KISS: Keep it Simple Starbucks

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This is a guest post by Vanessa Burke

It used to be that if I wanted a cup of coffee there were only two options; out of the tin in the kitchen and at the diner. The other day I walked into Starbucks and asked for a regular black cup of coffee and the kid behind the counter scoffed at me and immediately pronounced that “We don't have regular coffee.” I said to him “Fine, I won't give you any regular money,” as I walked out the door and made my way to the gas station to get my caffeine fix.

Everywhere we turn, businesses try to take advantage of innocent consumers by putting is in high pressure sales situations. They keep low-level employees on their toes all of the time by intimidating them to make sales or get fired if they don't reach their quota. When we are faced with these situations, it's hard to get what we actually want or need. It's also an easy way to become manipulated into buying frivolous upgrades and accessories that we might not be able to afford.

If businesses kept their employee rhetoric simpler I would be more inclined to buy what I need instead of spending all of my cash on suggested stuff. Here are some ways to avoid awkward situations and save yourself money when entering the retail and hospitality arena:

Retail

The other day I walked into Best Buy to check out some prepaid cell phones. As soon as I entered the door I was ambushed by about 4 different employees asking if I needed help finding anything. I politely told them no and went about my business. When I finished up in the mobile section, I headed over to the video game department to pick up something for my son. I was instantly bombarded by three more employees who wanted to “help” me.

An easy way to save money in the retail sector is to turn to Amazon or eBay. All of the product descriptions are already posted and you can get honest opinions from real consumers.

Coffee

As illustrated earlier, coffee has gotten way too complicated. I think that places like Starbucks and other coffee chains are losing a good deal of business because people are too frightened to order a regular cup of joe in fear of a verbal lashing from a “coffee expert.” In order to save money in the morning, try making your coffee at home instead of purchasing something with a name you can't pronounce.

Fine Spirits and Brews

This might be the most embarrassing part of the modern consumer culture. People who work in liquor superstores and behind bars always have a high-strung attitude when talking about their product. What if I walk into one of these stores and just want a case of Bud Light for Sunday football? Instead of going to a large liquor store specializing in exotic spirits, try going to your local supermarket for more savings.

Restaurants

In my opinion, suggestive selling has completely ruined the restaurant industry. What was once a nice way to get out of the house and not have to cook or clean up for yourself, is now a thirty minute sales pitch from a pompous server with a liberal arts degree. If you want have a restaurant experience without the sales pressure, try ordering take out and eat your food at the park. Not only will you save money on drinks and appetizers; you will also save on the tip.

The next time you go out to a store or restaurant, just politely dismiss the obtrusive help. Don't blame them for the annoying over-service, blame upper-management and the increasing corporatism of America.

Saving Money and Energy The Old Fashion Way

Image by bsabarnowl via FlickrEverybody is looking for ways to save money and energy. There are energy saving appliances, bulbs, and automobiles all ready to help in our goal. We are told to lower our carbon footprint and use less energy. Today we want to use less and waste less. We look to the future to find gadgets and machines that can do this for us. I say don't look forward to find solutions, look back!

Depending how old you are, if you want to be money and energy savers, go talk to your parents or grandparents. These people grew up in a day when they used less water, less fuel, created less waste and imported fewer goods than we do today. They took these actions out of necessity as opposed to our modern-day desire to help the planet, but the ecological impact is just as powerful. Here are seven lessons we can borrow from our elders that are easy on the wallet, and have significant environmental impact. Perhaps more importantly, they are easy to implement and relevant to our modern lifestyles.

Bottled water.
Believe it or not I grew up in a day when you didn't buy bottled water. Not because there wasn't any but because you would be thought of as foolish to buy something you basically could get for free from your faucet.

I remember keeping a pitcher of cold water in the refrigerator whenever we wanted a cold drink.

Clothes dryer.
Many homes never had a clothes dryer. Hanging your clothes outside in the fresh air was the only way to dry them. The clothes washer was a common device in a home as far back as the the early 1900's. The first electric one was invented in 1910.

Before the clothes dryer became a standard appliance in every American household, your grandmother simply took advantage of a sunny day, some rope or cord, clothespins. No cost, no maintenance, no carbon footprint. Clothes dryers have come a long way in energy efficiency over recent years, but the average home clothes dryer has a carbon footprint of about 4.4 lbs. of carbon dioxide per load of laundry. According to a recent Wall Street Journal article, “the biggest way to cut the environmental impact of cleaning clothes is to stop using a clothes dryer.”

Vegetable garden.
The home garden was common place many years ago. It was easy to do and a money saver even when fruits and vegetables were fairly inexpensive. When you bought a home, you would look for one that had a nice yard for growing vegtables and perferably many fruit trees. It was normal to go outside your home and be able to see an orange or apple tree in your back yard.

When the Obama Family decided to plant a garden it was seen as odd by the younger generation but made perfect sense to the over 50 crowd. My grandfather always grew vegetables out in the back yard, it would of been odd for him not to.

Saving rain water.
Rainwater is free, why not collect it? You can use it to water your garden or lawn. You can wash a car or the dog with it. You can pick up a few plastic drums free someplace and save money and water. Just channel your rain gutter system into it and have gallons of free water.

Pack your lunch for work.
Back when, most people brown bagged their lunch. Taking a box lunch when you would be out all day, for work, or the kids school lunch was normal. Eating out used to be an occasional event for older generations, often reserved for birthdays or anniversaries. Nowadays, the average American eats out about four times a week and spends nearly $3,000 yearly in take-out food.

The waste created by take-out packaging alone is enough to make you think twice. The money you can save by eating at home or by bringing your own lunch to work or school — in a reusable container, of course would make grandma very proud.

Home entertainment.
When our grandparents were younger, playing card games or board games was a popular form of entertainment. As a little boy, I remember spending hours playing gin rummy in my grandmother's kitchen, with my handful of cards.

Compared to today, we have electronic gaming systems like Wii, Nintendo or Xbox; cards and board games provided hours of entertainment with little impact on the environment or the wallet.

Spend less.
Anytime you buy something, you (and the environment) are paying way more for it than just the sticker price. There is the cost of resources used to make it, advertise it, transport it, maintain it, and inevitably, to dispose of it. The amount of stuff our grandparents bought on a regular basis pales in comparison to the overindulgent spending habits of our generation.

These ways to save money aren't just a common sense way to save money and energy, they demonstrate a mindset, a way of thinking that was ingrained in the over 50 crowd. Today we have a barrage of advertisers showing us ways to make life easier. All we have to do is hand our money over for so called better life. 

Consumers Have A New Way To Vent Their Customer Service Problems Using Social Media

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Many of us are all-too-familiar with these and other phrases that accompany the soothing muzak used by many companies to manage our limited patience when we're on hold with their customer service departments. Unfortunately, even after a human is eventually reached, consumers often find that by the time they hang up the phone, the issue they called about remains unresolved. What can a frustrated consumer do?

Try Twitter.com

One alternative that consumers are increasingly turning to is Twitter. By now, many of us are using Twitter, a social networking and microblogging Web site that allows its users to post short messages (known as "tweets") that can be read by our "followers." Use of Twitter has exploded in the past few years. At last count, Twitter users were tweeting nearly 50 millions tweets per day.

Since Twitter is a public service, consumers’ tweets are visible to everyone on the Internet (unless the user blocks access to his or her account). Twitter has become a powerful megaphone for consumers. In the past, if a customer had a problem with a company, their negative experience was communicated mostly to friends and associates by word-of-mouth. In recent years, consumers have started voicing business reviews on the Internet, via blogs or review sites. With Twitter, there is even greater potential for thousands of users to hear - many, instantly - about bad experiences. For companies that are eager to protect their reputations, this is an issue they would be wise to manage.

Companies Are Watching

Numerous companies are doing just that -- assigning staff to monitor Twitter for customers who are dissatisfied and respond directly (via Twitter) to that customer. Many Fortune 500 companies have set up their own Twitter accounts, allowing customers to direct their tweets to a designated Twitter agent for a particular company (via Twitter's "@" reference system). Companies as varied as Comcast, JetBlue, Wachovia, Bank of America, UPS, and Blue Cross Blue Shield have set up Twitter accounts to complement their traditional customer service lines.

So how can frustrated consumers make use of Twitter to improve their customer service experience?

Here are some tips and tricks that might help:

1. Try the conventional method first. Most companies have dedicated customer service lines that can address common problems, though time spent on hold should be expected.
2. While you're on hold, use a search engine to search for "[company name] Twitter." This will usually bring up a list of Twitter accounts associated with a particular company.
3. If the traditional customer service route doesn't solve the problem, tweet away! Be succinct in your tweet (Twitter has a 140 character limit on tweets) and reference one or more of the Twitter accounts for the company in question, using the "@" reference. Example: "The widget I ordered from @acmewidgets showed up broken today. Customer service was no help."
4. Keep your expectations reasonable. Some companies have set up their Twitter accounts primarily to tweet about company news, not respond to customer complaints. Review the last few tweets of a particular company's Twitter account to make sure your tweet goes to the right account.
5. If you are contacted by a representative of the company, take your conversation to email or phone. This is a better way to describe the exact problem and get it fixed quickly.
6. Look for Verified Accounts. Twitter's openness has led to numerous accounts impersonating real companies or celebrities. Look for accounts that have been verified as legit by Twitter. Note that Verified Accounts for businesses are still in the beta, or testing, stage, so don't rely on this exclusively.
7. If your tweet led to the problem being solved, tweet about that, too! Companies will be more likely to help you and others in the future if they know that going the extra mile on Twitter led to positive feedback for all the world to see.

Twitter is a valuable tool in the consumer's toolbox for resolving customer service issues. If going the usual route of calling the customer service line doesn't solve your problem, don't be afraid to try Twitter to express your displeasure. The old saying that the squeaky wheel gets the grease has never been truer.

10 Ways To Turn Money Leaks Into Big Savings

Image by Images by John 'K' via FlickrThey say, in life, it's the little things that matter. This rule also applies when it comes to your money. Many people have little money leaks that they may not even realize. Over the years these tiny amounts of money add up to hundreds of dollars. Being conscious of where your money is going is the difference between winning and losing in the money game.

I have listed 10 ways to save money and plug up those money leaks:

Savings Tips

1. Consider your needs vs. your wants. Think about items you purchase on a regular basis. These add up. Where can you save?

• Do you eat out at restaurants a lot? 
• Can you cut back on daily expenses, such as coffee, candy, soda, or cigarettes? 
• Do you have services you do not really need, such as cable television or a cell phone? 

2. Set up a direct deposit and an automatic transfer to your savings account.

• When you get paid, put a portion in savings through direct deposit or automatic transfer. 
• If you have a checking account, you can sign up to have money moved into your savings account every month. What you don’t see, you don’t miss! 

3. Pay your bills on time. This saves the added expense of:

• Late fees, extra finance charges 
• Disconnection fees for phone, electricity, or other services 
• Fees to reestablish connection if your service is disconnected 
• The cost of eviction, repossession and bill collectors 

4. If you use check-cashing stores regularly, you might be paying $3 - $5 for each check you cash. Consider opening a checking account at a bank or credit union.

5. If you get a raise or bonus from your employer, save that extra money.

6. If you have paid off a loan, keep making the monthly payments to yourself. You can save or invest the money for your future goals.

7. Avoid debt that does not help build long-term financial security. For example, avoid borrowing money for things that do not provide financial benefits or that do not last as long as the loan. Examples include: a vacation, clothing, and dinners out in restaurants.

8. Save your change at the end of the day. Take that change and deposit it into the bank (every week or month).

9. When you get a tax refund, save as much of it as possible.

10. If your work offers a retirement plan, such as 401(k) or 403(b) plan that deducts money from your paycheck, join it! Most employers will match up to $.50 on each dollar you contribute. The matched amount is free money!

Happy 35th Birthday Index Funds

Image via WikipediaIt was 35 years ago that John Bogle and the Vanguard Group launched the First Index Investment Trust that tracked the popular S&P 500 index. The fund name was changed to the Vanguard 500 in the 1980s. Bogle and his company has forever changed the investing landscape.

At the time John Bogle never thought how his idea would affect the way millions of people would invest. As a manager of mutual funds he wanted to find a way to make investing easy for the common man. At the time and even today mutual fund investing still means paying high management fees. He felt there could be a better way. His idea of a mutual fund that tracked an index and would always do as good as the market was a novel idea. It was simple and easy, without a lot of hassle. To make a good idea better he pioneered low management fees so the investor would benefit and not the broker salesman.

Bogle thought it was a travesty for the industry to make a fortune in management fees and wanted those fees to stay in the pockets of investors. He knew that even a small amount of reduced management fees kept in the investors account meant for higher returns.

We need to thank John Bogle and company for giving us the index mutual fund and the beginning of passive investing. Over the years the the inexpensive management fees has kept billions in the accounts of investors where it belongs. Thank you John Bogle!

More reading about John Bogle and Index Funds:

Wall Street Journal article titled How the Index Fund Was Born

The First Index Mutual Fund: A History of Vanguard Index Trust and the Vanguard Index Strategy.

The Power of Passive Investing

Does Prepaid Car Maintenance Save Money?

Image via WikipediaNew car buyers are often asked whether or not they want to purchase a “prepaid maintenance plan.” These are not extended warranties but plans that cover routine kinds of service to your car. But are they worth the money?

A plan could cost as much as $1,500 and can be added to the cost of a lease or purchase. Reading the fine print to see what items are covered can keep you from making a big mistake. But when a neighbor of mine got a new car and a new plan for $800, she didn’t realize it only covered oil changes and no other maintenance.

They may be pretty good moneymakers for dealers but the Better Business Bureau warns consumers to crunch all the numbers and read all the fine print.

“These kinds of plans are relatively new, so we’ve received about 100 over the past couple of years, we’ve certainly seen an uptick in the numbers,” said Rodney Davis of the Better Business Bureau.

Some unhappy customers complain maintenance plans were added to their closing paperwork without their approval or they dropped their cars off for maintenance and the work was never done. Some angry customers say the required repair shops went out of business and they couldn’t get a refund. That’s why some consumer advocates say “buyer beware.”

“These prepaid maintenance plans are a source of profit for the dealership so they’re really going to try to steer you toward that,” according to Edmunds.com Ron Montoya.

Since the plans vary, experts have a few recommendations:

• Read the details carefully to see how long it lasts and what it covers, and calculate the expenses to make sure you see savings.
• Once you buy a plan, remember, you’re stuck going to that dealer or repair shop.
• If you finance the plan with your car loan that means you’re paying interest on it, costing you more.

If you’re tempted to buy a prepaid maintenance plan, here’s an inside secret to getting the best deal.

We’ve been told dealers mark them up, up to 50-percent, so you know to try out offering half the price and then they may counter the offer and you can meet somewhere in between.

Always remember to check out the plan closely and don’t be rushed into signing anything. Edmunds.com offers a maintenance cost calculator that will estimate the scheduled maintenance costs for cars.

Some high-end car makers now offer free maintenance plans in the purchase price. If you plan on moving or selling your car before the plan is up, make sure it’s transferrable.