THE VALUE OF VALUE

Neal A. Deutsch, CFP^®

Published in Rivertown Journal, July 2010

The word value can be used in a variety of ways to express different feelings: "I can go shopping and get good value for my money. I value our friendship. I will protect my values system." The word individually can be defined in a varied way- worth, importance, appreciation, assessment, or denomination to express our need to assess, be grateful for, define significance, note magnitude of evaluation or quantify profit. What does the word value mean to you, and how to you incorporate it into your everyday life?

Years ago we had limited choices in our lifestyle- not so anymore. In today's post recessionary times the past few years has led us all to be a bit more conscious of spending and budgeting. We've been tightening our belts (you have, haven't you?) looking for bargains, perhaps clipping coupons or waiting for the right time to make that "not so necessary" purchase. The big question I have for you is this: "What changes have you made in the past year to significantly cut down the outflows of your monthly budget creating more value for your money?

Let's start with utilities- your phone and electrical and gas company. While I don't advocate switching providers unless you have done all your homework, maybe it's time to review your calling plan. I recently was in a Verizon store and did an evaluation of my plan- it seems for the past 8 months I did not get even close to using my allotted minutes, which means I paid for but did not utilize the amount of time I paid for. By adjusting down to more suit my needs, I cut down significantly the monthly fee. I'll check monthly on how I'm doing, and can always raise it. Electric and gas? If you go to your provider's site, you will be surprised to find at least a dozen alternatives to your basic provider. The business of supplying utilities has expanded greatly, and you are not saddled with only your basic provider. Look carefully and do your calculations: there is no disruption of service, and you can save significantly on your monthly utility bill. In Rockland County, go to Orange and Rockland and "pick an energy provider." Prepare to be amazed at the plethora of choices.

I've always been a creature of habit when food shopping- not anymore! I am amazed that in a commoditized world, the same item of food can vary greatly from market to market. Take the challenge- the next time you go food shopping, write down the price of the 10-15 staples you always buy. The next time you shop, go elsewhere and compare. You may be shocked at the variance of price for the same item…I was. Don't sell short the little key fob or membership card they offer you. I live to see how much I saved just by letting the nice cashier scan my card before checkout! I really feel bad for those who don't scan a card before checkout- the cost difference is significant.

Ask for discounts- 75% of the time, you'll get it. Negotiate your credit card rate. Comparison shop for the larger purchase- a TV, washing machine or a car. Evaluate, estimate, appraise and calculate. Think about everything you do and who you deal with. Do you feel that you are getting value for your money? Do they provide to you the best of service, from your restaurant server to your Financial Planner? If not, it's time to revisit your values...

If hearing from me once a month isn’t enough, come visit me in our new blog site at www.chestnutblog.com.  If you think I’ve got pearls of wisdom here…you ain’t read nothin’ yet! See you there!

Neal A. Deutsch is a Certified Financial Planner^™  & Registered Securities Principal, offering securities through First Allied Securities, Inc., member FINRA/SIPC.  Neal is President of Chestnut Investment Group in Suffern, NY, helping people with financial planning since 1984. Please feel free to call Neal at (845)369-0016 or email him with your questions at neald@chestnutinvestment.com.

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