We were at New York over the weekend with the kids and obviously, we ended up at Toys R Us.

Mrs Credit Card had a few things to shop. Our kids have been invited to a couple of birthday parties. Our own kids birthday was in June. We could end up spending a lot, but fortunately we managed to get a 20% discount coupon from the most unexpected place.

We got a 20% discount from the City Guide New York! And we got the City Guide New York from our hotel at The Hampton Inn Chelsea at 24th st between 6th and 7th Ave. In fact, when Mrs Credit Card presented the coupon to the cashier, they did not accept it straight away and decided to check it. They even asked where she got it from and was surprised when we told them where we got it. In fact, the cashiers even said they will be looking to get this discount coupon for themselves.

What was more interesting was that there were other coupons from other merchants as well. So when you are travelling (especially to New York), you might want to check out the City Guides (in whatever city you are going) at the Hotel Lobby that you are staying. You may just save yourself a few dollars in change. We certainly did.

By the way, this discount is valid until the end of May. But I won’t be surprised if there is another promotion after that!

We all know how coupon cutting saves you lots of money at supermarkets. Mrs Credit Card cuts up coupons every weekend from the papers and strategically makes our household purchases whenever she could take advantage of the coupons she has amassed.

But when I use coupons for an auto repair shop, the story is a bit different. Just a two minute drive from my place is Monroe’s. Monroe’s is a chain of auto repair shops. Each shop is managed by someone who is actually just an employee. There are always Monroe coupons every week in the papers.

The first time I went to Monroe’s, Mrs Credit Card gave me the coupons. But I forgot to use them and when we told the manager, he said he could not change the system and told us he would give us a discount the next time (which he did).

On the third occasion, I gave him the coupon just before he input the details in the cashier’s machine. “Oh” he said, and he went on keying in the details. The bill came up to an amount that was similar with no discount. “I have to include certain labor cost!” he said.

On the fourth occasion, I had a similar service performed. This time I gave him the coupon right from the start. When I came to pick up the car, I was told I needed to change something (can’t remember cos I’m not a car guy). It was very minor. But there goes my discount!

I have been to this place a few more times because it is close to my place. But I can’t help but think that all these coupons for auto repair shops are worthless. They will always find something wrong with your car or include some other “service cost” if you tell them you are using the coupons! The manager also said that he does not advertise the coupons, but instead it is done by the “corporate marketing department”. Go figure.

When I speak to friends of my age group (hint: we’re not in our 20’s), one consistent theme that comes up often is that we tend to be more realistic rather than idealistic in our approach to finance and life in general. Financial attitudes and priorities changes as well. Here are a few examples :

Attitude Towards Investing

1. How we invest our money – as we older, we tend to be more conservative. No longer are we “aggressive growth investors” because we have been through the Asian crisis in 1997, the Russian Debt Default in 1998, the Internet and Tech Bubble of the late 90s and the subsequent burst in 2000, 2001 and 2002. 90% invested only in domestic equities makes your temperament go yo yo like a diet on sugar!. When we are in our 20’s, we think we are smarter than “professionals” because Peter Lynch told us so. We though “low cost index funds” were the best because Suze Orman said so! That was until we realized that the “market index can be overvalued!” and that outperforming the index when it is down 40% in the early 2000s makes the term “outperformance” meaningless!. As we get older, we are more inclined to hire a wealth manager and pay a reasonable fee to managers who have done well in a market down cycle. We tend not to demand massive performance, but are more content to have consistent modest performance.

Kids College Education is Nearer Around the Corner

Another common conversation topic is our kids’ education. While we read about saving for retirement and kids college education in mainstream media, it doesn’t actually hit you until your kids goes to middle school! And you realize that your kid is actually “very smart” but does not excel in any sport! How do you fund his future college expenses? Current cashflow or sacrifice now and sock away a chunk of money every month? Tough question, but certainly a common party and dinner topic as the clock ticks away.

Start thinking whether the $30,000 kitchen renovation makes sense?

Do you remember the time when you first bought your first home. Inevitebly, things go wrong in the house and you have to spend money to fix things. After a while, it becomes more of you wanting to enhance the value of your house and the “quality of your life” by upgrading certain things – a new bathroom, a new kitchen etc. You probably took a home equity line of credit and anticipate that your renovations will “add value” to your house.

As you get older, especially when retirement is not far away, things like renovating your house takes a back seat. Think about it : If you are 50 and plan to retire at 60, splashing that $30,000 on a new kitchen is a different decision than when you are 32 and earning the big bucks.

Starting your own business

Another familiar topic among my friends is that many want to leave the corporate world and start their own business. Many approach this differently. Some still keep their corporate jobs while still pursuing other avenues. I have met a couple of people who are doing this. I recently met a lawyer who is doing network marketing at the side. Yet, I know others who have quit their corporate jobs to start their own business. Or in the case of a couple, one quits while the other still has a job.

Whatever the route may be, saving and financial planning for a mid career change has seldom been mentioned in the press. What if you know you want to start a business a few years later, do you save for the start up cost now or try to get investor funding.

I find that most people actually do not plan (at least financially for this possibility or event). I honestly think that not only is financial planning important, but planning to be an enterpreneur is also very important. The mindset, the ability to delegate, marketing skills and general business skills are certainly not skills you will necessarily develop in your present corporate job.

More Open Minded to Getting Long Term Care Insurance

Let’s face it. When we are in our 20s or 30s, we would hardly ever think of long term care insurance. We would simply brush aside any attempts by insurance agents to sell us that product.

It is only until we have parents who have to be admitted to nursing care and we have to help financially that it suddenly dawns on us that long term care insurance (or at least planning for any potential nursing care situations) is important. But for those of us who either have been or have friends in this situation, you will know that sending your parent into a nursing home may not be the ideal solution. They may be drugged too often. You may want them at home with your other parent. But all these cost money (which is sometimes not covered by insurance). You will also realize that simply getting long term care insurance is not the end all or be all. It is only when you have a parent in need of long term care or if you know someone in this situation that you realize how important planning for such events are.

Change from Reward Credit Cards to Cash Back Credit Cards

Another phenomenom is that I find my friends looking to get rid of their reward credit cards and get a cash back credit card instead. Many of my friends have cards like the American Express Gold Card that was useful early in their careers when they were travelling a lot. But I guess after a while, travelling takes a back seat and family and kids come first. Paying $150 in annual fee for the gold card while not using the air miles just does not makes sense anymore. When my friends find out that I review credit cards, they often ask my suggestions as to what card to get. I often point them to the Blue Cash. Many are surprised that they can earn 5% rebates on gas and supermarkets.

Can’t be bothered with 0% Balance Transfer Arbitrage

I honestly cannot think of anyone I know in their late 30s, 40s or 50s who “play the 0% BT game”. The one where you borrow 0% from the credit card through their teaser deals and putting them in an online account like ING or HSBC and earn a higher interest rate. Lots have been written in personal finance blogs (including me) about this topic and how to do it. I have friends who have done this in their younger days. But let’s face it, going through the hassle just to make a couple of hundred bucks is not as appealing as simply getting a cash back credit card! I think this is certainly a young person’s game. As you get older, you are too busy to try things like that.

Anything Else?

These are my observations on how priorities change as one gets older. Do you have anything to add. I would appreciate your comments.

This is the second post I am making in the “Turn Back the Clock” series. As I reflect on my younger days, getting a second hand car was probably the best financial decision I have made.

We have all heard that cars are the worst investment you can ever make. Countless Financial Gurus like Suze Orman and even Peter Lynch in one of his books mentioned how getting a second hand car makes much more financial sense compared to getting a first car.

When I first graduated and got my first job, it seems that most of my classmates quickly got their first “brand new car”. They quickly saved for the downpayment and because they had pretty decent jobs, the swanky new car was one of the first big ticket item purchase that they made.

I actually resisted that temptation because my granddad always told him that properties are one of the best investments you can make and that I should be making that my priority. So while I did not have the latest wheels and gadgets, I just got a crusty old Toyota Corolla (BTW – I still have a Toyota Corolla today), which is perhaps one of the best second hand cars you can ever get. It never gave me any problems and it just went on and on without breaking down!.

One of the tricks that I did to get the best deal was to actually get a friend of mine who was familiar with cars (because his father used to sell second hand cars and because he was kind of a mechanic). He did the negotiations for me! (was very bad at that). He managed to get the seller to let us inspect the car and then managed to negotiate a well good price for me. He got a nice big meal as a thank you!

Over the next year after I got the car, all I had to change was the brakes. Everything else worked out fine for a long time because my friend had the car inspected. I think I probably paid about $1,500 to $2,000 (in cash) for the good old Toyota. In contrast, most of my friends paid that amount for a downpayment and continued to pay about $200 a month for their lease or loan payments. I sure saved a lot of money back in those days. One thing that I did not mention earlier is that I waited until one year into my first job before getting the new car (needed to save some money). If I were to do it all over again, I would still get a second hand car as my first car. This is what I did and would do to make sure I got the best deal.

1. Get someone (preferably someone who used to sell second hand cars) to negotiate for you. Buying a second hand car is very tricky because price variation could very imply quality variations.

2. Ask the seller to allow you to get an inspection. Get to know the mechanic well before you bring the car to him. The inspection required to pass the test for a second hand car sale is not very stringent. I had friends who had to spend $800 on suspension alone not long after they had bought their second hand car.

4. If I had my way now, I would apply for the Citi� Driver’s Edge� Platinum Select� Card or the Citi� Driver’s Edge� Card for College Students, earn rebates and use them to reduce the amount I pay on my car!