Tuesday, December 30, 2008
Medicare Supplement Advice
For those lucky enough to be on Medicare and have a prescription supplement, there is available LIS,(low-income subsidy) that can greatly decrease ones monthly premium for said supplement and the amount you pay for generics and brand names. For info, visit http://www.medicare.gov/ or by calling 1-800-MEDICARE, to learn how to qualify. (A thank you goes to Bill and Nancy Jones for sending in this advice.)
Saturday, December 27, 2008
Discussing finances with the Family
Today's Wall Street Journal's Intelligent Investor discusses how and when to discuss finances with the children. Honesty, within reason, is the best policy when the kids are involved. Even when the news is less than rosy.
Keep family life as consistent as possible. Emphasize familiarity, continuity and the comfort of simple routines, such as meal and bed times. Stability reassures all that some things will remain within family control.
Be forthright. Don't let the kids overhear your discussions or hear about layoffs or other set backs from others.
Don't hide changes that might disrupt the family routine. Reassure your children that job or school changes, home downsizing, and other major events won't change your family values. Get the kids involved in brainstorming money saving ideas. Have everyone prioritize what are important to the family.
Keep family life as consistent as possible. Emphasize familiarity, continuity and the comfort of simple routines, such as meal and bed times. Stability reassures all that some things will remain within family control.
Be forthright. Don't let the kids overhear your discussions or hear about layoffs or other set backs from others.
Don't hide changes that might disrupt the family routine. Reassure your children that job or school changes, home downsizing, and other major events won't change your family values. Get the kids involved in brainstorming money saving ideas. Have everyone prioritize what are important to the family.
Monday, December 22, 2008
Supermarket Psychology
I found the following article on supermarket psychology at http://www.pickbrains.com./ A lot of thought goes into enticing shoppers to spend lots of money in the grocery store. If we are aware of these "traps" it might be a little earier not to fall into them.
From a consumers point of view, a supermarket is quite simple; Put what you want into your buggy and go through the check-out. Behind the scenes though, psychology is used a lot to define what products and brands you buy in supermarkets. Stands are designed to catch your eye and the store layout is structured to maximize profit.
Through my investigations, I have found the following tactics can be used supermarkets and similar stores.
Eye level marketing
Generally speaking, the most expensive items with high profit margins are placed on shelves that are at shoppers' eye level. This is because you are more likely to see them than the less profitable brands at the very top or near your feet.
Aisle order
Some customers, particularly men, tend to simply shop for what they want, walking down an aisle grabbing what they want, turning back and walking the way they came, this is called the 'Boomerang Effect'. In order to maximize shopper and produce contact time, shops therefore place major items and brands in the middle of aisles ensuring that from any direction the customer has to walk the furthest to reach them.
Product grouping
Items that complement each other are often found close together to entice you to buy more. You'll often find pasta sauces on the same display as a featured brand of pasta.
Food smells make you feel hungry
Another tactic supermarkets use is the smell of freshly baked bread coming from the in-store bakery during the after-work rush. The smell of warm bread makes people feel hungry. When you feel hungry while shopping you are more likely to buy additional items.
Canned smells
Most Supermarkets bake their bread early in the morning, however to entice more custom some have resorted to pumping out the smell of fresh baking bread to add to the illusion that it is constantly baked through the day.
Essentials at the back
Supermarkets hit upon the idea of placing the essentials, such as bread and milk, at the back of the shop. This is in order to make people have to walk past the rest of the produce, and heighten the possibility of impulse buys, in order to get their necessities. Changing rooms in clothes shops are almost always situated at the rear of the shop.
Attracting children
One American supermarket chain hit upon the idea of drawing a hopscotch in the aisle next to the children's cereal in order to make the children play and thus pin Mom & Dad to a point where the children could hassle them for treats.
Irrational Pricing
Irrational pricing is putting the price of items at say 4.99 instead of 5. The reason offered for not instead rounding $4.99 to $5.00 is based on memory processing time. Rounding upward involves an additional decision compared with storing the first digits. Furthermore, due to the vast quantity of information available for consumers to process, the information on price must be stored in a very short interval. The cheapest way to do so, in memory and attention terms, is by storing the first digits. Therefore customers perceive to be getting a better deal than they in fact are.
Order Of Price
Shops will often be laid out in order of price with the most expensive items being encountered at the beginning of your visit and the cheapest at the end. This is done to play on our sense of comparison, we are much more likely to spend money on accessories etc if we have just agreed to buy an expensive item, as in comparison they will seem cheaper than had we encountered them first.
Point Of Sale
Whilst you are waiting to pay retailers often install Point Of Sale displays, this is especially prevalent in Supermarkets who install racks of chocolate to tempt bored children waiting with their parents.
Shuffle
Many shops have a policy of regularly rotating the stock, this happens especially in supermarkets where people regularly shop for the same items. The idea obviously is to confront customers with a variety of items aside from their regulars and encourage them to explore areas of the shop they may not usually visit.
From a consumers point of view, a supermarket is quite simple; Put what you want into your buggy and go through the check-out. Behind the scenes though, psychology is used a lot to define what products and brands you buy in supermarkets. Stands are designed to catch your eye and the store layout is structured to maximize profit.
Through my investigations, I have found the following tactics can be used supermarkets and similar stores.
Eye level marketing
Generally speaking, the most expensive items with high profit margins are placed on shelves that are at shoppers' eye level. This is because you are more likely to see them than the less profitable brands at the very top or near your feet.
Aisle order
Some customers, particularly men, tend to simply shop for what they want, walking down an aisle grabbing what they want, turning back and walking the way they came, this is called the 'Boomerang Effect'. In order to maximize shopper and produce contact time, shops therefore place major items and brands in the middle of aisles ensuring that from any direction the customer has to walk the furthest to reach them.
Product grouping
Items that complement each other are often found close together to entice you to buy more. You'll often find pasta sauces on the same display as a featured brand of pasta.
Food smells make you feel hungry
Another tactic supermarkets use is the smell of freshly baked bread coming from the in-store bakery during the after-work rush. The smell of warm bread makes people feel hungry. When you feel hungry while shopping you are more likely to buy additional items.
Canned smells
Most Supermarkets bake their bread early in the morning, however to entice more custom some have resorted to pumping out the smell of fresh baking bread to add to the illusion that it is constantly baked through the day.
Essentials at the back
Supermarkets hit upon the idea of placing the essentials, such as bread and milk, at the back of the shop. This is in order to make people have to walk past the rest of the produce, and heighten the possibility of impulse buys, in order to get their necessities. Changing rooms in clothes shops are almost always situated at the rear of the shop.
Attracting children
One American supermarket chain hit upon the idea of drawing a hopscotch in the aisle next to the children's cereal in order to make the children play and thus pin Mom & Dad to a point where the children could hassle them for treats.
Irrational Pricing
Irrational pricing is putting the price of items at say 4.99 instead of 5. The reason offered for not instead rounding $4.99 to $5.00 is based on memory processing time. Rounding upward involves an additional decision compared with storing the first digits. Furthermore, due to the vast quantity of information available for consumers to process, the information on price must be stored in a very short interval. The cheapest way to do so, in memory and attention terms, is by storing the first digits. Therefore customers perceive to be getting a better deal than they in fact are.
Order Of Price
Shops will often be laid out in order of price with the most expensive items being encountered at the beginning of your visit and the cheapest at the end. This is done to play on our sense of comparison, we are much more likely to spend money on accessories etc if we have just agreed to buy an expensive item, as in comparison they will seem cheaper than had we encountered them first.
Point Of Sale
Whilst you are waiting to pay retailers often install Point Of Sale displays, this is especially prevalent in Supermarkets who install racks of chocolate to tempt bored children waiting with their parents.
Shuffle
Many shops have a policy of regularly rotating the stock, this happens especially in supermarkets where people regularly shop for the same items. The idea obviously is to confront customers with a variety of items aside from their regulars and encourage them to explore areas of the shop they may not usually visit.
Tuesday, December 16, 2008
Announcement-Matt Bell to conduct Workshop
Matt Bell, author of "Money Purpose Joy" will conduct a 3-hour workshop at St. Paul's By-the-Sea Episcopal Church, Jacksonville Beach, Fl on February 21, 2009. For information, contact Jerri Moats at 904.249.4091 or jmoats@spbts.net
Over the Mountain and Through the Woods...
A couple of money saving ideas as you travel to Grandma's house this holiday:
- Pack a small cooler of drinks and snacks to satisfy your travel munchies. This is much more economical than eating in a restaurant or buying junk food at the gas station's convenience store.
- A simple money saving idea for traveling: Don't give in to the temptation to speed! Not only will you save money on gas, you are sure to avoid a speeding ticket. Take it from anyone who has had to pay for a speeding ticket, it's like opening your wallet and throwing twenty dollar bills out the window!
Safe travels!!!
Tuesday, December 9, 2008
Finding a New Job after Being Laid Off
Finding a new job in this economy will be tough because of the competition for available jobs and will require a strategy different than what you might have used before now.
First, come to grips with your job loss. You need to get over your anger and insecurity by taking some time to regroup. Attitude will be very important as you talk to prospective employers.
Second, determine your willingness to relocate and to what locations. Look at local newspapers, trade magazines, business pubications and the internet to begin to sense what types of jobs are out there and what types of businesses are hiring. Network!! Working your circle of friends and business associates can be very effective.
When applying, don't express bitterness or self pity in any cover letters. Signal confidence. Don't over state gratitude by saying things like "Thanks so much for giving me consideration" because you signal a lack of confidence. Don't come across as too arrogant. Rather, say something as simple as "I look forward to hearing from you."
Demonstrate flexibility such as by being available for training or travel, provided you are willing to do those things. Don't act desparate.
On salary, don't offer to work for less than you made before. It signals that you aren't considering this job as a long term posting. Rather, let the employer raise the subject and then, if you are willing to accept less, say so and express a good reason for being willing to accept it such as that you believe the job is a great fit for you and your skills and that you would be willing to work for less pay in order to have the fit.
Be prepared to explain why you were laid off or why you've been unemployed for any lengthy period. You might explain that you wanted to take some time to assess what you really wanted from life and a job or that you needed to reconnect to your children/family or some such.
Always remember that your attitude speaks volumes about where you are and that is what your interviewer is trying to assess.
First, come to grips with your job loss. You need to get over your anger and insecurity by taking some time to regroup. Attitude will be very important as you talk to prospective employers.
Second, determine your willingness to relocate and to what locations. Look at local newspapers, trade magazines, business pubications and the internet to begin to sense what types of jobs are out there and what types of businesses are hiring. Network!! Working your circle of friends and business associates can be very effective.
When applying, don't express bitterness or self pity in any cover letters. Signal confidence. Don't over state gratitude by saying things like "Thanks so much for giving me consideration" because you signal a lack of confidence. Don't come across as too arrogant. Rather, say something as simple as "I look forward to hearing from you."
Demonstrate flexibility such as by being available for training or travel, provided you are willing to do those things. Don't act desparate.
On salary, don't offer to work for less than you made before. It signals that you aren't considering this job as a long term posting. Rather, let the employer raise the subject and then, if you are willing to accept less, say so and express a good reason for being willing to accept it such as that you believe the job is a great fit for you and your skills and that you would be willing to work for less pay in order to have the fit.
Be prepared to explain why you were laid off or why you've been unemployed for any lengthy period. You might explain that you wanted to take some time to assess what you really wanted from life and a job or that you needed to reconnect to your children/family or some such.
Always remember that your attitude speaks volumes about where you are and that is what your interviewer is trying to assess.
Thursday, December 4, 2008
Put your blessings in a box...
Matt Bell in his new book "Money Purpose Joy" suggests that whenever you receive an unexpected blessing to write it down and put it in a box. Then at Thanksgiving you can read the notes and remember God's goodness-all of the blessings, large and small, that happened throughout the year. Matt says that this might be the best money management tool of all.
Tuesday, December 2, 2008
Spending Plans
People tend to view a budget like a diet... painful and only for those that need to spend less. Nothing could be further from the truth!! At least half of all millionaires use budgets to plan their personal spending. Financially successful people have certain traits in common: they live beneath their means, set aside a portion of their incomes for saving and investing, and use a budget to plan and control spending.
We'll be offering a course soon to help you prepare a budget that fits you. You won't necessarily spend less but you will spend more effectively and get more "bang for your buck." Stay tuned for more.
We'll be offering a course soon to help you prepare a budget that fits you. You won't necessarily spend less but you will spend more effectively and get more "bang for your buck." Stay tuned for more.
Gift Giving ideas
Gift giving can be a real budget killer. Many of us will overspend on gifts, especially during the holiday season. Four ideas to keep your gift expense under control:
1. Plan ahead. Be like Santa...Make a list and check it twice. Make a budget and stick to it.
2. Identify people who really wouldn't care if they didn't receive a gift and talk to them. Our family has grown so much we have now agreed with my sisters that we won't exchange gifts anymore but will limit gift giving to our repective teenage (or younger) children. Instead of each of our children giving each other a gift, our children draw names and agree to a maximum cost for the gifts.
3. Consider giving a gift you make yourself. Most people close enough to you to receive a gift would probably prefer it. Are you a good cook? Give homemade cookies. Can you knit? Give scarves or hats.
4. Be an early bird. Hit those big sales. The Wall Street Journal predicts that deep discounts will remain throughout the Christmas season.
1. Plan ahead. Be like Santa...Make a list and check it twice. Make a budget and stick to it.
2. Identify people who really wouldn't care if they didn't receive a gift and talk to them. Our family has grown so much we have now agreed with my sisters that we won't exchange gifts anymore but will limit gift giving to our repective teenage (or younger) children. Instead of each of our children giving each other a gift, our children draw names and agree to a maximum cost for the gifts.
3. Consider giving a gift you make yourself. Most people close enough to you to receive a gift would probably prefer it. Are you a good cook? Give homemade cookies. Can you knit? Give scarves or hats.
4. Be an early bird. Hit those big sales. The Wall Street Journal predicts that deep discounts will remain throughout the Christmas season.
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