All posts in category Financial Decisions

Personal Training: Is It Worth It?

The Initial Session

I recently explained how I ended up with my current gym membership to LA Fitness – and with that came a “free fitness assessment”.  We heard that it was going to be a “mini workout” but it actually ended up being the hardest workout I ever had. We met up with our assigned trainer who talked to us about our goals and measured our body fat (I forget how much but my goal should apparently be to lose about 13 pounds and G’s goal is to lose 50). He then took us through a grueling workout that, after I dragged myself off the floor, was actually amazing. I felt sore for the next 3 days – which is what I want after a workout.

Starting Prices

The sales manager started talking to us about personal training packages and prices after that but I didn’t want it at that point – I don’t like making impulse buys like that. Plus, my brain was mush after that workout. The only package I remember was the one closest to the package I would want:

$250 initiation and $40/session for 4 a month (i.e. $160/month) for 12 months

We went home at this point and we both agreed we had loved this trainer. The problem was that we had tried trainers before and really didn’t like them but we figured if we could get a trainer like the one we just had, that would be okay. I let the subject matter drop and a few days later, I decided that I wanted to get a personal trainer for G for Valentine’s Day.

What I wanted

I went in to talk to the sales manager for personal training and he quoted the price above again which was way too much in my mind. I had done my research online and decided that the most I wanted to spend was $120/month. My budget allowed for this because I had just stopped using a housekeeper which also cost $120/month. And in my mind, I’d rather have a personal trainer than a housekeeper.

I told him that I had specific things I wanted and listed them off:

  • $120 total a month for 12 months for 4 sessions/month ($30 for a 30-minute session)
  • $150 initiation
  • Eval session for free (he had previously told me that this would be the first session but wouldn’t be much of a workout)
  • I want to interview the trainers and pick one instead of having him pick one for me
  • Two for one: I wanted one trainer to work out both G and me – and this was a dealbreaker

The last point was one that I definitely had to had – G and I had talked about it and we loved working out with each other. We push each other to work harder and just have a lot more fun that way. The sales manager told me that he could get me the $120/month but there was no way to go lower on the $250 initiation. I still didn’t want to spend that much, so I left.

The Final Negotiation

I went back in a week later and asked to speak to the sales manager. He was out sick which disappointed me at first because he knew exactly what kind of deal I wanted. Instead, I talked to another trainer about what I wanted. I gave him my same list and told him that the sales manager had told me $120/month was fine but that I wanted a lower initiation. One important point: I never mentioned the initiation fee we had talked about. I didn’t do this on purpose but it came back to help me in the end.

He went and talked to whoever he needed to talk to then came back and told me what they could do. He offered me:

  • $120/month for 4 sessions (Check!)
  • Free eval session (Check!)
  • Two for one – G and I could both be trained on this plan (Check!)
  • A trainer he picked out (Boo! I couldn’t argue with this one because he said the trainer had to agree to train 2 people instead of 1. But he did agree that if we didn’t like the trainer, we could switch which was good enough for me.)
  • $150 initiation fee with 2 extra sessions thrown in – so it would be like $60 for free (getting down to a $90 initiation). YAY! 

That last one really surprised me – apparently, they had a special going on that would bring the initiation to $150 so when I mentioned that I was hoping to get a lower initiation fee, he thought it meant lower than $150, not the $250 that the sales manager had originally quoted me. And who was I to argue with that?

I really wanted the extra 2 sessions in writing but I didn’t really want to push – and I now know all of these people well enough that I don’t believe they’ll renege on that. So at that point, I agreed, signed all the paperwork and paid initiation and first month’s dues ($260). I went home and gave the workout journal they provide as a V-day gift to G and then gave him the news. He took it rather well for someone who I just told that I made a contract they would work out consistently for the next 12 months.

Just kidding, he was really happy about it actually (although he was upset at first about how much money I was spending on him).

Personal Training

We had our first session last week and it went really well. So far, I’m really liking our trainer although I don’t think he was as tough as the initial trainer. We were both exhausted afterwards so that says something. We’re writing each workout down as well and during the week, we go back and rotate through them (even though we only have 2 right now).

So do I think personal training is worth it? Definitely! You have to have the right attitude, the right trainer and the right budget – but if all of those 3 things come together, I think it’s a great investment into our health. I’m really excited to see how the next 12 months go but I think we can definitely keep it up and become healthier.

Do you use a personal trainer or have you ever in the past? What do you think about it?

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by youngprofessionalfinances on February 26, 2012  •  Permalink
Posted in Financial Decisions
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Posted by youngprofessionalfinances on February 26, 2012

https://youngprofessionalfinances.wordpress.com/2012/02/26/personal-training-is-it-worth-it/

How Much I Pay For The Gym

I signed up for the gym recently (which always reminds me of this Friends episode). Here’s what happened:

24 Hour Fitness

About a year and half ago, I got a 24 Hour Fitness 2-year membership for $300 from Costco. It worked out to about $12.50/month which was (and probably still is) the best price you can get for a gym membership. Over the year and half, I used 2 difference locations – one before I moved, and one after. The first one was okay inside but had a parking garage that cost 25 cents (?) with validation and of course, was always crowded. The second location was located in a plaza that had a lot of food options (bad when working out around dinner time), was even more crowded and pretty smelly.

Over time, I stopped going. It just got to the point where I wanted to work out at home instead. Total cost: $300.

Home Fitness

I decided to start working out at home instead of trying to go to that 24 Hour Fitness. Equipment at home can be expensive so for my birthday, I asked for the adjustable Jillian Michaels dumbell and my roommate got one as well. I also got an exercise mat – both this and the dumbells are really nice. I decided to try Jillian Michael’s Ripped in 30 which was supposed to be better than the shred and I can tell you that this definitely worked. I was working out 4-5 times a week and it was painful but I could see results within a week.

Also, because I have a Kinect, I wanted to try Your Shape Fitness Evolved. Although it was fun, I started getting bored working at home even though I was supplementing all of this with running at the park. Total cost: $40 ($160 if I didn’t get some of the stuff for my birthday).

LA Fitness

I wanted to go back to the gym but was definitely not willing to go back to 24 Hour Fitness. G and I decided to check out the LA Fitness that’s right down the street from us which we never looked at before since it would definitely be more expensive than 24 Hour Fitness. We took a tour of the facility and I fell in love with it. It’s such a great gym – it has high ceilings and a really open floor plan which makes it feel huge (and no where near as claustrophobic as 24). The equipment looked like it was in good condition, it didn’t really smell (thanks to how open it was) and best of all – it wasn’t crowded! It was the normal time I would go to the gym and where 24 would always have someone on each machine, there were so many free machines here, I didn’t even know what to use!

We decided that we definitely wanted to sign up but I wanted to make sure we were getting the best deal possible – which is difficult because I’m not very good at negotiating for things that I really want. We talked to the manager and he gave us our options which we took into consideration and left. We came back a few days later and finally agreed on paying $250 initiation and $40/month – for the both of us. This means each of us were only paying $125 initiation and $20/month.

I had done my research online and new that I only wanted to pay $20/month and although I wasn’t happy with the initiation fee, the only other option to get it cheaper would be to pay $759/3 years which I wasn’t willing to do. The deal I got works out to $23/month over 3 years while the 3 year option would have been $21/month. This works out to $72 more over 3 years but the peace of mind in having a month-to-month contract vs a 3 year contract was worth it to me.

Do I Regret It?

It’s been about a month since we signed up for LA Fitness and I definitely don’t regret it. I love the gym and I’ve been going at least 3 times every week. Since it’s closer to my house, it seems easier to go to and we’ve actually started going on the weekends. In fact, this past Saturday night, we didn’t have any plans but I knew I didn’t want to sit at home. Since we’re on a tight budget this month, we decided to go the gym – and it was a lot of fun!

I have to admit though that this isn’t all the money I spent on fitness. I mentioned in passing that I bought a personal trainer package for G for Valentine’s Day. Stay tuned for how they convinced me to do that – and how much I’m paying.

Do you have a gym membership? Are you happy with it? Do you think it’s worth the cost?

6 Comments
by youngprofessionalfinances on February 23, 2012  •  Permalink
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Posted by youngprofessionalfinances on February 23, 2012

https://youngprofessionalfinances.wordpress.com/2012/02/23/how-much-i-pay-for-the-gym/

How I Make More Than $100,000 At 25

Disclaimer: This is not a get rich quick scheme. I worked hard to get where I am today so I wanted to share my story.

I never really thought about money when I was a kid. I grew up in an upper middle class family with parents who both came from low-income situation. They worked their asses off to get where they were and I took that for granted. I’m the first to admit that I was spoiled. So when I went to college, I wasn’t thinking what could earn me the most money later on but I got lucky – I was interested in something that would pay very well once I graduated.

College

I studied Computer Science and when college was ending, I didn’t know what I wanted to do. My friends were getting jobs but I just didn’t feel like I knew enough to do that yet. What kind of job did I want? What area? I had no idea. I decided to make two plans – the first being to apply to graduate school. If I didn’t get in, I would start applying for jobs.

My friends started getting offers and their salary was ranging between $50-60K. This sounded like a lot of money to me but like I mentioned above, I never really had to struggle for money, so that wasn’t the first thing on my mind. I figured I wasn’t going to get into any grad schools (my grades weren’t stellar) so I started resigning myself to the idea that I would have to figure out what kind of industry I wanted to work in.

But then I got the letter.

Graduate School

I got accepted into my top choice Master’s program and I immediately accepted. The program was tough but it was exactly what I needed – I found a passion for Computer Science that I never had before. At the end of my first year, I noticed everyone was applying for internships, so I started too. I had no prior industry experience which many people in a Master’s program have – I didn’t even work in my field during undergrad (I chose other jobs that were more with my interests).

I started interviewing but no one seemed to want me. When I thought I would have to give up on the idea, one interview actually went really well – and they offered me an internship for that summer. They offered me $2112 bi-weekly, or an annual salary of  $59,136. I also ended up getting another offer but the salary was much lower – I believe it was around $1428 bi-weekly – so of course, I accepted the higher paid position (also, it was more in line with what I wanted to do).

The Internship

I feel really lucky with the internship I landed – I had a great experience with the people, I learned a lot and I loved my manager. Also, getting paid for the first time was exhilarating. I had never had this much money before! All of my jobs in college had been low-paying ones: I was a computer tutor for $10/hour, a writing tutor for $12/hour, etc. Now, I was making approximately $26 an hour! If you are still in school, I cannot recommend internships enough – but make sure it’s an internship that allows you to learn a lot and actually do the job you’ll want to do once you graduate.

When I finished the internship, my manager offered me a work study position during the school year so I would continue working there part-time while still attending school. I asked if they could give me a raise but he said the program I was in didn’t allow it – it was a program specifically for people still in school. I was conflicted because I had been offered a TA position of an Engineering class and I was really curious to see what being a TA was like. The TA position would pay about $1600 a month plus give me a tuition waiver of $2000/quarter.

I decided to take the TA position because I wanted the experience – I had plenty of time to work in the “real world” once I was done with school. I don’t regret this decision at all but I do regret one thing. At this point, I should have cancelled my student loans because my tuition was being waived anyway. But since I didn’t really know much about financial stuff, I still accepted the loans – which gave me a lot of money but also a lot of debt.

The Real World

As graduation approached, I started interviewing for full-time jobs. I got one offer at $75,000 + up to 16% bonus (it was consulting work) and also received an offer from the company I interned with – they offered me $83,000. I asked the consulting firm if they could go up at all but they stood firm so I asked the other company if they could do anything. They said they couldn’t raise my salary but they would give me a starting bonus of $2500. I knew I wanted to work with them, so I immediately agreed.

Things started off really well at that company. My position was still stable and I loved the project I was working on. I was put on a project that was just starting and because of that, I was able to become the expert on it. It was a really high profile project so it got me a lot of attention, which I thrived in. About a year in, I got a promotion with a 5% raise, making my salary $87,150. A few months later, I got another raise of 3% so I was sitting at $89,764.

However, the company wasn’t doing well. During this whole time, I felt really lucky to be getting raises because there were a lot of layoffs happening. Morale was at an all time low and it was just a depressing environment to be in. Another problem is that I knew a coworker’s salary (warning: never do that) and I knew we were similarly compensated but that I was doing a lot more work than he was. So when I found out that I got a 3% raise and he got a 5% raise, I was really upset.

I talked to my manager about it who told me it was more a seniority thing – he had been there longer – which I thought was total BS. I wanted my raise to be based off how much effort I put in, not how long I’ve been someplace. I started putting minimum effort in because I felt like it didn’t really matter anymore. I didn’t want to become satisfied with putting in the minimum (that’s not who I am) so with all that in mind, I started looking for a new job.

My Current Situation

I interviewed for a bunch of jobs but couldn’t find one that I really liked – until I found this one. They offered me the job on the spot at $95,000. I wanted a little more but I know that my pay is higher than average already, for how little experience I have. Remember, I only have 2 years experience and a Master’s degree. Most people going into a Master’s program already have 3-4 years experience.

I tried to negotiate but they didn’t seem willing to change the offer and I really wanted the job so I accepted. They told me that around February, I’ll be considered for a raise so I should be able to increase my salary at that point. Well, raises are coming up and I’m excited! I know it won’t be much but I’m hoping to get at least a little bump.

To supplement my income, I also rent one of the rooms in my house out and I live with G who also contributes to the household bills. From both of them, every month I receive $1285 which works out to $15,440/year. This means, my annual income is actually $110,440 which I am extremely happy about since, as the title says, I’m only 25 years old.

What This Means

I didn’t write this to “brag” in any way. I wanted to explain how I’m making a nice amount of money – by putting in A LOT of hard work. I suffered through my 4 years in college. Grad school was surprisingly easier than undergrad but it was still a lot of time and effort. I worked hard at my internship which paid off with the full time job offer once I graduated. I worked extremely hard at that job which helped me get my current position.

Of course, I make mistakes too. As I mentioned before, I wish I hadn’t taken out so many student loans. At the moment, I’m wishing that I didn’t have a mortgage and could be renting a cheaper place right now – although I’ve learned so much from buying a house. I’m still trying to cut expenses so I can save more. Having more money definitely doesn’t mean more happiness but it can mean more financial security. I’m still learning now – and I’m still working hard. Do I hope to make more? Of course! Do I want to save more? Definitely! Life is a learning process and I’m excited to continue my journey.

If you want to see how I spend my money, check out my current budget.

2 Comments
by youngprofessionalfinances on February 21, 2012  •  Permalink
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Posted by youngprofessionalfinances on February 21, 2012

https://youngprofessionalfinances.wordpress.com/2012/02/21/how-i-make-more-than-100000-at-25/

Website Hosting: Not An Impulse Buy

I just started this blog a week ago and I’m already having a hard time trying to convince myself not to go out and buy hosting right away. I’ve had other blogs in the past (I mentioned before that I still have a lifestyle blog) and I do tend to buy hosting and/or domains for them. For various reasons, I don’t keep them up and then it just becomes another waste of money – something I’m trying NOT to do anymore.

Therefore, I told myself I wouldn’t buy hosting until March 1. I know I’m not going anywhere because I love the PF community and I’ve already felt the love from them (thanks guys!) but I need to learn how to not do impulse purchases. Plus, I have a budget of $300 for “fun” in February and only $125 left. This would have to count in that budget and then…I’d be screwed.

When I bought hosting for my other blog, I used Bluehost.com. I’ve been happy with them so I’d probably use them again. Here were the total costs:

  • $9 – domain registration
  • $83 – hosting for 1 year

Total cost: $92 for one year

I compromised with myself and only bought the domain registration so far for $8 (on 1and1). I’m going to try to resist until March 1 so I stick to my budget this month – hopefully I can do it!

Do you have hosting? Where did you get yours? Know of any good deals right now for a better price than $83/year? 🙂

1 Comment
by youngprofessionalfinances on February 19, 2012  •  Permalink
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Posted by youngprofessionalfinances on February 19, 2012

https://youngprofessionalfinances.wordpress.com/2012/02/19/website-hosting-not-an-impulse-buy/

Costco American Express Card: My Rewards

Yesterday, I told you how I’m only going to pay $35 for an Executive Costco Membership. Today, I’m going to tell you how I’m actually going to be getting it for free – and have them pay me.

For a couple years, I had one credit card: my Capital One card. I loved it – it had great rewards and they increased my limit so I was happy with it. However, once I moved into my current house, my feelings changed. I was now getting gas at Costco because it was the closest gas station to my house. They always had a sign above the pump that announced I could get THREE PERCENT BACK IF I USED A COSTCO AMERICAN EXPRESS CARD.

3% sounded really good. I was only getting 1% back with my current card – and 3%! Well if I spent $200 a month on gas, instead of $2, I’d be getting $3 back! Well ok, it wasn’t that much of a difference. But that kind of money adds up! Besides, at that time I was using my debit card to pay for Costco (since they only take American Express) which of course gives me 0% back.

I was hesitant though. I had an American Express card once before and I didn’t like it because so many places didn’t accept the card. I ended up not using it for so long that they closed my account (that’s bad, don’t let that happen to you). But after weighing the pros and cons, I decided to try again. This time, I’d get the American Express card but only use it for Costco purchases and gas.

One of the things I hate most though is that they only send you your rewards once a year – in February. This is a far cry from the immediate view of my rewards I get with Capital One. But I waited and waited and yesterday, it finally came:

That’s $92 I would not have gotten back had I not signed up for the American Express card. To me, that’s worth it. Of course, you have to consider the pros and cons. Making a decision to get a credit card should not be made lightly. I got it because I only had one card at the time, I knew I could pay it off every month, I could take the credit hit and the rewards were worth it to me.

Now, I can put $35 towards the new membership and consider $57 as profit. Of course, it will go right back in to Costco but that’s a lot I’m saving on my next grocery bill.

Do you have a Costco American Express card? What do you think of it?

5 Comments
by youngprofessionalfinances on February 17, 2012  •  Permalink
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Posted by youngprofessionalfinances on February 17, 2012

https://youngprofessionalfinances.wordpress.com/2012/02/17/costco-american-express-card-my-rewards/

How I’m Paying Only $35 For An Executive Costco Membership

When G came home about a year ago and told me that he had gotten a Costco membership, I was mad. It wasn’t because it was Costco – I was used to being on someone’s membership and I wanted that to continue. But he had been convinced to buy the Executive Membership rather than the normal one. It meant that instead of paying $50, he had paid $100 (those were the prices when he bought it).

“Really?” I asked in disbelief. “Why would you pay more for a membership that gets you the same thing?”

“But the executive membership gets you 2% back!” He defended.

“But in order to make up the money, we’d have to spend at least $2500 at Costco over the year! That breaks down to $208 a month. There’s no way we’re going to spend that much,” I whined. Yes, I whine.

“Well…they made it sound like a really good deal,” he said sadly.

I shook my head and we moved on.

And then, a few days ago, a year after this conversation took place, we received this in the mail:

“What is this?” I asked when G handed me the envelope. “A fake gift certificate to Costco?”

“No! It’s our 2% back,” he said with a smile.

“Our 2% back…” I trailed off. I had completely forgotten that we got 2% back.

Now that we had gotten $75 back, that meant we had actually only paid $25 for our membership – half of what it would have originally cost us. Or you could say, if we got the executive membership again, we’d only be paying $35 for it (since they raised the price to $110), instead of the $55 the normal membership now costs.

I was wrong.

Apparently, this membership works for us – and according to the numbers, we must have spent around $3750 over the year or $312/month. That’s kind of scary to be honest but it makes sense. We both get our gas from Costco – mine alone is usually around $200 for the month. Not to mention that, of course, we buy a lot of our staples from them.

So I can admit it – I was wrong. It turns out the Executive Membership really does work for us and now I look forward to getting a “discounted” membership this year.

1 Comment
by youngprofessionalfinances on February 16, 2012  •  Permalink
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Posted by youngprofessionalfinances on February 16, 2012

https://youngprofessionalfinances.wordpress.com/2012/02/16/how-im-paying-only-35-for-an-executive-costco-membership/