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Archived Articles: Money Matters:
from the fall 2008 issue:
Tightwad, responsible, or admirable? Which one of these terms would you ascribe to someone who seeks to save money? Would your spouse pick the same word? Attitudes toward spending are one of the major areas of conflict between spouses. Those who are prone to impulse buying are seen as irresponsible by those who carefully plan their purchases according to their budget allocation. From the perspective of the ones who see money as a means to buying whatever gives them pleasure, people who go out of their way to save money are tiresome. Each one would view the other extreme as compulsive. Where would you find yourself on the range between extreme saver and spender? Take the quiz below to find out.
1. You want a caffeine fix while away from home, so you: a) pour a cup of coffee from the thermos you brought along from home; the home brew comes out to 40 cents a cup. b) get a cup for $1.50 at a bagel store. c) pick up your daily cup of Starbucks for $4.
2. When you go shopping you: a) review store circulars to find which place has what on sale and bring just the amount of money you plan to spend and along with store or product coupons. b) may look over a store’s ads then grab a credit card c) don’t bother with circulars. What’s the point when you will see what’s in the store for yourself anyway? You bring at least 2 credit cards; you don’t want to miss a buying opportunity just because you’ve hit the max on the first card.
3. Your mode of operation on shopping for a pair of walking shoes is: a) staying focused on what you need, ignoring all the dress shoes, and looking at the price tags before you even consider a pair as a possible purchase. b) looking for a comfortable pair that fits well but also trying on a pair of pumps in yours size that is within your price range and a basic you know you will use.. c) trying on whatever catches your eye and buying whatever looks good, regardless of price or present need; after all, you never know when that pair of lilac suede ballet flat will just make your outfit.
4. A designer name on something indicates: a) you’re paying too much for it. b) it is more expensive but may be better than one without, so it is worth buying on sale.. c) you made the right choice because the name on the item tells the world you have good taste.
5. When you feel the need to cheer up, you: a) do something constructive that will make you feel accomplished and thrifty like clearing the yard. b) treat yourself to a bit of refreshment (low fat if watching your weight) c) treat yourself to a little something like a cashmere sweater, earrings, or French perfume sold in tiny bottles.
6. A trip to the city means an opportunity to: a) take advantage of the many free attractions available. b) an excursion out that may include a bite out and some browsing. c) a chance to shop at some of the most fabulous stores.
7. Your car got splattered with mud, so you: a) get out sponges, cleanser, buckets, a hose, and your vacuum, roll up your arms and get to work. b) pull into a car wash that advertised an $8 special. c) get the works for $195: washing, detailing, simonizing (whatever that is) and waxing, which reminds you to book a waxing for yourself. Your car should look good but not better than you.
8. Your car is out of commission for a week while your mechanic awaits the part that needs to be replaced. You work out your commute to work by: a) finding out which one of your coworkers you can go along with and offer to repay the favor or even form a carpool once your car is back. b) taking public transportation or car service to get to work c) taking the week off and seeing this as a perfect opportunity to take a vacation; after all, you can’t get to work without your car, so your boss would surely have to give you the time off.
9. Vacation conjures up the following images: a) walking, bicycling, picnics, and attractions without entrance fees. b) a place away from home reachable by car, motels, interesting places that are not tourist traps. c) planes, exclusive hotels, elegant cuisine, luxury shopping,
10. Shopping at Wal*Mart is: a) a good idea so long as you keep focused on buying only what you need and resist buying what you don’t just because the price is low. b) a great choice for saving on certain grocery items and finding accessories inexpensive to treat yourself to. c) not what I do.
11. When you think of dinner, the next thought is: a) what you have in your refrigerator and freezer to be cooked b) what you can pick up that is fast and easy c) a new restaurant
12. You are contributing a fruit platter for a shower, so you: a) select the fruit and cut it up, arrange it, and wrap it up –cost $15. b) pick up some precut melons and berries, so you don’t have to do any cutting just arranging and wrapping –cost $28 c) phone in an order for one be delivered; that’s $55 for the platter plus $7 for delivery
13. When a hem falls on your skirt, you: a) sew it up yourself. b) find a seamstress to sew it for your. c) toss it into the back of the closet and buy a new one; it’s obviously a sign that you should.
14. Your view on manicures: a) pay someone to paint my nails? Get real! b) something to treat yourself to for special occasions. c) standing appointment every week are essential.
15. You get a tax refund of a thousand dollars, so you: a) put it in a bank account and consider possible investments. b) use half to splurge on a purchase normally beyond your budget and save the rest c) go shopping and then out to eat at the most expensive restaurant you can get to.
16. There’s a book you really want to read, so you: a) put in a request for it at your library; you can enjoy reading it as much a month later as you would now. b) check for the lowest price on it online to get it delivered within the week. c) find a full-price bookstore that has it in stock so that you can get it immediately. Who wants to wait?
17. It’s your friend’s birthday, and you surprise her with: a) a homemade cake in her favorite flavor and a card b) a dinner for the two of you. c) a party for 50 of her friends at an elegant restaurant.
18. An enjoyable date: a) does not have to cost anything if you skip the overpriced drinks and places with admission charges. b) often does cost something, but the real measure is the conversation c) is one that cost a minimum of three figures.
19. Your selections of dishes for your home would be: a) practical, inexpensive, and replaceable, as they are bound to break down the road. b) something you like that won’t break your budget even when it breaks eventually, though you will try to get something not too delicate. c) the height of elegance to reflect your refined taste; only the finest brand name china is fit to your grace your dinner table.
20. Your view on credit card interest is: a) it should be avoided above all, even if that means always paying cash. b) it may unavoidable if unexpected expenses have to be covered. c) what has to be paid each month as part of the minimum payment on the statement.
Make sure you answer each question honestly. Don’t have anyone peaking over your shoulder while you mark your choices, so that you incline toward what you believe would be expected of you. Take 3 points for each A you select. Take 2 points for each B you select. Take 1 point for each C you select.
A score of 20-27 indicates that you view budgets the same way some do deadlines – as something put in place just to be broken. With such spending tendencies, you could find yourself in debt even with a substantial income. If your score is 53-60, you are a cautious person who can be counted on to stick to a budget. You should be able to achieve goals such as owning a home, educating your children, and having enough saved to retire into a comfortable old age. But you would likely not be able to tolerate someone who buys first and thinks of bank balances. If you score 37-43, you are quite in the middle of the range between spending and saving. However, there is not just a single center. If you score 28-36, then you have a tendency to some extravagance, which may need to be checked if your income does not keep pace with your tendency to spend. If you score 44-52 you have a tilt toward thrift which should serve you well in keeping on a sound financial course, though you would not be strictly rigid about saving all the time.
A person who is basically centered but tends to give in to strong temptations to spend could be counterbalanced by a spouse who tends toward the other end. While opposites may initially attract, two people at opposite ends are likely to clash because their perspectives are fundamentally different, which would make it very difficult for them to come to an agreement about their finances. On the other hand, the middle of the road individual, who is conscious of both the need for budgeting and the temptation of treating oneself with something extravagant is probably the best choice for either extreme. Someone who is in the center can possibly curb the tendency of the spendthrift or influence the saver to relax the virtue of thrift when appropriate with a sympathetic understanding of the forces that drive another into more extreme behavior.
From the summer
2009 issue by Ariella
Brown “How was
your
summer?” That’s the question as inevitable at the beginning of
September as the
“How was your Yom Tov?” question is after any of the
holidays. For many summertime is synonymous with vacation
time. But the high cost of travel, lodging,
and meals out, on top of admission charges for attractions can quickly
add up
to several hundred or even thousands of dollars to the price of getting
away If that is beyond the reach of your budget
for this summer, you can still enjoy some time out with day trips to
local
places. Steer clear of tourist trap attractions
like the Empire State
Building Observatory and New York Sky Ride combo that costs $47 for a
diversion
of about a half an hour. Such overpriced amusements are not intended
for smart
New Yorkers who can stretch the amount of that single admission to
cover the
cost of admissions to all the of the following: a world-famous zoo,
botanical
gardens, kayaking, exhibits, state park attractions, historical sites,
ferries,
and even ice skating. You can adhere to a budget of $10 and below for
each
admission by visiting the attractions in New York and New Jersey listed
below. Free Admissions in New York Wednesdays
in the Bronx Wednesday
is
the free day at the world-famous Bronx
Zoo, located at Fordham
Road
and the Bronx River Parkway. But the wording at http://www.bronxzoo.com,
suggests an obligation not to enter without paying:
“Wednesday admission is a
pay-what-you-wish donation. Suggested donation is $15 for adult,” which
is the
same as the general admission ticket on any other day.
Special rides and attraction are extra; they
range in price from $2 to $5 each.
There
is parking available at the zoo for $12, but it sometimes is no more
convenient
than the free parking available on the neighboring streets. The number
to call
is 718-367-1010.
If your love
of nature extends from fauna to
flora, make an early start of your Wednesday and continue on with a
free visit
to the New York Botanical Garden nearby. A Wednesday walk
down garden paths Wednesday is
also the free
day for grounds admission at the New York
Botanical
Garden, a
250-acre landscape containing ,an expansive native forest
and 50 distinct gardens,
located at
Bronx River Parkway and Fordham Road, Bronx, NY 10458. However,
do bear in mind that “grounds only”
means just that; entrance to the conservatory rock and native plant
garden, and
the tram tour. The usual fee is $6
for the grounds only; a pass that includes entrance to all the above is
$20. Parking is
available onsite
for $12, but it is usually possible to find free street parking not too
far
away. The number to call is 718-817-8700.
For automated directions, call 718-817-8779 or go to the site: http://www.nybg.org/.
A Tuesday turn
in Brooklyn
At
the
Brooklyn Botanical Garden, located
at 1000
Washington Avenue, Brooklyn, NY 11225, |the free day is Tuesday. The regular admission
charge is $8 for
adults. While the
52-acre Brooklyn
gardens are far smaller than the Bronx ones, there are beautiful blooms
to be
seen in the rose garden, and the conservatory entrance is included. There is parking available
for a feeat 900
Washington Avenue. It is usually possible to find street parking in the
area. Call
718-623-7200 or visit http://www.bbg.org/abo/ to find
at what is in flower at the time you plan to visit.
Enjoy ocean
breezes and great views You may not
be able
to get a free lunch, but you can have a free cruise.
A ride on the Staten Island Ferry between the
Whitehall Ferry Terminal, also known as South Ferry,
in Manhattan and the St. George Ferry
Terminal in Staten Island costs nothing.
During the trip you can enjoy some of the same
fabulous views that the
pricier trips offer, including the skyscrapers and bridges of lower
Manhattan,
Ellis Island, and the Statue of Liberty.
On weekdays, between
6:00AM-
9:30AM and 3:30PM-8:00PM, there is service every 15 to 20 minutes and 30 or 60-minute service at
other times. On
weekends, service is provided every 30 minutes from 9:00AM-7:00PM on
Sundays. You can
view the schedule on
the DOT website: www.nyc.gov/dot. Do note that cars have not been
allowed on
the ferry since 2001, and if you’re coming from the Manhattan end, you
had best
come by public transportation as there is no public parking at South
Ferry. You
can also learn more about
the history of the Staten Island ferry
at http://www.siferry.com/. Kayaking in
the Hudson The New York City Downtown Boathouse is located in the Hudson River Park, and has a permit from the Hudson River Park Trust to operate in the park. For the 2009 season all locations of the boathouse will be open from May 16th to October 12th. The weekday evening programs at Pier 96 will run from June 15th to August 28th. All activities at the boathouse are completely free. Equipment is provided. You must know how to swim, wear a life jacket, abide by the rules, and sign the liability waiver. Walk up kayaking on weekends, holidays, and occasional weekday evenings from 5PM-7PM is available at three locations with varying amenities: Pier 40 at Houston Street, Pier 96 at 56th Street, and 72nd Street in Riverside Park. Piers 40 and 96 facilities include a changing room and lockers, though you are advised to bring your own lock. Pier 40 offers showers, while Pier 96 only offers running water. The 72nd Street location lacks both changing rooms and running water. The site to go to is http://www.downtownboathouse.org. No phone number is provided,
but you can
write to Box
20214 West Village Station, New York, NY
10014 or email info@downtownboathouse.org with your questions.
I include two cautionary notes.
The kayaks are described as “self-bailing,” which
means you don’t have
to worry about the water flooding into the boat but also that your seat
will
inevitably get wet. Consequently,
most
people probably don their swimsuits for this activity.
One more thing: this is
the only one of the places on this list that I have not personally
checked out,
so I cannot offer my own view on the experience. An interesting island Among New
York’s
national parks is Governors Island
National Monument, which reopens for the Season May 30, 2009.
Weekend
visitors to the island will be able to tour areas of the National
Historic
Landmark District on their own and can choose from a variety of
activities,
such as guided introductory tours, living history events, children's
programming,
concerts, art exhibits, and lectures. Friday - Sunday, May 30 - August
30 you
could join a National Park Ranger or Volunteer for a 45-minute program.
Programs are offered at 10:25, 11:25, 12:25, 1:25, 2:25 and 3:25. This is absolutely free,
as is the ferry ride
from South Ferry that is the only means of access to Governors Island. For more
information and schedule of events
visit http://www.nps.gov/gois, or call 212- 825.3045 Free art –
drop in only if you’re in the neighborhood The Forbes
Magazine Galleries: The
galleries are
located on the ground floor of the Forbes building in Manhattan at 62
Fifth
Ave, the corner of 12th Street. That
is
directly opposite Cordoza law school. Entrance to the galleries is
free. Hours are
10:00 am - 4:00 pm Tuesday, Wednesday, Friday and Saturday. Thursdays
are
reserved for guided group tours, which must be reserved in advance.
Visit
http://www.forbesgalleries.com/index.html or call 212-206-5548 for more
information. This museum t displays the collection of toys, art
objects, and
documents assembled by Malcolm Forbes.
It had been famed as the home of a full dozen eggs
of the Fabergé
Imperial variety. Such
art objects are
quite rare, each individually valued at multiple millions, as only
sixty-nine f
the hundred and five made have survived.
But all twelve were sold at auction, as I discovered
when I inquired
about them. Also
at the time of my
visit, the entire toy and game collection was closed to visitors.
Lacking a
particular interest in figurines of Napoleon III or watch designs, I
went
through the entire museum in less than fifteen minutes. After I checked
out the
museum, I considered eliminating it from this list of attractions but
decided
to keep it in to let you know that not everything free is necessarily
worth
visiting. I am glad to say that the trip was not a complete waste,
though, for
we added it on to a visit to Roosevelt’s birthplace a few blocks away. Theodore
Roosevelt Birthplace National Historic Site is
located at 28 East 20th
Street, between Park Avenue South and Broadway.
This is actually a recreation of the 26th
president’s birth
home; the original was torn down before people thought about making it
into a
historic site. The
reconstructed house
contains five period rooms, two museum galleries and a tiny bookstore.
Though
the home is not original, it contains furniture and other objects that
did
belong to the family, as well as a wealth of objects, documents, and
books –
including the 38 that the president wrote --that relate to Teddy
Roosevelt’s
career. Tours
of the period rooms are
available on the hour, 10am, 11am, 1pm, 2pm, 3pm and 4:00pm. Between tour times, you
can watch a film
about the president’s childhood dramatizes his battle with asthma and
his
determination to succeed in overcoming the weakness of his physical
constitution. Unfortunately,
this site is not open on
Sundays. Its hours
are Tuesday-Saturday,
9:00am-5:00pm. But
if you have a couple
of hours to spare on one of those days, you should take the time to
visit. The fee is
just $3 for adults. You
can learn
more about the history involved at http://www.nps.gov/thrb. The number to call is
212-260-1616. If
you want to learn more about Teddy
Roosevelt, take a trip to his home at Oyster Bay on Long
Island. Roosevelt’s
residence on Long Island Sagamore
Hill: To see
the home of
Theodore Roosevelt and his wife and six
children from 1885 until his death in 1919, you have to take a drive
out on
Long island. Roosevelt’s passion for
hunting and taxidermy literally fills this house.
Though
my own visit took place during the summer, the site warns visitors
about the
fact that the house is not air-conditioned, and the third floor of the
house is
subject to closure when the heat reaches dangerous levels. So
don’t plan to come there during a heat
wave. Visitors can only enter the house
as part of a tour. Tours are offered on
the hour from 10am to 4pm. The fee is $5
for adults. The Roosevelt Museum at Old
Orchard is open Wednesday through Sunday from 10am to
5pm. Admission
to the building is free, and visitors can view movies and exhibits at
their own
pace. Another free attraction on site is
the The
Sagamore Hill Nature Trail. To get there, set your driving directions
to 12
Sagamore Hill Road, Oyster Bay, NY 11771.
For more information, visit http://www.nps.gov/sahi
or call 516-922-4788.
Convenient
to both
New York and northern New Jersey, Bear Mountain State Park is located
about 50
miles north of New York City at the intersection of the Palisades
Parkway and
Route 9W. The park
features a large play
field, shaded picnic groves, a dock on the Hudson for mooring small
craft, lake
and river fishing access, a swimming pool, a zoo and nature trails for
hikers,
bikers, and cross-country
skiers. An
outdoor rink is open to ice skaters from late October through
mid-March. There
is a fee for parking, but just $10 would cover that and admission for 2
to the
zoo and trailside museum. Paddle
boats,
as well as rowboats, are available to rent beginning June 21, at
Hessian Lake.
Hours are 11 am to 4 pm Monday through Friday and 11 am to 5 pm on
Sundays. The
cost is $3.50 per person, per hour and a $20 refundable deposit is
required. For
information and to confirm
what is open call (845) 786-2701. You can access information on Bear
Mountain,
as well as other state parks on http://nysparks.state.ny.us/. Washington
really slept here One
of these parks
I recommend based on my own experience is Morristown National
Historical Park
in Morristown, NJ. The
admission charge
is $4 for adults for entrance to the
Washington Headquarters Unit. The
Ford
Mansion, which served as Washington’s headquarters, can only be visited
with
the guided tours, which are offered at 10 am, 11 am, 1 pm, 2 pm, 3 pm
and 4 pm. You
can also visit the Washington’s
Headquarters Museum. While
you’re there,
take a walk through the Jockey Hollow Unit.
Its Visitor Center is open 9 to 5. One more
attractions in the area is
Wick House. Do not
plan to do it at
midday or after 4 because it closes for about an hour around noon each
day and
closes for the day at about 4:30. Call 973-543-4030 or 973-539-2016
ext. 210 to
check for availability. The historic house features a self-guided tour
with a
park employee or volunteer in period dress.
Visit online at http://www.nps.gov/morr/. And
Edison slept in West Orange Edison
National
Historic Site is located at 12 Honeysuckle Road, West Orange, NJ 07052. The admission charged for
those 16 and over
is $3, but admission is free for as long as the laboratory remains
closed for
renovations. It may
be still be worth your
visit to tour of the Edison's 29 room Queen Anne style mansion, enjoy
the
estate grounds and admire the newly restored greenhouse. The estate is open Friday
through Sunday.
House tours run from 12:00pm - 4:00pm, beginning on the hour. Grounds are open
11:30am - 5:00pm. For more
information, call (973) 736-0551 or visit http://www.nps.gov/edis/index.htm Too
hot outside? Put yourself on ice For
a really
refreshing taste of winter on a sweltering summer Sunday, pack up a
sweater and
head over to Chelsea Piers. Sky Rink at Chelsea Piers is one of the key
attractions of the 28 acre waterfront
ports and recreation center located between 17th and
23rd Streets along
Manhattan's Hudson River. From June through August enjoy $10 admission
and free
skate rental on
Sundays from 1:00 -
3:50pm. That’s a
savings of $11 off the
normal ratel. Check
it out for yourself
at Chelsea Piers - Pier 61 23rd St. & the Hudson River New
York, NY 10011.
For more information, call 212.336.6100 or visit online at http://www.chelseapiers.com/srGenSkate.htm Yet
more options in NY, NJ, and beyond To
expand your free
and low cost options beyond the attractions listed above, I recommend
searching
the National Park Service site;
just
enter the location of your choice at www.nps.gov. Another
excellent source of places you can
get into free when you buy membership is the Association
of Science-Technology Centers (ASTC). This
association numbers more than 540 science center and museum members,
which include,
not only science-technology centers and science museums, but also
nature
centers, aquariums, planetariums, zoos, botanical gardens, space
theaters, and
natural history and children's museums in 40 countries.
You can search for ASTC member museums at http://www.astc.org/sciencecenters/find_scicenter.htm.
By buying
membership to one, you get free access to all, barring those restricted
by the
90 mile proximity. Check on such
restrictions by calling ahead and asking if your membership is
accepted. In the course of the year, your one
membership could cover hundreds of dollars worth of admissions.
So you see, there are quite a number of ways
to make your dollars go further this summer and even in the seasons to
come. ----------------------------------------------------------------------------------------------------------------------------------------------------------------- From the Winter 2008 issue: Don't Throw It Out “They don’t make them like they used to.” You know that cliché you’ve hear from your parents or even grandparent? Unfortunately, it is true. Built in obsolescence applies not only to items that utilize the latest technology .like cell phones but to simple, everyday items like shoes. They are designed to be thrown out rather than repaired. The shoes of yesteryear were made with an understanding that a well-made shoe can last for many years even though the heel will wear down after only a few months of use. Consequently, the shoes were made in a way that allowed for heel replacement. For $5 you would get new heels to replace the worn ones on women’s shoes, $8-$10 for the larger men’s heels. But now when I bring in my husband’s shoes for heel replacement, the shoemaker says that it cannot be done. He explains that today’s shoes have hollow heels which makes them impossible to repair. There are two reasons for this state of shoes. One is the hollowness makes them lighter, something the wearer appreciates. The other is that it costs less to make the shoe, something the manufacturer appreciates. The manufacturer may also appreciate the fact that irreparable shoes need to be replaced altogether, which means another pair sold for him. It is really a shame that a shoe that otherwise completely intact requires replacement because the one worn part cannot be repaired.
As this type of situation is frustrating
to the frugal among us who hate to be wasteful and throw
things out, there is a book to alleviate the problem. While
it does not offer a solution for the heels on shoes,
Don't
Throw It Out: Recycle, Renew and Reuse to Make Things Last by Lori Baird and the editors of Yankee
Magazine (Rodale:2007) offers solutions and approaches to
many other things you would use in your home. The ideas could
not only save you money but help diminish some of the waste that
contributes to the decline of our environment. The list price on the
paperback is $17.95, but it is available from Amazon for
$12.21.
I
Don't Throw It Out gives you the techniques for cleaning and maintaining the many things you are likely to find in your household, not just the big ticket items, but even hairdryers and irons -- both for clothes and hair. Within the pages, you’ll discover the tricks to remove the type of stains, spots, and discolorations you may have thought were impossible to rectify, from rust to rings on wood. You’ll find that vinegar is an indispensable item in a home even if you have absolutely no inclination to make cucumber salad. It can be used to clean so many things and is both non-toxic and inexpensive, a very good combination. If all else fails, the book offers a wealth of ideas for recycled uses of objects that can no longer serve in their original capacity.
Efficiency Among the topics covered is the setup and maintenance of appliances, including diagnoses and remedy of problems One point on appliances to consider when making a purchase, while energy efficiency is certainly a virtue you seek in an appliance, do consider just how much savings in energy cost the Energy Star rating on an appliance promises you. Then do the math to calculate if it pays to pay $50 more now to save $10 a year on operating costs. Sometimes the difference between an Energy Star rated appliance and one that does not quite make it into the category is not great enough to warrant the higher price tag.
Self-Reliance A basic understanding of how your appliances function is essential, even if you do not feel confident enough to change the heating element of your oven yourself -- though the instructions are in the book for those who are. If you are completely clueless, you are in danger of being duped by incompetent or unscrupulous repairmen. For example, a few years ago, my not-old-but-past-warranty-age oven ceased to function properly. I called a company whose name I found in numerous ads for a diagnosis and estimate. I explained to the repairmen who came that I no longer heard the oven fan operate. They claimed that I did not understand that the real cause of the problem was the oven’s computer, which would cost over $400 to replace. As the man said this with a straight face, he was either completely incompetent or a consummate liar. But I wasn’t buying. Instead, I called Mark of A1, who confirmed that it was the fan alone that needed to be replaced, a repair that cost about $80.
Inefficiency and Warranty Something to be aware of with respect to appliance repair is the limitations on service contracts. A new appliance usually is under warranty from the manufacturer for about a year. You sometimes have the option of extending the warranty coverage by purchasing a service contract. While it sound like a good idea in theory, in fact, there are some facts you have to be wary of. First of all, the warranty is voided by a number of possible actions on your part, so you must review the fine print. Among those actions is having a repair done on your own, even by a competent professional. Well, why would you want to pay someone for a repair that would be covered for free anyway? The answer is timing. While your warranty may guarantee a repair at no cost, it does not guarantee that it will be done at your convenience. A neighbor of mind said she was still waiting after 2 weeks for her oven to be repaired. In the meantime, she was shuttling across town to use her daughter’s oven. I have also seen desperate request for repair from people whose ovens have broken down shortly before a Yom Tov who simply cannot wait those weeks to get their service contract repair.
. Here are some pointers from the book with the page numbers that show its range from kitchen stoves to lipstick and the many reasons not to throw away those filters you thought you couldn’t use anymore.
Appliance Settings and Setup You can cut down on your energy bills and the wear and tear on your appliances. How do you maximize the efficiency and lifespan of your refrigerator? By setting it at the right temperature, which is between 36 and 38 degrees F. That setting uses the minimal amount of energy to keep cold enough for the food within. For a freezer, set the temperature between 0 and 5 degrees F. Another thing you can do to keep your freezer running more efficiently is to keep it well stocked. That is because a nearly empty freezer has to work harder than one filled with food that helps maintain the cold (5).
Less on Laundry If the clothes you are washing are not soiled but just not fresh, you can cut down the amount of detergent you use to half and set your machine for the shortest wash cycle. This would still effectively freshen clothes that do not need any stain removal. You would save on detergent, and the shorter cycle saves water and energy, as well as the “wear and tear” that washing causes on clothing and your machine (209).
Out of the Dryer: You’re not really going to toss out that dryer sheet just because you used already? Don't Throw It Out certainly lives up to its title in explaining how that dryer sheet can yet be used in any of the following ways (216):
When to Seek Cover Covering your food processor with plastic wrap before locking the lid in place will keep it from requiring a cleaning that contributes to scrapes on its surface. (12) But do not try to apply this idea to keeping your oven floor clean. Placing aluminum foil on the bottom can result in a damaged heating element (7).
Location, Location, Location If you have the option to set up your kitchen, try to set the refrigerator apart from your oven or range. While it may be convenient to pop food right out to the stove without having to walk across the room, the heat surrounding the refrigerator forces the compressor to work harder to maintain its cool temperature. As a result, it uses up more electricity and wears itself out faster (4). Another placement concern is the damaging effect steam has on wood. Cooking with steamers or steam kettles releases moisture that is not kind to the woodwork. Consequently, you should try to distance such appliance from cabinets overhead and minimize steam contact by placing kettles on the front of the range, so that they are not directly under the wood ( 27).
Creative Coffee Filter Uses These are so varied and useful you may choose to try them even if your coffeemaker still takes the filters you have. The idea was that if you find yourself with filters that do not fit your new coffee maker, you do not have to toss them because they can be used in so many other ways (16-17):
Cool Cosmetic Pointers Shape Up Your Lipstick: A warm environment may sound inviting in winter, but high temperature can cause your makeup to melt. Lipstick can actually get so soft that it breaks apart when you attempt to apply it, and your pencils will smear as you try to draw a line. Don’t toss them, move them. Keep them in the refrigerator to keep them firm while its hot. Chilling your lipstick is also a good idea if you find that it has lost its shape. Use a razor to slice the end to shape it like new. But be sure the lipstick is firm before you do this, so pop it in the fridge first. Another lipstick trick comes from the freezer. After applying lip gloss, run an ice cube over your lips to reduce the number of times you have to touch up (199).
Still, even the author of Don't Throw It Out has to concede that there comes a time when your cosmetic should be tossed. Even though they do not come with “best if used by __” on them, cosmetics do have limited lives. The lifespan of lipstick is given as a maximum of 18 months. The same goes for foundation and moisturizer. Other cosmetics have an even shorter duration: a year for eye shadow, pencils and concealer and a half a year for mascara (200). Considering these points, you don’t really save by buying the makeup with greater quantity if you will not use it all by the expiration date. I confess, that I have kept my makeup for longer than the recommended amount of time, though I do try to remember to replace my mascara as it can products used about the eyes can prove harmful if kept too long.
Save Yourself Time and Frustration
This book is not just about what to do yourself but how to find key information. So you want to call a company but do not have the number for it? You can try to find the company online to get its number. If that doesn’t work, you can still get the number of a though EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) if it is a public company. Find the company phone number listed at www.sec.gov/edgar/searchedgar/companysearch.html). Of course, sometimes the phone number just leads to further frustration of endless recorded messages. If you get as annoyed by the never-ending automated menus you encounter when trying to reach a person at a company, you’ll really value the insider’s trick this book offers. There is a website, gethuman.com/us, that lists over 500 companies’ toll-free numbers and the “shortcut to reach each company’s live customer service department” (166).
Now that tip alone may well be worth what you pay for the book. In truth, the creative and practical ideas of the book could save you quite a number of pretty pennies in the long run. Though I started this article with the affirmation of one old saying, I must point out that the cliché, “A penny saved is a penny earned” is not true. Pennies saved are better than pennies earned because what you save you keep, while what you earn is subject to federal, state, and local withholding. Still, if you are not yet certain about Don't Throw It Out, just imagine the possibilities. Picture your mother-in-law’s r reaction when you casually mention that you did not need to call her plumber because you fixed the problem with your faucet yourself. The home repair saves you the cost of a service call, but the astonished expression on your mother-in-law’s face would be priceless indeed.
From the Spring 2006 issue: Tax Time: the Basics You Need to Know
Growing up can be painful, especially when it comes to the duty imposed on us to file our tax returns. You can’t avoid it even if you hire an accountant because you will still have to gather and present all the required papers so that the return is completed accurately and takes advantage of the deductions you are entitled to. Personally, I’ve found the tax return software to be a great help. That is not to say that you can’t fill out the forms by hand, but with my handwriting a computerized form is definitely preferable. The programs don’t only save you time this year, but if you use a program again the following year, it will pick up last year’s return information, which could save you time on the data input for all variables that are unchanged. Plus, the software programs guide you through the various categories, which inspires more confidence than just reading the form directions and hoping you put the figures in the correct spaces. And if you live or work in New York State, getting the state version of the software will save you some headaches because the New York form takes the most convoluted approach imaginable to arrive at the figure for your taxes. It’s about as direct as using your left foot to scratch your ear. Oh, and if you live in one state and work in another, or if you were a part-year resident in a state, you can have the fun of filling out not just one but two state returns.
Among the many advantages of marriage is the opportunity to do things together with your spouse, which in this case means you can file a joint return. That translates into just one federal and one state form for the two of you (assuming you don’t have an obligation to another state). But just as you can’t have your cake and eat it, too, you can’t claim yourself as exemptions if your parents are taking you as dependents for the year. So before you commit yourself to paper, find out what they’re planning.
I. On Exemptions: Ascertain if you can claim yourself on the return, or are your parents claiming you. Taxpayers can claim a personal
exemption for themselves and any dependents they support. If
someone else can claim you as a dependent, then you cannot claim your
own personal exemption. Also, taxpayers cannot claim as a dependent
anyone who files a joint tax return with his or her spouse.
Spouses filing a joint return can claim two personal exemptions, one
for each spouse, even if one spouse earns all the income. If one spouse
is supported by someone else, then that other person can claim the
dependent and the personal exemption only if the spouses file separate
returns. That’s something to consult your parents on.
.
II. Standard Deduction vs. Itemized DeductionsIt is possible that all the receipts you saved may not be needed after all. For most young people, there are not enough qualifying expenses to make it worthwhile to itemize deductions on your tax return. If the total dollar amount of itemized deductions does not exceed the amount allowed for the standard deduction, you are better off just taking the standard deduction, and you’ll save yourself time. But first you need to know the numbers. Standard Deductions For 200 Single: $5,000
To decide if you should itemize, see if you fit into the major categories for itemizing deductions. They include:
Home mortgage interest expense. You may generally deduct the mortgage interest you pay on your residential mortgage for up to $1 million for the purchase of the home and $100,000 in home equity debt. It is the interest only – not the amount that counts for the principle – that is deductible. You can refer to IRS Pub 936 for more info.
Real estate taxes. Property taxes that you pay on your home. If you live in NJ or on Long Island, this is probably a very substantial amount.
Medical and dental expenses. There is a common misconception that this expense is completely deductible. In fact you can only deduct qualified medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI). For example, if you have an adjusted gross income (Form 1040, line 36) of $30,000, then your threshold amount for medical expenses is $2,250. Only the amount of medical, dental, and other health care expenses that exceed this number can be deducted. Let's say that your total health care expenses for the year was $3,000. Your deductible amount is $3,000 minus $2,250, or $750.. See IRS pub. 502 for more information.
Miscellaneous expenses. (Schedule A, lines 20-26) are deductible only if they exceed 2% of your adjusted gross income. Miscellaneous expenses are generally unreimbursed expenses that are related to your performance of a job such as travel, but not your daily commute to work. For example, if you have an adjusted gross income of $30,000, then your threshold amount for miscellaneous deductions is $600. Only the amount of qualified deductions that exceed this number can be deducted. Let's say your total job-related expenses for the year was $1,000. Your deductible amount is $1,000 minus $600, or $400. Refer to IRS Pub 529 for more info.
Contributions to charitable organizations. The IRS allows you to deduct contributions of money or property to a qualified organization for its use. Refer to IRS Pub 526 for the criterion. Charitable contributions (Schedule A, lines 15-18) are fully deductible only to the extent that your total contributions are less than 50% of your adjusted gross income (Form 1040, line 36). If you donate stocks, bonds, works of art, or other assets on which you would have paid capital gains tax, your contribution is limited to 30% of your adjusted gross income. Any excess charitable contributions may be carried over to next year's tax return (and if not used up next year, may be carried forward for a total of five years). For example, Dina has an adjusted gross income of $30,000. If she opts to give tzedakah to qualifying organizations, she can take the full deduction for up to $15,000 in cash or up to $9,000 in stocks, bonds, or works of art. If Dina decides to donate $10,000 in appreciated stocks to her alma mater (assuming this is not to cover tuition expenses and is a voluntary donation) Dina is limited to the tax deduction of $9,000 on her tax return. That doesn’t mean that she’s completely lost credit for the additional thousand; she can carry forward the excess $1,000 to next year's return. Why do people donate appreciated stock rather than liquidating the stock and donating the cash? By giving the stock directly, they avoid capital gains tax, in addition to benefiting from the tax deduction of the donation. Note: deductions are sometimes limited to a certain threshold amount. And your overall total itemized deductions may be limited. For 2005, you begin to lose some of your itemized deductions when adjusted gross income reaches $145,950. (For married taxpayers filing a separate return, the income phase out amount is $72,975.)
III. IRA: Tax Deferred or Tax Free There are two types of IRA accounts: the traditional and the Roth. The difference between the two is when you will be taxed on the money. If you qualify, based on your income and situation of other retirement savings plans and other limitations, you can take a tax deduction for the amount of money you put into a traditional IRA. Do bear in mind, though, that this does not make the money tax free. It is tax deferred, meaning that you will have to pay taxes on both the principle and interest or capital gains earned when you withdraw the money. You can begin withdrawals some months after you achieve you 59th birthday. However, you are not compelled to make withdrawals for about another decade. At that point, you must start taking some of the money out and pay taxes due.
On the other hand, a Roth IRA does not allow you take a tax deduction for the money you put in, but the money you take out when you reach the qualifying age is tax free, a rare and wonderful thing. It also has some other flexible options, not available for the traditional IRA. So if you skip the tax deduction at this point, you could end up saving far more in taxes when you retire.
Do not think that you cannot afford to put money aside for retirement now because you may need it for other expense incurred much earlier. IRA rules now allow penalty-free withdrawals for qualifying home purchases and college tuition. But if you do tap the money, I would advise you to do that only with the traditional IRA, so that you don’t lose out on the tax free benefit of the Roth, which is reserved only for withdrawal upon retirement.
Another thing to bear in mind is that your IRA categorization is not etched in stone. You have options to convert a traditional IRA to a Roth, but you would incur the taxes due for the year of the conversion. You can also recharacterize your contributions from one type of IRA to another. As for the year of the contributions, you are not limited to the calendar year. If you qualified based on your income and other factors, you can still make a contribution to an IRA and assign it to count for 2005 until the tax filing deadline. That way you still have 2006 open to you to make the maximum allowable contribution for the year on top of what you assigned to 2005.
IV. The Consequence of Procrastination The IRS knows that not everyone plans well enough to meet the April deadline. That’s why there is an option (though not one I can recommend) to file an extension, which buys you’re an additional six month. Form 4868 will extend the deadline for you to file your return to October 16, 2006. However, don’t think for a minute that an extension of time to file is an extension of time to pay—not when you owe the IRS. If you think you may owe taxes, you have to run through some calculations to estimate how much and send a check in. If you fail to pay what you owe, you will be assessed interest, and, most likely, penalties as well. (Note: this does not work in reverse; if you delay filing and are owed a refund, you will in effect delay your refund.) So if you are a procrastinator, don’t procrastinate altogether. Sometime before the deadline, you must: 1. Create a rough draft of your tax return. Get an idea of approximately how much you owe. 2. Download the PDF called Automatic Extension Form. Fill it out, and write a check for the amount of money you estimate that you owe. 3. Even if you have to stand on line at the post office, you’ll have to be sure that you mail the extension form with your check by April 17th. 4. Don’t wait till October 15th to start on your complete tax return.
V. Tax Refunds: Is this great or what? Of course, you should rejoice over the apparent good fortune of a tax refund, just as you should rejoice over all the event of your life and say “gam zu letova!” But a refund actually falls into the “or what” category. You have to realize that though it seems like a bonus, in fact a tax refund is only a return of your own money, which had been withheld from you for months. So it should not be regarded as winning a prize or finding money (with none of the simanim obligating a return); rather, it is like finding the accumulation of change you had dropped in the couch cushions that you are reunited with after Pesach cleaning. It was always rightfully yours, though you did not have access to it.
Really, for optimal financial planning, you should have just the right amount of taxes deducted. You don’t want to end up owing the IRS or the state government because they are likely to hit you with interest and penalties. On the other hand, having them owe you actually leaves you with less disposable income for most of the year. Getting it all in a lump sum may make you feel that you’ve had a windfall, but if you had the money all along, you could have increased your savings, investments, or avoided some debt that costs you more in interest. For example, in September you purchase a sofa for $799. You only have $400 saved toward its cost, so the balance you can’t cover goes into credit card debt. You continue making the minimum payment on the card for months because that is all you can afford. Once you get your tax refund, you can pay off the entire debt. But if you had the money in hand, you would not have had to assume the debt to make the purchase at all, and that would have saved you a substantial amount in interest payments. Nevertheless, when it comes to money due, it is better to receive than to give, for the IRS does not like to effectively extend loans. So if you're not certain about the correct amount of tax you should have deducted from your salary, it is better to err on the side of the IRS and then get the excess amount refunded. Should you try to do it the other way around, you will fall out of the good graces of the IRS. ------------------------------------------------------------------------------------------------------------------------------------
From the winter 2005 issue of Kallah Magazine: Take Charge! Are you armed and dangerous? A credit card in your wallet could turn into a loaded weapon, triggered by your spending habits and aimed at your credit score. A credit card has great potential – it can prove greatly beneficial or seriously harmful. Misused, a credit card may be one of the most dangerous things to have in your possession. Alternatively, if you maintain control over it, your credit card can actually serve as a tool to build your credit and assist you in tracking your expenditures. Think of it as a force like that of water: you can harness its power to your advantage. On the other hand, if it breaks beyond set boundaries, you will be lost in the depths Would you take out a loan at a rate of interest of about 20%? How high is that? It is about triple the rate you would be paying on a mortgage and, unlike mortgage or home equity loans, this interest is not at all tax deductible. Another way to appreciate how much it costs you to effectively borrow from your credit card by not paying your entire bill is to look at what banks pay you. Right now a saving account or CD may yield somewhere around 3.5%. Given those numbers, it is mind-boggling that many people consider it a virtue to put aside some money in their savings accounts while they continue to make only the minimum payments on their credit cards. They are paying 20% or so to keep back money that will earn less than a fifth of that! Yes, saving is important, but it is more important to cut down costly debt. Carrying credit card debt is a very expensive long-term venture for millions of Americans who cannot pay off their credit card bills. As interest rates have risen, carrying credit card debt costs consumers even more.. The problem has grown to such proportions that, according to a Wall Street Journal report, the government is now stepping in, requiring higher minimum payments for credit card monthly statements to force people to start digging themselves out of the debt that mounts with each purchase and each month’s accumulation of interest and finance charges. The government mandate compels people’s minimum payments to include a portion that will chip away at the debt, rather than merely satisfying interest payment. How do so many people fall into credit card debt? Often it starts with a faulty assumption. People justify buying what they really cannot afford by positing that their income will rise in the future. Their position is that they may as well buy the furniture, entertainments system, or vacation package they wish to enjoy now, and they will be able to pay it off as their income rises to meet their expenditures. Now it is true that people’s incomes to tend to rise as they gain success and advancement in their careers. However, the unfortunate fact of life is that our cost of living tends to rise even faster. It is not just a question of inflation but of the increased expenses that inevitably are incurred by growing families. You can spend a lot less on food and clothes as a couple than you can as a family of four, and when you add child care and tuition costs into the picture, it is very clear that a much higher income would be needed just to stay afloat. Consequently, the philosophy of “Buy now; pay later,” often used to sell bigger ticket items can cost you big time. If you cannot pick up the tab later, you are forced to get into deeper and deeper debt. In the end the $2000 vacation package that was just too good a deal to pass up can prove far more expensive when you add in all the interest charges you incur. Once you start failing to pay your credit card debt in full, you are in danger of falling down, down down -- much like Alice descended in the rabbit hole – as you find yourself deeper in debts. It requires a great deal of effort to pull yourself out, and it gets more difficult to dig yourself out of that hole as time goes on. That is why many people can stay in debt for decades . With the possibility for such dire consequences, why do people ever venture on applying for a credit card – or rather accepting one of the many offers that comes in the mail? The fact is that there are real benefits to using a credit card. But, as with so many other key issues in life, you have to know yourself. If you are the type of person who buys things just to have something to do, or to cheer yourself up, and you don’t have the disposable income to keep pace with your spending, a credit card in your hands may turn into a ticking bomb that can destroy your budget and leave a negative mark on your credit history. You also shouldn’t continue to carry a credit card if someone else has gotten hold of the information because their charges will become your liability. Always check your statement for unauthorized charges and bring them to the attention of the credit card company immediately. Demand that they be investigated, and if there is evidence that someone is making charges on your card, cancel it. However, that does not mean everyone should shun credit cards. They can prove useful and offer several advantages:
I.
Convenience: 1)freedom from carrying cash to pay for purchases 2)ability to pay for purchase without worrying that there is enough in the account now to cover the check 3)ability to make purchases over the phone and internet 4)ability to place reservations at hotels, etc. II.Consumer protection: In cases when you have received damaged or the wrong merchandise, your credit card company can freeze the charges to the merchant in question until the matter is settled. If you have paid cash, you are in a far less favorable position to recover the cost. III. Establishment of credit history: A favorable credit score, which grants you the reward of lower mortgage rates and sometimes even lower insurance rates, is the result of establishing your credit. In order to accomplish that, you have to not only abstain from not paying debt, you have to prove yourself responsible by having handled credit well. In order to do that, some people actually take out loans they don’t even need just to pay them back to establish themselves as credit-worthy. But paying your credit card bills in full can have the same effect with no interest charges. IV.Other benefits: 1) Some credit cards “reward” you with miles, merchandise, or rebates on purchases. For example, the credit card I use is linked to gas station, allowing me to earn free gas at the rate of 1% of my purchases. 2) Another extra, I get with my credit card is a contribution to yeshivas. My MasterCard is registered with both eScrip and Count on Me, programs that contribute about 3% of purchases to the designated organization at participating stores. I also have it registered with UPromise, which is supposed to build up a college savings account based on the percentage return at participating merchants.. You can enjoy all the advantages above without getting burned by the dangers if you keep yourself and your expenditures under control. Once you establish yourself as a good credit bet, you will be presented with the most favorable loan and financing rates, which could save you substantial amounts over the life of the loan. You also gain more respectable standing for those who hold your debt, so that a minor lapse on your part will more likely be forgiven than your less well-established counterpart. For example, it has happened to me that the check I mailed to pay off my statement never arrived at the destination. As soon as that fact came to my attention, I contacted the company. The phone representative then reviewed my payment history, and on that basis waived the finance fees. Had my history shown that neglecting to pay was an ingrained habit, I would have had to pay over $100 over the charges. A good reputation is indeed worthwhile. It is somewhat comforting to think that virtue can get you more than its own reward. So take charge of your credit! from the spring 2007 issue: ISO Home Sweet Home When you first entered “the parsha” of shidduchim, you had to relearn the meaning of certain words in context of a shidduch. So you had to make mental adjustments to make sense the rankings implicit in the term “best bochur” in contrast to “top boy,” “good boy, “a learning boy,” or the “boy with good middos.” “A really great girl” generally is the frum-speak equivalent of the phrase “has a great personality” with all it connotes of qualities present and absent. . You learned that when a girl uses the word “tall” to describe a qualification for a shidduch that she in reality is encoding the fact that looks are important to her. A boy, on the other hand, could say outright that “pretty” and “thin” is a prerequisite without fear of reprisal. Oh, yes, and “thin” is applied to just about any girl, regardless of her size, imply that she is good-looking. In all right-learning circles, career or job were words not to be used, though “parnassah” could perhaps be alluded to. Then, on families, you realized that there are even finer gradations than “yeshivish,” “modernish,” “traditional,” (usually in connection to relaying the background of someone moving in a particular direction) “chassidish,” or some hyphenated combination of those terms. There is also “haimish” or “heimisch” means something quite different from “balabatish.” So you got through all the hurdles, broke your teeth on all the terms, found your one and only bashert and are now set to find that home to be the “bayis” part of the “bayis ne’eman.” But that search is fraught with perils of its own. If you are venturing into that world as you seek a new home, you may be disconcerted by the discrepancy you find between ad descriptions and the house you encounter in the flesh. In most cases, that is not the result of deliberate false advertising but of the encoded terms specific to the real estate industry. As with any foreign language, the key to understanding those who speak it is to learn the vocabulary and not be confused by words you believe to be synonymous with their homonyms in English. You may have find yourself scanning the MLS (Multiple Listing Service) listings online and feel surprised at the recommendatory state of homes for sale. The majority of homes are reported to be in a condition termed “excellent”; many others are called “very good,” and smaller number merely “good,” while some are distinguished as “mint” or “diamond.” While the accompanying photographs of some of the houses do not look as flattering as the descriptive terms, you believe that a house described as “excellent” should be in satisfactory condition. Confident in the state of repair of the house you are interested in, you make an appointment me to see the house. Once you arrive, you are likely to notice that the windows are the ones that were put in the house when built – about 50 years ago. The roof looks not much newer than that. The paint on the façade is faded and peeling. Inside you’ll notice that the advertised hard-wood floor are indeed there but are scratched and dull. You’ll see evidence of a bout of redecorating in the 1970’s, as evidenced by wood paneling and uninhibited application of avocado green highlighted with golden orange as a decorating motif. The real estate agent may enthusiastically point out the space for a second sink in the kitchen while turning a blind eye to the custom colored refrigerator, designed to match the vintage ugly wallpaper and the linoleum that is curling up at the edges. No, you are not mistaken. The house is described as “excellent” because in real estate terms that is the correct rank. The mistake is to assume that the terms in real estate mean the same thing they do for the rest of the world. They don’t. In order to make sense of the terms applied by real estate agents to the condition of the houses they sell, you have to put the usual definitions out of your mind. Instead, think of the terms as the equivalent of stars assigned by restaurant of movie ratings. What is called “good” is one star, which in the non-realty world is poor. A house described as “good” would qualify for condemnation; it is not inhabitable by human beings until it has undergone extensive renovations. A house that has experienced a fire, requiring dousing by two fire engines for a couple of hours until it is thoroughly marred by flames, smoke, and water, may, for example, be described as “good.” For “good +” rankings, add a half a star, but don’t set your expectations much higher. “Very Good” is the equivalent of two stars. A house with that description is what is known in layman’s terms as a “dump,” a term a real estate agent will never apply to one of her listings (in your hearing, that is). Thus that house that you were disappointed in because your picture of “excellent” condition did not correspond to the condition you found it in actually was not mislabeled if you understand that the movie with three stars will have some obvious shortcoming as does the house. If you want something that will not have such obvious flaws (though, in reality, all houses are bound to have some flaws even if hidden), you need a house that is rated “mint”. No, that does not connote that the house is painted pale green or scented with toothpaste. “Mint” in real estate lingo translates into what you thought “very good” or “excellent” meant. Sometimes a term like “diamond,” which connotes a slightly higher standing through its association with wealth and distinction, or “move-in condition,” for the practical-minded is substituted. Do bear in mind, though, that such could apply to the most hideously decorated house you could imagine, so long as the day glo paint is not peeling and the carpeting that clashes with all your furniture is not threadbare. A house could be described as “mint” even if it has not been renovated in the past 5-10 years, so long as it is updated enough not to require an immediate overhaul of the kitchen or bathroom. But don’t get your hopes up for the granite kitchen with top name appliances unless such is stipulated in the ad. Also beware of the condition resulting from an agent’s idea of averaging. Let me explain. As “mint” denotes move-in but not necessarily spectacular condition, other terms are put in to signal a house’s superior state. If “Diamond” has become to overused to indicate a superior grade, the house may be called “mint +++,” and if it is indeed new, that is the term that will be adopted to describe its condition. But what do you do with a house that has been renovated in part but not completely? Apparently, some agents solve that problem by coming up with an average rank that favors the house’s positive attributes. In my brief bout in real estate, I once showed a house that the listing agent described as “mint.” While in fact, some of its features were even better than mint, extra-large master bedroom and completely redone full tile bathrooms, etc., it also had features that might have been called only “very good” to “excellent.” Half the windows clearly needed to be replaced, and the kitchen was both small and outdated. Like in math, average rankings can be misleading, leading you to expect a certain consistency that in fact is not in place. Another ranking to be wary of is one that is absent. Obviously if the house would have any possible claim to the rank of “mint,” its ad would declare it so. Consequently, an absence of a condition indicator means that the house will not be in move-in condition and may even rank below “excellent.” Not wanting to turn people off of the house, the agent may leave out this piece of information from the ad, hoping to lure buyers interested in location, lot size, price, or other attraction that will be stressed by the ad. If a house’s asking price is on the high side and the condition is not indicated, the agent knows that the seller is asking too much for the house and does not want people to reach the same conclusion before they come to see it. Coming to that conclusion before seeing the house eliminate any possibility of a deal, so the agent wants buyers to indicate their level of interest and what they would bid to get the owner to come down in price. The educated buyer knows that an “excellent” house will need work and should calculate how much it is indeed worth in negotiating over the purchase price. Now that you’ve read this article, even if you have not been through learning the hard way and experienced your own series of unfortunate events that are all too common in real estate transaction, you are on the path to becoming an educated buyer. Even if you do not yet feel full conversant in the language of realtors, you are aware that you should not mistake their terms for standard English. Once you adjust your expectations, you should no longer feel unnerved by your encounters with realtors and should actually be able to use the services they offer to your advantage. Just remember what the lingo means and you won’t be taken unawares. To be forewarned is to be forearmed, and you certainly will need as many arms as possible to handle your move and new home plans.
From the first issue: Considering Cost: Medical Insurance by Ariella Brown When you get married, you have to reassess your situation and insurance needs. You need to get adequate coverage for your car, home, and, -- when you have or are about to have dependents – your life. Most important of all is insuring your health. While you may think you cannot afford adequate health insurance, the fact is that you cannot afford to be without it. As obstetrical and hospital costs have skyrocketed, it is important to be adequately covered. Even the least complicated births can amount to $10,000. When choosing your coverage, you have to not only consider the costs of the premiums but of the deductible and co-insurance amounts. Be aware of both the range and limitations of your coverage, so you know which doctors you can choose from at full coverage and which will cost you out of pocket. Also be aware of what is considered your responsibility. Do not agree to pay your doctor directly and then get reimbursed by your insurance until you’ve ascertained that your plan is structured that way. Many insurances policies do not issue checks to the policy holders but pay doctors according less than what they would bill you for according to their contract agreement. You have to educate yourself about your policy’s options, so that you do not put yourself in a situation which gives your insurance an excuse not to cover your costs. Each of my children was born into a different health insurance plan. So I got to learn that changes policies can result in huge differences in one’s out of pocket costs. With my first child, I had the traditional type of insurance that after a deductible covers 80% of medical expenses. Of course, the remaining 20% came out of my pocket. Now 20% may not sound like a lot, but it adds up to well over a thousand dollars in the course of a completely uncomplicated pregnancy and delivery. The doctor’s fee alone was $5000 (this was 12 years ago). That fee did not include the cost of lab work, ultrasounds, or the hospital stay. At Columbia Presbyterian at the time, the rate for a semi-private room, for which expectant moms were encouraged to bring our own pillows from home and nursing attention that reflected an attitude of not altogether benign neglect, the charge was $1225 per day. The nursery care was $750 per day. Any pain killers would incur additional charges, but they didn’t offer me anything when I was in labor despite my complaints about the pain. Oh, yes, there also is a delivery room charge, but since my baby was born in the elevator (after waiting in the hospital for some 16 hours – but that’s another story), they couldn’t tack that one on to my bill. So even in the simplest of deliveries without even the aid of the episiotomy that they seemed to have planned for me, my share of the maternity care costs was significant. Just after my first was born, we switched to US Healthcare and to a doctor affiliated with Einstein. As in the case for most HMO’s, all maternity costs were covered 100% for in-network service providers. In this case, we did not have an uncomplicated birth. In the beginning of my seventh month, I had a placental abruption and an emergency C-Section. As a result, I had to stay in the hospital for 4 days, and my baby had to be in the NICU for 3 weeks. Even after she was discharged, my preemie had several appointments with specialists that are not necessary in normal births. I don’t know what the total fees amounted to because I was not responsible for them, but I would estimate that the hospitalization and doctors’ bills would have amounted to $20,000 or more due to all the additional procedures and the extended stay. That does not mean that the insurance paid the doctors that amount. They only pay the set contract amount, which is often far lower than the fees charged to individuals would be, so don’t feel too indebted to your insurance carrier for paying your medical expenses. When I was expecting my third, we were on Oxford insurance and living in New Jersey. Though it carried much higher co-payments, Oxford’s coverage, like US Healthcare’s, was designed to cover maternity costs 100%. So I was surprised that the office demanded $20 from me each time I came in. By the third time, I figured out something didn’t jive. Then they told me that the doctor had not yet entered the pregnancy diagnosis and so was billing the insurance – and me – for each visit separately, rather than chalking them up to set fee for maternity care. Unfortunately, the doctors I went to (who were recommended) were not content with the fee set by the Oxford contract even though they had bound themselves to it. So they come up with a plan to circumvent the limitations and get a few hundred dollars more out of Oxford and $60 more out of me. When I voiced my objections, the office manager said, “$60 is not so much to pay to have a healthy baby.” That response ignores the fact that those doctors were not only cheating me, but cheating the insurance and all the people whose premiums go into maintaining the insurance. While I tried to report this to Oxford, the “customer service” people didn’t do anything about it and did not seem to be the least bit concerned about being defrauded. So I complained to the insurance agent of my husband’s employer. She took action to force the doctors to refund the co-payments they collected beyond the first visit. What was the doctors’ response? They sent a cool letter refusing to keep me on. That was a consequence I could live with. I found another practice that proved quite competent, as well as honest. I stayed with them through the birth of my next child. While there were insurance changes along the way, they did not have a major impact. Based on my experience, I would recommend you get an insurance plan that gives you 100% coverage for maternity. Even though 10% of the cost of a standard delivery may be manageable within your budget, the costs can shoot up if something unexpected happens while you’re expecting. When your income is limited, such expenses can be devastating. However, you also have to consider if the doctors and hospitals you prefer are included in the plan. Remember to review all the options, including premium costs, out of pocket expenses, and in network limitations, so that you make the choice that’s best for you. ----------------------------------------------------------------------------------------------------------------- From the fall 2006 issue: The Bandwagon Versus the Budget
When you start setting up a new household, you will find that there are many things you need. The basics include something to sleep in, something to sit on, something to eat at, something to eat with, and something to prepare your food in. The cost of the basic bed, chair, table, pots, and pans should fit within your budget. The question is can you stretch you budget beyond the basics? While shopping for the basic necessities, your eye will inevitably be drawn to the more luxurious offerings. Then you may start thinking: “Why should I settle for just a bed and a dresser when I could have a beautiful bedroom suite in mahogany? Why do I have to choose my linen from the clearance bins instead of the stunning 500 thread count designer sets?” Your voice of reason would answer: “A thousand dollars is the maximum you can spend on the bedroom, including all furnishings, pillows, sheets, and blankets. That is why you cannot buy the designer pieces.” As you are a reasonable person, you resolve to stick to your budget. But then you hear another voice pipe up, “But everyone today starts out with a full bedroom set and top of the line linen.” Where did that voice come from? It could be from a friend, a relative, or even inside your own head. It is the voice of the bandwagon argument, named for the image of jumping on the bandwagon to join everyone else. It is an argument frequently used in advertising, most obviously in slogans such as, “Everyone is doing it.” What is understood by that statement is if everyone is doing something, then you must follow suit. When you were in school, you may have tried that argument on your own mother by saying, “Every girl goes to Florida without her parents for winter break.” Likely, you mother would have responded: “Well, ‘everyone’ is not my daughter,” or more classically, “If ‘everyone’ decided to jump off a bridge, would you do it, too?” Of course, for teenagers who are easily swayed by peer pressure, the answer would actually be “yes.” But your mother was correct in not being swayed by the fact that other people were doing what you wanted to do. Following the latest fads or emulating whatever the “in” group appears to be doing is a form of behavior that is alien to our core values. Such conduct is based on the logic of the bandwagon argument, but that logic is faulty. Though we do say “acharey rabbim lehatos,” that only holds for competent Torah authorities. The truth is that you cannot ascertain that something is right for you to do on the basis that other people are doing it. For that reason, the bandwagon argument is one of the logical fallacies that students of rhetoric are trained to look out for. It is a fallacy because something does not become valid or necessary simply because many people pursue it. Should you find yourself in the unwelcome situation of being surrounded by smokers, would you light up also? If you are still in possession of the sense that has become all too uncommon, you would not only resist but remove yourself, or get them to move, so that you can breathe. On the hand, you would accept their offer of a cigarette and light and proceed to inhale carcinogens if you opt to follow the bandwagon.. The bandwagon fallacy is something you must train yourself to look out for when planning your purchases. If you are not aware of its hazards, then you may find yourself riding the wagon right over the bridge your mother referred to, but in this case, the bridge is your budget that keeps you from falling into the pit of debt. To avoid that danger you must learn to distinguish between what you really need to meet the basic requirement of food, clothing, shelter, and some recreation in accordance to your income, and what you could think you should have because other people have it. For instance, all your friends started out in a 2 bedroom apartment. After doing the math you find that a budget based on your income will only cover the rent for a one bedroom. Will your home decision be based on the reality of your situation or on joining the bandwagon? Even if you could swing the larger apartment if you dip into your savings, consider this: living within your means will allow you to keep that safety net of savings growing so that there will more there for you when you really need it. Stint as a couple so that you will not need to stint when your family grows and you really do need more space, food, and diapers. The Gemara’s recommendation when planning one’s budget is to dress within one’s means, to eat below one’s means, and to honor one’s wife above one’s means. Notice there is nothing about one’s neighbor’s means. You have to consider your budget from the perspective of your own income, and even then, you should not spend the maximum that you could afford. The advice is to dress within your means but not below it: so your clothes should be as good as you can afford within your budget. That means you shop within your price range and forego a bandwagon trip to the exclusive boutique where your neighbor picked up a frilly skirt for $350. Food should take up less of your budget than what you may consider given your income. For example, say you really could afford to eat lunch out everyday as you see the people all around you do. What will decide you? On the one hand is the appeal of the bandwagon – seeing what the crowd does and following suit; on the other hand is the significant amount of money that can be save by brown bagging your lunch. Let’s say you want to enjoy a tuna salad and iced tea: you can either pay upwards of $6 for it, or prepare it at home for a total cost of $2 (or less). That $4 (or more) a day turns into $20 a week, which adds up to over $1000 in a year! So what are to make of the counsel to honor one’s wife above one’s means? The measure here again is internal, not based on what other wives are getting. For instance, a husband who plans to buy himself a new Yom Tov outfit and allocates X amount for it should be willing to allot his wife a greater amount. Yet, that does not mean that she should blow the whole year’s budget on a couture outfit – even if her neighbor just got one. Similarly, someone earning $40,000 a year would not be obligated to buy his wife a $4000 fur coat (or, more commonly, a custom sheitel). Of course, honor to one’s wife can be accomplished without spending a cent, by demonstrating consideration in conversation and in household chores. Complimenting her on the way she looks in what she does have may make her feel better than telling her to buy something new. But the bandwagon doesn’t show such private practices. Admittedly, it does take more effort to show honor without money, but you cannot always have your wallet do the talking for you if you are to have an emotionally rewarding relationship in which the measure of all things is not how much it costs in dollars. Living within your budgeting does not mean leading a life devoid of fun. Just as you must budget for the basic necessities of life, you must budget for recreation. Yet, again, it must not be determined by what others do, but by what is affordable for your income range. You may have neighbors who summer on Fire Island, winter in Puerto Rico, spend Pesach in Switzerland, and hold season tickets for the Yankees, Knicks, and Rangers. Can you keep pace with them? Unless you’ve just won the lottery, don’t even try. Yet you can find vacations and forms of entertainment that will not leave you paying off credit card debt. Don’t focus on what you cannot do but on what you can. Your three day trip to Boston may leave you with as many fond memories as the trip to Europe your rich friend took. A good book could take you places in your imagination. A good shiur could take you to new levels of inspiration. A free show or concert in the park can be as enjoyable as one on Broadway. But not if you’re watching what’s happening on the bandwagon instead of enjoying what you are doing. Just let that bandwagon go by and enjoy the show. You’ll not only be more secure emotionally, but financially, as well.
From the winter 2006 issue: Budgeting Tool #1: Monthly Budget
Tracking and Budget Summary by Sephardi Lady
SephardiLady holds a BA in accounting. She has worked in government audits, and currently freelances in accounting and tax. Visit her blog at http://orthonomics.blogspot.com/ for sound advice and insight – not just for finance. ---------------------------------------------- from the Summer 2008 issue Take a Break Without Breaking Your Budget by Ariella Brown The best things in life are free; for everything else, there’s Master Card. That could be the slogan for a vacation to Washington DC. This is one place where the best things to see are, in fact, free. When I say "free," I mean totally free – not "free" like the places in New York that claim to be free but extort a "suggested donation" admission price from all visitors. But while you get in to the many government buildings, monuments, museums, and the zoo without being buttonholed for a cent, the food, lodgings, and parking within the city do not come cheap. With a bit of research on where to go, to stay, and to eat, though, you can put together a very affordable vacation at our nation’s capital. You can return from your vacation feeling very virtuous for having been enlightened without lightening your wallet too much. Below is an overview of some of the highlights based on previous summer stays and a winter break visit this year.
The Museum of Natural History at 10th Street & Constitution Ave. NW, in Washington, D.C. 20560 202-633-1000.Regular hours are 10:00 a.m. to 5:30 p.m. With extended hours until 7:30 on certain dates. While it doesn’t have as many dinosaurs on exhibit as the natural history museum in New York, it does offer some and, even better, scientists working on real fossils right on the premises. Its gem collection, with the famous Hope Diamond (pictured on this page), is extremely impressive. You can buy replicas in various jewelry forms in the gift shops.
There is so much to see in Washington DC that it is nearly impossible to do it all in single trip, especially during the summer when you are bound to encounter lines to enter popular attractions.. But if you plan your days early and head out later for the places that do not require timed admissions or tours for entry, you should be able to tick your must-sees off your list. As parking is rather scarce in the middle of town, be prepared to pick one spot and walk between buildings. Plan your itinerary accordingly to economize your time and travel. With the right planning, you’ll have a great time with very minimal expense. Enjoy some of the best on offer for free for a vacation experience that is indeed priceless.
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