We don't do this formally for everything, but it is a gut check when we spend 'recreation' money.
Will I get as much enjoyment from this dress as I would from a new video game (we're tech nerds)? From 3 movies? From some new crafting supplies? From a dinner out?
It works on big purchases too - would I be happier with the fancy car, or with the cheaper one and a really big t.v? Even if you don't plan on buying the new t.v, fixing how much a given sum of money is worth in 'happy points' makes it easier to compare the value of differently priced options.
Sure the system isn't as well calibrated as it could be, but it's a lot of results for your effort.
Also, I'm not sure the method in the article works in an absolute sense. Say the thing that brings you the most pleasure ever is chocolates. Spending thousands of dollars to get truckloads of chocolate probably isn't going to make you any happier than spending twenty dollars. Enjoyment has a saturation point, after which you have to find a less efficient means of making yourself happier.
But as I understand the issue, the pension fund must be managed for the benefit of the retirees and the people who will eventually retire. If the trustees can be convinced that some policy (for example, better health benefits) will improve the long-term success of the company, then it would be entirely legal and proper for the pension fund to pressure the CEOs to institute that policy. The Wall Street Journal article seems to start by supposing that better health benefits would be a pure expense. If that's true, then the trustees would be violating their fiduciary duty by supporting it. (For example, if they supported a policy for the company to turn its profits into $100 bills and then burn them up.)
Sorry you don't feel like we were communicating before. I'm willing to take another stab at it if you are.
Basically, I agree with the philosphy (common here on Wise Bread), that people should live within their means and take responsiblity for their own success. That doesn't mean that I don't have compassion for people who aren't doing so well, though--especially when their situation is caused largely by forces outside their control. For every person who's in financial trouble because they waste their money buying crap they don't need there are at least as many people who are in trouble through simple bad luck such as an illness or accident. There are lots of people who made what seemed like prudent choices at the time that didn't turn out so well. And then there are a few people who were badly ill-used, some by actual criminals, others by people acting legally but behaving unethically. Dealing with those situations on a case-by-case basis is so expensive, that it's often cheaper (and sometimes fairer) to just soften the edges a little. Plus, we're all better off when money is spent on education, sanitation, public health, etc.
I'm still low-tech. We have a whiteboard on the fridge, where we write things in as we use them. On shopping night (usually the day before we run out of milk, heh!) I sit down with the Need list, my boyfriend, a piece of paper and a pen. "What do you want for diner this week?" So, we plan a couple of meals, they go on the whiteboard, then I copy things from whiteboard to paper in roughly store order. I go counterclockwise through the store: produce, a foray in to the main aisles for snacks/rice/Coke/spices, then to the back row for meat, fish, milk, eggs, and down the refrigerated aisle to the front of the row for cheese, and we're back at the checkouts with a full basket. Usually we buy 15 items, in about 30 minutes, and we shop once or twice a week.
On more frugal days, as we make the shopping list we have the ads in front of us, and the "What do you want for diner this week?" question becomes "Hey, does any of this look like something you'd want for dinner this week or next?"
I am a mom who works full-time. Believe me, if I didn't belong to a gym, I wouldn't work out at all. There's simply no way I can work out because every moment I'm not working I'm with my son, who demands my complete attention. Even just trying to do a few sets of crunches ends up with him jumping on my chest, laughing, and demanding hugs and Teletubbies. This is sweet, but not conducive to fitness. My gym has childcare, so I can drop him off and go for a quick run. It also gives me the chance to designate certain blocks of time as unassailable "gym time," which more or less obligate me to go and work out at those times.
Excellent article as usual. Having a will is an absolute necessity for anyone with assets or children, and a living will is necessary for everybody else. So how's life going for you up in the great beyond?
Since we got on the topic of CEO compensation... unions are using their equity in corporations to exert pressure on CEOs. The government is saying this is illegal. Is it right or wrong?
Stores know that we start figuring out what aisles we don't need. They will somewhat regularly reorganize, so that suddenly canned fruits aren't with canned vegetables, and diapers aren't with shampoo. We have to go down different aisles than before to find what we always get, and have to go past whole new things that might catch our eye...
I tend to plan my meals around what I found on sale, combined with our staples. I have a reminder of what might be perishable in the fridge, so I can focus on doing something creative with it before it becomes mush. Which reminds me; I'd better chop up and freeze those two red peppers before they go. The less we throw out, the less we have to go back to the store to buy again!
Southwest airfares do not appear on the search engines. If you know well in advance about your travel date or if you are flexible, you should check southwest.com before you buy your tickets through any search engine website. Sometimes jetblue.com also has good deals.
I worked for a reputable international airlines for years - so I thought I put in my two cents.
The key in finding the cheapest fare for a domestic destination (this includes Canada, most of the time) - is how far ahead you purchased your ticket. This would definitely need a good, firm plan. For example, if you know for sure you're going from San Francisco to Chicago this summer, feel free to purchase your ticket now. Opt for the most restricted ticket, which will give you the cheapest fare - yet, also be prepared for 'no changes allowed' restrictions, i.e. no changes to your travel plan or you'll loose your money. Going to the airline's website will give you the best price, most of the time.
Whereas for overseas travels, when and what airline will determine how much your fare is going to cost you. If you don't have to be in a certain place at a certain period of time, then by all means, avoid high/peak season (i.e. holidays, summer/winter holiday). Travel during off peak season would save you hundreds of $. Choosing which airlines to fly with is also another key. You get what you pay - that's for sure. If you don't really care about inflight service, what kind of food they serve on the flight, then save some $ by flying a '2nd class' international airlines. Make sure you call different travel agents and ask for their quotes, as well as go to the airline's website and look for their off-peak season deals.
Great article! I just wished that I could find a secret to finding really cheap airfare. I love traveling, but the cost of getting there is often the thing that holds me back. Unfortunately, there doesn't seem to be a way to get great deals all the time.
I really like this idea. If I were to do this exercise, I suspect that "eating out" would be the #1 overspent category. Yeah, it's nice not to cook, but is it really $50 nice? Doubt it...
I also really like the idea of getting more pleasure from your tax dollars by getting involved in local politics. Now I need a post telling me HOW to get involved in local politics!
Thanks for the info. My wife and I set a goal this year to get our will done. It is well over due. I am still deciding if we need to go to a lawyer or are those sites like legalzoom good enough for a simple will? Does anyone have any experience with these sites?
I used to work for usairways.com and I know for a fact that the prices on the airlines websites are cheaper 99% of the time. When you are comparing prices between expedia.com and usairways.com, the prices are probably the same, but when you finally purchase your ticket, there is usually a variance of about $10 in the "additional fees" section that you pay. This is used as an incentive by the airlines to book through their online system as it is the cheapest way for them to sell tickets.
This is also true for calling the airline directly. If you call US Airways directly and purchase a ticket, it will cost you $10 more than if you buy it on usairways.com.
My excel spreadsheet is organized by type (bread, boxed goods etc) with a couple extra spaces at the end of each for add-ons. I only use one column for check marks because I just cross the item off the list when I've picked it up. (I check the item if I need it, not when I've bought it). There's also a small column for prices beside the item with the last price I paid and space for the current price. I keep a bigger list in another spread sheet. If I had a web page, I'd post it, sorry.
I've used this technique a number of times with hotels too. One time I was in upstate New York and needed a place to crash, so I used Hotels.com and found what I thought was a great price. Then the concierge told me when I checked in she could have given me an additional $15 off if I had called directly. I have ever since and it's amazing the deals the hotels have that they don't publish.
This is the best explanation I've ever seen on this topic! Perhaps it will make people rethink about *why* they are looking into frugality or whatever change they seek.
to check Kayak, and it doesn't hurt to ask around in your circle of friends if anyone works for an airline. Airline employees get a certain # of very lowcost tickets a year that they can give out to family and friends,. really, anyone they want. I have two relatives who work for an airline and both regularly do this, giving away tickets to folks they don't even know...but they were a friend of a friend and that was good enough for them. Along those same lines...I am still looking for a friend of a friend who works for Disney..they can get you in the Disney theme parks....free.
I had never even thought to ask if my grocery store has an aisle directory — guess I'll have to do that on my next trip.
I'm going to have to try out some of these other ideas. I really Wendy's way of turning her shopping list into a game and seeing just how much she can save. Another tip I'll be trying out!
Pleasure and satisfaction come from many sources. I can't think of anything that would make me happier than getting well again if I were sick. Since humans can reason, they can connect the money spent to their hopes for the future.
As another example, giving their kids the best possible start in life--paying for the best schools, supporting them though college--is also a great source of pleasure for many parents. Even though the parents don't go to classes themselves, that doesn't mean that they don't get satisfaction out of it.
If I were to do what you suggest, at the top of my list would be various medical expenses. Spending that money doesn't give me pleasure, but I recognize the need for it because I want to get well. How does this fit in?
Wow, Thursday. Thanks for posting this. Gayle, I don't know about the combo tech option you mentioned, but I'm interested in any new knowledge as well.
I'm thinking the preprinting of certain items on the list is definitely part of the solution. Although, there might need to be two additional mini columns for check marks? Two because you need to know if a perma-item is actually needed that trip and because you need to check it off once purchased if it is. Any thoughts on how to keep things separate for the integration of online grocery purchases with various "around town" shopping stops? Of course, nothing's around town for me, so every shopping trip is a logistal challenge.
We don't do this formally for everything, but it is a gut check when we spend 'recreation' money.
Will I get as much enjoyment from this dress as I would from a new video game (we're tech nerds)? From 3 movies? From some new crafting supplies? From a dinner out?
It works on big purchases too - would I be happier with the fancy car, or with the cheaper one and a really big t.v? Even if you don't plan on buying the new t.v, fixing how much a given sum of money is worth in 'happy points' makes it easier to compare the value of differently priced options.
Sure the system isn't as well calibrated as it could be, but it's a lot of results for your effort.
Also, I'm not sure the method in the article works in an absolute sense. Say the thing that brings you the most pleasure ever is chocolates. Spending thousands of dollars to get truckloads of chocolate probably isn't going to make you any happier than spending twenty dollars. Enjoyment has a saturation point, after which you have to find a less efficient means of making yourself happier.
a really nice commentary on/extension of Dacyczyn's "WOW factor."
But as I understand the issue, the pension fund must be managed for the benefit of the retirees and the people who will eventually retire. If the trustees can be convinced that some policy (for example, better health benefits) will improve the long-term success of the company, then it would be entirely legal and proper for the pension fund to pressure the CEOs to institute that policy. The Wall Street Journal article seems to start by supposing that better health benefits would be a pure expense. If that's true, then the trustees would be violating their fiduciary duty by supporting it. (For example, if they supported a policy for the company to turn its profits into $100 bills and then burn them up.)
Sorry you don't feel like we were communicating before. I'm willing to take another stab at it if you are.
Basically, I agree with the philosphy (common here on Wise Bread), that people should live within their means and take responsiblity for their own success. That doesn't mean that I don't have compassion for people who aren't doing so well, though--especially when their situation is caused largely by forces outside their control. For every person who's in financial trouble because they waste their money buying crap they don't need there are at least as many people who are in trouble through simple bad luck such as an illness or accident. There are lots of people who made what seemed like prudent choices at the time that didn't turn out so well. And then there are a few people who were badly ill-used, some by actual criminals, others by people acting legally but behaving unethically. Dealing with those situations on a case-by-case basis is so expensive, that it's often cheaper (and sometimes fairer) to just soften the edges a little. Plus, we're all better off when money is spent on education, sanitation, public health, etc.
I'm still low-tech. We have a whiteboard on the fridge, where we write things in as we use them. On shopping night (usually the day before we run out of milk, heh!) I sit down with the Need list, my boyfriend, a piece of paper and a pen. "What do you want for diner this week?" So, we plan a couple of meals, they go on the whiteboard, then I copy things from whiteboard to paper in roughly store order. I go counterclockwise through the store: produce, a foray in to the main aisles for snacks/rice/Coke/spices, then to the back row for meat, fish, milk, eggs, and down the refrigerated aisle to the front of the row for cheese, and we're back at the checkouts with a full basket. Usually we buy 15 items, in about 30 minutes, and we shop once or twice a week.
On more frugal days, as we make the shopping list we have the ads in front of us, and the "What do you want for diner this week?" question becomes "Hey, does any of this look like something you'd want for dinner this week or next?"
I am a mom who works full-time. Believe me, if I didn't belong to a gym, I wouldn't work out at all. There's simply no way I can work out because every moment I'm not working I'm with my son, who demands my complete attention. Even just trying to do a few sets of crunches ends up with him jumping on my chest, laughing, and demanding hugs and Teletubbies. This is sweet, but not conducive to fitness. My gym has childcare, so I can drop him off and go for a quick run. It also gives me the chance to designate certain blocks of time as unassailable "gym time," which more or less obligate me to go and work out at those times.
I agree you should get as much for your tax dollars as you can and enjoy it.
Excellent article as usual. Having a will is an absolute necessity for anyone with assets or children, and a living will is necessary for everybody else. So how's life going for you up in the great beyond?
Mark P. Cussen, CFP, CMFC
I feel like I'm not really communicating. :-(
Since we got on the topic of CEO compensation... unions are using their equity in corporations to exert pressure on CEOs. The government is saying this is illegal. Is it right or wrong?
http://online.wsj.com/article/SB120105026345108353.html
Stores know that we start figuring out what aisles we don't need. They will somewhat regularly reorganize, so that suddenly canned fruits aren't with canned vegetables, and diapers aren't with shampoo. We have to go down different aisles than before to find what we always get, and have to go past whole new things that might catch our eye...
I tend to plan my meals around what I found on sale, combined with our staples. I have a reminder of what might be perishable in the fridge, so I can focus on doing something creative with it before it becomes mush. Which reminds me; I'd better chop up and freeze those two red peppers before they go. The less we throw out, the less we have to go back to the store to buy again!
Southwest airfares do not appear on the search engines. If you know well in advance about your travel date or if you are flexible, you should check southwest.com before you buy your tickets through any search engine website. Sometimes jetblue.com also has good deals.
I worked for a reputable international airlines for years - so I thought I put in my two cents.
The key in finding the cheapest fare for a domestic destination (this includes Canada, most of the time) - is how far ahead you purchased your ticket. This would definitely need a good, firm plan. For example, if you know for sure you're going from San Francisco to Chicago this summer, feel free to purchase your ticket now. Opt for the most restricted ticket, which will give you the cheapest fare - yet, also be prepared for 'no changes allowed' restrictions, i.e. no changes to your travel plan or you'll loose your money. Going to the airline's website will give you the best price, most of the time.
Whereas for overseas travels, when and what airline will determine how much your fare is going to cost you. If you don't have to be in a certain place at a certain period of time, then by all means, avoid high/peak season (i.e. holidays, summer/winter holiday). Travel during off peak season would save you hundreds of $. Choosing which airlines to fly with is also another key. You get what you pay - that's for sure. If you don't really care about inflight service, what kind of food they serve on the flight, then save some $ by flying a '2nd class' international airlines. Make sure you call different travel agents and ask for their quotes, as well as go to the airline's website and look for their off-peak season deals.
Great article! I just wished that I could find a secret to finding really cheap airfare. I love traveling, but the cost of getting there is often the thing that holds me back. Unfortunately, there doesn't seem to be a way to get great deals all the time.
I really like this idea. If I were to do this exercise, I suspect that "eating out" would be the #1 overspent category. Yeah, it's nice not to cook, but is it really $50 nice? Doubt it...
I also really like the idea of getting more pleasure from your tax dollars by getting involved in local politics. Now I need a post telling me HOW to get involved in local politics!
~Q
I'm thinking I can picture parts of it, Jessica. Thanks.
Thanks for the info. My wife and I set a goal this year to get our will done. It is well over due. I am still deciding if we need to go to a lawyer or are those sites like legalzoom good enough for a simple will? Does anyone have any experience with these sites?
I disagree with #1.
I used to work for usairways.com and I know for a fact that the prices on the airlines websites are cheaper 99% of the time. When you are comparing prices between expedia.com and usairways.com, the prices are probably the same, but when you finally purchase your ticket, there is usually a variance of about $10 in the "additional fees" section that you pay. This is used as an incentive by the airlines to book through their online system as it is the cheapest way for them to sell tickets.
This is also true for calling the airline directly. If you call US Airways directly and purchase a ticket, it will cost you $10 more than if you buy it on usairways.com.
My excel spreadsheet is organized by type (bread, boxed goods etc) with a couple extra spaces at the end of each for add-ons. I only use one column for check marks because I just cross the item off the list when I've picked it up. (I check the item if I need it, not when I've bought it). There's also a small column for prices beside the item with the last price I paid and space for the current price. I keep a bigger list in another spread sheet. If I had a web page, I'd post it, sorry.
I've used this technique a number of times with hotels too. One time I was in upstate New York and needed a place to crash, so I used Hotels.com and found what I thought was a great price. Then the concierge told me when I checked in she could have given me an additional $15 off if I had called directly. I have ever since and it's amazing the deals the hotels have that they don't publish.
This is the best explanation I've ever seen on this topic! Perhaps it will make people rethink about *why* they are looking into frugality or whatever change they seek.
Thanks for the article, Im about to travel and needed information like this!
to check Kayak, and it doesn't hurt to ask around in your circle of friends if anyone works for an airline. Airline employees get a certain # of very lowcost tickets a year that they can give out to family and friends,. really, anyone they want. I have two relatives who work for an airline and both regularly do this, giving away tickets to folks they don't even know...but they were a friend of a friend and that was good enough for them. Along those same lines...I am still looking for a friend of a friend who works for Disney..they can get you in the Disney theme parks....free.
I had never even thought to ask if my grocery store has an aisle directory — guess I'll have to do that on my next trip.
I'm going to have to try out some of these other ideas. I really Wendy's way of turning her shopping list into a game and seeing just how much she can save. Another tip I'll be trying out!
Pleasure and satisfaction come from many sources. I can't think of anything that would make me happier than getting well again if I were sick. Since humans can reason, they can connect the money spent to their hopes for the future.
As another example, giving their kids the best possible start in life--paying for the best schools, supporting them though college--is also a great source of pleasure for many parents. Even though the parents don't go to classes themselves, that doesn't mean that they don't get satisfaction out of it.
If I were to do what you suggest, at the top of my list would be various medical expenses. Spending that money doesn't give me pleasure, but I recognize the need for it because I want to get well. How does this fit in?
Wow, Thursday. Thanks for posting this. Gayle, I don't know about the combo tech option you mentioned, but I'm interested in any new knowledge as well.
I'm thinking the preprinting of certain items on the list is definitely part of the solution. Although, there might need to be two additional mini columns for check marks? Two because you need to know if a perma-item is actually needed that trip and because you need to check it off once purchased if it is. Any thoughts on how to keep things separate for the integration of online grocery purchases with various "around town" shopping stops? Of course, nothing's around town for me, so every shopping trip is a logistal challenge.