No more Netflix via your mailbox?

When I'm having a bad day, nothing cheers me up more -- retail therapy aside, of course -- than popping open my apartment mailbox and finding a shiny, bright red Netflix envelope waiting for me to rip open and enjoy. But what would I, and thousands of others who might have also had a bad day, do if those fabulous morsels of cinematic delight stop frequenting our mailboxes cold turkey?

Though the red envelope may soon be a way of the past, it doesn't mean Netflix will be abandoning you at least in the next year (sorry, Blockbuster). According to reports from CNBC today, Netflix is considering a service which only delivers movies and television shows through Internet streaming, skipping its traditional mail-order business. Well that's all fine and dandy, but what about those who don't like watching all movies on their laptops? I was fortunate enough recently to buy a giant flat-screen tv (complete with the appropriate laptop hookups) with a Christmas gift card from work, but I know what it's like to own an older boat anchor of a television that only connects to a.) the wall, and/or b.) a dvd player.

Obvi there are pros and cons to this situation, like Netflix will have to spend $70 in IT infrastructure changes to get the plan implemented, but will save a ton of money on shipping, envelopes, dvds, etc. But what about my personal satisfaction of tearing open a familiar envelope and inspecting my (borrowed) treasure inside? At this point, to only offer Internet-streaming Netflix movies is widespread speculation, but Netflix CEO Reed Hastings has said little to ease my concerns. And speculation of this variety tends to end up being true. Look at the Brad and Angelina rumors during the filming of Mr. and Mrs. Smith.

I know, I know, this is the way of the future. Nothing needs to be on paper, dvd, or disc anymore, but I like having something tangible -- a book...newspaper...dvd....abacus..... Sigh, I am officially old. [CNBC.com]

Fashion roundup: High-waisted pencil skirts

Back by popular demand, I'm doing another post on high-waisted pencil skirts. Lots of people have been asking me how to wear them, what to pair them with, etc., so I sifted through endless pages on Polyvore.com, compiling my favorite looks. Many of the pieces used in these sets are a steal, and others are, well, a bit out of our price range. Nevertheless, they serve as good examples of what to look for when you're bargain shopping and need inspiration as you piece together your own high-waisted pencil skirt look! Here are my fave looks -- enjoy....

How to Wear High Waists - by Nina's Closet on Polyvore.com


Untitled - by anettee_ on Polyvore.com

Remember this fact: - by ♡•Simply Moi•♡B Bck N 5 Hrs on Polyvore.com


Senza titolo - by matelda on Polyvore.com


Heaven Smiles Up To Me When I See Your Face - by xxshellxx on Polyvore.com


112 - by Winnie2308 on Polyvore.com


Brightness - by xxshellxx on Polyvore.com


May 6, 2008 - by colormelove on Polyvore.com


Untitled - by andreab09 on Polyvore.com


Untitled - by labrama on Polyvore.com

Do you have a love/hate relationship with money?

Many of us may consider our relationship with our money a love/hate one – but it doesn’t have to be that way. Just like any other relationship in your life, in order for it to be a success, your relationship with money requires a good attitude, consistent communication and an ongoing commitment.

The CEO and COO of Women & Co., a fabulous Citigroup-owned website all about personal finance for women, recently wrote a list of solutions to help you separate your money and emotions, and forge a healthier way to relate to your finances.

To get started, first assess how you feel about money. Begin by asking yourself these questions that may determine the psychological factors driving your financial behavior:

• Is money a sign of power or control in your relationships?
• Do you regularly put off budgeting? Saving? Investing?
• Do you use money to boost your self-esteem?
• Does the “rush” of making a purchase drive your spending?
• When growing up, did the subject of money or budgeting start arguments?

If you answered “yes” to any of these questions, it may be time to re-evaluate your attitude toward money and budgeting. A healthy attitude is one that enables you to indulge now and then, but also helps you prepare for unanticipated expenses that inevitably arise.

Here are some key ways from Women & Co. to get on a healthier track with your personal finances and stay in control of the relationship:

• COMMIT to your budget. Commitment is a key element when it comes to successful budgeting. Be realistic about your spending habits, and set a realistic spending limit for yourself. Monitor your budget and spending habits closely and regularly, and be prepared to change your budget to adjust to any lifestyle changes that may occur, whether these changes are for the better or worse.
• COMMUNICATE. It is critical that you discuss your financial situation with your spouse/partner, financial advisor, and most importantly, yourself. Share any feelings or experiences that may shape your attitude towards financial activity. Communicating your financial flaws and past mistakes will help you determine what will be the most effective way for you to save, spend and budget from this moment on.
• BE INVOLVED. It is important that you are involved in your finances, and if you have a spouse/partner, you both should be on the same page with creating and maintaining a financial game plan. Being involved not only means you have a plan, but that you’re also checking in with yourself and each other to monitor how it’s going, and making any adjustments along the way, as needed. Remember, knowledge is power, and by knowing all the financial facts of your life, you will have a much better sense of control.
• HONESTY is the best policy. Be honest and realistic about your goals, as well as the sacrifices you’ll need to make in order to meet them. Maintaining a budget and financial plan will be extremely difficult if there’s any denial or disagreement with your loved one about money. It is possible that what you consider a “want,” your other half considers a “need.” Be honest about what you want, need and expect from your budget, and understand what meeting those wants, needs and expectations will require from you.

...And milk prices continue to fall

We remember the days when buying a gallon of milk was about as much (if not more) than a gallon of gasoline. Shudders, while flashing back to daydreams of filling car up with milk, eating bowl of cereal with crude oil. Thankfully milk prices have fallen, thanks to waning demand for the product. But wait -- you ask -- does no one drink milk anymore with cookies? Eat ice cream? Make pudding? It's not quite that dire...yet.

Demand has fallen for milk because of the limping economy (i.e., people are buying cheaper alternatives), and this in turn has deeply hurt dairy farmers, which are selling their dairy cows in droves to slaughterhouses to make up for the lack of money coming in from unsold milk.

As prices are falling, feed costs remain high, and farmers are getting back only about half of their costs. Obviously, that's not sustainable. As a result, nearly a fifth of America's 9.3 million dairy cows might be turned into steaks and hamburgers this year.

Things I don't want to think about the next time I my quarter-pounder at In 'N Out.

The situation is only projected to get worse:

In 2008, the average price of 100 pounds of milk traded at the Chicago Mercantile Exchange was $17.44. Now the price is just above $10, and most observers think it will go even lower. In December, the price of commodity cheese fell by 40% in just a couple of weeks.

So what's the best fix for the milk melodrama? You guessed it -- a bailout! This, in the form of stronger price supports and government purchases of surplus milk. Think bailout prayers will be answered? [TheBigMoney]

Gas, once again, on the rise

Gas is nearing $2 per gallon -- again.

After the horribly high prices to fill up our Hyundai last summer, I didn't think gas would ever decrease in price again. (Yes, we drive a Hyundai. Thankfully, I had left my SUV back in California.) After all, if people (albeit a smaller amount) were willing to shell out over $4 per gallon, why would gas prices ever drop again? Well, then the whole demand issue came in to play, prices came down, we wiped the stress-induced sweat from our brow and happily drove our Hyundai at half the price.

But gas prices have reversed their downward-to-flat course and are now creeping back up toward $2. It always seems like when you least expect it, you're shelling out $40+ dollars at the pump and lamenting about the "good old days" when gas was only $1.50. Now is an even worse time for these lamentations, what with more people laid off than in recent history and struggling to save what little they can from unemployment.

So will the prices continue to climb? This time of year is generally when oil refineries perform maintenance on their plants, so we should take that into account, as they need to cover their costs, but as gas prices are rising, the price of a barrel of crude oil is sinking -- to the recent tune of about $35/barrel. Why the disparity?

"I think what you're seeing now is a backlash of a period, from the end of the summer until the end of the year, when refiners were selling gas into the consumer market at a discount to crude oil," Ben Brockwell, director of data pricing for OPUS, told CNNMoney.

Brockwell said refineries lost money last year, despite the surge in gas prices. The refineries in the latter half of 2008 were paying top dollar for oil, and then producing gasoline in a low-demand economy, he said. Now, refineries are producing less, driving up prices in even this low-demand economy, while stockpiling discount oil, he said.

The good news is that gas prices probably won't rise to the heights they saw last summer, the bad news is those extra few dollars to funnel into your tank will need to be accounted for in your budget. Here's to cleaner energy.

Compound Interest and the Rule of 72

It's rumored that Albert Einstein once said that "the most powerful force in the universe is compound interest" -- a bold claim, considering most are unaware of the virtues of such a phenomenon. But to truly understand this "8th wonder of the world," or so Einstein called it, you need a basic understanding of what it is, like everything else in finance!

If you're saving, compound interest is literally your best friend. Granted, you may not be able to call it on the phone to grab the occasional lunch with or gossip with it over a manicure about a pair of shoes you saw at Bloomingdale's, but in terms of your money, compound interest really is your new BFF. It's like the Ethel to your Lucy, the Robin to your Batman, the Nicole Ritchie to your Paris Hilton. Okay, enough with the examples (especially that last one).

According to the Merriam-Webster Dictionary, compound interest is defined as "interest computed on the sum of an original principal and accrued interest." Zzzzzzzz (cue crickets chirping in background). "What in God's name does that mean?" you ask -- either that, or you're already nodding off with boredom at your computer, and if the latter is the case -- snap out of it.
Compound interest is a simple and painless way to make tons of cash back on your savings. How? Well, it's simple. Compound interest is money that you gain not only on your initial investment, but also on the interest that's already accumulated on it. If it sounds confusing, here's an example to assuage your "huh?":

Say you have two 22-year-olds . . . let's call them Simon and Garfunkel. Simon makes the most of his 20s and saves and invests $2,000 each year until he's 31, then stops. Lackadaisical Garfunkel, who enjoyed his 20s spending money instead of saving, starts investing $2,000 per year starting at 31 until he's 65. Both have identical rates and both allow interest to grow. Forward-thinking Simon will earn $50,000 more than Garfunkel by the time he's 65, even though Garfunkel will have put $50,000 more into the account over an added 25 years.

You know that saying "a rolling stone gathers no moss?" Well in the case of compounded interest it does, and it's a good thing. Compound interest acts like the moss your savings accumulates throughout the years. Shine on, you crazy diamond!

The two most important factors to remember when daydreaming about compound interest on a sunny afternoon, are:

• Time -- The younger you start saving, the more time your money will have to grow, or compound. Time really is on your side, or so said the Rolling Stones.
• Rate of Return -- What kind of rate of return is your investment giving back to you? Historically, the stock market yields about 11% per year, savings accounts give you about 3% per year, and so on. Rate of return is important because with the total amount that your money grows each year, the amount that is added from interest grows along with it. So it comes as no surprise that the higher the return rate, the faster your money grows.
  Unfortunately, finding a good investment with a high rate of return isn't as easy as looking into the underbelly of a Magic 8 ball for the answer. But there is a trick called the The Rule of 72 that you can keep up your cashmere sweater sleeve next time you're determining how good or bad a potential investment will probably be.

If you want to figure out how many years it will take to double your money at a certain interest rate, all you have to do is divide the rate into 72. Say you want to see how many years it will take to double your money with a 6% interest rate -- you'd just divide 6 into 72 and get 12 years time to double your money. Come for cocktails, stay for the deviled eggs, chickadees!

The Rule of 72 also works in reverse. If you want to see what kind of interest rate you'd need for a set amount of years to double your money, you'd take the number of years (let's say 8), divide that number into 72 and poof! You'd need a 9% interest rate to double your money in eight years. The Rule is fabulously simple yet timeless, just like a Chanel suit. As long as the interest rate is less than 20%, it's generally quite accurate.

With compound interest, just remember that the name of the game is to invest young and often (time is a key player here), in an investment with a high rate of return. Picture your money as a snowball you start patting together in your 20s. The older you get, the more snow gets patted onto it that by the time you're ready to retire, the snowball is so big from years and years of fresh snow, that it's more of an igloo than a snowball. And it will be ready for you to call it home!

Suze Orman, financial messiah?

Do you like Suze Orman? She's pleasant enough to watch and soothing to listen to, especially when we're stressed about money and need extra encouragement. You know, those "count to 10 and breath" moments when we glance at our bank account balances and our hearts sputter in our chests. Suze's calm, you-can-do-it prose often centers us again...but is the "bottle-blond former waitress and self-described '55-year-old virgin'" just a farce?

"Why the masses continue to invest their faith in Suze Orman in the wake of a financial meltdown she never saw coming is a more timely question," suggests James Scurlock, columnist for TheBigMoney.com (a favorite site of mine).

According to Scurlock, Suze has no patience for statistics and often sounds off stats that sound good, but have no real basis behind them. These include her love of "dollar cost averaging," (buying the same stock over and over again as it falls), which is a favorite investment method of hers, and that the stock market returns 11% per year ("I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care," she once told the New York Times.)

One fallacy in particular -- that the reason we are in debt is due to our own psychological causes -- infuriates Scurlock, as a myriad of real studies have shown that personal bankruptcies are caused primarily by catastrophic events like divorce, job loss, and, above all he says, medical bills and that most of us are struggling with a gap between our income growth and the soaring cost of necessities like housing.

Who is struggling these days, according to Suze? "

People who grew up without much money and later earn a comfortable living sometimes spend too much to make up for what they didn't get as children. ... People who feel entitled to the good life, or are unconsciously copying a mother or father who lived beyond her or his means. ... If you feel the need to impress people with what you have rather than with who you are, you are at high risk for credit card abuse.

"This from a woman who spends $500,000 a year chartering private jets and who sells 'Cruise With Suze' packages on an Italian luxury liner. (She has also hawked for GM, claiming that leasing a luxury car — you know, the kind that people drive to impress others — is a terrific financial decision," says the article.

Suze, it seems, has been lying to us:

What we're supposed to love about Suze Orman is not her knowledge and certainly not her prescience, but her ability to turn circumstances to her advantage, the resilience of a waitress-turned-bank-vice-president who squandered a great gig only to make a fortune off of you and me by having the courage to be rich. Despite her obvious flaws, we admire Suze so much that millions of us will fork over more of our dwindling dollars for her new [$50] FICO kit because she now assures us that a high FICO score is the key to our financial future. True, her previous book promised us that we would never be a financial victim again. Not only that, but we would receive the life we deserved, which sounds suspiciously like one of those insidious credit card offers, but whatever.

"When was the last time an evangelist predicted anything correctly or the phone psychic told you something that you didn't already know? So what if we cannot retire because Suze has been telling us to buy stocks and trust the fat cats? Suze possesses the courage to be rich. The rest of us are suffering from a collective emotional roadblock," posits the story.

Ouch. There are many bitter truths to Scurlock's argument, especially because of this: What do any of us have to show for the years we've been following Suze? Aside from the fact that she has no real know-how in the finance world, she has created a mega-brand around her name and niche, and has used your disadvantages to her advantage. Suze has made millions of dollars feeding off our insecurities and is laughing all the way to the bank. All of a sudden, we feel violated. [TheBigMoney]

What the stimulus bill means for you

Not a day goes by now without some talk about the "stimulus bill" being discussed by very important people in some very important chamber deep in a crevice of the Capitol building. But with so much news on the plan, the details can become muddy and confusing and before we know it we're completely lost and ready to top off our glass of Pinot Noir and take the dog for another walk before we kneel at the doorstep of Thomas.gov, take a deep breath, and start all over in trying to understand it all.

Of course, the most vital info you need to know about the stimulus bill can be boiled down to just five itty-bitty words: How does it affect me? Simple question, but traversing through all the mucky language can be harrowing. Luckily, that's why you read moi, right? ;)

I've found a fabulous article by the New York Times that does the best job I've seen of simplifying the legislation and informing you of how the stimlulus affects, well...you. Most importantly in regards to:

Income Tax: In 2009 and 2010, there is a tax credit of up to $400 for individuals and $800 for married couples filing their taxes jointly. You calculate your credit, subtracted from other federal taxes you owe, by taking 6.2 percent of your earned income.

Your eligibility for this credit begins to phase out if you’re an individual with an adjusted gross income over $75,000 or a couple with income higher than $150,000.

Unemployment: Normally, you pay federal income taxes on federal unemployment benefits. In 2009, however, you won’t have to pay taxes on the first $2,400 in benefits you receive.

Health Insurance: If you get fired, your company is required, thanks to a law known as Cobra, to allow you to pay to keep your health insurance, generally for up to 18 months.

The problem is, it can cost you $1,000 a month or more to keep the coverage.

Now, the federal government will subsidize 65 percent of the premium for up to nine months. To be eligible, you need to have been forced out of your job between Sept. 1, 2008, and Dec. 31, 2009. Also, your income in the year you receive the subsidy cannot be more than $125,000 for individuals or $250,000 for married couples filing their taxes jointly.

If you lost your job after Sept. 1, 2008, and declined Cobra coverage, you’ll now get another chance. Call your former company in the next two months to find out how this will work.

Social Security: In 2009 a number of retirees and disabled people, including Social Security recipients, will receive a $250 refundable tax credit. The money would arrive within 120 days of the bill’s signing.

First-Time Home Buyer Credit: First-time home buyers are eligible for a refundable tax credit equal to 10 percent of the purchase price of their home, up to $8,000, if they made the purchase after Jan. 1, 2009, but before Dec. 1, 2009. (This gem is for singles who make under $75,000, or a married couples who make under $150,000).

Don't forget the language isn't final, but the above is the gist of it all. Ah, I love the sound of money in my pocket (thank you U.S. government!). [NY Times via CNBC]

The token Valentine's Day post

Valentine’s Day is my favorite holiday of the year, narrowly beating Thanksgiving. I know, I know: “Brunnie, how can you love V-Day? It’s a Hallmark holiday driven completely by consumerism!” Whatever. It’s so trendy to hate Valentine’s Day that I have to retort: “Be original!” Yes, you should tell people you love them every day of the year, but Valentine’s Day not only reminds you to love those around you (wow, I sound like Delilah), it also sets the perfect stage, what with red and pink paper mache hearts hung in every store window and your tummy full of conversation hearts...cinnamon hearts...sour gummy hearts. Four words: Get in my belly.

Love it or hate it, Feb. 14th is a fact of life. You don’t need to buy into it and drop money on flowers, candy or cards if you don’t want to (although Love just had a bouquet of flowers and balloon delivered to my office, which made my day!), but your 1-800-Flowers purchase may be just what the economy needs.

According to the Washington Post, the National Retail Federation's spending survey found that Americans plan to put up a total of $15 billion in the name of Cupid this year, or $103 per person. Granted, that's $20 less than last year, but it's still a far cry from macaroni-necklace territory, the paper says.

But if you’d rather take your left eye out with the nearest ballpoint then spend a lot of money on anything even remotely related to Pink Paper Heart Day, here are some of my favorite low-key, budget friendly ideas from MSNBC:

Stay in and relax. Valentine’s Day conveniently falls on a Saturday this year — and that means you could put your heads together and dream up the most ideal day at home ever. This Thursday or Friday, you could stock up on your favorite foods and drinks and rent movies that you both want to see. Tidy up the house ahead of time so you’ll be able to resist the urge to wipe down countertops and fold laundry all day long. If you have children, make baby-sitting arrangements for at least part of the day if at all possible.

Dinner doesn’t have to cost a bundle. There’s really no need to drop $90 to $250 on a romantic dinner at a restaurant. In fact, with some advance planning, you could have a fabulous candlelit dinner at home — and, heck, you could even get all dressed up for it! Again, be sure you have every single food item on hand before Saturday. You don’t want to be bothered with having to run out to the store to pick up lemons or onions.

Get all gussied up for a low-budget night out. If the two of you really want to hit the town on Saturday night, you could simply have coffee or a drink and dessert at a dark, romantic bistro or an expensive cafe or restaurant. At any time of the year, this avoid-the-entrée trick is a surefire way to savor the atmosphere — and your date — without busting your budget.

Write your feelings down. With the help of a package of inexpensive Valentines from the drugstore or grocery store — or, for that matter, any kind of paper — you could write out dozens of reasons why you love your mate. Leave the messages all over the house, in both noticeable and hidden-away places. This is another one of those gifts that could keep on giving for several weeks, if not months, down the road. [MSNBC]

And if you’re feeling the love but single, the International Falls Daily Journal has some fabulous ways to show someone you care:

• Donate some time at a retirement home. Plan some type of entertainment for the residents, center on love.
• Invite someone on your block over, someone who really can’t afford anything right now. This will give them the chance to forget about their problems — at least for a day.
• Shovel a neighbor’s sidewalk. If you have some feeble neighbors, or ones that work all the time or care for children and really don’t have the time to shovel, do this good deed. Offer rides to those who need them — to the grocery store, the pharmacy, or the clinic. Help carry things. It will be remembered.
• Help someone find a job. If you have a depressed friend, sit with them and help them with a job search. Sometimes it can be overwhelming to look for a job because it’s so easy to become discouraged. [Internationational Falls Daily Journal]

Spend, don't save!

You know what's ironic? All those people who lived outside of their means for the better part of the last couple decades (you know, buying homes and other luxuries they couldn't afford but were so easily attainable with "magic" cards and loans) are only now learning the virtue of hunkering down and saving . . . but only because they've been backed into a corner. Had they lived day-to-day somewhat modestly (no need to live off ramen, here), then the recent dizzying debt spiral wouldn't have unwound so rapidly in all of a few mere months. But that's not what's ironic.

What's ironic is that to fix this problem, those people are going to have to stick to what they're best at: spending. Or so says The New York Times:

Enough already with the saving that many of you have suddenly begun doing. This very moment, Congress and President Obama are preparing to send you a tax rebate, to inspire you to stimulate the economy. So go out and stimulate. Spend as if the future of your country depended on it.

Come again? The idea is that now of all times is not the time to save. It may be okay for you as an individual, but it is ruinous for our collective economy. If there ever was a time to spend, then that time is now.

Essentially, this phenomenon is called the "paradox of thrift," created by 20th-century economist John Maynard Keynes, and suggests that when a person does what they believe is "rational" (i.e., saving money) during hard times, it could be ruinous for an entire economy. Eventually, many of the savers may end up out of work because everyone else is saving, too.

Although spending is highly condoned, there's a fine line between blowing your entire paycheck at DSW and spending some of it on fancy footwear. The key is to know how to spend money now to save money later — a phenomenon that could lift the economy today and help individuals cope with their battered finances in the long run, says the NYT, who (like moi) thinks people do not do a good job of planning for the future.

[People] eat just one more doughnut and put off exercising until tomorrow and tomorrow and tomorrow. They fail to set aside enough for retirement. Again and again, they choose a bird in the hand — be it dessert, convenience or a little extra cash — over three or four in the bush. Most people could save themselves a good bit of money by giving proper respect to their future self. They could spend a little now and save a lot later.

[New York Times]