Lending Club

Buying in Bulk Drives Consuming in Bulk

Mike Smith — Fri, 10 Oct 2008 16:54:46 +0000

Buying in bulk is a great way to save money by paying a lower unit cost. If we allow larger quantities to influence how we consume, however, the savings may be reduced or even eliminated.

Having larger quantities of consumable goods makes an individual amount less valuable. As such, we may be more likely to waste. Eventually sufficient waste ends up costing more than if we had bought our items in more reasonable sizes. In which case would you be more frugal with the amount of paper towels you use: when it’s the only roll left in the house, or when there’s a case of them stored in the garage?

All too often we compare unit cost when cost per time period would be more appropriate. Even though buying larger quantities may lead to a lower unit cost, increased consumption may amount to a higher cost per month.

Consider the following example: although I enjoy eating Macadamia nuts, I don’t purchase them very often because they tend to have a very high unit cost. When I found them for a more reasonable price at my local Sam’s Club, I started eating them more regularly. Though I am getting a better price than I could get elsewhere, my Macadamia nut spending has gone up considerably.

Before you buy in bulk to get a lower unit price, consider whether having larger quantities will also increase your consumption. If you allow your consumption to rise, you’ll be saving less than you think while allowing other detriments (to your health, the environment, etc.) to grow. If you can keep your consumption constant, while paying a lower unit cost, then buying in bulk will maximize your savings.

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Vacation Traveling: Saving Money on Flights

André Nosalsky — Thu, 09 Oct 2008 21:00:00 +0000

Many vacations and trips require flying. With the fuel prices always on the rise and a sluggish economy, air travel costs will only be going up and not down. Here are six tips to help you receive the most value for your money when flying.

Travel during the low season. Most destinations have a high and a low season, although there might be very little difference for you. For instance, in southern Florida or the Caribbean, summer is considered the low season and winter the high season. This is because many people in the northern areas want to get away from the cold and snow during the winter and thus the demand is high. During the summer, fewer people travel to these destinations and the rates are much cheaper for flights, hotels and other services.
Book your flights in advance. Many airlines offer their best rates months in advance; this is the best time to buy. Also, making your reservations in advance will give you the most flight options. Check the rates one day before or after you were planning on flying and many times this will make a big difference in the rate you will pay.
Check the airports near your destination. Many big international airports have extra fees and taxes that are added to your ticket. Or sometimes the airport is a bottleneck hub, where many airlines are forced to have a connecting flight. Check for small airports around your destination and you might be surprised at how much you can save.
Fly during the week. Because most travelers like to fly on the weekend and business travelers like to fly home for the weekend, the weekends have the highest rates. Choosing a flight in the middle of the week might save you money and make the trip less crowded.
One stop? Don’t automatically click on the “Direct flights only” checkbox when searching for flights. There are many times when you can have a stop that will add an hour or two to your flight, but might save you lots of money on the ticket price.
Checking in bags? Some airlines have started charging for checked baggage, $15 to $25 per bag. Check with your airline for the specifics and be sure you have up to date information. Consider leaving unimportant things behind and packing a carry-on case for your trip to save on this fee and reduce the amount of stuff you have to haul around.

When air travel is on your schedule, following the above tips will help you to save money and avoid any surprises.

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Leaving Your Job When You Leave the Office

Mike Smith — Thu, 09 Oct 2008 15:59:35 +0000

For all of the many benefits technological advancements have brought to the workplace, one huge downside comes along for the ride: leaving your job when you leave the office is becoming more and more difficult. The Networked Workers Survey conducted by the Pew Internet and American Life Project found that 50% of employed email users say they check their work-related email on the weekends.

The cell phone that makes you available any time any place doesn’t discriminate between working and non-working hours. Occasionally, checking work email from home seems innocent enough, but it too can quickly become a regular occurrence. Seeing a daunting email late at night may give you extra time to act on the information, but it may also get you so worked up that you squander your time with family worrying about it and have trouble getting the sleep you need to prepare for the following day. When email and cell phones come together, in the case of an iPhone, Blackberry, or other smart phone, it’s nearly impossible to get away.

From a financial perspective, each minute spent working reduces the effective hourly wage of anyone on a salary. More hours worked means less earned per hour. This notion can only be taken so far, though, because if you work too few hours your effective hourly wage will be high but you may not have a job for very long. Many of the same things in life that are more important than money are also more important than your job. Again, fulfilling your job duties is your obligation to your employer and should be carried out. But in many cases, we do much more work during non-working hours than our employer expects. The world isn’t going to end if you don’t check your email tonight or if you turn off your phone as you leave work each day. You probably know some coworkers who do just that. Are they any worse off or ascending the corporate ladder more slowly than you? Probably not.

I may be overly sensitive to leaving my job at the end of the day because I do so out of necessity. As a full-time corporate telecommuter, my “office” is always just a few feet away. Strict discipline and a conscious effort to arrive and leave work at prescribed times are all that prevent me from working during most of my waking hours. In some ways, work email access and cell phones have made all of us partial telecommuters. Giving yourself a raise in your effective hourly wage is easier than you think. Simply leave your job when you leave your office.

How often do you check work email from home? Do you think your career advancement would suffer if you worked less during off-hours?

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