Financial Baby Steps, STEP 5: Become a Loyal Customer

I'm a loyal customer and I just got a GREAT deal!! 

Companies want to keep you as a client. You are the source of their revenue and without you, they could not stay in business. Don't get too excited and think spending $900 on a louie bag will impact their business. Newsflash: They won't miss your pennies. What they care about is their bottom line. They know it costs less to keep you as a loyal customer than it is to recruit new fair weather clients. The cost is high and the return on their investment is low. Companies know customers are likely to spend more and to share their experience with friends if they feel appreciated and welcomed. 


Being a loyal shopper pays off! Rite Aid has a new program where after you spend a certain amount, you get 20% off of the entire store for the rest of the year. There isn't a store near me so I have CVS' ExtraCare card. It allows you to shop, save and get 2% of your money back in the form of ExtraCare rewards that may be used towards future purchases. My friend and I shopped at a store today that gave her a $25 store credit just for shopping today. How awesome is that?? 
I can't keep the secret any longer, here are 3 ways you can easily become a loyal customer: 


1. Sign up for E-mails. Have you ever wondered why sales associates randomly ask you for your emails? Do you decline the invitation because you are worried the email alerts will clog up your inbox and kill your Crackberry battery? No need to fear. Create another email account and use it specifically for coupons. Victoria's Secret just asked for your email? No problem! Did you know those emails sometimes include exclusive coupons and offers? You won't miss out on those deals if you give them your "coupon e-mail." You get the benefit of receiving their special offers without it affecting your main email account. Whats more, for some stores the more you enter your email the better offers you receive. Creating a "coupon email" account will make it easier for you to receive special offers. If you know its not likely to affect your main account you will be more likely to continue to enter your email and get bumped up the list. The top email clients get special treatment at most stores and are even eligible for discounts other customers don't qualify for. As employees get to know you, they may add you to their client contact list and call you when special saless are about to start so you can plan ahead. 


2. Sign up for Customer Rewards Cards. Go to customer service or the concierge and ask about a rewards program.  If you don't feel comfortable doing that, spark up a conversation with an employee and ask them about their frequent shopper programs. These programs are most often available at grocery stores and some retail stores. The best programs are free or cost little to nothing. Be on the lookout for those programs that allow you to become a "rewards" or loyal member without having to impact your credit. For example, my favorite store, Carol's Daughter offers a rewards program that is $25 per year that allows you to save 10% off of every purchase. I paid the fee and since I shop for hair products so often, the $25 fee paid for itself after only a few visits. I also signed up for a rewards card at my grocery store so I could take advantage of in-store promos and I also rack up points that I can also use towards getting a discount on gas purchases at shell. *double whammy* My keychain also has rewards cards from Hallmark($1 for every 300 points at 10 points earned for every dollar you spend), Finish Line (for my athletic clothes), Godiva (free piece of chocolate every month), AutoZone, Blockbuster (yea its outdated) and I even have a customer card from Auntie Anne's Pretzels. Yes thats right, even Auntie Anne's pretzels has a (somewhat secret) rewards card.  Their pretzels are pretty pricey but I get a free pretzel for every 10 I buy and get a stamp for. The card was free but they don't openly broadcast it so you will have to ask. 


3. Shop Frequently. The best way to become a loyal customer is to be a dedicated customer. If they give you coupons to use on a future visit, go back to use them. Develop a good relationship with the business and its employees. Allow them to see you as someone who appreciates the quality of the products offered. You have the power of the purse. Wield it. Make it known that you could have gone anywhere else but you chose to spend your money in their business. Many stores and kiosks have employees that work off of commission and who are always looking for dependable clients. Even if the stores or bars you frequent do not have a rewards program, it will prove beneficial for you to forge relationships with employees who are great for hookups. Yes I just said that. What harm will it do if you know someone who works at all of your favorite stores? I'm not saying build relationships for the sole purpose of using people for their discounts or free drinks. I am advocating for all of you to start thinking about tapping into your networks for your benefit. If you already frequent certain businesses, make your frequency known. Don't get cocky and demand special treatment by bragging about all the money you spend, people don't like that. Instead, get to know the management team and play that to your advantage.  Give them your email address and give them permission to contact you if they come across products you may like. 


Did I miss any tips on how to become a loyal customer? Do you know of any customer loyalty programs I might have missed? 

Financial Baby Steps, Step 4: Watch Your Spending

Broke (adj.): (1) Having completely run out of money. (2) Being completely effing spent


These days, it seems like the cost of everything is UP:
Gas prices are up
The cost of living is up
Unemployment is up
Energy prices are up
Healthcare costs are up

Can you guess whats down? Employment and salary increases.

But you need to spend money to live, right? Of course you do. There's a cost to pay if you want to be a bawse. Problem is, some people have bawse tendencies but don't have bawse tender. Fret not because it is ok to first learn to live within the means you have before you can handle an increase.

Here are 7 things you can do to limit your spending:

1.Track your spending. Write down every PENNY you spend. I know it sounds absurd to ask you to write down what you spend in order to limit the amount of money but stick with me. I know many of us have smartphones with banking apps and thats awesome. Checking a banking app is easy. You can use your debit card and then check your receipt against the actual charges. Thats makes impulse spending easy. No emotion goes into that. If you get into the habit of actually writing down your spending 2 things will happen: (1) it will serve as an opportunity for you to think twice before you buy something you don't need and (2) you can see where you spend the most money. Seeing it all on paper will help you see where you can make cuts.

"People who don't have money, spend money to look like they have money while wealthy people spend like they don't have a pot to piss in."

2. Do well. Doing well in school can earn you scholarships and you will have the first dibs on good jobs. For those of you not in school, do well at work. If your job offers bonuses, you can earn them by allowing people to see you doing your job well. Doing well also leads to promotions and more money. Before you go off and become the ultimate brown-noser, recognize that doing your job well does not always mean kissing up to your boss. It does mean you should do your part to make sure they KNOW you're doing your job well. Your boss should know more than just your name.

3. Limit your vices. If you go to a club ($20 admission AND $20 valet) and get a drink ($13) twice a week that number adds up to over $200 a month. If you enjoy having a drink with friends here and there, consider going during happy hour because the drinks and food will be much cheaper. My favorite spot is incredibly expensive but during happy hour I can get a $23 gumbo for $5! Don't think you ciggie smokers got off easy. I'm not sure how much a pack of Newports cost nowadays but I saw a sign for a carton a few weeks ago that was $23. Cutting back on your vices will free up money.

4. Buy used when possible. Depending on where you live, thrift stores are hidden treasures. "Thrifting" is fairly popular in the district so you don't have to be embarrassed to shop there. The clothes and jewelry are sometimes vintage one of a kind items. I admit I thought shopping at thrift stores was thee most gross thing ever but I got over it after I copped a vintage necklace and designer dress for next to nothing. Whats more, I can wear them both comfortably without worrying about someone else copying my style. Apply the same logic to certified used cars, and other consumer goods.

For college students,  used textbooks are a good place to start. Also consider that you won't get anywhere near the price you paid if you decide to sell the book back. I once took a $150 science book to a buyback window and they offered me $23 and even tho it pissed it me off I accepted the money. I was not a science major and I knew the book would end up just collecting dust. I later found a treasure inside of a bookstore off campus that specialized in selling used books.

5. Sell things you don't want. If you have books or clothes you don't want, create an E-bay and Amazon account so you can sell them to people who have a need for them. Its a win-win.

6. Obey the law. It sounds silly but don't dismiss it. Don't speed. Wear your seatbelt. In the District we have photo enforced traffic light and speed limits so you don't even have the opportunity to talk your way out of the ticket. Thanks to those amazing cameras, 2 months ago I spent $90 on tickets. I sure wish I could have spent that $90 doing something more fun.

7. Get a part time job. If you find yourself broke, you have to consider what you are willing to give up. If you are willing to sacrifice 6 months of nights and weekends you could get a part time job. You could make your money go even farther if you work at a store where you frequently shop. Why? Discounts of course! You know you will shop there anyway so why not shop for a discount?

Before you go on a spend-cutting spree, remember the point of cutting your spending is to save. It is not to find money to spend in other places. As you watch your savings account grow, resist the urge to go back to your old bad habits thinking you can afford to be reckless again.

The more you know.

Financial Baby Steps: Step 3 Use Coupons and save BIG $$!

The financial baby steps series on Talented Generation is a way for young professionals to get their finances in order, one step at a time. We all want to get to a land of financial freedom but it is a long and, often frustrating, process. As a newly minted graduate, I want to get my finances in order, get out of debt (don't be pretentious and act like you don't have any) and achieve financial freedom. I'm no financial guru and I wouldn't dare pretend to be. I am still learning but I am making progress by following the steps I share in the Financial Baby Steps series. 

In case you missed step 1, you can check it out here. 

For step 2, click here. 

After watching the TLC show "Extreme Couponing," I thought I  was losing at grocery shopping. For you Charlie Sheen fans, losing is the opposite of winning. I wondered how they could walk away with $800 worth of groceries and only spend $5?! The people managed to get their groceries for almost FREE! I watched in awe as one guy walked away with 1100 boxes of Total for FREE. I was mad as hell. Why? Because on the previous day I spent $15 dollars on 4 boxes of cereal without a second thought. I quickly realized WHY the people TLC featured in its new hit series were call extreme couponers. They spent hours locating and organizing their coupons. They got their family involved and some even resorted to digging in dumpsters for unused coupons. More than one extreme couponer confessed to treating couponing like a second job. 


I tried my hand at extreme couponing only to hit a few hitches. I didn't know much about the store's coupon policy and I ended up spending twice as much as I planned to spend. I realized I didn't have the time or ambition to become an extreme couponer. I have since bought into the concept of reality couponing, which involves a more realistic view of shopping with coupons. Although I am a beginning couponer, I have resolved to NEVER pay full price for an item. Regardless of whether you are a new couponer, like me, or if you have been using coupons for years it is helpful to understand coupon lingo. Here are a few key terms every couponer must understand: 


1. Stockpiling. It is the concept of buying more than you need right now and then back-stocking extras so you can use the supply over time. This is beneficial when buying nonperishable items that don't go on sale often. You can purchase enough to last you until the next time the item goes on sale. 


2. Coupon stacking. It is the concept of combining store discounts with manufacturer coupons. For example, your grocery store has a coupon for buy 1 get 1free nail polish. Per jar, the nail polish is $1.79. You also have a coupon for $1 off that particular brand of nail polish so you end up paying .79 for 2 jars. Before you go off looking for stackable coupons you must also take time to understand your store's coupon policy. Not all stores will allow you to combine a store promo and a manufacturers coupon. I haven't found any grocery stores that double coupons like the ones featured in TLC's show but I trust they exist somewhere. 


3. Money Makers. When coupons save more than the price at the store, so shoppers actually walk away with a profit. Consider the nail polish example above, if you had a coupon for $2 off the brand instead of $1 off you would actually make 11 cents if your store allows you to stack the coupons. 


4. BOGO. It is an abbreviation for Buy One, Get One for (insert terms here). BOGO can be a buy one get one FREE item which means you purchase one item and you receive a second item at no charge. BOGO also applies to an offer to buy one get one 1/2 off  which means if you purchase one item you will 1/2 off of the other item. 


I started my coupon journey by signing up for a CVS extra care rewards card.  My experience was pretty similar to the woman in the video below.

Your savings don't have to stop at the grocery store. Here are 5 ways to save money on everything else. 


1. Check out sites like RetailMeNot.com which offer Web discount codes that include everything from free shipping to 20 percent off an entire order for more than 65,000 stores. Shopping online helps you save gas and you won't have the surprise at the checkout because you can see your total before you check out. If you go over budget, you don't have the shame of having to put stuff back. The internet also makes it easier to comparison shop. 


2. Merchants often tout savings and discount codes on Facebook and Twitter, so "liking" and "following" these companies can bring you closer to deals, make you eligible for free giveaway contests and allow you to get exclusive deals. 

3. Check out daily deal sites, such as Groupon, Daily Deals, Living Social, Mamapedia and No More Rack. Not only do they offer 50 percent off deals on a variety of restaurants, apparel and services, most of these sites offer a $5 to $10 credit just for joining the site. They also offer credit incentives for referring friends. Sometimes if you refer 3 friends who also purchase the deal you can get the deal for free. If you have a group of 4 dedicated friends you could take turns getting the deals for free. 

4. When buying airline tickets, check out Kayak.com because it searches multiple discount sites simultaneously. You can compare the prices of popular sites like Priceline, Orbitz and Expedia. Airlines like Southwest are excluded so you should visit their site directly. Keep in mind that the best time to book a flight is on a Tuesday and its best to book a flight months in advance for off peak times. Consider searching with flexible dates as well. 

5. Pay attention to seasonal sales. Right now since it is hot, buying winter clothes is cheaper. Later this month it will be cheaper to get warm weather clothing because retailers will be making room for new merchandise. As they usher in the new merchandise, they will make room by putting the older merchandise on sale. 


I used to pay full price for things but now I ask for discounts everywhere I go. I carry my student ID with me just in case an establishment offers a student discount. Don't judge me, I will never stop being a student!  

Happy Couponing! 

Financial Baby Steps: Step 2 Pack your Lunch & BAG some savings!

The financial baby steps series on Talented Generation is a way for young professionals to get their finances in order, one step at a time. We all want to get to a land of financial freedom but it is a long and, often frustrating, process. As a newly minted graduate, I want to get my finances in order, get out of debt (don't be pretentious and act like you don't have any) and achieve financial freedom. These are things I have promised myself I will achieve. My biggest hurdle is to adjust from living on lump sums of financial aid and grants to biweekly pay checks. 


In case you missed step 1, you can check it out here. 

Before I begin discussing step 2, I want all of you to understand that consistently packing your lunch for work is a challenge. It will be a test of your commitment to experiencing financial freedom. There will be days where you will prefer to skip packing in favor of the ease of purchasing a quick lunch. On the days you bring your lunch, you must resist all urges and outside forces that entice you to forgo your packed lunch. You will be tempted by your co-workers or your friends who would prefer to have you accompany them to an over-priced restaurant. There are about 10 options within walking distance of my work and about 10 more who could deliver to me. Thats only 20 options and even if I tried out every one of them they will eventually get old. I have a little secret for you: If you learn to make delicious food in your own kitchen, not many restaurants will compare. Trust me on this one.  


First is the lunch packing checklist: 
1) An understanding of your eating habits ✓
2) The ability to make your own food ✓ 
3) Tupperware ✓
4) Dedication ✓


If are missing any one of the above things on the checklist, I STRONGLY suggest you change that ASAP. And by asap I meant right now.


First off, you must understand your eating habits. Are you a snacker? Do you eat breakfast every morning? How large are your meal servings? Understanding these things will help you because you will know exactly what you need to pack everyday. In my case, I am a snacker. I eat a nice breakfast every morning but I usually crave a snack before and after lunch so I pack pretzels, pistachios, sour patch kids (DJM!) and fresh fruit to get me through the day. This saves me from spending money at the vending machines or nearby food carts. Additionally, on days when my appetite is a bit healthier than normal I pack a little more food just in case. There is no sense in packing your lunch and then spending the money you save. 


Next, you need to learn how to make your own food. IF you are one of those people who does not know how to cook, its time you change that. You can start off with a basic one pot meal like spaghetti or shrimp pasta and expand your menu from there. Here's another thought: Buy a cookbook. Just because you're packing your lunch doesn't mean you have to settle for cold sandwiches and grilled cheese.  I searched for cookbooks at Target but ended up finding similar cookbooks for 1/2 the price at Marshalls and TJ Maxx. You could also visit sites like recipe.com and learn something new. YouTube Rachel Ray's 30 minute meals or check out her Food Network page for info on quick and delicious meals. Remember lean proteins and carbs give you lasting energy. 


Third, you will need tupperware to pack your lunch. Duh! What else are you going to put your food in? I know my country folks will pack their lunch with a bowl and some aluminum foil. Buy some quality tupperware! Remember what I said in step 1! Don't skimp on quality just because its cheaper. Moving on...


Finally, you will need DEDICATION. Taking time to pack something for lunch can be consuming and draining. If you're anything like me, sometimes I have a "taste" for something different. I have learned to resist the urge to visit Nando's or Vapiano's so that I can enjoy the lunch I packed for the day.  How are you supposed to know what you're going to want to eat for lunch the next day? I can't help you with that. All I can tell you is to make the foods you love so you end up craving what you packed for the day. 


Make packing your lunch part of your routine. Don't be intimidated by the amount of time it takes. You find yourself discouraged if you're hungry after lunch and all of your snacks are gone. When I first started, I made my food at night but I waited to pack my lunch until the morning.  This presented a challenged because if I was running late, packing my lunch was one of the things I sacrificed. I work in an area where the cheapest lunch you can get is $10 (aside from the Mickey D's dollar menu, but we all know eating McD every day is NOT healthy) so I know if I dont pack my lunch that day it will cost me at least $10 and that does not include the tip if I sit down with my co-workers. Now I know you're probably saying $10 is not a lot of money but remember it will add up. If you eat a $10 lunch 5 days a week, that adds up to over $2500 per year. Even if you only eat out 2 days a week that still adds up to more than $1000/year. 


Packing your lunch for work has other benefits as well. It can  help you live a healthier lifestyle since you have control over what ingredients you use and how it is prepared. You may elect to sauté with olive oil or peanut oil as opposed to Wesson vegetable oil (the DEVIL!). Also, if you choose to bake instead of fry you can cut even more calories from your diet. Even if you only pack your lunch a few days a week, you can still make a difference. You can also avoid the lunch lines and take a relaxing walk during your break. Packing your lunch will also allow you to treat yourself to the things you may not find at a restaurant. 

IMPORTANT NOTE: Leave your smelly foods at home. This includes that 5 day old fish that you thought should be reheated for 5 1/2 minutes. No one will say anything, but the ENTIRE office is offended that you funked up the office with your lunch. 


Packing your lunch will save you money on a daily basis. You may spend money on the front end buying groceries, but you will save money on the back end. Put the money you save to the side and use it to fluff your bank account or pay extra on your debt. 

Happy Packing! 

Financial Baby Steps: STEP 1 Change Your Mindset & Change your Life!

The inspiration for this post was taken from Thomas Stanley's book, The Millionaire Mind. 

The financial baby steps series on Talented Generation is a way for young professionals to get their finances in order, one step at a time. We all want to get to a land of financial freedom but it is a long and, often frustrating, process. As a newly minted graduate, I want to get my finances in order, get out of debt (don't be pretentious and act like you don't have any) and achieve financial freedom. These are things I have promised myself I will achieve. My biggest hurdle is to adjust from living on lump sums of financial aid and grants to biweekly pay checks. 


I know you may be wondering why in hayle I think I'm equipped to give you all financial advice and that is a valid concern. How about you take a look at what I have to say and if you think its along the same lines as Steve Harvey's relationship advice then don't follow my advice. I don't claim to be any kind of expert. I've been walking for 24 years and I still trip up every now and them. I don't promise to be a financial expert but I did promise to share my knowledge in an effort to help you all make improvements. 


Still reading? Good! Lets get down to business. 



The first step towards financial freedom is to make the commitment to change. This means you have to change your mindset! Not only do you have to make the commitment to change but you also have to change the way you look at spending.  Think about the price of things in terms of the Initial Cost vs. The Total Life Cycle Cost. Initial cost is the total cost of purchasing something. Its the cost you pay at the register.  Total Life Cycle Cost is the amount the product will cost you over its lifetime. This includes maintenance, upkeep, etc. Think about it this way: I needed new black pumps for work and I had a choice between $100 shoes and $250 shoes (why are my shoes so expensive?!). I chose to purchase the pair for $100. $100 is the initial cost. After 50 wears (I wore them everyday for a little under 2 months), the soles and taps had worn out. Prior to getting the soles fixed, the shoes cost $2 per wear. Still, I made the smart decision to get the soles fixed for $30 instead of buying another pair. A few months later, I purchased pumps for $250. I have had them for 3 years and gotten at least 450 wears out of them and they are still going strong. At this point, wearing them has cost me roughly 62 cents per wear. 


Here's another example: You need to furnish your apartment and when deciding between expensive solid wood furniture and Ikea,  you mosey over to Ikea. You stock up on $100 shelves, $300 couches and $150 tables. Good deal right? WRONG! In 16 months the shelves are falling apart, the couch is worn and the tables are less than presentable. Now you have to replace the pieces and you end up investing in the better quality items you should have gotten the first time. While you saved money on the front end, you actually spent more on the back end. That example is a bit extreme but I think you get my drift. In terms of everyday costs, consider this:  Lets say you $90 on groceries for the week and $15 for lunch everyday. Your groceries can last a week and a half or even longer if you buy staple foods but that $15/day lunch adds up to $75 for 5 days and it only amounts to ONE meal per day. 


Stop thinking about things in terms of the initial cost and  start seeing the long term benefit or lack there of. 


Stay focused! WE can do this!