Archive for May, 2010
How to Enjoy the Art of Doing Absolutely Nothing
May 31st
For all the talk about productivity, the value of time, time management, we are guilty of missing the other end of the spectrum entirely, myself included.
That other end of the spectrum being doing absolutely freaking nothing.
I’m talking abou…
Sun Screens Can Really Cost You – By the Ounce or By the Tumor
May 31st
If you've been paying extra for sun products containing Vitamin A — often marketed as preventing your skin from aging — you might as well save your money. In fact, you may need it for future surgical bills. A new report from the Environmental Working Group cites “new government data linking a form of vitamin A used in sunscreens to accelerated growth of skin tumors and lesions.
Yikes. And that’s not all. The report also warns that at least 26 "for babies" sunscreens contain a chemical that scientists specifically warned against using on children more than a decade ago.
Another yikes: What you’re buying with sunscreens that list really high SPFs like 100 is a false sense of security, because they do not perform up to that level. The report also warns that even with lower SPFs, most people never get the amount of protection advertised on the bottle because in order to get that, we’d have to slather it on super thick.
(I know. We’re frugal. We don’t slather. But the experts say that an SPF 30 is not truly SPF 30 if it is spread thin.)
This is a good news, bad news report for cheapskates. The good news is, we don't have to feel guilty about not springing for SPF 100 for our kids or feel like we're missing out if we don't invest in the “age-defying” sunscreen for ourselves.
But here comes the bad news: The sunscreens that received the EWG’s top safety rating all cost more than $4 an ounce.
I'm a cheap mom. As a rule, I will not shell out for high-end children's toiletries, foods, or gadgets unless someone proves to me that there's a compelling need for that upgrade. You're not going to find Mustela diaper cream in my bag, since CVS' facsimile of A&D does just fine at preventing diaper rash.
For sunscreen, I use the CVS brand — which I usually get for free. At the end of every season, they'll put this stuff on clearance, and combined with a coupon I can bring home multiple tubes for free. And, before you interrupt me, it's a myth that you have to buy sunscreen fresh each season. As long as it's not expired or more than three years old, it should be effective, according to MayoClinic.com.
The EWG report's site has a handy — but disheartening — feature that allows you to look up your sunscreen in a database of 1,381 products, and find out its rating. A score of 0-2 means the product is recommended, 3-6 means “caution,” and 7-10 means “avoid.”
Here’s how mine rates:
CVS Fast Cover Continuous Lotion Spray Suncscreen, SPF 50
Score: 7 (Avoid) because it contains oxybenzone, “a potential hormone disrupter (that) penetrates the skin in relatively large amounts” — that's the chemical a scientist warned against putting on children's skin back in 1997. This product also lost points because it's a spray, which is more likely to be inhaled.
CVS Sunscreen Lotion, SPF 30
Score: 7, because it contains oxybenzone and vitamin A.
(Note: I didn't buy any of the “baby” or “kid” sunscreens because I am generally skeptical of products so labeled, but those CVS products are also rated 7 for the same reasons.)
So what does the EWG recommend? Only mineral sunscreens like titanium dioxide, which are not only pretty expensive but generally thick and pasty. Instead of using chemical blockers, these products physically block the sunlight from hitting your skin.
Here are the Amazon.com prices on some of the sunscreens that got the green light:
Badger SPF 30 Unscented Sunscreen
California Baby SPF 30 + Sunscreen Lotion – Super Sensitive, 2.9 oz
Loving Naturals Organic SPF 30 Sunscreen Zinc Oxide 2 oz UVA/UVB
Sunscreen, SPF 30, 2.6 oz ( Multi-Pack)
Now, keep in mind that doctors recommend that an adult use one ounce of sunscreen for every few hours of sun exposure. Even assuming I use 1/3 ounce on each of my three kids twice a day, that means I could be spending more than $10 protecting them from the sun every single day.
This makes the EWG's recommendation that you just cover your skin with clothing sound a lot more attractive. But I just don't know. I saw two kids at the public pool today wearing “bathing suits” that went from their necks to their wrists and ankles, with matching floppy hats that they kept on while in the water. I have to say they looked bubble wrapped. Would you rather wear a bathing suit of Victorian proportions, and put your kids in them, than risk cancer with sunscreen you can afford?
I guess I will spring for the titanium dioxide stuff, and try to keep those sunhats on the kids this summer. But with three little wigglers to cover every time we go out, I am really going to miss the convenience of the spray-on stuff.
P.S. Trader Joe’s sell sunscreen with zinc oxide that did not list oxybenzone or vitamin A. At only $5.99 for a hefty 6 oz tube ($1 per adult application if used as recommended), I thought it would be at worst a stopgap measure until I could find the best price on a fancy sunblock, and at best a bargain solution.
Well, more of a stopgap, it turns out. The EWG rates Trader Joe's Face & Body Sunscreen at 4, in the caution range. Apparently it does contain vitamin A, which goes by the chemical name retinyl palmitate and is listed under “inactive ingredients.” It also contains several other chemicals considered to pose “moderate” health risks.
Note: This post contains affiliate links to Amazon.com.
A brief and incomplete history of telepathy science
May 31st
The Fortean Times has a wonderful article that discusses the long and winding quest to find scientific evidence for telepathy, extra-sensory perception and other mysterious psychic powers.
The opening paragraph both made me laugh out loud and sets the scene for the rest of the article:
There are two truths universally acknowledged about extra-sensory perception (ESP). The first is that the anecdotal evidence is often fun and fascinating to read, whereas to peruse the experimental evidence is as boring as batshit, as our antipodean cousins say, and the investigative methods generally employed would for most of us banish insomnia for all time. We can’t avoid discussing these methods and their results in these entries, but we do promise to be brief and to strive personfully not to ruin your reading experience.
Link to Fortean Times on ‘Telepathy on Trial’.
A brief and incomplete history of telepathy science
May 31st
The Fortean Times has a wonderful article that discusses the long and winding quest to find scientific evidence for telepathy, extra-sensory perception and other mysterious psychic powers.
The opening paragraph both made me laugh out loud and sets the scene for the rest of the article:
There are two truths universally acknowledged about extra-sensory perception (ESP). The first is that the anecdotal evidence is often fun and fascinating to read, whereas to peruse the experimental evidence is as boring as batshit, as our antipodean cousins say, and the investigative methods generally employed would for most of us banish insomnia for all time. We can’t avoid discussing these methods and their results in these entries, but we do promise to be brief and to strive personfully not to ruin your reading experience.
Link to Fortean Times on ‘Telepathy on Trial’.
Best Money Tips: 50 Worst Inventions
May 31st
Welcome to Wise Bread’s Best Money Tips roundup. Today, we give you a list of TIME’s 50 worst inventions, a nifty homemade coconut mango popsicle recipe, and tips for making a second job work!
Top 5 Articles
The 50 Worst Inventions — Paul Blart may disagree, but this list is entertaining, nonetheless. TIME via Consumerist
Is Your Car Ruining Your Budget? Second to mortgages, cars are the one expense I hear most people complaining about. Find out how in this eye-opening perspective. Fiscal Geek
Homemade Coconut Mango Popsicles — It’s not too hot where we live this Memorial Day, but these still look deliciously cool! Get the tips for creating your own luscious treats. $5 Dinners
How Does Fraud Protection Work on Your Cards? — Not sure what “fraud protection” is? Need a primer on how it actually may protect you? We got you covered. Consumerism Commentary
7 Money-Saving Ideas for City Slickers — None of these will work for my rural lifestyle, but a girl can dream, can’t she? Moolanomy
Other Essential Reading
Traveling Cross-Country Dirt Cheap — This reader story is chock-full of great tips! Use some to help cut costs on your own long-distance adventure. Get Rich Slowly
How to Make a Second Job Work — It’s tough, but sometimes necessary: We’re talking second jobs, and this advice can go a long way towards helping you whistle while you work. Delivery Away Debt
Economic Consequences of Childhood Depression — Having a very unhappy childhood can affect how much you earn later in life. Find out more in this serious piece. Parenting Squad
DIY Swaddle Blanket — Feeling Crafty? This homemade blanket would not only make a great shower gift, but would be perfect for baby dolls, too! Prudent Baby via Mom Advice
Hotels Doing Away with Tiny Soap Bars — Those hand pump dispensers in the shower kind of freak me out, but I understand why they are making the switch. Find out when and how this will all go down. Smart Spending
Calling BS on 5% Rewards Advertising
May 31st
If you find yourself looking for a credit card online, or even just perusing a few of your favorite personal finance sites, you’ll come across a lot of credit card advertising. Credit cards are big biz, so it stands to reason that issuers will spend like crazy to convince you that their card is the one you should be swiping.
However, if you dig a bit deeper into these cards, you'll soon realize that what you see is not always what you get. The glitzy advertisements aren't always backed up by the fine print. And the biggest offenders are those companies that advertise "5% Cash Back" rewards.
Nobody can afford to pay you 5% cash back on everything
Interchange fees (or "swipe fees") in the U.S. are generally around 2-2.5%, so credit card companies would actually lose money on every transaction if they paid out more than 2-2.5% to you in the form of rewards. In other words, unless you're paying an ungodly annual fee, it stands to reason that you should investigate further before considering a credit card that advertises 5%.
Two card issuers in particular, Discover and Chase, make it nearly impossible to decipher their rewards programs during the application process. Instead, they fill their pages with giant dancing "5"s and "Apply Now" buttons and relegate their terms to obscurity. Let's explore these two ad campaigns to see how their marketing teams earn their keep.
It pays to Discover…that your rewards aren’t what you think
Let’s say you see an ad like this, where Discover offers 5% cash rewards on the More and Clear cards. You get excited and click. On the next page, you see the qualifier that you earn 5% back on "popular category purchases," while the rest of the time you earn "up to 1% cash back." Not quite what you expected, but not too shabby either. So let's just try to figure out what categories they are talking about.
If you take the time to click on "Rates & Disclosures," find the smallest font on the page, and scroll all the way to the end, you might find the link to the current 5% cash back schedule. It says that for the upcoming month of June, cardholders can earn 5% back on up to $200 at restaurants. Just restaurants. Just $200. And you have to sign up to take advantage of it. Yes, you read right, they not only limit your 5% rewards, but you have to opt in to receive them. This is not automatic payback, you have to work for it!
Inconvenience aside, let’s put some numbers on this. If you spend $2,000 in the month of June and $200 of that goes to restaurants, you’ll end up with (5% x $200) + (1% x $1,800) = $28, or 1.4% cash back. And don't forget that you're really only earning "up to 1%", so it could end up being less. I don't know about you, but I didn't see that anywhere in the ad.
Chase Freedom: Get 5% rewards while saying NO to interest? Um, NO
Chase and Discover must use the same ad agency, because at first glance they'll look exactly the same, only blue instead of orange. Giant number five? Check. Vague mention of "popular categories"? Check. But once you get past the pretty pictures and actually try to figure out how this card works, Chase really falls flat on their face.
Just how hard is it to decipher the meaning of 5% rewards on get.yourchasefreedom.com? Well there is actually nothing on the site to explain it. Discover thinks they did a good job of hiding the link in their terms and conditions, but Chase really took it a step further by making you resort to Google to figure out what the popular categories are.
Like the Discover More, the Chase Freedom relies on an "opt in" model for rotating categories of spending. But Chase has a predetermined quarterly schedule rather than an arbitrary month-over-month calendar of rewards. So if you can find the schedule anywhere, it shouldn't change any time soon. Thankfully, the NY Times tracked it down for us not too long ago.
From April to June the rewards category included "home improvement, lawn and garden, home furnishings and drugstore purchases." But what if you're a city dweller with no need for a Home Depot? No luck. Well for the months of July through September, you can earn 5% back on "airlines, hotels, car rentals, and gas." Oh wait, did you book your family's summer vacation before the kids got out of school? Oops.
As a holder of this card, I have a personal vendetta. In the past two years, the rewards program has changed on me three different times. Add to that the rotating reward categories that I actually have to go out of my way to claim, and I’m really peeved. After all, when I signed up for this card I was promised 3% back in my top three spending categories, and it was paid to me automatically.
So should you steer clear from every card that advertises 5% back?
No, not necessarily. Remember that there’s nothing inherently wrong with these credit cards, just the way they are advertised. Armed with the right information, they can be great tools for getting what you want. If you don’t mind the inconvenience of signing up for a rewards program each quarter, and you spend a lot of money in those particular categories, they might be the best for you.
Now if that’s too much of a pain for you (as it was for me), there are plenty of cards out there that actually work as advertised. For example, many gas cards pay 5% back on gasoline purchases without any squirrely gimmicks. And there are also cards that pay up to 2% back on everything you buy, which could mean more money in your pocket than just earning 5% on a relatively small portion of your spending.
In either case, it’s up to you to read the fine print, crunch the numbers, and figure out what you need to do to make your credit card company pay you.
Guest Post Blurb:
Tim Chen of NerdWallet was formerly a hedge fund analyst specializing in credit card networks and technology companies, before becoming a victim of the financial meltdown. NerdWallet is the Kayak for credit card search, and seeks to become the number one source for unbiased online credit card information. Here are more resources from NerdWallet:
Can’t Afford Your Car Much Longer? Negotiate to Keep It
May 31st
As so many are still struggling to manage paying their regular bills while living paycheck to paycheck, every day another car gets repossessed because families can no longer afford to finance their vehicles. Last year alone, more that 1.9 million vehicles were taken from those who defaulted on their loans. Just like the mortgage industry, people are seeking ways to keep their cars and still be able to afford the essentials.
Consumers may still have options even when their pay has been cut or their job has been lost. Auto lenders and banks prefer to keep people in their vehicles rather than go through the repossession process. More lenders are willing to negotiate an auto loan modification these days and it may be in your best interest to ask for help.
Modification Options
Essentially there are two ways you can go about getting help. The key to getting that assistance is to be upfront with your lender about your financial situation and be proactive in your request. Don’t wait until you are three months behind on your loan and the repo man is in your driveway before taking action. As soon as you sense a struggle with meeting your loan obligation, get on the phone.
The two options for assistance are:
Extension of the loan term – if you ask about extending the term of your auto loan, the lender will allow you to tack payments to the back end of your loan. For instance, the lender agrees to forbear three months worth of payments for May, June, and July. Those three months will be added to the end of your loan term and you are not obligated to pay on your note during the agreed upon three months. Likely your lender will charge a fee for this extension so be sure to ask about it when agreeing to the extension. Some lenders will only allow for one extension during the life of the loan but again, it doesn’t hurt to ask your lender directly.
Lowered interest rate – you might consider speaking to your lender about lowering the interest rate of your loan which will help to lower the monthly payment, making it more reasonable for you to meet your obligation.
Refinancing Your Loan
The process of refinancing the existing balance of your car loan can be a complicated process. More lending institutions are now advertising loan modification programs for vehicle loans but in a somewhat misleading way. Consumers are often led to believe the refinancing process is simple and instant. It may be in your best interest to skip the refinance with another company and stick with your original lender to negotiate help.
Remember that you will likely need to have a reasonable excuse as to why you can not paid. Job loss or illness may be acceptable reasons for why you might default on a loan. Bad money management is not a valid reason. Most lenders are willing to work with customers since the recession has financially damaged so many around the nation but they are still a business operation looking to get paid what they are owed. Make contact with your lender as soon as you think trouble is on the horizon and figure out what options make sense for your financial situation.
The worst thing you can do is ignore the situation until it gets so far out of hand that the law gets involved or your credit gets ruined. Debt does not go away and only gets worse over time. You have options to keep your vehicle so exercise those options and save your car and credit for the future even if you are still scraping by each paycheck.