The 20 Laws of Saving Money

HelpSaveMyDollars.com's The 20 Laws of Saving Money aim to save you the MOST amount of money each month.  Try to incorporate as many of these laws as you can into your life.

Law 1:  Change Your Thinking – This may sound like more of a psychological law than a financial law, but it is very important.  Change your thinking simply means that in order to save money, never say the following statement:  "Oh, it's only a few dollars!"  NO!  A few dollars here and a few dollars there will add up to lots of money––money that should belong in an emergency savings fund or money that should be put away for retirement and not used for purchasing unnecessary items.  Regardless of how cheap the item is you want to buy, if you don't need it, don't buy it.

Law 2:  Forget the Original Cost – You're in the clothing store and you are eyeing a beautiful new shirt that normally sells for $100, but is on sale at a final cost to you for $30.  That's a 70% discount, which sounds great.  But, if you don't have that $30 to "throw away" on a new shirt that you really don't need, then you should not buy the shirt, regardless of how much of a discount or bargain the store is offering you.

Law 3:  Be Wary of Financial Advisors – Many, not all, financial "advisors" will advise you and encourage you to buy certain investments from them.  You will most likely pay a very high commission to the advisor for these investments when you could have purchased these same investments (e.g. stocks, bonds, mutual funds, annuities) with very little to no commission, say at a discount brokerage firm.  In this case, they are not financial advisors, but simply folks trying to sell you a product and who are looking out for their own best interest instead of yours.  You should not only make sure that you are not getting ripped off from these commissions, but also make sure the information and advice your financial advisor is telling you is correct, up-to-date and accurate. If you don't trust your financial advisor, it is best to get a new one and follow your instincts.

Law 4:  Indulge at Home – Those die-hard coffee lovers who buy coffee at a coffee shop for $5 everyday are spending $150 per month and over $1,800 per year on a cup of coffee alone!  Outrageous!  To save money and still enjoy your cup of joe, brew fresh coffee at home and bring it with you in a portable coffee cup to work so you can skip the daily (or bi-daily) coffee shop visit—and save money at the same time!

Law 5:  Read it Online – If you subscribe to a newspaper or a magazine, it is best to cancel the subscription now!  This is because in most cases, the same news articles or similar ones are posted on the publication's website, which is free for you!  Save money by reading your favorite newspapers and magazine articles online.

Law 6:  Lose the Gym Membership – It is so important to exercise to avoid health problems in the future.  However, paying money to exercise may cause financial "health problems" too.  Instead of paying to use the treadmill, go out to your favorite park or around your block for a run or jog.  For lifting weights, dumbbells cost under $20 and work just as well as the ones at the gym.

Law 7:  Go to the Library – New books can be expensive and since you only read the book once, there's no need to spend $20-$30 on a brand new book when you could take-out a book for free at your local library.

Law 8:  Shop at Department Stores – You will save so much money in gasoline for your car if you shop at stores that cover all the basics: grocery, clothing, electronics, pharmacy and more.  This way, you won't have to use up all of that gasoline by driving to each individual store.  Department stores allow you to accomplish most of your shopping needs at one location!  Good for your wallet and the environment.

Law 9:  Eat In – Restaurants are expensive and although they can be fun experiences, the bill that comes at the end of the meal can be painful.  It is extremely important to limit the number of restaurants/take-outs you utilize so you can save money.  Bring your own lunch to work every day in order to stop spending $10 per day for lunch at the café.  Open up the grocery store's circular and whatever foods are on sale is what you should buy to prepare for dinner that week.

Law 10:  Make a List at the Grocery Store – And stick to that list!  If you need milk, butter and eggs don't come out of the supermarket with orange juice, chocolate and potato chips.  Not straying from your list of the items you NEED, will prevent you from spending money on foods that are frivolous.  Also, it is important to not allow the foods you do purchase to sit in the back of the refrigerator and become spoiled—it will cost more money to replace these spoiled items.

Law 11:  Clip Coupons – The Sunday newspaper is a great source for fantastic money saving coupons.  There are also several online websites that offer free coupons. Also, check the manufacturer's website for direct coupons.  Be sure to not let them expire.

Law 12:  Sale Means Quantity – Whenever an item that you normally need and use is on sale (e.g. soap, paper, non-perishable items, pens) buy the largest quantity of that sale item as possible.  This will ensure that you never pay the non-sale price for any of your essential products.

Law 13:  Replace Light Bulbs with Compact Fluorescent Light (CFLs) – CFL bulbs use much less energy than those regular incandescent bulbs.  Less energy means a lower electric bill. CFLs last longer (sometimes up to 6 years) and are better for the environment.  They may cost a bit more than the regular light bulb, but they will eventually light up your wallet (pay for themselves) in a few years.

Law 14: Turn it Off – After you've finished watching the news or your favorite primetime show, do your bank account a favor and shut off the television.  Also, don't keep the computer running overnight—it is not good for the computer nor will it save you money.  Plus, to save even more money on your electric bill, unplug cell phone chargers when not charging your cell phone—the charger still uses electricity even when it's plugged into the outlet with no phone.

Law 15:  No Cash, No Way – This law applies to credit cards.  Unless you cannot eat without using your credit cards, try to use cash only on all of your day to day purchases (which should be very little!). This will for sure keep you out of debt (which will increase your credit score and eliminate the awful thought of interest accruing on your credit cards when a balance remains on them).  Plus, you will spend less if you use cash because psychologically you are physically removing cash from your wallet, which visually shows your depleting cash supply—rather than using a piece of plastic as a way to purchase things.

Law 16:  Never Use A Real Estate Agent – If you are selling your home or trying to rent it out, you can save a ton of money by selling your home by owner.  Real estate agent fees can cost you as much as 4 to 6% of the selling price of the home, or if you're renting the house out, the agent's fee is usually 15% of the first year's annual rent.  Although selling by owner will mean you will have to run the open houses, who knows your home better than you?  NO ONE!  Plus, there are tons of websites, which will allow you to list your home on the site for free or for a minimal charge.  With determination, a great brochure to hand out to prospective buyers, and a professional yard sign, your home is bound to sell.  Remember, you only need one buyer!

Law 17:  Negotiate! – Whether you are buying fruit from a fruit stand off the street, buying a home or car, or buying a new pair of sneakers, ALWAYS ask for a lower price!  You have nothing to lose––the worst thing the seller can say is "no"!  For in-depth tips on HOW to negotiate, click here

Law 18:  No More Paper Towels – You would be surprised how much you spend on paper towers each year!  While paper towels are an easy way to clean up a mess or dry the dishes, they don't come cheap!  Instead of paper towels, buy 10 to 15 washcloths (which costs less than a pack of paper towels) and use those to clean, dry your hands and dishes.  Save money and trees!

Law 19:  Invest in Stocks For The Long-Run – If you have money invested in the stock market, and you need it within 10 to 15 years, take it out of the market  immediately!With the highly volatile and unpredictable stock market in this day in age, it could take decades to regain your losses.  That's why stock market investing is best for the long-run.

Law 20:  Re-Gift – Gifts can be very expensive.  In this economy, there is no need for gifts.  Try to not give gifts––call the person and show them your love in lieu of an expensive gift that will get you deeper into debt.  If you absolutely insist on giving a gift, try to give the person a previous gift you've once received (re-gifting).  This will save a lot of money and still put a smile on the recipient's face!  Also, don't spend $4 on an expensive card––make one for free on the computer or by hand.  Remember, it's the thought that counts!These are The 20 Laws of Saving Money! If you follow these laws in some way, shape or form, money will flow your way.  It's as simple as that.  There's no magic here.  However, Uregardless of how troubling your financial situation is, never give up.  It's up to you to fix it and that's what HelpSaveMyDollars.com is trying to help you do!  Use our Expense Calculator to create a budget that works!

Judge Cuts Graubard Fee, Orders Partners to Return Gifts

Brendan Pierson ContactAll Articles

New York Law Journal

September 13, 2011

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A Manhattan surrogate has slashed to less than $16 million a $44 million contingency fee sought by Graubard Miller for its work on behalf of the widow of New York real estate magnate Sylvan Lawrence, finding that, in retrospect, the firm's contract was unconscionable.

However, in Estate of Sylvan Lawrence, 175/82, Surrogate Nora S. Anderson rejected a bid by the estate of Alice Lawrence, Mr. Lawrence's widow, to recoup $18 million in fees already paid to Graubard by Mrs. Lawrence under an earlier contract. Mrs. Lawrence died in 2008, and her three children now control her estate.

The surrogate separately ordered three Graubard partners—C. Daniel Chill, Steven Mallis and Elaine M. Reich—to return more than $5 million in gifts they received from Mrs. Lawrence.

Surrogate Anderson's order mostly confirmed a report prepared last year by Howard A. Levine, a former New York Court of Appeals judge who served as referee. Mr. Levine recommended that the court reject the Lawrence estate's claim to recoup fees while reducing the fee still owed the firm, but he also recommended that the partners not be required to return the gifts (NYLJ, Sept. 8, 2010).

Graubard Miller began representing Mrs. Lawrence in 1983 in litigation over the estate of Mr. Lawrence. Mrs. Lawrence wanted to liquidate the real estate holdings, but Seymour Cohn, Mr. Lawrence's brother and business partner, had been named executor and did not want to sell the holdings.

In 2004, after Graubard Miller had billed more than $18 million, Mrs. Lawrence asked to switch to a new fee arrangement, under which the firm would receive an hourly fee and a 40 percent contingency of recovered funds.

Less than five months later, the final piece of the litigation against Mr. Cohn, who had since died, settled for more than $100 million, which would have entitled the firm to a $44 million fee. Mrs. Lawrence refused to pay and hired new counsel.

In August 2005, Graubard began a proceeding in Surrogate's Court to compel Mrs. Lawrence to pay the fee. Mrs. Lawrence filed a separate suit in Manhattan Supreme Court seeking recision of the agreement, return of the $18 million in fees she had already paid the firm, the return of the $5 million in gifts to the three Graubard attorneys, and reimbursement of the $2.7 million she paid in taxes on those gifts.

The Surrogate's Court denied Mrs. Lawrence's motion to dismiss. She appealed, and the case eventually reached the New York Court of Appeals, which ruled in 2008 in Lawrence v. Graubard Miller, 11 NY3d 588, that it did not have enough information to decide whether the fee was unconscionable (NYLJ, Dec. 3, 2008).

Judge Theodore T. Jones Jr. at the time said that while the fee "on its face" seemed "disproportionate" to the work Graubard Miller did, "we have not been presented with facts to refute or support this hypothesis, or to evaluate the agreement's unconscionability."

The case was sent back to the surrogate, and Mr. Levine, senior counsel at Whiteman Osterman & Hanna, presided over a trial in 2009.

In his final report, Mr. Levine said the contingency fee the firm stood to earn, which would be the equivalent of $11,000 an hour, was "astounding." He said the firm had not shown that financial risk it incurred justified that level of compensation, or that its work had led to the settlement.

However, he rejected the claim by the Lawrence estate that the contingency agreement was unconscionable from the beginning because it said Mrs. Lawrence had not been fully informed when she entered into it. The estate had argued that the firm should be paid according to the original hourly agreement, which would have entitled it to only about $1.6 million.

Instead, Mr. Levine devised a new formula for the firm's compensation that preserved its contingent nature while yielding a lower figure of about $16 million.

Mr. Levine also found that the three attorneys who received gifts from Mrs. Lawrence did not have to return them.

'Appropriate Credit'

In adopting most of the recommendations, Surrogate Anderson said that Mr. Levine had struck a workable compromise between the parties.

"Having determined that the Revised Retainer had not been unconscionable at its inception, the Special Referee recognized that the parties had indeed entered into a valid contract," Surrogate Anderson said. "However, he further recognized that, if enforced to the letter of every one of its terms, the contract would in retrospect be unconscionable…i.e., in this case, it would serve as a lawyer's license to overreach.

"Thus, the size of the award he recommended gives the firm appropriate credit for services rendered and results achieved under a contract that the record disclosed was duly entered into," the surrogate said.

In rejecting Mr. Levine's finding on the gifts, Surrogate Anderson said she was persuaded by evidence that Mrs. Lawrence's gifts were "not the product of [her] unfettered choice."

She added, "There is here a combination of dubious circumstances that emit an odor of overreaching too potent to be ignored."

Specifically, Surrogate Anderson said, the partners had kept the gifts secret from Mrs. Lawrence's three children and from their own law partners. They also had not advised Mrs. Lawrence that, because of gift taxes, the actual cost of the gifts to her would be greater than their face value.

Graubard was represented by Mark C. Zauderer of Flemming Zulack Williamson Zauderer.

"Although we believe that the full amount of the contingency fee should have been awarded, we're extremely pleased that the surrogate agreed with Mr. Levine that Mrs. Lawrence freely entered into the modified fee agreement with full knowledge of the relevant facts," Mr. Zauderer said.

However, he said his client would appeal the reduction of the contingency fee.

"We think there was no basis at all for recommending a reduction of the fee," Mr. Zauderer said.

Michael A. Carvin of Jones Day, who represented the three attorneys, said he "completely" disagreed with the judge's ruling.

He said the surrogate should have deferred to Mr. Levine, who was more familiar with the details of the case because he presided over the trial. He said the surrogate had ignored evidence favorable to his clients, including thank-you notes they wrote after receiving the gifts.

Mrs. Lawrence's estate was represented by Daniel J. Kornstein of Kornstein Veisz Wexler & Pollard.

Mr. Kornstein said he will appeal the ruling on the fee and is pleased with the ruling on the gifts.

@|Brendan Pierson can be contacted at bpierson@alm.com.

 

Rest Breaks and the Law

Rest breaks

Most workers have the right to take breaks, but whether or not you are paid for them depends on the terms of your employment contract. There are special rules about rest breaks for some types of worker - especially those working in the transport industry.                               

Types of breaks

You will normally have a variety of different breaks from work. These can be broken down into three types:

• 'rest breaks' - lunch breaks, tea breaks and other short breaks during the day
• 'daily rest' - the break between finishing one day's work and starting the next (for most people this is overnight between week days)
• 'weekly rest' - whole days when you don't come into work (for many people this will be the weekend)

The second and third types of break are almost never paid unless you have to remain 'on call', meaning you are available to work. The first type is often paid, but doesn't have to be unless your contract says so.

• Contracts of employment

How much break time do you get?

The amount of break time you get is usually agreed with your employer. It may be written down somewhere (eg in your contract of employment) or might just be part of your employer's standard practice.

Your employer must give you at least the rest breaks required by the Working Time Regulations. They must also ensure that your health and safety is not put at risk. This means that your employer might have to give you more than the amount set out in the regulations, if this reduces a health and safety risk.

• Employers' health and safety responsibilities

Young workers

If you are under 18 but over 'school leaving age', you are classed as a young worker and have different break allowances to adult workers. You are under school leaving age until the end of summer term of the school year in which you turn 16.

• Young workers and working hours (young people section)

Rest breaks - a break during your working day

As an adult worker (over 18), you will normally have the right to a 20 minute rest break if you are expected to work more than six hours at a stretch.

A lunch or coffee break can count as your rest break. Additional breaks might be given by your contract of employment. There is no statutory right to 'smoking breaks'.

The requirements are:

• the break must be in one block
  
• it cannot be taken off one end of the working day - it must be somewhere in the middle
  
• you are allowed to spend it away from the place on your employer's premises where you work 
  
• your employer can say when the break must be taken, as long as it meets these conditions

Daily rest - a break between working days

If you are an adult worker you have the right to a break of at least 11 hours between working days. This means as an adult worker, if you finish work at 8.00 pm on Monday you should not start work until 7.00 am on Tuesday.

Weekly rest - the 'weekend'

If you are an adult worker you have the right to either:

• an uninterrupted 24 hours clear of work each week
• an uninterrupted 48 hours clear each fortnight
  

Exceptions to the regulations

Your working week is not covered by the Working Time Regulations if you work in the following areas:

• jobs where you can choose freely how long you will work (such as a managing executive)
• the armed forces, emergency services and police are excluded in some circumstances
• domestic servants in private houses

The rights to breaks apply differently to you if:

• you have to travel a long distance from your home to get to work
• you constantly work in different places making it difficult to work to a set pattern
• you are doing security or surveillance-based work
• you are working in an industry with busy peak periods, like agriculture, retail or tourism
• there is an emergency or risk of an accident
• the job needs round-the-clock staffing (such as hospital work)
• you are employed in the rail industry and you work on board trains or your activities are irregular or linked to seeing that trains run on time

In these cases, instead of getting normal breaks, you are entitled to 'compensatory rest'. This is rest taken later, ideally during the same or following working day. The principle is that everyone gets a minimum 90 hours rest a week on average. This is the total of your entitlement to daily and weekly rest periods, although some rest may come slightly later than normal.

Mobile workers

If you work in air, road or sea transport you are what is known as a 'mobile worker' for the purposes of the Working Time Regulations. This means that you are excluded from the usual rest break entitlements. Instead, you are entitled to 'adequate rest'. This is a regular rest period long enough to make sure tiredness, or other safety issues, do not cause you to injure yourself or anyone around you.

• Download 'Working time rules for workers in sea transport' (PDF, 208K)Opens new window

• Help with PDF files

• Working time rules for workers in road transportOpens new window

Do you have to take your breaks?

It is recommended that you take your rest breaks. They are there to protect your health and safety and you are entitled to them.

• Your health and safety responsibilities

What to do if you aren't allowed to take a break

You should raise the matter with your manager if:

• your job is organised in such a way that does not allow you to take breaks
• your employer does not allow you to take your breaks

If you have an employee representative eg a trade union official or health and safety representative, they can take up the matter for you.

If you cannot solve the problem, you may be able to make a claim to an Employment Tribunal.

• How to resolve a problem at work

Where to get help

If you need further help the Pay and Work Rights Helpline offers free and confidential advice on working hours.

• Pay and Work Rights Helpline