Dr. Budgets was featured on the popular Young House Love Has a Podcast on September 11, 2017 (Episode #63)! Here’s a link to the episode: #63: LET’S TALK ABOUT MONEY & HOW TO SPEND IT SMARTER.
Here’s their introduction to the episode:
“Who wouldn’t want more money in the ol’ bank account? So we picked a money expert’s brain for the most common places he finds his clients overspending, and for his best tips on making (and sticking to!) an easy household budget – which is definitely the key to saving more each month.”
- Published in Spend Wisely
- Published in Financial Goals
By Daniel Rodriguez | Dr. Budgets
Becoming a dad is the most challenging, yet rewarding thing I have ever done. Although nothing could have prepared me for this experience (not even this blog post!), there are some things I wish I knew before becoming a dad. Below are the 7 things I wish I know before becoming a dad…
1) It’s Expensive. Yes, I did read the articles that state that raising a child until age 18 costs roughly one-quarter million dollars. Take a moment to let that soak in… having a child increases your expenses for the next 18 years by $1,200/month… per child! Get ready for some major adjustments! My wife and I didn’t have to move because we already owned a two-bedroom condo (so no extra housing costs… at least not until baby number two comes along), but child care, doctor’s visits, diapers, food, clothes, and general baby stuff has taken a chunk out of our budget. Oh, and this doesn’t include saving for college. So yes, having a baby is expensive! But would I do things differently if I knew this before becoming a dad? Absolutely not! Having a baby simply forced us to redesign our budget… we made it work. My business continued to grow, so I was able to give myself a “raise,” we cut down a bit on discretionary spending (this wasn’t too difficult because we had much less time to do the things we used to!), and we were also able to refinance our mortgage to a lower interest rate. We have made some adjustments, but being a dad has been worth every penny!
2) Your Schedule Shifts. Before becoming a dad, I was in the habit of starting my workday around 7:00am, and I would often work past 5:30pm. This changed very quickly! My workdays now start around 8:30am because I drop off my daughter at daycare every morning. My day now ends at 4:30pm because I also pick her up from daycare after work. Does this mean I am getting less done? Nope! I have been forced to accomplish more in a shorter timeframe. I have been able to shift my schedule to have more time off from my business, but paradoxically, less time for yourself because of all the added duties of being a dad. It’s all good though! Too bad I didn’t know this before becoming a dad… I could have worked less and spent more time playing!
3) Your Weekends Change. This one is very similar to my schedule shifting, but I thought it was important to mention it. Before becoming a dad, I would put in several hours of work on the weekends. Now I put in little (1-2 hours) to no time into working on the weekend. Does that mean I have more time on the weekends? I wish! My weekends are now spent caring for my lovely daughter with my wife. It is a different kind of work! Can it be exhausting? Yes! Is it amazing to watch her grow up in front of my eyes? Yes! Life is very different now on the weekends. Also, our social calendar now revolves around her nap schedule.
4) It’s Challenging, Yet Rewarding. As I mentioned at the beginning of this post, becoming a dad has been the most challenging, yet rewarding experience of my life. I have had more sleepless nights (and sleep interrupted nights) in the first year of being a dad than in my entire life up to this point. “Grumpy Daniel” has made several appearances. I have found it hard to function without much sleep (especially since I don’t drink coffee!). And as much as I love my daughter, caring for her takes up so much of my energy that I am often exhausted at the end of the day (although it has become easier as she has gotten older). There are also a million decisions that need to be made as a parent, which can be very taxing. But even with these challenges, I can’t imagine my life not being a dad. I love this little being with all my heart. I smile and laugh more than I ever have. And I get to experience the world anew through her curious eyes. My favorite part of the day is when I walk her to and from daycare. My little girl has literally changed my life for the better.
5) It’s Not Easy, But You’ll Figure It Out. I was so nervous before my daughter was born. I was about to step into the unknown world of fatherhood. I had absolutely no idea what to expect. I was wondering what I was getting myself into. I didn’t know anything about being a dad! Becoming a dad is not easy, but you figure it out… quickly. I was thrust into fatherhood on the very first day, so I learned fast… and I haven’t looked back! Every day seems to challenge me as a parent, but every day I figure it out… and I’m sure this will continue the rest of my life because I don’t think I will ever “figure out” parenting completely.
6) It Will Challenge Your Relationships. I don’t understand why anyone would have a child to save a marriage because of how much it challenges your relationships… especially the relationship with your spouse. Becoming a parent will test the best of marriages, but lucky for me, my wife and I built a strong foundation of trust and communication before having a child, so all the challenges we have faced together as parents have only strengthened our marriage. The relationship with my friends and family have also been challenged because I don’t have as much time to spend with them. I have made as much of an effort as possible to make time for them, but sometimes I fall short. Lastly, my dog has probably felt very neglected since my daughter was born since he is no longer the center of attention. Lucky for him, he gets to walk with my daughter and me to daycare every morning, and my daughter is slowly becoming his new best friend (especially when she throws food on the floor!).
7) It Makes You Want to Become a Better Person. The last thing I wish I knew before becoming a dad is that my daughter makes me want to be the best version of myself. When I met my wife, she was an inspiration to me to become the best version of myself. Now, my daughter has amplified that desire. She has inspired me to think about work/life balance so I can spend quality time with her. She has inspired me to focus on my health more so I can be in her life for a very long time. And she has inspired me to be the best possible version of myself so I can set a great example for her as she grows up. It has also brought a renewed focus to search within myself to discover what is truly important to me so I can live a life she can be proud of.
So, there you have it… the 7 things I wish I knew before becoming a dad. What are some things you wish you knew before becoming a parent? If you know someone who just had a baby or is pregnant and needs someone to guide them in adjusting their spending to accommodate, please have them contact us to schedule a consultation. Happy parenting!
- Published in Family
By Jeannie Rodriguez | Dr. Budgets
Daniel and I met in 2011. We knew right away that our relationship was special, so it might not surprise you to learn that we started talking about some pretty serious stuff early on: kids, marriage, and, especially, money (he is Dr. Budgets, after all!). Before too long, Daniel had looked at where I was spending my money and made some suggestions to pay down the debt I had been struggling to eliminate. Dr. Budgets was founded about 1½ years after we met*, and so that makes me Dr. Budgets’ first client! As the “OG” client of “Dr. B,” I have some insights to share 🙂
Dr. Budgets has had many success stories… Clients have done amazing things! But, after you accomplish your financial goal, what comes next? Can anything top the feeling of paying off the debt that has been weighing on your shoulders? The answer is YES! What comes after paying off your debt is EVEN BETTER. If you stick with your spending plan, the accomplishments that follow continue to add to your overall sense of well-being. Maybe what I’m trying to describe is best said in a previous blog post:
“I soon realized I wasn’t worried about money at all. I never need to worry because we have automatic payments and buffers, and anything I need or want to buy is accounted for in the budget.”
Can you imagine that? Not having to worry about money? Let me tell you, it’s a beautiful thing. It took some work to get here though. First, I had to learn to live without my credit cards to pay off debt. Then, I had to learn to spend within my (and, eventually, our) spending plan. I also made some lifestyle changes to pay off my debt even faster, including renting out a room and getting a side gig to earn money on the weekends (but I was able to let go of both of those after I paid off my debt).
Now that I’m on the other side of debt and well into my “coaching” with Dr. Budgets, I can say my feelings about money have never been better. For example:
- I love my job, and I continue to love to work after having our daughter. But it’s nice to know that I don’t have to work at my job if I didn’t want to work anymore. I’m not a slave to my job, and I think that makes me love my job even more! Life is too short to hate what you do.
- I love our home, but it’s not our forever home. We’re working toward buying our dream house – not just a “it’s bigger than what we currently have and we need the space so we’ll take it” house. We’ve talked about amenities and location, and it’s within reach. I can actually see our daughter happily playing in the backyard of our future home. Paying off debt felt good, but debt is the past… Now, we’re working toward our future.
- We live in uncertain times and sometimes I’m nervous about the future. When I was in debt, I was VERY nervous about the future because I was one emergency away (car breaking down, a trip to the ER, losing my job) from being in a financial crisis. When I paid off my debt, I was able to create a financial safety net. Having savings gives me a sense of security.
Those are just a couple of examples of how life is better after paying off debt. But, besides these incredible side effects, what comes next after paying off debt? Here are some ideas, from Daniel:
Evaluate your spending plan. You’ve likely had a line item for debt repayment that can be re-directed. Determine how much of that you want to go into savings and other items in your budget. Maybe you want to give yourself a little breathing room in discretionary spending, or maybe you’ve become very comfortable with your spending plan and can put that money entirely toward your next financial goal.
Celebrate! You’ve accomplished something remarkable! Take a moment to acknowledge your sacrifices and reflect on your achievement. Set a budget and treat yourself to something to celebrate… you deserve it!
Create or Increase Emergency Savings. If you were able to put money toward emergency savings while paying down debt, that’s great! Maybe beef it up a bit to cover a longer stretch of time (6 months instead of 3 months, for example). If not, creating an “emergency savings” or “short-term savings” account should be your first priority.
Set your next financial goal. Get excited about your next financial milestone! Do you want to take a debt-free vacation? Save for a house or buy a new car?
If you’re working toward a financial goal, such as paying off debt, good for you! Keep it up! If you aren’t (but know you should), you may not have realized all the wonderful things that come along with achieving your financial goals… hopefully, this will help motivate you to get started! As always, if you want help please contact Daniel for a complimentary consultation – you have nothing to lose!
*Fun fact: I came up with the name Dr. Budgets… It’s a play on Daniel’s initials “DR”
- Published in Debt
By Daniel Rodriguez | Dr. Budgets
Being in the honeymoon stage after getting married is an exciting time! You’ve just committed to your partner and are starting your lives together. This new life together might mean moving in together, figuring out how to pay for your wedding debt, taking on new joint expenses, or preparing for some big expenses in the near future (buying a house, having a baby, etc.). This may lead to some stress around money. I enjoy working with lots of couples, so I thought I would share these 5 things you must do after getting married to help ease the stress of mixing marriage with money:
1) Combine to Save. Marriage has several financial advantages, especially when combining certain expenses. One big one that I have seen with clients (and in my own life!) is health insurance. If the person you are marrying works for a company with a great health insurance plan, then you could save hundreds, if not thousands, of dollars per year. After you get married, make sure your spouse adds you to their health insurance plan so you can reap those benefits. Often, there is a short window (30 days) to do this, so make it a priority after getting back from your honeymoon. Another area where you can save is auto and home/renter’s insurance. There is often significant monthly savings when you are both on the same auto insurance policy. And while you are at it, you can bundle your auto and home/renter’s insurance policy to save even more! Talk to your insurance professional after you get married (or even before if you live together before marriage) to determine if you can save some money on your insurance. There are many other areas where you could combine to save, for example, combining your cell phone plans, Netflix accounts, Costco memberships, or Amazon Prime memberships, so take a look at your particular situation to eliminate any overlap you have in your expenses.
2) Plan to Pay Off Debt. A survey of 1,010 randomly sampled newlywed couples found that entering marriage with consumer debt has a negative impact on newlywed levels of marital quality. The study also found that the large majority (70%) of newlyweds in this study brought debt into their marriage relationship. So, does this mean you should wait until you have no consumer debt to get married? Of course not! But you should come up with a plan to pay off that debt together as soon as you get married. And once you have that plan, stick to it! I have seen the huge impact that debt has on couples and their relationship, and I’ll tell you this: the couples who pay off their consumer debt seem happier. So, come up with a debt repayment plan together after you get married, and then say goodbye to consumer debt for good!
3) Merge Your Finances. There is no right or wrong answer on whether to merge your finances after marriage or not – every couple is different (for more on this topic, read Merging Your Finances After Marriage). The key is to have an open and honest conversation about money and your financial goals so that you can then work together to achieve those goals. When it comes to merging finances, I usually suggest using a joint account as the central account for a couple, which means all the income flows into that account and then common expenses are paid out of that account (mortgage/rent, utilities, auto expenses, groceries, insurance, etc.). But also…
4) Separate Your Finances. So, once you have a joint account as the central account for income and expenses, then I like to create separate accounts for each person which gets funded every week, two weeks, month (whatever works best for the couple) with their allocated “allowance” that they can spend on whatever they want. This allows each person to have some “fun” money without having to consult with the other person. In my marriage, we do this, and it is nice to be able to buy a gift for my wife from my personal account… it feels more like a gift from me when I’m using my “own money” for that. Here, again, you should have open and honest communication about what is a fair amount for each person to receive as their “allowance.” In my household, my wife gets more every week than I do, but we both agreed on that amount. Side note: if you own a business, be sure to keep a separate “business” account for all your business income and expenses, and then transfer your “salary” to your joint account (more on that here: 4 Money Tips for Small Business Owners).
5) Start a Joint FUNd. Once you have done the first four things you must do after getting married, hopefully, you have some money left over for fun! I like the idea of a FUN Fund (or FUNd for short) as a short-term savings account for joint experiences. Research has found that people who spent money on experiences rather than material items were happier and felt the money was better spent. Use this account to save for joint experiences, special occasions, stay-cations, travel, etc. When you spend this money on yourselves, you can spend it “guilt-free” because you know this money is for FUN!
Getting married is such a joyful occasion, and hopefully following the 5 things you must do after getting married in this post will help continue that happiness deep into your marriage. If you know a couple who is about to get married or just got married and wants a personalized plan on how to do any of this, please have them contact us to schedule a consultation. These are my five financial tips for newlyweds. Do you have some other ones? If so, please let us know in the comments section below.
- Published in Love and Marriage
By Daniel Rodriguez | Dr. Budgets
Life is short. Recently, I have been in a reflective mood because that has become very apparent to me. I started thinking about my life and whether I was living it the way I truly intended. The Dr. Budgets tagline is Spend Wisely. Live Wealthy.™, so I started thinking about it in terms of spending my time wisely to live wealthy because time is finite, and you can run out of it at any moment. Dr. Budgets takes a lot of my time, and I asked myself “Is it time well spent? Why am I doing this?” After much reflection, it turns out that I have a true passion for what I do, so I dug a little deeper to figure out why. Why am I so passionate about what we do at Dr. Budgets? I could help people in a variety of ways, so why money coaching?
The story of why I am so passionate about what I do for others through Dr. Budgets starts with why I do it for myself. My parents were divorced when I was very young, so I never knew anything different than having divorced parents. From the time I started school, I would be with one parent during the week and the other during the weekends, and every so often it would switch, which meant I would then switch schools (1st grade with my dad, 2nd-4th grade with my mom, etc.). When I was 12 and heading into 7th grade, my dad ran into hard financial times… his business failed, so money became very tight. My mom wasn’t making very much either, but she made it work while she was attending school at UCSD. To make ends meet, my dad decided to move to Rosarito, Mexico, which meant that for 7th grade I was going to switch schools again, but now to a different country. We also moved to a very poor part of town, so the house we lived in had no hot water (bathing in the winter was torture), broken windows, and was bug infested. Luckily, we always had food, but sometimes it was rice, beans, and tortillas several days in a row. This transition was very hard for me as a 12-year-old boy, and I would look forward to going to my mom’s house on the weekends… a house with first world amenities, like hot showers! After I finished 7th grade, my dad moved to Tijuana, Mexico where I attended 8th and 9th grades. The place in Tijuana was in an even poorer neighborhood (we now lived in an RV on somebody else’s property and used an outhouse). Those were the hardest three years of my life, and I believe those years shaped the view I have of money and the world to this day.
I realized that the reason I choose to spend my money wisely is so that I never end up in the same financial predicament as my dad. Being free of debt and having money in the bank gives me comfort and the freedom to live how I choose to live, and it means that I (or my kids) never have to live the way I did for those three years. I carry that same passion for finances to my clients because I want them to have the freedom to choose how they want to live, and to never have to face the type of decision my dad had to make. I see so many people who are slaves to their jobs because they are living paycheck-to-paycheck. I want to change this so that they feel like they have a choice to be whom they want to be and do what they want to do.
Life is too short to live otherwise, so that is why I started Dr. Budgets.
That is why every person who transforms their habits because of the money coaching they receive equals a better life for them, and maybe also for their children. Which means their children will never go through what I went through.
So that is why I do what I do. Why do you do what you do? I would love to hear your story. Please share it with me in the comments section below! If you know someone who is ready to improve their spending habits, please have them contact us today. Thanks for reading!
- Published in Health and Wealth
By Daniel Rodriguez (Dr. Budgets) & Scott Elliott (Kool Body Personal Training)
This month we are doing a joint blog post with Scott Elliott with Kool Body Personal Training. We are each sharing our perspective on 5 Ways Healthy Habits Save You Money from a health and wealth standpoint. Here are the five habits:
Eat Your Breakfast
Scott: Most of us are in such a rush to get out the door and to the office, that we often neglect breakfast. Instead of eating breakfast, we opt for coffee and perhaps add a carb to that. Eating breakfast will bring you a sustained boost of mental and physical energy. Skipping breakfast leads to adrenal crash; which we then artificially support with caffeine. The saying “Breakfast is the most important meal of the day” has a lot of truth to it. As you sleep, the cortisol hormone increases, which put us into REM (deep) sleep. When we wake up, the cortisol levels continue to rise and will eventually begin to put stress onto our adrenals. The only way to level out this increase in cortisol levels is to eat a balanced breakfast. This simple act will increase our mental and physical energy throughout the morning, with no mental crash.
Daniel: Breakfast in the morning can be something as simple and inexpensive as eggs and whole grain toast, yogurt with granola, or a smoothie (my wife makes amazing smoothies in the morning!). This daily “breakfast ritual” can save you thousands of dollars over time compared to stopping at Starbucks for “coffee and a carb.” If you still need the caffeine fix, you could brew your own coffee at home (which is often better than Starbucks anyway) and enjoy it on your way to work.
Schedule Your Workouts
Scott: Studies show that regular exercise will help reduce the number of sick days you take by stimulating and strengthening your immune system. Regular exercise also reduces the risk of illnesses such as type 2 diabetes, obesity, and heart disease. The quote “Failing to plan is planning to fail” by Alan Lakein, highlights the importance of scheduling your workouts. Once scheduled, make sure they are a priority, like meetings for work. Make your workout time a non-negotiable appointment on your calendar.
Daniel: Consistent exercise will actually make you money because of the fewer sick days you will need to take. Depending on where you work, you could then use those unused sick days for something fun like a vacation or cash them out at some point. If you are self-employed, then that means less time away from your business, which means more money. Looking at it from a long-term perspective, if regular exercise prevents diseases such as type 2 diabetes, obesity, and heart disease for you, then that will save you thousands (if not hundreds of thousands) of dollars in medical bills. Additionally, a monthly gym membership is only a waste of money if you don’t use it! If you schedule your workouts, whether at the gym or with a personal trainer, you’re making the most of the money you’re spending for those services.
Scott: Daily meditation will calm our brain, bring inner peace, and therefore, more focus and productivity to your job. Due dates, unexpected problems, or even mental fog all strip away the clarity and focus that we need to succeed in our daily tasks. Set aside 5 minutes each day to sit upright, close your eyes, and focus on your breath. Each time your thoughts drift, bring yourself back to your breath, training your mind in the art of self-control, focus, and peace.
Daniel: Consistent meditation can lead to reduced stress, which can save you money in countless ways. If stress leads you to overeat, then meditation can save you money on food expenses. If stress leads you to shop to make yourself feel better, then meditation can save you money by preventing you from buying unnecessary things. If stress causes you to drive fast which leads to a speeding ticket… you get the point 🙂
Scott: According to a 2014 Stanford Study, you can boost your creativity up to 60% by adding short bursts of activity throughout the day. Step away from the computer for a minimum of 3 minutes at a time and walk up a flight of stairs or take a walk outside. In addition, you will curb your levels of anxiety and depression allowing you to handle stress much better; stimulating your mood so you can get along with your co-workers and boss much easier.
Daniel: An increase in creativity can definitely make you money in the long-run. If you work for somebody, that could mean a faster promotion or a pay raise sooner. If you work for yourself, then an increase in creativity can lead to increased income ever more rapidly if you apply it in a way that makes you better or more efficient at what you do.
Surround Yourself with Like-Minded Motivated Fitness People
Scott: Working out with someone (or a group of people) will not only increase your level of accountability, but there is also a strong possibility of making new business connections, as you sweat it out with like-minded fitness people. You are all there putting in a strong effort to stay healthy, which will lead to a mutual level of respect for one another. Those are definitely people worth getting to know.
Daniel: Anytime you connect with like-minded people there is a good chance you will each benefit from that relationship. If you own a business, maybe one of those people becomes a client, which would lead to more revenue for your business. If you are an employee, maybe one of those people connects you to a job opportunity when you need it. Connecting with people who share similar goals and interests with you can lead to many rewards beyond money as well.
We hope you enjoyed our post on 5 Ways Healthy Habits Save You Money! If you want to learn more about Kool Body Personal Training, you can contact Scott at email@example.com. If you want to learn more about Dr. Budgets, visit our home page or contact us.
- Published in Health and Wealth
By Daniel Rodriguez | Dr. Budgets
When it comes to budgeting, I don’t do budgets in the traditional sense. What I mean by that is that I don’t do budgets that feel like “I’m on a budget.” Budgets seem to have a bad reputation, and the way many people budget, rightfully so. January is the wonderful time of New Year’s Resolutions, and many people resolve to finally get their finances in order. They set out to pay off their debt, save some money, and put themselves in a position where money isn’t a source of stress and anxiety for them anymore. To do so they put themselves on a budget (what I like to call a “crash budget”), which ends up feeling very restrictive because they decide to not spend money in the areas that are important to them. They literally take the “fun” out of their budget. This is a recipe for failure, which is why I don’t do budgets.
The alternative to this is to create a healthy spending plan, which is different because you start with your goals and then set realistic parameters about where to spend your money. This allows you to balance out progress toward achieving your financial goals and spending money on what you enjoy. Instead of “being on a budget,” you use a spending plan that guides you and motivates you to gradually modify your behavior to the point where you are spending less than your income. That sounds simple, right? It is definitely simple, but not easy to implement, which is how I have been able to build a business around this concept. The amazing thing is, though, once you consistently spend less than you earn, magical things happen… debt starts to disappear, checking and savings account balances begin to increase, and the stress and anxiety you feel about money start to melt away!
The way most people budget usually doesn’t work for a sustainable period of time. A healthy spending plan when constructed properly and applied consistently over the years can create lasting healthy spending habits, which then naturally leads to the achievement of your financial goals.
John Maxwell said it best: “A budget is telling your money where to go instead of wondering where it went.” When you create a healthy spending plan (the budget I believe John Maxwell is referring to in his quote), then you are in control of your financial destiny. You consciously decide where your money will be spent rather than wondering what happened to all the money you earned over the years.
So that is why I don’t do budgets. Instead, I create healthy spending plans. This, in turn, allows me to transform my clients’ lives. If you know anybody who has a financial New Year’s Resolution, please have them contact us so they can finally achieve their goals this year. Happy New Year!
- Published in Spending Plan
By Daniel Rodriguez | Dr. Budgets
It can be easy to get caught up in the spirit of the holiday season… going into credit card debt of course! Kidding aside, it is very easy to overspend during the holidays because we are in a generous mood, and it seems like every company in the world is trying to get us to spend our hard earned money. This is probably why 37% of people said that going into debt is one of the top 5 causes of holiday stress. It doesn’t have to be a stressful time if you put some thought into it ahead of time and set some parameters for yourself. Below are four things you can do to give wisely this holiday season.
Make a List. It’s amazing how powerful it is to make a list before you go gift shopping for the holidays. I recommend you make a list that includes everyone you are buying a gift for and the amount you plan to spend per person, then add it up. If the total amount is too much, then make some adjustments before you start buying presents.
Don’t Use Your Credit Card. If you only use cash or your debit card this holiday season, then it will be very difficult for you to get into credit card debt. Think about it… do you really need to go into debt to buy things for the loved ones in your life? Is there a way for you to be more thoughtful about your giving and at the same time spend less? The people who truly love you probably don’t want you to be stressed out about your credit card debt.
Give What They Want. Give to the loved ones in your life how they want to be given to. You have to know your audience when you are giving. For example, my wife and I took the Love Languages test and ranked “Receiving Gifts” very low, so showering each other with gifts isn’t the best way to express our love for each other. Instead, we are able to show each other we care in more meaningful and affordable ways. Be very mindful of how to express your love and appreciation to the people in your life… sometimes you don’t need to spend a lot of money for them to know you care.
Charitable Giving. If you are giving money to charity, ensure that most of the money you are donating actually goes toward the cause they are supporting (this article can help you). Also, if you can donate and receive a tax deduction as well, even better! My wife and I give the things we don’t need to Goodwill, which gives us a nice little tax deduction every year. Lastly, check to see if you can get your monetary donation matched to double your contribution (sometimes companies have programs where they do this).
These are just a few tips on how to give wisely this holiday season. If you have some other tips, please share them with us in the comments section below. If you know somebody who went into credit card debt because of their holiday spending, and now needs some direction on how to pay it off, put them in touch with us. Happy holidays!
- Published in Spend Wisely
By Jennifer Rosson for Dr. Budgets
This month we are excited to have Jennifer Rosson as a guest blogger for Dr. Budgets sharing her tips on shopping smart! She is a true expert on shopping. To learn more about Jennifer, check her out at styleyourlifeblog.com. Here are her five ways to save money on your wardrobe…
1) Take a good look at your closet before you shop!
Most people tend to purchase the same type of items again and again… I call this your “uniform”. Because of this, your wardrobe isn’t as adaptable as it should be. What items could you add to grow your wardrobe and make it more versatile? Make a list of these items and look for them when shopping.
2) Think about your Cost Per Wear.
Keep this very simple formula in mind when shopping!
You take the cost of the item and divide it by the number of times it is worn, adding in any maintenance cost (dry cleaning, laundering tailoring).
- Dress on clearance $19.99
- Wore it once (1)
- Dry-cleaned ($5)
- $19.99/1+$5= $24.99
Cost per wear = $24.99
- Designer Jeans $189
- Wear it once a week for 12 months, 52 wears
- washed every other wear $1.00
- $189/52 +$.50 = $4.13
Cost per wear = $4.13
So sometimes those “deals” aren’t really deals at all. Think about this next time you are shopping 🙂
3) Consider shopping consignment.
I love consignment shopping. Find a credible consignment store that carries higher end items. This is a great way to pay up to 70% less on designer and contemporary brands. Closely check for any flaws, fading, etc. because these stores often have a final sale policy.
Two I recommend: The Real Real (online) and My Sisters Closet (San Diego)
4) Shop sale sections.
Okay before you say yes, of course, that’s obvious….
Let me clarify. Shop sale sections at high-end stores and shop with your list (from #1). Many people shop sale sections; the difference is shopping them with direction.
Shop sale sections in stores a level above where you’d typically shop. Why? Because you can get higher quality pieces for the same price you typically pay. Let’s say you typically shop at Banana Republic and you are willing to pay $150 for a dress. Well then head on over to Bloomingdale’s sale section and I assure you will find a higher quality dress for around the same price.
The second thing to keep in mind when shopping sale….
USE YOUR LIST!!! It is not a bargain if you don’t need it!!
Remember cost per wear?
5) Don’t shop out of desperation.
We’ve all been there, you have an interview or event and you have nothing to wear. You rush out the day before and purchase something to get you by. You settle because you couldn’t find something you loved. The result: you don’t feel fabulous at your event because you don’t love your outfit and you will probably never wear it again.
How to you avoid this happening to you? You know your lifestyle, you know what types of events, presentations, and interviews you have in a typical year. When you see a piece of clothing you love and you know you’ll have an occasion to wear it, buy it then! Don’t wait till you have the specific event. The event will come believe me and you’ll already have the perfect piece hanging in your closet!
- Published in Spend Wisely