October 2009 Archives

Credit_card_evil1  A man got a credit card offer with a 79 percent interest rate. Seriously. No lie. Yes, I'm incredulous about it. I mean, have the credit card reforms hurt the industry so bad that it must charge 79 percent interest rates? There's a movement to get the next round of reforms moved to December instead of February.

Whatever happens, no 79 percent interest rates, please.

What's the highest credit card interest rate that you've ever had? Mine was 18 percent. That card didn't last long in my life. Too HIGH maintenance. ;)

*Illustration courtesy of thepiggybanker.com

Pfizer  

My tweep peep Lesley Mitchell, who blogs as One Cheap Chick at the St. Lake City Tribune, wrote about Pfizer offering free medicine to the unemployed. You have until Dec. 31 to apply.

Have a great weekend!

Fruga!

If you have lost a lot of money in your Roth IRA,  after converting to one, today is the deadline to have it changed.

This is a guest post from Rande Spiegelman, CPA, CFP®, Vice President of Financial Planning, Schwab Center for Financial Research.

Wouldn't it be nice if just once in a while we were allowed a do-over for the occasional financial misstep? 

Luckily, for investors who converted to a Roth IRA and regret it, the IRS offers a rare opportunity for reprieve, and they call it recharacterization:

  • recharacterization allows you to reverse an IRA conversion; the reason doesn't matter and no explanations are necessary. 
  • If you converted all or part of a traditional IRA to a Roth IRA, but the market fell dramatically after your conversion (as in 2008), you can reverse the transaction to reconvert at a lower balance and shrink your tax bill.
  • Important to note, for the 2008 tax year, the deadline for recharacterization is today on October 15, 2009.
  • If you converted from a traditional IRA to a Roth IRA and later recharacterize that conversion, you can't reconvert back to a Roth until the calendar year following your original conversion (2011 or later if you converted in 2010, for instance) and you must wait at least 31 days after the recharacterization.
  • Get help if you need it.  The details, rules and requirements to qualify for a recharacterization can become complex.  You’ll ultimately want to check out the recharacterization instructions on IRS Form 8606 and consult with your tax professional.

 


Oh my! My twitter peeps, aka, my tweeples, have been buzzing about this blog, Thirty Bucks a Week. A Brooklyn couple is spending $30 total per week on food. Let's just say that the lovebirds even create NEW soups out of the soups they've already made. They are a member of a food cooperative which makes it much easier on them. A few bloggers, such as The Broke Socialite and Running with Tweezers, are doing the challenge.  

I noticed that the couple, Tina and Phil, use lots of lentils, soups and vegetables. The photos of the food look pretty yummy.  

When I launched The Frugalista Files in 2008, I didn't know how to cook. We'll, I've worked on that quite a bit, but I never have opted for a $15 per week budget. I'm not sure I'm going to join the challenge, but I will get some recipe tips.

Could you eat on $15 per week? What is your food budget? What is your favorite, least expensive meal? Would you take the challenge? I think No-Buy Month is plenty for me!

Hbcu Greetings, Frugalistas!  So I got back last night from a MARHHHVELOUS weekend at the first Blogalicious conference, a networking event for women bloggers of different ethnicities. I laughed. I cried. I networked at the W hotel in midtown Atlanta. :)  I had so much fun.

The thing about blogging conferences (or any conference for that matter)  is that they are rife with sponsors who are looking to get their products in front of tastemakers and influencers.

The swag (stuff we all get) was plentiful. Our registration bag was the size of a small village. At the different sessions and meetings,  registrants were offered free lotion, hair care products, eyelashes, blankets and Barbie dolls. I had oodles and oodles of stuff.  

So leaving the conference, I had an extra bag of "stuff."  I filtered some of the swag, giving it off to the local bloggers. I know Shameeka, who blogs at The Broke Socialite, is doing a shelter run, donating some of the lotion and blankets to the less fortunate in Atlanta.  

When I got to the airport, I ran into a swag dilemma. An airline agent made it clear I would have to check my luggage or get rid of some swag. I had no intention of paying $25 to check a bag due to the stuff I accumulated at the conference.

I thought about giving the swag away to someone at the airport, but for security reasons, I nixed that idea. I didn't want to be put "under watch" for the suspicious activity of giving way items at the airport.  I did the unthinkable. I tossed some of the swag in the trash. I had free rice and other snacks in my swag bag. I was able to save the Barbie doll, make up and some hair care products.  *Le sigh*

I feel pretty bad about being wasteful but I was up against the wall. I'm not a swag hag. It's just that the registration bag for the conference was filled to the top. 

Should I have spent the $25 to check my luggage to keep the swag? Should I have not taken any of the swag? Am I a swag hag?  Do I need to practice the "Swag Surfing" dance to get my swagger back? I can still shake it!

Logo There's a new site on the world wide web, cheapism. It's a product review of cheap products. Here at The Frugalista Files, the word cheap is not in our vocabulary, but I wanted to shout out a growing blog.  :)

I say the blog is worth a click and a gander. The site does the heavy lifting. I hate buying items that stink. It's better to read the reviews. Go cheapism!

Can you be both cheap and frugal? 

The New York Times had a video about pre-paid debit cards  and the amount of fees that the companies charge. Pre-paid debit cards are all the rage. I've even done a giveaway on my blog about the cards. I warned about the fees, but consumer advocates are really concerned about them because they are rising in popularity. Some cards charge as much at $30 per month in fees. Yikes! A lot of people who can't get a bank account can get the pre-paid debit cards. Because they are so new, they are not really regulated.

Do you use pre-paid debit cards? What do you think about them? Do you think they are taking advantage of poor people? Do consumers need to learn to read the fine print?

Donating my clothes and clothing swaps are something that I've done for my entire life. Growing up, my mother and I used to ship my adorable Esprit sweaters and other goods down to Texas for my cousins to wear. Likewise, my cousin's mom would ship up the clothes her daughters no longer could wear to me. I mean, when you buy quality things, they last a while. It was like a fun game that kept me connected to my cousins who lived several states away

My mother always had a philosophy that we should donate to people who we knew. We never donated to Goodwill because she didn't know who would use the clothes. My mother always worried that if we donated to the Salvation Army or even some charity groups, the workers would get first dibs on the best gear and the neediest people wouldn't get a shot at them.

Growing up in Chicago, we knew plenty of people through my mother's high school who could always use a coat or item.  When my mother and I cleaned out my closet, she always asked her friends if they knew a needy child (mom is a retired educator). We got a sense of satisfaction from knowing for sure that my beloved pieces would help a little girl look fly for free. I remember one time hearing about one of the girls we donated clothing to was excited to fit into one of my bras. TMI, but I wanted to share. You never know what someone else may need. We take so much for granted.

Now, as an adult, I've donated to Goodwill a few times for the tax write off. But recently, I donated clothes to a man who takes them back home to Haiti. I can't tell you how good it makes me feel to give clothing away to people who I know would appreciate them. I've gained a few pounds so most of the clothing would still be worn by me if I could fit them. A friend of mine also donated to the gentleman and reminded me that it's better to donate to needy people who you may know personally. Tax write off be damned.

Nowadays, with the economy being rather shoddy, a lot of people who were once very stable are now going to thrift stores to shop. So, needy people DO buy from thrift stores.

Also, people are buying the best items at the thrift store and selling them for a profit. I am a frugal capitalist, so I admire their hustle.

So does it matter who gets your donated items? Would you be upset if your donated clothing were sold for a profit on Ebay? Would you be upset if something you donated ended up in the hands of someone rich yet frugal? Should people care? Do you donate to thrift store or to needy people you may know personally? Should you donate to get the tax write off?

Girlontop

Silkfloral If you are looking for a more affordable way to spruce up your home, silk flowers are an option. Here is a guest post from Michelle Errair at Floral & Hearty Designs in Coral Springs, Fla.

Silk Flowers may save money:

 In today’s economy, businesses and households are looking to reduce expenses for many items, and very often, the first things to go are the “nice to have” items such as flowers for decorating your home or office.  But wait! You may not have realized that silk flowers can be an economical alternative to fresh flowers. Many silk flowers are so realistic that it’s nearly impossible to tell them apart from other fresh flower options. Once you factor in the cost savings, you’ll wonder why you ever bothered with real flowers!

Here’s a break down on the possible savings:

          o The average cost of a professionally designed silk floral arrangement customized to fit the décor of your home ranges from $150-$250.

 

          o Compare that to fresh flowers which average $20 per purchase; so if you calculate a $20 fresh flowers purchase every other week for one year (26 weeks) – those fresh flowers have cost you $520!  A silk floral arrangement reduces your budget by $300-$400 in the first year alone.

 

          o With little care, silk flowers can last upwards of 4 years bringing your total savings to close to $2,000!

 

Do you use silk flowers? Would you? Are they hard to keep clean?