Good News

Can there be any good news when it comes to a layoff?  I really don't know, but I do choose to see some positives.

First, Mr. Sam gets a decent number of weeks of severance.  We have not figured out our "lay off budget" yet but my tentative plan is to try and save the vast majority of that money.

Second, Mr. Sam' health benefits, which are good, generous and cheap, continue well into the fall.  I am also covered by his health benefits due to the good, generous and cheap nature of them.  We do have to pay the biweekly amount (the amount that was deducted from his pay for his portion) to maintain these benefits but it makes economical sense to do so since my benefits are good but cost 4 times (or more, still figuring this out) as much as his.

Third, we have a decent amount in our emergency fund.  This money was bookmarked for other purposes but it is there.

Fourth, Mr. Sam started preparing for this lay off last year by taking some certification courses so he has some additional skills and certifications to add to his resume.

Fifth, I have a good job.  Frankly, this is the most important item on this list.  I have a good, professional job for which I am fairly compensated.  While we have not figured out our "lay off budget", will work on that this weekend, I'm generally confident (since I am well versed in our monthly income and expenses) that my salary can cover our fixed and basic monthly expenses.  I also have opportunities for bonus monies and we need to think about whether I should up my output to make sure I am eligible for same (and at what level).

Bad News

At I mentioned in my last post, the layoff we have been talking about and expecting for the last year and a half has finally showed its ugly face.  Mr. Sam has been laid off from his corporate job.

While it was no surprise, it is certainly a devastating blow to Mr. Sam and to us as a couple.  Financial and family plans are impacted.  Our day to day spending will be impacted.  Our 2013 savings goals are impacted.  Our long term financial goals are impacted. Etc.

We are in the process of sorting out his plan forward and our plan forward.

2013 Savings Goals - July Update

(1) Max out 401k(s) -        $21,611 (62%)   (goal is $35,000)
(2) Max out IRA(s) -         $9,020 (82%)    (goal is $11,000)
(3) Add to e/r fund -          $5,200 (52%)   (goal is $10,000)
(4) Pay down mortgage -   $2,075 (42%)     (goal is $5,000)
(5) Trading account fund - $50  (1%)        (goal is $5,000)
(6) House projects -          $1300 (43%)      (goal is $3,000)

Total:  $39,256 (57%)

It is July in South Florida, it is hot and wet and we are moving into hurricane season.  July is also the first month of the second half of the year and it is time to evaluate where we are on our savings goals.

The good news is that we are just about $2,000 ahead of where we should be.

The bad news, if you've been reading this site for the last year and half you'll probably guess.  Mr. Sam lost his job as of Monday (along with a 100 others).  We've been expecting this reduction in force for about a year and a half now and, unfortunately, the day finally came.  I'll be posting more on this next week, but obviously a job loss may mean that our goals for this year have to be updated.

No to Zip Code

I am one of those consumers that says no to most questions at the end of the transaction.  No to rewards card.  No to email receipt.  No to phone number.  And, no to zip code.  Basically, I've come to the conclusion, and it is just my personal belief, that the company or the store is not asking these questions to help me.

Now, I've come to find out that I was right at least as applied to the zip code question.  Rather then gathering data to figure out where to locate the next store, stores are gathering data on you.  Take your zip code and your name (gathered from your credit card or debit card) and they can track you down to send you catalogs and other unwanted marketing material.

2013 Savings Goals - June Update

(1) Max out 401k(s) -        $19,428 (56%)   (goal is $35,000)
(2) Max out IRA(s) -         $6,013 (55%)    (goal is $11,000)
(3) Add to e/r fund -          $4,800 (48%)   (goal is $10,000)
(4) Pay down mortgage -   $2,075 (42%)     (goal is $5,000)
(5) Trading account fund - $50  (1%)        (goal is $5,000)
(6) House projects -          $1200 (40%)      (goal is $3,000)

Total:  $33,566 (41%)

We are about $400 ahead of where we should be.  Looking at each goal, we are generally on target or a bit ahead of the game for each except the trading account fund.

As I mentioned during my last super savers update, I had some un-budgeted car repair/service expenses (more on that later).  We also have a large house project expense coming up so I'm going to have to tap that account as well.

When is a Sale Not a Sale?

Earlier, I wrote about the psychological impact of shopping without actually buying the product you are shopping for.

Now comes news on something I've suspected for many years, at some stores sale prices are not really sale prices.  Rather, as Today News reports certain stores, including J.C. Penny, Kohl's and Macy's have been caught advertising and pricing items on sale when they are actually selling the product for the manufacturer's suggested price.

There are almost an unlimited number of techniques companies use to get us, the public, to part with our money either by increasing purchases and/or by increasing the purchase price.  A "sale" when its not really a sale is just another technique but one that the savvy customer should be aware of by comparison shopping and doing their own research.

Diamonds and Dollars - Update

Back in August of 2012, I wrote about a claim we had submitted in the DeBeers diamond price fixing case. Well, yesterday Mr. Sam received a $270 settlement check.

I have no idea if this is a fair or reasonable settlement for the damages suffered by the consumer class (I understand, from my research that the wholesaler class is getting much larger checks) since I never studied the claims or undertook any analysis as to Mr. Sam's damages.  I understand from the diamonds class action web site that "payments were calculated based on several factors, including how much you paid, the quantity and quality of the diamonds you purchased, the amount of money that is available for your Class or Sub-class, and how many Class Members filed claims."

Anyways, assuming we never would have thought to bring a claim related to the diamond in my engagement ring, we are happy to recover $270 and we are putting it into our vacation fund.

This is the second time I've recovered more than $200 in one of these class settlement scenarios, so I'll continue to fill out the paperwork.

Satisfy Your Shopping Itch Without Buying

I've used a little trick for years to satisfy my urge to shop while also keeping my spending in check.  I go to my favorite online stores, J. Crew, Amazon, Pottery Barn, etc.  For clothes, I pick out something, I take a look at colors, I pick out my size, etc.  I may shop for an entire outfit.  Then I put it into my shopping bag or my shopping cart and then I simply don't check out.  My Amazon.com cart has items that I picked out more than 2 or 3 years ago.  Sometimes I use this method because I'm following our rules on waiting a day for every $100 an item costs, meaning if I picked out a pair a shoes that exceeded a $100, I am required to wait before I purchase them.  But, just as often, I simply enjoy this process, the browsing, the effort of coordinating a skirt with a shirt, finding the perfect dress for an upcoming event or trip and then feel little to no need to complete the sale.

This morning I read an article on The Atlantic that seems to confirm that materialistic folks (perhaps I am one) receive a greater happiness boost from thinking about acquisitions than from the actual acquisition.

What do you think?  Do you ever engage in imaginary shopping to satisfy your shopping impulses?