Pay Attention to the Math

I know, I know, math is a lot of people's least favorite subject, but as we know in personal finance, it can be pretty helpful. Unlike what we did in school, the skills required are pretty basic, and it'll give you the satisfaction of knowing that you're not getting ripped off. It's important to be able to make quick calculations on the spot for price comparison. Moreover, it can be helpful to know whether something is as discounted as a retailer claims it to be.

A few years back, I noticed a math error in Saks Fifth Avenue's advertisements (Off 5th to be exact). The company added the original discounted percentage to the additional discount percentage for the total percentage of discount. For example, an ad claimed that you'll receive 20% off of something and get an additional 10% off for a total discount of 30% off. That's simply not true! It's a total discount of 28%. I know it's not a significant difference (although if you're purchasing something from Saks it might be...). Those advertisements disappeared for a while, but they came back recently. So keep your eyes open for these false claims.

Being the Odd Man Out at Work

I wrote about the peer pressure I felt when I decided to not go on a partially subsidized company "bonding" trip in my A Different Understanding of Budget post a few days ago. It made me a little uncomfortable to have to turn down the opportunity. At the same time, I also wondered if it was a good career decision. Since I had to pay for part of the cost (ski equipment rental, lift tickets, gas, etc.), I felt justified not attending. If cost was not factored into the decision though, I believe not going would have been somewhat of a negative career move.

Why? First of all, it was the inaugural group bonding trip (partially) paid for by the company, and it took some lobbying for it to finally happen, too. Also, from previous posts, you may know that I work for a small startup of less than 15, which made my absence that much more noticeable. During my decision making process, I can't help but wonder if not going would make me seem like I wasn't being a team player.

When Trivia Isn't So Trivial

Okay, today's blog post is devoted to me gloating. That's right! I'm super proud of myself because I saved someone hundreds of dollars by knowing somewhat of a random fact about state vehicle laws in California. I'm no lawyer, but I do keep an eye out for economic changes that might make my wallet fatter one day. Well, I guess it paid off. I didn't make myself richer, but it sure feels great helping someone out!

Recently, my co-worker came into the office late because he had to take his old car to the shop after a failed smog check. He had recently bought a brand new car and was trying to sell the old, barely functioning one to someone for a little under 1000 bucks. That was before he failed the smog check. Now, he has to either fix it or sell it at an even greater discount. A repair would probably cost him between $400-$1000, depending on the mechanic and cost of parts.

A Different Understanding of Budgeting

In the beginning of this year, the CEO of my company announced that every quarter, our small startup of less than 15 people will set aside a budget to partially subsidize an activity for all of us to "bond." In February, a ski trip was planned for this very reason. It took me a long time to decide whether to attend or not, but I ended up not going. The main reason was my discretionary budget. Although the company subsidizes part of the cost of food and stay, I'd still have to pay $25. On top of that, I'd have to pay for lift tickets, equipment rental, and gas. It hardly seemed to be worth it since I would have for sure exceeded the fund.

I was only 1 of 4 people who didn't go on this trip, and was pestered by questions of why I was not attending. Talk about peer pressure! Well, for the most part when I told my co-workers that I couldn't work it into my budget because of the additional cost of lift tickets etc., they readily accepted the answer. But one of the people I gave that response to proceeded to ask me: "Isn't the point of a budget to spend it?" Hmmmmm...I guess I never really thought of it that way, but I must disagree.

Age Discrimination in Retail and Services

This is something frustrating I encounter very often. I look young for my age (mid-20s), so people who don't know me often assume that I'm a college student. That's fine and all, if it just means that I get carded more often. Turns out, somewhat logically, people also assume that because I look young, I also have less buying power. Because of this, I find myself receiving less help in retail stores or get talked down to when I do receive services.

The examples that stand out the most for me are at financial institutions. I often get representatives who talk to me condescendingly or assume that I don't have much to save/invest. I had even been skipped over in line at Bank of America so the rep can help the old couple who came in after me while I sat there and waited for another 20 minutes.

What Luxuries Would You Give Up?

MSNBC's Life Inc. blog recently posted the result of a survey showing a list of "luxury" items or services that are deemed untouchable by Americans. So which luxury item/service can most of us not do without? The internet, of course! 81% of people surveyed indicated that internet services are untouchable followed by 61% for basic cable and 42% for haircuts and coloring. I must agree with the internet category. If it weren't for the internet services I receive at home, it'd be much harder for me to maintain this blog! But I'd consider a lower speed option in order to save money.

I looked at the survey data a bit closer to compare the answers for people between 18 and 34 years of age (Gen Y and some Gen X) to the rest of the age groups. When asked whether they've made any cuts in the spending categories listed, the least amount of 18 to 34-year-olds answered yes. Furthermore, the highest percentage of people in this age group indicated "untouchable" for 26 out of the 36 expenditures listed.

March Budget Sum Up

Another month, another $100 discretionary fund. Well, I actually started this month in the red. Why? If you remember my dilemma in February, I ended up deciding to sign up for another month of boot camp (2, actually. I'm continuing in April). It set me back $127. I was almost inclined not to include it as discretionary spending seeing that the line between need and want here is blurry for me. To me, whipping myself into shape and working through an 18 month plateau is a need, but in the spirit of full disclosure, I ended up adding the cost anyways. It’ll also motivate me to find savings elsewhere.

The $127 turned out to be a disappointing investment. Not because the class isn't good. If it wasn't I wouldn't have signed up. The reason it was a disappointment was because I got sick for 2 weeks, so I wasn't able to attend half of the classes in March. I'm not beating myself up over it, though. Let's just count it was an "unforeseen circumstance." Life is full of surprises. Now I'll just have to make sure to take care of my body, and hopefully, this episode doesn't repeat.

The good thing about being sick though, was that I didn't go out much which resulted in the lack of chances to spend money. Excluding the boot camp, I spent a total of $84.47.

Here's a breakdown: