FabSugar

Does Expensive Equal Good?

FabSugar — Mon, 19 Nov 2007 08:00:22 PST

4 Ways to Divide and Conquer Expenses as a Couple

SavvySugar — Fri, 27 Jan 2012 05:00:02 PST

Money tends to be a sensitive, conflict-sparking subject for couples, so deciding how to split expenses can be tricky. There are several different options for dividing payments, each with their own benefits and drawbacks. Here are four of the most common methods for splitting expenses, plus the potential pros and cons of each choice:

Divide all expenses 50/50. Splitting all costs in half is certainly a simple option, but the reactions may be a bit complicated. Sure, everyone's paying their "fair share," but the person who makes less money in the relationship may be frustrated that they're paying a higher fraction of their salary.
Pay in a ratio according to both salaries. If one partner makes $50,000 and the other makes $100,000, then all expenses would be paid in a one to two ratio so that the first person covers one-third of each bill. Dividing costs to correspond with salaries ensures that both partners are spending an equal percentage of their paycheck each month. The downside? Things may get messy with pay raises or pay cuts, and the person with a higher salary may grow resentful.
The breadwinner pays all. This is a good option if one partner stays home with the kids or has an artistic career with sporadic, unpredictable income. To prevent any bitterness, it's important for the nonbreadwinner to take care of other tasks around the home so that the responsibilities feel balanced.
Different bills for each partner. Another way to divide is to simply assign separate bills to each partner. Does one person watch television more often? They can be in charge of the cable bill. Does the other take long, scalding-hot showers? The water bill is theirs. It may be difficult to split things equally, but this is a great way to step back and recognize which habits are costing money.

When it comes to splitting expenses - and feeling satisfied with finances as a couple - the key is communication. Both partners should encourage each other to speak up and be honest about their opinions. It all comes down to balance, so it's important to treat money like any other responsibility and learn to compromise.

4 Skin Care Ingredients to Try (and What to Avoid)

Jaime Richards — Mon, 26 Dec 2011 04:07:14 PST

Every year it seems like there's some beauty ingredient that promises a perfect complexion. When it comes down to it, however, which product components are actually good, and which ones should we be avoiding? "The majority of over-the-counter products are all pretty safe," explains celebrity dermatologist Dr. Harold Lancer. "It's just a matter of how they are used. If a product is misused, that's a different story." But there are a few ingredients, when used correctly, of course, Dr. Lancer puts on his must-have list. Find out more when you keep reading.

How to Fix Your Booze-Induced Skin Care Woes

Jaime Richards — Fri, 16 Dec 2011 04:01:24 PST

Does it seem like all you've been doing lately is eating and imbibing in boozed-up beverage after boozed up beverage? While spiked egg nog, hot toddies, champagne cocktails, and mulled wine are all fine and dandy, the problem is that in excess they can wreak havoc on your skin.

The issue: "It doesn't matter what you are drinking, all forms of alcohol are dehydrating," says celebrity dermatologist Dr. Harold Lancer. "It's just a matter of how quickly it dehydrates you, which is usually a matter of how much sugar is in the drink." And if you think that the more expensive the red wine you're enjoying, the lesser the likelihood of it affecting you, think again. "Two-Buck Chuck is equally as dehydrating," Dr. Lancer warns. So to see what you can do to quell the after-effects of getting schnockered, just keep reading.

6 Things I Wish I Knew Before Buying My First Yoga Mat

Jenny Sugar — Tue, 25 Oct 2011 14:57:25 PDT

When I started practicing yoga over 10 years ago, I couldn't wait to own my first yoga mat. I impulsively bought a pretty purple one, based on color alone. Not the best move, as it began disintegrating after a few weeks. What a waste of $35. Like any fitness gear, it pays to do a little research and to know some tips from well-seasoned yogis. Here are things I wish I knew before buying my first yoga mat.

Not All Mats Are Created Equal
Just as there are many types of yoga, there are even more varieties of yoga mats. Some are lightweight for traveling, some are eco-friendly, and some are designed for classes where you don't sweat much. Choose a mat based on the type of yoga you're doing and the amount you perspire. Avoid mats made for other types of exercise like physical therapy or Pilates, as they can be too squishy or slippery.

If You Want It to Last, Spend the Dough
There are plenty of mats that costs $20 or less, but you get what you pay for in the yoga mat world. Typically found at huge stores like Target or Walmart, less-expensive mats not only wear down after a few months, but they're typically made with chemically-smelling plastics like PVC, which aren't good for the Earth or your body. Pricier mats like the Manduka Black Mat cost ~~a small fortune~~ over $90, but you're paying for a durable mat made to last a lifetime (or two). In the long run, you actually save money.

Keep reading for more tips on buying your first yoga mat.

7 Costly Debt Traps and How to Avoid Them

Kiplinger — Tue, 04 Oct 2011 00:15:40 PDT

We're thrilled to present this smart Kiplinger story here on Savvy!

Not all debt is created equal. While most forms of borrowing entail risk, certain credit decisions are more likely to lead you into a downward spiral of indebtedness. We call these debt traps.

It’s incredibly easy to stumble into a debt trap. All it takes is a brief lapse in judgment. Opening a new credit card account without understanding the interest rates and fees, or the implications for your credit score, is just one example.

No one wants to become mired in debt - especially when common borrowing mistakes are avoidable. Read on to educate yourself about seven of the biggest debt traps and ways to avoid them.

Buying Too Much House

In general, you should not spend more than 28% of your gross income on housing expenses, and your total debt-to-income ratio (including car payments, credit card bills, student loans, etc.) should not exceed 36% of your gross income. While those numbers are not set in stone, especially if you live in a high-cost area, they provide a good framework for calculating how much home you can buy, says Adam Granger, a mortgage consultant in Weston, Fla.

Next, figure out the maximum down payment you can make. Try to put 20% toward your new home to avoid paying private mortgage insurance. You also need to factor in closing costs, which typically range between 3% and 5% of the home price. So if you want a home listed at $200,000, you would need to budget at least $48,000 to cover 20% down plus 4% in closing costs.

It is also important to account for homeowners insurance and real estate taxes, both of which can alter your debt-to-income ratio dramatically, says Granger. You’ll probably want some money for decorating, too, and it’s always good to set aside cash for emergencies. If you’re not yet there financially, keep saving. It’s best to buy a home only when you can truly afford it. Buy one when you can’t, and foreclosure is a real possibility.

Read on for more costly debt traps.

Beautiful Wedding on a Budget: 5 Insider Tips From a Wedding Planner

Yahoo Shine — Mon, 03 Oct 2011 00:15:52 PDT

We're happy to present this article from one of our favorite sites, Yahoo! Shine:

Sure, it's fun to get all dreamy about having a wedding of Kim Kardashian-proportions. But since most of us won't be wearing a dress that equals several salaries or handing out thousand-dollar baskets of organic soap at the door, it's probably best to (eventually) wisen up about how to plan your own day, your own way. Shine spoke to veteran professional wedding planner Laura Patterson of The Ideal Day in Chicago about how to host an A-list wedding on a budget.

She shared these five insider tips.

Tech Tips For Working Remotely

Kristy Korcz — Mon, 19 Sep 2011 10:46:30 PDT

According to a new study, telecommuting is on the rise. In fact, 56 percent of decision makers at US companies think that working from home makes employees more productive and 53 percent of CFOs plan on increasing telecommuting options at their companies. If you're part of the lucky population that is or soon will be allowed to work remotely, be sure to follow these tips for maximizing your home office and making sure you're following proper coffee shop office etiquette!

At Home

Have a designated work area - The couch may be comfy, but working while hunched over on your sofa isn't the best idea for your posture. Get a real desk, or at least work at the dining table so you can prevent a sore neck and back later on down the road.
Keep a clean workspace - Speaking of a designated workspace, there's nothing more distracting than working amongst cords, cables, papers, dirty coffee cups, and whatever else happened to land on your desk while you weren't working. Start the day off right with a clutter-free environment by making a point to clean off your desk at the end of each workweek. Monday mornings will thank you.
Ready, set, share - Set up a file sharing service with your teammates so you can keep on top of document changes while you're working. Dropbox and Box.net are both great services for sharing documents and files between groups.
Consider dual monitors - More desktop real estate equals more productivity. Since you've got a good desk, you might as well make the most of things by allowing yourself more monitor space to see your incoming emails, web browser, chat windows, and spreadsheets all at once. No more clicking around, searching for the right window!
Set your schedule - Schedules aren't there to make your life miserable - they actually help get things accomplished. Be sure that your working hours are clear with your boss (even better if they're flexible to start and end times), and take regular breaks to stretch.
Communicate often - If instant message is your preferred form of communication, be sure you're available during your working hours, and remember to set the "away" notification when you've stepped out. This will be a big help for your co-workers who may be looking for you.
Keep track of expenses - If you're freelancing or building your own business, be sure to document and save receipts for purchases. You can usually write off expenses for computer equipment, Internet access, and even part of your rent if you work from home. I recommend scanning all of your receipts and storing them in a cloud-based locker so if by chance your paper files get damaged, you'll always have a digital copy. Same goes for any important documents you need.

Planning on posting it up at your favorite coffee shop? Some etiquette tips you may want to keep in mind after the break.

10 Things New Parents Don't Need

Kiplinger — Mon, 19 Sep 2011 00:15:21 PDT

We're thrilled to present this smartKiplinger story here on Savvy!

I'm expecting my third child, and as I sat in the doctor's office this morning, I thumbed through pregnancy and parenting magazines. I got a good laugh (as an experienced mom and personal finance writer) at the nursery necessities, diaper bag must-haves and ultimate registry guide I found on the pages of those magazines.

A $20 diaper purse to hold diapers within a diaper bag. A $48 sleep sack for baby. A $99 changing pad. A $450 toy storage unit for the baby's room. A $1,500 crib. There was even a six-page spread in one of the magazines with tips on organizing every room in the house (including closet and mudroom) to prepare for baby's arrival and what you need to buy to do so.

As crazy as the prices (and some of the products) may seem, it can be so tempting for first-time parents to purchase all the cute baby things they see in magazines or stores. But the last thing new moms and dads should do is rack up debt buying stuff their baby really doesn't need. Instead, parents should focus on buying things they really need, such as life insurance, and funding a college-savings plan for their child. See also: What New Parents Really Need and Smart Ways to Save for College.

So what items are a waste of money? It is a matter of opinion (and, trust me, people have strong opinions about this - as I discovered the last time I wrote about this topic). But here's a list I came up with based on my experience and the advice of many other parents I know.

1. A designer nursery. By this, I mean a room full of high-priced furnishings and décor. Your baby will not care whether his monogram is on everything, if the crib came from Target or Pottery Barn, or if the lamp, curtains and area rug coordinate. And visitors won't even notice the nursery theme when they see the main attraction of the room: your adorable baby.

Read on for more things new parents don't need.

Nudge Yourself to Better Finances

LearnVest — Fri, 17 Jun 2011 00:15:19 PDT

We're thrilled to present this smart LearnVest story here on Savvy!

We expect our gym membership to cost money. What we don’t expect is that it will charge us for not working out.

Yes, you read that right.

Gym-Pact is charging clients who skip workouts.

After we got over the shock, we loved this idea-using your pocketbook to prompt yourself to do the right thing.

It exploits our basic psychology: We hate our losses about twice as much as we like our gains, i.e. our distress over losing $500 equals our happiness over winning $1,000.

So, if the promise of rewards isn’t enough to keep you on track with your goals, do you think you would stay the course in order to avoid losses?

Nudging-prompting people to do what is good for them-was made famous in Nudge: Improving Decisions About Health, Wealth, and Happiness by Cass Sunstein. People are using nudging principles to stop smoking or lose weight, such as with this website that charges you for not meeting your goals.

Here’s how you can nudge yourself toward financial health in three big money areas:

1. Retirement

Saving for retirement requires the most nudging. It’s so far in the future, it always feels like you can get to it later. But because your investment is likely to keep increasing more and more over the years (around 7%, historically speaking), postponing saving for retirement is like turning down free money-tens of thousands of dollars of it.

If you haven’t opened a 401(k) yet, you’re in good company-even Tony Snow, White House press secretary under George W. Bush, couldn’t be bothered to enroll in a 401(k), and so didn’t have any retirement money saved up at the age of 52.

Nowadays, companies have “opt-out” 401(k) plans to help fix this problem. These programs automatically enroll employees, forcing them to opt out instead. Companies that switched to these plans saw participation rates skyrocket from 20% to 90%.

Read on for how to nudge yourself to retirement.