It's Cheaper In New York.

The cost of living in New York City can be painful- sky high rents and a premium on just about everything from groceries to toiletries.  But there are some exceptions.  Instances when things are actually CHEAPER than the rest of the country.  So look on the bright side and enjoy!

Pizza. 99-cent pizza slices.  Enough said.

Mani/Pedi.  I’m no spa aficionado but I do know you can find mani/pedis in Manhattan for $20.  Maybe it’s the stiff competition between the countless salons in a few blocks radius.  If you can pop in when they’re offering their specials, you’re bound to get a better deal than you would out in the “burbs”.  Here are a few recommendations.

-       Enjoy Nail Spa- Kips Bay ($20 mani/pedi, all day, every day)

o   148 E 28^th St (b/w Lex &3^rd)

-       Kh Midas Nail- Chelsea ($20 mani/pedi, Monday-Wednesday)

o   203 W 14^th Street

-       Top Beauty Spa- East Village ($25 mani/pedi with mini neck and shoulder massage, Monday-Thursday)

o   192 2^nd Ave (b/w 12^th & 13^th)

Transportation.  Rarely have I encountered such a comprehensive public transportation system as I have in New York City.  As much as the MTA pisses me off sometimes, I have to say, the fact that I can get just about anywhere in NYC for $2.50 is pretty amazing.  [I didn’t really appreciate this till I went to LA and found it would cost me a $50 super shuttle ride to get to my hotel, as there was no public transportation option.]

Lunch.  While dining out in New York can be absurdly expensive, the lunch specials are some of the best I’ve seen.  My personal favorites are the Thai restaurants on 9^th avenue (in midtown), all trying to “out value” each other.    I can go have a sit down lunch (appetizer included), great atmosphere, tax, and tip for $10 out the door. 

Museums.  New York not only has some of the greatest museums in the world, they’re also accessible to people on any kind of budget.  While some museums offer free or “pay what you wish” days or nights, the following museums are always “suggested donation”- meaning you can pay as much or as little as you want. 

-       Metropolitan Museum of Art.

-       The Cloisters.

-       American Museum of Natural History.

-       Museum of the City of New York.

-       Brooklyn Museum.

-       Queens Museum of Art and the Panorama.

-       Museum of the Moving Image.

-       P.S. 1 Museum of Contemporary Art.

-       Fire Museum.

-       Police Museum.

-       Studio Museum of Harlem.

Entertainment.  The amount of free and cheap entertainment in New York City is mind-boggling.  Yes, there are the ridiculously expensive tickets to MSG Concerts and Broadway shows, but there are also opportunities you won’t find anywhere else like standing room tickets, rush discounts, nightly showcases by musicians at bars on the lower east side, performances at churches and schools around the city, free concerts and theatre in Central Park, and free tapings for popular shows like The Colbert Report and Letterman.

Public Freebies.  Take advantage of all those city taxes you pay.  Visit the parks, take a ride on the Staten Island ferry, and attend the free movies, classes, and exhibitions.  Check online for weekly updates at www.nycgo.com/freeweekly or www.nycgovparks.org/events.

Cheap Fun: Clothing Exchange

I’ve been doing a little pre-emptive spring cleaning in the new year and coming across so many clothes I just don’t wear.  Not just old, raggedy clothes, but nice, quality shirts, pants, and dresses that just never seem to make the final cut when it’s time to get dressed and head out. 

After having failed at my first attempt at selling items on eBay and not having the energy for craigslist I found myself in a bind.  I wanted to get rid of the things I wasn’t wearing, but I also wanted some kind of return.  After all, some of the clothes still had tags on them!

Well last weekend I found my answer.  I participated in my first ever clothing exchange party.

My girlfriends and I met up, each with our respective bags of “reject” outfits.  We proceeded to go through each article of eachother’s clothing one by one, trying things on, deciding what to keep and what to give away. 

I had arrived with two bags of clothing  and by the end of the night I’d say about 75% of those items had been claimed by others.  I also walked away with a full bag of new outfits.  [Many of which I’ve already worn this week.] And everything that went unclaimed got donated at the end of the night.

It was the perfect solution.  Exchanging AND donating.  Cost effective AND humanitarian.  Not to mention, the night itself was a total blast.  Drinking wine, trying on clothes, and friendly fighting over who gets to claim that fabulous blue dress or pair of brown boots.

Broke and... Single.

When you go from years of “us” to being on your own, it’s not just your personal life that changes.  Splitting the cost of bills, nights out, gifts for friends, and general life expenses suddenly become a huge one woman (or man) responsibility.  Cheap nights in spent cuddling on the couch and sharing a bottle of wine turn into expensive nights out in an attempt to socialize and not turn into a depressed, lonely hobbit.

So how can one be single and social without going broke?  That’s the question I’ve been exploring the last few weeks and here’s what I’ve found.

Share your story.  Everyone feels like poo after a break up, but it’s important to remember how many people love you.  Be open with your experience and those people will do everything they can to get you back on your feet.  A place to stay.  A warm dinner.  A drink.  Someone to talk to.  Enjoy and appreciate the love.

Be honest.  It’s weird to lay all your shit on the line the first time you go out with someone new, but if you want to date, and you’re pinching pennies, you have to be honest and up front about your financial situation.  Within the first two or three dates make it clear that you’re all for having a good time, but regular nights out of drinks, dinner, and a movie aren’t in your budget.  Brainstorm cheap things you can do together.  Not only might you discover something new and exciting, but you’ll lay a groundwork for your financial expectations going forward.

Coordinate.  Take on the role of social coordinator.  Instead of following friends to expensive bars and restaurants, be the one to make the plans.  Organize a potluck or host a game night.  If you want to have a night out, see if you can find a groupon, livingsocial deal, or restaurant.com discount for your favorite nightlife spots.

Cut yourself some slack.  As anal as I am about budgeting, there are times I just need to take a breath and treat myself.  I don’t want to make a habit out of it, but I’m not going to let my finances stand in the way of my happiness.  If you need a massage or a fancy night out with a friend or an elaborate, romantic date, go for it.  Just remember to keep track and make sure it’s not becoming a regular overindulgence.

It turns out single can be exciting, fun, and affordable too.

How I Started Choosing Stocks: A Clueless Novice’s Approach

While I tend to think of myself as being uber responsible and careful with my money, I’m strangely not overly cautious when it comes to my stock picks.  Thus far, it’s all worked out pretty well for me.  I’ve had anywhere from an 8%-25% return on my individual investments over the course of this past year.  Of course, my luck may change at any time, but I’ve got myself in the game, and that’s what I’m most proud of.

Like many of my fellow broke beauties, I was intimidated by the market. Let’s be real, I still am.  But I knew enough to know that my chances of growing my money were way better in the stock market than in the absurdly low yielding checking and savings accounts the banks were offering.  So after contributing the requisite amounts to my savings, checking, and retirement accounts I decided to set aside some “experimentation funds”.

I opened an account at a brokerage with $1,000 and decided to split that money between two stocks.  $1,000 was as an amount I could “afford to lose”.  Like the money you walk into the casino with.  In truth, I’d be devastated if I lost $1,000, but I know it’s an amount that won’t destroy me and it’s enough to get my feet wet in the reality of the market. 

So onto the stock picks.  I wanted to invest in companies whose product I used, whose message I supported, and whose potential for growth I could visualize.  I thought about the products and services I use every day and the brands I’m loyal to.  I settled on Amazon (AMZN) and Whole Foods (WFM).  I looked up their ticker symbols and saw they were both priced near their 52 week low.  With totally random, unscientific reasoning I decided they must be a good deal and bought my respective shares of each.  Like I said, not overly cautious but it got me started. 

Just by having my own money in the stock market, my desire to read and learn as much as I could grew ten fold.  I found new ways to save and cut back expenses so I could set more aside and use my newfound knowledge from books, articles, and blogs about the maket.  All of the sudden, just by experimenting with $1,000, I was not only invested in stocks but in the reality of my financial future and my own financial education.  I put aside more money for savings, more for retirement, and more for my stock portfolio. 

There is an attitude of “I’ll figure it out later” or “someday” with the young and broke when it comes to investing.  And while stocks will often dip and sometimes fail, I think the real mistake is not getting involved at all, especially when time is on your side.

I went on to buy Facebook (FB) at around $21/share this summer.  It dipped to about $17/share in the fall and stayed there for a while.  Now it’s around $30/share.

My AMZN, which I bought last year around $185/share, is now up around $270/share.

My WFM was around $85/share when I bought it, it went up to about $100/share this summer, now it’s back down around $88/share.

My recent purchase of Apple (AAPL) at about $535/share is down around $503/share now.

While I’ve been weathering the ups and downs of each stock, I’m not stressed.  I believe in each company I hold.  I’m not running to ditch AAPL or WFM.  I’m 26 years old, I’ve got plenty of time for those shares to rise.  What’s important to me is that I’ve made the decision to face the reality that is my finances by getting started and learning everything that I can to make my money work smarter, so that I don’t have to work harder and longer.

Start trading. Start learning.  Start earning.

https://www.tradeking.com/node/30195?ADTRK=sr-RAF90-t-05dhkod08clmf

Resolving to Save

Did you resolve to save more money in the New Year?  It’s a common resolution.  It’s also common for people to break their resolutions.  Chose to succeed by committing to your financial goals and following some simple savings strategies.

1.    Track your spending.  I’ve said it before and I’ll say it again.  Until you see how you’re spending, you won’t be able to assess how you can cut back and save.  Write down every purchase, every penny.  You can use a spreadsheet, your phone, fancy financial software, or the back of a napkin.  As long as it’s all in one place for you to see, you’ll be able to get a picture of your spending; what’s necessary, what’s not, where you’re overspending, etc.

2.    Make a Plan.  Be specific.  How much do you want to save this year?  Divide that number by 12, that’s how much you have to save each month.  Once you’ve tracked your spending you can decide where that money is going to come from.  If it helps, break it down even more.  Divide it into weeks, even days.  Saving an extra $3,000 a year may sound daunting, but when I break it down to $8.22 a day, it’s a number I can manage.  Packing lunch and skipping Starbucks.  Done.

3.    Substitute New Behaviors for Old Ones.  It’s all easier said than done.  I can sit at home writing out the perfect plan, but unless I can put it into action on a daily basis it won’t do me any good.  Beware of habits.  The daily purchases you make just because they’re the purchases you’ve always made, things like coffee and lunch are probably the most common, but also things like water, cigarettes, snacks, drinks, etc.  If you find a recurring expenditure when you track your spending, figure out if there’s a way you can cut it out, replace it, or reduce the cost.  Know exactly what new habits or routines you need to establish to make these new changes.  For example, getting up early to pack lunch instead of buying out or scheduling potlucks instead of meeting friends out for drinks and dinner.

4.     Pick a Cause for your Savings.  There are times when going out for drinks after work or ordering takeout will sound unbelievably tempting.  Breaking the routines and habits of spending on the little luxuries will be difficult.  To help you stay focused on your larger goals, pick a cause for your savings.  My extra $3,000 (or whatever number you decide on) in savings this year is going to help me buy my first home, or set me free from student debt, or allow me launch my new career.  By attaching a relevant and personal dream to your savings, you will give your goals the meaning and urgency you need to trump short term, fleeting desires.

5.    Track your progress and go public.  Acknowledge your successes.  Measure how far you’ve come and let it get you psyched to save more.  Share your progress with family, friends, and social media.  The more you put it out there, the more accountability you’ll develop with yourself and others to stay committed to achieving all you’ve set out to save.

May it be a prosperous and successful New Year!

5 Quick, Cheap, and Easy Holiday Gift Ideas

Stumped for gift ideas?  Strapped for cash?  Here are 5 simple, practical, do-it-yourself gifts you can have ready in time for the holidays without breaking the bank.

1. Homemade Body Scrub.

Skip the overpriced bath and body stores and stop by your local grocer to pick up a few key ingredients.  Mix it all up in some mason jars from the thrift store, wrap it in a bow, and you’ve got a great, practical, and long lasting gift for anyone.

Here’s a sample recipe.

2.5 cups sugar in the raw

¾ cup white granulated sugar

4-5 tablespoons of vanilla, almond, OR orange extract

¼ cup almond oil

2. Ready Meals: Pasta in a Pot, Breakfast in a Basket.

It’s all about the presentation.  Grab some festive trimmings, a few basic ingredients (ex. dried pasta, jar of sauce, block of cheese), and throw in a basic kitchen tool (ex. pot, grater) and you’ve got an adorable holiday feast.

3.  Teacup Candles

Pick up an assortment of tea cups from the thrift store and melt down some old candles on your stove.  Paste a new wick to the bottom of each tea cup and fill them up with the melted wax for a pretty, unique, and practical present.   

4. Bread (or brownies or cookies) in a Bottle.

Layer the dry ingredients of your favorite baking recipe in an empty milk bottle or mason jar.  Paste on a cute label and directions for baking and you’re good to go.

5. Garden Kit.

There’s nothing like having fresh herbs for my cooking year round.  Give the gift that keeps on giving with a small planting pot, a bag of seeds, and a pair of gardening gloves. 

Happy Holidays!

SEASONAL SPENDING: The "Giving" Account

When people budget, if they budget, they generally think about their expenses on a monthly basis- rent, transportation, food, cable, insurance payments, etc.  What they often fail to do is take a step back and consider major annual events that change spending in certain months or times of year.  The best example is the winter holidays.  Sure, you can just charge all your holiday expenditures on credit, but do you really want to spend the first weeks and months of the New Year paying off a couple frantic days of shopping in December? 

What I’ve done in the past few years is set aside 5% of my paycheck in a separate account for “giving.”  That 5% applies to every paycheck I receive.  While I pull from this 5% throughout the year on birthdays, Mother’s Day, Father’s Day, etc- I know that come December there needs to be enough to account for all of my holiday shopping.  Around Thanksgiving I can take stock of how much is left in my “giving” account and budget my gifts appropriately.  Some years are better than others and that’s ok.  Some times you have to opt out of a workplace “Secret Santa” to get your parents that something special for Christmas.  But if you’ve been saving all year with the big holiday in mind, you’ll know exactly where you stand come December.

As with savings accounts and retirement accounts it may be easier to set up a separate “giving” account at your bank and have that 5% automatically deducted from each paycheck and put into the account.  The less you have to deal with the money, the less likely you are to spend it prematurely.

Now if you’re truly feeling broke, feel free to adjust the percentage as needed.  Contribute 1% or 2% of each paycheck and spend the rest paying down your debt or building up that emergency fund.  No matter how dire the situation, I encourage you to put down SOMETHING, just so when the time comes, you’re not racking up more high interest debt on another credit card.  Your spending limit is strictly set by what’s in the “giving” account.

While you shouldn’t spend a penny more than what you’ve saved in the “giving” account, feel free to spend less.  Use the extra money to contribute to your 401k or make an early payment on your mortgage.  Also consider events at the start of the coming year.  If you clear out everything in December, there won’t be much to give in January.  Lastly, “giving” doesn’t only apply to your nearest and dearest.  Charitable giving and donations also come out of this account; so if you’ve had a good year, maybe share some of the excess with those in need.

Happy Giving!