basketball arena? Or maybe your job hasn’t gone away, but you now need to pay for weeks of childcare due to school closure.

That stinks, to be sure. It won’t be fun to use some (or all) of your EF to make up the difference. Instead, try thinking of it this way: I’m very glad I took the steps to build this cushion. And when this is over, I’ll get back to rebuilding.

 

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5 money lessons from “Terminator: Dark Fate.”

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Sometimes I go to the movies to be intrigued, uplifted and educated. And sometimes I go just to watch a whole lot of stuff get blowed up real good.

You can guess into which category “Terminator: Dark Fate” falls.

This entry in the “Terminator” franchise picks up right after “Terminator: Judgment Day,” and posits that Sarah Connor (a deliciously well-aged Linda Hamilton) and her son were able to prevent Skynet from taking over the world.

However, things still go very badly indeed for a young Mexican auto factory worker named Dani Ramos (Natalie Reyes), who’s targeted for seemingly no reason by a sinister new brand of Terminator called a Rev-9 (Gabriel Luna).

But there’s always a reason, right? And there’s always a protector. In this film it’s Grace (Mackenzie Davis), a seriously buff and butt-kicking warrior from the future. Eventually Arnold Schwarzenegger shows up again, too, and he’s given a couple of funny bits along with the flash-bang stuff. (His deadpan descriptions of why he’s a perfect mate and the difference that the right blinds can make to décor are extremely amusing.)

“Terminator: Dark Fate” isn’t perfect. In particular, I wish that director Tim Miller (“Deadpool”) had trimmed some of the fight scenes. We get it: The Rev-9 can be sliced and diced and shredded but he always comes back for more. Stahp with the CGI, already!

Still, I was absolutely entertained – and it’s nice to have a film in which three of the four badasses are women.

Now let’s talk about money.

 

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Giveaway: Stacy Johnson’s retirement course.

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Do you know whether or not you’ll be able to retire comfortably, or at all? According to the Federal Reserve Bank, 25 percent of U.S. workers have neither pension nor retirement savings.

Now that’s scary. And just in time for Halloween!

Instead of the defined benefit retirement plans that many of our parents received, most U.S. residents rely on things like 401(k)s and individual retirement accounts (IRAs), which can be fee-heavy and which require you to invest your own money. Some employers offer a match, but mostly it’s on you.

Social Security is available for most of us, but it likely won’t be enough to live on. (And in fact it may not be fully funded by the time you retire; see Liz Weston’s recent article on this topic.)

Oh, and there’s always personal savings. Right? Or wrong. Some people don’t have a dime in liquid savings. Worse, some of them don’t have any kind of retirement plan other than Social Security.

Stacy Johnson, founder of Money Talks News, is concerned about two big issues surrounding retirement in this country: skyrocketing expenses and a shrinking safety net. That’s why he created a “retirement boot camp” for people aged 40 and older: a 14-week video course designed to teach you how to judge what you’ve already got and accomplish what you’ll need to have a secure, comfortable retirement.

Stacy is a certified public accountant and has also earned licenses in mutual funds, life insurance, stocks, commodities, options principal, securities supervisor and real estate. He has generously donated a copy of “The Only Retirement Guide You’ll Ever Need” for me to give away on my site. Who’s in it to win it?

 

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How to get free stuff at the dollar store.

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Editor’s note: Some readers ask me to post periodic “read me elsewhere” updates. It’s been a while (errr, three months) so here is some of the stuff* you missed.

What’s better than finding name-brand stuff at the dollar store? Not having to pay for it, that’s what. In an article for Money Talks News called “The secret to getting dollar store items for free,” I show how shopping/coupon bloggers do the legwork for you.

Specifically, they match virtual coupons – plus any available rebates – to items found at Dollar Tree, Family Dollar and Dollar General. While the lineup varies from week to week, you can expect to find free stuff regularly (and almost-free stuff, too).

Some recent examples of completely free items: Excedrin, Purina Dentalife dog treats, Atkins frozen entrees, a three-bar pack of Zest soap, Airborne products, 3M Command Hooks, Splenda sweetener, Bounce or Downy dryer sheets, Keebler crackers, Theraflu, Advil PM, Super Pretzel Bites, Breathe Right strips, CeraVe diaper rash cream, Bic razors, Texas Pete hot sauce, Seeds of Change sauces, Suave Kids hair care products, A&D Ointment, Sucrets, Alka Seltzer Allergy, and Frigo string or shredded cheese.

The bloggers also spell out any rebate deals. Sites like Ibotta, SavingStar and Checkout 51 offer cash back on an ever-changing list of products. With coupons plus rebates you might even earn money on certain purchases.

Dollar store coupon policies vary, of course. For example, Dollar Tree lets you use a coupon with a face value of more than $1, but it will not return the difference to you in change. Family Dollar, on the other hand, will not accept a coupon with a face value greater than the price of the item. Know your store’s policies before you shop.

It’s unlikely you could take care of all your household’s needs this way. Your mileage may vary in other ways, too. Some dollar stores are smallish. Some don’t have frozen or refrigerated items. And if you live in Alaska, you don’t have personal access to dollar stores at all.

In other Money Talks News (see what I did there?):

 

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FinCon19 wrap-up, and a related giveaway.

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I’m back, sort of. Before attending FinCon19, I spent five days in Washington, D.C. with my daughter, who had five nights’ worth of free lodging. (Love those travel rewards credit cards.)

We mostly* hit the free museums, gawked at the architecture like a couple of tourists, and ate nearly every meal at the hotel (yay free breakfast!) and from our fridge (it was a full-kitchen Marriott Residence Inn, and there was a Safeway about five blocks away). This frugality allowed us to indulge in Thai and Ethiopian restaurants the rest of the time.

Then it was off to FinCon19 (aka the 2019 Financial Blogger Conference), where I ran nonstop for four days: attending programs, meeting with a bunch of writers and potential employers, and moderating a panel on why freelancers should quit undervaluing their worth.

The conference was a bit overwhelming, especially compared to the first-ever FinCon, which had fewer than 200 participants. This time around it was 2,500 attendees, and the noise and the swirl left me feeling pretty worn-out. At times I would dip out of the crush and head back up to the hotel room for 10 minutes’ worth of peace.

Overall, though, it was an absolute blast. I hung out with old friends and met some new ones, shared tips with newbies and was given great advice by veterans, attended some receptions (especially the AARP one, which was crammed with amazing women writers), and most of all, felt like a professional again.

I’ve been making a living as a writer for 35 years. Living way up in Anchorage makes me an outlier, though, far from easy access to writer meet-ups. Too, I tend to isolate myself: Sometimes I need help, or advice, or simple fellowship but don’t reach out to others.

(About that last: Had a very rewarding chat with Jackie Lam of Hey Freelancer and Sarah-Li Cain of Beyond The Dollar, who both told me to Facebook-message them any time I’m having One Of Those Days. Bless their hearts.)

Bonus: The conference yielded a moderate** amount of swag for a future giveaway, plus a very nice stand-alone item that I’ll be giving away at the end of this article.

 

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Back-to-school shopping: Kids under pressure.

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Who among us has ever heard – or said! – something like this during the back-to-school shopping season:

“You don’t understand, Mom/Dad – everybody is wearing/carrying [expensive item] this year! Do you want people to laugh at me?”

Back in the day, you just knew that having the right jeans would determine the course of your school year. Having a parent overrule your choices felt devastating – especially if it really did make you the target of your school’s mean girls or rude dudes.

Right now, your kid might be pleading for a new smartphone or a pair of shoes that cost more than the rent on your first apartment. Remembering our own school days is one reason that our kids have a pretty good chance of getting at least some of what they want. (More on that in a minute.)

Another reason? Social media.

Not only are young people checking out their classmates’ social media updates and haul videos, they’re exposed to “an entire army of influencers telling your child what they ‘need’ to have this year,” according to Kelsey Sheehy of the NerdWallet personal finance website.

NerdWallet recently surveyed a couple of thousand parents on the subject. Six in 10 respondents said their kids are influenced by social media; slightly more than that (67 percent) said their children’s friends were major influences.

And just over half (51 percent) of the parents caved to the pressure and splurged. I can’t blame them. Much.

Caving is potentially self-destructive, with regard to family finances, and potentially setting their kids up for Entitled Monsterhood. But it’s also understandable.

 

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7 free financial resources.

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My buddy Cameron Huddleston’s new book, “Mom and Dad, We Need to Talk: How to Have Essential Conversations With Your Parents About Their Finances,” is a guide to negotiating that potentially awkward and/or painful subject of your parents’ finances as they age. (She recently sponsored a giveaway of two copies.)

In conjunction with the publication of her book, Huddleston has created a pair of great (and free!) financial resources.

The first is a document called the “In Case of Emergency Organizer: A Fill-in-the-Blank Financial Inventory to Give Your Loved Ones the Information They Need,” and it’s one-stop-shopping as far as financial information is concerned.

This PDF is write-able, i.e., you can type into it from your computer, tablet or smartphone. Then you can either print it out or send it as a document to your kids or whoever needs to have this info. Or you can print it out as a blank document and fill it in with a pen. #oldschool

Obviously you’ll need to lock it away safely, and make sure the person to whom you send it is careful with the document as well. After all, it will contain your Social Security number, bank account number(s) and other identifying information. But it sure beats your kids (or whoever) scrambling to find this stuff during a crisis.

Consider filling one of these out yourself as well, even if you’re young and hale. Suppose you became very ill, or were involved in some sort of accident: Would your relatives, or even your partner, be able to deal with things like temporarily paying your bills or finding your health insurance information?

 

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To (bleep) with the (bleeping) latte factor.

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The “latte factor” – the notion that if you don’t spend five bucks on coffee every workday you’ll have a million dollars 40 years from now – has gotten on my nerves since the moment I first heard it.

The basic idea is kinda-sorta accurate: If you spend $5 here and $5 there without paying attention, that’s a whole lotta opportunity cost. Think of what that whatever-it-is-per-week could do for you elsewhere.

So yes, that’s factual. But it’s also fictitious, as personal finance writer Jean Chatzky pointed out in a taut, blistering article called “Newsflash: The f***ing latte is a f***ing metaphor.”

“(Coffee) is just an example of something you don’t have to buy, but that you choose to buy. It’s a discretionary purchase that you make with your discretionary income,” Chatzky wrote.

“The real point here – the one I tell parents is the most important financial lesson to instill in their kids – is that money is a limited resource. And we all have to choose how we want to use it.” [emphasis added]

Hear, hear, Ms. Chatzky, and may I buy you a Grande misto an inch of 2% milk and two Sweet’n Lows at the Financial Blogger Conference next month?

 

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Amazon Prime Day: Black Friday in July?

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Have you taken advantage of Amazon Prime Day, or are you ignoring it completely?

If you were interested in buying a Kindle, an Echo speaker, a Fire Tablet or TV stick, a Blink security camera or any other tech that Amazon makes, this could be a good time to do it.

(You have until 2:59 a.m. Tuesday, July 16, to make up your mind.)

According to Cnet.com, some prices hit rock bottom during the sales promotion. That Fire TV stick was just $15, and the Echo Show 5 was priced at $50. In addition, while the Amazon Echo dropped down to $22 (from as high as $50), you could get an Echo for free if you bundled it with stuff like Ring Video Doorbell Pro or the AmazonBasics microwave.

Non-Alexa household, here. In fact, I have to admit that I spaced the date until Amazon Prime Day was more than half over. And I’m okay with that, because I agree with Mark Hamrick, senior economic analyst with Bankrate.com: Any spike in sales is good news for Amazon shareholders, “but not necessarily for consumers as a whole.”

The hype surrounding Amazon Prime Day is not unlike that of Black Friday (or Gray Thursday, or Cyber Monday). We’re being set up for a major, collective case of FOMO (fear of missing out). What if we miss the best deals ever? What if everyone else gets the cool gear and we don’t?

Yeah, and what if the prices aren’t as good as they look?

 

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Saved Savings Challenge: How did you do?

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I decided to count my Saved Savings Challenge monies right up until July 1. The grand total was:

 

$286.02

 

That’s a lot more than I thought it would be. That’s because I figured since I don’t do much shopping, my saved savings wouldn’t be super-high.

Shows what I know.

Among the savings were some obvious ones: using coupons, cashing in Walgreens Balance Reward scrip to pay for needed purchases, getting a payment from the Mr. Rebates cash-back shopping site.

Also some that wouldn’t work for everyone: using a rewards credit card that gives 2 percent cash back for my purchases, picking up a package of Reynolds Oven Bags for $1 at the thrift store, ordering discounted gift cards on the secondary market (saving just over $51). Not everyone has access to thrift stores, or wants to deal with discounted gift cards, or can’t/won’t) get a rewards credit card.

Depending on whom you ask, at least two of my hacks might not be considered “saving” at all. For example, I included the money I didn’t spend after talking myself out of going for fast food* on several occasions. And I was tasked to review a local musical that I’d otherwise have paid to see, thereby “saving” on the $28 ticket. (Getting paid to go, too.)

 

 

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