Book Review: "Cheap"

Item: "Cheap: The High Cost of Discount Culture," by Ellen Ruppel Shell

Price: $14.01

Where to Buy: Amazon

Review: Someone's paying for it, even if you're not.

That's the main idea behind "Cheap: The High Cost of Discount Culture," a new book by Ellen Ruppel Shell.

Shell admits right off the bat that she's a bargain hunter. The problem, she says, is what we consider bargains may actually be hurting the environment, our expectations and employees around the world.

By now, most people understand the difference between between cheap and being frugal. The former looks only at price. The latter also considers quality. Shell uses examples like Ikea and outlet stores to show how looking nearly exclusively at price tags can dilute brands and affect buying habits.

But whether you label yourself cheap, frugal or just plain thrifty, do what I did if you want to read this book. Get it at the library.

Feng Shui for Tough Economic Times

Earlier this year I received an email with an intriguing subject line:

"Feng Shui Tips to Attract Money For You & Yours!"

It was from one of the neighborhood shops, Hom. R.D. Chin, the author of "Feng Shui Revealed" would be speaking about a room's wealth areas and money power spots and explain how to make them work for you.

Interesting. But since the lecture came with a $40 price tag, I decided I would in fact be wealthier if I stayed home.

With a little of the ol' internet research, however, I did come up with these feng shui tips to help fatten your wallet:

• Prosperity is associated with the back left corner of a room, facing in from the doorway. Clear clutter from this area and replace it with a symbol of prosperity, such as a bowl of coins.

• Store your checkbook in the rear left corner of your desk.

• Hang three Chinese coins tied together with red ribbon on the back of the handle of your front door, and be sure to cut the ribbon in increments of 9, such as 9 inches or 18 inches long.

No, I don't really believe any of this stuff really works. But in times like these, I guess anything's worth a shot.

Money Opposites Really Do Attract

I proudly proclaim that I'm thrifty, but even I have to admit that sometimes I go too far.

I fret over even small purchases and, at times, needlessly sacrifice fun and good eats for a few pennies. My husband, on the other hand, doesn't hesitate heading to the ATM for a good meal.

We knew our views on money differed long before we got married.

One of our earliest tiffs concerned ordering soda in restaurants, which I consider a waste of money. We long ago agreed to disagree on that one-- he orders his Coke while I opt for water.

Our first major fight also revolved around money. He wanted a new car, but I thought we should only consider used. I won that one (and, seven years later, we still drive the Saturn).

But despite our occasional, um, conversations about money, I think we're good for each other. I rein him in, he loosens me up.

More couples are in our situation than you might think. Tightwads and spendthrifts tend to become man and wife, according to a study reported on in the New York Times.

While people are attracted to those who are similar to themselves in every other way, opposites attract when it comes to spending habits.

On a thriftiness scale of 1 to 10 (1 being reserved for Mr. Scrooge), I'm probably a 3. I would rate my husband as a 6. He's not using $100 bills to light bonfires or anything, but we're far enough apart to cause many a disagreement.

But I'm making progress. I've even been known to order a Thai iced tea for supper. Shhhhh.

Too Good to Be True $10 HDTVs

It seems I'm always reading a story about the good deals other people get.

You know: the $10 bus tickets that are sold out when I try to book them, or the $9 airfares for routes that never happen to be mine.

That's why I would have been thrilled to snag an HDTV recently from Best Buy's website for the low, low price of $9.99.

But I also wouldn't have been too surprised when Best Buy backed out of the $1,690 errors and decided not to honor the purchases. Nothing in life is free-- and especially not an HDTV.

Some of the customers, however, aren't willing to walk away empty-handed. They're threatening a class-action lawsuit.

Get real. Frugality is one thing, but cheating others (even big box stores) is quite another.

Today's lesson:

Thriftiness: Good.

Expecting something for (nearly) nothing: Bad.

Same Name = Saved Money

Have you heard of the Kelly Hildebrandt's? They're the couple with the exact same name who met on Facebook and are now engaged.

It must say something about me (although what, I'm not exactly sure) that one of my very first thoughts was how convenient it will be for female Kelly to keep her name without going through the hassles of either:

• explaining why she chose to keep her maiden name or

• going through the hassle of changing her driver's license, passport, credit cards, bank account, etc.

Six years ago I chose the latter, and I still don't have everything changed. My husband and I bought a house about two months before our wedding, and the mortgage is still under my maiden name.

I declined to pay the fee to change the mortgage statements, but I ponied up the cash for the driver's license. Did I really have a choice?

Yes, I suppose. I could've kept my maiden name. Luckily for Kelly Hildebrandt, that's one decision she doesn't have to make.

Renegade Craft Fair: Indie Art at Hard-to-Beat Prices

I heard about the Brooklyn stop of the Renegade Craft Fair completely by chance, through a small notice on the New York Times online. But it didn't take long to decide that I would attend.

It took a bit longer to convince my husband to accompany me. But he had almost as much fun perusing the witty t-shirts as I did combing through the jewelry, bags and clothing.

The Renegade Craft Fair brings together "indie crafters"-- more than 300 at the Brooklyn event -- for a one-stop-shop of all things homemade.

And happily, visitors on a budget have plenty to choose from. I picked up a necklace for $15 and could easily have spent 10x that and left McCarren Park with a full bag of loot. I hope to feature on this site some of the unique items I saw for sale, but until then you can read about my experience at the Brooklyn Renegade Craft Fair.

I'll certainly be at the 2010 fair, and I only wish I could attend the upcoming Renegade Craft Fairs yet this year:

Los Angeles
California Market Center
July 11-12

San Francisco
Fort Mason's Festival Pavilion
July 18-19

Chicago
Division Street between Damen & Hermitage
Sept. 12-13

Financial TV Personalities Annoy Me

I've watched an entire episode of the Suze Orman Show exactly zero times. I've seen bits and pieces here and there, but my closest contact has been the skits lampooning her on Saturday Night Live.

Yet I find her fascinating, and I can't help but agree with her main message-- don't spend more than you have. Who can argue with that?

But so many people seem to forget that Orman is a TV personality and provides just as much (more?) entertainment as actual service. In fact, a recent article about Orman in the New York Times Magazine basically says that Orman's books and anecdotes seem to be much more positive and uplifting than facts would suggest.

Jon Stewart was lauded for striking a blow against financial punditry when he confronted Mad's Money's Jim Cramer on The Daily Show earlier this year. I'll admit I cheered along. Yet I've watched Cramer's show and have even read a couple of his books, and he provides some good tips and advice.

But if you're fooled into thinking he's much more than a carnie hocking the next "can't-lose" game in the business, than maybe, just maybe, you're asking to be fooled.

Recession Changes Shopping Habits

Although I try to avoid Wal-Mart, I seem to have always been the type of shopper described in a recent New York Times article, The Recession, Wal-Mart Style. Retailers are now finding that shoppers:

• stick to their grocery lists and cut back on browsing
  

• opt for private label food

• maintain their current vehicles rather than buying new

But the article doesn't describe me completely.

For example, I haven't traded in my vacation for an LCD television. And yes, I'll take ground beef before steak and chicken before beef, but that's just because I like them better. As my husband never fails to remind me, it's easy for me to be frugal when I have tastes like a peasant.

When Being Frugal Doesn't Pay

There's a limit to saving money.

For me, that limit is home repairs, car repairs and pretty much anything else that requires a toolbox. I'll spend any amount of money to save time and, more than likely, avoid a debilitating injury.

But a recent New York Times article proves that others don't quite know their limit. Take the woman who installed her own toilet, only to find the ceiling below it collapse. Or the man who happily accepted party leftovers of uncooked meat and fish to end up with food poisoning.

What's your limit?

Where Are the Deals? Try the Dollar Store

I needed a comb.

When I got my hair cut short, I didn't need the large brushes I used when my hair reached my shoulders. But when I went to the drug store, the cheapest combs were in packs costing upwards of $10-- much more than I expected for something I used to get free on school picture day.

So I went to one of my neighborhood's dollar stores. I easily found a pack of eight combs for about 2 bucks -- and the combs were sparkly, too.

I'm not the only one who relies on dollar stores for some basics.

A New York Times article reported that "while most big retail chains are closing stores and radically cutting back on new outlets, the dollar chains are planning to open hundreds of stores this year in some of the best locations to which they have ever had access."

There's no need to be a dollar store snob. I've purchased everything from greetings cards, loofahs, plastic cups and even glow-in-the-dark maggots. (My cousin was the lucky recipient of that last one at my grandparents' annual bingo extravaganza on Christmas, but you get the idea.)

If you haven't stepped in a Dollar Tree or its kin for years, now might be the time to give it another shot. According to the Times, some stores are even installing refrigerators and freezers to offer a wider selection of food.

It'll be awhile before I depend on Dollar General for my groceries, but perhaps the future is closer than I think.

"Frugal and loving it"

It took a world economic crisis, but people are finally seeing things my way: Thrifty is chic.

As 36-year-old San Francisco resident Cooper Marcus said in a New York Times article, "I'm frugal and loving it."

The article explains how people throughout the country in all social strata are cutting back and, as the Times puts it "outsaving the Joneses."

I don't enjoy hearing about failing banks and soaring unemployment rates. But if there is some icing on this unappetizing cake, it's that it's no longer necessary to hide frugality. More and more people really do seem to understand that cheap and chic aren't always mutually exclusive.

I tend to agree with Vicki Robin, the author of "Your Money or Your Life." I've never read the book, but based on her comment to the Times, I bet I would enjoy it.

“There is no joy in other people suffering," she said, "but this validates the choices I’ve made.”

I would exchange that validation for a sound economy in a minute. After all, thriftiness gets you only so far; you can save only the money you actually make. Thriftiness may provide a cushion, but it does only so much to break the fall.

Thrifty Politicians: They Really Do Exist!

Besides what I recall from a trip to Charleston as a child some 20 years ago, most everything I know about South Carolina I've learned from the state's native son, Stephen Colbert.

That is to say, I don't know too much.

But this article in the New York Times about Gov. Mark Sanford a couple of weeks ago caught my eye, and not because of his threatened refusal to accept federal money. Instead, I enjoyed reading how seriously this millionaire takes thriftiness.

"Former employees say he has been known to require his staff to use both sides of a Post-it note. When Mr. Sanford was a congressman, he slept on a futon in his office and returned his housing allowance. And when, after he moved into the Governor’s Mansion here, tax collectors declared his family’s home on Sullivan’s Island a secondary residence subject to a higher tax rate, he appealed and won."

Even I don't use both sides of a Post-it note (well, not always), and I'm far from a millionaire. Sounds like I have a ways to go before I can truly deem myself frugal.