Spend or Splurge?

Sometimes it makes sense to splurge on a pricier item—sometimes it’s smarter to skimp. But when?

Working as a professional organizer, I see both sides of the purchasing problem—homes cluttered with over-priced items—and the frustration caused by inferior products bought in a misguided attempt to save money.

Before you buy another thing for your home, use these guidelines to determine where it makes sense to spend, and where you’ll be just as satisfied if you skimp.

Spend more if… you’ll use it for years. It pays to spend on items you’ll have for a long time: couch, stepstool, or vacuum cleaner. Over the lifetime of the object, the additional cost is negligible.

Skimp if… it will be out-of-date soon. A new tech gadget will be cheaper in a year; skimp on pillows and curtains, if you change décor often.

Spend more if… quality matters. A dull knife is makes cooking a chore. The flimsy drawers on a shoddy file cabinet or dresser will annoy you every time you open them. Pay more for ease-of-use.

Skimp if… you’re not really sure how much you’ll use it. If you’re not a budding chef, opt for the $40 mixer, not the $400 professional model—until you’ve whipped up several soufflés.

Spend more if… it makes your life easier. Invest in great, lightweight luggage if you travel often; in pull-out shelves that streamline your space; a clothes steamer that make mornings a breeze.

Skimp if… it’s likely to break, get dirty or wear out. Skimp on expensive wine glasses (use the money you save to buy better wine)! Got kids or a shedding pet? Forgo expensive furniture. Towels and linens don’t last for years, so go for cheapies since you’ll be replacing them often.

Spend if… it ultimately saves you money. Get the snazzy coffee maker with individual pods if it weans you from a $5 a day latte habit. When comparing products, consider the cost of maintenance and replacement parts. Rechargeable batteries cost more up front, but save you money in the long run.

Ultimately, remember that price doesn’t make an item more valuable—it’s where it fits in your life. Inexpensive dinner plates work just as well as fancy ones. And there’s a reason IKEA’s $50 Billy bookcase is the world’s best-selling bookcase.

This article was written by Lisa Zaslow and originally published on September 16, 2011 at dailyworth.com.

 

10 Ways to Get More Shut-Eye

Too little sleep can lead to heart problems, high blood pressure, obesity, type 2 diabetes and other conditions. It also seems to be on the rise, with about 400 percent more accredited sleep centers in the U.S. than a decade ago. Here are ways to nod off without counting sheep.

1. Keep a consistent schedule.

Wake-up time and bedtime shouldn’t vary by more than an hour each day, including weekends. “People get the Monday-morning blues because they sleep in on weekends,” says Todd J. Swick, M.D., medical director of Apnix Sleep Diagnostics in Houston. “It shifts the internal clock.”

2. Exercise – but not too late.

Working out increases levels of stress hormones such as cortisol and epinephrine. That’s good for revving up your heart rate when you’re doing aerobics, but those same chemicals can keep you up if you work out less than 4 hours before bedtime.

3. Curb late-night snacking.

Eating after dinner diverts blood from the brain – needed for proper sleep – to digesting food. Nighttime digestion can also disrupt sleep, especially if you suffer from acid reflux. A rule of thumb: Other than perhaps a bit of cheese or milk, eat no later than 3 hours before hitting the sack, especially large meals.

4. Wean yourself off sleep meds.

Sleep aids, especially over-the-counter versions, are meant to be used no more than three to four weeks. Besides being psychologically addictive, they can upset normal sleep patterns. “They change the relative percentage of different sleep stages your body needs,” Swick says.

5. Adjust your temperature.

A hot bath or shower followed by time spent in a cool room preps the body for sleep better than thick pajamas and heavy covers. As for room temperature, the ideal range for sleeping is roughly 68° F to 70° F.

6. Lay off the sauce.

Like a nightcap to help you unwind? That late-night nip can cause you to wake early, since alcohol becomes a stimulant as it’s metabolized. Alcohol also worsens sleep apnea and causes louder, deeper snoring. Take that last drink 3 to 4 hours before bed if you have no major sleep problems – and at least 6 hours if you do.

7. Turn off the tube.

Watching TV or using computers and mobile devices right before bedtime may seem like a great way to relax, but it can make the brain think it’s morning. Like to read in bed? Consider features and apps that display white text on a black background, which is less likely to trigger the daylight effect.

8. Decaffeinate your evenings.

Sleep experts advise people to avoid caffeine in all forms after 6 p.m. You may even want to consider switching to decaf hours earlier if you have trouble sleeping.

9. Banish pets.

Some people would sooner kick their spouse or partner out of bed than their pet. But pets can disturb sleep by snoring, getting on and off the bed, and taking up space.

10. Kick it down a notch.

Help tune out your anxieties by writing your worries on index cards in the early evening. “We call them worry cards,” Swick says. “We’ve found that most fears don’t look nearly as serious once you’ve written them out.”

This article was originally published in the May, 2013 issue of Consumer Reports.

How to Beat Travel Fees Big and Small

Travelers have been complaining about airline fees for booking, itinerary changes, and checked baggage for years. But now airlines seem to have a fee for almost everything – Wi-Fi, extra leg room, and more. “Anything that some might consider a perk, there’s now a fee for that,” says Rick Seaney, co-founder of FareCompare.com, a travel-planning website.

Even low-fee carrier Southwest Airlines added a $40 fee in January for passengers who want to be among the first 15 people to board their plane. It has also raised its “EarlyBird” check-in for slightly less exclusive priority boarding from $10 to $12.50.

Extra fees from airlines and hotels often aren’t disclosed when you book a trip. But more transparency may be on the way. In November, the Federal Trade Commission sent a warning letter to 22 hotel operators telling them to disclose “resort fees” in their total price. And this month the Department of Transportation expects to release a proposed rule that would require airlines to provide fee information to travel agents so that consumers can compare fees amount carriers and pay for optional services when they book flights.

Until then, here’s what to do to avoid certain fees.

1. Airline extras.

The fees most likely to aggravate you are those for changing your ticket and for checking your bags. Change fees typically run $75 to $150 for domestic flights and $200 for international trips. Your first checked bag typically costs $20 to $25 on domestic flights and is free if you fly internationally. But if your checked bags weigh too much, you’ll get slapped with overweight fees of $25 to $200. You might also pay fees of $10 to $35 to book by phone, up to $99 for advance seat selection, and $10 to $199 for extra leg room. If those aren’t bad enough, Spirit Airlines charges up to $50 for a carry-on, and Virgin America has a $10 fee for pillows and blankets.

What you can do. Travel light. Or fly a low-fee airline, such as JetBlue or Southwest. JetBlue allows you one free checked bag; Southwest gives you two. If you need to check a bag or pay for a carry-on, see whether there’s a discount for prepaying on the airline’s website.

Check your airline’s luggage fees and weight limits. For example, United charges $100 to $200 (depending on your destination) for a checked bag weighing from 51 to 70 pounds; Hawaiian Airlines charges $50 for travel outside Hawaii. Complicating things, overweight fees kick in at just 41 pounds on Spirit and Allegiant Air.

You might avoid some fees if you charge your travel to an airline credit card. The cards often carry annual fees of $40 to $100, but many waive them in the first year. The perks they typically offer – priority boarding, free checked luggage, car-rental insurance, travel insurance, and access to airport lounges – can more than make up for the annual fee.

2. Hotel Add-ons

Once you arrive at your destination, you might get hit with “resort fees” tacked onto your hotel bill at checkout to the tune of $12 to $40 per day. Those fees can cover services such as access to a pool, gym, or business center; daily newspapers; or making “free” local calls – whether you use the services or not.

What you can do. Try negotiating with the hotel clerk to remove or reduce the extra fees. Or stay at a hotel that doesn’t charge them in the first place. Mid-tier chains such as Courtyard by Marriott, Hilton Garden Inn, and Hyatt House typically offer free Wi-Fi, parking, gyms, pools, and business centers.

Joining a hotel loyalty program or getting a hotel credit card can score you free amenities. For instance, Omni Hotel group’s complimentary loyalty program gets you free Wi-Fi, morning beverage service, newspapers, clothes pressing, and bottled water on your arrival.

This article was originally published in the May 2013 issue of Consumer Reports.

The 10 Biggest Reasons We’re In Debt

Americans have been paying down their debts since 2008. That’s been good news for their personal fiscal health, but not-so-good news for the tepid U.S. economy, which depends on consumer spending for its vigor.

According to the New York Federal Reserve’s most recent report, consumers cut their overall household debt burden by a whopping $1.37 trillion from the third quarter of 2008 through the third quarter of this year. By the end of September 2012, total household debt was $11.31 trillion, and the four-year-long “Great American Debt Diet” was still on track.

In the third quarter alone, households shed a total of $74 billion in debt, largely due to a decline in mortgage loans. However, debt unrelated to real estate — student loans, car loans, credit card balances — jumped by 2.3% to total $2.7 trillion.

Clearly, not all debts are the same. Some help the overall economy, while others hurt it. So it’s worth taking a closer look at exactly what Americans owe and to whom. The following is a breakdown of the 10 leading sources of personal debt in the United States.

1. Mortgage loans: $8 trillion

Not surprisingly, the amount that Americans owe on their homes tops the list of personal debts, accounting for 71% of total personal debt, according to the Fed.

Mortgage debt totaled $8.03 trillion in the third quarter of 2012, down 1.5% from the second quarter and at its lowest level since 2006. In fact, overall homeownership rates have been declining steadily since 2006. In the third quarter, homeownership stood at 65.3%, according to the U.S. Census Bureau. The last time it was that low Bill Clinton was president, the tech boom was in its infancy, and “Braveheart” won the Oscar for best picture of 1996.

On the positive side, mortgage delinquency rates fell to 5.9% in the third quarter from 6.3% in the previous three months. Mortgage originations rose to $521 billion, the fourth consecutive quarterly increase, and a sign of recovery in the residential real-estate market.

Still, about 18% of U.S. homeowners owed more than their houses were worth as of July 2012, according to Lender Processing Services. The situation was worst in Nevada, where 55% of loans were underwater.

2. Student loans: $914 billion

Outstanding student loan debt stood at $914 billion as of June 30, 2012, according to the latest quarterly report on household debt and credit by the New York Fed.

While most other forms of household debt have been on the decline, debt related to education has increased by $303 billion since household debt peaked in the third quarter of 2008. (Other forms of debt have declined by a combined $1.6 trillion since then.) In fact, student loan debt was $10 billion higher in the second quarter of 2012 than in the first, and delinquency rates also increased.

The percent of student loan balances 90 or more days delinquent increased to 8.9%, up from 8.7% during the prior quarter.

The rising cost of education is likely to blame. The Institute for College Access & Success, an advocacy group, says the average student debt rose to $26,600 for the class of 2011, up from $25,250 in 2010.

3. Car loans: $768 billion

Outstanding auto loans totaled $768 billion in the third quarter of 2012, the highest amount in nearly four years, according to the Fed. Also, auto-loan balances increased for the sixth consecutive quarter.

New auto loans rose for the third consecutive quarter, to $85.8 billion, an increase of 4.4% over the prior quarter.

The percentage of auto-loan debt that is 90 days or more delinquent was roughly steady versus the prior quarter, at about 4.2%. The rise in auto debt, along with the stability in auto-loan delinquencies, is seen as a positive sign for the health of the overall economy.

This article was written by Scot Meyer and originally posted at money.msn.com. To read the entire list of reasons we’re in debt, click here.

The Best and Worst Things to Buy in June

June is the month with the longest daylight hours of the year, which for the deal-hunter means that you have even more time to shop! But before you let the increasingly warm weather convince you to buy less-than-stellar deals, check out our latest buying guide. We searched through our extensive archives of sales, promotions, coupons, and daily deals to sort the fact from fiction when it comes to getting the best deals in June.

Beef Prices Are on the Rise

Unfortunately for anyone getting ready for a season of grilling, beef prices have risen to historically high prices. According to The Wall Street Journal, “Retail beef prices are widely expected to set new records in coming weeks after wholesale prices hit an all-time peak this past week.” The increases are due to years of drought that have thinned cattle herds, a problem that can’t be easily reversed. Maybe take this opportunity to throw leaner foods like chicken and (gasp!) veggie burgers on that gas or charcoal grill.

Grill Deals Will Spark in July

Of course, we can’t mention grilling without pointing out that deals on grills themselves will be less than thrilling in June. You’ll get a better discount if you wait for July 4th promotions. According to our deals from last year, you could save as much as $200 or more on a mid- to high-end grill if you wait until July.

The Month is Front-Loaded with Tool Deals

Naturally, there will be tool sales in June to entice shoppers to buy turbo charged something or other for dear old dad on Father’s Day. In fact, about two-thirds of last year’s Editors’ Choice offers on tools in June came before the holiday. But if you’re looking to buy something substantial, and there’s no Father’s Day deadline, consider waiting until late October or November when the discounts are consistently deeper.

Hold Off on Apple Purchases

Apple will be holding its annual developers conference in June, and while CEO Tim Cook has hinted that new hardware won’t come until the fall, one thing is certain: you’ll be kicking yourself if you buy a new iPhone or MacBook if these items get refreshed this month. If that happens, then we’ll see price cuts on previous generation models, both new units (at resellers like MacMall) and refurbished devices (from Apple directly). If Apple only unveils iOS 7 at the conference, then go ahead and buy the Cupertino device of your dreams — unless you want to wait another few months.

This article was written by Lindsay Sakraida and originally published at dealnews.com on May 28, 2013. To read the entire list of buys, click here.