To get better service, get a name

Getting good customer service from a company, especially by telephone, can be a challenge these days. But here's a piece of advice, courtesy of my father, that can literally pay off:

Always get a name.

A name isn't typically the first thing I'm thinking about if I have to call some place like the phone company or my bank. It's usually because I'm unhappy about some incorrect charge or item on my statement and I want it fixed, and pronto. As soon as I can get a live voice on the other end of the phone--after punching "0" as many times as necessary to get around the automated service menu--I jump right into what's been done to me, and what the company should do to make it right.

Sometimes the first service representative I talk to can fix the problem, sometimes he can't. But here's why pausing my monologue long enough to get that person's name is important.

Establishes a relationship
Starting your call with "Hi, I'm NAME...who am I speaking with?" takes away some of the anonymity on both ends of the phone. A name helps the service rep (and you) remember that you're dealing with a real person, not just some faceless voice that you'll quickly forget as soon as you hang up.

Provides accountability
Information is only as good as its source. Getting the service rep's name makes him accountable to the information he's providing. If he's promised to remove the fee you're questioning, look into your issue further, etc., a name is essential to follow up on the conversation for a status report or if you're not satisfied with the result.

What's more, talking to different people can mean getting different information. If you call back about a specific problem and speak with a second or third service representative, you may get two or three differing perspectives on how it should be resolved. With a name to refer to, you won't be as vulnerable to the "You must have been mistaken" or "We'd never tell you that" defenses that bad-service companies employ.

Saves time and frustration
Having to explain your problem over and over again to multiple service people is time-consuming and frustrating. Working with the same person builds a history of what the issue is, what's been tried to fix it, and what else needs to be done. If you've ever called for technical support on your computer, you know what I mean.

Introducing yourself and getting a person's name isn't just good manners. It can be good business, and wise consumerism.

"It's Just Money" hosts this week's Carnival
Hungry to learn more tips and ideas to help you manage your personal finances better? Then check out this week's Carnival of Personal Finance at the blog, It's Just Money. A blog "carnival" is an easy way to discover other personal finance blogs that you might find helpful; it's essentially a compilation of dozens of recent blog articles all in one place. Check it out when you get a chance.

Three ways to balance your income and your expenses

You've been tracking your spending and what you once suspected is now backed by cold, hard fact:

You shell out more than you bring in.

So what do you do next? Well, the hard truth is that you have only three options when expenses exceed income.

The best option: Spend less
I can hear you now: "Gee thanks, CJ, why didn't I think of that?" And I'm sure you did think of it, but let's take it to the next level: "Spend less on what?"

First, start small. Evaluate every item you purchase and bill you pay for ways to cut back. You'll likely be surprised at what you'll find, and at how far you can go.

For example, I used to pat myself on the back for making my morning coffee at home instead of buying it. But I also was paying $11 for two pounds of Dunkin' Donuts coffee grounds (on sale, even!). When I bought a $2 can of Folgers (also on sale) I found that, to my unsophisticated palatte at least, it tasted no different. Over the course of a year, Folgers and Maxwell House have probably saved my family $50. Sounds small, but when applied over lots of different purchases, it quickly adds up.

Next, think bigger. Are your monthly transportation expenses (car payment, gas, maintenance) more than 15% of your household net income? Do your credit card payments exceed 10%? Are your housing costs (mortgage, taxes, electric, phone, cable TV) more than 40%?

If so, you're likely living beyond your means. To get on track, you may need to take radical steps, like moving to a less expensive home or selling your car. In the short run, such steps are difficult and emotionally painful. In the long run, though, they'll pay off in more peace of mind and less stress.

A good option: Sell stuff
Yard sales, consignment shops, ebay , and craigslist. There is no shortage of marketplaces to convert the kitchen table and chairs stored in your basement or the clothes cluttering up your closet into cash, which can go to eliminating those pesky monthly credit card payments.

You probably walk by something you own everyday that you or your family don't use or need anymore. Make a point to go through every room in your house every month or so with the specific purpose of finding items you can sell. M and I just recently received $100 from our consignment dealer for clothes our kids never wore and toys they never played with.

A costly option: Make more
I've listed this option last for a reason: It's usually first in people's minds.

The fact is, earning more doesn't solve overspending. When you bring in more, the tendency is to spend more--often resulting in more financial trouble, not less.

Plus, consider the costs. A higher income may require working longer hours at your current job, or in a second job. Time away from things you enjoy, or your personal and family relationships, is a steep price to pay for not being a little more disciplined in managing your money.

That said, it doesn't hurt to find out if you are making less than you are worth, an easy task at a website like www.salary.com. It pays to invest time in your education or job training to increase your income-earning skills. And if you can turn a pleasurable hobby into a money-making venture, all the better. But weigh the costs and benefits before you make a change.

Like this article? Then receive The Coin Jar by e-mail
I like it when the newspaper is delivered right to my door, don't you? You can get the same kind of convenience at The Coin Jar. Just enter your e-mail in the field under "Subscribe" in the top right hand corner of this page and posts will be automatically delivered to your e-mail inbox. It's easy and it's free!

Pay off the house or have another child? No contest

Not everything comes down to money. At least it shouldn't.

Many times the people I counsel through my church's financial ministry face hard, but fairly clear-cut, choices regarding their finances. Serious about getting rid of that $40,000 in credit card debt? Then consider selling the brand new car with the $400 monthly loan payment, I might say.

But not all decisions come down to just money. Some things in life aren't meant to be about money very much at all.

Family decisions
Terri Cullen, the "Fiscally Fit" columnist for The Wall Street Journal, wrote in the October 5 edition about the process she and her husband undertook to decide on having another child. Both approaching the age of 40--their mutually agreed upon cutoff for having more children--they felt time was running out for the chance to give their eight-year old son a brother or sister.

Together, they made a list of pros and cons to help them decide. The pros list was "short, but powerful," Terri wrote, starting with giving their son (hopefully) a lifelong companion. The list of cons was longer, not surprisingly, and largely money-related. Another child, Terri pointed out, would cut into their ability to save for retirement and pay off the mortgage early. Plus, there were the added costs of things like formula, diapers, and day care to consider again.

Sure, having kids costs a lot, as Terri says. But I was surprised at their ultimate decision. "I'd love to have one more child, but it doesn't make sense for our family," she wrote. "So it's official: Gerald will be an only child."

Kids not worth the cost?
M and I are both approaching 40. We have a 2-year-old son together, in addition to one daughter each from first marriages. For the last several months, we've been weighing the decision to add to our family, so I took special interest in Terri's viewpoint.

And I can't disagree with her and her husband more. When it comes to deciding whether to have a child, money and financial goals are fair considerations--but keep them in perspective.

My father is fond of saying that M and me are the kind of folks who should be having more kids. His point--aside from the fact that he'd love more grandchildren--is that today's world needs as many children with stable homes and loving parents as it can get. Instead, like Terri and her husband, many couples with dual careers and good incomes are deciding that the "cost" of kids is just too high.

Let your heart be your guide
Having a child, whether your first or fifth, is a very personal decision. No one--last of all me--has the right to judge the choice anyone makes. But I would encourage that it's a choice to be made mostly from the heart.

If you would love to experience the joys--and honestly, the many, many trials--of parenthood once again, go for it. Learn to manage your money well and your mortgage will get paid. You will find a way to finance their college somehow. You will retire someday, maybe with the financial means to live out more dreams than you thought possible.

Apples-to-oranges comparison
M and I will be fairly close to retirement age by the time our son graduates high school. We've adjusted to living on one income, but don't have much money to spare. We can't afford a single-family home in our area, and we might never be able to. And we'll need to replace our Honda Civic with a van if our family gets any bigger.

We don't relish these thoughts. Still, are they good enough reasons to hold us back from creating another child for our family to love, and be loved by?

Money is money. A child is a child. You can't make a more apples-to-oranges comparison.

So it's official: M and I are going for it. We're not expecting yet, but God willing, we hope to have to buy that van very soon.

Paying cash leads to an early clash

It's Day 4 of paying with cash instead of credit card in my household, and it's already caused a "fight."

In my September 22 post, "Three months on one income prompts a change," I told how M and I would no longer use a credit card to buy things like groceries, gifts, and household purchases, and use a cash-based approach instead. Even though we've always we paid off our credit card each month, I expect (and hope) that using the monthly cash we have—which is far less than our credit limit—will help us stay within our spending plan boundaries, and even spend less overall.

Last Sunday, October 1, I withdrew a modest amount of cash for this week's purchases. The approach tripped M and me up right from the start, but I've already learned a few things, and can see how it has the potential to have a positive impact on our spending behavior down the road.

A week’s spending in two days
We had been waiting for October 1 to arrive so M could do some grocery shopping. Our freezer had gotten so empty that it looked like we just moved into our home.

M left for the Acme immediately after church and loaded up the shopping basket from the list she'd carefully prepared. But when she got to the checkout counter, she discovered something: She'd left the cash at home. So she did what we've always done—pulled out our credit card.

She used the card again at Shop Rite for some more groceries. Later, she paid cash at Target for several other items in our monthly budget, such as socks, diapers, and toiletries. Not surprisingly, the combined total of the credit card and cash purchases exceeded the money I'd expected us to spend for the week. Let the finger-pointing and raised voices begin.

Communication is key
I thought I had told M that the cash I’d withdrawn wouldn't cover everything we wanted that week and she'd have to prioritize what to buy and when. At the time, she said she understood—but later admitted she really didn't know what I meant, or how this whole process was going to work, because I really hadn't explained it.

I'm guilty as charged. I'd spent a lot of time figuring out how we were going to do this, but not nearly enough discussing it with M. Good communication is critical to making this approach work, otherwise we risk spending too much of our cash before we have everything we need (a worry the credit card “conveniently” removed). So going forward, I think having money discussions will be more of a priority for us. We know they have to be.

More planning is required
M and I think ahead as much as we can already, but the cash approach makes it that much more important. For instance, as M found out, we have to get in the habit of making sure we have the money we need in our pocket—or at least have access to it—when we’re out.

We also have to account for every purchase we want to make as best as possible, or it has real consequences. For example, we’re going to a wedding this Friday and still need to buy the gift (which we did include in our monthly spending plan). Since we surpassed this week’s spending boundary, we’ll be paying for it out of next week’s allotment—not an ideal solution, but still better than putting it on the credit card and paying for it next month.

But a wiser way of thinking
I take two positives out of our troubles so far. First, M and I actually handled the trip-ups together pretty well. Our tensions rose quickly when discussing the shopping receipts, but we managed to walk away before things got ugly. When we revisited the topic later, the discussion started with apologies for mistakes on both sides. By the end, we felt a lot more on the same page.

Second, I see signs that this approach is going to help us be wiser, more disciplined spenders. We’re thinking a lot more about whether we really can, or need to, purchase an item before follow through. We know there is a very real limit to what we have, which always has been the case—but using a credit card, it just didn’t seem like it.

Carnival of Personal Finance is in town
Punny Money has "hit the trail"--creatively speaking--for the 68th edition of the Carnival of Personal Finance. Take a trip back through history and check it out. (At posting, it appeared Punny Money's site was down. Hopefully the situation will be corrected soon.)