Financing vs. Layaway

When it comes to getting the things that you want and need in life, there are many options for purchase. For those of you considering financing and layaway, here are a few of the pros and cons for both:

Financing- Financing something that you want or need is a great way to get that object right then and there. When you finance a product you are able to leave the store with it that day which is very enticing to many people. Financing options very from store to store, but the general idea is that you are offered a line of credit to pay for the object and that you make monthly payments for a predetermined amount of time until the object is paid in full.

One of the downsides to financing something is that it does require a credit check and a hit on your credit. If you are over extended and finance too many things it can negatively affect your credit. Another problem with financing, is that there is usually an interest rate involved meaning you will pay much more for the item over time than you would have if you paid cash. Before you finance something you should make sure you can afford the monthly payment and don’t mind the hit on your credit.

Layaway- Layaway may not be as popular as it used to be, but it is still a really fantastic way to get the things you want without having to pay for them up front. With layaway there is no credit check required and no line of credit opened up. Generally you will have to put a bit of money down to secure the item that you want to purchase, and then you will have to make monthly payments to ensure that the item is held for you. A lot of layaway programs don’t require a minimum monthly payment, they just require that you make some sort of payment. When the entire balance is paid off you are then free to take the product home with you, as you will own it out right. The downside to layaway is that you don’t get to take the product home with you right away and you have to wait until it is paid in full.

Both methods of payment have their pros and cons. If you absolutely need something right away then financing is the way to go. On the other hand, if you can afford to wait, you may be better off going with layaway as you won’t spend any extra money on interest and you can still get the product that you want. When it comes to finances there is no reason to rush your decisions. Take time to figure out what is best for you and then stick with your decision.

Arizona bankruptcy attorney, Benjamin Skinner, helps those who have found themselves struggling to overcome debt due to life emergencies or financing issues.

When transaction receipts and records become redundant

Image attribution: FreeDigitalPhotos.net; standard royalty free license

Knowing how long to keep household records and receipts avoids problems such as inaccurate tax filings, inability to reconcile checkbooks or cash-flow, and inefficient debt management. Some documents are needed for a lifetime, others expire in months. In any case, being able to identify the functionality, validity and utility of household records and receipts is key in knowing how long they are needed.

One way to make individual or household archival decisions is with the help of a record-keeping reference guide. For example household record tips from the Ohio State University suggest warranties should be kept for as long as the corresponding property is owned, but recommend income records only be kept for six years. However, knowing the reasoning behind such references is also helpful in evaluating the accuracy of record-keeping decisions because individuals can have different record requirements.

Verification

Household records and receipts are used to document transactions, evaluate credibility, and verify tax claims. They can also protect and confirm identity, legal rights, health records and ownership. If the records are expired, invalid or so old they are no longer given any legal or financial credence, then there is a good chance they won't be needed for documentation and verification purposes. However, some household records such as birth-records never expire and should generally be kept for as long as one is alive.

Statutes

In terms of financial records, statutory limitations determine how long a particular financial transaction, debt or income can be legally enforced. These statutory limitations range between 2-15 years depending on the state, type of agreement and debt. For example, according to Nolo, in Kentucky a lawsuit on debt agreed to in writing can be filed for up to 15 years. However, the majority of states limit legal action to 2-6 years for the same contractually defined debt. Each states' specific allowable statutory time limitations and provisions can be obtained via state code or websites such as Nolo and CreditCards.com.

Taxation

The federal government also has a statute of limitations on money owed to it. In regard to taxes, the Internal Revenue Service (IRS) generally has up to ten years to collect taxes and 3-6 years to assess additional taxes per the online CPA Journal. Moreover, also per the CPA Journal, the amount of extra tax assessed affects how long the IRS has to make that determination. State taxes also have collection limitations; after determining what those limitations are and if they apply to particular tax situations, then a determination of the redundancy of tax records can be made.

System

Organizing household records is a skill because if it is done well, it can provide quick access to a variety of valid documentations for multiple tasks such as filing taxes, applying for loans, documenting assets, confirming identity etc. With digital record-keeping, retaining useful financial records and copies of important documents for decades is more feasible, but not necessarily practical. This is because too many records can affect computer processing speed and those records may also be redundant in the sense they cannot serve a functional purpose.

Things You Should Never Buy New

Things you should never buy new can be bought used at no great loss or don't need to be bought at all. Some new things either cost too much, don't taste as good or are just about to get old anyway. For example, that new cell phone made for the year you're in, but when the date is December 31st. Here are some more things that you should never buy new.

• Cabernet Sauvignon

Cabernet Sauvignon is a hardy grape that seems to grow everywhere and anywhere. That might be why it is often abrasive just after it's first produced. This wine and some others do age well and taste better with time because the flavors can soften, become richer and smoother on the palette.

• Oxygen

New Oxygen simply isn't necessary. All the oxygen molecules you breath are used, and one or two of the oxygen molecules you are breathing right now might even be the same ones breathed by your ancestors or any number of great and famous people in world history. For that matter, why buy oxygen at all unless you're going to space or scuba diving? Even then, the oxygen doesn't have to be new.

• Pickles

Pickles taste much better after they have been sitting in their brine or pickle juice for some time because they had time to absorb the flavors. A newly pickled pickle might not even taste like a pickle until enough time has passed for the pickle to brine. Pickles aren't just cucumbers either, many vegetables can be pickled and taste better after time.

• Blue Cheese

Things that need to ferment, such as blue cheese should never be purchased new because they won't have reached their full potential as a food product. Beer, and cider are things that need to ferment. If they are newly fermented they may be ok to eat or drink, but in the case of blue cheese, it's better to buy it aged and while it still edible.

• Wisdom

Wisdom by its very nature is generally time tested and very often free. Anything that's sold as a wise choice should pass the wisdom test. New wisdom is really just smart thinking, and smart thinking that is used over time becomes wisdom. Some questions to ask when told a purchase is a wise choice are: Is it really wise? Why is it wise? And which piece of wisdom is it referring to?

Advantages of shopping at BJs

Many people have heard of Costco and Sam's Club, but less may have considered BJ's a viable alternative to both these wholesale stores. BJ's is similar to Costco in some ways, but improved upon in others. For example,  BJ's allows manufacturer coupons, has self check out, and accepts credit cards whereas Costco currently does not have any of these features.

BJ's is set up more like a large supermarket rather than a warehouse making the shopping experience more enjoyable. When shopping at BJ's the ceilings may seem lower, the aisles may not seem quite so crowded and the checkout might be considerably faster. BJ's also carries a wide range of discounted products, some of which are also available at supermarkets such as Safeway and Whole Foods; examples of brand names include Legal Seafoods, Alexia and Stonyfield.

Other benefits of shopping at BJ's include instant online coupons, full service website, and allowance of credit cards as a payment option. Also, if you intend to shop at BJ's a lot, the no annual fee BJ's credit card offers a 2 percent rewards program on purchases made at BJ's, and one percent at other retail locations. Rewards are offered in the form of BJ's Bucks redeemable at 3000 points and usable for BJ's purchases.

If the BJ's credit card is used in combination with store coupons, manufacturer coupons and wholesale discount prices, one can potentially multiply savings four times if the BJ's credit card balance is paid off in full before incurring interest charges. BJ's allows the use of more than one offer or multiple coupons on purchased items. The BJ's credit card can also be used as a membership card according to BJ's, and BJ's if you shop on a state sales tax holiday, subtract the cost of tax as well.

When visiting BJ's online location, manufacturer rebates are also available. BJ's has products in a number of categories including electronics, office, home, baby, jewelry, sports and more. For high frequency use items like diapers, laundry detergent or your favorite meal BJ's offers discounted bulk pricing in addition to competitively priced electronics items such as HD televisions.

Other benefits of BJ's stores include longer open hours than Costco stores at some locations, autumn flu shot clinics, BJs tire store and BJs gas stations. Items purchased at BJ's online may qualify for an instant coupon. Monthly specials are also offered at BJ's in addition to free one day passes, available online, to persons interested in trying out BJ's before deciding on a membership.  A BJs membership also provides affiliate discounts such as 25 percent off car rentals and specialized services such s television wall mounting and discounted shed purchase, delivery and installation.

BJ's locations are in the Eastern United States, and there were 187 stores as of February,  2010. In the near future, four new BJ's locations are scheduled to open in Connecticut, Virginia, Maryland and New York. Some BJ's stores are also located closer to urban cores than Costco and Sams Club; this can lower commute times and gas expenses. If you don't particularly like free samples of food, you don’t have to worry about that at BJ's as they don't offer any helping you shop for what's on your list, and not what's on the sample menu.

Sources: 

1. http://bit.ly/kLiqJ (BJ's Wholesale Club)

When shopping turns into a shopping disorder

Shopping becomes a shopping disorder when the shopper loses financial responsibility, spends uncontrollably, and shops to feel better. According to the Journal of the World Psychiatry Association (WPA), the disorder is called, "compulsive buying disorder". It may also be referred to a "shopoholism". While a shopping disorder may not be considered by some to be a medical condition per se, it certainly is by the WPA and may be representative of an underlying and unresolved issue.
This article will identify and illustrate what a shopping disorder is and provide tips on how to go about remedying it.
i) Identifying a Shopping "Disorder"
There are several tell tale signs that shopping may be problematic and financially unhealthy. A few of the symptoms may include the following:

• Shopping for the sake of shopping • Amelioration of psychological unhappiness • Uncontrolled spending • Rationalization of excess shopping • Crankiness and denial that there may be a problem.
There can also be psychological symptoms associated with shopping disorder. These psychological conditions can be thought of to be the real problem behind the erratic shopping behavior which is more like the symptom than the problem itself. A few of the underlying psychological conditions include the following:

• Depression or depressive episodes • Manic episodes • Emotional voids • Social complexes
In all the above instances, the obsessive shopping is believed to be an expression of or relief from the underlying condition. For example, if a compulsive shopper consistently shops to escape a reality they otherwise don't like such as being emotionally lonely regardless of ability to afford the items purchased the cause is an emotional instability.

ii) How to Remedy Shopping Disorders:

Naturally the most obvious way to remedy compulsive shopping would be to stop shopping. However, not everyone who has this problem may be able to do so easily. In such cases they may need help whether it be companionship, social therapy, cognitive therapy, psychiatric treatment or just a friend.

By identifying what is causing the problem first, treating the compulsive shopping can proceed more effectively. One may want to ask the shopper how they are feeling, why they shop so much, how their relationships are going and if they feel depressed. Also, asking them about medical history, previous diagnoses and medications may point to the problem.

As with harsher and more severe addictions, shopping disorder may need to be approached pragmatically and with sensitivity so as not to place the shopper on the defensive. A good way to do this is to help them realize what they are doing is not going to help them by letting them realize the costs assuming they don't have an infinite supply of money. 

Summary: 

Shopping disorder is now a recognized problem in the field of psychology. While the disorder is not in the same class as diseases, addictions and neuro-chemical imbalances, it can be symptomatic of a more chronic or problematic psychological condition. As with any disorder the steps involved in dealing with it are identification, acceptance, and choosing to deal with it. Sometimes this process can be taxing on family and friends but it can be achieved through friendship, compassion and the help of trained professionals who are experienced and knowledgeable with the disorder and others like it.

Sources:

1) http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1805733/

2) http://tinyurl.com/m3bfz5
3) http://www.rediff.com/getahead/2004/sep/08ga-shop.htm