Free Money Finance

Predictions for 2009

Kiplinger has 12 predictions for 2009 as follows:

1. 2009 Will Be a Great Time to Buy or Refinance a Home.
2. It’ll Be a Good Time to Buy Equities.
3. The Debt Binge Is Over.
4. There’ll Be Less Sticker Shock for Consumers of All Stripes.
5. Costs for Some Medical Procedures Will Drop.
6. More Tax Cuts Are Coming.
7. It’s a Good Time to Travel.
8. There’s Plenty to Make Retirees Smile.
9. Relief Is Coming for the College-Bound and Their Parents.
10. The Green Revolution Will Continue.
11. There’s Relief at the Pump -- And on the Lot.
12. The Stars Are Aligning for Health Care Reform.

Here are my thoughts on each of these:

1. We were close to buying a home in 2008, so maybe 2009 is our year. Prices have kept dropping since our deal feel through, so maybe it's a good thing we're where we are now.

2. It's always a good time to buy equities -- if you have a long enough time horizon. I'm trying to put in as much as I can while the market is low.

3. Ha! Finally people are seeing debt for what it is -- a real drag on your finances.

4. I think we could all use a bit of price stabilization.

5. Great, now the prices of braces go down!

6. Obama the tax-cutting machine? Who knew?

7. Have to talk to my wife about whether or not we're going to take a "big trip" this year or not. We hit Disney two years ago this coming fall and laid low this past year, so we're due.

8. Not an issue for me -- yet.

9. The cost of college is bound to be an issue for decades to come. We've made our Coverdell and 529 contributions for the year already. Have you?

10. I hope Americans don't let the falling price of gas lull us into our old ways. I'm hopeful we'll get our act together and get to working on alternative (and better for the environment) sources of fuel.

11. Yeah for low gas prices! :-)

12. Obviously something needs to be done about the cost of health care. I just hope the geniuses in DC don't make it worse than it already is. If anyone can make a bad situation worse, it's the government. I'm not optimistic.

How Many Pancakes Does It Take to Breakeven?

Check this out:

As the 24/7 news cycle continues to broadcast stories of economic despair, IHOP offers consumers a reprieve from all the doom and gloom with the announcement of its 2009 Hungry Consumer Relief Plan. IHOP has invited guests to enjoy their fill of All You Can Eat Pancakes, with minimal economic impact, any time of day now through February 22.

Available for a limited time at participating locations, IHOP's All You Can Eat Pancakes offer starts at $4.99 and is available a la carte or as part of a combo, which includes two, fluffy buttermilk pancakes, eggs any style, crispy hash browns, and a choice of pork sausage links, crisp bacon or ham.

So what's the breakeven at $4.99? If it's six or fewer pancakes, I'm there. Nine is probably my upper limit (though I could stretch to 12 if I got something "cool" -- like my name on the wall.) ;-)

Hyundai Markets to the Economy

I was watching TV the other night when this commercial came on for Hyundai. They have a new offer that's basically "if you lose your income in the next year, you can give us the car back." Wow. Talk about marketing to what many people are dealing with today. Anyway, I'm sure there is TONS of small print, but I went online this morning and found out that the offer is legit. A summary:

In an attempt to combat economic uncertainty among automobile buyers, Hyundai and local affiliate AutoFair Hyundai are offering a first-of-its-kind one-year guarantee return program.

Starting today, the dealer begins allowing a new-car buyer to return the vehicle in the event of "life-altering circumstances" such as layoffs, job transfers and accidental deaths up to a year after the purchase.

Says AutoFair Hyundai Chief Operating Officer Andy Crews, "It's no secret that with economic uncertainty, customers have been hesitant on car purchases. With the new Hyundai guarantee, our customers no longer have to worry about car payments when they encounter unexpected life changes, and our cars are a natural choice."

This article is about one dealership, but the program is company wide. Here are the details from Hyundai's site.

Rules of Thumb on When to Replace Old Appliances

In the January issue of Money magazine, they offer this rule of thumb on when to replace an appliance that's having problems:

Consider junking the item if it's beyond three-quarters of its life expectancy and repairs would cost you more than a third of what you'd pay to buy a new appliance.

For another take on this issue, here's what Consumer Reports says:

If your appliance is eight or more years old, usually it makes sense to buy a new one. If you have a favorite high-end, older appliance, you may want to repair it. Consider replacing a newer model if it has been repair-prone. But skip any repair that costs more than half the price of a new product.

We make our decisions on a case-by-case basis, though I must say our appliances seem to last way beyond their "normal" lifespan. We generally get at least the recommended life out of them, but usually get far more (an extra few years or so) that what even Consumer Reports would say is their estimated life. So, by that point, if the repair is going to cost anything meaningful ($100 or more), we usually decide to take that money and put it into a new item rather than have to old one repaired.

How do you decide when an old appliance needs to be replaced?

What to Do if You Received Gift Cards for the Holidays

Here's a good piece of advice from US News on what to do if you received gift cards for the holidays. In particular, this advice made a lot of sense to me:

Spend it quickly. With more retailers expected to go out of business in 2009, gift cards could quickly be rendered worthless. So if you receive one, make sure to spend it as soon as possible. (Shopping in late December and early January will also get you post-Christmas discounts.)

We received several gift cards this year and this is EXACTLY what we plan to do with them -- spend them quickly in conjunction with after Christmas sales. In fact, that's what we'll probably be doing later on today.

BTW, we also gave gift cards, but only gave out Meijer cards, so the recipients can be pretty sure that their cards will be useable for a long, long time.

The Economy Hits Christmas Celebrations

I found this amusing. The details:

It's another sign of recessionary times: Camels are being booted for donkeys and sheep in the Nativity-animals-for-hire business.

Camels command $500 to $700 per day this time of year, including handler and liability insurance - necessary because the hump-back animals can be ornery.

Sheep are cheap: You can book two or three, plus two or three goats, for $250 a night, including handler; it's $25 if you pick them up at Jo-Don Farms yourself and skip the handler. Donkeys are $250 with handler; $75 without.

Wonder what they charge for a baby Jesus stand-in. :-)

To Regift or Not Regift?

I just realized that we haven't had the annual regifting debate -- if people should do it, how they should do it, etc. For those of you interested, here are last year's thoughts.

Anything new to add?

Told Ya

I told you so. Now it seems that restaurants are all over the all-you-can-eat idea -- trying to deliver value to ever-demanding consumers in a tough economy.

I was with a friend the other day when he had a Logan's all-you-can eat deal. It was something like $9.99 and he ate and ate and ate. Good food value -- not so good for his weight. ;-)

Yet ANOTHER Extreme Makeover House in Trouble

We've already detailed several Extreme Makeover Home Edition homes in trouble, now here's another one. Part of the problem is out of their control (their son's medical problems/bills), but they didn't do anything to help themselves out:

The Vardons were also hit by the subprime housing crisis. Their mortgage rate jumped to 11 percent after it adjusted.

In addition, it looks like they just couldn't afford the higher cost-of-living that comes along with a bigger home:

The Vardons' property taxes are also part of their financial problems. They jumped almost $1,000 after the makeover.

A layoff could be part of the problem too. The story isn't clear -- one section says they are fearing a layoff and another says the guy was laid off.

Anyway, we have another one of these homeowners in trouble. It's certainly a shame.

Update: It appears their mortgage costs almost doubled as well.

Eight Reasons to Skip Black Friday "Sales"

Yahoo lists eight reasons to skip Black Friday "sales" as follows:

• You don't need any of it
• You can use the time better
• You won't get what you went for
• The Black Friday experts already have won the game
• You'll buy things you never intended to buy
• You'll forget to calculate the true cost
• That price might not be that great
• You can do it from home

You can read the post for more details if you like, but I thought posting this today was an apt way to spend the day after Thanksgiving. Those of us who aren't shopping today may actually be doing the "right" thing. ;-)

FYI -- this is probably my last post of the day. I'm doing my annual "clean your office" day today and I have a LOT to do! ;-)

How Much Will You Spend on Holiday Gifts This Season?

I found this fact in the December issue of Money magazine:

People will spend $832 on holiday gifts this year, just 1.9% more than last year says the National Retail Federation.

We used to spend almost the same amount every year -- somewhere between $700 and $800. But then we got together with our family and all agreed to limit the consumerism on each other and modify it a bit for the kids (they still get way too much stuff.) In addition, we went online with our annual Christmas card/letter -- I created a website with picture updates and we email everyone a note/link to the site. So now we spend about $400 each year on Christmas gifts and another $100 or so on tips for our mailman, babysitter, etc.

How about you? How much are you planning to spend this holiday season?

Do You Get Up Early to Shop on Black Friday?

In one week we'll officially kick off the Christmas selling season as a ba-zillion American consumers pack stores the day after Thanksgiving. My boss and his family have an annual tradition where they get up early and hit all of the 4 a.m., 5 a.m., etc. sales with the masses. They're done by mid-morning or so, then have breakfast out and go home.

Personally, I don't want to be anywhere near a store on November 28. Wild horses couldn't drag me to one. In fact, I volunteer to work that day because 1.) no one else wants to, 2.) there's no one in the office and I can get a ton of work done, 3.) I don't have to travel and don't have family around on that day.

What about you? Do you get up early to shop on Black Friday? Why or why not?

A Sign that Times Are Really Getting Tough

On this Sunday's paper I saw a sign that things are REALLY getting tough financially out there. On the top of the front page was a $5 off tear off coupon good at Aldi! When was the last time you saw a coupon for a discount store like that? I think we'll see businesses of all sorts get more aggressive on pricing and promotions, so this is likely just the beginning (though a shocking one for me.)

No Food Theater Closing

Remember the theater that wouldn't let me take food into it? Well, one of the flagship theaters in that local chain is closing? Think the two are related? Probably not, but conspiracy theory lovers will see at least a small connection. ;-)

Unbelievable

Check this out:

Woman out $400K to 'Nigerian scam' con artists

I read it with an open mouth -- I was stunned at how gullible/greedy otherwise "smart" people can be.

via the Consumerist

Do You Tip for Takeout?

Smart Spending has an interesting question:

Do you tip for takeout food?

My response: you're joking, right?

After all, isn't a tip for SERVICE? What service are they giving me -- allowing me to buy food from them? If anything, why don't I get a discount for going up to the counter and ordering for myself? Oh wait, I do get a discount for that -- it's called "I don't have to tip."

Ok, the tip police can now chime in about how cheap I am...

What about you? Do you tip for takeout food?

Thoughts on Digital Picture Frames

Consumer Reports recently had a piece on digital photo frames, those little displays that sit on a desk or table or hang on a wall and electronically scroll through various pictures you have loaded on it.

As far as buying one goes, here's what they suggest:

Resist the temptation to go small and cheap. Such models’ display resolution is too low to do justice to the images of today’s high-megapixel cameras. And think twice before paying extra for bells and whistles you may not need, such as a built-in phone or printer.

And for those interested, they list the following frames as good buys (in order): HP df800, Philips 8FF3FPW/27, and Westinghouse DPF-0804.

I've seen these recently and have become interested in them. Every year I do a collage photo shoot (in a frame) that shows 20-30 of our family's "best" pictures from the previous year. We then hang the collage in our hallway. We have seven years done now, so there's really quite a history we've collected.

I've thought about buying a digital photo frame and replacing the current collage each year, but the prices are still fairly high ($120 to $150 for the models listed above.) But I'm still interested in them and thought I'd ask any of you with experience what you like and don't like about these. Anyone out there use them?

Free Financial Advice

Got this emailed to me the other day:

Kiplinger's Personal Finance magazine and the American Association for Long-Term Care Insurance (AALTCI) are partnering for the first time to offer two Long-Term Care Phone-In Days. On Thursday, November 13th and Friday, November 21st from 9 a.m. to 6 p.m. Eastern Time, AALTCI members will be standing by, ready to field your inquiries about long-term care insurance and long-term care planning. You don’t pay a cent—not even for the call. Just dial toll-free 877-KIPTIP1 (877-547-8471).

For free advice available online now, visit Kiplinger’s Long-Term Care Center.

Enjoy!

Holiday Tipping Overview

Consumer Reports recently did a short piece on holiday tipping in hard times. Two parts of the article stood out to me. First, they offered these suggestions for those who want to tip this season and yet still need to control their costs:

• Give cash or a check to people you think need it most.

• For others, consider giving soaps, a candle, or baked goods. Unless you know the person well, try something unlikely to offend or cause allergic reactions.

• If your budget is very tight, handwrite a note of thanks. "Something is always nicer than nothing," Post says.

Second, they also list the average gift for various service providers as follows:

• Cleaning person - $50
• Child's teacher - $20
• Hairdresser - $20
• Child-care provider - $38
• Manicurist - $20
• Newspaper carrier - $20
• Barber - $15
• Bldg. superintendent - $25
• Pet-care provider - $25
• Mail carrier - $20
• Lawn-care crew - $25
• School-bus driver - $15
• Fitness instructor - $25
• Sanitation worker - $20

Holy cow! No wonder this is such a big issue. If you have all these people in your life, then tipping during the holidays is a fairly big expense. My suggestion: you could probably save a boatload of money each year by cutting some of these areas back (not the tip for this year, but cutting the service altogether) -- but that's for a different blog post.

For us, we don't have a cleaning person, manicurist, barber (cut my own hair), building superintendent, pet care provider, etc. In fact, of the fourteen groups listed above, we only have five of them. We tip them all about what's listed above except for our top babysitter -- she gets a bit more (got to keep good sitters happy.) ;-)

This Just In

I get some "interesting" emails from PR firms touting all sorts of "great" websites, programs, etc. Some are actually good and I share those, but most of them I ignore. This one I received this morning is in between being good and a throwaway as I'd classify it as "humorous". Here it is:

For any posts you may be working about money saving tips during these uncertain economic times,  I wanted to offer a tip about a service that helps people save money on books- BookSwim.com.

BookSwim.com is the first and only national online service that rents paperback and hardcover books (Netflix-style).  The company’s online book rental library service starts at $9.95 per month, where users can “check out” books ranging from new releases, bestsellers, or classics the way one would select DVDs from Netflix or a video store. As with Netflix, shipping is free both ways and customers can keep the books for as long as they want with no late fees. Customers also have the option to any buy books they rent.

BookSwim can be a money-saving option because many people don’t hold on to books once they’ve read them and with hard covers costing as much as $25 (sometimes more), the prospect of buying lots of new books is not economical.  This year, BookSwim has saved its members from buying $1.4 million dollars worth of books this year through its book rental services.  Also, for those who need to use a car to get to the bookstore or library, with BookSwim there no need to spend money on gas to do this.

Ok.

Am I missing something or can't you get this service FREE from your local library? My library system allows me to check out anything system wide and sends it to my local library for me to pick up. Sure, I'd save gas on the seven block trip to and from the library and wouldn't have the hassle of going to the library in the first place, but that's not a big deal or much cost. Plus, I can check out as many items (books, CDs, DVDs, audio books, etc.) as I want from the library.

Is there some benefit here that I'm missing?

Big Brother Will Be Watching You

US News tell us that the "battle" between shoppers and stores will be heating up in the near future:

Researcher and consultant Amudhanvel "Vel" Dhinagaravel says that in the not-so-distant future, we'll all have some kind of card in our wallets that lets stores know when we walk in. The stores will then customize their advertising to target whoever is walking by. Imagine, for example, that you often buy high-end orange juice. When you walk into a store, the displays post advertisements for expensive orange juice listed at full price. But when someone else—who tends to go for discount orange juice—walks by, the advertisements switch to emphasize sales in the orange juice section.

I guess you can look at this as either being good or bad. It's bad in the "creepy" sense that someone is watching every move you make. But it's good (at least in my opinion) if it knows you're a bargain shopper and points out those bargains along the way. Who wouldn't want to know there's a sale on this or that (if you like the product)? And of course you still have the ultimate decision -- to buy or not. They can't make us all buy something we don't want.

How about you? Do you see this as a good or bad "advance" in technology?

Money Club?

Anyone in a money club (from the article says, not many people are)? What do you do? Is it worthwhile?

I've heard of investment clubs for quite some time -- but never a "money club." Interested to see what you all think.

And maybe no one is in one but would like to be. Interested in hearing about that as well.

Who's to Blame?

This is one of those posts that will accomplish absolutely nothing (or very little at best), but is fun to banter around back and forth, so I'm going with it. Here's my question:

Who's to blame for the current problems with the American economy?

I know, there probably is not a single person/organization responsible, but maybe there's one or two that are MOSTLY responsible. Anyway, here are the leading candidates for blame as I see them:

• The American Consumer -- These people borrowed money they couldn't pay back on very high-value assets (homes). If they had been reasonable in thinking about what they could truly afford, much of the housing problems (which started the downward plunge) would not exist today.

• Crooked Lenders -- Then again, maybe consumers were duped by unethical lenders who lied and cheated millions into bad loans for too much money.

• Wall Street/Investors -- Ever greedy for more money, they fueled the demand for investments back by collateral (homes) that had good rates of return.

• President Bush/The Bush Administration -- Lack of regulation and oversight could have been the main reason this happened.

• Congress -- Hey, these guys are supposed to have some influence on/responsibility for what goes on in government and the economy, aren't they?

• Alan Greenspan -- He's the guy that made money so cheap for all those years. Then again, if he hadn't, we'd all have been blaming him for keeping interest rates too high.

• Ben Bernanke -- Kept up Greenspan's policies.

• Foreign Countries/Companies -- Their constant demand for US investments made the Wall Streeters do some crazy things.

I'm sure there's a whole host of other candidates, but that will at least give us a start. Let everyone know whet you think in the comments -- should be fun! ;-)

P.S. Just found this piece that asks the same question.

Ever Notice that Prices Rarely Go Down for Food?

Here's an interesting piece. I think we all know by "gut feel" that food prices rarely go back down once they go up -- even if the reason they went up in the first place (like high gas prices) has gone away partially. Some insights:

[Food] companies hesitate to hike prices because it might push consumers to into the arms of a competitor, or to cheaper alternatives.

But once a price hike is in place, it virtually never goes away.

Yeah, don't I know it...

Crisis-Related Financial News

A few pieces relating to the current financial crisis in America:

• After the hurricanes, relief fundraising stumbles -- Key quote: "Across the board, relief organizations report that they are struggling to raise funds to pay for their operations in Texas and Louisiana, where thousands of people remain in shelters after the storms. The biggest reason they cite is the dearth of media coverage, which has been diverted by a raging financial crisis and presidential elections."

We haven't cut back on our giving -- in fact, we're way ahead for the year so far. But I can see how "helping others" could take a backseat when so many people are uncertain about their personal futures.

• Warren Buffett Tells CNBC He Wholeheartedly Supports Bailout Plan -- I'm not sure what to think of the Bush bailout plan. My general leanings are toward less government intervention and letting the free market run its course. Then again, if $700 billion saves us much, much more than that, isn't it a "good deal"? I don't know/understand all the issues so I really can't say. But someone I really respect likes the plan. The details:

"The Bush administration's controversial financial bailout proposal may be getting a heavy dose of criticism today from angry lawmakers on Capitol Hill, but Warren Buffett tells us he wholeheartedly supports the plan. He told CNBC's Becky Quick over the weekend, 'It's what I would do if I were there.' "

Buffett has no love for Bush, so he's not supporting the plan out of loyalty of any sort. Just having him come out in favor of the effort makes me feel better about it (though I'm still uncertain.)

• A $25 Billion Lifeline for GM, Ford, and Chrysler -- "With Congress preoccupied with the massive, $700 billion bailout plan for the financial industry, General Motors, Ford, and Chrysler have finally secured Part One of their own federal rescue plan. A bill set to be passed by Congress and signed by President Bush as early as this weekend—separate from the controversial Wall Street bailout plan—includes $25 billion in loans for the beleaguered Detroit automakers and several of their suppliers."

Yikes! How did I miss this? What's our government up to? Are they crazy? I can see that we might need ONE car manufacturer for national security purposes (aren't they used to make tanks/other vehicles in case of a major war?), but we're giving money to all three? And is Chrysler even a US company anyway?

• Your insurance policy is — probably — safe -- Good news for AIG policyholders.

• The Top 10 Foreclosure States (as of August) -- My state comes in at #5. Yikes!

Foreclosure Scams Abound

Here's a warning for those of you out there looking to get out of a possible foreclosure. It appears scammers are preying on people needing mortgage help. The details:

Interviews with legal aid offices and law enforcement officials around the nation indicate the problem of so-called “foreclosure rescue scams” has spread like wildfire, neatly paralleling the downturn in the mortgage market.

There are many variations on the scams, but they all boil down to two types. There’s a simple fee-based racket, in which the criminal offers to help the homeowner stave off foreclosure, collects an up-front fee and then disappears. But the more lucrative scam involves seducing homeowners into complicated transactions that allow con artists to steal equity in the house or walk away from the closing table after netting thousands in phony payouts.

It never ceases to amaze me the depth some people will stoop to in order to make a buck.

Ten Ways to Protect Your Finances From the Crisis

Just saw this today from the Wall Street Journal -- 10 steps to take during the current financial crisis:

1. Check that your bank accounts are federally insured.
2. Make sure your brokerage accounts are federally insured, too.
3. Put money in thy purse.
4. Set up a home equity line of credit while you still can.
5. Refinance your mortgage.
6. Stop pulling a Monty Python when it comes to your worst investments.
7. Don't panic.
8. When it comes to your short-term money needs, nothing has changed.
9. If you are investing for five years or more, buy some stock.
10. If you want to worry about anything, worry about your taxes.

I'm especially focusing on #7 and #9 (though I'm buying index funds). How about you?

My Theater Responds

Here's a wrap up to our sneaking-food-in-a-theater discussion. For background, I asked if readers thought it was ethical to sneak food into a theater and there was a lot of discussion (80 comments as of this writing.) I then emailed my local theater to see what their policy was as some commented that theaters don't care if you bring in food. It took my theater some time to respond (longer than they told me it would), and here's what they said:

Thank you for your inquiry regarding outside food and beverage.  It is certainly a relevant topic and I appreciate the opportunity to respond. 

I really do empathize with people’s financial situations, and also know that many continue to hold going to a movie as an affordable, enjoyable, and valued experience.  We hope that our guests find value in the movie going experience at our theatres – the big screen, state of the art digital picture and sound, comfortable surroundings, friendly and helpful service, and the best tasting popcorn known to humankind.

In answer to your question, we do not allow outside food and beverage.  Without the concession stand; box office tickets would be much higher, technology upgrades and renovations much lower.  Honestly, without concessions, movie theatres and movie-lovers would both be in big trouble. 

Thank you again for contacting our theatre.  Please accept my humble apology for not meeting our own deadline of response.  For that, I would like to send you 2 free movies passes, if you would provide me your address.  I hope my response to your inquiry has helped and that you’ll find value in your next visit.

So there you have it. Bad news for me, but he was kind enough to offer the two free tickets.

As I told him, I won't take outside food into the theater again, but instead, as many people suggested, I'll simply wait for the movie to come out on DVD for most movies. In the end, the theater will get what it wants from me (no outside food) but will also get fewer visits. Sounds like a lose-lose proposition to me.

Then again, maybe this is just a sign that I don't need to eat so much candy anyway! ;-)

The Tipping Point: When to Buy a New Car

Check this out from The Simple Dollar:

A few days ago, my truck acted up yet again, with the truck chugging badly before shifting gears (with the chugs vanishing quickly after the shift). Before long, the ol’ “Check Engine” light came on.

Given that it’s already accumulated about $3,000 in repair bills over the last year before this - almost adding up to the Blue Book value of the truck - we’re very hesitant to keep throwing money into an unreliable vehicle.

I went through something similar to this four years ago, but it was worse. It was with TWO cars.

I had a 1994 Maxima with 95,000 miles on it and my wife had a 1991 Civic with about the same mileage (maybe a bit more.) They started taking turns with a $250 repair here, a $500 repair there, and then it started to get really expensive. This was starting to go. That was starting to go. We needed to repair or replace something. The list seemed to go on and on.

So we decided to bail. We bought my wife a new car and six months later we got one for me. We had our old cars fixed and inspected, then donated them to a charity. We had reliable transportation again.

Fast forward four years. My wife's car is at a measly 23,000 miles (she only makes short trips around town) but mine is starting to approach the "decision point". It's at 71,000 miles (we take it on all vacations, etc., so it gets the really big miles.) My experience shows that the bills start mounting around the 90,000 to 100,000 mile point, so I have a couple years to decide what to do for sure. But my plan is that in a year I'll start sorting through options for replacement and a year after that I'll go through my tried and true method for getting a great deal on a new car.

This brings me to my question for this post: how do you decide when it's time to get a new car? A certain number of miles? The first big repair bill? Something else?

Food for thought -- found this in the FMF archives: When to Say Goodbye to Your Old Car.

No Response

For those of you wondering, I haven't yet received a response from my local theater -- even though they promised they'd get back to me within "two business days." Think they are dodging the question?

Do Theaters Even Care if You Bring in Food?

Regarding our sneaking food into movie theaters discussion yesterday, one commenter had this thought:

I worked at an AMC theater at one point. Their official policy was outside food is allowed to be brought in as long as it doesn't smell. (No pizzas, etc.)

So maybe many (most?) theaters actually allow you to bring in food? If so, it puts a whole new spin on the "ethics" of the situation.

BTW, I just sent an email to my local theater asking about their official policy. They replied with an auto email saying that they will respond within two business days. I'll keep you updated on their response.

Is it Ethical to Sneak Food/Drink into a Movie Theater?

Following up on our last ethics discussion, I thought I'd ask this question:

Is it right to sneak food (or drink for that matter) into a theater?

Let's face it, snacks at movie theaters cost a fortune. Boxes of candy that cost $1 on the outside run $3 or $4 (or more!) at a theater. And don't even get me started about the cost of popcorn and soda. Most of these are waaaaaay over the top when it comes to price.

But does that give us the right to sneak snacks into a theater? Is doing so wrong? Or is there no problem with it ethically?

I'm asking this because we do it all the time. We regularly stop by Walgreen's on the way to a movie (we don't see that many movies, so "regularly" is all relative) and pick out the candy we like in theater-size boxes. Then we sneak the treats in and enjoy them during the movie. My wife isn't a candy fan, so she often takes pretzels. (BTW, we "sneak" them in using various methods -- purses, pants pockets (taking the candy out of the box, putting it in a baggie, and placing it on one of those knee-level pockets on many men's shorts these days), and coat pockets (theaters are cold even in the summer, so no one notices when you bring in a light jacket.))

For those of you wondering, we ALWAYS take out our trash. I think it's obviously rude to buy outside food and then leave wrappers, etc. on the floor for the staff to clean. I just don't know about the practice of bringing food in in the first place.

What do you think?

Note: This post is part of the most recent ProBlogger Group Writing Project.

A Couple Interesting Money Articles

Ran into these two pieces today and thought they'd interest you as well:

Big mistake: Wife sells DVD case with $1,200 inside for $10:

When Tracy Holmes of Belleville sold three DVDs for $10 at her garage sale Aug. 15, she thought she was doing well. She was getting rid of some movies that she and her husband hadn't watched in a long time and making a little money as well.

About a week later, when her husband, Fred Holmes, asked her what had happened to the DVD of "Sin City," she suddenly felt sick.

Her husband had been secretly saving up money, at least $1,200 so far, for a Christmas family trip to Disney World in Florida for the couple and their three children.

"He thought apparently (the DVD case) was a great spot to hide it from me, and it was," Holmes said. "I didn't think to look there."
As best she can remember, Holmes thinks the man who bought the DVD was about 6 feet tall and in his 50s or possibly 60s. She's hoping that if she gets the word out, the buyer will return the money.

Oops!!!

D.C. Tries Cash as a Motivator In School:

For years, school officials have used detention, remedial classes, summer school and suspensions to turn around poorly behaved, underachieving middle school students, with little results. Now they are introducing a program that will pay students up to $100 per month for displaying good behavior.

Beginning in October, 3,000 students at 14 middle schools will be eligible to earn up to 50 points per month and be paid $2 per point for attending class regularly and on time, turning in homework, displaying manners and earning high marks. A maximum of $2.7 million has been set aside for the program, and the money students earn will be deposited every two weeks into bank accounts the system plans to open for them.

Holy cow! Where was this program when I was in school? I could have funded my college education this way! ;-)

How Much Do You Tip Your Hotel Maid?

Shoemoney recently asked his readers how much they tip their hotel maid.

Uh, you tip a hotel maid? Really?

Ok, I know I'll get comments about being a tightwad and so on, but really, isn't maid service part of what you pay the hotel for? You don't pay them extra for using the water, towels, and pool (usually), so why tip a maid? Do maids earn below minimum wage like waitresses and are expected to make up the extra with tips? And what about the servers (the ones who set out the food and keep it stocked) at those free breakfast buffets? Do they get a tip too? What about the front desk people?

Anyway, as you can see, I'm confused. Maybe you all can point out what you do and why -- I'm sure that would help.

Good Idea or Waste of Time?

So, do you think this is a good idea or waste of time? A summary:

• Order $250 or $500 in presidential dollar coins.
• Pay with your cash rewards credit card.
• Deposit the money at your bank.
• Pay your credit card bill with the money at your bank.
• Get your cashback from your credit card.

For those of you wondering, there's no shipping charges (it's supposedly taken off on the final, confirmation screen), so there are no additional costs.

My question: is it worth the time and effort or is this way of making money too much hassle for too little reward?

Are You Putting off Dental (or Medical) Care Because of the Economy?

Ran into this a couple weeks ago. It tells about how some people are putting off dental care because of the bad economy. The overview:

In a painfully slow economy, more dental patients are delaying the decision to put their money where their mouths are.

The piece goes on to tell how some people are putting off procedures (even routine cleanings) because of the economy. Some have lost insurance and others never had any. Anyway, the bottomline is that hard times are keeping people from having needed dental work.

The piece does offer a good solution for those who can't afford a trip to the dentist:

More state residents are resorting to low-cost clinics, said Dr. Stephen Stefanac, associate dean for patient services at the University of Michigan School of Dentistry.

Dental school students and residents provide basic services at a discounted price at clinics around the state.

We haven't put off any dental work due to the economy, but we are getting a second opinion on braces for my son.

How about you? Anyone out there putting off dental work because of finances? Or how about any medical work -- anyone putting off something you've been told you need to take care of?

When to Splurge and When to Skimp

MSN Money has some suggestions on when you should splurge on an item and when you shouldn't. In other words, when is it worth paying more for an item and when is paying more a waste of money? Some of their examples:

• Mattress: SPLURGE. You sit, sleep and God knows what else on this item. Get a good one.
• Men's dress shirt: SKIMP. If your suit is well-tailored and the tie spectacular, the shirt will be an afterthought.
• Chef's knife: SPLURGE. One 8-inch chef's knife is all you need.
• Women's shirts: SKIMP. Cute tops from H&M will go out of style before they fall apart.
• Overcoat: SPLURGE. First impressions mean a lot.
• Accent chair: SKIMP. If it's cool and rarely supports a rear, quality can come after design.
• Table linens: SKIMP. Choose inexpensive table cloths and napkins to keep your tabletop trendy.

Here's my take on their list:

• Mattress: I'd certainly splurge if I could find a good one, but how does one know what is good? My experience here is that you can pay a ton and get a lemon or pay a bit and get something that's comfortable -- or anywhere in between.

• Men's dress shirt: I don't wear dress shirts often and many of mine are from several years ago. But if I was to buy one I'd go for decent quality as very few people (including me) ever wear suit coats.

• Chef's knife: I probably should splurge, but we get our knives at Walmart, Target, or the like.

• Women's shirts: Yes, skimp. Or is that skimp-y? ;-)

• Overcoat: Again, I don't really wear a traditional overcoat, but I'd go for medium quality/price.

• Accent chair: Ha! Need I even comment on this?

• Table linens: Yes, skimp!

To me, they are discussing the give-and-take between quality and price. For example:

My friend John Rizzo, an economist, points out that you can buy a $1,050 winter coat today or a $70 coat every two years for the next 30 years.

But there's a fallacy in their line of thinking. They seem to equate "expensive" and "good quality." But quality and price aren't always related. If you shop smartly, you can get some very high quality goods at reasonable prices. Readers of Consumer Reports will recognize these as "best buys". These are products that CR thinks are among the best performing in their class, yet usually sold at a much lower price than comparable items. This is how we buy most of our stuff -- we look for good-quality products with lower prices. For everything else, we usually skimp. ;-)

Life Wild in China

We have friends living in China and they recently sent me an email telling me about their daily life there. One comment stood out to me as quite interesting and appropriate for FMF:

In other unrelated news, the price of a small box of Cheerios is now 74 RMB or $10.80.  On the other hand, seven seasons of the TV show M.A.S.H. are available on the street for 30 RMB or $4.37.  So, we may have lived in China for two years, but life here remains unpredictable and incredibly interesting!

Ha! I guess like anywhere there are some good deals and bad deals to be had in China. ;-)

Do You Have Any Unused Gift Cards?

In the August issue of Money magazine, they list gift cards as being potentially the worst gift ever (if you get one from a place where you don't shop.) They also cite the following stats about gift cards:

• 49% of Americans have at least one unused gift card
• The average number of gift cards that people have is 3.7

We currently have several unused gift cards as follows:

• Sears - Left over from my elliptical issue with them. We're saving it for Christmas purchases and/or for work if/when we get our new house.

• Macy's - Left over from Christmas last year. We hardly ever shop there and will probably use this for Christmas gifts this year.

• Local ice cream place -- My daughter received for her birthday last year.

• Bed Bath and Beyond -- From a rebate (I hate those things!)

I have a list of the cards we haven't used and I make sure we do eventually do use them, but it requires some diligence. I can see where others who aren't quite as organized could lose track of them.

The Money piece suggests people resell their cards at PlasticJungle.com if they'd rather have the cash. Anyone used this site (or one like it)? Thoughts?

How about you -- are you currently holding on to any gift cards?

What are the Most Difficult Purchases to Make?

What do you think are the most difficult purchases we make as consumers? Here are a few that I think are very difficult as well as the reasons I feel this way:

• Homes -- The facts: 1) it's an expensive purchase, 2) we buy homes infrequently and thus don't have the experience often, and 3) it's generally an emotional time because it's not only a purchase but it's where we'll spend a good deal of time. These three combine to make buying a home a very difficult purchase for most people.

• Cars -- Expensive purchase, not done often (lack of skill by most buyers) and often dishonest salespeople make buying a car a nightmare for many people.

• Beds -- The whole bedding industry is in on a conspiracy to confuse their customers. Identical products are named differently at different retailers, making comparing on price almost impossible. And it's a product that you don't know if you'll like or not until you buy it, but once you buy it it's difficult if not impossible to return. Oh yeah, and the fact that you'll spend a good portion of your life on it makes a big difference too.

Those are the three that come to the top of my mind for now. Do you have any difficult purchases to add to this list?

Do You Shop at Dollar Stores?

Kiplinger's piece on the Dollar Tree got me to thinking about "dollar" stores in general. You know, those places where "everything is one dollar." Here's my question on them:

Are they great money savers or simply places full of trashy trinkets?

We hardly ever shop at dollar stores, but on some occasions they do come in handy. A few examples where dollar stores saved us some money:

• My wife picked up some decorations for a cabin at church camp.
• We got some party favors for my daughter's birthday party.
• Stocking stuffers/small gifts during the holidays.

But other than that, we don't really frequent dollar stores since our thoughts are they are usually full of junk (and who needs more "stuff" around the house?)

What's your take on the issue? Do you like dollar stores or not?

A Solution to Our Energy Problems?

I saw an ad for the Pickens Plan last night on TV. For those of you in the know, T. Boone Pickens has made a fortune in business, a good amount of it in the oil business. Well, now he's touting his plan to get America off its dependence on foreign oil. Basically, he's suggesting we use wind power and natural gas. You can read all the details here, but here are some of the facts that stood out to me. First of all -- the problem:

In 1970, we imported 24% of our oil. Today it's nearly 70% and growing.

As imports grow and world prices rise, the amount of money we send to foreign nations every year is soaring. At current oil prices, we will send $700 billion dollars out of the country this year alone — that's four times the annual cost of the Iraq war.

Projected over the next 10 years the cost will be $10 trillion — it will be the greatest transfer of wealth in the history of mankind.

World oil production peaked in 2005. Despite growing demand and an unprecedented increase in prices, oil production has fallen over the last three years. Oil is getting more expensive to produce, harder to find and there just isn't enough of it to keep up with demand. The simple truth is that cheap and easy oil is gone.

One part of the solution -- wind power:

What's the good news? The United States is the Saudi Arabia of wind power.

Studies from around the world show that the Great Plains states are home to the greatest wind energy potential in the world — by far.

The Department of Energy reports that 20% of America's electricity can come from wind. North Dakota alone has the potential to provide power for more than a quarter of the country.

A 2005 Stanford University study found that there is enough wind power worldwide to satisfy global demand 7 times over — even if only 20% of wind power could be captured.

Building wind facilities in the corridor that stretches from the Texas panhandle to North Dakota could produce 20% of the electricity for the United States at a cost of $1 trillion. It would take another $200 billion to build the capacity to transmit that energy to cities and towns.

That's a lot of money, but it's a one-time cost. And compared to the $700 billion we spend on foreign oil every year, it's a bargain.

An unexpected benefit from building wind power facilities:

Developing wind power is an investment in rural America.

To witness the economic promise of wind energy, look no further than Sweetwater, Texas.

Sweetwater was typical of many small towns in middle-America. With a shortage of good jobs, the youth of Sweetwater were leaving in search of greater opportunities. And the town's population dropped from 12,000 to under 10,000.

When a large wind power facility was built outside of town, Sweetwater experienced a revival. New economic opportunity brought the town back to life and the population has grown back up to 12,000.

In addition to creating new construction and maintenance jobs, thousands of Americans will be employed to manufacture the turbines and blades. These are high skill jobs that pay on a scale comparable to aerospace jobs.

Plus, wind turbines don't interfere with farming and grazing, so they don't threaten food production or existing local economies.

How we can run our cars:

Natural gas and bio-fuels are the only domestic energy sources used for transportation.

Natural gas is the cleanest transportation fuel available today. According to the California Energy Commission, critical greenhouse gas emissions from natural gas are 23% lower than diesel and 30% lower than gasoline. Natural gas is significantly less expensive than gasoline or diesel. In places like Utah and Oklahoma, prices are less than $1 a gallon.

Natural gas is our country's second largest energy resource and a vital component of our energy supply. 98% of the natural gas used in the United States is from North America. But 70% of our oil is purchased from foreign nations.

We currently use natural gas to produce 22% of our electricity. Harnessing the power of wind to generate electricity will give us the flexibility to shift natural gas away from electricity generation and put it to use as a transportation fuel — reducing our dependence on foreign oil by more than one-third.

Their plan:

Building new wind generation facilities and better utilizing our natural gas resources can replace more than one-third of our foreign oil imports in 10 years. But it will take leadership.

On January 20th, 2009, a new President will take office.

We're organizing behind the Pickens Plan now to ensure our voices will be heard by the next administration.

I've said before that I'm interested in the potential of wind power, so this plan seems at least a start in the right direction to me. What do you think? I'm sure many of you know a good amount about this issue, so I'm very interested in hearing your take on this issue.