Tired of being nickled and dimed by the big banks? Savings hints, advice and tidbits of information for people who aren't interested in banking gimmicks but want a smart way to manage their money.
Wednesday, August 7, 2013
Seven Things to Never Buy New
It pays to buy secondhand, and we’re a country that knows it! We spend about $13 billion a year on used goods and likely save billions more in the process. So, to keep more cash in your pocket, here are seven items never to buy new.
Cars
Auto experts at Edmunds.com say the second you drive a brand new car off the lot it loses roughly 11% of its value. And it continues to depreciate between 15% and 25% each year for the first five years. For a better value, opt for a certified pre-owned vehicle. For example, a great condition 2010 Chevy Malibu Sedan goes for about $16,000, while the 2013 model costs roughly $25,000, according to Edmunds.com’s True Market Value calculator.
Frugal fashionistas know you don’t have to always buy new to look like a million bucks, thanks to high-end consignment shops found online and off. Find designer brands you love — but can’t afford at full price — for up to 70% off at sites like SnobSwap, Karma Couture and even eBay. We found a silk Prada dress that sells new for $750, but is available previously-owned at Karma Couture for $500 less.
Jewelry
Although it may be rich in sentimental value, fine jewelry can lose as much as 10% of its purchase price in the first year of ownership, partly due to hefty markups. Watches depreciate more slowly, at about 5% per year. So if you’re looking for new bauble to add to your jewelry collection, you’ll get a bigger bang for your buck at estate sales, pawnshops and online retailers.
Radio knobs are making a comeback, but lots of other features are headed to extinction.
Recently, Ford made a surprising announcement: It is adding radio knobs to its hi-tech component control system MyFord Touch. That's a retreat from cutting-edge to old technology -- a man-bites-dog scenario you don't often see in the auto business. And don't expect to see it any more often in the future.
Here's the background: In attempting to reduce driver distraction and get a jump on competitors, Ford had introduced a voice- and touch-screen system for audio, navigation, and other functions. But drivers found the new system confusing, and Consumer Reports issued a withering report on its functionality. So Ford decided to listen to popular concern and go backwards: It will now make it possible to control volume and frequency with the twist of a knob. "Familiar and easy-to-use knobs are exceptionally good ways for drivers to control in-car entertainment systems," says Kelley Blue Books' Jack Nerad. "They make for less distraction and less frustration, and that translates into more convenience and improved safety."
Early retirement certainly sounds good. Wouldn't it be nice to go off and do your own thing instead of having to come to the office to crank out another TPS report? Early retirement is also achievable if you save diligently. Here are some simple steps to help you get there someday:
Back off Starbucks. Did you know the average American spends about $1,000 on coffee? I know it's only a few bucks each time, but those little purchases add up. Wouldn't it be nice to have an extra $1,000 in your bank account at the end of the year instead? You can brew your own coffee instead of hitting Starbucks all the time.
Cut the cord. There are a ton of great TV programs that I'm hopelessly addicted to including "The Walking Dead", "Game of Thrones" and "Big Bang Theory". However, I don't even have cable TV. I get all my DVDs from the library. If you want more convenience, then perhaps streaming through Netflix might work for you. Cable TV is ridiculously expensive, and I can't believe someone would pay hundreds of dollars a month for it. Cut the cord and save some money instead. You shouldn't be watching that much TV anyway.
Pay off your debt. The average U.S. household carries credit card debt worth about $7,500. I don't have any credit card debt. It's crazy to owe so much money to the credit card companies. You'll have to pay a ton of interest every month, and that will make it impossible for you to save. Set aside a little money every day to pay down your debt, and get that debt out of your life.
What You Need to Know About Health Exchanges .. the Affordable Care Act
We're months away from cutting the ribbon on the new online marketplace for health insurance, but the vast majority of uninsured Americans -- the very people the Affordable Care Act is meant to help -- still have no idea whether they'll be in the shopping mood or not. According to a recent survey, nearly two-thirds of uninsured Americans say they haven't decided whether or not they'll buy health insurance by the Jan. 1 deadline (even though they'll have to pay a penalty if they don't).
Another 10 percent say they flat out won't buy in at all.
We understand the hesitation. Change is hard enough when it's simple to understand, let alone when it has to do with things like insurance, health care policy, and your own financial and personal well-being.
"People just don't understand how this is going to affect their wallet, what prices are going to be and what this could really cost them," said Laura Adams, InsuranceQuotes.com senior insurance analyst.
Keep Your Home Breezy on a Budget As the summer heat rises, so too will your energy bills, which is why it helps to find alternatives to air conditioning. Here are a few tips on how to save on cooling your home.
First, maximize the cross breeze. Simply open two opposing windows or doors and place a fan at each opening. Make sure one of the fans is facing outward, and you'll be able to get the fresh air circulating, while keeping temperatures down.
Another way to cut the cost of air conditioning is to make your own. To create a DIY A/C, place one or more frozen 2-liter bottles of water in front of a fan. The chilled water will cool the air while keeping your costs low. The bottles of water can be refrozen every night, too.
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Ups to USPS!
When the host of HBO's "Real Time with Bill Maher" was questioned if he really wanted healthcare and the banks “to be run like the Post Office” (meaning "nationalized") he replied:
“I can mail my sister a postcard from California on Monday and it gets to her in New Jersey by Wednesday for .42 cents….. h*ll yeah I’d like it to run like the Post Office!”
Savvy Quote of the Day
"The retail industry has stolen the word 'saving' and redefined it as saving money when spending.
Saving used to mean putting money away in a savings account or in a piggy bank. But, now we must spend to save."
Tim McAlpine President/Chief Strategist Currency Marketing
Savvy Saver enjoys showing all the wonderful things CPCU employees do in the community on the CPCU Blog, loves helping members set up a savings plan that will help them with their financial goals & dreams @ her Brighter than a Bank blog and riding down the highway of life in her Hoopty! (check out her "I love my Hoopty" blogspot!)
