Guest blog: Kristen Hagopian on Surviving the Downgrade

Did last week's downgrade of U.S. debt followed by a roller-coaster ride on the Dow unnerve you? Well, according to a local expert in living within your means, what better way to prepare for financial tumult than to start living more frugally?

Kristen Hagopian (pictured at right), Chester County-based author of "Brilliant Frugal Living," provided me with her latest blog post on the topic:

Surviving the Downgrade

Okay, so unless you’ve been under a rock for the last week or so, you’re aware that U.S. debt has been downgraded. Yes, it’s unprecedented, it’s unnerving, it is also eventually reversible down the road if we truly get our act together, and in the meantime, it’s survivable. The key to minimal financial headaches in the meantime is to familiarize yourself on the ripple effects of the downgrade, and how you can protect yourself and your household.

As a result of the downgrade, American debt will be more risky for our creditors, and as a result, it will cost more for the United States Government to borrow money. As a result, it will cost you more to borrow money as well. Ripple effect: higher interest rates on credit cards, car loans, possibly home loans, etc. Prepare yourself now, and you can respond with a focused financial strategy.

Credit Cards: When it comes to your personal plastic, start paying the balances down NOW. Do whatever it takes, shop at the discount groceries regularly from now on, you’ll save thousands that you can then put onto your credit card balances. Looking for clothes, gifts, housewares? Shop at the thrift stores and save another bundle. If it’s feasible, go out one less day every week to save on gas. It all adds up huge, and those savings need to be used to pay down any outstanding credit. You will soon be paying more for your borrowing (sound familiar?), so reduce your debt spending, show Washington an outstanding example, and prevent your own debt from being “downgraded” by your lenders.

Stock Market Holdings: Worldwide stock markets have been all over the map with uncertainty in this past week. On one channel you hear an expert saying the uncertainty has panned out and you should buy-buy-buy the bargains, switch to another channel and another so-called expert is shrieking to sell-sell-sell and save yourselves. If you have sizable holdings in the stock market, for the sake of clarity and sanity, have a talk with a reputable financial advisor for straight talk on where they think the market (and your particular portfolio) could be better protected so as to ride out the bumps with a minimum of Tylenol.

Higher taxes – Independent of the downgrade, we’ve known for some time that tax loopholes are going to close and cap tax expenditures. Have a talk with your accountant, see how these changes might affect your household, and see how you can invest your money in ways that will minimize your (possibly) increasing tax burden.

Car loans – If you’re in the market for a car, do yourself a favor. Save your money and buy a used car with cash, rather than going for a car loan with (higher than expected) interest rates.

Home loans – If interest rates go down, fantastic, I’ll be one of the first to try to refinance. If interest rates go up, you’re looking at higher costs on home loans. If there is any “silver lining” in this, it’s that home prices may come down a bit more in response to the higher interest rates. Rotten news if you’re looking to sell, but somewhat helpful if you’re looking to buy. There has never been a better time to invest in real estate. The bigger the down payment, the better.

Bottom line: The best thing you can do for your financial sanity? Take a deep breath. This latest lunacy too shall pass. In the meantime, protect yourself, your household, your portfolio, and your bank account by thinking frugally on all of your purchases, living within your means, and generating a sizable nest egg for emergencies. Then, run for office (you’ll get my vote!), and show the folks in Washington how it CAN be done.

Kristen Hagopian is a motivational speaker, columnist & author of "Brilliant Frugal Living." Catch more money-saving tips via radio (or livestream) when she hosts “The Brilliant Frugal Living Show” every Tuesday at 11 a.m. on Philadelphia’s WFYL 1180am (www.1180wfyl.com) Her book is available at www.BrilliantFrugalLiving.com.

Chesco author Kristen Hagopian to be regularly featured on regional talk radio station

Kristen Hagopian, Chester County-based author of "Brilliant Frugal Living" and the related and highly informative blog, and columnist for our sister paper, The Daily Local News of West Chester, announced today that she will be voicing regular spots on the WFYL 1180 (AM talk radio) station in West Norriton, broadcasting on air and online in the Philadelphia area Wednesdays at 8:30 a.m.

Congrats to Kristen on conquering yet another media!

To learn more about Kristen, visit her website.

Below is her latest column, "A Frugalista's Guide to Summer Savings":

If you’re anything like me, you’re loving this fabulous turn to warmer springtime weather, especially after the crazy winter we all just endured. I mean, really, was Mother Nature totally hormonal last winter, or just plain mean? Both? When it comes to the warmer months that lie ahead, there’s no better way to welcome a spectacular summer than to dive into it well prepared, and for as little cost as possible.

The Clothes – We all want to freshen up our wardrobes with some fabulous new pieces. Shorts, summer dresses and suits, bathing suits, shoes — ladies, start your shopping engines. Did you just get an amazing deal on a summertime cruise? Upgrade with a new fabulous wardrobe to match! However you’re ringing in the summer, forget the cheaply made polyester knits, go for the designer names that make you look and feel great! Just don’t dare to buy them retail, not when they can all be found (for easily 50-95 percent off) at your local meticulously run consignment stores, thrift stores and church stores. I’m a bit of a fanatic when it comes to these goldmines, and trust me when I tell you, the best of these stores are taking couture clothing to an art form.

Kids’ clothes - Looking to update your kids’ wardrobes as well? Do your shopping in about five minutes time, for easily 90 percent off, with a click or two on Craigslist. As I type this, parents (far more organized than I) are cleaning out their kids’ closets, piling well-made, sturdy, easily washable designer name clothes into bags, and getting rid of it for $10 (or less!) online, often with detailed pictures you can comb thru to make sure it’s the right style for your kids. I’ve done this countless times, folks and I’ve never had a bad experience. Find a mutually convenient place to meet (local diner, school, church) and update your kids’ wardrobes with dozens of new outfits, often spending no more than $20 total. It’s a fabulous summertime ritual that does this Frugalista’s heart good.

The tax-write offs! – Somewhat-related clothing note: Once the weather starts hitting 80-degrees on a regular basis, you’re also in prime time to donate your winter clothes and gear to a local thrift shop or church store. Get rid of the sweaters, slacks, boots-that-never-quite-fit and old coats (you know, the ones in the back of the closet that you never wore), and above all else, make sure you get a receipt so you can detail the amount in your charitable contributions on your next tax form.

The utilities – To all of you who still wake up in a cold sweat thinking of last summer’s utility bills, I have an easy, lucrative challenge for you. Head to your local home improvement center for about 30 feet of clothesline ($5 tops), and tie it to whatever is standing upright in your backyard. Porch railing, swing sets or a hook attached to the garage. Then hit the local dollar store for $2 worth of clothespins. Start drying your clothes (especially your bath towels) on this handy, easily-taken-down clothesline, and watch your utility bills plummet compared to last year. To those of you with association rules against this activity, have a polite chat with your neighbors, then with your association board. Assure all involved that this new addition to your home will be virtually unseen by passersby, and casually mention that the savings (in the hundreds, if not thousands) will lend itself well to paying your yearly dues. The iron-clad association rules of years past (in the days of ever-rising home values and lower unemployment) may be somewhat more flexible in the current economy.

The beach gear – if you’re planning a beach trip and looking to get the kids a few new things for it, hit your local Dollar Store for everything you need! Shovels, pails, sand sifters, toys, nets, games to play in the car, and just about every other beach-worthy item they might enjoy burying in the sand.

The tan – if you’re over the age of 5, you’re well aware of the dangers of tanning unprotected in the sun. Not only does it prematurely age you at an exponential rate, but who the heck has the time to lay out in the sun for hours anyway? Hit your local discount grocery’s cosmetics section, and find the brand name spray-on tanners for easily 50-80 percent off. They look incredible, they take five minutes (yes, that’s minutes) to apply, they easily last for a week, and your gorgeous skin gets thru the summer looking perfect and protected.

Air conditioning – I know, it seems absurd to be thinking about air conditioning, especially since it feels like many of us turned off our heaters, oh, last week. But trust me on this, the frigid days of winter will feel a long way off come the first heat wave. One of the biggest money-saving tips for summer is simply being prepared for it by the end of spring. Now is the time to have your air conditioners serviced and finely tuned for optimal cool air production come summertime. The same air conditioner repairmen that can make you a same-day appointment today are going to have to put you on a five-day waiting list at a $100-just-to-visit premium to get to you in the 95-degree heat come August. If your air conditioner is on its last legs, now is the time to shop for a new one, and shop carefully for the one that will cool the square footage of your home in the most energy-efficient, lowest cost manner possible.

After this crazy winter, we all deserve a fabulous summer in the sun! Spend a couple of minutes utilizing these easy strategies, and you’ll not only save your skin, but your hard-earned cash as well.

Frugal On!!

Celebrate St. Patrick’s Day O’Frugal Style - guest post from Kristen Hagopian

Kristen Hagopian, Chester County-based author of Brilliant Frugal Living and self-proclaimed "frugalista," (pictured at right) of whose work and shopping tips I am a fan, has offered this St. Patty's Day-themed column:

In Stanley & Danko’s bestselling book The Millionaire Next Door, they conducted a detailed study of the immigrant backgrounds of American millionaires. When listing the “Top Ten Ancestry Groups of American Millionaires,” they determined that more than 400,000 American households with Irish ancestry had attained millionaire status. Pretty impressive.

One of the proven strategies used to create their lofty economic position: the extreme frugality of first and second generation Irish immigrants. You have to love it – 400,000 Irish millionaires can’t be wrong. When March 17th rolls around, do honor to St. Patrick with fabulously frugal fun.

If you’d care to celebrate St. Patrick’s Day with one of the finest Irish movies ever made, rent “The Quiet Man” from the library, whip up an obscene amount of popcorn with extra butter, take the phone off the hook, and enjoy a fabulous Irish fest with some fantastic Irish cinema. A truly hunky John Wayne, gorgeous redhead Maureen O’Hara, one of the best kisses ever caught on film, and rolling Irish landscape, all on the privacy of your own silver screen.

McDonald’s Shamrock Shakes! Yup, okay. I know. Trans fats, fake sugars, artificial colors, faux flavors, served in a cup that won’t decompose for a good 10,000 years. Trust me, I’m well aware of the health and environmental repercussions of this addictive frozen green McCrack. And if I don’t get at least one of them every March, somebody’s going to get hurt. A girl’s gotta do what a girl’s gotta do.

If you have kids at home that want to decorate the house, or better yet, if you’re feeling energetic and want to throw a party for the neighborhood kids, have fun. Save big bucks by skipping the party supply store and hit the Dollar Store instead. You’ll find adorable St. Patrick’s Day décor and party favors for a fraction of the price.

If the weather gods are being particularly kind, get online and find a nearby St. Patrick’s Day parade – they’re everywhere! Pack a picnic, spend the day outdoors, soak up some fresh air, sunshine and Irish good luck. What could be better?

If you have a bone deep need to enjoy some spectacular Irish entertainment in person, it’s incredibly easy! Head west to Lancaster to check out none other than Michael Flatley’s Lord of the Dance, appearing at the American Music Theatre on March 12! Do yourself a frugal favor and get the $36 tickets rather than the $56. A few seats difference will save big bucks, especially if you’re enjoying the show with a large group. Check out the site for more information.

If you see the Lord of the Dance and get hopelessly addicted, start saving a couple of bucks every week to get yourself to Nashville this July 1-5 for the 2011 North American Irish Dance Championships at the Gaylord Opryland Hotel.

Looking to honor the Irish by way of your kitchen? Yearning for a solid excuse to take a time-out from your lo-carb diet with a plate of potatoes? Get online to the Food Network and find yourself some melt-in-your-mouth spud recipes to go with a huge slice of baked ham. Carbs be darned, St. Patrick’s Day only comes once a year, Frugal On!

Kristen Hagopian is a motivational speaker and author of “Brilliant Frugal Living,” conducting humorous lectures on personal finance and wealth-building to civic, corporate and private groups. She lives with her husband and two kids in their as-of-yet unfinished fixer upper in Elverson. Her book is available at Amazon.com, is downloadable to Kindle and can be ordered at her website.

Kristen Hagopian's 'Top Five Frugal Investments' for 2011

Kristen Hagopian, self-proclaimed "frugalista" and author of "Brilliant Frugal Living," has passed along her latest column, apropos for those looking to save 2011.

Below are some words of wisdom from the Chester County mom and writer, pictured at right in the photo from her bookjacket. Learn more about Kristen by visiting her website or her Facebook page.

Kristen Hagopian's Top Five Frugal Investments you can make in 2011

Just about every January publication out there is hammering home their fabulous investment ideas for 2011. I have to admit, I’m addicted to those types of articles.
Whether they’re recommending I buy the stock of retail giants, car companies, aeronautical corporations or oil conglomerates, they all have their reasons for thinking their picks are the magic buttons to put money in your pocket this year. When the investment writer is a reputable one with a great history of good info, I love tracking their recommendations and seeing if they’re on the mark at year’s end. When they’re even close to hitting their predictions, producing returns of 5% or even higher, I find it incredibly impressive.

However, those types of investment endeavors are best enjoyed by those with somewhat large amounts of money to begin with. Many investment clubs can require at least $1,000 to start, which brings the demographic available to invest down tremendously. People can then fall under the mistaken impression that there’s nothing they can invest in that will make them money.

Well, I’m here to blow a gargantuan hole into that theory, with five outstanding frugal investments you can make for 2011. These investment ideas have been proven tried and true time and again, and I’m here to add my personal guarantee: Put your money into these investments and you will be rewarded with hundreds, if not thousands in savings.

1) A Warehouse Club Card - We’ve got three big warehouse clubs in this area: Sam’s Club, BJ’s and Costco. They’re all fabulous, with tremendous discounts that are nearly impossible to find retail. Depending on your family’s needs, you’re going to find yourself leaning towards one of the three. For us, BJ’s is hands down the best store for batteries (amongst other things), which we use with alarming speed in our house filled with gadgets and toys. Sam’s Club has tremendous prices on top of the line tires (amongst other things), so we head there for those. With Costco located in King of Prussia, this terrific warehouse store is slightly out of my driving range for errands, however, when I worked in the corporate sector a few years back in KOP, it was one-stop shopping for everything our company needed. Membership cards for these clubs usually run about $50/year, easily recouped over the course of a couple of visits.

Important Note: Do yourself a favor and resist the urge to impulse buy. You’re all grownups, you can do it. Just say no. Many times I’ve heard the tale of those who ran into Sam’s Club to buy bread, only to emerge dazed and confused an hour later with said bread, 10 DVD’s, and a leather sofa. Buddy up with a trusted friend for those first trips if necessary. With a $50 investment to purchase a membership card, our purchases of sharply-discounted batteries, car tires, vitamins, paper products and more has netted us thousands of dollars in returns on our investment.

2) A Crock Pot – what am I nuts? Nope. Whatever your rating as a cook, whether you’re (a) a gourmet chef, (b) terrified to go near your kitchen, (c) somewhere in between, you need one of these. Get yourself to a local consignment or thrift shop and buy one of these babies for $10 or so, and let it put monster amounts of money in your pocket. I’m a pot roast junkie, even more so when it’s surrounded by potatoes, carrots, slow simmered gravy. Oh yeah, baby. I know I’ve mentioned this before, but walking thru your door at the end of a hard day’s work and enjoy the smell of that fabulous dinner awaiting you is Heaven on Earth. Purchase that in a restaurant for your family and you’re easily shelling out $50. Do it at home for $10 (and perhaps 15 minutes of effort), and keep that extra $40 in your pocket (a.k.a. $2,000 by year’s end). This marvelous little invention alone will save you huge over the course of the year, and require very little effort on your part.

3) Continuing Education – we are incredibly lucky around here in that there are resources galore to take classes in any subject matter you love. Invest in yourself and learn something new this year! Head online to see what your local schools have to offer, or give them a call and have them put you on the mailing list for their catalog. You’ll be delighted at the diversity of courses, from elegant French for Beginners, Argentine Tango, Geneaology courses, Wine & Cheese Tastings or loads of Zumba for people far more energetic than myself. On a more frugal note, you’ll also find courses on how to easily change the oil on your car, do your own haircolor like a professional, clean & organize your house in a fraction of the time, fix and maintain your home appliances, how to interview in ways that make you stand out from the competition, painting and redecorating your home for a fraction of the price, and how to update your professional look for less.

Depending on the course you enjoy, this investment can not only save you thousands of dollars, but will also lead to higher levels of fitness and relaxation, a fabulous new look, and possibly landing that important job over dozens of other applicants. Put a dollar amount on that!

4) A Library Card – for every 100 people reading this article, 97 of you don’t own a library card. No worries, that’s easily fixed! This fabulous little gizmo is not only free and available in minutes with next to no effort, but will undoubtedly save you hundreds over the course of the year. Magazines, books, movies, DVDs, computer access and more. Cookbooks, instructional videos, workout tapes, they’ve got it all. Many even host fabulous events where you can meet famous authors – for FREE! If it’s something involving the printed and/or electronic word that you need, chances are excellent your local library has it, and did I mention … for FREE!

Love your local Borders/Barnes & Noble for the sofas & coffee? Trust me, every library I’ve been in has ultra-comfy furniture that fits my ultra-lazy self perfectly. Bring your own cup o’ joe and hang out. It’s fabulous. If you’re in any doubt as to how much it can save you, take a look at the bookshelves near you filled with books, magazines and movies that you bought, but haven’t looked at in years. Cha-ching!

5) Make one extra mortgage payment this year - Okay, this one sounds a bit unrealistic, especially to those hard working Americans who are having serious trouble just making their regular payments, much less tacking on one more. But hear me out. The average mortgage payment can run about $1,800/month. If you want to save that amount over the course of the year, that’s $5/day, or $35/week. Take 10 minutes on the phone with your bank, and create an account in which they automatically deposit $35 of your pay into it every week. By the end of the year, you’ve got the $1,800 you need to pound down one extra mortgage payment. Sure, you could withdraw it and blow it on overpriced holiday gifts or a fun weekend in Atlantic City, but then I’d have to hunt you down and completely flip out. Don’t create that kind of work for me, I beg of you.

The way interest and principal are calculated on a home loan, paying down one extra mortgage payment every year will save you TENS of thousands over the course of the loan (easily double that extra amount you put in) and shorten that loan time from 30 years down to easily 24 instead. By any account, that’s an investment that will pay off huge. Above all else, invest your hard-earned money in ways that will benefit not just your bottom line, but your heart, mind and soul as well. Frugal On!

Frugal living author to host area seminars Oct. 9 and 24

After a short hike on the rocks of St. Peter's this weekend (yes, I fell in, filling my hiking books with murky creek water ... but it was still fun ... *slosh, slosh*), I put on some flip flops and ventured a little further west to Morgantown.

My mission was to check out the Morgantown Goodwill store. I had to see if what I'd read on Kristen Hagopians' blog was true - that you can find designer handbags and suits for basically pennies.

In hindsight, it's probably a bad idea to visit any Goodwill store on a Saturday afternoon. This particular store - a large one with a "clearance outlet" in the back - was packed with families hunting for bargains. And I was there a little late in the day for the "best" finds, I believe.

Unlike Hagopian, I did not find a Louis Vuitton or Prada handbag, or any other name-brand bag, for that matter. But there sure was a lot of women's clothing. And if I was a size 4 (I don't believe I've ever been a size 4 ... skipped right over that one), I could've walked away with a gorgeous black beaded evening gown for $25. I also found several fashionable-looking winter coats (including a gently used Calvin Klein car coat priced at $14.50).

I didn't have a lot of time to spend digging that afternoon, but many folks were eagerly sifting through bins in the "outlet," where items including jeans and sweaters were going for dimes. On the non-outlet side, there were Evan Picone suits, Talbots tweed jackets, and Jones New York blazers. There were used and brand-new DVDs of children's movies, books galore, housewares, furniture, and even a Halloween costume shop.

In short, there were bargains to be had for all kinds of shoppers. Hagopian was right.

The savvy shopper and mom of two has been interviewed on Philadelphia TV news stations on timely topics including How to Throw a Thanksgiving feast for $40 (click here to see FOX video) and how families can revise their food budgets (click here for NBC video). Hagopian seems to know her stuff.

The Chester County resident (pictured below) put some of her tips down in a book that she guarantees will save you money. That's a pretty bold statement from someone who's trying to SAVE money, but the author of "Brilliant Frugal Living" backs it up: The book comes with a money-back guarantee if you don't save thousands of dollars in one year's time.

In the book, Hagopian says she eliminated the need for a second income when she made the decision to become a stay-at-home mom with her first child by saving more than $50,000 a year using the same tactics she put down in this book.

"If you think you can’t survive on less income than you’re currently bringing in, this book can help you stock a financial arsenal with tools and tactics that make Russian mercenaries look like Girl Scouts," Hagopian writes in the introduction.

Hagopian said her family of four was able to save thousands without sacrificing quality and add to savings in the bank - all during the recession.

The first nine pages of her book are available free on Hagopian's website, http://www.brilliantfrugalliving.com/. From what I've read of her blog and this excerpt, Hagopian's writing style is light with a girlfriend-confidante air. Her tips are sensible and matter-of-fact, and her "If I can do it, you can do it" attitude shines through.

On Hagopian's website, you can also purchase her book, "Brilliant Frugal Living" for $19.95 plus $4.95 shipping. It's also available on Amazon.com, at Sam’s Club and is downloadable to Kindle.

She also offers workshops to help people live more frugally and, of course, to promote her book. Two coming up are:

1) Main Line School Night workshop on Saturday, Oct. 9, from 1 to 3 p.m., at the Creutzburg Center in Radnor. Cost is $49 and you have to register with Main Line School Night.

2) Serenity Health & Fitness is hosting a holiday workshop on Sunday, Oct. 24, from noon to 2 p.m. at their spa in Red Hill. Cost is $15 in advance at the Serenity Health & Fitness website, or $20 on the day of the workshop. They are also offering copies of Hagopian's book for $15.