But by the spring of 2008, the financial world seemed to be coming undone, unemployment was rising, and among the fashionistas, cheap was the new black. [Lew] Frankfort and his executives reconsidered. They agreed it was time to create a more “youthful energy” for the brand. “This was an attitude we felt we were missing,” says Frankfort.

Higher end companies and brands are lowering prices to attract customers. Coach has announced a new line of products that cost less, so has J. Crew and Vera Wang. The items are still costly but  seemingly more affordable.

At a certain point, there is a price threshold that demands more. When you spend $200 for a television set you have a certain set of expectations, but when you spend $1000 or $2000 for a television set there are a different set of expectations. The same applies when you are buying an item that is not a necessity.

Cheap can be a pejorative term. Buying a fashion item cheap is equated in my mind with a fad or a trend. Just because something is popular now doesn’t mean that it will always be fashionable. Spending a small amount of money on something that you may use for a short time because it is cheap is generally wasteful. There are exceptions to this rule, but when it comes to spending upwards of $200 or $300 on an item, for most people this amount makes people pause.

If companies are lowering the cost of the items they are selling in order to gain more customers, is it possible that the prices were too exorbitant to begin with?  A person who might not blanch at spending $300 for a handbag may have difficulty spending $1000 for a handbag, or have greater expectations. At $300, will the style be fashionable in two years?  What if you find an item that will be fashionable, but not trendy that costs $450 is that a better investment? Maybe investment would be a difficult term to use but a well-crafted durable item that will still be in style after a few months is definitely worth the price.

Are a you a fan of just charging it all and then paying the bill when it comes? According to CreditCards.com that may be damaging your credit score. Not only where you buy but what you buy seems to have an impact on a credit card company’s profile of spenders. Prior to the new credit card law, companies would  use the information about your purchases to lower your spending limit.

This made me reflect on two young ladies I saw making purchases of less than $15 at a thrift store. Would that purchase reflect on their credit score or spending habits? The only time I spend less than $15 on a credit card happens when a large department store has a special sale and you get an additional percentage off of any purchase made with the store’s credit card.

Cash on the other hand for certain purchases is hard to trace. Granted, if you are making a small purchase and you have a problem with an item, you would be less likely to be upset about a faulty $15 dollar item than you would for a faulty $150 or $1500 dollar item.

Where and how much you spend with your credit card, gives credit card companies an accurate picture of who you are – at least through your purchases. If you only use your purchases for certain items, then they have a flawed picture. But if you use cash for many of your purchasesthen credit card companies will have a skewed picture of you.

For an example of what types of purchases will affect your credit score, try the interactive shopping cart. Certain purchases decrease your score considerably, while other seemingly innocuous purchases will raise your score considerably.

You can’t always pay for items with cash, especially online purchases but if you are prudent in your spending with your credit card, then your score and credit limit may suffer less.

We all have those silly things that we do to save money. They may take time, or not be appealing to anyone but ourselves, yet we do them anyway.

Things like reuse a piece of foil that you used to cover a dish while warming or cooking something in the oven. If it’s still clean, why not use it again?

• Saving scraps of soap, material, pieces of paper to reuse.
• Collecting things from a friend to reuse for a project.
• Buying larger quantities or sizes of food than you will actually consume.
• Taking things just because they are free.

None of these are necessarily bad, but if you don’t reuse the items that you are saving or in the case of food (or materials) waste the extra – are you saving money? Buying an item just because it’s cheap or free is wasteful in itself and cheats another person who really wants the item.

For a little money saving humor – check this out!

Outdoor activities are starting to become more appealing.  Free festivals, concerts and baseball games are re-emerging as part of the social scene. What to do about food?

Good question. If you are going somewhere and you don’t want to have to be bogged down by a lot of containers then you might want to purchase food and a beverage. But if you do a couple of free things a week, then you will definitely hurt your budget.

Planning to bring portable food is a really simple way of keeping your finances in check. Even when you go to the baseball game, if you bring your own bottle of water purchased at a convenience store it will be half the price of buying it in the park. A little known fact is that some ball parks will let you bring in your own food if it is in a clear container/wrapping. To me, that defeats the purpose of going to a baseball game – but I will bring my own water since a 20 ounce bottle of water is $4.

Depending on the venue or event, there may be several food offerings or just one. Make your own food to take. Since outdoor concerts are special – even if you go once or twice a month – make your food special. Buy a favorite type of deli meat and a special roll add your favorite condiments and wrap in waxed paper. Like fruit – many berries are available inexpensively and easy to eat without utensils – blueberries, strawberries, raspberries, and blackberries. Put some chips or raw crunchy veggies in a bag and you have an instant side.

Container? You might want to take a picnic basket which can double as a tabletop if you are sitting on the ground. Or you may just want to use an insulated bag. If you want to keep hot things hot, put them in an insulated bag. Freeze a bottle of water to keep the cool things cool. Any old bag will do, really.  For messier foods, or anything that might spill, you may do better using a picnic basket or picnic backpack.

Depending on how long your food will be out, you might want to avoid bringing things that need to be refrigerated unless you have a cool pack in your bag.  Bottled water or your own container if there are no restrictions at the venue you are going to makes it easy to take your own beverage. Some places discourage wine or other alcohol in public parks, so for easy to clean mess, bottled water works well.

Let’s say you are going with friends and each of you wants to have something to share – make an extra sandwich, cut up a melon mix with other fruit and put it in a container. Very easy way have something sweet. Need ideas? A picnic doesn’t necessarily mean you have to take the whole house with you, this can be something easy to carry, and easy to clean up. Stuck for ideas?  Try these suggestions by Mark Bittman or the Picnic Site.

Many things are cheap now… does that mean you can afford them? The reduction in everything homes to  cars and even luxury goods make it tempting to make a purchase. Can you really afford the item? Lets say you couldn’t afford a house for $300,000 but you can afford the same house that has decreased in value to $200,000 or less right? It depends on the condition. If the house was a bank owned house in good condition without any major problems then the reduction in price is a good thing. 

On the other hand if you decide to make a purchase such as a home, buying it as is, especially if it is a bank owned or foreclosed property can be costly to make repairs to the property.  Fixtures may be missing, or broken and can be costly if you don’t have money set aside to make the repairs.

Buying something new at a reduced price, you still need to be able to maintain your purchase – even if it is an expensive suit that needs to be dry cleaned.  There is a cost involved. Realty Trac offers a REO buyers checklist which includes inspecting the property, negotiating and financing.

In areas with a surplus of properties, realtors or banks are willing to make deals on properties so that they can get rid of them, but that doesn’t necessarily mean that the price will be dirt cheap. After the purchase this does not mean that the property taxes have decreased with the price either. The taxes may still be set at the rate for the original price.

Buying real estate that has essentially been repossessed is different than purchasing a repossessed Rolex or car. You pretty much know what you are getting up front. A car can be checked out by a mechanic. Plus, repairs and maintenance would be less than for real estate. Even if you buy a builder’s closeout, negotiate. You might not be able to get the price decreased, but you can see if you can get some additional things thrown in for the price you pay, such as higher quality materials, landscaping for a house, or a parking space for a condo unit.

You  never know until you ask. Asking when you are the buyer with power can net you some great returns.