Counting Pennies

As I was heading out the door today, I kept thinking that I needed to buy a few things I don’t buy too often (shampoo, liquid soap) and how that would affect my weekly budget. Then I realized that I probably always need something –If it’s not shampoo, it’s conditioner or makeup or cat food or … something! If that’s the case, then these 7 days will be an indication of more than just how much I spend but also of how badly organized I am that I need to go shopping every day!

Anyway, here are today’s expenses:

• Food (just some cheese I needed) - $3
• Beauty (well, shampoo qualifies as beauty, right?) - $12
• Skype (I use it for long distance calls; WAY cheaper than a regular phone and quality is perfect) - $5 added to my account, which should last me a while

Doesn’t look bad so far, but I need to take my cat to the vet tomorrow, so this is really going to mess up my budget. Seems like there’s always something coming up, right?

Today was a non-standard day, so I ended up spending money on things I wouldn’t normally spend on, like lunch at a local sushi place. I was out and about all day, and by the time it was 3pm I was starving, so I ended up sitting down to lunch. I don’t do this often (maybe twice a month), but maybe there are other “irregular” expenses that come up and end up ruining my budget, so it will be good to see how I do.

This is the breakdown for today:

• $10 – lunch and coffee
• $7 – a few things at the supermarket
• $10 – dog food (I buy good quality food; this is not an area I plan on saving money on)
• $3 – transportation

Not a very bad day, but I ended spending $30 and have very little to show for it. If this is an indication of what I normally do, it’s not a good one.

I’ve been trying to cut down my expenses to a minimum so I figured it would make sense to actually track every penny I spend for at least a week and see where my money is really going. It’s not that I think I’m wasting it, but it would be good to see if there are areas where I could do better. So starting today and for a week, expect to see a breakdown of my daily expenses. I’m hoping sharing them online will make me more aware (and afraid!) and help me get a better grip on my money. Each posting will actually reflect the expenses of the day before, so look for the first one tomorrow.

If you thought the flying car was a little expensive (I don’t, honestly!), you’ll be shocked to find out what other things cost. It seems that despite the crumbling economy and the shaky salaries, extravagant luxuries are still being bought and sold all over the world all the time. Like for example:

• Paying $3,829 for a haircut. London stylist Lee Stafford charges this for an exclusive men’s cut done at his home. Champagne included.
• Or dishing out $200,000 for the first G.I. Joe action figure. I mean… really? The original 1970 prototype is owned by a private collector.

• Compared to that, Barbie #1 may seem a bargain at $8,000. Of course, you can also buy the 40^th anniversary Barbie (produced in 1999) for $85,000.
• Anybody who knows me knows I have a weakness for bags. No shoes, no clothes. Just bags. So paying $27,700 for a Fendi bag somehow doesn’t scare me too much. Except that is made of crocodile leather, which seems too cruel to make it worth it.

• William Shakespeare’s signature is the world’s most expensive autograph, which may make sense since there seems to be only six of them in the world, none of them currently for sale. Auction price is estimated at $5,000,000.
• I love cheese. Love it. So much, in fact, that I may be tempted to pay a lot more than “normal” people would for a pound of special cheese. Not this one, though. It’s moose cheese. And it costs $900 a pound. And you have to go to Sweden to buy it.
• And if you thought making movies was expensive, just let me close with this price: $690,000. Sounds too low? Maybe, until you understand that that’s what a private collector paid for a movie POSTER in 2004. A poster. Just paper. It belongs to the 1927 masterpiece, Metropolis, and is one of only four in existence.

For some reason I always thought NYC had some of the most expensive zipcodes in the country. In a city where $1 million dollar buys you just an average house with a tiny backyard, it seems fitting that you wouldn’t dream of spending more than that anywhere else.

Turns out I was wrong.

NYC is in the 13^th spot when it comes to most expensive place to live. Beverly Hills is #15.

So who takes the top places?

Four areas in California, with Atherton at the top (closely followed by Santa Barbara), where the median house price is almost $2.5 million.

Just in case you’re wondering, this is what the average houses in Atherton look like:

That’s a 4 bedroom, 3.5 bathroom home with a theatre room, a billiard room and a heated swimming pool

Also a 4 bedroom, 3.5 bathroom house with pool, spa and large gardens. Also a sunroom, a library and two fireplaces.

Who said a summer party has to cost a fortune? If you’ve been pushing the idea of a get-together because you’re afraid of the financial setback, don’t worry. Not only is it possible to have a fun summer party for next to nothing, it’s probably more fun to plan it this way.

LOCATION

Having a party at home is the easiest and cheapest option if you’re on a budget. “If that isn’t an option, there are affordable alternatives,” says Coupons.com Family Savings Expert Kim Danger. “Local community rooms are often an option.”  This is the best alternative if you are throwing a large party or if you don’t have a backyard.

INVITATIONS

Skip the paper invitations and instead use Evite.com, where you can also send the guests a map with directions and other cool add-ons. Or make a paper invitation yourself using photos, craft paper or your computer.

DECORATIONS

Pick a theme. This will make it easier to set a festive mood without having to spend too much on it. “Candles, plants, Christmas lights, and posters are all great props,” says Danger. You can also try looking in your own yard for some greenery. “Take some cuttings from your bushes, shrubs, and plants and tie with an elegant ribbon or place in a vase.” In a rush? Try the Dollar Store for balloons, streamers and party favors.

FOOD

If money is really tight, make it a potluck. Take charge of the drinks and dessert and ask guests to bring a large dish to share. If you want to do everything on your own, try a buffet. You can mix more expensive items with cheap fillers such as potato salad, steamed veggies and chips and dip. For drinks, offer lots of non-alcoholic beverages to cut expenses (and keep everybody sober!). Offer large pitches of juice or Kool-Aid along with sodas. “Buy soda in 2-liter bottles, beer in kegs, or make a big pitcher of sangria or margaritas,” says Danger. 

Absolutely broke this weekend? You’re not the only one. You don’t need money to have a fun weekend.

• Go out for a picnic. You can get a few quick snacks to take along or simply use food you have around the house. There are no rules as to what picnic food should look like so get creative.
• Visit your local library for a few books, magazines or even DVDs. Then make yourself a cup of chocolate or homemade ice tea and just relax and enjoy.
• Treat yourself to a spa night –Right at home. Dig into your beauty supplies and search for creams, scrubs and masks you haven’t used in weeks. Have nothing on hand? Use fresh cucumber slices or papaya to make your own mask (lots of recipes online).
• Go garage-sale browsing. Even if you don’t buy anything, you’ll still have fun, but you’re likely to run into some cheap (but nice) stuff.
• Look for free outdoor concerts or festivals. Local community centers and parks often offer them on weekend evenings.
• Take a walk. Explore your town and what it has to offer. Walk in neighborhoods you don’t know well or simply take an unknown street on your way home.
• Sunbathe. Go to the beach or the local park to enjoy the warm weather. Just protect your skin and drinks lots of water.
• Be a tourist in your own town. Head to a local museum, visit famous tourist attractions and explore old parks and squares.

As I was doing research for an article yesterday, I ran into some incredible facts about money and how we see it and interact with it. While some of the points were really surprising, others are just sad. For example:

“92% of people would rather be rich than find the love of their lives” – This is really sad, isn’t it? I’m in the 8 percent that would much rather find my Soulmate than have a lot of money. But apparently that’s not what the world wants.  

“83% of Americans still pay with checks instead of credit cards” - Ok, where exactly are these people? I can’t remember the last time I saw somebody wipe out a checkbook to pay for something. Could this change depending on where in the country you live?

“One out of every four Americans believes their best chance of getting rich is by playing the lottery.” — Isn’t this a sad reflection of what we think about money?

“The average wedding in America costs a staggering $20,000” — I just can’t wrap my mind around this one. I mean, 20000 is a nice downpayment on a house. It’s a car or a trip around the world (it costs $19000 to spend 45 days onboard the Queen Mary II, the world’s most expensive cruise).

I have to say… this is a really sad reflection of the world today.

You know how you always hear stories about people who win the lottery and then spend all the money in just a few months and go back to being poor? Well, I just realized today that if I’m ever a millionaire, it won’t be for long.

Why?

Because I want a moller. This is just the coolest, most amazing thing EVER. Yes, it looks like something out of a science fiction movie. And yes, it’s real. Meet Moller M400X Skycar®, the world’s first flying car. Of course you need to have at least $995,000 in order to buy one, besides having to order one right now and then wait for it to be delivered in 2009 (only 500 will be produced), but that’s ok with me.

They don’t exactly look like cars, and I’m not sure what the regulations would be for driving this down the highway, but I don’t care. I always wanted my own flying car. As soon as I become a millionaire, this is what I’m getting.

Did you ever walk into the Dollar Store to buy a packet of paper napkins and ended up spending $30? You’re not alone. Experts believe that many of us spend more than we should because we’ve been trained to see individual prices, rather than the total amount. That’s why supermarkets will tell you the price per unit, rather than give you the price per package. If you’ve been guilty of overspending in the past, you need to come up with a system to help you control your expenses. For example:

• Make a list and stick to it. Decide what you need before you leave the house and don’t buy anything unless you jotted down in advance.
• Bring a calculator and count the total price, so you don’t sweep into the idea of a price that’s not real.
• Don’t use the Dollar Store as an entertainment outlet. Just because something costs a dollar, it doesn’t mean you need it or should buy it.
• Avoid single serving packets. They may seem cheap but if you count the total bulk price, you’re probably paying 2 or 3 times the real price of the item.

At any given time, think long-term, rather than instant satisfaction when buying something. Just because an item is cheap it doesn’t mean it’s actually a bargain.