Cutting Costs

Make The Best Deals On Discounts

May 13, 2016 By Twila Van Leer

Learn how to get the best deal at discount stores. — Learn how to get the best deals at discount stores.

Discount stores, such as T.J. Maxx and Nordstrom Rack and others, exist to offer bargains, but a little savvy on your part can multiply the benefit. You can save an average 60 percent on brand name goods, even in season if you follow some simple suggestions,

The discount stores saw a real boom during the Great Recession More than 1,000 stores have been added to the rosters of major providers such as Marshalls, HomeGoods and T.J. Maxx since 2009, bringing the total to more than 4,000.

Sales topping $5 billion in clothing and footwear alone have been reported, a 40 percent increase since 2009, according to RBC Capital Markets, and the figures continue to climb.

Seven Tips To Help You Get In On The Trend

Shop Frequently And Do The Research

At least once a week, check out what’s going on at your favorite discount stores. Have in mind up front what look you are hoping to cultivate. The stores receive new merchandise almost daily.

Time Your Buying

Become acquainted with a favorite clerk or the store manager. Each store has a rhythm as to what merchandise will be featured and when. They will be glad to share that information. Sign up with the store’s Twitter and other social media so you’ll receive alerts. Expect the discount outlets to be a few weeks behind the traditional stores, when they receive what is left from the parent store’s sales. This is especially true of winter holidays.

Sign Up For Loyalty Programs That Offer Extra Savings

At Saks Off, for instance, regular customers get updates and extra savings by signing up for the More program on the website. TJX’s loyalty program sponsors an occasional give-away and some private parties in which you can get first chance at discounted merchandise. The TJX Rewards card offer a $10 added bonus for every $200 you spend.

Look For The Real Thing

More than half of the merchandise offered in the discount outlets is made specifically for the company, many of the items brand name quality. The rest of what you find in the store is excess inventory from brands or full-price retailers. If you see many racks of a specific brand with good variety in sizes, it is likely the goods were created for the chain. Check seams for quality. Some of the outlets don’t buy merchandise made for the off-price stores, offering only items designed for full-price stores or the best of their clearance goods. Macy’s new Backstage products fall into this category.

Study Prices

Don’t rely solely on the manufacturer’s suggested list price. It may be inflated to make the discount look better. Compare prices of the item you want and what they actually sold for on Amazon.com and other websites.

Inspect For Flaws

The off-price stores have largely stopped being outlets for damaged merchandise, but it still pays to look carefully. Check expiration dates for food and beauty products and examine clothing for holes and snags in the material. If you detect a flaw, but think you could live with it, ask for an additional discount.

Stay Reasonable

Faced with racks and racks of items with deep price cuts, don’t be tempted to overspend. Stick to your allotted budget and buy what you really need, not items you merely crave because of the discounted price. A bargain is no bargain if it is never used.

Paying Too Much For Mobile Phone Service?

April 13, 2016 By Twila Van Leer

Those staying current with the market find lower prices.

Consumer Reports estimates that 50 to 70 percent of wireless customers pay too much for the service. There are better options, the price oversight publication says.

Check For Promotions

They give the example of Michael McCormack, who has followed the wireless industry for years as part of his job. Since he also is a customer, he was able recently to take advantage of a T-Mobile US Inc. promotion offering four lines for $150 per month.

Make Changes In Service According To Needs

Yeah, but what if your job doesn’t include up-to-the-minute info on such things? The great majority of consumers don’t pay much attention, so they go on paying too much. Some of them are “loyal to a fault,” failing to make changes in their service because they’ve been with provider for a time.

But some 6 percent of the 90,000 responders to a recent Consumer Reports survey said they had changed service in the past year. The savings amounted to about $20 per month, the survey found.

Compare Prices With Other Carriers

The Consumer Reports experts said users should be paying no more than $50 per line, instead of about $100. The carriers aren’t prone to let consumers know how they can save money, said Michael Gikas, senior editor for electronics and technology. T-Mobile started a price war in 2013 and the effects are still being felt. But it’s up to the customer to check on the prices being offered by various carriers and switch when it’s to their advantage. The carriers often offer special prices to customers threatening to make a change.

Customer Satisfaction

Those who are happy with their service are the least likely to change. Others don’t want to go through the hassle of swapping providers, even if they pay more to stay put.

Verizon Communications Inc. has the lowest rate of “churn” or customer defection, in the industry. Company officials say that is because of their focus on quality service and working with customers to guarantee satisfaction. Spokespersons for other carriers emphasized their features, which they believe to be as much as factor in retaining customers. The competition is fierce. T-Mobile has moved customers to lower-priced plans and AT&T has responded to industry price cuts by not only reducing their prices but increasing data allotments.

With this kind of competition, consumers who are willing to stay current with the market are likely to find lower prices.

Lower Airfares Predicted

March 20, 2016 By Twila Van Leer

For travelers all over the world, the lure of lower airfares is attractive. NASA scientists are working on eliminating a problem that just may drop airfares. Bugs are the target for this new technology. They are developing a coating to be applied to the airplane that will keep insects (and other debris) from sticking to the wings and fuselage of a craft, allowing smoother air flow and lower fuel costs.

Researchers count insect residue on the wing of the ecoDemonstrator 757 aircraft. Photographer: Paul Bagby/NASA Langley

Fuel Efficiency

NASA says the improvement in “laminar flow” reduces drag and improves fuel efficiency. Even very small bits of debris, including bug splats, can cause air turbulence that roils the airstream. The scientists describe it as tiny air waves crashing against each other.

Two Potential Coatings

Eliminating the problem would be no small deal. Two potential coatings, tested last year on the wings of a Boeing 757, showed real promise.

The projected savings in fuel costs are enormous.
“It’s like taking your car from 20 miles per gallon to 200,” said Mark Drela, professor at Massachusetts Institute of Technology and a specialist in aerodynamics.

Estimates are that successful coatings could cut airline fuel consumption by 1 percent. If that sounds like a small amount, consider that it represents 167 million gallons of fuel at a savings of 308 million a year.

Those working on the potential coatings say they would be most effective if incorporated into the design of new planes, rather than adding it to craft already in use. And as with all new technologies, it would have to prove itself effective before the manufacturers would run to get on the bandwagon. But environmentalists are pushing, because of the anticipated benefits to the air. Airplanes are blamed for a significant portion of the climate warming that is happening. Amid predictions that more controls will inevitably be placed on the air travel industry (some prospective new regulations are due to be implemented by 2020), they are looking for better solutions.

Expensive Research

The technology being tested borrows a lesson from nature. For instance, they looked at lotus leaves, which has pits and ridges that repel water. The costs of research are enormous. Some $400 million has been spent. Those working on the coatings (at a cost of some $10 million) expect that royalties paid by airlines for use of the technology will recoup their investment.

Future Plans

How soon we will be seeing airplanes with the new coating remains to be seen. And whether it will portend less expensive air fares also is part of the unknown equation. But the prospects are worth thinking about.

While the science is still in its infancy, the prospect offers a number of advantages: less pollution of the air from air flight, (aircraft emit 3 percent of the greenhouse gases in the U.S.) and, down the road, possibly a drop in the cost of air fares.

Should I Cut The Cable Cord?

March 15, 2016 By Twila Van Leer

Dropping Cable Or Satellite TV? Make An Educated Choice

Thinking of dropping live tv. — Many people are trying to decide whether to drop live tv.

The great majority of Americans, some 83 percent as of 2015, pay for TV service, according to Leitchman Research Group. They put out money for cable, satellite or fiber-optic providers. The percentage actually has dropped slightly since 2010, when it was at the 87 percent level. The difference, according to the researchers, is that fewer households are signing up for cable to replace those who have dropped the service. And some couples moving into their first home don’t sign up as a matter of course.

The percentages may continue to drop as people catch on to the fact that they don’t need cable or satellite to watch their favorite TV shows. Streaming, downloading, library discs and network TV are all reasonable alternatives.

Streaming:

Services such as HULU, Netflix and Amazon Prime give you access to thousands of shows, including past seasons of popular cable series, current episodes of network TV shows and original shows that are only available online. The average price of the services is just $9 per month, only a fraction of the $99-per-month average cost of cable or satellite. An advantage: you can tune in on your own schedule, rather than the network’s.

Downloads:

You have access to many TV shows from iTunes or VUDU for $2 to $3 each. That could become more expensive than cable or satellite if you get all your shows this way. But if you are an occasional viewer or if you want to watch just one particular show that you can’t get through a streaming service, it’s practical.

Library Discs:

Most modern libraries now offer videos for patrons. Check out your local library.

Network TV:

Despite the many delivery choices now available, it still is possible to watch TV the old-fashioned way without any additional fees. All you need is a good antenna, preferably a roof-mounted version. Various indoor antennas also are available if you don’t have easy access to a roof. You can even build your own with instructions from such publications as Popular Mechanics. Online tutorials can guide you in making an antenna from materials that are readily available, such as scrap wood and old coat hangers, cardboard and aluminum foil.

Choosing among the alternatives could save you a bundle. For instance, compare a $99-per-month cable fee with an $8-per-month HULU subscription. Over a year, that’s a $1,092 savings.

Check Up On Your Personal Finance Planning

March 11, 2016 By Twila Van Leer

The Great Recession that plagued personal finances from 1993 to 2008 had a significant impact on the amount of money Americans were saving. Savings figures for the period were at the lowest levels in recent history.

But by May of 2009, the household savings rate had climbed to 6.9 percent, the highest level since 1993. It took a major financial jolt to get people back on the right track. The effect of the recession, coming on the heels of a period of high borrowing, was a disaster for many. Bankruptcy filings had nearly doubled by the end of 2008.
If you have lingering concerns about the state of your own finances, check your data against these indicators. Make adjustments if necessary.

5 Steps To Financial Health

Credit Scores

1. Check your credit score. In a range of 300 to 850, the higher your score, the better your financial health. Lenders use this score to determine if they want to do business with you. To get a credit score without cost, contact one of the three primary credit bureaus, TransUnion, Equifax or Experian. If your score is below 600, try to improve it by paying down debt, satisfying outstanding judgments or curb your use of credit cards.

Savings

2. If you are saving less than 5 percent of your income, it isn’t enough. In 1993, the rate, at 7 percent, was the highest it had been. Since then, too many earners began dipping into savings to see them through the recession, rather than adding to their savings cushion. The trend now is up and if you haven’t joined the savers, now is the time. Don’t look at it as an immediate thing, but as part of the retirement you hope to have. If your savings backup is niggardly, it may disappear entirely in the event of a medical emergency or any other of the many financial challenges that can bite when you aren’t prepared. Make savings of 10 percent of income a goal.

Credit Cards

3. You can be pretty sure you are in over your head if you carry credit card balances from month to month or if you are paying only a small amount to the principal. This is a major cause of financial stress for many people. Ideally, you use a credit card only in emergencies, or charge only what you can pay off in a month. Then you start whittling away at the total, paying whatever you can over the expected monthly payment. Only $5,000 in credit card debt requires a minimum $200 a month and can ultimately cost $8,000, taking up to 13 years to pay off.

Mortgages

4. If housing consumes more than 28 percent of your income, you are in trouble. Almost certainly you will have to cut back in other areas of your budget to handle that load. When the housing market was thriving, the mortgage lenders were allowing people to buy homes that absorbed up to 35 percent of their income, but with the country just coming out of the housing slump, they are edging back to the 28 percent figure. Give some serious thought to downsizing if possible.

Cut Back

5. If your non-housing bills are going crazy, you can assume you need to do something to restore balance. Succumbing to the temptation to buy items on time, you end up paying what seem to be relatively small amounts on a dozen or more products or services. Then relative small quickly becomes over-large and you’re suddenly in the category in which the required outgo is larger than the income. Assess your situation by putting all the bills on the table and seriously discussing them. Identify what you can trim or do without and then do without it. Just one for-instance: Do you really need a 500-channel cable TV package if you are using only a few of the channels? Do you really need a land line if you have cell phones? Etc. etc. etc. An honest look may help your family regain control of its resources without any really painful sacrifices.

Do what you can to avoid become part of the dismal foreclosure and bankruptcy statistics. Keep tabs on your finances and move toward a better distribution of what you have for the sake of the future as well as the present.