Advice & Tips

You can almost smell the turkey now. Thanksgiving is just a couple of days away. You can look forward to a festive day filled with lots of fun, lots of family gossip and loads of carbs. So while the gym may be open the next day, there is an even better way to burn those carbs – shopping. Yes, the Day After Thanksgiving sales are this Friday. With so many sales and promotions, it’s hard to know where to start.

Here are the Do’s & Don’ts for The Day After Thanksgiving so you DO end up with deals that DON’T break your budget.

Do’s

1. Do your homework – Before showing up at a store at 5am just to join the crowds, do your homework. First make a shopping list of all the gifts you need to buy and the amount budgeted per gift. Second browse the Black Friday ads either in your newspaper or online at bfads.net or dealnews.com/blackfriday
2. Do shop on Thanksgiving – Physical stores may be closed on Thanksgiving, but online stores are open and brimming with deals. Many retailers will offer special Thanksgiving Day deals and promotions to entice you to step away from the turkey and shop. If you want to shop at physical stores, wait until night time and hit the outlets. North Georgia Premium Outlets open at 12am on Friday.
3. Do know price match policies – Instead of running around town from store to store, ask your favorite stores about their price matching policies. Many stores will honor the price in a competitor’s ad, you just have to ask and show the ad. However limited quantity or time items may be excluded from these policies. Target and Wal Mart are in a particularly fierce battle and look to sway the other’s customers with price matching. Dealnews.com has a nice price match policy reference list along with customer service numbers.
4. Do learn the return policy and get a gift receipt – Stores have gotten even more stringent with their return policies this year. Make sure you know how and when an item can be returned. It is also helpful to provide a gift receipt with the gift. This is most important when purchasing electronics as many times they have limited return periods and even restocking fees.
5. Do dress appropriately – Shopping on Black Friday can become a long day. Make sure to dress in warm layers that you can adjust as you go through the day, especially if you plan to be start shopping at 5am. Keep other items to a minimum. Bring a small bag and only the credit cards, checks or cash you need that day, not your regularly packed wallet.

Don’ts

1. Don’t leave the house without a plan – If you don’t know what you are buying or whom you are buying for don’t go shopping. Hitting the stores just to go deal shopping is no deal at all.
2. Don’t buy for yourself – The purpose of Black Friday is gift shopping. You are looking to save money on gifts for others not gifts for you.
3. Don’t rush to buy, especially electronics – Let’s be honest, you’re not standing in line in the cold at 3 am to buy an LCD TV for your uncle Bob or your kid’s teacher. You are buying these expensive electronics for yourself. If it’s for yourself, wait until after New Year’s to buy. You can get a better deal then and avoid the crowds. New electronics come out in early spring and stores will have lots of promotions on existing models early in the year.
4. Don’t forget about coupons – It’s easy to get overwhelmed by all the sales and promotions but don’t leave money on the table by forgetting to use coupons. Stores have many coupons this time of year, so pair them with the sales and get even more savings. ShoppingQueen.com will feature lots of printable coupons.
5. Don’t worry about missing out – Black Friday is no longer the only big shopping day. So if you didn’t get all your shopping done, don’t worry. Cyber Monday is next week and you can take advantage of sales and promotions online. Tune in next Monday to hear how to snag the best deals on Cyber Monday.

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Are you looking forward to February? Yes, it’ll be nice to get flowers from your honey on Valentine’s Day. But even better is getting credit card reform from Uncle Sam. The Credit Card Accountability Responsibility and Disclosure Act or Credit CARD Act for short was signed into law this spring and most of it goes into effect next February. It is the most wide ranging credit card reform we have ever had and it couldn’t have come at a better time.

Wondering what all the reforms mean to you and the cards in your wallet? Here’s what to expect.

Rates

The most important part of the new law will be its rules on rates. However, the key to taking advantage of all these benefits is to make sure you pay your bills on time. If you’re not a good customer the bank will not be nice in return.

1. Retroactive rate increases or universal default are now banned.
2. There can be no rate increases in the first year unless you have a promotional rate.
3. If you have a standard fixed rate, your rate stays the same for the life of your balance.
4. You have to be notified of future rate increases to your standard fixed rate at least 45 days in advance. AND the rate increase would only apply to new purchases not your existing balance.

Payments

1. Before issuing new cards or raising limits, banks must consider your ability to make the payments. Credit will not be as easy to come by as before.
2. Payments will be due at the same day and time each month.
3. Your payments will be applied to your highest interest rate first.

Fees

1. Over the limit fees can only be charged once per month and only if you have opted in to this fee. If not, your transaction will simply be declined and you will have no fee.
2. Penalty fees such as late fees must be reasonable as deemed by the Federal Reserve Board.
3. Your finance charges must be based on your current balance not your previous balance.

College Students

1. No more free T-shirts. Credit card companies can no longer offer any freebies or other incentives to young consumers for filling out a credit card application.
2. Everyone one under the age of 21 must have a co-signor unless they can provide proof of their own independent income.
3. Marketing by mail and on campus will be limited.

A Good Resource

Consumer Reports has put together an easy to read overview of all the changes on their Credit Card Reform website.

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Healthcare reform is on the top of the government’s agenda, but it’ll be quite a while if and when we see any changes. In the meantime, healthcare costs are rising faster than inflation and Americans’ wallets are taking a hit at the doctor’s office and especially at the pharmacy. The drugs your doctor prescribed help you get well, but their costs make your wallet sick. So how can you and your wallet get some relief?

You don’t have to be at the mercy of high drug costs. Here are some tips to keep costs in check.

1. Change your thinking – Get that old notion of “the higher the price the better it must be” out of your head. Brand name drugs with flashy ads and packaging don’t heal you any better than some cheap generic alternatives. While you might be able to tell the difference between a real Prada bag and a cheap knock off. That is NOT the case with drugs. Your body can’t tell the difference.

2. Tell your doctor – When you are discussing treatment options with your doctor, make sure to tell her you prefer generics or other less expensive options if they will give the same result. Doctors don’t know the details of your insurance plan or out of pocket costs. You have to tell them. And tell them every time. Don’t assume they remember your preferences from your last visit. They need to be reminded.

3. Don’t fall for the free sample trick – Many patients believe they are saving money when their physician offers them free samples. Most of the time, it is costing you more. The majority of free samples are for brand name drugs that you would continuously use on a regular basis. The drug companies hope to get you “hooked” onto their more expensive drug. So make sure you really understand the costs of the free drug before you accept.

4. Talk with your pharmacist – Most people don’t realize pharmacists know more about drugs than physicians. Pharmacists know when new generics come out or when brand name prices are lowered. They can also recommend alternatives your doctor may not be aware of or forgotten. Doctors tend to prescribe what they are comfortable with and have relied on for years. Also, pharmacists have access to your insurance costs, so they are in a much better position to give you cheaper options than physicians.

5. Take advantage of store competition – Drug stores, grocery stores and mass merchandise retailers like Wal-Mart, Target and Costco are all competing against each other for your pharmacy business. They offer special prescription drug discount programs as low as $4 for a month’s supply of popular generic drugs. Publix actually offers FREE antibiotics. If you need more than one month’s worth, Costco has a great discount program if you are buying in bulk. And under federal law, you can shop at the Costco pharmacy without being a member. Here is a resource for the drug discount programs available.

6. Shop by mail or internet – If you must use a brand name drug for an extended period of time, your best bet for a good price is by mail order or internet. First look to see if your insurer offers a mail order program. Your insurance company generally has the best negotiated prices with them. Also check out drugstore.com and Costco.com. While they obviously can’t show you any insurance discounts, they clearly display their drug prices online for easy comparison shopping. Just be wary of other online websites. There are many online pharmacy scams.

7. Change your health – We started out talking about changing your attitude to save money on your prescriptions. But the real way to save is to change your health and eliminate your prescriptions altogether. Many chronic conditions people control with drugs can be dramatically improved with better health. Losing weight, eating healthier and exercising can help many ailments such as high blood pressure, high cholesterol and diabetes. The Surgeon General actually now has a great website to help you get healthier, http://www.healthierus.gov It has many resources and guides that are very user friendly.

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Who’s got you raving or crying about their customer service? Every week I feature my experiences and reviews of the best and worst customer service experiences. Most of the time they are personal experiences but every so often some news worthy experiences might also make the final cut. So now here are this week’s Best & Worst Customer Service Awards:

Best Customer Service:

It’s such a pleasant surprise to get great customer service from an unexpected place. This week I was looking at my account online at Citibank. I had a question but didn’t feel like picking up the phone and playing number limbo. So I looked around on the website and saw “Send a Secure Message.” So I decided to give it a try and if I hadn’t heard anything in a couple of days then I would call. I sent the message and within FIVE minutes I had an email saying to check the Message Center for a reply. How shocking is that? The reply was a true reply by a person not a auto-generated messaged and get this it actually solved my problem.

So kudos to Citibank for actually providing customer service and in a very timely manner. The only suggestion for improvement I have is the format of the Message Center. The reply was posted in the original message. So when I went looking for it, I didn’t see a separate message and it took me a while to realize where to find the reply. It would make more sense to have a separate message for the original question and a separate message for the reply.

Worst Customer Service:

First of all I am not a coffee person. But every so often for a business or personal meeting I will go to Starbucks. With spring heating up I ordered a Tazo iced-tea. When I paid for it I asked how much are refills and was told they are free. They handed me my drink, and I asked why it is so orange. The prompt reply was that is the color it’s supposed to be. I then discover it has lemon. So they remake it.

After my meeting as I am heading out, I ask for a refill and they say its 53 cents. At that moment I had a decision to make. Pay it, Fight it or Walk out. I chose to walk out with a sour taste in my mouth (and it wasn’t from the lemon.) Now 53 cents was not going to break the bank, but it just bothered me that they said one thing before I purchased my drink and one thing after I purchased it.

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Yes, at least that’s what the government believes is true. The Consumer Product Safety Improvement Act (CPSIA) set to go into effect on February 10, 2009 will require all products manufactured for children (up to age 12) to undergo testing for lead and phthalates. Any item not tested will be treated as a “banned hazardous substance” under the Federal Banned Substances Act and can not be legally sold in the United States after that date. Thus second hand clothes and toys sold at thrift and consignment stores will suddenly be considered “banned hazardous substances.”

In light of last year’s widespread issue with toys manufactured with high levels of lead, Congress swept in and enacted this law. While I agree with the law in spirit, afterall I do have two small children, I disagree with the law’s application.

I am sure there are probably many toys on store shelves today that have excessive levels of lead; however, the vast majority of toys and clothing do not. Thus suddenly making all new and used clothing and toys on store shelves “banned hazardous substances” at the stroke of midnight on February 10th sounds ludicrous to me.

While sellers of used or homemade items seem to be the ones affected by the law. It actually has much more far reaching effects.

The law affects both new and used items. In essence this law is a retroactive law. While it goes in effect on February 10th, it actually affects products manufactured months or years before. All inventories are required to have testing in order to be legally sold. This could potentially throw thousands of consignment, thrift and small mom and pop shops out of business. Even large corporations can be hugely impacted. One large retailer which has remained anonymous estimates the value of its affected inventory to be as high at $500,000,000.

The cost of compliance with this law could make children’s products much more expensive. Not only will you not be able to purchase second hand items, there will be less new items to go around. Imagine if overnight you could no longer buy a used car. The prices of specially tested new cars would suddenly become more expensive. So whether you currently buy new or used items, the new law would cause prices to go up for everyone.

There has been little mention of this in the mainstream media. Futhermore, I have not been able to find clear directives to manufacturers and resellers as to what all the reuqirements are and how to comply with them.

Consider reaching out to your elected officials and asking them to step in with some changes and revisions.

References:

Los Angeles Times – New safety rules for children’s clothes have stores in a fit

BabyCheapskate – The End of Second-Hand Kids’ Clothes and Toys

Consumer Product Safety Improvement Act

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I was on Atlanta & Company again today. The segment went well. But the best part was meeting and chatting with Maureen McCormick aka Marcia Brady. She was very nice and friendly. I had a chance to meet her in the green room while we were waiting for the show to start. She looked great for being 52!

Now back to the reason why I was on Atlanta & Company. I was sharing my perspective and tips on the current financial situation. Here are the notes from the segment:

Many financial pundits are projecting a very gloomy future. But the future doesn’t have to be so gloomy.

Change Your Perspective

Just like constantly looking at a clock makes time go by slower, constantly looking at your stock and retirement accounts makes market fluctuations seem even more painful. Take a step back and breathe. Unless you live on Wall Street, the stock market is part of your long term savings strategy. Daily fluctuations should not rattle you.
Even if you are close to retirement and are worried about how much you have “lost” don’t be too worried. Remember retirement is a long term perspective as well. Just because your account is down 30% doesn’t mean you have lost that much. It’s not like you are going to take out all your money next year. You will only take out a portion of your account, so the loss will only be on that portion not the entire account.

Don’t Be Penny Wise and Dollar Foolish

It’s easy to be tempted by sales and coupons and to spend time chasing the savings they can provide. But here are few things to keep in mind so that you really do save money:
1. Whether it is toothpaste or a T-shirt don’t buy something just because it is on sale. If the item will not be used by you or your family then you have essentially thrown your “savings” away.
2. Don’t get consumed with finding coupons (don’t forget about coupons on ShoppingQueen.com) only to let your bills pile up. I have seen many people chase sales yet complain about late fees and interest charges on their past due bills.
3. Concentrate on monthly savings on bills. This is where you can see the savings add up. Here’s how:
a. Cable, phone and internet services: With so many choices for internet service as well as cable and satellite services, you have competition working for you. Call your current provider and ask them to match other providers’ rates. Most of the time, you will get a rate discount.
b. Credit card rates: Credit card companies send you a lot of offers before you finally become their customer. Once they have you, they don’t want to lose you, especially if you carry a balance and pay finance charges. Save money by contacting the credit card company and asking them to give you a lower rate. If you have good credit and have been paying on time, they will usually knock a few percentage points off your rate.
c. Natural gas service: Do you know how much you are paying per therm? Is it the best deal around? (Only for Georgia) To find out visit the Public Service Commission’s Natural Gas Marketer Price Chart. (http://www.psc.state.ga.us/gas/pricecard.asp) See what prices are out there and call to see if your marketer can match the rates or if you should switch. This can save you a hundred dollars or two in the winter depending on your current rates.

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Every month I have half a dozen finance and business magazines arriving at my house. Yet no magazine gets me as excited at Real Simple. This is my indulgence magazine. Forget about gossip, tell me how to be efficient and practical.

We are constantly reminded to be green and to recycle instead of adding to the landfills. But do you ever wonder where or how to recycle something? Real Simple has compiled an A to Z Recycling Guide. This is a excellent resource. For example, did you know there was even such a thing as the National Crayon Recycle Program?

And yes, I do donate and recycle all the magazines I finish reading.

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With the holiday season coming up, gift cards will be a great gift option for many shoppers. Most shoppers know to look for deals when purchasing items as gifts, but do you know to look for deals when purchasing gift cards? Here are some tips on getting gift cards for less:

1. Shop during special occasions – Retailers have gift card promotions during major holidays such as Christmas, Mother’s Day and Father’s Day. Many times they will offer an added bonus to a gift card purchase. You especially see this at restaurants. The Brinker restaurant group which owns Macaroni Grill and Chili’s for example offers a free $5 bonus for every $25 card purchased.

2. Look to credit cards – Credit card issuers such as Visa, Mastercard and Amex frequently have gift card promotions on their discounts website. Amex for example has an offer for 10% off Linens N Things or Visa has a discount for Spawish.com.

3. Costco: Costco and Costco.com offer a variety of gift cards for less than face value. You can find $100 worth of Starbucks gift cards for $79.99. Other gift card offers include restaurants, iTunes and Spafinder.

3. SwapaGift.com – This website offers discounted gift cards. If you purchase a card directly from SwapaGift, it is guaranteed. If you purchase one through one of it’s users, its only guaranteed up to $100.

4. Buying from eBay or craigslist – There are many listings on both sites for gift cards, but you have to be especially careful and do some legwork. You should ask to verify the balance before you purchase. You need the card number and the toll-free balance check number. You should also ask about the expiration date. Many cards have expiration dates where some or all of the value is lost.

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A friend of mine is getting married and asked me for some advice on how to cut her wedding costs. The average wedding these days costs around $30,000, so even saving 10% can be a great amount of savings. It’ll definitely help with the honeymoon. So here are a few of the tips I shared with her:

1. Look for non-wedding vendors for wedding deals. For example, Costco.com offers Weddings at Costco where you can purchase flowers, invitations and even your honeymoon.

2. Consider bundling or unbundling services. For example, some event facilities simply rent their facilities and give you the power to choose your own caterer and bring your own alcohol. Other locations require you to use their own or affiliated food and beverage services. Many times choosing your own caterer and purchasing your own alcohol to serve can save your money. Sometimes getting a bundled service might come out cheaper. This all depends on what is or is not included in the package such as linens, plates, glasses, cake service and more.

3. Don’t call it a wedding. When getting prices, first start over the phone and just say you are getting pricing and service information for an event. Many times vendors charge higher for a service related to a wedding than other kinds of events.

4. Don’t take prices and contracts at face value, negotiate. Ask the vendor if they can give you a discount or include other items and services without an additional charge.

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