Vogue's cat is out of the bag

Not like you sign up for mag subscriptions in the hope that the free swag you get will actually be quality (right??), but if the driving factor in becoming a Vogue reader was the new purse you were promised, you may have found yourself a little...underwhelmed.

According to the New York Post, wannabe Anna Wintours hoping to score free glamour with a Vogue Magazine subscription need not apply. You see, in the Vogue ad, the Post says the bag appears to be red leather with a crocodile embossment and a clasp with over-the-shoulder straps.

"Instead what shows up in the mail, in a standard 8 in. by 10 in. polybag, is a red canvass bag with "pleather" handles about the size of a small gym bag. The bag also has "pleather" patches on the bottom corners and a zipper closure."

Classy!

Surprise! PMS linked to shopping

Not like we don't already know that a little retail therapy is, well, therapeutic when Aunt Flo comes to town, for any still in doubt a new study out by a British professor suggests that there is, in fact, a correlation between menstrual cycles and that urgent need to spend money at Banana Republic.

According to the study, which surveyed 443 women aged 18 to 50, in the 10 days before their periods begin, respondents were more likely to go on a spending spree than at any other time.

Psychologists believe shopping could be a way for premenstrual women to deal with the negative emotions created by their hormonal changes.

"Spending was less controlled, more impulsive and more excessive ..." Professor Karen Pine told the BBC News."The spending behavior tends to be a reaction to intense emotions. They are feeling stressed or depressed and are more likely to go shopping to cheer themselves up and using it to regulate their emotions."

Not surprisingly, most of the purchases made by the women around their cycles were for adornment, including jewelery, make-up and high heels (i.e., items that make you feel pretty but don't have to be bought in a specific "size", as bloating can make you go up a full clothing size).

Just something to keep in mind the next you have that hankering for a pint of Ben and Jerry's ... and 28 pairs of shoes from DSW. [BBC]

Lo Bosworth hearts cheap bags

Guess it doesn't matter what you make these days, my pretties, as everyone is jumping on the fashion-for-less bandwagon. Case in point: Lo Bosworth, LC's best friend from Laguna Beach and The Hills (vapid, guilty pleasures of mine), was spotted last week at LAX near a luggage carousel rocking the very Hayden-Harnett for Target bag I (ahem) blogged about in back in December.

(Source: FadedYouthBlog.com)To be completely honest, Lo is my least favorite character on the show, and one of my least favorite "celebrities" in general. Perhaps it's her catty passive aggressiveness, and the fact that she acts more innocent than she is. But I digress. C-lister Lo may not be a good barometer of what everyone (especially everyone in Hollywood) is spending on clothes and accessories these days, but it's humbling to see at least one member of "The Hills" cast who publicly wears something us "poor" folk can afford. Hey, at $10,000 per episode, you know Lo hasn't backed herself into a corner at all over how much she can plunk down for a handbag of her choosing. Oh Target, you cross so many class lines! Now if only someone could snap a pic of LC trolling the sale racks at Forever 21 ...

If you want this gem of a Hayden-Harnett for Target bag from last season, all the Hayden bags and accessories are still on clearance at Target, no telling when they will sell out. Lo's canvas flight tote has now been marked down to $34.99 from $49.99.

Fashion on a Budget: La Dolce Vita

Writing is my thing, but when I'm not writing, classic films are my obsession. I especially have a soft spot in my heart for classic foreign films, and if you're at all familiar with the genre, then famous Italian director Frederico Fellini is probably one of the first notable names that comes to mind. Fellini had myriad success with a string of films in the 50s and 60s that included what was arguably his cinematic masterpiece: La Dolce Vita. If you haven't viewed it yet, I highly recommend it, but patience is key since the movie is 3 hours long and Fellini's direction and story-telling can seem confusing and scattered at first watch.

For a quick synopsis: "[Playboy] journalist (aka paparazzi) and man-about-town Marcello (played by Italian star Marcello Mastroianni) struggles to find his place in the world, torn between the allure of Rome's elite social scene and the stifling domesticity offered by his girlfriend, all the while searching for a way to become a serious writer." - from IMDB. It's a compelling look at the decadence of excess and sex in a city where some cling to values built on devout Catholic faith while others cling to booze and promiscuity.

Anyway, I've decided to run a string of posts with frugal fashion finds imitating chic fashion seen in film, and my first film pick is one of the classics, La Dolce Vita. For pricing, just click on my outfit creations:

Anita Ekberg (above) as Sylvia, a Hollywood actress visiting in Rome and the object of Marcello's desires. This picture was taken from the famous scene when she wades through the Trevi fountain in the middle of the night.


Sylvia - by BrunetteOnABudget on Polyvore.com

My modern spin on Sylvia's classic ensemble. The dress on the left is Urban Outfitters; the one on the right is Forever 21. Both very affordable. Click on the pictures to check out pricing info.

Turkish/French actress Magali Noel as "Fanny" (above).


Fanny - by BrunetteOnABudget on Polyvore.com

H&M dress (above) with red Target pumps and Angie + Lola Target clutch.


French actress Anouk Aimee (above, middle) as Maddalena, with Marcello at her side.


Maddalena - by BrunetteOnABudget on Polyvore.com

Free zebra tote

Happy Sunday, my darlings! I hope you're having a divine weekend. I just want to share a fabulous offer that I came across this morning and believe is worth passing along.

Have you ever heard of ViX? I hadn't till now, but apparently they're an expensive swimwear company that I'd normally never order from (my budget allots for $20 bikinis at Target...and that's about it). ViX bikinis run around $150 (yes, $150 for less than a half a yard of fabric) and are featured in magazines like Vogue, making them highly coveted yet inaccessible to those of us on a budget. But there's good news, especially for us animal-print lovers.

ViX is giving away free complimentary zebra-print totes just for signing up to be a member of their site. When I saw the tote, I fell in love -- it would be such nice arm candy for this summer, lazing on some beach in the south of France on a towel next to me, my toes grazing the warm Mediterranean waters. (Ok, I may just pretend I'm doing that as I'm choking on the shores of the Potomac in 85% DC Summer humidity.)

Nevertheless, here's the link. Not sure how many they have in stock, but it seems this deal just debuted: http://www.vixswimwear.com/vip-signup.asp

Fashion on a Budget: New Target/Hayden-Harnett bag line

Target is gearing up to debut their 7th designer handbag collection, this time with bag designers Toni Hacker and Ben Harnett, Brooklyn natives who founded their fashion house a mere four years ago in 2005 and have risen rapidly to become trendsetters in their genre, selling to high-end boutiques worldwide. Us girls on a budget may not be able to strut into the nearest Apres Peau and plunk down $700 (sigh) for any Hayden-Harnett goodness, but now (much like we used to play dress up and pretend we were the Queen of England ... or was that just me?) we can "play" with a budget of $25 and live luxe. Well, kind of.

The Hayden-Harnett collection will be dropping it like it's hot on December 28th, so get thee to your nearest Target when the big day rolls around to examine the goods mano a mano. Hey, I know you'll be out anyway flitting in retail land on your post-Christmas mission to lap up goodies on sale ... at least I will be. The bags will range between $19.99 and $49.99 (not bad at all), and will include oversized envelope clutches, convertible hobos and flight totes. Snazzy detailing on said bags will include distressed brown or black faux-leather and a multi-color fig-leaf printed canvas. Sweet, because in the floral motif realm, hibiscus flowers are so 1997. Fig leafs are the new hibiscus.

And now for your viewing pleasure:Mary Poppins meets the The King and I, with a fig-leaf twist (above). Interesting Thai-influenced umbrella.
This brown clutch (above) also comes in black. Love the Chanel-influenced woven chain and faux-leather wristlet strap, not sure about the exposed coin pouch. It looks like it was stuck to the outside because they wanted the product to look "different." Is this a clutch, wristlet, or actual handbag? Is defining handbags already passe?Like the previous clutch, this one (above) also comes available in black. I think it's tres cute -- very 70s hippie meets urban chic. The (faux) leather looks like it actually wouldn't look that ... faux ... in person and I love the pleated detail and gold-riveted plates in the center.
I also love this handbag, but I can't decide whether I like it better in brown or black. Regardless, it reminds me of the $1,500 Balenciaga motorcycle bag that I have coveted for, oh, the past four years and will probably continue to do so for a very, very long time. If I buy either of these, I'd ake off the shoulder strap and use the shorter handles -- it'd be cuter held than carried by your shoulder.A fig-leaf -- I love saying that -- canvas version of the above bags.

Can't decide whether I love it or hate it (above). Leather and chain straps? Check. Odd, bottom-heavy silhouette replete with studs on underbelly? Not so check. Must examine in person.Yet another handbag of the fig-leaf canvas variety. Is it just me or is this print somewhat reminscient of the upholstered wicker couch cushions on the Golden Girls living room set? If it is (and I am by no means knocking it, HUGE fan of Golden Girls, I'm a Blanche!) then I must buy it! I do love the tan leather detailing on this fig-leaf throwback to set furniture in a late '80s sitcom.

Thoughts?

Fall fashion on a budget

Hello my pretties! We're in the thick of fall (spring '08, we hardly knew ye), and it's getting cold. Not a charming cold either, like West Coast fog-rolling-off-the-Pacific-Ocean-in-Santa-Cruz-at-night cold, where the chilliest it ever gets in my hometown is light-sweater weather. (Sniff, sniff.) No, this is biting, frigid temperatures-make-me-balk-at-wearing-skirts-to-work cold, which can ruin a girl's daily wardrobe choices. Sigh.

But I refuse to give up my skirts and dresses just yet. That's what winter is for anyway, right? And sadly the winters are long and hard here in Washington DC -- okay, maybe not that bad, but for a beachbum born and raised, I may as well be living in Siberia. So I've put a few key pieces together that are fabulous for indoor, non-Eastern Block temps, yet can all be covered and belted with the perfect trench for cooler outdoor weather.



I bought tickets for Love and I to see a ballet at the Kennedy Center in late November, and I think this outfit I put together (above) would be perfect. Ballet or not, it would also "razzle dazzle them" when worn out for a nice dinner, drinks with friends or just to kick your night up a notch.

• Purple Crystal Rose ring, Butler & Wilson, $35
• Satin Bow A-Line skirt, Forever 21, $19.80
  
• Dressy halter, Forever 21, $17.80
• Multi-chain necklace, Forever 21, $6.80
• Santi Blaire fabric clutch, Amazon.com, $95 (pricey, but very easy to make from scratch. Already bought the fabric, which only cost about $4!)
• Wing Tip pumps, Charlotte Russe, $24.99

Trekking out to Old Navy anytime soon? Then be sure to try all these tres chic finds (above) on when you're ready to hit the fitting rooms! All together they cost a grand total of $104 -- a perfect price for four different, polished looks. Hurry though, sizes (as always at Old Navy) are running out fast!:

• Black Stretch Ponte-Cap Sleeved Dress, Old Navy, $29.50
• Baby Blue Belted Cowl Neck Dress, Old Navy, on sale for $20!!! (Hideous shoes they paired with the garment, but I love the dress nonetheless.
• White Turtleneck Sweater Dresses, Old Navy, $34.50
• Pink Wrap-Front Knit Dress, Old Navy, $20
  

Ah to feel Parisian all year-round! The above outfit I conjured up is fun, flirty and feminine. Stand out in bold colors when everyone else around you is bundled up in grays and blacks!

• Bonjour Eiffel Tower Brooch, KristenGrace.com, $24
• Pink Neck Scoop Cardigan, MissSelfridge.com, on sale for $18.50
• A-Line Floral Skirt, Forever 21, $24.50
• Green clutch, Forever 21, $12.90
• Black Scarf, BonPrixSecure.com, $12
• Pearl necklace, Forever 21, $6.90
• Pink heels, www.Heels.com, $49.50

Everyone needs a good pair of boots, either high heeled or otherwise. I had all high heeled boots until recently when I became obsessed with finding perfect riding boots and found a pair of Nine Wests on sale. I don't know why I'm on such a riding-boot kick lately ... maybe it's all the horse-back riding Betty Draper's been doing in her fabulous black boots on Mad Men. Regardless, above are three adorable boot ideas that I would buy if I didn't already own so much footwear. Oh who am I kidding, I just ordered those Charlotte Russe wing tip pumps. While I work on my willpower, here are the prices:

• Black riding boots, Kohls.com, on sale for $46.99
• Tan Type Z Ashley heeled boots, Zappos.com, $149
• Brown Naturalizer riding boots, Zappos.com, $109 (I like my Nine Wests a little better, but these are cute too.)

And lastly, to keep you toasty and fashionable this fall say hello two of the cheapest yet quality trenches on the Web (above), both on sale right now at the Gap. I want both!! Must....not.....succumb.......

• The "Classic Trench" (on left), Gap, $119
• Long Plaid Trench (on right), Gap, $119
  

Iope that offered some help with your up-and-coming shopping trip. Whenever you feel down and out about the financial crisis, the economy, your future and ... well ... your bank account, remember that it doesn't take a million bucks to look like a million bucks.

In fact, I don't think being on a budget ever looked this fashionable! ;)

I'm (finally) on Twitter!

Well, no matter how hard I've tried to resist it, I've finally succumbed and fallen down the rabbit hole: I have a Twitter channel! (Cue eye-roll of finally being peer-pressured into joining 21st century.)



Part of the reason I was so hesitant to sign up was because my addictive personality usually gets the best of me in more ways than one. Yes, watching marathons of The Hills for days at a time, spending sleepless nights looking for the best fashion deals online and studying my facial pores longer than the average person all fall under the "obsessive" category. Now I guess I can add "Twitterer" to the mix!


I think it's the perfect up-to-the-minute way to keep all you chickadees informed of the latest financial news, deals and tips. Plus, I just found out that "blogging is so 2004." God, I'm old.


Anyway, here's my channel: http://twitter.com/BrunetteOnABudg. I also put a feed in the right-hand column of my blog. (Yay for technology.)


I'd love to follow all you guys -- let me know if you have a Twitter channel!

When Frugal Becomes Cheap

(or, "Sometimes You Have to Spend More to Save More")

A few weeks ago, my good friend got a hankering to buy a new handbag. Nothing fancy with all the bells and whistles of a Gucci couture bag. She simply wanted a well-made, fashionable leather bag that would hold up better than her previous Target bags had fared over the course of only a few months.

So she set out on her quest, knocking on the door of every website on the web, desperately seeking not Susan, but a somewhat stunning, quality handbag sans the stunning, unaffordable price. I empathized with her purse plight. We're a lot alike in the frugality department, and both thrive on finding the best deal possible (maybe that's why we're such good friends!). Initially she wanted a Coach bag ... lower-end designer, a pinch more affordable than, say, Marc Jacobs, but still quality. Even though she had the money saved up for said handbag, the $350 to $400 price tag chilled her to the core when push came to shove. So she kept searching. The more she searched, the lower her price point became until finally she inevitably found herself in the below-$100-range, looking at handbags made not of leather, but what looked to be parachute vinyl and faux croco-pleather.

She had lost sight of what she wanted: A quality leather purse that could withstand the wear and tear of (at least) a few years. Instead she had become consumed with the number on the price tag alone. The cost, and not the value, had become the determining factor in her what-turned-out-to-be-vinyl-laden voyage.

Which brings me to the topic du jour: When is that line crossed when the art of frugality becomes just plain being cheap? How do you know when you've become too frugal? Is there really such a thing?

I think that frugal people see the inherent value in potential purchases, whereas cheap people only see the cost.

Lets face it: It feels great when you find a bargain, be it in the clearance bin at Circuit City, a special deal on flat screens at Target, or a mega sale at Banana Republic. But finding a bargain can become a habit -- one that may not always be the most cost-efficient over the long term. Case in point: I always buy my most frivolous purchases on sale. These include DVDs, books and CDs, where I turn to the Amazon marketplace and usually score any item I want for under $10. Also under the frivolous purchase category are trendy clothes that I want for cheap (usually bought at places such as H&M, etc.), coffee when I'm on the go and those yummy spiced-cinnamon-scented candles that remind me of Fall (they're a guilty pleasure). These sort of purchases are illiquid and don't hold much value.

I've conditioned myself to always find everything at the cheapest price possible -- it's become an exciting challenge of sorts, and gives me a fabulous feeling of pride and accomplishment when done right. This is great for when I buy knockoff jewelry I don't care about losing or some shirt I know will go out of season by Winter, but unfortunately, applying this mentality to even the slightly bigger purchases in life can end up costing more in the long run. How? Well, by buying the cheapest, say, laptop now instead of investing in the mid-priced one, you invite the probability of expensive problems occurring in the short term and the likelihood that the laptop will need to be replaced sooner than one with perhaps a better brand name or better parts. The same could be said for vehicles, vehicle maintenance, kitchen appliances (such as coffee makers, blenders and refrigerators), or (ahem) quality handbags.

Notice that I used the word "investing." These types of purchases should be viewed as investments into securing at least the next few years as dependable and maintenance-cost-free. Granted, if Home Depot is having a 4th of July sale on refrigerators, then by all means take advantage of those savings padded with the premise of red, white and blue. But don't wander into BestBuy and purchase a $20 Apex DVD player just because it's the cheapest find. Why? Because you'll probably have to replace it by year's end after it's eaten your copy of The Devil Wears Prada and refuses to give it back, even after repeated verbal pleas, coaxes and eject button presses. (I speak from personal experience.) Bargaining with said generic DVD player also doesn't work. ("If you give me back my Devil Wears Prada, I'll trade you with Love's copy of Minority Report. ... No? ... Sigh.")

So that $20 DVD player could actually cost you more in the long run, with the initial $20 cost on top of whatever you pay to either have it fixed or replaced with a slightly-more-expensive, better-quality one.

Going back to my handbag-hunting friend, if she invested in a more well-made, "pricier" handbag, her need to buy a new bag every few months would diminish. Say she bought a leather Dooney and Bourke bag for $300. The price seems shocking to us savvy savers, but considering that this isn't the type of purchase we make on a regular basis -- and it's one that will literally last years (think 10 to 20) -- it's okay. Really. After you've gotten over the initial sticker shock, consider how much you'd spend on a handbag from Target or Nine West, and how often each cheaper bag would need to be replaced.

A $50 handbag will probably last two years, on average. It varies from girl to girl. To replace it with new bags, whether because of wear and tear or because it's plain not in style anymore, would cost $500 over the course of 20 years. And let's face it, ladies: The cheaper the bag is, the more you feel "okay" about buying others to add to your growing collection of cheap bags. If you bought the more classic, well-made Dooney and Bourke bag for $300, that's how much it would cost. Plain and simple. (I recently bought a D&B giraffe bag as a birthday present to ... myself ... in April, and believe me -- the leather and stitching will definitely carry me into at least my 40s, if not beyond!)

That saves you at least $200, if not more due to the psychology of buying things cheap. What do I mean by that? I believe we feel that when we save money on items, we feel like we've earned the right to buy more ... we saved by finding that fabulous deal in the first place, after all. This, of course, negates the whole idea of finding the cheapest buy. But it feels positively marvelous leaving a mall or store with bags of goodies versus one bag with one or two items. Like we've gotten our true money's worth. But have we, really? I think we've gotten too used to the feeling that we need more items for our money versus less. Quantity, in essence, has become our mantra over quality.

So don't just look at the cost on the price tag. Look at how much your purchase will actually cost you overall. It may be a higher price upfront, but after you've gotten over the sticker shock, know that it could end up saving you more money in the long run.

Fashion on a Budget: Dress up your life

I'm not sure how you all feel about my fashion posts, since this is a finance site more than a fashion one, but am I posting them too frequently? Too infrequently? Is it strange going from reading about Forex to what to wear on a budget? I kind of fancy the finance & fashion angle, but let me know what you think! It'd be great to get feedback.

Anyway, Love and I were at Baja Fresh yesterday (I'm a sucker when it comes to their fish tacos), and I realized after we sat down to munch chips at a table near the salsa counter that more than a few people were looking at me. I wasn't sure why. In fact, I assumed it was because I had salsa on my face or something to that degree. I admit, my love for Mexican food can get a little crazy at times. But after quickly checking with Love that my face was sans salsa, I realized they weren't looking at me per se, they were looking at my clothes. More specifically, my new patent dark brown reptile skin clutch, and sleeveless, full-skirted khaki dress with dark brown belt cinched at the waist (overall very adorable, very 1950s). When I say "they," I obviously mean the women and occasional fashion-forward gay man ... and I realized they were smiling -- they loved the outfit ... and yet they all wore sweat pants and shirts.

Well, the first thing I wanted to do was stand up on the table and rouse the entire restaurant to dance choreographed behind me as I belted out the lyrics to West Side Story's "I Feel Pretty" into a salsa ladle (with the line of cashiers singing backup vocals, of course) -- jazz fingers and so on. But then I realized that every single person in that hovel of taco enticement could be dressed just as well. All it takes is a little effort and you, too, can "feel pretty." (Backup dancers not included.) Lots of money or even lots of time are not prerequisites to looking sharp. The best dressed people are the ones who make it look effortless and don't spend a fortune on every outfit.

I understand that sometimes ... many times, in fact ... it's comfier to throw on your nearest tank top and jeans and say "whatever" to the whole masquerade. But I truly believe that your exterior can highly affect your interior. For example, if your apartment or house is always cluttered, and you have problems clearing your mind, your outward clutter may very well be a personification of your psychological state. For that matter, if you're not particularly feeling that great about the weight of your debt, is dressing like your current mental state (i.e., stress) going to help you out of it? Of course not. Granted, simply dressing the part will not solve any debt problems, but it's one small step in becoming the smart, savvy money honey we all know you are. Besides, there's just something about wearing high heels that makes every woman's inner confidence stand out with every stride.

With that in mind, here's a fabulous outfit I pieced together, courtesy of Polyvore (which allows you to create "outfit collages" from different retail sites on the web). This is a very no muss, no fuss outfit that takes a second to throw on but makes you stand out from the crowd in a marvelous way, even when just running errands:



American Eagle sunglasses: $19.50
Target headband: $12.99
Debenhams.com handbag: $40
Old Navy dress: $34.50
Target pumps: $24.99
Claire's pearl earrings and necklace: $10 (total)

Not too shabby, huh? And of course the more expensive purchases, like the handbag and sunglasses, can be found cheaper if need be.

The next outfit idea is a great French look for drinks, dinner, or even just out to get coffee on a saturday night with friends:



Forever 21 dress: $27.80
American Eagle sunglasses: $12
Forever 21 neck scarf: $5
Forever 21 clutch and earrings: $12.99 and $4.99, respectively.
Gold-plated Etienne Aigner ring: $24
Sergio Rossi pumps: $200 (Expensive yes, but you can always find a good imitation pair for cheap.)
Newlook.com cardigan (optional): $18

Confession: I did buy this herringbone dress last week, and let me tell you, it's fabulous! For being so cheap, it's made remarkably well. I know what you're thinking: This is way too dressy to go out for coffee in, but there's a difference between too dressy and sharply polished. Are you wearing a ball gown to Starbucks? Didn't think so. That would be too dressy. This is sleek, sophisticated and poised.

The whole point is to mix and match your pieces to save money, so if you wanted to wear this dress during the day, match it with a shirt underneath to give it a conservative edge:



GoJane.com pumps: $22.99
Forever 21 necklace: $5.80
Forever 21 headband: $2.80
American Eagle sunglasses: $12.99
Target Isaac Mizrahi wrap trench coat: $22.49

As I said earlier, cheaper substitutes can be found for many of the accessory pieces.

Thoughts?

Does money buy happiness? In short, yes

There's some questions that never fail to inspire heated discussion as they pass down through the ages. Does money buy happiness? What is the meaning of life? Why does Sinead O'Connor own a blow dryer? (Name that reference!) We may never know the answers to the latter two inquiries, but the first always elicits one of two responses: either a "yes" or "no." It seems like many are on the "no" boat, especially those of us who don't have a lot of money to begin with. It's as if by answering "no," we somehow feel emotionally richer, and above someone who would even think to answer "yes." There's solace in at least feeling "rich" in that way.

But the problem with the "no" response is that it's usually anchored to some strange belief that happiness can be found in the material possessions in our lives. Why have we been so conditioned to believe that a new car, a Gucci handbag, or 62-inch flat screen TV will somehow magically make us happier? Or, for that matter, when did we begin attributing inherent "happiness" to the more expensive, out-of-reach items in the marketplace? Is it simply because we can't have them, or is it that we covet the distraction that comes with them? One of my best friends believes that money doesn't buy happiness, but it buys distraction. According to him, "you can distract yourself from your unhappiness with 'toys' that keep you numb. Happiness is internal, not external."

But when I'm asked this ever-pervading question within the finance world, I respond with a confident "yes!" I do believe money buys happiness, but happiness to me is not the material possessions in my life, it's the time my money buys (also known as my personal freedom). For example, take one of my favorite hobbies: traveling. Happiness is not the airplane ticket itself, it's the days, weeks, or months my money affords me to use traveling in the first place.

Happiness in a handbag, for instance, is fleeting ... it's a distraction that doesn't sustain itself. Sure, it's fun and exciting to buy nice things for yourself, but I would say that the happiness people affix to these and other big purchases, such as Porsches and iPhones, isn't so much happiness as it is the distracting excitement of attaining something elite and exclusive. Better known as the "rush," this feeling quickly subsides the longer you've owned the item.

A recent article I read in the September 2008 issue of SmartMoney (the financial magazine owned by The Wall Street Journal) reaffirmed my belief that money does buy happiness. According to the magazine, "the rich really are different." Harrison Group vice chairman Jim Taylor said "there's no group in America that's happier than the wealthy," and, said the magazine, about 70% of millionaires say that money has "created" more happiness for them. A new Wharton School of Business study quoted that a higher income correlates with higher ratings in life satisfaction. But, the magazine said, "it's not necessarily the Bentley or Manolo Blahniks that lead to bliss."

"It's the freedom that money buys," said one coauthor of the study, which also found that rates of depression are lower among the wealthy. And, Rand Corporation senior labor economist James Smith also said that the rich tend to be healthier than the rest of the population -- health and happiness, he said, are as closely correlated as wealth and happiness.

With that said, there are many wealthy people who have many fun toys, but is it the toys that bring them happiness, or is it the time they've earned to play with said toys? To answer the over-arching question, you have to ask yourself what happiness means to you. Is it lavish wardrobes, the newest iPod, or anything else you can hand over your credit card for? Or is it spending your time and life the way you see fit, i.e., hanging out with your family, traveling, and perhaps listening to music via your wonderful iPod?

I'd love to own as many shoes as Imelda Marcos, but what's the point of owning excessive amounts of footwear if I never have the time to enjoy them, especially with the people I care about?

Do you think money buys happiness? More specifically, what is happiness to you?

Learn the lingo: Liquidity

So you wanna invest in the stock market ... but you still can't speak the language. Well, ladies, if you've been reading the past couple months, I've touched on some essential terms you need to know before you depart on your foray into stock market bliss. Key word being "some," though, meaning there's a whole lot more to learn within this realm.

Which brings us to liquidity. I know, just the sound of it makes you shudder, probably because you're thinking it has some long-winded, snooze-related explanation -- and if you've already gotten this far in life without it, why learn its meaning now? I don't blame you for glazing over these mundane, "liquidity"-related details, but don't hit the snooze button just yet! However dull and boring the terms sound, if you're on the path to becoming financially savvy, you'll need to learn to speak them!

So, back to liquidity, yet another another one of those investment words that sound more complicated than they truly are. Liquidity is basically how quickly you can sell something without taking a loss. Simple, no? To put it in even plainer terms, it's also known as marketability. Say you owned an asset such as a car. How liquid your car (or asset) is depends on how fast you can turn it into cash. So if you buy a car for $8,000 and sell it soon after for the same price or more (if only this happened in reality!), than it would be a liquid asset. If, on the other hand, you had to slash the price to, say, $7,000, and it took longer to sell, it would be considered an illiquid asset.

It's all fine and fabulous when you're talking about personal assets, but how does liquidity come into play in market speak? Easy! To stock market investors, liquidity translates into whether or not a company will experience giant price fluctuations in its stock due to large volumes being traded daily. Stay with me, I promise this gets easier! Let's say you want to invest in a small company who has a low daily volume (or amount of stock bought and sold in the market by investors) of 20,000 shares per day, which is pretty low considering there are many stocks with daily trading volumes of millions!

This smaller, low-volume company (with, for example, five investors buying and selling per day within it) would be considered illiquid and volatile, because any large buy-in by this group of around five could increase its stock price exponentially. This matters to serious investors such as mutual fund managers, who buy millions of stock at a time and don't want their single purchase to artificially inflate a stock's price. This is called market liquidity.

And then there's balance sheet liquidity. (Try dropping that term at your next cocktail party!) A company's balance sheet liquidity is basically any assets a company has (investments, property, bonds, etc.) that can be turned into cash at a moment's notice. Generally a company with high balance sheet liquidity isn't that risky to invest in since they can quicky come up with cash in exchange for their assets if they're ever in a bind. These types of companies usually grow slower than most, though, because assets are kept in storage (so to speak) in case of emergencies, and not outrightly used to generate profits.

Last but not least, liquidity is directly related to a company's overall value (much like the overall value of the car you were going to sell that I mentioned earlier). Take a company that sells scrunchies called Scrunchies, Inc.*

*This is purely for example purposes, it would be highly unprofitable and embarassing in 2008 to A.) sell scrunchies in the first place, and B.) name your company Scrunchies, Inc. Yes, even I used to wear them, but I was an unsuspecting kid in the heyday of the early 90s.

So you're considering investing in Scrunchies, Inc., but you see that it makes most of its profit by, well, selling scrunchies. Being the savvy investor you are, you know that scrunchies may have been popular at one point, but their 15 minutes of fame are up -- they just aren't in demand anymore and people aren't buying them. Would you invest in a company who's products aren't likely to generate that much profit? No, you wouldn't! And that, all you brunettes, redheads, blondes -- or whatever you are -- on a budget, is liquidity. I know, it's a marvelous thing!

Keep it in mind next time you consider investing in a company. Or even if you're just buying a personal item that you hope will hold its value, such as a car or a Louis Vuitton bag. You may think assets such as designer handbags may be good investments, but just how liquid are they? How long would you need to hold on to a bag to sell it used without losing a profit? If you were ever in a pinch and needed to sell it ASAP for cash, would you be able to quickly without losing money? These questions are a good guage of how liquid or illiquid a large purchase will be, and whether or not it fits well within your budget and investment plan.

What does that iTouch or Fendi really cost?

Here's a startling fact for all you Starbucks aficionados: Did you know that if you bought a latte at $3.78 a pop every day for a year, it would cost you $1,332.25? Not bad, especially since many of us -- me included -- rely on a caffeinated kick start at the beginning of every day. But your daily caffeine drip habit starts getting expensive when you consider that if you invested that $1,332.25 in the stock market, it would become about $39,914.11 in 30 years (assuming a yearly realistic return of 12% on your money). 

I know. It sounds so sensationalistic and you're probably rolling your eyes right now, thinking that any purchase in your life could be put into such terms, and so what? You like buying a coffee every morning, and you're entitled to spend your money on whatever makes you happy, right? I don't blame you for having vices; we all do. (One of my many money-spending habits is buying lip gloss. How many tubes of pink strawberry or iced mocha lip gloss does one girl need? Just ask Target, since I can never seem to leave the store without at least one new lip gloss.) 

Anyways, the point is that I know where you're coming from, and I'm in no way trying to curb your spending. I don't condone denying yourself of what you like, and if that includes buying a tube of lip gloss every weekend, then more power to you. But when you're standing in line to buy that latte, don't think of it in terms of how much it individually costs ($3.78), think of it in terms of:

• What it really costs (in the long term). Think of the returns you could lap up if you denied yourself a Starbucks fix every other day, or a month or two at a time, and invested your latte dollars instead of drank them.
• What is the total cost of ownership of said latte?
  

If you're making $50,000 per year, one latte every now and then will not break the bank in terms of your total cost of ownership, or percentage of your overall income. But if you're making $30,000 per year, a year's worth of lattes ($1,332.25) quickly becomes 4.44% of your annual income. Kind of shocking, huh?

Okay, enough with the latte analogy. Total cost of ownership really becomes fabulous when you start using it to decide about a large purchase, such as a designer Gucci or Prada bag, a new Audi, or an iPhone or iTouch. Before you hand that credit card over (or even better, cold hard cash!) do you really know what your new iPhone will cost you?  

Let's say you make $35,000 per year (about $29,000 after taxes). A $200 iPhone would only be 0.69% of your annual income. Not bad, right? But wait till you start considering the big purchases. With that same income:

•  a pair of Rock and Republic jeans is almost 1%, 
  
• a $600 flat screen TV is over 2%,
• a $1,620 Louis Vuitton bag is about 5.6%,
• and a used $18,000 Honda s2000 is  62% of your annual salary.

I gave a salary of $35,000 because stats show that it's usually 20-somethings in this income bracket that tend to spend the most money on the excesses: nice cars, designer sunglasses or clothing, the newest tech gadgets and spring break trips to Cabo San Lucas.

But contextualizing costs in terms of a total percentage of your income really puts things in perspective, especially considering that the first 3 of these 4 items are considered "frivolous" and not necessities. (If you need a car, even the 4th can be substituted for an older model, cheaper substitute.) Again, I'm not saying don't spend money on what you like. If you love buying 7 for all Mankind jeans (as I do) or buying a latte with the occasional pastry, then forge ahead with your caffeinated denim endeavors -- don't deny yourself of what you love.

But if you're going to be a gal on a budget, just be conscious of what your purchases are truly costing you because it's never just the number on the price tag. There's a difference between being cheap and being frugal. Cheap people just look at cost; frugal people look at value. No one likes being cheap, so forge ahead frugally!

"A Netflix for purses"

In honor of the Most Important Movie of our Time being released across the country tomorrow night (Sex and the City, yes, I already bought tickets), I thought it'd be fabulous to highlight a new startup company that may or may not be changing the face of fashion, but definitely pacifying all Carries-in-training -- especially those on a budget. The company is called Bag Borrow or Steal (http://www.bagborroworsteal.com/), and I think its premise is brills, especially for all us savers who still want to be fashionable. I say carpe diem whenever you can bypass digging through a clearance bin, especially if that bypass leads you to a practically new Coach bag (complete with monogrammed silk Coach bow) for $60/month, or $20/week.

Bag Borrow or Steal truly acts as a "Netflix for purses" (what it's alluded to as in the SATC movie), in that it posts an arsenal of designer purses, along with designer sunglasses and jewelry, at different rental rates on their site, from low-end (Coach, Dooney and Bourke) to high-end (Fendi, Balenciaga). The only snag is that on top of the rental rate for each bag, you have to pay a monthly or annual fee upfront to be a member. But the fees aren't as extravagant as the handbags, ranging from a one month membership of $9.95, to three months for $19.95 (or $6.95/month), to one YEAR for $60 (or $5/month). Five dollars per month for unlimited access to a treasure trove of designer goodies I was only planning on accessing well into my mid- to late-30s? Let's just say this Brunette on a Budget is savoring every bite of this tantalizing morsel of information.

I've always wanted a Chloe Paddington bag. Like the Burberry trenchcoat I want oh-so-bad, the Paddington bag has always been near the peak of my extravagant interests. With Bag Borrow and Steal, I don't need to spend the $2,000 on its pricetag, but rather, I can relish in tasting it paired with my outfits I've envisioned matching it with. And after I've gotten my fix (I bore easily, this is why a tattoo would be all wrong for me), I can simply send it back -- much like a Netflix DVD -- and "try on" something else I've always wanted (Fendi spybags and Burberry Sunglasses, anyone?).

I love this idea because it makes everything we read about in fashion magazines more attainable and allows us to play without defaulting on a car payment or putting off buying a house. No, I'm not condoning partaking in such a site if you're essentially living paycheck-to-paycheck, or if your debt is spiraling out of control. But at the end of the month, if you've already paid yourself (including investing a fraction of your wealth) and your bills, I think it's OK for a girl to treat herself to something nice.

For some that might be a night out on the town; for me it's a week with a Paddington bag.