In this episode of Tightwad Tuesday, I share my story of avoiding a unibrow, fraud alert, and the resulting love connection.
When your paycheck hits your bank account, it might not look like much.
Federal, State, Social Security and Medicare taxes are taken out. Medical, dental and vision insurance and your 401(k) contribution are withdrawn before you even see your check.
Automatic deductions such as your Employee Stock Purchase Plan, car payment and transfer to savings hit, too. Your net pay looks a lot different than your gross pay. Don’t let that fool you though.
When you look at one single net paycheck, your income stream might look small but when you look at how much money you make over your lifetime, it’s astounding!
I used to be excited when I bought something on sale. The “deal” was my indication of success. In hind sight, I wasted a lot of money with this mindset. Price is only one part of the equation.
A better way to think about your purchases is to determine the cost per use.
For example, when I changed jobs 3 years ago, I needed a lap top bag for client appointments. Professional looking was a must and something sturdy was vital. I decided on a black Michael Kors tote so it could double as a purse. I’ve used it just about every day for three years now and it looks brand new. I anticipate it will last at least another two years.
That tote was a great purchase. It was about $250.00 at the Michael Kors factory outlet store (not on sale.) Since the purse is a classic style, made to last many seasons and goes with everything I own, it was a winner.
In Episode 10 of Tightwad Tuesdays, I share thinking behind making a major purchase.
Skiing is my favorite sport so I bought new boots this season.
Were they an expense or an investment? You tell me!
What was your very best sporting goods purchase?
Have you heard of The Project 333 Challenge: Reduce your wardrobe to 33 total items?
The system consists of paring down the clothes in your closet to the items you love the most, fit the best and go together well. Now that’s a sensible idea! Courtney Carver, the mastermind behind Be More With Less, recommends 33 total items including footwear, accessories and jewelry. Workout clothes, pajamas, and sportswear are exempt.
Why would I pare down my closet to 33 pieces?
Are you looking to make your financial life easier? I just came across a tip you might have heard but forgotten.
Review your credit reports to spot errors – for free.
There are a lot of errors, by the way. A Federal Trade Commission’s study showed 25% of credit reports had errors and 80% of disputed claims produced some kind of modification. Since it is free, it’s worth it. Check your credit report at least once a year.
Guess what? I just got mine and it only took me 5 minutes from start to download. Most of that time was spent answering questions to verify my identity such as streets I’d lived on and dates of financial accounts I’d opened.
I am not one for buying on Craig’s list.
First of all, it’s time consuming. Once you finally find something fabulous, you have to connect with the seller. If the treasure hasn’t been sold yet, you still have to coordinate a meeting to take a look. By this time, you’ve already invested hours.
We are givers. In fact, research shows spending money on others makes us happier than spending on ourselves.
I don’t know about you, but I just want to make sure my gift is going to a real charity, the funds aren’t just spent on overhead, and the organization is professional. That’s not too much to ask is it?