value | Squirrelers

5 Things For Which It’s Worth Spending More Money

It’s almost like a default approach for many of us who prefer not to spend money, where we try to search for the cheapest alternative for a given purchase. Give me 3 choices, and my eyes will first scan for the prices and I’ll be most interested in the option with the lowest price. The burden of proof will be on the more expensive options to demonstrate that they’re worth the extra money!

While this can be the case, I’m realizing that there are times when it is worth shelling out a little bit of extra money for a more expensive alternative with value. Here are 5 examples of this:

Nutritious Food

Let’s say you could buy canned veggies for $0.75, or get the same food fresh for $1.50. Which would you choose?

Or, you could buy a fast food value meal for $4 – with the alternative being a freshly made, healthy meal at home that would cost you $6 and an extra 30 minutes. In this case, which would you choose?

If you choose the cheaper options, the amount you save can really add up over the course of the year. Who knows, maybe you could save over $1,000 annually by selectively choosing the more inexpensive choices. Over 20 years, when invested, that can really add up!

But it’s not worth it. The long-term effects of choosing less healthy foods just might be there for your health, thus inhibiting your quality of life. Why deliberately negatively impact our lives just to save a little bit of time or money? Honestly, I have done this too many times in the past, but am glad that I look at things differently now. Without health, what’s the point? Besides, being unhealthy can inhibit the ability to make money, as the role of money in life is one of interdependency of money, health, and relationships.

Professional Services

There are people that don’t like to pay others to do things for them. There seems to be a large contingent of folks out there that take pride in being self-sufficient to the point of wanting to take a DIY approach to as many things as possible.

Well, I think that when considering the choices of DIY or professional, it’s important to be realistic in assessing our own limitations and shortcomings. We aren’t all jack of all trades, who can do everything well. There are times when we simply need to hire a professional. I’ve talked about hiring a pro to do taxes, but it could also apply to certain legal advice, plumbers, electricians, mechanics, and even health care professionals! The latter should be obvious, but may not always be!

Basically, there are times where you may have to spend a lot more money up front to use a professional, but it could end up saving you money and maybe even help mitigate some risks.

Home or Car Maintenance and Repairs

A lot of people, I’m convinced, don’t think about the importance of saving money in order to do basic maintenance. We do need to regularly save money for home repairs and maintenance. It’s also important to save money (and yes, spend) on car repairs and maintenance.

If we neglect these basic needs, things can fall apart. It’s best to plan ahead for such expenses, and budget for them. When we have already resigned ourselves to the reality that we’ll need to spend money, it becomes easier to avoid being too cheap. Plus, if we do cheap out on these types of periodic expenses, we may end up cost ourselves a lot of money in the future.

Professional Appearance

Surprised to see this one here? This wasn’t on my original list of 5, but then I thought about a person I know who is an acquaintance that works with a friend of mine. This acquaintance is supposed to be a very smart guy, very analytical and bright in business. However, he dresses without much thought. He doesn’t put any time or effort into looking professional (while working in a professional environment), and basically just buys cheap stuff without a second thought. The guy is known for tropical shirts!

He also has a haircut that looks like he just came here from the 1980’s. While I realize that the question of how much to pay for a haircut is one where I’ve supported low costs, this guy literally looks like he cut it himself. There was talk about him cutting his own hair, and I’d like to assume it was a joke!

Just spend a few bucks to look like a professional. One need not splurge to excess, but appearance matters to some degree.

Family

Want to know a good example of penny wise and pound foolish, as the saying goes? I know someone who did not buy his wife anything whatsoever for Valentine’s Day. Nothing. She bought him nothing either, but as we all know (if we’re being genuine with each other and ourselves), it’s the guy that is the one who really needs to be the gift-giver on Valentine’s Day. Yes, I know not all couples give gifts, but in most cases, if the guy buys or does absolutely nothing, he’ll be in the doghouse. That’s just the way it is 🙂

Yes, I do think that it is critical to save money. And yes, I personally would much rather see money saved, rather than have my money spent on me for a Valentine’s gift. But that’s my male perspective, and I realize that my line of thinking may be practical on one dimension, but it’s not something one could actually do. That’s where my friend misses the mark. Sometimes it’s better to be generous and happy, instead of being right!

My Questions for You

Do you think the 5 categories above are worth spending more money on?

Are there any other types of expenses that are worth not pinching pennies on?

Do you have an example of a time you spent more money on something and it was worth it?

Is This a Good Time to Invest in Real Estate?

By Squirrelers 8 Comments

Over the last few years – actually, more than that – we’ve seen a lot of people lose a ton of money in their homes. Prices in many parts of the country cratered, and it seems like stories of declining prices were prevalent in most places.

Here in the Chicago area, I’ve seen prices drop measurably over the last 5 or 6 years. There were places that saw homes go off the market very quickly, and have multiple bidders, turn very quiet. As if they were parts of ghost towns, nearly devoid of buyers, with tumbleweeds blowing by. Interesting, because this is an area that has a large corporate and business base, and is quite diversified overall as the center of commerce between the coasts. If it could be like this here, what could things be like elsewhere?

We’ve heard all kinds of stories about houses that could be bought for a massive discount from prices of not too long ago. Places like Miami, Phoenix, and Las Vegas come to mind. Detroit might be the poster child, as there are plenty of homes there that could be purchased on a credit card! Go check real estate listing for that city, on a major site. You’ll find plenty of homes under $1,000. Of course, there’s often a very, very god reason that homes are priced so low.

Anyway, I’ve noticed over here that after some years of falling prices, there appears to be some stability. This isn’t based on a scientific, professional assessment of tons of data, but rather from just a person checking websites here and there and looking at prices within a few different suburban areas. Where there had been steady price declines, there now appears to be a leveling off. In fact, I’ve seen some areas with prices that are surprisingly healthy, given the previous declines.

With interest rates still very low, and prices leveling off, I wonder if the window to purchase true bargain real estate is closing. Is this a good time to buy real estate?

While my interest is primarily for living purposes at this time, there are others who might see this an opportunie time to invest. If one could take out a super low interest loan, and rent out while ensuring the vacancy rate is kept low, a really solid rate of return might be had in this present environment. It’s entirely possible, who knows? High end real estate in Hawaii is one example. Additionally, there is the possibility of future asset value increases as well. Sort of like getting dividends and seeing capital appreciation on a stock.

Real estate can be a component to one’s long-term investment plan. Many people have done very well, and have been able to grow net worth this way. There are plenty of personal finance bloggers that invest in real estate, and operate as landlords!

What Do You Think?

Do you see prices stabilizing where you live?

Do you think the window of opportunity to get a low-priced home is closing, or do you see prices continuing to drop?

Have you considered investing in real estate as a landlord?

Is AAA Worth It?

By Squirrelers 32 Comments

I’ve had a AAA membership for years now. My own membership is $57 (currently paying $82 for two), and admittedly, it’s not

Don’t get stranded in bad weather!

something I leverage every day. In fact, I don’t use it very often at all. Therefore, it seems fair to ask the question: is a AAA membership worth it?

I say yes, and a big part of this is the roadside assistance service. Now, I haven’t been prone to too many car fiascoes over the years, so it’s not something that has been used too frequently. But there have been several situations where I needed their help with roadside assistance:

A time where I was in a blizzard, away from home, and somehow lost my keys in the stormy weather. Don’t ask, as I don’t know how I could possibly lose a car key that was in my hand, but it happened. Anyway, it was freezing and I was stranded, so AAA helped.
During a snowstorm, and while driving on a busy highway, my car tire blew out. I made it to the shoulder, but it was very narrow and in a highly urban, trafficked area. Thus, nobody would be too keen on trying to change a tire. Never mind that my spare was actually not in working order as it was. Anyway, it was a perfect time for AAA to help.
A situation where my car battery died, when I was far from home and in an area where I didn’t know anyone to give me a jump. Plus, there weren’t too many other folks around I could ask. I gave them a call, and got help.

I’m sure others have had far worse, even dangerous situations where they needed help.

Anyway, for me, the roadside assistance equals peace of mind. This is especially good if you have children driving with you, or if your spouse or a loved one are often driving alone. Or, if you’re often traveling with someone who is elderly or has a disability. You don’t want anyone to be in danger, or even highly stressed by situations. You can often get this other places, perhaps your insurance policy, but I’m not sure the benefits will line up as well for the price. I have found that AAA roadside assistance is worth it.

There are other benefits to having AAA as well:

Hotel Discounts
Retailer Discounts
Travel Information (guides, maps, etc)

Bottom line: If you drive a lot, and are periodically a good distance from home, AAA membership might very well be worth every penny and then some. It is for me.

My Questions for You

Do you currently have AAA, or have you had it in the past?

What is your opinion on its value?

5 Reasons Why Disneyland Is Worth Visiting

By Squirrelers 5 Comments

What does Disneyland have to do with personal finance?

For one thing, there are many folks that are out there in some kind of fantasy world when it comes to their money. People who totally ignore why it’s important to have an emergency fund are a part of that group. But hey, since we’re talking about Disneyland here, I’ll go back to the positive side of things 🙂

Earlier this summer we visited Disneyland, flying from Chicago to Southern California and meeting up with another family who we hadn’t seen in a few years. It was great to see them, and was fun to visit the park. It had been over 2 decades (yes, I’m getting old!) since I was last there, so I was curious how much fun it would be for me to visit at this age. Of course, I was more interested in how much fun my daughter would have there instead of me! This was one of those trips that I wanted her to experience once during childhood.

Well, it turned out to be a great time for all! Of course she enjoyed it, but I have to say that I enjoyed myself too. While much of that fun was seeing her happy and spending time with the other family I mentioned, the park itself was fun for me as well.

Was it cheap? No. I don’t even want to get into the costs, as needless to say the trip wasn’t inexpensive summer fun (though the fun part sure did apply!). Hotels in the area cost an arm and a leg too, as evidenced by how I ~~got gouged~~ spent a pretty penny for the stay. Souvenirs at the park cost a fair amount too.

All this being said, it was totally worth it. For a one-time trip, it was fun to not think about costs all that much and just make it a fun experience for kids and everyone. Along those lines, here are 5 reasons why visiting Disneyland is worth visiting:

Memories can be made. Yes, that might seem like a corny thing for me to say. But for kids, it’s a ton of fun to see the characters, the parades, and be a part of the whole environment. I remember visiting as a kid, and know my daughter will remember too. That’s the other thing: as a grown-up, seeing your kid having a fun time is memorable as well.
It’s timeless. I mentioned earlier that I hadn’t been there in decades. Well, it took me a short while to get re-acclimated! However, visiting the Haunted House and Pirates of the Caribbean totally made me feel like it was decades ago. That’s a good thing, in this case. The rides might have been updated in some ways for all I know, but they felt just like they did way back when.
Customer service is very good. Now, nothing compares to the my best customer service experience ever. However, the service at Disneyland was really good. Everyone I dealt with was attentive and – not surprisingly – cheerful. It was almost funny how happy some of the people seemed to act, but it was refreshing in a way.
Emphasis on quality. Things seem kept up, and the experience is a solid one. Whether we’re talking about rides, other attractions, souvenirs, or even the food – things are of really good quality by theme park standards.
It’s fun for the whole family. It’s truly a place where people of most ages can have fun. I’m not sure I would have been crazy about it when I was in my late teens or even much of my twenties, but it’s funny how getting older can allow us to have fun in a place like Disneyland. Kids have fun, and so can parents or grandparents. There are rides and attractions for everyone.

Ironically, I had previously posted about ways to save money at theme parks – and didn’t completely follow all my own advice. However, one part I absolutely did follow was eating a good breakfast before going to the park. We had two days of park visits, and having a full stomach was a great way to save some money on food during the day. Of course, as I mentioned above, the food we did get at the park was actually pretty decent by theme park standards.

Bottom line: Disneyland was a fun place to visit, pricey or not! It’s a classic, All-American experience.

My Questions for You:

Have you ever been to one of the Disney parks?

Did you find it to be worth it like I did?

What is your favorite part of a visit to the park?

The Potential Value of Giving Something Away For Free

By Squirrelers 13 Comments

Who says there’s no such thing as a free lunch?

Well, now that I think of it, I did in a previous post on a PR promotional event that literally involved food, where I had the takeaway that there’s no such thing as a free lunch. The idea is that when you get something that is seemingly free, it often comes with strings attached that offer benefits for both the giver and the recipient.

It’s important to remember that we rarely get something for nothing, and it’s often important to take a closer look at the exchange. This matters on both sides, if you are getting or if you’re giving.

I was involved in two such free giveaways in the last week, and I think they serve as good examples of how effective and “free” they really are:

Example 1

I was walking down the street in the past week, and saw a few people in front of me that were clearly giving something away. I could see them engage passersby with a few quick words, before either something was exchanged, or the person walked on by. As I got closer, I could see that red Frisbees were being given away.

My first instinctive thought, I have to admit, is to think “FREE STUFF!” when I see something like this. Aside from that, My second thought in this case was more practical: my kids might like to play with a Frisbee. It’s something we can do outdoors, thus promoting being active. So, I stopped to get the Frisbee.

What the person asked me was (if I recall correctly) “Would you like to do more?”. Then, I looked at the Frisbee and it had the name About.com on it, with a tagline “Do More”. Okay, so the message was connected from the person to the Frisbee, and the company name was there. Therefore , I was able to remember it.

This means that we both got something out of it.

It got me thinking about – well, About.com and got me to check it out.
Additionally, I’m writing about it here.

Thus, not only did the recipient get value, but the giver actually got value too.

Example 2

Again, during the same week, I came across another giveaway. This time there were blue hats being given away at a table. There was somebody there, but the person was not actively engaged with people coming by. The hat itself was nice, and had some logo on it that I had never seen before. I picked it up, and looked find out more about the company. It wasn’t evident, so I just shrugged my shoulders and walked on. Clearly, others were doing the same.

I had that same initial excitement about getting something free, and follow up thought about how the item could be useful. But I got no additional information about the giver.

They didn’t talk, the table had no name/sign that was obvious to someone just taking a quick glance, and the logo didn’t make clear what the business really did.

In this case, I actually got value, but the giver probably didn’t get as much as they could have.

Takeaways

This situation where I had obtained 2 free items during the week led me to a few conclusions about “free” things and exchange of value.

Look closely at what is value is being exchanged in any transaction
If you’re getting something seemingly free, you might still be giving value back without actually realizing it
If you want to give something – and this could include your time or services – getting something back is not guaranteed, and it’s up to you to think things through in order to make that happen

My Questions for You

Have you ever experienced a situation where “free” really wasn’t so free?

Do you think that strings are usually attached in cases where something free is offered to you?

What do you think are the best ways, on the side of the giver, to ensure that by “giving” something away, you end up getting value back in return?